Hub Cyber Security Ltd (HUBC) 2024 Q4 法說會逐字稿

Thank you for joining us for HUB Cyber Security's second half 2024 financial results conference call. Joining us on the call today is Noah Hershcoviz, CEO of HUB; Lior Davidson, CFO of HUB Cyber Security. Today's event is being recorded and will be available for replay through the webcast information provided in the press release.

感謝您參加 HUB Cyber​​ Security 2024 年下半年財務績效電話會議。今天參加電話會議的有 HUB 執行長 Noah Hershcoviz 和 HUB Cyber​​ Security 財務長 Lior Davidson。今天的活動正在錄製中，並將透過新聞稿中提供的網路直播資訊進行重播。

Finally, I'd like to call your attention to the customary Safe Harbor disclosures regarding forward-looking information. The conference call today will contain certain forward-looking statements including statements regarding the goals, strategies, beliefs, expectations, and future potential operating results of cybersecurity. Although management believes these statements are reasonable based on estimates, assumptions, and projections as of today, these statements are not guarantees of future performance.

最後，我想提請您注意有關前瞻性資訊的常規安全港披露。今天的電話會議將包含某些前瞻性陳述，包括有關網路安全的目標、策略、信念、期望和未來潛在營運結果的陳述。儘管管理層認為這些聲明根據目前的估計、假設和預測是合理的，但這些聲明並不能保證未來的表現。

Time sensitive information may no longer be accurate at the time of any telephonic or webcast replay. Actual results may differ materially as a result of risks, uncertainties, and other factors including but not limited to factors set forth in the company's filings with the SEC. HUB undertakes no obligation to update or revise any of these forward-looking statements. With that said, I would now like to turn the event over to Noah Hershcoviz, CEO of Ho Cybersecurity. Noah, please proceed.

在任何電話或網路廣播重播時，時間敏感資訊可能不再準確。由於風險、不確定性和其他因素（包括但不限於公司向美國證券交易委員會提交的文件中列出的因素），實際結果可能存在重大差異。HUB 不承擔更新或修改任何這些前瞻性聲明的義務。話雖如此，我現在想將活動交給 Ho Cyber​​security 執行長 Noah Hershcoviz。諾亞，請繼續。

Thank you, Ben. Thank you for attending. Thank you all for attending our second half, 2025 earnings call. During today's call, I will highlight our recent accomplishments that demonstrate our continued execution in offering our clients and unifying data fabric embedded in military grade security environment.

謝謝你，本。謝謝您的出席。感謝大家參加我們 2025 年下半年的財報電話會議。在今天的電話會議中，我將重點介紹我們最近的成就，這些成就表明我們將繼續為客戶提供並統一嵌入軍用級安全環境中的資料結構。

In addition, we will speak about some of the operational efficiencies the new management team has achieved in our effort to turn around HUB and provide shareholder value. We will also discuss our plans to grow our top and bottom lines further while managing our capital efficiency, efficiently. I mean, finally, we'll discuss the financial results for the second half of 2024.

此外，我們將討論新管理團隊在扭轉 HUB 並為股東創造價值的努力中所取得的一些營運效率。我們還將討論進一步提高營收和利潤的計劃，同時有效管理我們的資本效率。我的意思是，最後，我們將討論 2024 年下半年的財務表現。

But before that, I wanted to provide a broad overview of HUB and the opportunities that we believe will drive growth for the company going forward. HUB Cyber Security is an exciting story to share, not just as a pioneer in the secure data fabric market, but as a company that has successfully navigated challenges and emerged stronger and determined. We don't just manage data, we help organizations govern it, secure it, and operationalize it all while meeting the most aggressive regulatory standards in the world, and the market is responding.

但在此之前，我想先對 HUB 進行概述，以及我們認為將推動公司未來成長的機會。HUB Cyber​​ Security 是一個令人興奮的故事，它不僅是安全資料結構市場的先驅，而且是一家成功應對挑戰、變得更加強大和堅定的公司。我們不僅管理數據，我們還幫助組織管理數據、保護數據並使其運作起來，同時滿足世界上最嚴格的監管標準，市場正在做出反應。

We're already seeing significant growth in our pipeline, especially from financial institutions and public infrastructure providers in Europe and North America. In March, was awarded a [EUR20 million] engagement by the Bank of San Marino to modernize its entire digital banking infrastructure. We expect to deliver in full this year.

我們的管道已經出現了顯著的成長，特別是來自歐洲和北美的金融機構和公共基礎設施提供者。3 月，獲得聖馬力諾銀行 [2000 萬歐元] 的合同，以對其整個數位銀行基礎設施進行現代化改造。我們預計今年將全面交付。

Reinforcing both our profitability trajectory and our market share expansion to support this growth, we are scanning our US presence, opening new office in New York City to support demand across North America, and aggressively hiring world-class talent with deep domain expertise in cybersecurity, data infrastructure, and public sector compliance. And there's more to come. This is just the beginning.

