Hackett Group Inc (HCKT) 2022 Q4 法說會逐字稿

Welcome to The Hackett Group Fourth Quarter Earnings Conference Call. (Operator Instructions) Please be advised the conference is being recorded. Hosting tonight's call are Mr. Ted Fernandez, Chairman and CEO; and Mr. Rob Ramirez, Chief Financial Officer. Mr. Ramirez, you may begin.

歡迎來到哈克特集團第四季度收益電話會議。 （操作員說明）請注意會議正在錄製中。主持今晚電話會議的是董事長兼首席執行官 Ted Fernandez 先生；首席財務官 Rob Ramirez 先生。拉米雷斯先生，你可以開始了。

Good afternoon, everyone, and thank you for joining us to discuss The Hackett Group's fourth quarter results. Speaking on the call today and here to answer your questions are Ted Fernandez, Chairman and CEO of The Hackett Group; and myself, Robert Ramirez, Chief Financial Officer. A press announcement was released over the wires at 4:05 PM Eastern Time. For a copy of the release, please visit our website at www.thehackettgroup.com.

大家下午好，感謝您加入我們討論哈克特集團的第四季度業績。哈克特集團董事長兼首席執行官泰德·費爾南德斯 (Ted Fernandez) 今天在電話會議上發言並在此回答您的問題；和我自己，首席財務官羅伯特·拉米雷斯 (Robert Ramirez)。東部時間下午 4 點 05 分通過網絡發布了新聞公告。如需新聞稿副本，請訪問我們的網站 www.thehackettgroup.com。

We will also place any additional financial or statistical data discussed on this call that is not contained in the release on the Investor Relations page of our website. Before we begin, I would like to remind you that in the following comments and in the question-and-answer session, we will be making statements about expected future results, which may be forward-looking statements for the purposes of the federal securities laws.

我們還將在我們網站的投資者關係頁面上發布未包含在本次電話會議上討論的任何其他財務或統計數據。在我們開始之前，我想提醒您，在下面的評論和問答環節中，我們將對預期的未來結果做出陳述，這些陳述可能是聯邦證券法中的前瞻性陳述.

These statements relate to our current expectations, estimates and projections and are not a guarantee of future performance. They involve risks, uncertainties and assumptions that are difficult to predict and which may not be accurate, especially in light of COVID-19. Actual results may vary. These forward-looking statements should be considered only in conjunction with the detailed information, particularly the risk factors that are contained in our SEC filings.

這些陳述與我們目前的預期、估計和預測有關，並不是對未來業績的保證。它們涉及難以預測且可能不准確的風險、不確定性和假設，尤其是考慮到 COVID-19。實際結果可能有所不同。這些前瞻性陳述只能與詳細信息一起考慮，尤其是我們提交給美國證券交易委員會的文件中包含的風險因素。

At this point, I would like to turn it over to Ted.

在這一點上，我想把它交給泰德。

Thank you, Rob, and welcome, everyone, to our fourth quarter earnings call. As we normally do, I will open the call with some overview comments on the quarter. I will then turn it back over to Rob to comment on detailed operating results, cash flow as well as comment on outlook. We will then review our market and strategy-related comments, after which we will open it up to Q&A. Before I move to the quarterly results, let me start by congratulating our associates for our strong 2022 performance although the second half of the year was clearly more challenging as the Fed rate increases started to weigh in on our client spending decisions.

謝謝羅布，歡迎大家參加我們的第四季度財報電話會議。像往常一樣，我將在電話會議開始時對本季度進行一些概述評論。然後我會把它轉回給羅布，讓他對詳細的經營業績、現金流以及前景發表評論。然後我們將審查我們與市場和戰略相關的評論，之後我們將開放它進行問答。在介紹季度業績之前，讓我首先祝賀我們的員工在 2022 年取得了強勁的業績，儘管隨著美聯儲加息開始影響我們的客戶支出決策，下半年顯然更具挑戰性。

Our revenues before reimbursements were up 4%, and our adjusted EPS was $1.50, which is -- which strongly exceeded our prior year results when you exclude the tax benefit on the SARs exercise in 2021. [Whilst] after the fourth quarter this afternoon, we reported revenues of $70.1 million and adjusted earnings per share of $0.36, both exceeding our quarterly guidance. Our quarterly results were driven by revenues before reimbursements from our global S&BT segment of 3.5% on a reported basis and 5% on a local currency basis.

我們在報銷前的收入增長了 4%，我們調整後的每股收益為 1.50 美元，這大大超過了我們去年的結果，如果你排除了 2021 年 SARs 活動的稅收優惠。 [雖然] 在今天下午的第四季度之後，我們報告的收入為 7010 萬美元，調整後每股收益為 0.36 美元，均超出了我們的季度指引。我們的季度業績受到我們全球 S&BT 部門報銷前收入的推動，按報告基礎計算為 3.5%，按當地貨幣計算為 5%。

More specifically, our recurring revenue, high-margin Research Advisory and IPaaS offerings grew over 20% in the quarter. Annual contract value growth for these offerings in 2022 was also over 20%. The success and market opportunity for our intellectual property offerings highlights the reasons why we have accelerated our sales and product development investments in this area. The quarter benefited from the growth of our IPaaS revenues as the large contract was signed towards the end of the second quarter continue to ramp. We also continue to be actively engaging contract and/or pilot discussions with several large software and service companies to help them bolster their value selling and value realization efforts.

更具體地說，我們的經常性收入、高利潤研究諮詢和 IPaaS 產品在本季度增長了 20% 以上。這些產品在 2022 年的年度合同價值增長也超過 20%。我們知識產權產品的成功和市場機會凸顯了我們加速在該領域的銷售和產品開發投資的原因。本季度受益於我們的 IPaaS 收入的增長，因為在第二季度末簽署的大合同繼續增加。我們還繼續積極與幾家大型軟件和服務公司進行合同和/或試點討論，以幫助他們加強其價值銷售和價值實現工作。

Our results also benefited from the growth of our Research Advisory business. During the quarter, we launched our first two market intelligence programs, and we plan to launch additional programs throughout 2023. These programs allow us to compare the capabilities of software and service providers, which are valuable to our large Hackett benchmarking and consulting end-user client base when considering purchasing their capabilities.

我們的業績也得益於我們研究諮詢業務的增長。在本季度，我們推出了前兩個市場情報計劃，我們計劃在 2023 年推出更多計劃。這些計劃使我們能夠比較軟件和服務提供商的能力，這對我們的大型 Hackett 基準測試和諮詢最終用戶很有價值考慮購買他們的能力時的客戶群。

The programs also allow us to work with the solution providers to strategically support their sales and marketing efforts. We have also added new content and IP to our existing functionally focused executive advisory programs, improvements in our existing programs, along with new market intelligence programs, the launch of our new member, Hackett Connect, along with our aggressive sales hiring should allow us to continue to grow our higher-margin recurring revenues and related annual contract value during 2023.

這些計劃還使我們能夠與解決方案提供商合作，從戰略上支持他們的銷售和營銷工作。我們還為我們現有的以功能為中心的執行諮詢計劃添加了新的內容和 IP，改進了我們現有的計劃，以及新的市場情報計劃，我們新成員 Hackett Connect 的推出，以及我們積極的銷售招聘將使我們能夠在 2023 年繼續增加我們利潤率較高的經常性收入和相關的年度合同價值。

The Global S&BT segment revenue growth was partially offset by the results of our Oracle Solutions segment, which was down 12% and our SAP Solutions segment, which was flat with prior year. Our Oracle segment was further impacted in the quarter when one of the large implementations closed as we exited the third quarter decided to cancel our agreement after changing CIOs during the quarter. The unfavorable impact from that lost project in Q4 was $0.02 to $0.03 and is estimated to be unfavorable by approximately $0.05 net of staff reductions in Q1 of 2023.

