Consensus Cloud Solutions Inc (CCSI) 2022 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Consensus Q4 2022 Earnings Call. My name is Paul, and I will be the operator assisting you today. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) On this call from consensus will be Scott Turicchi, CEO; John Nebergall, COO; and Jim Malone, CFO. I will now turn the call over to John Nebergall, COO at Consensus. Thank you. You may begin.

女士們先生們，美好的一天，歡迎來到 Consensus 2022 年第四季度財報電話會議。我叫保羅，今天我將擔任接線員為您提供幫助。此時，所有參與者都處於只聽模式。問答環節將在正式介紹之後進行。 （操作員說明）首席執行官 Scott Turicchi 將根據共識召開此次電話會議；首席運營官 John Nebergall；和首席財務官吉姆馬龍。我現在將把電話轉給 Consensus 的首席運營官 John Nebergall。謝謝。你可以開始了。

Good afternoon, and welcome to the Consensus investor call to discuss our Q4 and full year 2022 financial results and our 2023 initial guidance. Joining me today are Scott Turicchi, CEO; and Jim Malone, CFO. The earnings call will begin with Scott providing opening remarks. I will give an update on a major realignment of our operating structure as well as sales and technology results, and then Jim will follow up and discuss our full year and Q4 financial results.

下午好，歡迎來到共識投資者電話會議，討論我們的第四季度和 2022 年全年財務業績以及我們的 2023 年初步指導。今天加入我的是首席執行官 Scott Turicchi；和首席財務官吉姆馬龍。財報電話會議將從 Scott 發表開場白開始。我將介紹我們的運營結構以及銷售和技術成果的重大調整的最新情況，然後吉姆將跟進並討論我們全年和第四季度的財務業績。

After we finish with our prepared remarks, we will conduct a Q&A session. At that time, the operator will instruct you on procedures for asking a question. A copy of this presentation and the associated press release will be available on our website. Also, if you have any questions, you can always send an e-mail to investor@consensus.com. Before we begin our prepared remarks, allow me to direct you to the safe harbor language on Slide 2.

在我們完成準備好的發言後，我們將進行問答環節。屆時，接線員將指導您提問的步驟。本演示文稿和相關新聞稿的副本將在我們的網站上提供。此外，如果您有任何疑問，可以隨時發送電子郵件至 investor@consensus.com。在我們開始準備好的發言之前，請允許我引導您使用幻燈片 2 上的安全港語言。

As you know, this call and webcast will include forward-looking statements. Such statements may involve risks and uncertainties that would cause actual results to differ materially from the anticipated results. Some of those risks and uncertainties include, but are not limited to, the risk factors outlined on Slide 3 that we have disclosed in our SEC 10-K filing as well as a summary of those risk factors that we have included as part of the slide show for the webcast. We refer you to discussions in these documents regarding safe harbor language as well as forward-looking statements. Now let me turn the call over to Scott.

如您所知，此次電話會議和網絡廣播將包含前瞻性陳述。此類陳述可能涉及風險和不確定性，這些風險和不確定性會導致實際結果與預期結果存在重大差異。其中一些風險和不確定性包括但不限於我們在 SEC 10-K 文件中披露的幻燈片 3 中概述的風險因素，以及我們作為幻燈片一部分包含的這些風險因素的摘要顯示網絡廣播。我們建議您參考這些文件中有關安全港語言和前瞻性陳述的討論。現在讓我把電話轉給斯科特。

Thank you, John. I would like to touch on several areas before handing the call over to John and Jim for more details on our operations Q4 financial results, fiscal year '22 results as well as the publication of our 2023 guidance. As noted in our press release, we intend to file an amended Q3 2022 10-Q to primarily address 2 unintentional errors we have identified in the preparation of our Form 10-K. The first area is related to an accounting practice we inherited from the spin. Notably, our SOHO revenue stream was inadvertently grossed up by $5.3 million over the first 3 quarters of 2022 with a corresponding offset to bad debt expense. This correction has no impact on the company's operating income, net income, EBITDA or cash for the relevant periods.

謝謝你，約翰。在將電話轉給 John 和 Jim 之前，我想談談幾個方面，以了解有關我們第四季度財務業績、'22 財年業績以及我們 2023 年指南發布的更多詳細信息。正如我們的新聞稿中所述，我們打算提交經修訂的 2022 年第三季度 10-Q，以主要解決我們在準備 10-K 表格時發現的 2 個意外錯誤。第一個領域與我們從旋轉中繼承的會計實踐有關。值得注意的是，我們的 SOHO 收入流在 2022 年前三個季度無意中增加了 530 萬美元，並相應抵消了壞賬費用。本次更正對公司相關期間的營業收入、淨利潤、EBITDA 或現金沒有影響。

The second area relates to the timing of revenue recognition. We initially recognized $2.2 million of revenue in Q3 2022 for the sale of certain perpetual software licenses to one of our customers, which upon further review, we have decided to reclassify as deferred revenue. This correction impacts timing only, not the amount of revenue that we recognized over the contract term. Neither air has any impact on the company's cash or cash equivalents.

第二個方面與收入確認的時間有關。我們最初在 2022 年第三季度確認了 220 萬美元的收入，用於向我們的一位客戶出售某些永久軟件許可證，經過進一步審查，我們決定將其重新分類為遞延收入。此更正僅影響時間，而不影響我們在合同期內確認的收入金額。這兩種空氣對公司的現金或現金等價物均無任何影響。

Jim will provide further details in his financial presentation later in the call. Our operational miss in revenue for the year to achieve the low end of our revenue range was approximately $3 million and was largely due to the timing of both customer decisions and implementation. As we noted in our Q3 call and again earlier this year at an investor conference, we continued to see a more deliberate approach to decision-making and implementation by our largest prospects and customers. We believe that this trend will continue in 2023 and have accounted for it in our financial guidance.

吉姆將在電話會議稍後的財務報告中提供更多細節。我們當年為實現收入範圍的低端而造成的運營收入損失約為 300 萬美元，這主要是由於客戶決策和實施的時間安排所致。正如我們在第三季度電話會議和今年早些時候的一次投資者會議上指出的那樣，我們繼續看到我們最大的潛在客戶和客戶在決策和實施方面採取了更加慎重的方法。我們相信這種趨勢將在 2023 年繼續，並已在我們的財務指南中加以說明。

As John will later detail, we continue to have a number of prospects in our pipeline and remain optimistic that over time, they will translate into revenue. I would also observe the changes in our incremental revenue are more dependent on revenue coming from medium to large enterprise customers, the timing of which is harder to predict. As we believe that this will continue to be the case and is independent of economic conditions, we are widening the revenue range for our guidance that Jim will detail for you later.

正如約翰稍後將詳述的那樣，我們繼續在我們的管道中擁有許多前景，並且隨著時間的推移，他們將轉化為收入，我們仍然保持樂觀。我還會觀察到我們增量收入的變化更多地依賴於來自大中型企業客戶的收入，其時間更難預測。由於我們相信這種情況將繼續存在並且不受經濟條件的影響，因此我們正在擴大我們指導的收入範圍，Jim 稍後將為您詳細介紹。

In conjunction with our performance in Q4, we evaluated the sales and marketing structure that we inherited at the time of the spin. We concluded the approach of the 3 revenue streams, SOHO, mid-market and enterprise, and organizations to manage them does not allow an optimal go-to-market strategy. The siloed approach inhibits efficient marketing spend and creates gaps where one channel of revenue ends and the other begins. I am enthusiastic about the realignment of our people and resources and believe it will produce a greater pipeline of opportunities, giving us more paths to meet or preferably beat our guidance. John will give you the details in his presentation.

結合我們在第四季度的表現，我們評估了分拆時繼承的銷售和營銷結構。我們得出結論，SOHO、中端市場和企業這 3 種收入流的方法以及管理它們的組織不允許採用最佳的上市策略。孤立的方法會抑制有效的營銷支出，並在一個收入渠道結束而另一個收入渠道開始的地方造成差距。我熱衷於重新調整我們的人員和資源，並相信這將產生更多的機會，為我們提供更多途徑來滿足或最好超越我們的指導。約翰將在他的演講中為您提供詳細信息。

We continue to operate at healthy EBITDA margins of 54.3%, consistent with our guidance of between 50% and 55%. These results were driven by continued strong performance in the corporate business, which grew 10.1% versus Q4 2021 and 6.5% of which was organic. Our SoHo channel had good results, notwithstanding continuing FX headwinds, which primarily affect this channel of revenue. Also, as we discussed last quarter, there were additional customers affected by the price change, which had a modest impact on our cancel rate.

我們繼續以 54.3% 的健康 EBITDA 利潤率運營，與我們 50% 至 55% 的指引一致。這些結果是由公司業務持續強勁的表現推動的，與 2021 年第四季度相比增長了 10.1%，其中 6.5% 是有機增長。我們的 SoHo 渠道取得了不錯的成績，儘管外匯逆風持續存在，這主要影響了這一收入渠道。此外，正如我們上個季度所討論的那樣，還有其他客戶受到價格變化的影響，這對我們的取消率影響不大。

While slower than previously planned, the VA is on the verge of rolling out our EC fax to its first medical facility. We expect revenue to start sometime in late Q2 or Q3. The interest in EC Fax from other government agencies has more than doubled since the end of Q3. There are now more than 15 agencies interested in the service. It is still early, and we do not expect any of these new agency opportunities to produce revenue in 2023 but are encouraged by the widespread interest in the solution.