為了加強我們的獲利軌跡和市場份額擴張以支持這一成長，我們正在審視我們在美國的業務，在紐約市開設新辦事處以支持北美各地的需求，並積極聘請在網路安全、數據基礎設施和公共部門合規方面擁有深厚領域專業知識的世界級人才。未來還會有更多。這只是個開始。

Over the past year we've made bold decisions to streamline operations, focus on high margin, recurring software business, and reposition the company for sustainable and scalable growth. At a high level, HUB operates two synergetic business units. The secure data fabric platform, our primary growth engine, a proprietary solution built to serve financial institutions, enterprises, and regulated public sector environments, the premier professional services and cyber consultancy, our heritage services business, which provides a stable revenue base and maintains long standing trusted relationships with elite clients. These two years are not isolated.

在過去的一年裡，我們做出了大膽的決定，精簡運營，專注於高利潤、經常性的軟體業務，並重新定位公司以實現可持續和可擴展的成長。從高層次來看，HUB 經營兩個協同業務部門。安全資料結構平台是我們的主要成長引擎，是為服務金融機構、企業和受監管的公共部門環境而建構的專有解決方案，是首屈一指的專業服務和網路諮詢服務，也是我們的傳統服務業務，它提供了穩定的收入基礎並與精英客戶保持著長期信任的關係。這兩年並不是孤立的。

They work hand in hand to strengthen our fabric platform, delivery and credibility, accelerating adoption and expanding our market footprint. This integrated model is a force multiplier, combining deep advisory trust with cutting edge secure data infrastructure.

他們攜手合作，加強我們的布料平台、交付和信譽，加速採用並擴大我們的市場足跡。這種整合模型是一種力量倍增器，將深度諮詢信任與尖端安全資料基礎設施結合在一起。

Let me start with reviewing our secured data fabric platform which embodies the future of HUB Security. This innovative proprietary technology addresses the growing complexity of data management in today's financial and enterprise environments. Financial institutions are facing what I would describe as their winter is coming moment.

首先，我來回顧一下體現 HUB Security 未來的安全資料結構平台。這項創新的專有技術解決了當今金融和企業環境中日益複雜的資料管理問題。金融機構正面臨我所謂的「冬天即將來臨」的時刻。

Data volumes are exploding, infrastructure costs are rising, and regulators are accelerating their expectations for real-time audible compliance. The GAAP between what enterprise have, which is fragmented systems, static reports, and what they need, which is real-time governance, AI driven risk intelligence, is getting wider by the month, actually by the day. That's the space we're focused on.

數據量正在爆炸式增長，基礎設施成本正在上升，監管機構對即時可聽合規性的期望也在不斷提高。企業現有的分散系統、靜態報告與其所需的即時治理、人工智慧驅動的風險情報之間的 GAAP 差距正在逐月擴大，實際上每天都在擴大。這就是我們關注的領域。

Our platform automatically consolidates data from diverse silos into a unified, scalable, and secure system. It enables our clients to navigate and cross reference data pools where it is. Meet and exceed regulatory compliance standards, lower the cost of ownership of those standards, and protect sensitive information with our proprietary military grade cybersecurity.

我們的平台會自動將來自不同孤島的資料整合到一個統一、可擴展且安全的系統中。它使我們的客戶能夠導航和交叉引用資料池。滿足並超越監管合規標準，降低這些標準的擁有成本，並使用我們專有的軍用級網路安全保護敏感資訊。

Unlike traditional solutions which require costly, time-consuming, and risky data migrations, our approach overlays a software layer that securely fetches data in real time. This not only reduces the manpower and operational costs required in consolidating data from separate silos, but also minimizes the chances of external security threats to our customers.

與需要昂貴、耗時且有風險的資料遷移的傳統解決方案不同，我們的方法涵蓋了一個可以即時安全地獲取資料的軟體層。這不僅減少了整合來自不同資料孤島的資料所需的人力和營運成本，而且還最大限度地減少了對客戶造成外部安全威脅的可能性。

Our competitive edge lies in what we believe is our unmatched combination of advanced technology and industry specific expertise. At the core of our offering is a confidential compute capability, leveraging military grade encryption to protect data, whether in transit, at rest, or during processing. Traditional data leak solutions fall short in providing this level of protection. Our advanced security safeguards even the most sensitive information against bridges, while fully complying with the latest global data protection and cybersecurity regulations, a critical requirement for companies in the financial services sector worldwide.