全球 S&BT 部門的收入增長部分被我們的 Oracle 解決方案部門和 SAP 解決方案部門的業績所抵消，前一年下降了 12%，而我們的 SAP 解決方案部門與上一年持平。我們的 Oracle 部門在本季度受到進一步影響，因為我們在第三季度結束時關閉了一個大型實施，決定在本季度更換 CIO 後取消我們的協議。第四季度該項目損失的不利影響為 0.02 美元至 0.03 美元，估計在 2023 年第一季度扣除裁員約 0.05 美元後產生不利影響。

We have made some key executive additions to the group in the second half of the year and now expect our Oracle Group to level off in Q3 of 2023 and return to revenue growth in Q4 of 2023. Our SAP Solutions segment leveled off earlier than expected with flat revenues before reimbursements and improved segment profits driven by increased software sales in the fourth quarter. In Q1, we expect the SAP segment revenues to be flat on a year-over-year basis. The investments we have made to fully digitize our IP and the development of our digital platforms, which include Quantum Leap, our state-of-the-art global benchmarking platform and our proprietary Hackett Digital Transformation Platform, or DTP, are paying off.

我們在今年下半年對該集團進行了一些重要的高管補充，現在預計我們的甲骨文集團將在 2023 年第三季度趨於穩定，並在 2023 年第四季度恢復收入增長。我們的 SAP 解決方案部門比預期更早趨於平穩第四季度軟件銷售增長推動報銷前收入持平，分部利潤提高。在第一季度，我們預計 SAP 部門的收入同比持平。我們為將我們的知識產權完全數字化而進行的投資和我們數字平台的開發，包括我們最先進的全球基準平台 Quantum Leap 和我們專有的 Hackett 數字化轉型平台 (DTP)，正在取得回報。

These platforms are allowing us to highly differentiate our offerings and also develop new licensing and research relationships with software and service providers across the enterprise. We also expect to launch our Hackett Connect platform in Q2, which will significantly improve our research and IPaaS member clients' ability to avail themselves to all Hackett, our IP as well as our expertise. On the balance sheet side, our ability to generate strong cash flow from operations has allowed us to increase our dividend.

這些平台使我們能夠高度區分我們的產品，並與整個企業的軟件和服務提供商建立新的許可和研究關係。我們還希望在第二季度推出我們的 Hackett Connect 平台，這將顯著提高我們的研究和 IPaaS 成員客戶利用所有 Hackett、我們的知識產權和專業知識的能力。在資產負債表方面，我們從運營中產生強勁現金流的能力使我們能夠增加股息。

And in December, we successfully settled our $120 million Dutch tender offer to acquire over 5 million shares of the company's common stock. The tender offer resulted in the buyback of nearly 4.9 million shares and returned nearly $115 million to our shareholders. This tender offer should be strongly accretive.

12 月，我們成功完成了價值 1.2 億美元的荷蘭收購要約，以收購該公司超過 500 萬股的普通股。要約收購回購了近 490 萬股股票，並向我們的股東返還了近 1.15 億美元。該要約收購應具有很強的增值性。

And when you consider the after-tax impact of the interest expense we will incur and the elimination of over $2 million on existing dividend -- of our existing dividend, it's even more appealing on a cash basis. As we have discussed on our last few calls, we want to be more aggressive with our balance sheet by expanding our current credit facility fund acquisitions and to buy back stock while continuing to invest in our business.

當你考慮到我們將產生的利息支出的稅後影響以及對現有股息的超過 200 萬美元的消除時——我們現有的股息，它在現金基礎上更具吸引力。正如我們在最近幾次電話會議上討論的那樣，我們希望通過擴大當前的信貸融資基金收購和回購股票，同時繼續投資於我們的業務，從而在資產負債表上更加積極。

With that said, let me ask Rob to provide details on our operating results, cash flow and also comment on outlook. I will make additional comments on strategy and market conditions following Rob's comments. Rob?

話雖如此，讓我請 Rob 提供有關我們的經營業績、現金流的詳細信息以及對前景的評論。在 Rob 的評論之後，我將對戰略和市場狀況發表更多評論。搶？

Thank you, Ted. As I typically do, I'll cover the following topics during this portion of the call. I'll go through an overview of our 2022 fourth quarter results, along with an overview of related key operating statistics. I'll cover an overview of our cash flow activities during the quarter, and I'll conclude with a discussion on our financial outlook for the first quarter of 2023. Effective in the third quarter of 2022, the company reorganized its operating and internal reporting structure to better align with its primary market solutions.

謝謝你，泰德。正如我通常所做的那樣，我將在這部分電話會議中討論以下主題。我將概述我們 2022 年第四季度的業績，以及相關關鍵運營統計數據的概述。我將概述本季度的現金流量活動，最後討論我們 2023 年第一季度的財務前景。自 2022 年第三季度起，公司重組了其運營和內部報告結構以更好地與其主要市場解決方案保持一致。

As a result, I will comment separately regarding the revenues of our global S&BT, our Oracle Solutions Group, our SAP Solutions Group and the total company. Our global S&BT group includes the results of our North American international IP-as-a-Service offerings, our Research Advisory programs and benchmarking services, our OneStream offerings and our business transformation offerings. Our Oracle Solutions and our SAP Solutions segments include the results of our Oracle and SAP offerings, respectively. Please note that we will be referencing both total revenues and revenue before reimbursements in our discussion.

因此，我將分別評論我們全球 S&BT、我們的 Oracle 解決方案集團、我們的 SAP 解決方案集團和整個公司的收入。我們的全球 S&BT 集團包括我們北美國際 IP 即服務產品、我們的研究諮詢計劃和基準服務、我們的 OneStream 產品和我們的業務轉型產品的結果。我們的 Oracle 解決方案和我們的 SAP 解決方案部門分別包括我們的 Oracle 和 SAP 產品的結果。請注意，我們將在討論中參考總收入和報銷前收入。

Reimbursable expenses are primarily project travel-related expenses passed through to our clients that have no associated impact to our profitability. During our call today, we will also reference certain non-GAAP financial measures, which we believe provide useful information to investors. We've included reconciliations of GAAP to non-GAAP financial measures in our press release filed earlier today, and we'll post any additional information based on the discussion from this call on the Investor Relations page of the company's website.

可報銷費用主要是傳遞給我們客戶的與項目差旅相關的費用，這些費用對我們的盈利能力沒有相關影響。在我們今天的電話會議中，我們還將參考某些非 GAAP 財務指標，我們認為這些指標可為投資者提供有用的信息。我們在今天早些時候提交的新聞稿中包含了 GAAP 與非 GAAP 財務指標的對賬，我們將根據本次電話會議的討論在公司網站的投資者關係頁面上發布任何其他信息。

For the fourth quarter of 2022, our total revenues was $70.1 million. Our revenues before reimbursements were $68.8 million, which was above the high end of our quarterly guidance. The Q4 '22 reimbursable expense ratio on revenues before reimbursements was 1.9% as compared to 1.5% in the prior quarter and 0.7% when compared to the same period in the prior year. Post COVID, we've experienced increased client-related travel. However, given our transition to remote delivery model, we do not expect these project-related travel expenses to return to pre-COVID levels.

2022 年第四季度，我們的總收入為 7010 萬美元。我們報銷前的收入為 6880 萬美元，高於我們季度指導的上限。 22 年第四季度報銷前收入的可報銷費用率為 1.9%，上一季度為 1.5%，去年同期為 0.7%。發布 COVID 後，我們經歷了與客戶相關的旅行增加。然而，鑑於我們向遠程交付模式的過渡，我們預計這些與項目相關的差旅費用不會恢復到 COVID 之前的水平。

Total revenues from our global S&BT segment were $40.9 million. Revenues before reimbursements for our global S&BT segment were $40.4 million, an increase of 3.5% when compared to the same period in the prior year, but up 5% on a local currency basis, utilizing the same foreign currency rates in Q4 of 2021. Global S&BT revenue before reimbursements benefited from strong growth in our recurring Research Advisory and IPaaS programs, which grew annualized contract value over 20% for fiscal year of 2022. Total revenues from our Oracle Solutions Group were $17.2 million.