雖然比以前計劃的要慢，但 VA 即將向其第一家醫療機構推出我們的 EC 傳真。我們預計收入將在第二季度末或第三季度的某個時候開始。自第三季度末以來，其他政府機構對 EC Fax 的興趣增加了一倍多。現在有超過 15 個機構對該服務感興趣。現在還為時過早，我們預計這些新的代理機會中的任何一個都不會在 2023 年產生收入，但對該解決方案的廣泛興趣讓我們感到鼓舞。

Before handing the call over to John, I'd like to comment on the economy and how it is affecting our business outlook. As noted previously, the uncertain economic conditions and fear of recession has slowed down decision-making of our largest potential customers. We believe that there will be a recession at some point this year and expect the slower decision-making trend to continue as well as to modestly impact the cancel rate of our SoHo or e-commerce business. In addition, the tight labor market and sticky inflation has an impact on the cost of our labor force, which is our largest single expenditure. We anticipate there will be an increase of approximately $12 million in cash compensation expense this year over 2022, which is a combination of having more employees in 2023 than 2022 as well as higher wages across the board. We anticipate that this will have a 2.3 percentage point impact on our EBITDA margin in 2023. As our employees are our most valuable asset, and we need them to ramp up from the spin to meet the obligations of a stand-alone public company as well as dedicate more resources to our development, sales and marketing efforts, we do not see an opportunity for cost savings in this area. However, we are looking carefully at our nonemployee areas to make our operations more efficient. Moreover, we believe these investments in both technology and human capital will strengthen our leadership position in the market.

在將電話轉給約翰之前，我想談談經濟狀況以及它如何影響我們的業務前景。如前所述，不確定的經濟狀況和對經濟衰退的恐懼減緩了我們最大的潛在客戶的決策制定。我們認為今年某個時候會出現經濟衰退，預計決策速度放緩的趨勢將繼續下去，並對我們 SoHo 或電子商務業務的取消率產生適度影響。此外，緊俏的勞動力市場和粘性通脹對我們的勞動力成本產生影響，這是我們最大的單筆支出。我們預計今年的現金補償費用將比 2022 年增加約 1200 萬美元，這是 2023 年員工人數多於 2022 年以及全面工資上漲的綜合結果。我們預計這將對我們 2023 年的 EBITDA 利潤率產生 2.3 個百分點的影響。由於我們的員工是我們最寶貴的資產，我們需要他們從分拆中脫穎而出，以履行獨立上市公司的義務由於將更多資源用於我們的開發、銷售和營銷工作，我們看不到在該領域節省成本的機會。但是，我們正在仔細研究我們的非員工領域，以提高我們的運營效率。此外，我們相信這些在技術和人力資本方面的投資將加強我們在市場上的領導地位。

Finally, we remain liquid with more than $94 million of cash on our balance sheet and the undrawn line of credit that we put in place in March of 2022. I'll now turn the call over to John.

最後，我們的資產負債表上有超過 9400 萬美元的現金，以及我們在 2022 年 3 月設立的未提取信貸額度，仍然保持流動性。我現在把電話轉給約翰。

Thank you, Scott. Let's move to Slide 5. In early Q4 of last year, Johnny Hecker joined consensus. Johnny came to us from Google, where he led sales efforts in Europe and previous to that, has a long history in the Cloud Fax industry. We gave him the objective of evaluating our current go-to-market structure and to develop recommendations to improve our offensive capabilities, finding ways to break down any silos that stifle performance, ensuring a strong focus on health care, bringing more discipline in data analytics to drive the business and to find ways to make our overall execution, more effective and efficient. Based on those recommendations, the executive team has implemented a sweeping realignment of our go-to-market operation. I have asked Johnny to lead this new go-to-market team and have implemented the following changes.

謝謝你，斯科特。讓我們轉到幻燈片 5。在去年第四季度初，Johnny Hecker 加入了共識。約翰尼從谷歌來到我們這裡，他領導了歐洲的銷售工作，在此之前，他在雲傳真行業有著悠久的歷史。我們給他的目標是評估我們當前的上市結構，並製定建議以提高我們的進攻能力，找到打破任何阻礙績效的孤島的方法，確保高度關注醫療保健，在數據分析中帶來更多紀律推動業務發展，並找到使我們的整體執行更加有效和高效的方法。根據這些建議，執行團隊對我們的上市運營進行了全面調整。我已請 Johnny 領導這個新的上市團隊，並實施了以下變更。

A strategic sales team has been established to focus on our largest current customers and biggest prospects, including government. This will be a hand-selected team working with only large multimillion dollar opportunities. A single direct sales organization that eliminates the former enterprise and mid-market sales approach for a more integrated sales operation. As part of this change, the old SoHo sales segment has been eliminated and responsibility for e-commerce sales is now a sales function rather than a marketing function.

一個戰略銷售團隊已經建立，專注於我們最大的現有客戶和最大的潛在客戶，包括政府。這將是一個手工挑選的團隊，只處理數百萬美元的大機會。一個單一的直銷組織，消除了以前的企業和中端市場銷售方法，以實現更集成的銷售運營。作為這一變化的一部分，舊的 SoHo 銷售部門已被取消，電子商務銷售的職責現在是銷售職能而不是營銷職能。

We have created a new discipline called the sales enablement and optimization function. This team will be dedicated to using data analytics and statistical analysis to continuously improve our sales process to manage our RFP and RFI responses and controlled pricing across the organization. This will unlock the power of our internal data collection program and optimize sales execution.

我們創建了一個新學科，稱為銷售支持和優化功能。該團隊將致力於使用數據分析和統計分析來不斷改進我們的銷售流程，以管理我們的 RFP 和 RFI 響應以及整個組織的受控定價。這將釋放我們內部數據收集程序的力量並優化銷售執行。

Marketing will be consolidated into a single organization. We have recognized that our marketing program on the web also has an enormous impact on driving upmarket customer behavior, and so we have integrated the marketing function. The marketing team will maximize our demand generation efforts driving leads to sales and our e-commerce portals managing spend more efficiently and improving overall impact of our efforts. Our channel program and services team will also join the new revenue organization and report to Johnny Hecker as well. A new strategy team will be formed under Bevey Miner, a recognized expert in health care IT. This team will concentrate efforts on emerging opportunities in the health care industry, becoming involved in giving consensus of voice and legislations in CMS, HHS rule making and standards boards. The strategy team will also provide competitive analysis, manage the events that we attend and develop a series of seminars and webinars aimed at the North American health care market.

營銷將被整合到一個單一的組織中。我們已經認識到我們的網絡營銷計劃對推動高端客戶行為也有巨大影響，因此我們整合了營銷功能。營銷團隊將最大限度地發揮我們的需求生成工作，推動銷售線索，我們的電子商務門戶網站將更有效地管理支出並提高我們工作的整體影響。我們的渠道計劃和服務團隊也將加入新的收入組織，並向 Johnny Hecker 匯報工作。一個新的戰略團隊將在 Bevey Miner 的領導下成立，Bevey Miner 是公認的醫療保健 IT 專家。該團隊將專注於醫療保健行業的新機會，參與在 CMS、HHS 規則制定和標準委員會中就聲音和立法達成共識。戰略團隊還將提供競爭分析，管理我們參加的活動，並開發一系列針對北美醫療保健市場的研討會和網絡研討會。

The international operations are unchanged in this realignment. It is important to emphasize that this action is focused on improving our efficiency and our effectiveness in the North American market with a strong emphasis on health care interoperability. This is not, I repeat, not a cost-cutting exercise, a reduction in force or downsizing. We believe that taking these actions will help us become even more competitive, raise our profile in the industry and give us better command over our overall go-to-market execution.

國際業務在這次調整中沒有變化。需要強調的是，這一行動的重點是提高我們在北美市場的效率和有效性，重點是醫療保健互操作性。我再說一遍，這不是削減成本、減少兵力或縮小規模。我們相信，採取這些行動將幫助我們變得更具競爭力，提升我們在行業中的形象，並讓我們更好地掌控我們的整體上市執行。

Now let's go on to Slide 6. I will comment on the year, the quarter and the number of in-progress operating items. First, for the year 2022, we saw record corporate sales performance with $23.2 million in bookings, a 59% improvement over 2021 and a 35% improvement, if you exclude sales associated with the assets acquired in our purchase of Summit Healthcare. Sales included $9.7 million in our advanced product set more than double last year, and in total, these non-fax products represented slightly more than 36% of our overall bookings.

現在讓我們繼續看幻燈片 6。我將評論年度、季度和正在進行的運營項目的數量。首先，對於 2022 年，我們看到了創紀錄的企業銷售業績，預訂額為 2320 萬美元，比 2021 年提高了 59%，如果不包括與我們收購 Summit Healthcare 時獲得的資產相關的銷售額，則提高了 35%。我們高級產品的銷售額為 970 萬美元，比去年翻了一番還多，總計這些非傳真產品占我們總預訂量的 36% 多一點。

As we have stated on a number of occasions over the last several months, we were beginning to see a more deliberate pace of decision-making by our prospects, largely as a result of economic uncertainty that dominated the financial news. While our pipeline remains promising, deferrals by several key prospects as well as the natural historical seasonality of our business impacted the fourth quarter results. Overall bookings for the quarter were $4.6 million, a 44% increase over Q4 2021. And when you exclude the perpetual license products sale of $2.5 million in Q3, it was a 22% decline. That sequential decline is somewhat better than 2021 seasonal decline of 32% between Q3 and Q4.

正如我們在過去幾個月中多次表示的那樣，我們開始看到我們的前景更加審慎的決策步伐，這主要是由於經濟不確定性主導了金融新聞。雖然我們的管道仍然充滿希望，但幾個主要前景的延期以及我們業務的自然歷史季節性影響了第四季度的業績。本季度的總預訂量為 460 萬美元，比 2021 年第四季度增長 44%。如果排除第三季度 250 萬美元的永久許可產品銷售額，則下降了 22%。這一連續下降略好於 2021 年第三季度和第四季度之間 32% 的季節性下降。

In the quarter, we also saw sales of our advanced products at 46% of total bookings. The broad price increase we executed in the SOHO base is nearing completion. All in-year increases for 2022 have been implemented, and all that remains are the outstanding annual plans who will receive the increase when the renewal comes due. For the quarter, overall SOHO churn was 3.82%, a 22 basis point increase from Q3, which was better than the 28-point-basis point increase we experienced last year. The churn rate remains favorable to our post-price increase modeling, which we continue to monitor closely. On the ECFax front, we are well into the planning stage of the first system deployment and anticipate that we will be live with the first user in either late Q1 or Q2. We have spoken on previous calls, there has been an interest from other government agencies for use of the ECFax system, and we've actually scheduled the first demos of the system in the coming weeks. Aside from those scheduled demos, we also have a number of formal RFI and RFPs that we have received.