我們的競爭優勢在於我們相信我們擁有無與倫比的先進技術與行業特定專業知識的結合。我們產品的核心是機密運算能力，利用軍用級加密來保護數據，無論是在傳輸中、靜止時還是在處理過程中。傳統的資料外洩解決方案無法提供這種程度的保護。我們先進的安全措施可以保護最敏感的資訊免受橋樑的侵害，同時完全符合最新的全球資料保護和網路安全法規，這是全球金融服務業公司的關鍵要求。

Since the deployment of our secure data fabric, we've seen remarkable demand for the product. It's evident that the markets recognize the value we bring, and I foresee steady growth and market penetration sector by sector as we continue to execute our strategy.

自從部署我們的安全資料結構以來，我們看到了對該產品的顯著需求。顯然，市場認可我們帶來的價值，隨著我們繼續執行我們的策略，我預見到各個行業將實現穩定成長和市場滲透。

Our premier professional services and consultancy group remains a cornerstone of HUB's operations. This is a trusted adviser business. Obviously, I'm talking about right now the second business unit, our premier professional services. So, this is a trusted advisor business staff with over 270 skilled professionals that Delivers ICT software and cyber defense solutions to some of the world's most sensitive environments. What makes this business powerful is its trust capital.

我們一流的專業服務和諮詢團隊仍然是 HUB 營運的基石。這是一項值得信賴的顧問業務。顯然，我現在談論的是第二個業務部門，也就是我們的首要專業服務。因此，這是一支值得信賴的顧問業務團隊，擁有超過 270 名熟練的專業人員，為世界上一些最敏感的環境提供 ICT 軟體和網路防禦解決方案。讓這個企業強大的是它的信任資本。

Many of our clients' relationships go back decades. Some as far as the early 1990s. These relationships are not just recurring, they're strategic. They give us. Privileged access, long term visibility, and a platform to introduce our secure data fabric into large complex organizations. We believe this business not only underpins our cash flow, but gives have a major competitive advantage in winning new software deployments within high various sectors.

我們許多客戶的關係可以追溯到幾十年前。有些甚至可以追溯到 1990 年代初期。這些關係不僅僅是重複的，而且是策略性的。他們給予我們。特權存取、長期可見性以及將我們的安全資料結構引入大型複雜組織的平台。我們相信，這項業務不僅支撐了我們的現金流，而且在贏得各行業的新軟體部署方面具有巨大的競爭優勢。

Now there is a revival story here. Let me now walk you through what we've done operationally over the last 18 months, a complete strategic and financial reset. I'll start by the restructuring and the efficiency part. We exited underperforming segments. We have reduced overhead and restructured contracts that offered volume without value. The strategic discipline enabled a significant turnaround in our gross margin profile, improving over 1,000 basis points year over year in the second half of 2024.

現在這裡有一個復興的故事。現在讓我向你們介紹一下我們在過去 18 個月中所做的營運工作，即徹底的策略和財務重置。我將從重組和效率部分開始。我們退出了表現不佳的領域。我們減少了管理費用，並重組了那些提供數量但沒有價值的合約。這項策略紀律使我們的毛利率狀況發生了顯著好轉，2024 年下半年的毛利率年增了 1,000 多個基點。

We've reduced legacy liabilities by over $17 million and secured new financing on favorable terms. We're strengthening our financials. We've delivered the business and now with cleaner balance sheet, still work to be done. Which pos positions us as positions us better to win larger public and financial sector contracts where financial stability is paramount.

我們已將遺留負債減少了 1700 多萬美元，並以優惠條件獲得了新的融資。我們正在加強我們的財務狀況。我們已經完成了業務，現在資產負債表更加清晰，但仍有工作要做。哪個位置使我們更有能力贏得更大的公共和金融部門合同，因為金融穩定至關重要。

Despite legacy noise, our blue chip client relationships not only held, they deepened. This trust allows us to now shift from project-based execution to recurring software delivery and long-term platform adoption. Now on the leadership part and commercial validation.

儘管有遺留問題，我們與藍籌客戶的關係不僅得以維持，而且更加深化。這種信任使我們現在可以從基於專案的執行轉向定期軟體交付和長期平台採用。現在討論領導力部分和商業驗證。

So, our US expansion is well underway, supported by a newly established headquarters and a senior leadership team with deep expertise in national security and public sector engagement. In March, we secured a landmark [EUR20 million] engagements with the Bank of San Marino to lead its digital banking transformation.

