Nogin Inc (NOGN) 2022 Q4 法說會逐字稿

Good afternoon. Welcome to Nogin Inc.'s Fourth Quarter and Full Year 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded.

下午好。歡迎來到 Nogin Inc. 的第四季度和 2022 年全年收益電話會議。 （操作員說明）提醒一下，此通話正在錄音中。

Joining us today from Nogin are Jonathan Huberman, President and CEO; and Shahriyar Rahmati, COO and CFO.

今天從 Nogin 加入我們的是總裁兼首席執行官 Jonathan Huberman；首席運營官兼首席財務官 Shahriyar Rahmati。

Before we begin, Nogin's management team would like to remind everyone that statements made and/or answers that may be given to questions asked on this call are or may contain forward-looking statements that are subject to risks and uncertainties related to future events and/or the future financial or business performance of Nogin.

在我們開始之前，Nogin 的管理團隊想提醒大家，在本次電話會議上所做的陳述和/或可能對所提問題的回答是或可能包含前瞻性陳述，這些陳述受與未來事件和/或 Nogin 未來的財務或業務表現。

Actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements include, but are not limited to, Nogin's expectations or predictions of financial and business performance and conditions, the development and adoption of Nogin's platform and cost-reduction measures as well as competitive and industry outlook. Forward-looking statements are subject to risks, uncertainties and assumptions, and they are not guarantees of performance. Nogin is not under any obligation to and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

實際結果可能與這些前瞻性陳述中預期的結果存在重大差異。前瞻性陳述包括但不限於 Nogin 對財務和業務績效和狀況的預期或預測、Nogin 平台的開發和採用、成本降低措施以及競爭和行業前景。前瞻性陳述受風險、不確定性和假設的影響，它們不是業績保證。 Nogin 沒有義務並明確否認任何更新、更改或以其他方式修改任何前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因，除非法律要求。

In addition, a description of some of the risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements on this call can be found in the Risk Factors section of our full year report on the Form 10-K for the quarter ended December 31, 2022, to be filed with the SEC later today and in our other filings with the SEC.

此外，有關可能導致實際結果與本次電話會議的前瞻性陳述所表明的結果存在重大差異的一些風險和不確定性的描述，請參見我們 Form 10 全年報告的風險因素部分- K 截至 2022 年 12 月 31 日的季度，將於今天晚些時候提交給美國證券交易委員會，並在我們提交給美國證券交易委員會的其他文件中。

On today's call, we will also refer to certain non-GAAP measures, including non-GAAP revenue and adjusted EBITDA that we view as important in assessing the performance of our business. These metrics exclude certain items as discussed in the release under the heading Non-GAAP Financial Measures. Therefore, these measures should not be considered in isolation or as an alternative to operating income, net income, cash flows from operations or any other profitability, liquidity or performance measures derived in accordance with GAAP.

在今天的電話會議上，我們還將參考某些非 GAAP 指標，包括我們認為對評估我們的業務績效很重要的非 GAAP 收入和調整後的 EBITDA。這些指標不包括本新聞稿中非 GAAP 財務措施標題下討論的某些項目。因此，不應孤立地考慮這些措施，也不應將其作為營業收入、淨收入、經營現金流量或根據 GAAP 得出的任何其他盈利能力、流動性或績效措施的替代方案。

You should be aware that the company's presentation of these measures may not be comparable to similarly titled measures used by other companies. A reconciliation of each non-GAAP measure to the comparable GAAP measure is available in our earnings release and our full year report on Form 10-K for the quarter ended December 31, 2022, on Nogin's Investor Relations page at www.ir.nogin.com.

您應該知道，公司對這些措施的介紹可能無法與其他公司使用的類似名稱的措施相提並論。我們在 www.ir.nogin 的 Nogin 投資者關係頁面上發布了截至 2022 年 12 月 31 日止季度的 10-K 表格全年報告，提供了每項非 GAAP 指標與可比 GAAP 指標的對賬。 com。

Finally, I would like to remind everyone that a webcast replay of this call will be available via the link provided in today's earnings release as well as on our website at www.nogin.com.

最後，我想提醒大家，通過今天的財報發布中提供的鏈接以及我們的網站 www.nogin.com 將提供此次電話會議的網絡直播重播。

Now I'd like to turn the call over to Nogin's CEO, Jonathan Huberman.