我們全球 S&BT 部門的總收入為 4090 萬美元。我們全球 S&BT 部門的報銷前收入為 4040 萬美元，與去年同期相比增長 3.5%，但按 2021 年第四季度相同的外幣匯率計算，按當地貨幣計算增長 5%。報銷前的 S&BT 收入得益於我們經常性研究諮詢和 IPaaS 計劃的強勁增長，這些計劃在 2022 財年的年化合同價值增長了 20% 以上。我們 Oracle 解決方案部門的總收入為 1720 萬美元。

Revenues before reimbursements for our Oracle Solutions segment were $16.7 million, a decrease of 12% when compared to the same period in the prior year as we continue to experience extended client decision-making during the quarter. Additionally, during the quarter, one of the large opportunities that was closed as we exited Q3 was canceled. The impact of that decision unfavorably impacted the fourth quarter by approximately $0.02 to $0.03. Total revenues from our SAP Solutions segment were $12.1 million. Revenues before reimbursements for our SAP Solutions segment were $11.7 million, essentially flat when compared to the same period in the prior year.

我們的 Oracle 解決方案部門的報銷前收入為 1670 萬美元，與去年同期相比下降了 12%，因為我們在本季度繼續經歷延長的客戶決策制定。此外，在本季度，在我們退出第三季度時關閉的一個大型機會被取消了。該決定的影響對第四季度產生了大約 0.02 美元至 0.03 美元的不利影響。 SAP 解決方案部門的總收入為 1210 萬美元。我們的 SAP 解決方案部門的報銷前收入為 1170 萬美元，與去年同期相比基本持平。

As we have stated previously, SAP Solutions coming off strong 2021 results and continues to rebuild the pipeline as to the completion of some large SAP engagements. SAP results also benefited from strong software sales activity during the fourth quarter of 2022. Approximately 24% of our total company revenues before reimbursements consist of recurring multiyear and subscription-based revenues, which includes our Research Advisory, IP-as-a-service, multiyear benchmarks and Application Managed Services contracts.

正如我們之前所說，SAP 解決方案在 2021 年取得了強勁的業績，並繼續重建管道以完成一些大型 SAP 業務。 SAP 的業績還受益於 2022 年第四季度強勁的軟件銷售活動。報銷前我們公司總收入的大約 24% 包括經常性多年收入和基於訂閱的收入，其中包括我們的研究諮詢、IP 即服務、多年基準和應用程序管理服務合同。

Total company adjusted cost of sales, which exclude reversible expenses and noncash stock-based compensation expense totaled $37.8 million or 54.9% of revenues before reimbursements in the fourth quarter of 2022, as compared to $40.8 million or 58.5% of revenues before reimbursements in the prior year. Total company consultant headcount was 1,120 at the end of the fourth quarter as compared to total company consultant headcount of 1,121 in the previous quarter and 1,106 at the end of the fourth quarter of the prior year.

公司調整後的銷售成本總額（不包括可逆費用和非現金股票補償費用）總計 3780 萬美元，佔 2022 年第四季度報銷前收入的 54.9%，而上一季度為 4080 萬美元，佔報銷前收入的 58.5%年。第四季度末公司顧問總人數為 1,120 人，而上一季度公司顧問總人數為 1,121 人，去年第四季度末為 1,106 人。

Total company adjusted gross margin on revenues before reimbursements, which excludes reimbursable expenses and noncash stock-based compensation expense was 45.1% in the fourth quarter of 2022 as compared to 41.5% in the prior year period. The 360 basis point gross margin improvement was primarily driven by the relative mix of higher-margin Global S&BT IPaaS and Research Advisory and Benchmark revenues as well as higher margin SAP software sales during the quarter.

2022 年第四季度，公司調整後的報銷前收入毛利率（不包括可報銷費用和非現金股票補償費用）為 45.1%，而去年同期為 41.5%。 360 個基點的毛利率提高主要是由於本季度利潤率較高的全球 S&BT IPaaS 和研究諮詢和基準收入的相對組合以及利潤率較高的 SAP 軟件銷售。

Adjusted SG&A, which excludes noncash stock-based compensation expense and intangible asset amortization expense was $14.9 million or 21.7% of revenues before reimbursements in the fourth quarter of 2022. This is compared to $14.4 million or 20.6% of revenues before reimbursements in the prior year period. Adjusted EBITDA was $16.9 million or 24.5% of revenues before reimbursements in the fourth quarter as compared to $15.4 million or 22% of revenues before reimbursements in the prior year.

調整後的 SG&A（不包括非現金股票補償費用和無形資產攤銷費用）為 1490 萬美元，佔 2022 年第四季度報銷前收入的 21.7%。相比之下，去年同期為 1440 萬美元，佔報銷前收入的 20.6%時期。調整後的 EBITDA 為 1690 萬美元，佔第四季度報銷前收入的 24.5%，而去年同期為 1540 萬美元，佔報銷前收入的 22%。

GAAP net income for the fourth quarter of 2022 totaled $9.7 million or diluted earnings per share of $0.31 for the fourth quarter of 2022 as compared to GAAP net income of $68.5 million or diluted earnings per share of $0.50 in the fourth quarter of the previous year. GAAP results for the fourth quarter of the previous year included a $7.7 million or $0.23 per diluted share tax benefit related to the exercise of $2.9 million outstanding share appreciation rights.

2022 年第四季度 GAAP 淨收入總計 970 萬美元或 2022 年第四季度攤薄後每股收益 0.31 美元，而去年第四季度 GAAP 淨收入為 6850 萬美元或攤薄後每股收益 0.50 美元。去年第四季度的 GAAP 業績包括與行使 290 萬美元的已發行股票增值權相關的 770 萬美元或每股攤薄後 0.23 美元的稅收優惠。

Adjusted net income, which excludes noncash stock-based compensation expense and intangible amortization for the fourth quarter of 2022 totaled $11.5 million or adjusted diluted net income per share of $0.36, which is above the high end of our earnings guidance range. This compares to adjusted net income of $18.4 million or adjusted diluted net income per common share of $0.56 in the fourth quarter of the prior year. Adjusted net income for the prior year, as already mentioned, included an effective tax benefit of $0.23 per diluted share due to the exercise of outstanding share appreciation rights.

不包括 2022 年第四季度非現金股票補償費用和無形攤銷的調整後淨收入總計 1150 萬美元或調整後每股攤薄淨收入 0.36 美元，高於我們的收益指導範圍的上限。相比之下，去年第四季度調整後的淨收入為 1840 萬美元，或調整後的每股普通股稀釋淨收入為 0.56 美元。如前所述，上一年度的調整後淨收入包括因行使未償還的股票增值權而產生的每股稀釋後每股 0.23 美元的有效稅收優惠。

In Q2 of this year, we moved to an actual GAAP effective tax rate for adjusted net income reporting purposes. For those of you reconciled to the prior year reported results, we reported adjusted diluted income per common share of $0.33, excluding this onetime tax benefit. The company's cash balances were $30.3 million at the end of the fourth quarter of 2022 as compared to $67 million at the end of the previous quarter. The sequential decrease in our cash balances was primarily driven by cash utilized in financing activities to fund our tender offer, which was completed in the fourth quarter of 2022.