因此，我們在美國的擴張正在順利進行，並得到了新成立的總部和在國家安全和公共部門參與方面擁有深厚專業知識的高階領導團隊的支持。今年 3 月，我們與聖馬力諾銀行達成了具有里程碑意義的 [2000 萬歐元] 協議，引領其數位銀行轉型。

A mandate that validates HUB's ability to deliver at the highest level of regulated finance. We're on track to fully execute this contract in 2025. And are actively pursuing additional opportunities of similar scale. A successful deployment would represent a significantly more than doubling our topline revenue, and our team is fully committed to delivering with precision, speed, and executional excellence.

該授權確認了 HUB 有能力提供最高水準的受監管融資。我們預計在 2025 年全面履行該合約。並積極尋求更多類似規模的機會。成功的部署將使我們的總收入增加一倍以上，我們的團隊將全力致力於以精確、快速和卓越的執行力交付產品。

This turnaround story is not just about the ability to navigate adversity. It's about positioning HUB security as stronger, more focused company ready to capitalize on the imminent opportunity ahead. We're on a mission to make every transaction safer. Let those who entrust us with our world-class solution know that they can depend on us.

這個扭轉乾坤的故事不僅關乎克服逆境的能力。這是為了將 HUB 安全定位為更強大、更專注的公司，準備利用即將到來的機會。我們的使命是讓每筆交易都更加安全。讓那些委託我們提供世界一流解決方案的人知道他們可以信賴我們。

Since becoming CEO, a key focus has been building the right team to drive our growth strategy. HUB has recruited top tier talent, bringing industry experts to share our visions, the exact talents needed to execute our market penetration efforts. In recent months, the company has announced John Rogers as President of the Americas region, [Rina Persovski] as Chairperson. And Slobis as the newest member of the Board.

自擔任執行長以來，我們的工作重點一直是建立合適的團隊來推動我們的成長策略。HUB 招募了頂尖人才，邀請產業專家來分享我們的願景，而他們正是我們執行市場滲透工作所需的人才。最近幾個月，該公司宣布任命約翰·羅傑斯（John Rogers）為美洲地區總裁，任命[麗娜·佩索夫斯基（Rina Persovski）]為董事長。斯洛比斯 (Slobis) 是董事會最新成員。

The executive appointments reflect our commitment to innovation, operational excellence, and client success. The combination of our technology. Market demand and exceptional task we brought on board gives me great confidence in our ability to expand our footprint and strengthen our competitive position.

高階主管任命體現了我們對創新、卓越營運和客戶成功的承諾。我們的技術的結合。市場需求和我們承擔的特殊任務讓我對我們擴大影響力和加強競爭地位的能力充滿信心。

In closing, HUB Security is emerging stronger, leaner, and more focused. Our two complementary business units, the stable foundation of our professional services business, and the high growth potential of our secured data fabric platform position us for long term success. Since taking on the role of the CEO in December 2023, I've been inspired by the resilience of our team. And the market's response to our innovative solutions.

最後，HUB Security 正在變得更強大、更精簡、更專注。我們的兩個互補業務部門、專業服務業務的穩定基礎以及安全資料結構平台的高成長潛力使我們獲得了長期的成功。自 2023 年 12 月擔任執行長以來，我一直受到我們團隊的韌性的鼓舞。以及市場對我們的創新解決方案的反應。

We've put the past behind and have shown that through this all we continue to make the business world a safer place. Large global companies depend on us, and we take responsibilities, we take these responsibilities seriously. But synchronizing every unit to support our security fabric, we've created a powerful engine for.

我們已經將過去拋在腦後，並透過這一切表明，我們將繼續努力使商業世界更加安全。大型跨國公司依賴我們，我們承擔責任，我們認真對待這些責任。但是透過同步每個單元來支援我們的安全結構，我們創建了一個強大的引擎。

This transformation is not just a revival story. It's a testament to our commitment to driving value for our clients, shareholders, and stakeholders. Let me know. Let me now hand over to Lior Davidson.

這種轉變不只是一個復興的故事。這證明了我們致力於為客戶、股東和利害關係人創造價值。讓我知道。現在讓我把時間交給 Lior Davidson。

Our CFO to walk you through our performance in detail.

我們的財務長將向您詳細介紹我們的業績。

So, thank you the financial result for the full year 2024 will be provided in detail within our phone [2F].

因此，感謝您，2024 年全年的財務業績將在電話中提供詳細信息[2F].

In the next couple of minutes, I will have to provide some cover on key areas of our financial results as well as the outlook on the certain areas where I can. I will start with the revenue for the second half of 2024, $13.8 million, compared to $17.6 million H2 2023, the respective period.