現在我想把電話轉給 Nogin 的首席執行官 Jonathan Huberman。

Thank you, Amy. Welcome, everyone, and thank you for joining us this afternoon on our earnings call. To begin today's discussion, I'd like to provide a quick overview of our business and review last year's highlights before turning the call over to our COO and CFO, Shahriyar Rahmati, to discuss our financial results for the quarter and year. After that, I'll share some closing remarks before opening the call for questions.

謝謝你，艾米。歡迎大家，感謝您今天下午參加我們的財報電話會議。在開始今天的討論之前，我想簡要介紹一下我們的業務並回顧去年的亮點，然後再將電話轉交給我們的首席運營官兼首席財務官 Shahriyar Rahmati，討論我們本季度和本年度的財務業績。之後，我將在開始提問之前分享一些結束語。

For those of you who may be new to our story, at Nogin, we believe that as retail e-commerce continues to grow and becomes more sophisticated, there is a large market opportunity to help merchants who need that e-commerce sophistication but lack the expertise, capital and personnel to manage it at all.

對於那些可能對我們的故事不熟悉的人，在 Nogin，我們相信隨著零售電子商務的不斷發展並變得更加複雜，存在巨大的市場機會來幫助需要電子商務成熟度但缺乏管理它的專業知識、資金和人員。

Nogin's Commerce-as-a-Service platform satisfies this need in a few ways. First, Nogin provides a headless, end-to-end technology platform that merchants can plug into instead of paying to integrate multiple technologies. Second, Nogin delivers advanced capabilities that are generally too complex and costly for many brands to buy, build or manage on their own. These capabilities include a full customer data platform, social commerce abilities and AI integrations.

Nogin 的商務即服務平台以多種方式滿足了這一需求。首先，Nogin 提供了一個無頭的、端到端的技術平台，商家可以插入該平台而不用付費來集成多種技術。其次，Nogin 提供的高級功能對於許多品牌來說通常過於復雜且成本過高，無法自行購買、構建或管理。這些功能包括完整的客戶數據平台、社交商務能力和人工智能集成。

Third, Nogin includes leading-edge R&D and innovation as a service so that clients are never required to expand resources on their e-commerce operations. Further, Nogin eliminates the need to replatform because as we build these new features and tools, they're immediately available to our clients. And lastly, Nogin drives identifiable incremental performance for our customers based on insights from our proprietary data asset, insights unavailable to most outside of the Nogin platform.

第三，Nogin 包括領先的研發和創新服務，因此客戶永遠不需要擴展其電子商務運營的資源。此外，Nogin 消除了重新平台化的需要，因為當我們構建這些新功能和工具時，我們的客戶可以立即使用它們。最後，Nogin 根據我們專有數據資產的洞察力為我們的客戶推動可識別的增量性能，Nogin 平台之外的大多數人無法獲得這些洞察力。

Nogin's business model includes taking a percentage of brand e-commerce sales conducted through our CaaS platform, which ensures complete alignment between ourselves and our clients.

Nogin 的商業模式包括從通過我們的 CaaS 平台進行的品牌電子商務銷售中抽取一定比例，這確保了我們與客戶之間的完全一致。

Our growth strategy is rooted in 3 key pillars: develop and continuously advance our innovative and scalable Commerce-as-a-Service platform, increase sales and marketing efforts to drive our pipeline and expand our client base into new markets and products throughout e-commerce. We continue to make progress on all these fronts as we look to the rest of 2023.

我們的增長戰略植根於 3 個關鍵支柱：開發並不斷推進我們創新且可擴展的商務即服務平台，加大銷售和營銷力度以推動我們的管道，並將我們的客戶群擴展到整個電子商務的新市場和產品中.展望 2023 年剩餘時間，我們將繼續在所有這些方面取得進展。

Altogether, as we grow and continue to scale our product and service offerings, our clients' e-commerce operations can scale in parallel. Our moderate approach to commerce allows brands and sellers to grow more profitably and without upfront costs, while still focusing their efforts on their core business and serve the resource-intensive nuances of e-commerce.