在本季度，我們還看到高級產品的銷售額佔總預訂量的 46%。我們在 SOHO 基地執行的全面提價已接近尾聲。 2022 年的所有年內增長都已實施，剩下的就是未完成的年度計劃，他們將在續約到期時獲得增長。本季度，SOHO 總體流失率為 3.82%，較第三季度增加 22 個基點，好於我們去年經歷的 28 個基點的增幅。流失率仍然有利於我們的價格上漲後模型，我們將繼續密切關注這一點。在 ECFax 方面，我們已經進入了第一個系統部署的規劃階段，預計我們將在第一季度末或第二季度與第一位用戶一起使用。我們在之前的電話中已經談過，其他政府機構對使用 ECFax 系統很感興趣，我們實際上已經安排了在未來幾週內對該系統進行首次演示。除了那些預定的演示之外，我們還收到了一些正式的 RFI 和 RFP。

Over the past 2 quarters, we've been involved in a proof-of-concept trial with our Clarity product. I'm pleased to say that we're now in the final stages of negotiating the production SOW for Clarity, which is expected to put us into production in Q2. The product team continues its initiatives in Q4, rolling out the compliance 365 initiative. The purpose of this program is to weave compliance and security into our daily execution, not only on the development team, but throughout the entire organization.

在過去的兩個季度中，我們參與了 Clarity 產品的概念驗證試驗。我很高興地說，我們現在正處於 Clarity 生產 SOW 談判的最後階段，預計將在第二季度投入生產。產品團隊在第四季度繼續其舉措，推出合規性 365 計劃。該計劃的目的是將合規性和安全性納入我們的日常執行中，不僅在開發團隊中，而且在整個組織中。

While we continue to support the SOC2, FedRAMP and HIGHTRUST audits as they come due, the team is also working to maintain a very aggressive schedule of employee training, self-review and earned internal testing that ensures our security environment is second to none in the industry. We move our customers' most critical information and remain committed to strengthen our already formidable security programs.

在我們繼續支持到期的 SOC2、FedRAMP 和 HIGHTRUST 審計的同時，該團隊還在努力維持非常積極的員工培訓、自我審查和獲得內部測試的時間表，以確保我們的安全環境在全球首屈一指行業。我們轉移客戶最重要的信息，並繼續致力於加強我們已經非常強大的安全計劃。

Our technology team is also expanding the ability for us to support our customer base with the formation of a level 3 support team. Moving further past what is considered ordinary technical support, the Level 3 group will have development skills to work with clients on a deeper technical level, solving their most important and challenging issues. Alike expansion in our product team is the addition of product marketing to our capability set. This newly formed group will be dedicated to product commercialization, education and launch activities. Working closely with the newly announced strategy team, product marketing will serve as the key link between the drawing board and revenue generation.

我們的技術團隊還通過組建 3 級支持團隊來擴大我們支持客戶群的能力。超越所謂的普通技術支持，第 3 級小組將具備開發技能，可以在更深的技術層面上與客戶合作，解決他們最重要和最具挑戰性的問題。我們產品團隊的類似擴展是將產品營銷添加到我們的能力集中。這個新成立的團隊將致力於產品商業化、教育和發布活動。與新宣布的戰略團隊密切合作，產品營銷將成為繪圖板和創收之間的關鍵環節。

Finally, our engineers continue to be hard at work, pushing forward a project that builds on what's already the most flexible platform in the industry and applying emerging practices and technologies to ensure we offer our customers an exceptional experience while supporting emerging needs and revenue opportunities. The team is also building for the future with Harmony, and we are still expecting an MVP version of the product by the close of Q4. To sum up, the operations finished the year with record bookings, a clear establishment of our advanced products in the marketplace and execution of a wide range in price increase. While we have seen prospect decisions slow in Q4, we are confident that this is a timing issue and anticipate that the pipeline will produce many deals this year that we had expected in 2022. Now I'll turn it over to our Chief Financial Officer, Jim Malone, for a closer look at the financial metrics. Jim?

最後，我們的工程師繼續努力工作，推進一個項目，該項目建立在已經是業內最靈活的平台之上，並應用新興實踐和技術，以確保我們為客戶提供卓越的體驗，同時支持新興需求和收入機會。該團隊也在為 Harmony 的未來而建設，我們仍然期待在第四季度末推出該產品的 MVP 版本。總而言之，這些業務以創紀錄的預訂量結束了這一年，在市場上明確確立了我們先進產品的地位，並實施了廣泛的價格上漲。雖然我們在第四季度看到前景決策緩慢，但我們相信這是一個時間問題，並預計該管道今年將產生許多我們預期在 2022 年進行的交易。現在我將把它交給我們的首席財務官， Jim Malone，詳細了解財務指標。吉姆？

Thank you, John, and good afternoon, everyone. I would like to review our fourth quarter financial results, discuss our performance for the full year 2022 as well as provide our initial guidance for 2023. Before I discuss our Q4 results, and as Scott alluded to earlier in the call, I want to call out that overall revenue in 2022 was impacted by 2 extraordinary items totaling approximately $10 million. A legacy spin accounting practice that was inadvertently increased revenue with an offset reducing bad debt. A second separate accounting error in Q3, where a $2.5 million revenue transaction was incorrectly recorded as revenue instead of deferred revenue.

謝謝約翰，大家下午好。我想回顧一下我們第四季度的財務業績，討論我們 2022 年全年的業績，並提供我們對 2023 年的初步指導。在我討論我們的第四季度業績之前，正如斯科特早些時候在電話會議中提到的那樣，我想打電話給2022 年的總收入受到 2 個總計約 1000 萬美元的特殊項目的影響。一種遺留的旋轉會計實踐無意中增加了收入，抵消了減少壞賬的影響。第三季度出現第二個單獨的會計錯誤，其中 250 萬美元的收入交易被錯誤地記錄為收入而不是遞延收入。

Jumping to this first item, the SOHO legacy adjustment. As a consequence of the spin, consensus inherited a legacy Soho practice affecting revenue and bad debt. This practice inadvertently grossed up revenue with corresponding offset to bad debt expense. Our 2022 financials reflect a correcting adjustment, reducing revenue for the 9 months ending September 30, 2022, by $5.3 million and the full year by $7.3 million, with an offsetting reduction in our bad debt expense of the same amount with no impact on net income, EBITDA or cash. The adjustment is not a cumulative but represents a discrete reclassification between revenue and bad debt. This issue will not reoccur.

跳到第一項，SOHO 遺產調整。作為旋轉的結果，共識繼承了影響收入和壞賬的傳統 Soho 做法。這種做法無意中將收入與壞賬費用的相應抵消相加。我們的 2022 年財務數據反映了一項修正調整，將截至 2022 年 9 月 30 日的 9 個月的收入減少了 530 萬美元，全年減少了 730 萬美元，同時我們的壞賬費用減少了相同數量，對淨收入沒有影響、EBITDA 或現金。調整不是累積的，而是代表收入和壞賬之間的離散重新分類。此問題不會再次發生。

The second item in the third quarter of 2022, the company recorded $2.5 million of revenue related to a sale of perpetual software products. Upon further consideration, the company reclassed the revenue to deferred revenue. Consensus invoiced the customer was paid in full in Q3. Revenue and EBITDA was reduced by $2.5 million and net income was negatively impacted by approximately $2 million.

第二項是 2022 年第三季度，該公司記錄了與永久軟件產品銷售相關的 250 萬美元收入。經進一步考慮，公司將收入重分類為遞延收入。為客戶開具的共識發票已在第三季度全額支付。收入和 EBITDA 減少了 250 萬美元，淨收入受到了大約 200 萬美元的負面影響。

Now turning to the fourth quarter. Consolidated revenue was $90.2 million, an increase of $1.2 million compared to Q4 of 2021 or 1.4% growth. On a constant dollar basis, revenue grew 2.8% as foreign exchange fluctuations had an unfavorable impact of $1.2 million. Q4 reported adjusted EBITDA was $49 million, down $2.6 million or 5.1%, delivering a 54.3% EBITDA margin in line with expectations. Non-GAAP EPS of $1.13 reflects a decrease of $0.21 versus $1.34 in Q4 of '21. The decrease reflects higher revenue, fully offset by the EBITDA shortfall and a negative impact of foreign exchange from a strong dollar.

現在轉向第四季度。合併收入為 9020 萬美元，比 2021 年第四季度增加 120 萬美元，增幅為 1.4%。按不變美元計算，由於外匯波動產生了 120 萬美元的不利影響，收入增長了 2.8%。第四季度報告的調整後 EBITDA 為 4900 萬美元，下降 260 萬美元或 5.1%，EBITDA 利潤率為 54.3%，符合預期。非 GAAP 每股收益為 1.13 美元，與 2021 年第四季度的 1.34 美元相比下降了 0.21 美元。這一減少反映了收入增加，完全被 EBITDA 短缺和強勢美元帶來的外匯負面影響所抵消。

Jumping to corporate fourth quarter, Revenue was $47.8 million, an increase of $4.4 million over the prior year period. Corporate revenue increased $4.7 million on a constant dollar basis or 11%. As John discussed in his prepared remarks, we continue to add meaningful new logos in the fourth quarter, a testament to the value that we are delivering as we help solve the health care interoperability and connectivity challenges that our customers face. SOHO in the fourth quarter, revenue was $42.4 million, a decrease of $2.9 million over the prior quarter. On a constant dollar basis, SOHO revenue decreased by $2 million or 4.6%. As I mentioned previously, of the $7.3 million revenue reversal impacting 2022, $2 million was moved out of the fourth quarter. The Soho market is price sensitive and churn was better than our expectations, even considering the implementation of a $1 to $2 price increase. It is important to note that as our customers churn, we are left with a more stable and higher quality sticky base of revenue.