今年第二季度，我們為了調整後的淨收入報告目的而採用實際 GAAP 有效稅率。對於那些與上一年報告的結果相一致的人，我們報告調整後的每股普通股攤薄收益為 0.33 美元，不包括這項一次性稅收優惠。截至 2022 年第四季度末，該公司的現金餘額為 3030 萬美元，而上一季度末為 6700 萬美元。我們現金餘額的環比減少主要是由於融資活動中使用的現金為我們的要約收購提供資金，該收購於 2022 年第四季度完成。

Net cash provided by operating activities in the quarter was $24.8 million, primarily driven by net income adjusted for noncash activity, decreases in accounts receivable and increases in accounts payable, accrued expenses and contract liabilities. Our DSO or day sales outstanding at the end of the quarter was 63 days as compared to 66 days at the end of the previous quarter. As Ted mentioned, we were pleased that during the fourth quarter of 2022, we were able to utilize our strong balance sheet and cash flow to return capital to our shareholders.

本季度經營活動提供的現金淨額為 2480 萬美元，主要受非現金活動調整後的淨收入、應收賬款減少以及應付賬款、應計費用和合同負債增加的推動。本季度末，我們的 DSO 或日銷售額為 63 天，而上一季度末為 66 天。正如泰德所說，我們很高興在 2022 年第四季度能夠利用我們強大的資產負債表和現金流向股東返還資本。

By partially leveraging our new credit facility, we completed our stock tender offer, which resulted in the purchase of 4.9 million shares of the company's stock at a price of $23.50 per share, excluding transaction-related fees. The tender offer was funded by borrowings on our credit facility of $60 million and approximately $56 million in cash, inclusive of transaction-related fees for a total of approximately $116 million. Our remaining stock repurchase authorization at the end of the quarter was $14.7 million.

通過部分利用我們的新信貸額度，我們完成了股票要約收購，結果以每股 23.50 美元的價格（不包括交易相關費用）購買了 490 萬股公司股票。要約收購的資金來自我們的 6000 萬美元信貸額度借款和約 5600 萬美元現金，包括總計約 1.16 億美元的交易相關費用。我們在本季度末剩餘的股票回購授權為 1,470 萬美元。

Subsequent to the quarter -- to the end of the quarter, the company's Board of Directors declared the first quarterly dividend of $0.11 per common share for its shareholders of record on March 24, 2023, to be paid on April 7, 2023. Before I move to guidance for the first quarter, I'd like to remind everyone of the seasonality of our business relative to costs as we move sequentially from Q4 to Q1. Specifically, consistent with the first quarter guidance provided in previous years, our first quarter guidance for 2023 will reflect the sequential increase in U.S. payroll-related taxes and the sequential buildup of our vacation accruals.

在本季度之後——到本季度末，公司董事會宣布其於 2023 年 3 月 24 日登記在冊的股東的第一季度股息為每股普通股 0.11 美元，將於 2023 年 4 月 7 日支付。在我之前轉向第一季度的指導，我想提醒大家注意我們業務相對於成本的季節性，因為我們從第四季度依次轉移到第一季度。具體而言，與往年提供的第一季度指引一致，我們對 2023 年第一季度的指引將反映美國工資相關稅收的連續增長和假期應計費用的連續增加。

The company estimates total revenue before reimbursements for the first quarter of 2023 to be in the range of $69 million to $70.5 million. We expect global S&BT and SAP solutions revenue before reimbursements to be flat to up on a year-over-year basis, but we expect Oracle Solutions to be down over 20% on a year-over-year basis, primarily due to the loss of a large client in the fourth quarter and due to unfavorable macroeconomic conditions. We estimate adjusted diluted net income per common share in the first quarter of 2023 to be in the range of $0.35 to $0.38, which assumes an effective tax rate on adjusted earnings in the first quarter of 22%.

該公司估計 2023 年第一季度報銷前的總收入在 6900 萬美元至 7050 萬美元之間。我們預計報銷前的全球 S&BT 和 SAP 解決方案收入同比持平或上升，但我們預計 Oracle 解決方案同比下降超過 20%，這主要是由於損失第四季度的一個大客戶，由於不利的宏觀經濟條件。我們估計 2023 年第一季度調整後的每股普通股攤薄淨收入在 0.35 美元至 0.38 美元之間，假設第一季度調整後收益的有效稅率為 22%。

As Ted mentioned, the first quarter of 2023 will reflect the incremental investment we are making in program development and add the dedicated sales resources for benchmarking, IPaaS, Executive Advisory Market Intelligence and our other IP service offerings. These incremental costs are expected to impact our diluted net income per common share by approximately $0.03 on a year-over-year basis. We expect adjusted gross margin and revenues before reimbursements to be approximately 40% to 41%. We expect SG&A and interest expense for the first quarter to be approximately $15.7 million.

正如 Ted 所提到的，2023 年第一季度將反映我們在項目開發方面的增量投資，並增加用於基準測試、IPaaS、執行諮詢市場情報和我們其他 IP 服務產品的專用銷售資源。預計這些增量成本將對我們攤薄後的每股普通股淨收入產生約 0.03 美元的同比影響。我們預計調整後的毛利率和報銷前收入約為 40% 至 41%。我們預計第一季度的 SG&A 和利息費用約為 1570 萬美元。

We expect first quarter adjusted EBITDA on revenues before reimbursements to be in the range of approximately 20% to 22%. Lastly, we expect our cash balances, excluding of any buyback activity to be tempered due to the payment of 2022 performance-related bonuses and the payment of employee income tax withholding triggered by net vesting of restricted shares.

我們預計第一季度調整後的 EBITDA 報銷前收入將在大約 20% 至 22% 的範圍內。最後，我們預計我們的現金餘額（不包括任何回購活動）會因支付 2022 年績效相關獎金和支付限制性股票淨歸屬觸發的員工所得稅預扣稅而有所下降。

At this point, I'd like to turn it back over to Ted to review our market outlook and strategic priorities for the coming months.

在這一點上，我想把它轉回給泰德來回顧我們未來幾個月的市場前景和戰略重點。

Thank you, Rob. As we look forward, let me share our thoughts on the near and long-term demand environment and on the growth opportunity it offers our organization. The demand for digital transformation may be impacted by economic headwinds in 2023, but it continues to be a clear strategic priority. Digital innovation and enterprise cloud applications, analytics and artificial intelligence, cloud infrastructure and workflow automation are dramatically influencing the way businesses compete and deliver their services.

謝謝你，羅布。展望未來，讓我分享一下我們對近期和長期需求環境以及它為我們的組織提供的增長機會的看法。數字化轉型的需求可能會在 2023 年受到經濟逆風的影響，但這仍然是一個明確的戰略重點。數字創新和企業雲應用程序、分析和人工智能、雲基礎設施和工作流自動化正在極大地影響企業競爭和提供服務的方式。

Digital transformation is redefining all activities at an accelerated pace, forcing organizations to fundamentally change and adopt these new capabilities to remain competitive. With that said, digital transformation is being impacted by extended decision-making as organizations assess competing priorities created by the increasing rates and the demand disruption, which it is intended to affect. As I mentioned in my opening comments, during the quarter, we experienced a disruption of a meaningful Oracle project as we exited the third quarter.

數字化轉型正在加速重新定義所有活動，迫使組織從根本上改變並採用這些新功能以保持競爭力。話雖如此，數字化轉型正在受到擴展決策的影響，因為組織正在評估因利率上升和需求中斷而產生的競爭優先事項，而這正是它旨在影響的。正如我在開場白中提到的那樣，在本季度，我們在第三季度結束時經歷了一個有意義的 Oracle 項目的中斷。

We also continue to notice clients reassessing their spending priorities, so volatility has increased. However, we also saw other large projects go forward and expand. We believe clients used the year-end planning process to reassess their market risk, make headcount and spend reductions and rebalance their spending with productivity and strategic cost reduction efforts, which are also core to our offerings. We believe that clients will become more comfortable with the headwinds they are experiencing, and we will see behavior improve throughout the year.