總而言之，隨著我們的發展並繼續擴大我們的產品和服務範圍，我們客戶的電子商務業務可以並行擴展。我們適度的商業方法使品牌和賣家能夠在沒有前期成本的情況下獲得更高的利潤，同時仍然將他們的精力集中在他們的核心業務上，並為電子商務的資源密集型細微差別提供服務。

I would now like to take a few minutes to reflect on our 2022 fiscal year. In many ways, this year was transformational for our business. After completing our business combination to enter the public markets in August, we had a public company and industry expertise to our management team and Board of Directors to best position Nogin to execute on our growth strategy. Also, a major driver of our decision to go public was to enhance our sales engine. And with that in mind, we made significant investments last year to bolster our sales force. These efforts have led to strong customer acquisition momentum as well as a robust pipeline of additional brands that are interested in Nogin's capabilities. Expanding our client base remains an important part of our growth strategy, and we look forward to further driving our sales engine in 2023.

我現在想花幾分鐘時間回顧一下我們的 2022 財年。在許多方面，今年對我們的業務來說是轉型的一年。在 8 月完成業務合併進入公開市場後，我們的管理團隊和董事會擁有一家上市公司和行業專業知識，可以讓 Nogin 最好地執行我們的增長戰略。此外，我們決定上市的一個主要驅動因素是增強我們的銷售引擎。考慮到這一點，我們去年進行了大量投資以加強我們的銷售隊伍。這些努力導致了強勁的客戶獲取勢頭，以及對 Nogin 功能感興趣的其他品牌的強大渠道。擴大我們的客戶群仍然是我們增長戰略的重要組成部分，我們期待在 2023 年進一步推動我們的銷售引擎。

We continued to invest behind our best-in-class Intelligent Commerce platform and made significant upgrades to our software in 2022. These efforts culminated in the launch of V1 of Intelligent Commerce announced this month, which builds on the previous version and offers powerful new features, including first of its kind, AI-powered customer segmentation, algorithmic, merchandising and automated campaign optimization. Our goals remain to provide our clients with access to cutting-edge enterprise e-commerce capabilities, and we expect to continue investing in our technology suite moving forward.

我們繼續投資於我們一流的智能商務平台，並在 2022 年對我們的軟件進行了重大升級。這些努力最終促成了本月宣布的智能商務 V1 版本的發布，該版本建立在先前版本的基礎上，並提供強大的新功能，包括首創的人工智能客戶細分、算法、商品銷售和自動化活動優化。我們的目標仍然是為我們的客戶提供尖端的企業電子商務功能，我們希望繼續投資於我們的技術套件。

Another area of focus for us in the back half of 2022 was our comprehensive cost reduction and performance improvement initiatives. While we work to position our CaaS business for growth and margin expansion, profitable operations remain a crucial part of our strategy. These initiatives are already showing positive results, including an adjusted EBITDA loss reduction in the fourth quarter. As we look to the rest of 2023, we expect to balance these efforts with our investment into Nogin's technology and sales engine and believe that we're on a path to profitable growth.

2022 年下半年我們關注的另一個領域是我們全面的成本削減和績效改進計劃。雖然我們努力將我們的 CaaS 業務定位為增長和利潤擴張，但盈利運營仍然是我們戰略的重要組成部分。這些舉措已經顯示出積極的成果，包括第四季度調整後的 EBITDA 虧損減少。展望 2023 年剩餘時間，我們希望在這些努力與我們對 Nogin 的技術和銷售引擎的投資之間取得平衡，並相信我們正走在盈利增長的道路上。

In total, we expect that our efforts in 2022 will allow us to effectively execute on our growth strategy moving forward. Especially in the current economic environment, brands are searching for ways to reduce costs while driving improved results, and our platform is uniquely positioned to help our customers do just that.

總的來說，我們預計我們在 2022 年的努力將使我們能夠有效地執行我們向前發展的增長戰略。特別是在當前的經濟環境下，品牌正在尋找降低成本的方法，同時推動改善結果，而我們的平台具有獨特的優勢，可以幫助我們的客戶做到這一點。

With Nogin, high-performance and cost-effectiveness are never mutually exclusive choices. We are confident in our technology, our team and our strategy and look forward to capitalize on strong momentum over the rest of 2023.