跳轉到企業第四季度，收入為 4780 萬美元，比去年同期增加 440 萬美元。按不變美元計算，公司收入增加了 470 萬美元，增幅為 11%。正如 John 在他準備好的發言中所討論的那樣，我們在第四季度繼續添加有意義的新徽標，這證明了我們在幫助解決客戶面臨的醫療保健互操作性和連接性挑戰時所提供的價值。 SOHO第四季度營收為4240萬美元，比上一季度減少290萬美元。按不變美元計算，SOHO 收入減少 200 萬美元或 4.6%。正如我之前提到的，在影響 2022 年的 730 萬美元收入逆轉中，有 200 萬美元從第四季度移出。 Soho 市場對價格很敏感，客戶流失率好於我們的預期，即使考慮實施 1 至 2 美元的漲價。值得注意的是，隨著我們的客戶流失，我們留下了更穩定、質量更高的粘性收入基礎。

Now turning to full year results. Consolidated revenue of $362.4 million was up $9.7 million over full year 2021, a 2.8% increase and increased $14.1 million on a constant dollar basis or 4%. Note that full year has grown at the approximate $10 million of revenue adjustments discussed earlier in this call. Reported adjusted EBITDA for the full year 2022 was $196.7 million, a decline of $6.3 million or negative 3.1%, delivering a 54.3% margin, in line with our expectations and achieving the upper band of our historical rate of 50% to 55% guidance on EBITDA margin. Adjusted EBITDA was negatively impacted by the deferred reclass of the $2.5 million. Finally, non-GAAP EPS for the year 2022 was $5.33, a decrease of $0.13 or 2.4%. The impact of the deferred revenue adjustment of $2.5 million was $0.10.

現在轉向全年業績。合併收入為 3.624 億美元，比 2021 年全年增長 970 萬美元，增長 2.8%，按固定美元計算增長 1410 萬美元或 4%。請注意，本次電話會議早些時候討論的全年收入調整增長了約 1000 萬美元。報告的 2022 年全年調整後 EBITDA 為 1.967 億美元，下降 630 萬美元或負 3.1%，實現 54.3% 的利潤率，符合我們的預期，並達到我們 50% 至 55% 的歷史指導率的上限EBITDA 利潤率。調整後的 EBITDA 受到 250 萬美元的延遲重分類的負面影響。最後，2022 年的非美國通用會計準則每股收益為 5.33 美元，下降 0.13 美元或 2.4%。遞延收入調整 250 萬美元的影響為 0.10 美元。

We ended Q4 just over $94 million in cash. Our liquidity remains strong to support our operations with the added benefit of a $50 million line in credit that remains undrawn.

我們在第四季度末的現金略高於 9400 萬美元。我們的流動性仍然強勁，以支持我們的運營，另外還有 5000 萬美元的信貸額度尚未動用。

I would like now to provide a preliminary view of guidance for 2023. We expect 2023 revenue to be in the range of $370 million to $390 million. We expect EBITDA in the range of $192 million to $206 million, translating to a margin of approximately 52.3% at the midpoint. We expect NonGAAP to be in a range of $4.93 to $5.20. Net income would be negatively impacted by increased depreciation and amortization of $6 million to $7 million relating to software products placed in service. Thank you for your continued interest investment. I would like to now turn the call back to the operator... Thank you.

我現在想提供對 2023 年指導的初步看法。我們預計 2023 年的收入將在 3.7 億美元至 3.9 億美元之間。我們預計 EBITDA 在 1.92 億美元至 2.06 億美元之間，相當於中點利潤率約為 52.3%。我們預計 NonGAAP 將在 4.93 美元至 5.20 美元之間。與投入使用的軟件產品相關的折舊和攤銷增加 600 萬至 700 萬美元，將對淨收入產生負面影響。感謝您持續的興趣投資。我現在想把電話轉回接線員...謝謝。

Thank you. We will now be conducting a question-and-answer session. In the interest of time, we ask that you please limit yourself to one question. If you would like to ask a question, so your telephone keypad. (Operator Instructions) The first question is coming from Fatima Boolani from Citigroup.

謝謝。我們現在將進行問答環節。為了節省時間，我們要求您將自己限制在一個問題上。如果您想問問題，請按您的電話鍵盤。 （操作員說明）第一個問題來自花旗集團的 Fatima Boolani。

This is Mark on for Fatima. Digging a little bit into 2023 guidance, can you maybe parse out the assumptions on macro conditions and maybe how much noise or headwinds from the go-to-market realignment efforts you guys are expecting? And then just maybe as a quick follow-on there. Is there anything that we should keep in mind in terms of just first half, second half balance for the year, just given all the headwinds and changes that you guys are going through? And how we should think about the quarters for 2023?

這是法蒂瑪的馬克。稍微深入研究一下 2023 年的指導方針，您能否解析出對宏觀條件的假設，以及你們期望的上市調整工作可能帶來多少噪音或阻力？然後可能只是作為一個快速的後續行動。考慮到你們正在經歷的所有不利因素和變化，就今年上半年、下半年的平衡而言，我們應該牢記什麼？我們應該如何考慮 2023 年的季度？

Sure. This is Scott, Mark. Good to have you on the call. So, look, -- as you know, everybody's got their own view of the economy and whether we'll go into a recession. And if so, when, I'll give you our assumptions, and we're likely to be wrong on this as I suspect many companies are, but it does influence how we think of our guidance. So, we don't see the economy being in a recession right now. Now independent of that, the uncertainty of the economy, we've talked about this now for 2 running quarters, and John and I and everybody, I think, hit this pretty hard, has delayed our larger customer decision-making, which can impact and we did see it certainly impact revenue to some extent in Q3 and definitely in Q4. So, we believe that carries over, that affects all 4 quarters. Where there tends to be the most sensitivity in the streams of our customers is in the e-commerce space or the formerly SoHo-base. And so, what we did there is -- it will look from our estimation as though the cancel rate is somewhat flat over the course of the year, but we kept it elevated near its current 3.8%, 3.82%. Now the reason in the near term in Q1 and Q2 is because, as John mentioned, we still have a tail effect for the next 2 quarters of finishing off the last of the annual customers who will not reach the 1-year anniversary until June 30. It is in the second half of the year; we would normally expect a return to the norm of cancel rates where we keep them elevated at -- in the 3.8% range. So that is our best estimate to acknowledge how recession may influence the cancel rate of the SOHO base in the back half of the year. We do not anticipate we are not budgeting but this recession would be anything like the '08, '09 recession. -- that would be -- we'd probably have to add some incremental cancels to it. We've also seen in the back half of the year and a somewhat lesser new paid ads as in a recession, sometimes you pull back your marketing or your market becomes less effective for the customers are less fragile. So, most of the economy influences how we think of the SOHO business and its performance or the former SOHO business, e-commerce business, if you will. And to a lesser extent, really timing on the decision-making as we move upstream to what we call our large accounts and to some extent, the strategic accounts and the new nomenclature. In terms of the -- how to sort of spread the revenues, we see it sort of going like this over the course of the year.

當然。這是斯科特，馬克。很高興你接電話。所以，你看，正如你所知，每個人對經濟以及我們是否會陷入衰退都有自己的看法。如果是這樣，我會在什麼時候給你我們的假設，我懷疑很多公司在這方面可能是錯誤的，但這確實影響了我們對指導的看法。因此，我們認為經濟目前不會陷入衰退。現在獨立於經濟的不確定性，我們已經連續兩個季度討論這個問題，約翰和我以及我認為的每個人都非常努力，推遲了我們更大的客戶決策，這可能會影響我們確實看到它肯定會在某種程度上影響第三季度的收入，而且肯定會影響第四季度的收入。因此，我們認為這會影響所有 4 個季度。在我們的客戶流中，往往最敏感的地方是電子商務領域或以前的 SoHo-base。因此，我們在那裡所做的是——從我們的估計來看，全年的取消率似乎持平，但我們將其保持在目前的 3.8%、3.82% 附近。現在第一季度和第二季度的短期原因是因為，正如約翰提到的，我們在接下來的兩個季度仍有尾部效應，即完成最後一批年度客戶，這些客戶在 6 月 30 日之前不會達到 1 週年紀念日. 現在是下半年；我們通常會期望取消率恢復到正常水平，我們將取消率保持在 3.8% 的範圍內。因此，這是我們承認經濟衰退如何影響下半年 SOHO 基地取消率的最佳估計。我們預計我們不會編制預算，但這次經濟衰退會像 08 年、09 年的經濟衰退一樣。 ——那就是——我們可能不得不向它添加一些增量取消。我們還看到，在今年下半年，隨著經濟衰退，新的付費廣告有所減少，有時你會撤回營銷，或者你的市場變得不那麼有效，因為客戶不那麼脆弱。所以，經濟的大部分影響我們如何看待 SOHO 業務及其業績，或者如果你願意的話，也可以影響前 SOHO 業務、電子商務業務。在較小程度上，當我們向上游移動到我們所謂的大客戶，在某種程度上，戰略客戶和新術語時，真正的決策時機。就如何分配收入而言，我們看到它在一年中有點像這樣。

About 24 -- so it's not [ratable]. 25% each quarter. It's about 24% in Q1, by 26% in Q4, just shy of 25% in Q2 and just a little north of 25% in Q3. So, there is some ramping going on throughout the course of the year as customers we want in Q4, we get a full year benefit of and as they ramp up and as we add new business throughout the year. I would also note when you think of the margin profile, although Jim talked about in the aggregate, the 52.3% EBITDA margin at the midpoint of the range, a lot of the costs over the course of the year are not totally fixed, but they're more fixed than not. So, you should expect a somewhat lower EBITDA margin in Q1, when we have lesser revenue and a somewhat higher EBITDA margin in Q4. Now it's not going to probably be a radical variation across the 4 quarters. But once again, the margin should not be expected to be constant over the 4 quarters.