在接下來的幾分鐘內，我將盡可能地介紹我們財務表現的關鍵領域以及某些領域的展望。我先從 2024 年下半年的收入開始說，該年收入為 1,380 萬美元，而 2023 年下半年同期的收入為 1,760 萬美元。

The oil change basically reflects the company's deliberate strategic pivots to optimize its business mix. Have its proactively extend lower magic segments including certain area within its IT services and cyber consultancy division, basically or mainly in order to concentrate on its core high value offering. This realignment underscores have commitment to enhancing profitability and building a more resilient foundation for sustainable long-term goals.

此次油品變化基本上體現了該公司為優化業務結構所採取的策略重心轉變。積極擴展較低的魔法細分市場，包括其 IT 服務和網路諮詢部門內的某些領域，基本上或主要是為了專注於其核心高價值產品。此次調整強調了提高盈利能力和為實現可持續的長期目標建立更具彈性的基礎的承諾。

At the same time for the full year of 2024, how it generated $39.6 million in revenue, which is relatively down, from $42.7 million in 2023. After the ghost margin, so the ghost margin has improved significantly 25.6% in H2 2024, up by 15.4% compared with H2 2023. This improvement highlights the positive impact of our strategic realignment towards higher marginal business segments.

同時，2024年全年其營收為3,960萬美元，較2023年的4,270萬美元下降。經過幽靈利潤率之後，幽靈利潤率在 2024 年下半年大幅提高 25.6%，與 2023 年下半年相比成長 15.4%。這項改善凸顯了我們對更高邊際業務部門進行的策略調整所帶來的正面影響。

Despite a linear revenue basis, the company's sharpened focus has enhanced overall profitability and established a strong foundation for sustain financial performance going forward. For the full year of 2024 because margins were [17.1], which reflects a strong improvement of 1.8% for the full year of 2023.

儘管收入基礎呈線性成長，但公司更專注的重點提高了整體獲利能力，並為未來維持財務表現奠定了堅實的基礎。2024 年全年利潤率 [17.1]，反映出 2023 年全年利潤率強勁成長 1.8%。

We are replacing volume with value. This shift basically is expected to accelerate in 2025 as more of our businesses shift towards that software. Regarding the operating expenses, so the total operating expenses for HQ 2024 is an aggregated to $14.7 million, which reflects a significant [9%, 29%] reduction compared to $20.9 million in the respective period of age to 2023. The sharp reduction underscore management, discipline approach to cost control and operational efficiency cost HUB continues its transition to a more focused higher margin business model.

我們正在用價值取代數量。隨著越來越多的業務轉向該軟體，預計這種轉變將在 2025 年加速。至於營運費用，2024 年總部的總營運費用總計為 1,470 萬美元，與 2023 年相應時期的 2,090 萬美元相比大幅減少 [9%，29%]。大幅削減成本凸顯了管理、成本控制和營運效率的紀律性，HUB 持續向更專注、利潤率更高的業務模式轉型。

Once again, for the full year 2024, the total operating expenses declined roughly 60% of the year due to the aforementioned expense rationalization as well as IPO related expenses recorded in H4 2023. The operating loss in age to 2024 was $11.1 million, which reflects a significant improvement of 38% compared with the prior year.

再次，由於上述費用合理化以及 2023 年上半年記錄的 IPO 相關費用，2024 年全年總營運費用下降了約 60%。截至 2024 年的營業虧損為 1,110 萬美元，與前一年相比大幅改善了 38%。

This meaningful progress reflects the benefits of streamlined operations and a more efficient organizational structure, reinforcing the positive impact of the company's realignment. The full year operating loss has been improved by over 66% of the year, dropping from $77 million in 2022 to only $26 million in 2024. I'll spend a couple of sentences on the balance sheet with your permission, so the cash and cash equivalent at the end of the year was $3.1 million liability. $108 million, for $83 million driven largely by a warrant liabilities tycoon fundraising round that also enhanced our equity profile.

這項有意義的進展體現了精簡營運和更有效率的組織結構所帶來的好處，強化了公司重組的正面影響。全年營業虧損已改善逾 66%，從 2022 年的 7,700 萬美元降至 2024 年的僅 2,600 萬美元。如果您允許的話，我會在資產負債表上花幾句話，因此，年底的現金和現金等價物為 310 萬美元的負債。 1.08 億美元，其中 8,300 萬美元主要由認股權證負債大亨融資輪推動，也增強了我們的股權狀況。

Working capital that has been being actively managed to successful restructuring and aggressive data on strategies. At the same time, we also converted a significant portion of outstanding convertible debt into equity, further deleveraging the business and reducing interest burden.

一直積極管理的營運資本成功重組和積極的策略數據。同時，我們也將相當一部分未償還的可轉換債務轉換為股權，進一步降低業務槓桿率，減輕利息負擔。

Thank you.

謝謝。

Thank you to the entire management team. We have some questions for you.