我們還繼續注意到客戶重新評估他們的支出優先級，因此波動性有所增加。但是，我們也看到了其他大型項目的推進和擴展。我們相信客戶利用年終規劃流程重新評估他們的市場風險、裁員和削減支出，並通過生產力和戰略成本削減努力重新平衡他們的支出，這也是我們產品的核心。我們相信，客戶會更加適應他們正在經歷的逆風，並且我們會看到全年的行為有所改善。

Similar to us, many of our clients did not experience the demand disruption until late in Q2 of last year and will be more challenged by the strong year-over-year comps of the first half of the year, but most will face more favorable comps in the second half of the year. If we are correct, this will further support the behavior improvement we expect from the first half to the second half of the year. On the talent side, competition for experienced executives continues, but we saw turnover moderate during the quarter and expect that trend to also continue.

與我們類似，我們的許多客戶直到去年第二季度末才經歷需求中斷，並且將受到今年上半年強勁的同比競爭的更大挑戰，但大多數將面臨更有利的競爭在下半年。如果我們是正確的，這將進一步支持我們預期從上半年到下半年的行為改善。在人才方面，對經驗豐富的高管的競爭仍在繼續，但我們看到本季度人員流動率有所下降，預計這一趨勢也將繼續。

Long term, we have transitioned to a hybrid sales and delivery model, which provides us with effective access to our clients and their respective teams. This hybrid model provides us -- provides our associates with greater personal flexibility to perform their defined responsibilities remotely, which is very valuable to them. This should allow us to attract and retain talent that we have struggled to retain in the past because of the demanding historical travel requirements of our industry.

從長遠來看，我們已經過渡到混合銷售和交付模式，這使我們能夠有效地接觸客戶及其各自的團隊。這種混合模式為我們提供了 - 為我們的員工提供了更大的個人靈活性，可以遠程執行他們定義的職責，這對他們來說非常有價值。這將使我們能夠吸引和留住過去由於我們行業苛刻的差旅要求而難以留住的人才。

Strategically, we are accelerating our focus on recruiting high-margin IP-related services -- I'm sorry, focus on recurring high-margin IP-related services by increasing the program development and sales and marketing resources dedicated to this area. Additionally, as I've mentioned, we have continued our investments on our new Hackett Connect member platform, which we plan to launch over the next several months. As I previously mentioned, we have launched a series of new market intelligence programs that we'll assess and highlight the unique capabilities of software and service providers across selected categories.

從戰略上講，我們正在加速專注於招募高利潤 IP 相關服務——對不起，通過增加專用於該領域的程序開發和銷售和營銷資源，專注於經常性高利潤 IP 相關服務。此外，正如我所提到的，我們繼續投資於我們計劃在未來幾個月推出的新 Hackett Connect 會員平台。正如我之前提到的，我們已經啟動了一系列新的市場情報計劃，我們將評估並突出選定類別中軟件和服務提供商的獨特能力。

We are absorbing these increased costs, which approximate $0.03 in our Q1 guidance, but we believe they will result in incremental high-margin recurring revenues, which are very important to our long-term value creation strategy. It is also important to note that we continue to see increasing downstream revenues from our Benchmarking and Research Advisory clients to our business transformation and technology consulting services. This halo effect has been in excess of 40% over the last several years.

我們正在吸收這些增加的成本，在我們的第一季度指導中約為 0.03 美元，但我們相信它們將帶來增加的高利潤經常性收入，這對我們的長期價值創造戰略非常重要。同樣重要的是要注意，我們繼續看到從我們的基準和研究諮詢客戶到我們的業務轉型和技術諮詢服務的下游收入不斷增加。在過去幾年中，這種光環效應已超過 40%。

Simply put, organizations who rely on our IP, research and benchmarking services are also more likely to utilize our consulting services. We are also exploring strategic partnerships that will allow us to syndicate our IP through new channels that will allow us to reach beyond our current Global 1000 focus in a very efficient manner. We signed the first of these agreements and expect our new partner to announce and launch the syndication of our IP and content started on April 1. Similar to our other licensing efforts, we expect new recurring high-margin revenue to slowly build from this relationship as new markets and segments are offered our IP.

簡而言之，依賴我們的知識產權、研究和基準測試服務的組織也更有可能利用我們的諮詢服務。我們還在探索戰略合作夥伴關係，這將使我們能夠通過新渠道聯合我們的知識產權，從而使我們能夠以非常有效的方式超越目前的全球 1000 強。我們簽署了這些協議中的第一份，並期望我們的新合作夥伴宣布並啟動我們的 IP 和內容的聯合組織，從 4 月 1 日開始。與我們的其他許可工作類似，我們預計新的經常性高利潤收入將從這種關係中慢慢建立，因為新的市場和細分市場提供了我們的知識產權。

We also continue to redefine our global benchmarking leadership through enhancements in Quantum Leap, our Digital Benchmarking Software-as-a-Service solution, along with our digital transformation platform, these platforms allow us to deliver more information with significantly less effort -- it also allows our clients to leverage our IP to create compelling benefit case assessments, accelerate process flow and software configuration decisions and track the value realization of transformation initiatives over the life of their respective effort.

我們還通過增強我們的數字基準軟件即服務解決方案 Quantum Leap 以及我們的數字轉換平台，繼續重新定義我們的全球基準測試領導地位，這些平台使我們能夠以更少的努力提供更多信息——它還允許我們的客戶利用我們的 IP 來創建令人信服的收益案例評估，加速流程和軟件配置決策，並在他們各自努力的生命週期內跟踪轉型計劃的價值實現。

As I have repeated over the last several quarters, we believe there are no comparable IP-led platforms in the market. As I have mentioned on previous calls, we have added a 20-minute demo to our Investor Relations page of our website so that investors can become more familiar with these capabilities with the capabilities of our platforms. We will be updating our demo with our newly launched Hackett platform in the next few months.

正如我在過去幾個季度重複的那樣，我們認為市場上沒有可比的以 IP 為主導的平台。正如我在之前的電話會議中提到的那樣，我們在我們網站的投資者關係頁面上添加了一個 20 分鐘的演示，以便投資者可以通過我們平台的功能更加熟悉這些功能。在接下來的幾個月裡，我們將使用我們新推出的 Hackett 平台更新我們的演示。

Lastly, even though we believe that we have a client base and the offerings to grow our business, we continue to look for acquisitions and alliances that strategically leverage our IP and add scope, scale or capability, which can accelerate our growth. As always, let me close by congratulating our [researchers] on our performance and by thanking them for their tireless efforts and always urge them to stay highly focused on our clients and our people no matter what challenges we may encounter.

最後，儘管我們相信我們有客戶群和產品來發展我們的業務，但我們繼續尋找收購和聯盟，以戰略性地利用我們的知識產權並增加範圍、規模或能力，從而加速我們的增長。與往常一樣，讓我在結束時祝賀我們的 [研究人員] 的表現，感謝他們的不懈努力，並始終敦促他們無論我們遇到什麼挑戰，都要高度關注我們的客戶和我們的員工。

Those conclude my comments. Let me turn it over to our operator and let's move on to the Q&A section of our call. Operator?

以上就是我的評論。讓我把它交給我們的接線員，讓我們繼續通話的問答部分。操作員？

Thank you. (Operator Instructions) Our first question is from George Sutton with Craig-Hallum.

謝謝。 （操作員說明）我們的第一個問題來自 George Sutton 和 Craig-Hallum。

Ted, I wonder if you could go into a little more detail on the thought process of the clients becoming more comfortable with the headwinds that they face. It sounds like you're anticipating you'll get back to sales growth in Q4 and beyond. I just want to kind of walk from Q1 and what we're looking at through the rest of the year and kind of how you see that all playing out?