大約 24 歲——所以它不是 [ratable]。每個季度 25%。第一季度約為 24%，第四季度為 26%，第二季度略低於 25%，第三季度略高於 25%。因此，隨著我們在第四季度想要的客戶，全年都會有一些增長，隨著他們的增長以及我們全年增加新業務，我們將獲得全年的收益。我還要注意的是，當你想到利潤率時，儘管 Jim 總體上談到了 52.3% 的 EBITDA 利潤率在範圍的中點，一年中的很多成本並不是完全固定的，但它們比不固定更固定。因此，當我們在第四季度的收入較少且 EBITDA 利潤率較高時，您應該預計第一季度的 EBITDA 利潤率會有所降低。現在這可能不會是四個季度的根本變化。但再一次，不應期望利潤率在 4 個季度內保持不變。

And the next question is coming from Ian Zaffino from Oppenheimer.

下一個問題來自奧本海默的伊恩扎菲諾。

This is Isaac Sellhausen on for Ian. My question is around the -- you talked about the $3 million, I guess, missing just revenue just due to customer decisions and implementation decisions. I guess as you look to the first quarter and throughout this year, are you expecting to see that come back and just sort of how that paces out in terms of implementations and customers deciding when they want to adopt the solution.

這是伊恩的艾薩克·塞爾豪森。我的問題是——你談到了 300 萬美元，我猜，僅僅由於客戶決策和實施決策而錯過了收入。我想當你展望第一季度和今年全年時，你是否期望看到它回來，以及它在實施和客戶決定何時採用該解決方案方面的進展情況。

Yes. This is John. Thanks for the question. I think what we're going to see is that this deliberate decision-making is going to be something that occurs as the continued coverage of what may or may not happen with the economy is sort of the topic of the day, and that went into our thinking. As we looked at the coming year and we thought about where we would wind up, we certainly factored in what we saw in Q4 and made the assumption that until whatever it is, is going to happen in the economy actually manifests itself that we would continue to see this deliberate kind of pace of people being able to make decisions that they felt comfortable making or be able to have enough assets in place to be able to actually implement and roll out.

是的。這是約翰。謝謝你的問題。我認為我們將看到的是，隨著對經濟可能發生或不發生的事情的持續報導成為當今的話題，這種深思熟慮的決策將會發生，並且進入我們的想法。當我們展望來年並考慮我們將在哪裡結束時，我們當然考慮了我們在第四季度看到的情況並做出假設，直到經濟中將要發生的事情實際表明我們將繼續看到這種深思熟慮的步伐，人們能夠做出他們覺得很舒服的決定，或者能夠擁有足夠的資產來實際實施和推出。

And our expectation is that while this sort of hangs over the heads of everybody that has to work in this economy that, that was what we were going to see. But that also, as I mentioned before, that was factored into our thinking as we came into the guidance that we provided.

我們的期望是，雖然這種情況籠罩在每個必須在這種經濟中工作的人的頭上，但這就是我們將要看到的。但是，正如我之前提到的，當我們進入我們提供的指導時，這也被納入我們的思考。

And let me just add to that. So things we were talking about in Q3 and Q4, yes, we are seeing them coming to fruition in Q1, but things we thought would come to fruition in Q1 may not now play out until Q2 or Q3. That's the thinking of what we've imposed, if you will, on the budgetary model as we roll out over the 4 quarters. Now as I say, in my earlier remarks, how the economy will actually play out and how people will behave against it is very much, I think, to be determined. But we felt it was prudent to take our near-term experience and assume that at least for the current 4 quarters, meaning 2023, that this situation will persist. And so, things that we thought would occur will occur, but on a delayed basis, and then we just keep rolling that from a pipeline perspective throughout the year, meaning things that we thought would occur in 23-may probably occur till 24 as you get later in the year.

讓我補充一點。所以我們在第三季度和第四季度討論的事情，是的，我們看到它們在第一季度實現，但我們認為會在第一季度實現的事情現在可能要到第二季度或第三季度才能實現。這就是我們在 4 個季度推出時對預算模型施加的想法（如果您願意的話）。現在正如我所說，在我之前的發言中，經濟將如何實際發揮作用以及人們將如何反對它，我認為，這在很大程度上有待確定。但我們認為，根據我們的近期經驗並假設至少在當前 4 個季度，即 2023 年，這種情況將持續下去是明智的。因此，我們認為會發生的事情會發生，但會延遲發生，然後我們會全年從管道的角度不斷滾動，這意味著我們認為會在 23 日內發生的事情可能會發生到 24 日，因為你在今年晚些時候得到。

(Operator Instructions) And the next question is coming from John Tanwanteng from CJS Securities.

（操作員說明）下一個問題來自 CJS 證券公司的 John Tanwanteng。

Just a quick one on the deferred revenue. Over what time frame do you expect to recognize than the ones that are identified in '22 that are going there?

只是關於遞延收入的一個快速的。您希望在什麼時間範圍內識別出那些在 22 年確定的將要到那裡的人？

This is Jim alone. That deferred revenue will be recognized. And first of all, I would say it's solid revenue. The product was accepted by the client. We received the cash. So as a matter as you're raising up, it's a timing issue, not that the revenue is in question. likely that we're looking into that now, John. And the revenue going to the accounting principles will be recognized over the term of the contract or a shorter period of the contract. So, it is good future revenue. We're looking into that. We'll likely see some of that revenue coming about in 2023. So -- and we'll continue to assess it.

這是吉姆一個人。該遞延收入將被確認。首先，我會說這是穩定的收入。產品被客戶接受。我們收到了現金。因此，就您提出的問題而言，這是一個時間問題，而不是收入問題。很可能我們現在正在調查，約翰。並且按照會計準則的收入將在合同期限內或合同期限內的更短期限內確認。因此，這是很好的未來收入。我們正在調查。我們可能會在 2023 年看到部分收入。因此——我們將繼續對其進行評估。

But unlikely that it would be all the round...

但它不太可能是全面的......

But... Unlikely would be all the revenue in the current fiscal year. It's probably going to be spread over some number of quarters or some number of years. Correct.

但是......不太可能是當前財政年度的所有收入。它可能會分佈在幾個季度或幾年內。正確的。

Understood. And then just regarding the new market structure, is this something that will take time to implement? Or are you already -- have you already run the whole thing through the organization? And what kind of traction do you expect to see from this program?

明白了。然後就新的市場結構而言，這是否需要時間來實施？或者你已經——你已經在整個組織中運行了整個事情嗎？您希望從該計劃中看到什麼樣的牽引力？

So it's actually been implemented. The good news is, and as John mentioned, this was not designed for cost savings, although I think there will be efficiencies, say, in our marketing dollars of spend by reorganizing sales and marketing in the manner we did. But it was really putting a better structure in place and putting people in the place that we currently have where they could really spread their wings and take advantage of a bigger opportunity. Now in the evolution of the structure, there's probably a -- and there's always a debate, a handful or so of incremental hires that we will embark upon. So, it has been implemented. Everybody knows their new role within the structure. Now we very recently rolled it out. So, it has been functioning for 2 or 3 months and functioning for about a week. And there are a handful of hires that we will be pursuing to fill in some of the gaps as we roll from the old siloed structure to the new structure. But it is very much in the early stages of being in force I think like everything, you have to be a little bit cautious because even though all of the people are in the boxes with a small exception, they're all going to have to get used to their roles and how they interact with each other. And part of it is breaking down a historic mentality. I mean, remember, the siloed mentality is not one that we came up with a year or 2 years ago. This goes back 20 years. And in some cases, some of the people have been with the company for a number of years. So, a lot of it is breaking apart that mindset, understanding we're now thinking holistically about marketing of the certain brands going to market as a unified sales not – I'm in the e-commerce bucket, in the mid-market bucket or on the enterprise bucket. And then filling in some gaps that were identified as we tried to stretch from the old mid-market to the former enterprise. There was a gap in there of customers say, generating significantly tens of thousands of dollars, maybe $100,000 a month in revenue that kind of fall between the cracks of those 2 previous subchannels of revenue. So, I do think that we're going to have some period of time to digest the structure for people to get confident and comfortable with it. But the real goal, if you look at it from a sales standpoint or a booking standpoint, is to dramatically increase the aperture at the top of the funnel and to have a lot more in the pipeline. -- so that there's many more routes or ways or paths by which we can achieve the revenue, and it's not so dependent upon, say, 1 or 2 or 3 handfuls of larger customers that are currently in the pipeline that people think are going to close now, but then they close a month later, 2 months later, 3 months later, and it creates a ripple effect in terms of deferring revenue out to future periods.

所以它實際上已經實施了。好消息是，正如 John 所提到的，這並不是為了節省成本而設計的，儘管我認為通過以我們所做的方式重組銷售和營銷，我們的營銷支出將會提高效率。但它確實建立了一個更好的結構，讓人們處於我們目前擁有的位置，在那裡他們可以真正展開翅膀並利用更大的機會。現在，在結構的演變過程中，可能存在——而且總是存在爭論，我們將著手進行一些增量招聘。所以，已經實施了。每個人都知道他們在結構中的新角色。現在我們最近推出了它。因此，它已經運行了 2 或 3 個月，並運行了大約一個星期。在我們從舊的孤立結構轉向新結構的過程中，我們將招聘一些人來填補一些空白。但它還處於生效的早期階段，我認為就像所有事情一樣，你必須要謹慎一點，因為即使除了少數例外，所有人都在盒子裡，但他們都必須習慣他們的角色以及他們如何與彼此互動。其中一部分是打破歷史心態。我的意思是，請記住，孤立的心態不是我們在一年或兩年前提出的。這可以追溯到 20 年前。在某些情況下，有些人已經在公司工作多年。所以，很多都是打破這種心態，理解我們現在正在全面考慮某些品牌的營銷作為統一銷售而不是 - 我在電子商務桶中，在中期 -市場桶或企業桶。然後填補我們試圖從舊的中端市場延伸到前企業時發現的一些空白。客戶說那裡存在差距，每月產生數万美元，也許 100,000 美元的收入，介於這兩個先前的收入子渠道之間。所以，我確實認為我們將有一段時間來消化結構，讓人們對它充滿信心和適應。但真正的目標，如果你從銷售的角度或預訂的角度來看，是顯著增加漏斗頂部的孔徑，並在管道中有更多。 ——這樣我們就可以通過更多的途徑或途徑來實現收入，而不是像人們認為的那樣依賴於目前正在籌備中的 1 或 2 或 3 個大客戶現在關閉，但一個月後、2 個月後、3 個月後關閉，這會產生連鎖反應，將收入推遲到未來期間。

Got it. Last one for me. Just any thoughts on use of cash over the next year. You guys still generate a fair amount even with some headwinds going. Help me understand what the priorities are.