感謝整個管理團隊。我們有一些問題想問您。

First, can you speak about your competitors and the advantage you have over them? Can you elaborate a bit on the product on your product versus theirs?

首先，您能談談您的競爭對手以及您相對於他們的優勢嗎？您能否詳細說明您的產品與他們的產品有何不同？

Sure, Thanks Ben. It's a great question. We unify compliance, AI analytics, and security in one real-time platform for a fraction of the cost. Our competitors often take years to implement. It cost billions to deploy and maintain and are highly vulnerable to cyber-attacks. That's a very important component. Once deployed, many require extensive involvement from a data engineer to process manually and massage the data to achieve meaningful analytics outcome.

當然，謝謝本。這是一個很好的問題。我們將合規性、人工智慧分析和安全性統一在一個即時平台上，而成本卻只是極低的。我們的競爭對手往往需要數年時間才能實現。部署和維護它的成本高達數十億美元，而且極易受到網路攻擊。這是一個非常重要的組成部分。一旦部署，許多都需要資料工程師的廣泛參與來手動處理和調整資料以獲得有意義的分析結果。

HUB secure that the fabric, can be implemented in just a few months, with deployments and maintenance costs that are relatively low. As we are pure software technically. It is followed by military grade cybersecurity, ensuring robust protection. Once deployed, our AI platform enables near real-time analytics generation, requiring minimal to no manual intervention and leveraging advanced technology for maximum efficiency. Well, so we do not require clients to replace any current solution, no forklift approach, using the lingo. Rather, help secure data fabric, our platform can be added as a layer above existing infrastructure, i.e. our fusion approach, removing the need for large CapEx investment and lengthy replacing of existing tech infrastructure. We're making the system better by enhancing every aspect of it.

HUB 確保該結構可以在短短幾個月內實現，並且部署和維護成本相對較低。因為從技術上講我們是純軟體。其次是軍用級網路安全，確保強而有力的保護。一旦部署，我們的 AI 平台就可以實現近乎即時的分析生成，幾乎不需要人工幹預，並利用先進技術來實現最高效率。好吧，所以我們不要求客戶用行話來替換任何當前的解決方案，也不要求客戶採用堆高機式方法。相反，為了幫助保護資料結構，我們的平台可以作為現有基礎設施之上的一層添加，即我們的整合方法，從而無需大量的資本支出投資和長時間更換現有技術基礎設施。我們正在透過增強系統的各個方面來使其變得更好。

Okay. Thank you. HUB has historically been a service and a hardware company, but it seems like, you're moving towards a more software-centric company with AI driving the data fabric component. Can you explain the software versus hardware segment of the business?

好的。謝謝。HUB 歷史上一直是一家服務和硬體公司，但看起來，你們正在轉向一家更以軟體為中心的公司，由人工智慧驅動資料結構元件。您能解釋一下業務的軟體和硬體部分嗎？

Yeah, sure. So, Hub has undergone a strategic evolution. While hardware and services were historically significant part of our business, we've transitioned to focus on high margin software driven solution, that align with our long-term growth objectives. So, our secure powered by proprietary eye integrates advanced data analytics with our deep cybersecurity expertise.

是的，當然。因此，Hub 經歷了策略演變。雖然硬體和服務歷來是我們業務的重要組成部分，但我們已轉向專注於高利潤的軟體驅動解決方案，這符合我們的長期成長目標。因此，我們由專有眼光提供支援的安全系統將先進的數據分析與我們深厚的網路安全專業知識相結合。

To address both the security pri priorities of the CIO, but the broader operational needs of our clients with a trusted relationship cultivated across hundreds of clients that's the professional services that we've discussed before, we are positioned to engage early and deliver solutions that drive resilience and business growth.

為了滿足 CIO 的安全優先考慮以及我們客戶更廣泛的營運需求，透過與數百家客戶建立信任關係（也就是我們之前討論過的專業服務），我們致力於儘早參與並提供能夠推動彈性和業務成長的解決方案。

Okay. Thank you. Another question, how do you see the long-term margin profile of the company? I'm looking ahead, which business unit, the secured data fabric or IT services do you consider to be the main vertical for HUB?

好的。謝謝。另一個問題是，您如何看待公司的長期利潤狀況？展望未來，您認為哪個業務部門、安全資料結構或 IT 服務是 HUB 的主要垂直領域？

Yeah, I'll try to address it. Our long-term margin profile reflects our commitment to disciplined management and operational efficiency. Historically, our IT services business has delivered margins in the range of 15% to 20%.