特德，我想知道你是否可以更詳細地介紹客戶對他們所面臨的不利因素變得更加自在的思維過程。聽起來您預計您將在第四季度及以後恢復銷售增長。我只想從 Q1 開始，看看我們在今年餘下的時間裡會看到什麼，以及你如何看待這一切？

Well, first of all, the Q4 reference is only specific to Oracle, which will be down on a year-over-year basis. We now expect them through Q3, level off in Q3 and then return to growth in Q4. As you recall, for Oracle and SAP, we thought that would happen in Q2 of 2023. We've done that. We've achieved that with SAP, but Oracle hit a pretty nice speed bump with that client loss in the fourth quarter, which we obviously didn't anticipate at the time. With that said, look, we've got two very strong quarters ahead. Q1 and Q2, as you know, were record quarters for us, and we exceeded guidance by $0.03 in both quarters.

好吧，首先，第四季度的參考僅針對甲骨文，它將同比下降。我們現在預計他們將在第三季度結束，在第三季度趨於平穩，然後在第四季度恢復增長。您還記得，對於 Oracle 和 SAP，我們認為這將在 2023 年第二季度發生。我們已經做到了。我們已經通過 SAP 實現了這一點，但甲骨文在第四季度的客戶流失方面遇到了一個相當不錯的減速帶，這顯然是我們當時沒有預料到的。話雖如此，看，我們有兩個非常強勁的季度。如您所知，第一季度和第二季度對我們來說是創紀錄的季度，我們在兩個季度都超出了 0.03 美元的指導。

We were clearly experiencing demand improvement in that first half of '23 that we have not experienced before. Obviously, that trended down in the last two quarters of 2023. And as I mentioned, it wasn't just us because we're really reacting to what our very large clients experience, and we started feeling those -- that second guessing towards the end of the second quarter of last year. So what did we see? Look, we saw that volatility like sneak show up for the first time in late Q2. We saw it impacted Q3 in clients' behavior, but it was really more limited.

在 23 年上半年，我們顯然經歷了前所未有的需求改善。顯然，這在 2023 年的最後兩個季度呈下降趨勢。正如我所提到的，不僅僅是我們，因為我們真的在對我們非常大的客戶的體驗做出反應，我們開始感受到這些——第二次猜測去年第二季度末。那麼我們看到了什麼？看，我們看到像潛行這樣的波動在第二季度末首次出現。我們看到它對客戶行為的第三季度產生了影響，但實際上更為有限。

As we got into Q4, we saw clients clearly starting to do planning that was unlike what many of them have experienced in the past. You've seen many of the large companies, especially on the tech side deal with some pretty aggressive headcount cuts. We think all of those decisions we think were pretty carefully considered as clients went into Q4, did their annual planning and then started launching all of their planned initiatives in the beginning of the quarter. So we see that activity for us increase from the beginning of Q1 towards the second -- into the second quarter.

當我們進入第四季度時，我們清楚地看到客戶開始進行規劃，這與他們中的許多人過去所經歷的不同。你已經看到許多大公司，尤其是技術方面的大公司都在進行一些相當激進的裁員。我們認為，當客戶進入第四季度時，我們認為我們認為的所有這些決定都經過了非常仔細的考慮，制定了他們的年度計劃，然後在本季度初開始啟動他們計劃的所有舉措。因此，我們看到我們的活動從第一季度開始增加到第二季度 - 進入第二季度。

We think clients, again, are launching these initiatives and unless they are disrupted further, which remains to be seen. But if it's as expected, whether or not our rates are increased, whether it's one more time or now as many as two or three times this recent year, as was mentioned today, and it impacted the market. But unless demand is not disrupted further we do expect both the activity and behavior of clients to improve from Q1 to Q2.

我們認為，客戶再次啟動了這些舉措，除非它們受到進一步干擾，這還有待觀察。但如果如預期的那樣，無論我們的利率是否增加，無論是今年增加一次還是現在多達兩到三倍，就像今天提到的那樣，它對市場產生了影響。但除非需求沒有進一步中斷，否則我們確實預計客戶的活動和行為從第一季度到第二季度都會有所改善。

And then we also expect it to improve into Q3 into Q4, both because many of them dealt with many of their, I'll call it, softness as they exited Q4 and are trying to deal with that in Q1. And because clearly, most of them will see favorable comps in Q3 and Q4 versus the Q1 and Q2. So it's the combination of both what comps they're facing, how aggressively they dealt with what they believe was rightsizing or resetting spending priorities, George, that I believe much of it has taken place. So should it be modified or will it be modified, of course, it always is.

然後我們還預計它會在第三季度到第四季度有所改善，這都是因為他們中的許多人在退出第四季度並試圖在第一季度處理這些問題時處理了他們的許多問題，我稱之為軟性。而且因為很明顯，與第一季度和第二季度相比，他們中的大多數人將在第三季度和第四季度看到有利的競爭。因此，喬治，這是他們面臨的補償，他們處理他們認為合理調整或重置支出優先事項的積極程度的結合，我相信其中大部分已經發生。那麼到底該不該修改，要不要修改，當然，一直都是。

But I believe '23 sets up more like the inverse of '22, which is a tougher first half of '23 because of both comps and the decisions that many of the companies made to reset spending priorities as they exited '22 and then improved behavior as they go into more favorable comps in the second half of the year. And if they missed any of their, if you want to call it, cost reduction or resetting efforts with their Q4 effort that they will have dealt with that no later than the end of Q1. So all of that leads us to believe that sales and revenue activity and pipeline velocity will improve from the first half to the second half.

但我相信 23 年的設置更像是 22 年的倒數，這是 23 年上半年更加艱難的原因，因為許多公司在退出 22 年時做出了重新設置支出優先級的決定，然後改善了行為因為他們在今年下半年進入更有利的競爭。如果他們錯過了第四季度的成本削減或重置工作，如果你想稱之為，他們將在第一季度末處理這些工作。因此，所有這些都讓我們相信，銷售和收入活動以及管道速度將從上半年到下半年有所改善。

One other question, if I could, this incremental investment that will cost $0.03 in the first quarter. Can you just give us a little more detail in terms of what these investments are in terms of people, in terms of content, etc?

還有一個問題，如果可以的話，這項增量投資將在第一季度花費 0.03 美元。您能否就這些投資在人員、內容等方面向我們提供更多細節？

Well, the single largest expenditure is that we're trying to aggressively increase the sales headcount in our IP-related businesses. We started to do that, let's call it, in the second quarter of last year, accelerated that into the third and fourth. And we've continued to increase it into Q1. We have no plans to, I'll call that, turn that off. I think we're trying to be smart in the way we ramp up the resources and the kind of effectiveness that we expect. So we've got all of those, if you want to call it, governors in place to make sure that we're not throwing away or overspending what we shouldn't.

好吧，最大的一筆支出是我們正試圖積極增加知識產權相關業務的銷售人數。我們開始這樣做，讓我們稱之為，在去年第二季度，加速進入第三和第四季度。我們繼續將其增加到第一季度。我們沒有計劃，我會稱之為，關閉它。我認為我們正在努力以聰明的方式增加資源和我們期望的效率。所以我們已經有了所有這些，如果你想稱之為州長，以確保我們不會扔掉或超支我們不應該的東西。

But look, the prospects for us to continue to grow our Research Advisory IPaaS offerings and new market intelligence programs is significant. We think that the biggest thing that we lack is a world-class sales group. We're adding both senior and entry and mid-level people to our team. We'll continue to do that throughout the year. We have improved the existing executive adviser, which are the functionally focused programs that we've had previously in place, added one in 2022, added content and tiers as we enter 2023 to that group.