知道了。最後一個給我。關於明年使用現金的任何想法。即使遇到一些不利因素，你們仍然會產生相當多的收益。幫助我了解優先事項是什麼。

Yes. The priorities are -- look, I think in this environment, building cash is not a bad thing. It doesn't mean we're going to sit on it and do nothing. In fact, I'd like to get that cash invested and get a little better yield out of it, meaning in short-term, very liquid investments. I actually and probably even more negative on M&A in the near to intermediate term. It doesn't mean we don't look and won't look, but I really don't anticipate any transactions this year. I think there's a lot for the development teams to do that is internal. Jobs outlined a number of them in terms of evolution of existing products, development of new products like Harmony MVP, consolidation of existing internal systems that's not so transparent to the outside world. There's a lot of work to be done. And I think we're going to be very judicious this year in how we bring on incremental hires. We're not going to -- not hire. But obviously, given our view of, call it, a 5% top line growth, we're not going to add at the same pace we did in 2022. So, we have to really prioritize. But I think just adding an M&A deal would be -- it would cause distraction on the front end and probably even greater distraction on the back end. So, I don't see M&A in the near term as being a priority really at all. That may change in '24 or '25. But I think for '23, it's highly unlikely. So that leaves us to really opportunistic stock repurchases, which we remain interested in, depending upon the level of the stock, but I am more and increasingly interested in paying down some debt. Now as you know from the spin, we really can't do anything until October of this year when we hit the 2-year anniversary. And even at that point, we can only effectuate transactions against the 6% notes, the 5-year notes at 6%. Obviously, it's a very attractive interest rate in this environment. So, we have to look at where the bonds trade, what are ways of buying them in. I don't see a rationale for calling them because the call price is 103, and they trade below par. So those are all things we're going to watch as we get later in the year. But I do think some actual retirement of debt, if not this year, next year in anticipation of the maturity of the 6% notes in 2026 would be a good use of cash.

是的。優先事項是——看，我認為在這種環境下，積累現金並不是一件壞事。這並不意味著我們要坐視不理。事實上，我希望將這些現金用於投資並從中獲得更好的收益，這意味著短期、流動性很強的投資。實際上，我在近期和中期對併購的看法可能更加負面。這並不意味著我們不看也不會看，但我真的預計今年不會有任何交易。我認為開發團隊有很多內部工作要做。喬布斯從現有產品的發展、Harmony MVP 等新產品的開發、對外界不那麼透明的現有內部系統的整合等方面概述了其中的一些。有很多工作要做。我認為今年我們將非常明智地增加招聘人數。我們不會 - 不會僱用。但顯然，考慮到我們認為（稱之為 5% 的）收入增長，我們不會以與 2022 年相同的速度增加。因此，我們必須真正確定優先順序。但我認為，僅僅增加一項併購交易就會——這會導致前端分心，甚至可能在後端造成更大的分心。因此，我認為短期內的併購根本不是一個優先事項。這可能會在 24 年或 25 年發生變化。但我認為對於 23 年來說，這是極不可能的。因此，這讓我們只能進行真正的機會主義股票回購，我們仍然對此感興趣，具體取決於股票的水平，但我越來越有興趣償還一些債務。正如您從旋轉中了解到的那樣，在今年 10 月我們迎來 2 週年紀念日之前，我們真的無能為力。即使在那個時候，我們也只能以 6% 的票據，即 6% 的 5 年期票據進行交易。顯然，在這種環境下，這是一個非常有吸引力的利率。所以，我們必須看看債券在哪裡交易，買入它們的方式是什麼。我看不到買入它們的理由，因為買入價是 103，而且它們的交易價格低於面值。所以這些都是我們在今年晚些時候要關注的事情。但我確實認為一些實際的債務償還，如果不是今年，明年預計 2026 年 6% 票據到期將是對現金的良好利用。

Great. Thanks, Scott. I'll jump back in queue.

偉大的。謝謝，斯科特。我會跳回到隊列中。

And the next question is coming from Joe Goodwin from JMP Securities.

下一個問題來自 JMP Securities 的 Joe Goodwin。

I guess, Scott or John, your last week, the ONC announced the 6 organizations that were approved to participate in TEFCA, 2 of which you integrate with a relief, but can you just share your perspective on the announcement and maybe talk about what TEFCA can mean for the industry and any positives or negatives it brings to your business?

我想，Scott 或 John，你的上週，ONC 宣布了 6 個獲准參與 TEFCA 的組織，其中 2 個組織與救濟整合在一起，但你能否分享你對公告的看法，也許可以談談 TEFCA對行業意味著什麼以及它給您的業務帶來的任何積極或消極影響？

Well, for those of you who don't know, TEFCA is a framework for interoperability that relies on entities called QHINs to be able to communicate via fire or fast health care Internet resources in order to move information. Now we believe the TEFCA framework is going to play favorably for us. I think that we have a place to play in front of the QHINs to be able to assimilate communications through a number of different protocols, deliver those to QHIN, who will then speak fire to other QHIN. So, from our point of view, we've got an opportunity with the QHIN, and, as you pointed out, there are a couple who are already customers to potentially expand our footprint there as a multichannel multiprotocol intake to be able to deliver information to a QHIN so that they can communicate over the Tefca network. So, we're looking at it as an opportunity for us.

那麼，對於那些不知道的人來說，TEFCA 是一個互操作性框架，它依賴於稱為 QHIN 的實體能夠通過火或快速醫療保健互聯網資源進行通信以移動信息。現在我們相信 TEFCA 框架將對我們有利。我認為我們有一個地方可以在 QHIN 面前發揮作用，以便能夠通過多種不同的協議吸收通信，將這些傳遞給 QHIN，然後 QHIN 將向其他 QHIN 發火。因此，從我們的角度來看，我們有機會使用 QHIN，而且正如您所指出的那樣，有一些已經成為客戶的夫婦可能會擴大我們在那裡的足跡，作為多通道多協議攝入量，以便能夠傳遞信息到 QHIN，以便他們可以通過 Tefca 網絡進行通信。因此，我們將其視為我們的機會。

Got it. And just to clarify, in order to do so, that would be an incremental product development.

知道了。只是為了澄清，為了做到這一點，這將是一個漸進的產品開發。

Natively, we speak all those languages already. So, it wouldn't be incremental for us. And in fact, we think it would be a nice opportunity to showcase clarity, in particular, as an uplift to QHIN set of value delivery that they can make to their customers as they market themselves to the health care end points.

在本地，我們已經會說所有這些語言。所以，這對我們來說不會是增量的。事實上，我們認為這將是一個展示清晰度的好機會，特別是作為對 QHIN 一套價值交付的提升，他們可以在將自己推銷到醫療保健終點時向客戶提供這些價值交付。

We want to take a few questions that have come in by e-mail. Paul? we'll take some questions by e-mail. We've gotten some questions by e-mail. So let's address those.

我們想回答一些通過電子郵件提出的問題。保羅？我們將通過電子郵件回答一些問題。我們通過電子郵件收到了一些問題。因此，讓我們解決這些問題。

So it was noted that -- and I'm pleased with it, that the sequential uptick in our corporate channel was from 47,000 to 52,000 customers. That was the good news. Not that there's any bad news, but they happen to be on the smaller mid-market into the spectrum versus larger customers. Have they been larger customers? We probably would have easily made up the $3 million shortfall and then some. That's how sensitive on the margin it is, whether they're 5,000 big customers that come in, strategic customers, large accounts or they're mid-market. And unfortunately, in terms of Q4 revenue productivity, they were in predominantly the mid-market.

所以有人指出——我很高興，我們公司渠道的客戶數量從 47,000 增加到 52,000。這是個好消息。並不是說有任何壞消息，但它們恰好是在較小的中端市場，而不是較大的客戶。他們是更大的客戶嗎？我們可能很容易彌補 300 萬美元的缺口，然後補上一些。這就是利潤率的敏感程度，無論他們是 5,000 名大客戶、戰略客戶、大客戶還是中端市場。不幸的是，就第四季度的收入生產力而言，他們主要在中端市場。

In terms of the visibility, the next question on guidance of corporate revenue. So Leaving aside economic assumptions, I think it's clear to most people, there's very strong visibility on the e-commerce channel. It's a function of marketing dollars in, paid ads that it generates cancel rate that we disclosed and our own assumptions around it. As you -- there's a continuum though. And as you move out of the e-commerce model into the mid-market, the large accounts and the strategic, the farther upstream you go, the less visibility you have as it relates particularly to new customer wins and implementation. The book of business that's in-house is very predictable. Now sometimes, there will be some volatility we saw in Q4, for example, you'll notice it in the metrics, a sequential decline of $1 million in variable revenue from Q3 to Q4. That was largely a function of 2 things: one, less of business days in Q4, which is always true, but there were some very bad weather conditions on the East Coast, particularly in the latter part of December, last 2, 3 weeks of December. That impacts that. So those kind of things can be taken into account, and they're not always knowable when you sit 11, 12 months out and are giving annual guidance. But the book of business is very solid. The timing of wins and the implementation and their ramp is what is less visible. And what we did this year in the guidance is we -- I wouldn't say we completely de-risked it. But relative to last year's guidance, we took out a lot of the speculation of what would be the conversion of the pipeline, the timing and the implementation because for a variety of reasons, the back half of the year that didn't play out as we hoped for.

