Insight Enterprises Inc (NSIT) 2024 Q4 法說會逐字稿

Hello, everyone and welcome to today's Inside Enterprises fourth quarter, 2024 operating results call.

大家好，歡迎參加今天的 Inside Enterprises 2024 年第四季營運業績電話會議。

My name is Seb and I'll be the operator for your call today.

我叫塞布，今天我將接聽您的電話。

(Operator Instructions)

（操作員指令）

I will now hand the floor to Ryan Miyasato to begin.

現在我將把發言權交給 Ryan Miyasato。

Please go ahead.

請繼續。

Welcome everyone and thank you for joining the Insight Enterprises Earnings Conference call.

歡迎大家，感謝您參加 Insight Enterprises 收益電話會議。

Today we will be discussing the company's operating results for the quarter and full year ended, December 31, 2024.

今天我們將討論該公司截至 2024 年 12 月 31 日的季度和全年的經營業績。

I'm Ryan Miyasato, Investor Relations, Director of Insight; and joining me is Joyce Mullen, President and Chief Executive Officer and James Morgado, Chief Financial Officer.

我是 Ryan Miyasato，投資者關係、Insight 總監；與我一起的還有總裁兼執行長喬伊斯·穆倫 (Joyce Mullen) 和財務長詹姆斯·莫加多 (James Morgado)。

If you do not have a copy of the Earnings release or the accompanying slide presentation that was posted this morning and filed with the Securities and Exchange Commission, Form 8-K.

如果您沒有今天早上發布並提交給美國證券交易委員會的收益報告或隨附幻燈片簡報 8-K 表格的副本。

You will find it on our website at insight.com under the Investor relations section.

您可以在我們網站 insight.com 的“投資者關係”部分找到它。

Today's call, including the question-and-answer period is being webcast live and can also be accessed via the investor relations page of our website at insight.com. An archived copy of the conference call will be available approximately two hours after completion of the call and will remain on our website for a limited time.

今天的電話會議，包括問答環節，將進行網路直播，也可以透過我們網站 insight.com 的投資者關係頁面存取。電話會議的存檔副本將在會議結束後約兩小時提供，並將在我們的網站上保留一段有限的時間。

This conference call and the associated webcast contain time sensitive information that is accurate only as of today, February 6, 2025.

本次電話會議及相關網路廣播包含時間敏感訊息，僅截至今天（2025 年 2 月 6 日）準確無誤。

This call is a property of Insight Enterprises.

此通話歸 Insight Enterprises 所有。

Any redistribution, retransmission or rebroadcast of this call in any form without the express written consent of Insight Enterprises is strictly prohibited.

未經 Insight Enterprises 明確書面同意，嚴禁以任何形式重新分發、重新傳播或重新廣播此通話。

In today's conference call, we will be referring to non-GAAP financial measures as we discuss the fourth quarter and full year 2024 Financial results.

在今天的電話會議中，我們將參考非 GAAP 財務指標來討論 2024 年第四季和全年財務表現。

When discussing non-GAAP measures, we will refer to them as adjusted.

在討論非公認會計準則指標時，我們稱之為調整後指標。

You will find a reconciliation of these adjusted measures to our actual GAAP results included in both the press release and the accompanying slide presentation issued earlier today.

您將在今天早些時候發布的新聞稿和隨附的幻燈片演示中找到這些調整後的指標與我們的實際 GAAP 結果的對帳表。

Please note that all growth comparisons we make on the call today relate to the corresponding period of last year unless otherwise noted.

請注意，除非另有說明，我們今天在電話會議上進行的所有成長比較均與去年同期有關。

Also, unless highlighted as constant currency, all amounts and growth rates discussed are in US dollar terms.

此外，除非特別強調為固定貨幣，否則討論的所有金額和增長率均以美元計算。

As a reminder, all forward-looking statements that are made during this conference call are subject to risks and uncertainties that could cause our actual results to differ materially.

提醒一下，本次電話會議中所做的所有前瞻性陳述都存在風險和不確定性，這可能會導致我們的實際結果有重大差異。

These risks are discussed in today's press release and in greater detail in our most recently filed periodic reports and subsequent filings with the SEC.

這些風險在今天的新聞稿中進行了討論，並在我們最近提交的定期報告和隨後向美國證券交易委員會提交的文件中進行了更詳細的討論。

All forward-looking statements are made as of the date of this call and except as required by law, we undertake no obligation to update any forward-looking statement made on this call, whether as a result of new information, future events or otherwise.

所有前瞻性陳述均截至本次電話會議之日，除法律要求外，我們不承擔更新本次電話會議中任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。

With that, I will now turn the call over to Joyce.

說完這些，我現在將電話轉給喬伊斯。

And if you're following along with the slide presentation, we will begin on slide four, Joyce.

如果你跟著幻燈片演示，我們將從第四張幻燈片開始，喬伊斯。

Thank you very much, Ryan.

非常感謝，瑞安。

Good morning, everyone.

大家早安。

And thank you for joining us today.