但是看，我們繼續發展我們的研究諮詢 IPaaS 產品和新的市場情報計劃的前景非常重要。我們認為我們最缺乏的是世界級的銷售團隊。我們正在為我們的團隊增加高級、入門級和中級人員。我們將在全年繼續這樣做。我們改進了現有的執行顧問，這是我們之前實施的以功能為重點的計劃，在 2022 年增加了一個，並在我們進入 2023 年時向該組添加了內容和層級。

We've launched two of the market intelligence programs. We expect to add others throughout all of '23, and we would expect all of that activity to result in what we believe we want to maintain a pretty high level of growth in that group and the annual contract value to come to that group. We think that, that significantly changes the valuation, I'll call it, the valuation opportunities for Hackett.

我們已經啟動了兩個市場情報計劃。我們希望在整個 23 年增加其他人，我們希望所有這些活動都能產生我們認為我們希望保持該組相當高水平的增長以及該組的年度合同價值。我們認為，這顯著改變了估值，我稱之為 Hackett 的估值機會。

But it also, as we've seen, the halo effect from that improved client -- that increasing client base since it's been so productive downstream primarily to the Business Transformation Group, but it also has extended into the technology side as well. We hope we can have our cake and eat it too. And that is to drive that growth. It comes, obviously, at higher margins. It comes on a recurring basis and then see if we can then harvest and get the kind of halo effect we've gotten historically over the last several years from that client base, but do that at an increasing basis as we add more clients.

但正如我們所看到的，它也來自那個改進的客戶的光環效應——增加的客戶群，因為它在下游主要是業務轉型小組的生產力如此之高，但它也擴展到了技術方面。我們希望我們能吃到我們的蛋糕。那就是推動這種增長。顯然，它的利潤率更高。它會定期出現，然後看看我們是否可以收穫並獲得我們在過去幾年中從該客戶群中獲得的那種光環效應，但隨著我們增加更多客戶，這種效果會越來越多。

And then just to kind of complete the IP, I'll call it, revenue growth investments, look, in order for us to syndicate our IP to this new partner that we'll launch, we'll syndicate -- we'll start the syndication of some of our IP in April. That's taken time and effort, but we believe these are all things that allow us to become a really valuable IP-led, Research Advisory into strategic consulting organization, and that's what we intend to prove.

然後只是為了完成 IP，我稱之為收入增長投資，看，為了讓我們將我們的 IP 聯合到我們將推出的這個新合作夥伴，我們將聯合——我們將開始4 月份聯合發布了我們的一些 IP。這需要時間和精力，但我們相信這些都是讓我們成為一個真正有價值的以知識產權為主導的研究諮詢戰略諮詢組織的東西，而這正是我們打算證明的。

Thank you. (Operator Instructions) Our next question is from Jeff Martin with ROTH MKM.

謝謝。 （操作員說明）我們的下一個問題來自 Jeff Martin 和 ROTH MKM。

Ted, and Rob, hope you're doing well. Ted, I wanted to get a sense for progression on the IP-as-a-Service pilots. I know in the past, converting pilots to contracts has been a matter of holding the line and sticking to your guns in terms of what you think the value creation is to Hackett -- that Hackett brings to the table. Just was curious if you've made progress that you are sufficiently satisfied with or that continues to be kind of a to-be-determined situation?

泰德和羅布，希望你們一切順利。特德，我想了解 IP 即服務試點的進展情況。我知道，在過去，將飛行員轉為合同一直是堅守陣地，堅持你認為哈克特創造價值的東西——哈克特把它帶到了談判桌上。只是很好奇您是否取得了足夠滿意的進展，或者仍然是一種待定的情況？

Well, the answer is yes. First, the success of our existing programs, I believe, is becoming increasingly noticeable. The focus with software and service providers to find a way to provide a compelling way to sell and demonstrate the value realization that people can get by purchasing their software and services has become -- seems to be becoming more important to the software providers. What we learned from the process we went through in, if you want to call it, '21 and second half of '22.

嗯，答案是肯定的。首先，我認為，我們現有計劃的成功正變得越來越引人注目。軟件和服務提供商的重點是找到一種方法來提供一種令人信服的銷售方式，並展示人們可以通過購買他們的軟件和服務獲得的價值實現——這對軟件提供商來說似乎變得越來越重要。我們從我們經歷的過程中學到了什麼，如果你想稱之為，'21 和'22 的下半年。

One, we needed to make sure that our platforms were commercially ready, and we've done that, I mean, just very, very well. We also wanted to make sure that we did not do any pilots that were not being paid. So the activity that we've got today as people evaluate scope capability of our offering to them is on a paid basis. So we think we're creating the right cadence, which is to expose companies to our capabilities, allow them to see how best they can leverage and understand the power. And yes, we hope that those pilots that we have launched, some of them will turn into meaningful large multiyear agreements like the ones we have in place already.

第一，我們需要確保我們的平台已經做好商業準備，而且我們已經做到了，我的意思是，做得非常非常好。我們還想確保我們沒有做任何沒有報酬的飛行員。因此，當人們評估我們向他們提供的產品的範圍能力時，我們今天開展的活動是有償的。所以我們認為我們正在創造正確的節奏，讓公司了解我們的能力，讓他們看到他們如何最好地利用和理解力量。是的，我們希望我們已經啟動的那些試點，其中一些將變成有意義的大型多年期協議，就像我們已經制定的協議一樣。

Okay. And then I wanted to clarify on the third quarter call, there was a discussion regarding a large transportation company impacting EPS by about $0.02 in both the third and fourth quarter. I wanted to clarify that's separate from the digital transformation project that was canceled and that was supposed to start in Q4. Is that correct?

好的。然後我想在第三季度的電話會議上澄清一下，有人討論了一家大型運輸公司在第三季度和第四季度對 EPS 的影響約為 0.02 美元。我想澄清一下，這與被取消的數字化轉型項目是分開的，該項目應該在第四季度開始。那是對的嗎？

Yes. These were two by fours we took to the head. One in the third quarter with a very good and existing client of ours, but we're -- an opportunity we lost an opportunity given their priorities and their focus, we didn't lose the client, separate apart from that and that did have an Oracle component, but it also had a business transformation component. The other was a brand new sale. If you recall, last quarter, I mentioned the fact that as we exited the quarter, we sold several large deals.

是的。這些是我們帶到頭上的兩個四個。一個在第三季度與我們的一個非常好的現有客戶，但我們 - 一個機會，我們失去了一個機會，因為他們的優先事項和他們的重點，我們沒有失去客戶，除此之外，確實有一個 Oracle 組件，但它也有一個業務轉換組件。另一個是全新的銷售。如果你還記得，上個季度，我提到了一個事實，即當我們退出這個季度時，我們賣出了幾筆大宗交易。

So we were going into Q4 with a significant amount of momentum into Q4, which would also carry into Q1. And the group that was most impacted by those large transactions was the Oracle Group, again, even though there was a business transformation piece to the first one on not necessarily the second one. And that just as we said, new CIO came in, decided he wanted to make a change. They paid us for the work we had done to-date, but it impacted some of the revenue we would have recognized in Q4. It clearly impacts Q1 in a very meaningful way.

因此，我們進入第四季度時勢頭強勁，進入第四季度，這也將帶入第一季度。受這些大型交易影響最大的集團再次是甲骨文集團，儘管第一個不一定是第二個有業務轉型部分。正如我們所說，新的 CIO 進來了，他決定做出改變。他們為我們迄今為止所做的工作支付了報酬，但這影響了我們本應在第四季度確認的部分收入。它顯然以一種非常有意義的方式影響了第一季度。

So those were setbacks, but they were separate and distinct. In fact, I -- as we shared with the Board, it would have been wonderful to see what 2022 and the beginning of '23 would look like if we had those setbacks. But look, they happen. Client circumstances change. Sometimes relationships change, and they can impact the work that you're doing. And we have the ability to absorb those and continue to increase profitability and cash flow of the business. And we'll have a chance to demonstrate that over the next few quarters.