有了Nogin，高性能和成本效益永遠不是相互排斥的選擇。我們對我們的技術、我們的團隊和我們的戰略充滿信心，並期待在 2023 年剩餘時間內利用強勁的勢頭。

With that, I will turn the call over to our COO and CFO, Shahriyar Rahmati, to discuss our fourth quarter and full year financial results in greater detail. Shahriyar?

有了這個，我將把電話轉給我們的首席運營官兼首席財務官 Shahriyar Rahmati，更詳細地討論我們的第四季度和全年財務業績。沙赫里亞爾？

Thank you, Jon. Turning now to our financial results for the fourth quarter and full year ended December 31, 2022. As noted last quarter, our net revenue includes product-related revenue that stems from 2 previous deals that involve sales related to first-party inventory purchases. As that inventory is sold, generated revenue appears within net revenue in our GAAP results. Our non-GAAP revenue, however, is revenue generated by the core Commerce-as-a-Service platform and associated services. We typically view non-GAAP revenue as a more accurate indicator of the business and expect our GAAP and non-GAAP revenues to converge over time.

謝謝你，喬恩。現在轉向我們截至 2022 年 12 月 31 日的第四季度和全年的財務業績。如上季度所述，我們的淨收入包括產品相關收入，這些收入來自之前的 2 筆交易，涉及與第一方庫存購買相關的銷售。隨著庫存的出售，產生的收入出現在我們的 GAAP 結果中的淨收入中。然而，我們的非 GAAP 收入是由核心商務即服務平台和相關服務產生的收入。我們通常將非 GAAP 收入視為更準確的業務指標，並期望我們的 GAAP 和非 GAAP 收入隨著時間的推移趨於一致。

GAAP net revenue in the fourth quarter of 2022 decreased 39% to $27.9 million from $46.1 million in the fourth quarter of 2021. The decrease in net revenue was primarily due to a decrease in product revenue. GAAP net revenue for the 2022 full year decreased 7% to $94.5 million from $101.3 million in the comparable year ago period. The decrease in net revenue was primarily due to a decrease in net product revenue during the year, partially offset by an increase in net revenue from related parties.

2022 年第四季度的 GAAP 淨收入從 2021 年第四季度的 4610 萬美元下降 39% 至 2790 萬美元。淨收入下降的主要原因是產品收入下降。 2022 年全年的 GAAP 淨收入從去年同期的 1.013 億美元下降 7% 至 9450 萬美元。淨收入減少主要是由於年內產品淨收入減少，部分被來自關聯方的淨收入增加所抵消。

For the fourth quarter of 2022, non-GAAP revenue, a non-GAAP measurement of operating performance, decreased 16% to $22.3 million from $26.5 million in the comparable year ago period. The decrease in non-GAAP revenue was primarily due to a decrease in CaaS and marketing revenue. Non-GAAP revenue over the full year of 2022 increased 3% to $72.4 million from $70.0 million in the comparable year ago period. The increase in non-GAAP revenue was primarily due to an increase in CaaS revenue.

2022 年第四季度，非 GAAP 收入（非 GAAP 經營業績衡量標準）從去年同期的 2650 萬美元下降 16% 至 2230 萬美元。非 GAAP 收入的減少主要是由於 CaaS 和營銷收入的減少。 2022 年全年非美國通用會計準則收入從去年同期的 7000 萬美元增長 3% 至 7240 萬美元。非 GAAP 收入的增加主要是由於 CaaS 收入的增加。

Operating loss in the fourth quarter increased to $12.6 million compared to an operating loss of $0.9 million in the comparable year ago period and operating losses for the 2022 full year increased to $40.3 million compared with an operating loss of $6.3 million in the comparable year ago period. The increase in operating loss was primarily due to supply chain issues experienced at the end of 2021, which impacted our performance in the first half of 2022, along with a onetime write-down of bad debt and royalty expense.

第四季度營業虧損增至 1260 萬美元，去年同期營業虧損為 90 萬美元，2022 年全年營業虧損增至 4030 萬美元，去年同期營業虧損為 630 萬美元.營業虧損的增加主要是由於 2021 年底出現的供應鏈問題影響了我們 2022 年上半年的業績，以及一次性減記壞賬和特許權使用費。

The expected impact of the company's cost and performance improvement program for the full year 2023 is anticipated to be between $15 million and $20 million. The management expects to have the majority of initially identified initiatives complete by the end of the first quarter of 2023. And further, we expect these activities will have achieved their full run rate impact before the end of Q2 2023.