是的，我會盡力解決它。我們的長期利潤狀況反映了我們對嚴格管理和營運效率的承諾。從歷史上看，我們的 IT 服務業務的利潤率在 15% 至 20% 之間。

To deliberate efforts to swim an operation and exit lower margin services, we've shifted focus to higher value opportunities, achieving improved margin of 30% to 40%. That's even into the professional service experience, right? We have the 15% to 20% range, and we have higher margins of the 30% to 40%. [Our] secure data fabric, on the other hand, is a software centric business with margins in the 80% to 90% range.

為了謹慎努力實現盈利並退出利潤率較低的服務，我們將重點轉向更高價值的機會，實現了 30% 至 40% 的利潤率提高。這甚至是專業的服務體驗，對嗎？我們的利潤率在15%到20%之間，有些利潤率更高，在30%到40%之間。而我們的安全資料結構是以軟體為中心的業務，利潤率在80%到90%之間。

Aligning with our strategic direction, that's the product that secures the fabric component of the business. Looking ahead, the data fabric segment is poised to be the primary growth driver for HUB, significantly outpacing IT services as a percentage of the total revenue. That's the change of the blend. This shift is already well under way, and we anticipate a marked transformation in our business mixed out already in 2025.

與我們的策略方向一致，這是確保業務結構組件安全的產品。展望未來，資料結構部門將成為 HUB 的主要成長動力，其在總收入中所佔的百分比將大大超過 IT 服務。這就是混合的改變。這項轉變已經在順利進行中，我們預計到 2025 年我們的業務將會發生顯著轉變。

Okay. Can you talk about the main regions you're currently focused on and elaborate a bit more on your launch into the US?

好的。您能否談談您目前關注的主要地區並詳細說明您進軍美國市場的情況？

Sure, so our current focus is on Israel and the European Union. As we have an Amsterdam office, we have a London office, we have a Polish office. We have a German office. We've seen strong demand, particularly from leading financial institutions adopting or secured the fabric platform, and this demand has solidified our position in Europe and underscores the scalability of our solution.

當然，所以我們目前的重點是以色列和歐盟。我們在阿姆斯特丹有辦事處，在倫敦有辦事處，在波蘭有辦事處。我們在德國設有辦事處。我們看到了強勁的需求，特別是來自採用或保護結構平台的領先金融機構的需求，這種需求鞏固了我們在歐洲的地位，並強調了我們解決方案的可擴展性。

Looking ahead, the US represents a significant strategic opportunity. We've already observed great demand in the EU, and we anticipate even more in the US. HUB US based executives are actively engaging with potential clients, and we are targeting our first signed contracts in 2025.

展望未來，美國代表重大戰略機會。我們已經觀察到歐盟的巨大需求，並且我們預計美國的需求會更大。HUB 美國公司的高階主管正在積極與潛在客戶接洽，我們的目標是在 2025 年簽署首批合約。

Our initial focus will be on the transportation sector. It seems to have like a pretty advanced stage client there. The transportation sector is a high priority vertical where our platform can address critical needs in security, compliance, and data integration.

我們最初的重點將放在交通運輸領域。那裡似乎有一個相當先進的客戶。交通運輸業是一個高優先級的垂直行業，我們的平台可以滿足安全性、合規性和資料整合的關鍵需求。

Over time we plan to expand further into additional industries, obviously the same financial sectors that we see we saw demand in Europe. Same goes with the US for building our momentum and leveraging our proven expertise to drive sustainable growth and beyond. A side note, I would like to add we are not necessarily after the next giant bank. I mean, we see huge demand in the smaller boutique banks where we can leverage our success with the current European clients.

隨著時間的推移，我們計劃進一步擴展到其他行業，顯然是我們在歐洲看到的有需求的金融業。美國也同樣致力於增強發展勢頭，並利用我們成熟的專業知識來推動永續成長及其他發展。附註：我想補充一點，我們不一定會追求下一個巨型銀行。我的意思是，我們看到小型精品銀行的需求龐大，我們可以利用我們在現有歐洲客戶中取得的成功。

Okay. Can you provide some more detail on the quality of your current revenue stream?

好的。您能否提供一些有關當前收入來源品質的更多細節？

Yes, thank you for this question for this question, certainly. The composition offer of revenue has fundamentally shifted, as I mentioned. In 2024, over 60% of the revenue came from long-term recurring contracts across financial services and critical infrastructure. These are high quality relationships with long sale cycles, embedded integrations, and high retention, very different from transactional, one of projects which where we strategically exited.