在可見性方面，下一個問題是關於企業收入的指導。所以撇開經濟假設不談，我認為大多數人都清楚，電子商務渠道的知名度非常高。這是營銷美元的功能，付費廣告會產生我們披露的取消率以及我們自己的假設。就像你一樣——雖然有一個連續體。當你從電子商務模式進入中端市場、大客戶和戰略時，你越往上游走，你的知名度就越低，因為這尤其與贏得新客戶和實施有關。內部的業務手冊是非常可預測的。現在有時，我們在第四季度會看到一些波動，例如，您會在指標中註意到，從第三季度到第四季度可變收入連續下降 100 萬美元。這主要是兩件事的結果：第一，第四季度的工作日較少，這一直都是事實，但東海岸的天氣狀況非常糟糕，特別是在 12 月下旬，過去 2、3 週十二月。那影響那個。所以這些事情可以被考慮在內，當你在 11、12 個月後給出年度指導時，它們並不總是可知的。但是商業書籍非常紮實。勝利的時機和實施及其斜坡不太明顯。我們今年在指南中所做的是——我不會說我們完全降低了風險。但相對於去年的指導，我們排除了很多關於管道轉換、時間安排和實施的猜測，因為由於各種原因，今年下半年沒有發揮作用我們希望。

Then the next question was on FX headwinds. I don't have this for the quarter, although we'll be happy to provide it. I know for the year; it was about $2.7 million for the whole company. The vast majority of that -- those 2 e-commerce or Soho channel, a few 100 grand would be to the corporate. Our FX this year and what we do in the budgeting process is we do sort of an average of a variety of economists that are out there usually at a variety of brokerage firms. And if I had to pick the euro as part of probably the key currency that has the most influence and volatility in both our revenues, EBITDA and the intercompany relationships below the line, it's projected to be fairly stable at around 108 range of where it ended the year, which I think was 107 and change. There is some moderation across the 4 quarters. I think it might hit a high of 109. So what we do is we bake that in to our analysis. But if you take Q4 relative to at least the other 3 quarters of 22 it should be stable if, in fact, the euro behaves that way. And whether it behaves better or worse, we will take that into account, obviously, as we have our financial reporting for each quarter. And then as Jim had mentioned historically, we will do so prospectively, we'll give it to you on a constant dollar basis. And that's why you'll notice there's about a 1 percentage point better growth rate for the corporate channel and the company as a whole in 2022, if you look at it on a constant dollar versus as reported. In the scheme of things, it's relatively modest, but we give you that additional information so that you have access to it if you look at the business that way because that is really the strength of the business. We don't obviously control or have any influence on the FX exchange rates. And so, we sometimes are benefited by them. Sometimes we are -- it's deterrent. Last year it was towards the deterrent.

然後下一個問題是關於外匯逆風。本季度我沒有這個，儘管我們很樂意提供。我知道這一年；整個公司約為 270 萬美元。其中絕大多數 - 那些 2 電子商務或 Soho 渠道，100 大將是公司。我們今年的外彙和我們在預算過程中所做的是，我們對通常在各種經紀公司工作的各種經濟學家進行平均。如果我不得不選擇歐元作為可能對我們的收入、EBITDA 和線下公司間關係影響最大和波動性最大的主要貨幣的一部分，預計它會相當穩定地保持在它結束時的 108 左右範圍內這一年，我認為是 107 和變化。四個季度都有一些緩和。我認為它可能會達到 109 的高點。所以我們所做的就是將其納入我們的分析。但是，如果您將第四季度與 22 個季度中的至少其他三個季度相關聯，那麼它應該是穩定的，如果歐元確實如此的話。無論它的表現是好是壞，我們都會考慮到這一點，顯然，因為我們有每個季度的財務報告。然後正如吉姆在歷史上提到的那樣，我們會前瞻性地這樣做，我們會以不變的美元為基礎給你。這就是為什麼你會注意到，如果你以不變的美元與報導的相比，到 2022 年，公司渠道和整個公司的增長率將提高約 1 個百分點。在事物的計劃中，它相對適度，但我們會為您提供額外的信息，以便您在以這種方式看待業務時可以訪問它，因為這確實是業務的優勢。我們顯然無法控製或影響外匯匯率。因此，我們有時會從中受益。有時我們 - 這是一種威懾。去年它是為了威懾。

Okay. Paul, we'll go back to live questions.

好的。保羅，我們將回到現場提問。

Certainly. We did have a follow-up come in from John Tanwanteng from CJS Securities.

當然。我們確實有來自 CJS 證券的 John Tanwanteng 的跟進。

Not to ask you to make guidance or outlook for another year. But let's say if we get past these recessionary headwinds, people go back to making decisions that are more timely, maybe churn rates and so take back down to more normalized rates. What could you envision a 2024 might look like both getting back to a revenue growth rate that's more normalized and number one and number two, what kind of margins would you be able to generate that scenario? Would it be the case where you keep investing more to drive future growth? Or is there some room for expansion there?

不要求您為下一年做出指導或展望。但是，假設我們度過了這些經濟衰退的逆風，人們會重新做出更及時的決策，可能會降低流失率，從而回到更正常化的水平。你能想像 2024 年會是什麼樣子，既能恢復到更正常化的收入增長率，又能排名第一和第二，你能在這種情況下產生什麼樣的利潤率？您會繼續投資以推動未來增長嗎？還是那裡有一些擴展空間？

Yes. I think -- look, I love the question, John. We just released 23 guys. Let's talk about 24, 25. But in some respects, I like the question because I do think -- I don't know whether the economy will play out as we articulated. Will it recover by early '24. Will it still be in the malaise? Who knows? But I guess I'll take at face value your assumptions, which is we have a mild recession, it is the back half of the year, and it's on an improvement up ramp going into '24. I think as we think about it, think about the range we gave all the way back to the time of the spin, we said 5% to 9% revenue growth, okay? We're projecting at the low end of that range this year, but at the low end. It has been my view, my belief, my hope and my desire to all the caveats it, that we will drive double-digit growth. Now I think in light of the economic conditions, that's probably not likely in '24. But if we start migrating from the low end of the range to say the[mediation] point or slightly above that, that would probably be trending in the right direction. And the exact numbers in '24 are also going to be a function of, well, how much does the VA contributor? How substantially rolled out will it be? We've seen, unfortunately, some delay after delay after delay. You may recall going back some number of months ago, it was the VA's desire that there would be the first implementation in our fiscal Q4, the government's fiscal Q1. Now we're talking about the first rollout coming in late Q1 for us or sometime in Q2 and producing revenue in Q2 or early Q3. So, if we go out far enough, all of those things should start contributing revenue. Other agencies should be on board. -- clarity should be producing revenue. All these things should start accumulating on itself. And I would expect then some acceleration of growth, but this is very, very high level and it's very, very early. I generally don't like to get into talking 2 to 3 years out. But I do think we are setting the stage for when there is a good improving economy with all of the pieces we put in place to see some acceleration, hopefully good acceleration of the 5% that we're estimating this year at the midpoint.

是的。我想——看，我喜歡這個問題，約翰。我們剛剛釋放了 23 個人。讓我們談談 24、25。但在某些方面，我喜歡這個問題，因為我確實認為——我不知道經濟是否會像我們所說的那樣發揮作用。它會在 24 年初恢復嗎？還會一直在萎靡不振嗎？誰知道？但我想我會從表面上看你的假設，這是我們有溫和的衰退，這是今年下半年，並且在進入 24 年之前正在改善。我認為，當我們考慮它時，想想我們一直以來給出的範圍，我們說收入增長 5% 到 9%，好嗎？我們預計今年將處於該範圍的低端，但處於低端。我的觀點、我的信念、我的希望和我對所有警告的渴望是，我們將推動兩位數的增長。現在我認為，鑑於經濟狀況，這在 24 世紀不太可能發生。但是，如果我們開始從範圍的低端遷移到 [調解] 點或略高於該點，那可能會朝著正確的方向發展。而 24 年的確切數字也將取決於 VA 的貢獻者有多少？它將有多大程度的推廣？不幸的是，我們已經看到了一個又一個延遲的延遲。您可能還記得幾個月前，退伍軍人事務部希望在我們的第四財季，即政府的第一財季首次實施。現在我們談論的是第一季度末或第二季度某個時候首次推出，並在第二季度或第三季度初產生收入。所以，如果我們走得足夠遠，所有這些東西都應該開始貢獻收入。其他機構也應該加入。 -- 清晰應該產生收入。所有這些東西都應該開始自己積累。我預計那時會出現一些加速增長，但這是非常非常高的水平，而且還非常非常早。我通常不喜歡談論 2 到 3 年後的事情。但我確實認為，我們正在為經濟出現良好改善做好準備，我們已經做好了所有準備，以期看到一些加速，希望能實現我們估計今年中點的 5% 的良好加速。

And in terms of margins, look, that's an interesting question. We're judicious this year. There continues to be demand, Look ours become primarily a people-oriented business. That's how we drive incremental revenue. We need the people to build, we need people to develop, we need the people to the market, we need the people to sell, we need the people to support the customers. It's all about people. So yes, there's a marketing dollar spend that is not -- it's a real number, but it's all people first. As I said, we're going to be very judicious this year in incremental hires if, in fact, we trend to a 5% revenue growth. I would say this, if we start to trend higher in the range, and you'll notice there's a modest expansion of margin, if you move from 3.80 to 3.90, but we do anticipate there would be some reinvestment of those incremental revenue dollars back into the business. Now if you think out longer term, I don't know. I mean I do -- what I don't want to have happen here is -- and I don't believe this business is really a margin play business. So might margins expand somewhat as we get to high single or low double-digit growth yes, but I don't think it's fundamentally a margin play saying, "All right, we're at 52.3%, and the goal is to get to 55% and then to 57.5%. It's more about revenue generation and being a revenue play at a very good margin. So yes, we will definitely reinvest incremental revenue dollars to some extent back into the business, and we'll probably bring some to the bottom line.