公司 2023 年全年成本和績效改進計劃的預期影響預計在 1500 萬至 2000 萬美元之間。管理層預計大部分初步確定的舉措將在 2023 年第一季度末完成。此外，我們預計這些活動將在 2023 年第二季度末之前實現其全部運行率影響。

Moving to our outlook for 2023. As of today, based on our progress year-to-date, we expect to drive existing customer add-on sales as well as new customer agreements, both of which will have a positive impact to revenue. Additionally, based on the initial results of our cost-reduction and performance improvement program, we expect to improve our operational efficiency, increase adjusted EBITDA and generate significantly increased operating leverage in the future. As we execute against our strategy over the course of this year, we expect to drive improved results and look forward to providing incremental updates going forward.

轉向我們對 2023 年的展望。截至今天，根據我們今年迄今的進展，我們預計將推動現有客戶的附加銷售以及新客戶協議，這兩者都將對收入產生積極影響。此外，根據我們降低成本和提高績效計劃的初步結果，我們預計未來將提高運營效率，增加調整後的 EBITDA 並顯著提高運營槓桿。當我們在今年執行我們的戰略時，我們希望推動改進結果，並期待在未來提供增量更新。

That completes my summary. I'd now like to turn the call back over to Jon.

我的總結到此結束。我現在想把電話轉回給喬恩。

Thanks, Shahriyar. Here at Nogin, we remain excited about the future and confident in our ability to execute against our growth strategy moving forward. Our traditional Commerce-as-a-Service business is strong and we believe that with our expanding pipeline of business across a myriad of industries interested in our solutions, we are positioned well to profitably grow over the coming quarters.

謝謝，沙赫里亞爾。在 Nogin，我們仍然對未來感到興奮，並對我們執行未來增長戰略的能力充滿信心。我們傳統的商業即服務業務很強大，我們相信隨著我們在對我們的解決方案感興趣的眾多行業中不斷擴大的業務渠道，我們有能力在未來幾個季度實現盈利增長。

Operator, with that, please open the call for Q&A.

接線員，請打開電話進行問答。

(Operator Instructions) And our first question is from Samad Samana with Jefferies.

（操作員說明）我們的第一個問題來自 Jefferies 的 Samad Samana。

So maybe first, just Jon, we're pretty far along in the first quarter. I'm curious what you've seen maybe from a macro perspective, whether you want to speak to kind of aggregate customer behavior or what you're seeing for Nogin specifically? And then I have a follow-up question.

所以也許首先，只有喬恩，我們在第一季度已經走了很遠。我很好奇你可能從宏觀角度看到了什麼，你是想談談某種總體客戶行為還是你對 Nogin 的具體看法？然後我有一個後續問題。

Sure. So let me touch on that in 2 different ways. So first, let me talk about new business. New business bookings is accelerating dramatically. I expect between the signings that we had last week and the ones we expect to have, again, no guarantee we're going to get them, but we're expecting to see between last week and the end of April, we should sign up as many new customers as we did in all of 2022.

當然。因此，讓我以兩種不同的方式來談一談。首先，讓我談談新業務。新業務預訂正在急劇加速。我希望在我們上週的簽約和我們期望的簽約之間，再一次，不能保證我們會得到他們，但我們預計在上周和 4 月底之間看到，我們應該簽約與我們在 2022 年全年所做的一樣多的新客戶。

So I think the bookings momentum, as we sort of alluded to in the prepared remarks is really there and accelerating. On top, we're in advanced discussions with one of the top 10 business process consultants in the world about partnering with them on both implementation as well as sales to go forward. Again, no guarantee we're going to get it signed, but certainly, we're in advanced discussions. Hopefully, it will. So we're very optimistic about the pipeline side of the business.