是的，非常感謝你提出這個問題。正如我所提到的，收入的組成已經發生了根本性的變化。2024年，超過60%的收入來自金融服務和關鍵基礎設施的長期定期合約。這些都是高品質的關係，具有較長的銷售週期、嵌入式整合和高保留率，與交易性關係非常不同，交易性關係是我們策略性退出的項目之一。

Our professional services business continues to grow steadily. We expected 15% to 20% year over year growth. That's a very steady and conservative growth in the business that we foresee. Hopefully we can even overachieve, but 50% to 20% is something that we already foresee, driven by long-term, long-standing clients like Boeing and others.

我們的專業服務業務持續穩定成長。我們預計將年增 15% 至 20%。我們預見到業務將非常穩定且保守地成長。希望我們能夠超額完成目標，但我們已經預見到 50% 到 20% 的成長，這得益於波音等長期客戶的推動。

But the most significant evolution is our platform business, the secure data fabric. And is now contributing a growing share of our top line and it's built around a SAS model with strong margins, CT compliance use cases, and high cross sale potential. We're not just delivering software, we are solving a systematic data fragmentation and compliance fatigue across global institutions that shifts.

但最重要的進步是我們的平台業務，即安全資料結構。現在它對我們的營業收入的貢獻越來越大，它是圍繞 SAS 模型構建的，具有高利潤率、CT 合規用例和高交叉銷售潛力。我們不僅提供軟體，我們還在解決全球機構中不斷變化的系統性資料碎片化和合規性疲勞問題。

It's already the shift is already visible in our early 2025 bookings, and we continue to drive operating leverage and predictability across our revenue base. Looking ahead, we foresee multiple deployments on the scale, same scale of the San Marino engagement, over the coming quarter. What we call the HUB360 approach, a full stack modernization, combining secure. Core infrastructure with our data governance platform. In Palo, we're targeting a minimum of like 5 to 10 new clients in the [SAS-based] compliance category alone.

這種轉變已經體現在我們 2025 年初的預訂中，我們將繼續推動整個收入基礎的營運槓桿和可預測性。展望未來，我們預計未來一個季度將進行多次與聖馬利諾行動同等規模的部署。我們稱之為 HUB360 方法，即全端現代化，結合安全性。我們的資料治理平台的核心基礎設施。在 Palo，我們僅在 [基於 SAS 的] 合規類別中就瞄準了至少 5 到 10 個新客戶。

These are long term relationships with annual contract value in the range of [$500,000 to $1 million] range, similar to our existing T1 clients with high TCV recurring, and position for continued expansion.

這些都是長期合作關係，年度合約價值在 [50 萬至 100 萬美元] 範圍內，與我們現有的 T1 客戶類似，具有較高的 TCV 重複性，並且具有持續擴張的優勢。

Okay. Let's talk about gross margins a bit. What is driving the strong gross margin improvements in the last 12 months?

好的。我們來談談毛利率。是什麼推動了過去 12 個月毛利率的強勁成長？

Sure. So, it's a mix of strategic exits from low margin contracts and integration of like the AI led software offering from BlackSwan, the company that we've just, announced acquiring, a couple of months ago. Obviously better pricing discipline. We now have an [80/20] revenue structure focused on high efficiency services.

當然。因此，它是低利潤合約的策略性退出和類似 BlackSwan（我們幾個月前剛宣布收購的公司）的人工智慧軟體產品的整合。顯然定價紀律更好。我們現在的收入結構是[80/20]，專注於高效率服務。

Okay, and can you speak about HUB's commitment to compliance and transparency, going forward?

好的，您能談談 HUB 未來對合規性和透明度的承諾嗎？

Yeah, we've waited with this one to the end. Yeah, absolutely. And let me be direct. What came before does not reflect who we are today. We've rebuilt with an institutional great mindset. Compliance and transparency are embedded in our governance, our leadership culture, and our day-to-day execution.

是的，我們已經等到最後了。是的，絕對是如此。讓我直接說。過去發生的事並不能反映今天的我們。我們以機構偉大的思維方式進行了重建。合規性和透明度已融入我們的治理、領導文化和日常執行。

We have implemented form board, over. Strengthen internal control, stocks and the likes, and align our financial reporting and operational cadence to meet the expectation of world class partners and long-term investors. We understand that in our space, cybersecurity, defense, and regulated financial infrastructure, credibility is everything. We operate accordingly and we're approving it quarter after quarter.

我們已經實作了模板，結束了。加強內部控制、股票等，並調整我們的財務報告和營運節奏，以滿足世界級合作夥伴和長期投資者的期望。我們明白，在我們的領域、網路安全、國防和受監管的金融基礎設施中，信譽就是一切。我們按照相應的方式運作，並且每個季度都會批准它。

Okay. It looks like we are out of time. Many thanks to everyone for participating on today's call, and we look forward to speaking with you all again.

好的。看起來我們已經沒時間了。非常感謝大家參加今天的電話會議，我們期待再次與大家交談。