就利潤率而言，看，這是一個有趣的問題。今年我們很明智。需求持續存在，看我們的業務主要以人為本。這就是我們推動增量收入的方式。我們需要人來建設，我們需要人來發展，我們需要人推向市場，我們需要人來銷售，我們需要人來支持客戶。一切以人為本。所以是的，有一個營銷美元支出不是——它是一個真實的數字，但它是以人為本的。正如我所說，如果事實上我們的收入增長趨勢為 5%，那麼今年我們將非常明智地增加招聘人數。我會這樣說，如果我們開始在該範圍內走高，你會注意到利潤率適度擴大，如果你從 3.80 移動到 3.90，但我們確實預計這些增量收入美元會有一些再投資進入業務。現在，如果你從長遠考慮，我不知道。我的意思是我願意——我不想在這裡發生的是——我不相信這項業務真的是一個利潤遊戲業務。因此，當我們達到高個位數或低兩位數增長時，利潤率可能會有所擴大，是的，但我不認為這從根本上說是一種利潤率遊戲，“好吧，我們達到了 52.3%，我們的目標是達到55%，然後是 57.5%。這更多的是關於創收，並且是一個非常好的利潤率的收入遊戲。所以是的，我們肯定會在某種程度上將增量收入重新投資到業務中，我們可能會帶來一些底線。

Great. Scott. Actually, you were touching on some of the things that one asked about the VA. I was wondering if you could point out, if anything, what the cause of the delays were over the last several quarters? And if going forward, what could break the logjam, I know that being under continuing resolution having a budget can make a difference in a lot of cases. Is that something that you're thinking of? And is that something that impacted the VA

偉大的。斯科特。實際上，您談到了一些關於退伍軍人事務部的問題。我想知道您能否指出過去幾個季度出現延遲的原因（如果有的話）是什麼？如果繼續前進，什麼可以打破僵局，我知道在很多情況下，有預算的持續解決方案會有所作為。那是你正在考慮的事情嗎？那是影響退伍軍人事務部的事情嗎？

I'll let John take it because he's closer to the front line.

我會讓 John 拿走，因為他離前線更近。

I think what we're seeing is that as you go into engagements with clients and clients, there is a perception of the ease of a fact system in terms of the kind of complexity that actually has to go into delivering cloud tracks in a high-quality way. And I think what surprised the customer more than anything was level of information necessary in order to make sure things were routing correctly, that connections were made that the right numbers to be ported reported. And it certainly required work on the implementers end as well as the customers end. And as you go through, I think, the first deployment, you shake out a lot of those kind of concerns. I think additionally, as you look at the landscape and some challenges that this government agency, in particular, has had with different kinds of deployments of new technology, there is an overall feeling that they want to be very careful to make sure that they're doing things exactly the right way and that the rollout is successful.

我認為我們所看到的是，當您與客戶和客戶進行接觸時，人們會認為事實係統的易用性就其複雜性而言實際上必須以高 -質量方式。而且我認為最讓客戶感到驚訝的是必要的信息級別，以確保事情正確路由，建立連接以報告要移植的正確號碼。它當然需要在實施者端和客戶端開展工作。當你經歷第一次部署時，我認為你會擺脫很多這樣的擔憂。我認為，另外，當你審視這個政府機構在不同類型的新技術部署方面所面臨的形勢和一些挑戰時，總體感覺是他們想要非常小心，以確保他們'以正確的方式做事，並且部署成功。

So, I think we're getting to the point with the first deployment where we get live customers up and running and the lessons learned as we've gone through that process with the implementer and with the customer are going to be able to be applied forward so we can start to accelerate. But it's really getting that first one up. And I think that, that's what we're seeing in terms of the things that we're moving more slowly than any of us would like.

所以，我認為我們已經達到了第一次部署的地步，我們讓現場客戶啟動並運行，並且在我們與實施者和客戶一起完成該過程時吸取的教訓將能夠應用向前，這樣我們就可以開始加速了。但這確實是第一個。而且我認為，這就是我們所看到的事情，我們正在比我們任何人想要的更慢地移動。

And there were no more questions in queue at this time. I would now like to hand the call back to Scott Turicchi for closing remarks.

此時隊列中沒有更多問題。我現在想把電話轉回給 Scott Turicchi，請他作結束語。

We actually have one more that came in by e-mail, Paul, so I'll take this and then we'll close out the call because we're on the hour mark. And I actually think it's an insightful, good question that I'm glad to get on the record here.

我們實際上還有一個通過電子郵件收到的，保羅，所以我會接受這個，然後我們將結束電話會議，因為我們已經到了小時標記。事實上，我認為這是一個很有見地的好問題，我很高興在這裡記錄下來。

Question is about free cash flow generation. Now we don't guide the free cash flow. It's a tricky thing to estimate. Having said that, I want to make some comments about 2022 free cash flow and a variety of adjustments that impacted the reported results, some of which will have some occurrence in '23, but most will not. What I want to highlight is about $22.5 million to $23 million of payments that hit our free cash flow in 2022, 2 of which should not reoccur.

問題是關於自由現金流的產生。現在我們不引導自由現金流。這是一件很難估計的事情。話雖如此，我想對 2022 年的自由現金流和影響報告結果的各種調整髮表一些評論，其中一些會在 23 年發生，但大多數不會。我想強調的是，2022 年影響我們自由現金流的付款約為 2250 萬至 2300 萬美元，其中 2 筆不應再次發生。

One had to do with some taxes we paid in '22 that actually related to $21 million of $6.5 million -- We had payments to Zip exclusive of becoming book cash that was about $11 million. And then as you've heard Jim talk about, and you've seen it in our Ks and our Qs. -- we've been going through a process with the states to settle historical sales tax issues. We paid about $5 million in -- mostly in Q4, but in the latter part of 2022. So that's almost $23 million of free cash flow. Now the VDA piece will continue in '23, but it's hard to estimate how much we'll pay out in '23 because it's really a function of how fast the states respond to us. We think it could be in that range of $5 million to $7 million. It could be lower than that. It could be higher than that by probably a modest amount. So, as I look at it at the $197 million of EBITDA, we paid $30 million in cash taxes that related to the year, $52 million in interest expense, $30 million in CapEx, you'd expect about $85 million of free cash flow. The adjustments I gave you -- gets you somewhere into the mid- to high 70s. And then there's always dribs and drabs of things in terms of working capital timing and things like that.

其中一個與我們在 22 年支付的一些稅款有關，這些稅款實際上與 650 萬美元中的 2100 萬美元有關——我們向 Zip 支付的款項不包括約 1100 萬美元的賬面現金。然後正如您聽到 Jim 談論的那樣，並且您已經在我們的 Ks 和 Qs 中看到了它。 -- 我們一直在與各州一起解決歷史銷售稅問題。我們支付了大約 500 萬美元——主要是在第四季度，但在 2022 年下半年。所以這幾乎是 2300 萬美元的自由現金流。現在 VDA 將在 23 年繼續，但很難估計我們將在 23 年支付多少，因為這實際上取決於各州對我們的反應速度。我們認為它可能在 500 萬到 700 萬美元之間。它可能比那個低。它可能比那個高一點。因此，當我看到 1.97 億美元的 EBITDA 時，我們支付了 3000 萬美元與當年相關的現金稅，5200 萬美元的利息支出，3000 萬美元的資本支出，你預計會有大約 8500 萬美元的自由現金流。我給你的調整 - 讓你進入 70 年代中期到中期。然後，在營運資金時間安排等方面總會有一些點點滴滴的事情。

So, the derivative question was what do we think the free cash flow will be at the midpoint of the guidance range, which is $199 million of EBITDA. Our CapEx, which really capitalized labor will go up, probably offset the $197 to $199 delta. So I would expect it to be somewhere between the high 70s, maybe to the mid-80s. But it will be dependent upon the pace at which we settle with the states. And it is something we want to do. Our settlements have generally been under our accruals -- so in that sense, it's been favorable. It's been a very smooth process. And it's something that I'd like to see us get behind us. On the other hand, we cannot laterally force that issue. It's a dialogue with various states.

因此，衍生問題是我們認為自由現金流量將處於指導範圍的中點，即 EBITDA 的 1.99 億美元。我們真正資本化勞動力的資本支出將會上升，可能會抵消 197 美元至 199 美元的增量。所以我預計它會介於 70 年代高點之間，也許到 80 年代中期。但這將取決於我們與各州達成和解的速度。這是我們想做的事情。我們的定居點一般都在我們的應計款項下——所以從這個意義上說，這是有利的。這是一個非常順利的過程。這是我希望看到我們支持的事情。另一方面，我們不能橫向強行解決這個問題。這是與不同國家的對話。

So that's all the questions that we have, both live and by e-mail. We appreciate your time and attention today for listening to the Q4 and fiscal year 2022 call. Hopefully, we've given you enough information so you can understand both historical results, the 2 accounting adjustments as well as how we think about our guidance for 2023. There are a handful over the next 2 to 3 months of conferences we'll be participating at. The JMP conference is coming up in early March. That will be a live presentation. I believe there's a need of conference coming up that will be virtual. We will announce all of these by press release, so you can participate if you happen to be there live, we can request the one-on-one. If not, I think in most instances, there will either be a fireside chat or a formal presentation, and those will be webcast. Thank you.

這就是我們的所有問題，包括現場和電子郵件。感謝您今天抽出時間聆聽第四季度和 2022 財年的電話會議。希望我們已經為您提供了足夠的信息，以便您了解歷史結果、2 次會計調整以及我們如何看待 2023 年的指導方針。在接下來的 2 到 3 個月的會議中，我們將舉行一些會議參加於。 JMP 會議將於 3 月初舉行。那將是一個現場演示。我認為需要召開虛擬會議。我們將通過新聞稿宣布所有這些，因此如果您恰好在現場，您可以參加，我們可以要求一對一。如果沒有，我認為在大多數情況下，將進行爐邊談話或正式演示，這些將進行網絡直播。謝謝。

Thank you. This does conclude today's conference. You may disconnect at this time and have a wonderful day. Thank you for your participation.

謝謝。今天的會議到此結束。此時您可能會斷開連接並度過美好的一天。感謝您的參與。