所以這些都是挫折，但它們是獨立且截然不同的。事實上，正如我們與董事會分享的那樣，如果我們遇到這些挫折，很高興看到 2022 年和 23 年初的情況。但是看，它們發生了。客戶情況發生變化。有時關係會發生變化，它們會影響您正在做的工作。我們有能力吸收這些並繼續增加業務的盈利能力和現金流。我們將有機會在接下來的幾個季度中證明這一點。

Okay. Great. And then one more, if I could. On the Hackett Acceleration Matrix launch pending in a couple of months here, what all does that launch entail? And how should we think about the contribution over the medium and long term from that initiative?

好的。偉大的。然後再來一個，如果可以的話。關於幾個月後待定的 Hackett Acceleration Matrix 發布，該發布需要什麼？我們應該如何考慮該倡議的中長期貢獻？

First, there's been some learning as we come through the first -- the first few programs that we're launching. So the fact is that you will see them -- the first one publicized pretty soon with the results. Second one is well underway. In fact, the third one has already -- already has a group of participants in place, and we will continue to try to add them throughout 2023. But if we can get -- let's call it, four or five fully launched, meaning not just launched actively pursuing participants, but having the results out and allowing us to market them to our end user base as well as the participants because we have the ability to do both the market, the both.

首先，我們在完成第一個項目時學到了一些東西——我們正在啟動的前幾個項目。所以事實是你會看到它們——第一個很快就會公佈結果。第二個正在進行中。事實上，第三個已經 - 已經有一組參與者，我們將在整個 2023 年繼續嘗試增加他們。但如果我們能夠 - 讓我們稱之為，四五個完全啟動，意思是不剛剛推出積極追求參與者，但得到結果並允許我們將它們推銷給我們的最終用戶群以及參與者，因為我們有能力同時做市場，兩者兼而有之。

If we have an opportunity to do that even though they're in different levels by the beginning of the first year, we just start seeing revenue from those programs accrue in the third and the fourth quarter. In the meantime, Jeff, it's very important to note that as we're adding all of these sales resources to the team -- they have the ability to sell both the existing executive advisory programs, which, as I said, we expanded in '22 and added some additional features and Tiers 2 as well as the new market intelligence programs.

如果我們有機會這樣做，即使他們在第一年年初處於不同的水平，我們也會開始看到這些項目的收入在第三和第四季度累積。與此同時，Jeff，非常重要的是要注意，當我們將所有這些銷售資源添加到團隊中時——他們有能力銷售現有的執行諮詢計劃，正如我所說，我們在 ' 22 並添加了一些附加功能和第 2 層以及新的市場情報程序。

And they will also be incented to identify other benchmarking or IPaaS opportunities, even though the primary focus of the large sales force build is around recurring revenue, annualized contract value programs. We've separated -- we've decided we want to have a dedicated group for that as well as making additional investments for the nonrecurring pieces, which could be, for example, in a transformational benchmark. So -- but we're making -- we're clearly accelerating the investments in that group. And you'll see some announcements soon as to some of the people that we're bringing on board in that group.

他們還將被激勵去尋找其他基準測試或 IPaaS 機會，儘管大型銷售隊伍建設的主要重點是圍繞經常性收入、年度化合同價值計劃。我們已經分開 - 我們已經決定我們希望為此設立一個專門的小組，並為非經常性部分進行額外投資，例如，在轉型基準中。所以——但我們正在做——我們顯然正在加速對該集團的投資。你很快就會看到一些關於我們在該小組中加入的一些人的公告。

Great. Very helpful and look forward to following the progress there.

偉大的。非常有幫助，並期待著關注那裡的進展。

The next question is from Vince Colicchio with Barrington Research.

下一個問題來自 Barrington Research 的 Vince Colicchio。

Yes. Ted, if I'm correct, I think your market intelligence program rollout was slower than anticipated. Is that a resource issue or was there any particular challenge?

是的。特德，如果我是對的，我認為你的市場情報計劃推出比預期的要慢。這是資源問題還是有任何特殊挑戰？

Well, it's both. We've been adding resources to that product development group, but we were also recruiting participants in getting the feedback from those first initial programs. And yes, there was a little learning and improvement that happened as part of that, but we think it's resulting in an exceptional product.

好吧，兩者都是。我們一直在為該產品開發團隊增加資源，但我們也在招募參與者以從最初的初始項目中獲得反饋。是的，作為其中的一部分發生了一些學習和改進，但我們認為它產生了一個特殊的產品。

Per your comments on clients have reset their expectations for spending and just curious, you're not expecting growth in Oracle in the first half -- first three quarters. Just curious, do you think cancellations and maybe delays are behind us or is it just so tough to predict right now?

根據你對客戶的評論，他們已經重新設定了他們對支出的預期，只是好奇，你預計甲骨文在上半年 - 前三個季度不會增長。只是好奇，您是否認為取消和延誤已經過去了，還是現在很難預測？

I mean you never really know. But I would say that the events we've faced are clearly rare to us. I mean do things happen, things clients again change priorities have to reset, of course. My sense is that clients had a really good chance to look and rightsize and reset priorities in their 2023 planning process. And you're seeing it as they all announced and reset expectations for their earnings, which has included reductions and reprioritization of initiatives across all industries.

我的意思是你永遠不會真正知道。但我要說的是，我們所面臨的事件對我們來說顯然是罕見的。我的意思是，如果事情發生了，客戶再次改變優先級的事情當然必須重新設置。我的感覺是，客戶有很好的機會在 2023 年的規劃過程中審視、調整和重新設定優先事項。當他們都宣布並重新設定他們的收入預期時，你會看到它，其中包括減少所有行業的舉措並重新確定其優先級。

We've seen it, and we'll continue to see it as people report and move into the beginning of the year. But so when I think that, that process was as thoughtful that they had a pretty good feel for what the second half of '22 brought on and what they needed to pursue in 2023 when the market was being so clear and penalizing those who were not resetting and rightsizing on a timely basis. We think that it's been a pretty good shakeout in that we will see clients accelerate their spend throughout Q1 and into Q2, and it will improve in the second half of the year.

我們已經看到了，隨著人們的報告和進入年初，我們將繼續看到它。但是，當我想到這一點時，這個過程是深思熟慮的，以至於他們對 22 年下半年帶來的結果以及他們在 2023 年市場如此清晰並懲罰那些不清晰的人時需要追求的東西有很好的感覺及時重置和調整規模。我們認為這是一次非常好的洗牌，因為我們將看到客戶在整個第一季度和第二季度加速支出，並將在下半年有所改善。

That's what we believe interest rate increases may disrupt and demand a little bit more. But look, as the market also continues to say, lion's share of those interest rate increases are in place. We know the demand disruption that it's created. It's allowed people, I think, to try to plan for 2023 properly, those who, I think, those -- I just can't imagine many that have deferred decisions as they've reported Q4 and guided Q1 and spoken to their employees.

這就是我們認為加息可能會擾亂和需求更多一點的原因。但是看，正如市場繼續說的那樣，這些加息中的大部分已經到位。我們知道它造成的需求中斷。我認為，它允許人們嘗試為 2023 年做出適當的計劃，我認為，那些——我無法想像有多少人在報告第四季度和指導第一季度並與員工交談時推遲了決定。

Thank you. And at this time, I show no further questions. I will turn the call back over to Mr. Fernandez.

謝謝。此時，我沒有進一步提問。我會把電話轉回費爾南德斯先生。

Thank you, operator. And let me thank everyone for participating in our fourth quarter earnings call and look forward to updating you again when we report the first quarter.

謝謝你，運營商。感謝大家參加我們第四季度的財報電話會議，並期待在我們報告第一季度時再次為您更新。

And that does conclude today's conference. Thank you all for participating. You may disconnect at this time.

今天的會議到此結束。謝謝大家的參與。此時您可以斷開連接。