所以我認為預訂勢頭，正如我們在準備好的評論中提到的那樣，確實存在並且正在加速。最重要的是，我們正在與世界排名前 10 位的業務流程顧問之一進行深入討論，討論與他們在實施和銷售方面的合作，以推動未來發展。同樣，不能保證我們會簽署它，但可以肯定的是，我們正在進行高級討論。希望它會。因此，我們對業務的管道方面非常樂觀。

In terms of customer dynamics, as you know, the first quarter is the seasonally weakest quarter for us as opposed to Q4, which is seasonally strongest for customer demand in e-commerce. So it's kind of hard to baseline whether the year is going to end up based on Q1 because it is the seasonally weakest. It's certainly, there's -- as you pointed out and you know there's a lot of uncertainty in the market. But I expect that the weakness that may show up, we don't know if it will, and consumer demand should be somewhat if not completely offset, it all depends when we get our bookings by the new bookings momentum.

如您所知，就客戶動態而言，第一季度是我們季節性最弱的季度，而第四季度是電子商務客戶需求的季節性最強季度。因此，很難根據第一季度確定今年是否會結束，因為它是季節性最弱的。當然，正如你所指出的那樣，你知道市場上存在很多不確定性。但我預計可能會出現疲軟，我們不知道是否會出現，消費者需求即使不能完全抵消也應該有所抵消，這完全取決於我們何時通過新的預訂勢頭獲得預訂。

As you know, the bookings momentum, if we sign someone up in December, we'll only see -- we may see none of the revenue this year, but we should see all of it next year. So as part of it is due to timing for this year. But certainly, as I look forward -- as we move forward into not just 2023 or 2024, I see very healthy growth, thanks to the bookings, assuming it shows up. Again, no guarantees, but the initial indications are very positive. Does that answer your question?

如您所知，預訂勢頭，如果我們在 12 月簽下某人，我們只會看到 - 今年我們可能看不到任何收入，但明年我們應該會看到所有收入。因此，部分原因在於今年的時間安排。但可以肯定的是，正如我所期待的那樣——隨著我們不僅進入 2023 年或 2024 年，我看到非常健康的增長，這要歸功於預訂，假設它出現的話。同樣，沒有任何保證，但初步跡象非常積極。這是否回答你的問題？

Yes. And then maybe just, I guess, more specifically to what you've seen so far or looking forward, are you seeing growth in your GMV year-over-year through the first quarter? And just what are the guardrails or how should we think about what your maybe shorter-term expectations are for the business given we're almost through 1Q?

是的。然後，我想，更具體地說，您目前所看到的或展望的是，您是否看到第一季度的 GMV 同比增長？考慮到第一季度快結束了，護欄是什麼，或者我們應該如何考慮您對業務的短期期望是什麼？

Shahriyar, do you want to address that?

Shahriyar，你想解決這個問題嗎？

Sure. I think we're -- we've also made some decisions as we've taken a fresh look at the business and thought about some of our customers. There were some customers where we prioritize profitability over revenue growth, if you will. And so there are certain cases in which we have customers where achieving increased year-over-year comps would have come at a negative impact to profitability. And where reductions in those growth rates are maintaining year-over-year for those customers or even slight decline year-over-year for those customers was a prudent decision from a profitability and long-term perspective. That's the tack we've taken.

當然。我認為我們 - 我們也做出了一些決定，因為我們重新審視了業務並考慮了我們的一些客戶。如果您願意，我們會優先考慮一些客戶的盈利能力而不是收入增長。因此，在某些情況下，我們的客戶實現同比增長會對盈利能力產生負面影響。從盈利能力和長期的角度來看，對於這些客戶來說，這些增長率的下降與去年同期相比保持不變，甚至與去年同期相比略有下降，這是一個審慎的決定。這就是我們採取的策略。

So I think we didn't expect -- we didn't see anything. We didn't expect to see in the first quarter from an overall perspective, but we did make some intentional nuance decisions around how we ran the brands and our interactions and engagements with our customers to be mindful of profitability versus simply sales at all costs.

所以我認為我們沒有預料到——我們什麼也沒看到。從整體角度來看，我們沒想到會在第一季度看到，但我們確實圍繞我們如何經營品牌以及我們與客戶的互動和參與做出了一些有意的細微差別決定，以注意盈利能力而不是不惜一切代價簡單地銷售。

And then one thing to keep in mind, Samad, we have a fairly concentrated set of customers, as you know, we have a few that are somewhat uniquely positioned, let's put it that way. And so it's hard to project based on 1 or 2 of those, how all industry goes. If one customer of ours has a mismatch between demand and what they have in stock, that is a somewhat unique issue, not one that could be projected across all of them.

然後要記住一件事，薩馬德，我們有一組相當集中的客戶，如你所知，我們有一些有點獨特的定位，讓我們這樣說吧。因此，很難根據其中的一兩個來預測所有行業的發展情況。如果我們的一個客戶的需求與他們的庫存不匹配，這是一個有點獨特的問題，而不是一個可以預測到所有客戶的問題。

Or even the entirety of the year.

甚至全年。

Yes, absolutely.

是的，一點沒錯。

Understood. And then maybe just last question for me. Just as you think about the restructuring or the cost-saving initiatives, have we largely completed that? Is there more to go? And is there a consideration on maybe taking additional steps or just kind of where are we at in terms of headcount and cost-savings initiatives?

明白了。然後也許只是我的最後一個問題。就像您考慮重組或節省成本的舉措一樣，我們是否已經基本完成了？還有更多的事情要做嗎？是否考慮採取額外措施，或者只是考慮我們在員工人數和成本節約計劃方面的進展情況？

Go ahead, Shahriyar.

去吧，沙赫里亞爾。

Sure. So we've -- I think that we executed the majority of those items that were labor related in the Q4 period and late Q4 and throughout Q1, the actions that we took were continued benefit from efficiencies in areas which is our distribution operations, which not only lower our cost structure, but actually provide our customers with even more accelerated shipments, which, as you know, in this business is quite key.

當然。所以我們 - 我認為我們在第四季度和第四季度末以及整個第一季度執行了大部分與勞動力相關的項目，我們採取的行動繼續受益於我們分銷業務領域的效率，這不僅降低了我們的成本結構，而且實際上為我們的客戶提供了更快的發貨速度，正如您所知，這在這項業務中非常關鍵。

From then on forward, we took a variety of structural cost reductions in areas where we were able to achieve efficiencies. And that manifested itself in areas such as warehouse leases, where we were able to concentrate our footprint and better utilize our existing facilities even while we took on new customers and growth without needing those previously leased facilities. The manifestation of those cost reductions, which sum into the several hundred thousand dollars per month of incremental, are in process now, some have occurred very recently, others will continue to materialize over the course of the next 90 days, but all of them are expected to be at full run rate by the end of Q2.

從那時起，我們在能夠提高效率的領域採取了各種結構性成本削減措施。這體現在倉庫租賃等領域，我們能夠集中我們的足跡並更好地利用我們現有的設施，即使我們在不需要那些以前租賃的設施的情況下吸引新客戶和增長。這些成本削減的體現，總計每月增加數十萬美元，現在正在進行中，一些是最近發生的，其他的將在接下來的 90 天內繼續實現，但所有這些都在預計到第二季度末將達到全速運行。

Now when we find additional opportunities over the course of our daily operations, absolutely, we're always looking for areas where we can drive further efficiency that especially in combination with efficiency that drives performance improvements in our core business. And that's the way we're thinking about running the business just as a fundamental philosophy and methodology. So expect to see that we're very thoughtful about both the areas of savings and being smart about those and also very judicious and ROI driven in our investments.

現在，當我們在日常運營過程中發現更多機會時，絕對是，我們一直在尋找可以進一步提高效率的領域，尤其是結合提高核心業務績效的效率。這就是我們將經營業務視為一種基本理念和方法的方式。因此，希望看到我們對儲蓄領域非常深思熟慮，並且對這些領域很聰明，並且在我們的投資中也非常明智和投資回報率驅動。

At this time, this concludes our question-and-answer session. And I'd now like to turn the call back over to Mr. Huberman for his closing remarks.

至此，我們的問答環節到此結束。現在，我想將電話轉回給休伯曼先生，讓他發表閉幕詞。

All right. Well, thank you, everybody. I appreciate you joining and look forward to talking to you again in the not-too-distant future.

好的。嗯，謝謝大家。感謝您的加入，並期待在不久的將來再次與您交談。

Thank you for joining us today for Nogin's Fourth Quarter and Full Year 2022 Earnings Conference Call. You may now disconnect.

感謝您今天加入我們參加 Nogin 的第四季度和 2022 年全年收益電話會議。您現在可以斷開連接。