感謝您今天加入我們。

As we close out 2024, we delivered results consistent with our expectations.

隨著 2024 年的結束，我們實現了符合預期的績效。

Here are the Q4 highlights.

以下是第四季的亮點。

Gross profit was up 1% driven by a 12% increase in insight core services and modest growth in hardware and cloud partially offset by a decline in the impact of the partner program changes we've previously discussed.

毛利成長 1%，主要得益於洞察核心服務成長 12% 以及硬體和雲端運算的適度成長，但我們之前討論過的合作夥伴計畫變化影響的下降部分抵消了這一成長。

For the first time in eight quarters, Hardware gross profit grew as we drove improvement in devices.

隨著我們推動設備的改進，硬體毛利八個季度以來首次成長。

We expect client buying patterns will build during 2025.

我們預計客戶購買模式將在 2025 年形成。

Gross margin expanded 170 basis points to 21.2% and adjusted diluted earnings per share were $2.66 resulting in full year earnings per share near the high end of the range we provided in October.

毛利率擴大 170 個基點至 21.2%，調整後每股稀釋收益為 2.66 美元，使得全年每股收益接近我們 10 月提供的範圍高端。

Cash flow from operations was $215 million and we have completed the [STNA] actions discussed last quarter.

經營現金流為 2.15 億美元，我們已經完成了上個季度討論的 [STNA] 行動。

We expect approximately $25 million in annualized reductions.

我們預計年均減少金額約 2500 萬美元。

In 2024, Clients continue to exercise caution due to the macroeconomic environment which influenced their investment priorities and prolonged decision-making.

2024年，宏觀經濟環境影響了客戶的投資重點和長期決策，客戶將持續保持謹慎。

Revenue from hardware, particularly in North America declined as corporate and large enterprise clients delayed their device refresh cycle.

由於企業和大型企業客戶推遲了設備更新周期，硬體收入（尤其是在北美）出現下降。

Now expected in 2025 and 2026 commercial client demand.

目前預計 2025 年和 2026 年商業客戶的需求。

On the other hand grew, over the last three quarters.

另一方面，過去三個季度有所增長。

Partner program changes created headwinds requiring us to pivot our cloud business.

合作夥伴計畫的變化帶來了阻力，迫使我們調整雲端業務。

Despite the program changes, we had steady cash flow from cloud consumption.

儘管計劃有所變化，我們仍然從雲端消費中獲得了穩定的現金流。

We took critical steps forward with our offerings across key growth areas.

我們在關鍵成長領域的產品服務方面邁出了重要一步。

Cloud gross profit grew double digits reflecting increased demand for staff and infrastructure as a service as well as the contributions from our acquisitions.

雲端運算毛利成長了兩位數，反映了對員工和基礎設施即服務的需求增加以及我們收購的貢獻。

Inside Corp services gross profit grew double-digits driven by our acquisitions.

受收購的推動，Inside Corp 服務毛利實現了兩位數成長。

We continued building expertise and scale in areas important to our clients, particularly in TCP, ServiceNow and AWS augmenting our existing strength in Azure and we're seeing traction with our A I infrastructure offered which deliver flexible support for clients unique AI hybrid cloud and multi-cloud needs.

我們繼續在對客戶重要的領域建立專業知識和規模，特別是在 TCP、ServiceNow 和 AWS 方面，增強了我們在 Azure 方面的現有優勢，並且我們看到我們提供的 AI 基礎設施正在受到青睞，它為客戶獨特的 AI 混合雲和多雲需求提供靈活的支援。

Furthermore, we initiated structural improvements to enhance the effectiveness of the strategic areas of our business.

此外，我們也發起了結構性改進，以提高業務策略領域的有效性。

We build programs to drive cross sell and revenue synergies across our acquisitions.

我們制定計劃來推動收購過程中的交叉銷售和收入綜效。

We also accelerated the back-office integration for some of our acquisitions to drive cost synergies.

我們也加快了一些收購的後台整合，以推動成本綜效。

We launched a program focused on expanding our go to market capabilities, driving deeper collaboration with our partner ecosystem in order to gain share.

我們啟動了一項專注於擴大我們的市場進入能力的計劃，推動與我們的合作夥伴生態系統的更深入合作，以獲得份額。

We pivoted our GCP practice to align with Google's priorities focused on services, growth and profitability, which will ultimately lead to a stronger partnership and better growth opportunities for us.

我們調整了 GCP 實踐，使其與 Google 專注於服務、成長和盈利的優先事項保持一致，這最終將為我們帶來更牢固的合作夥伴關係和更好的成長機會。

Finally, we are encouraged by the bookings momentum we are seeing in the business.

最後，我們對業務預訂勢頭感到鼓舞。

We are unwavering in our commitment to become the leading solutions integrator.

我們堅定不移地致力於成為領先的解決方案整合商。

Clients across all industries, rely on our expertise to deliver solutions that will help their businesses excel and in so many cases, we are helping our clients prepare for the adoption of GenAI, already a game changer.

各行各業的客戶都依靠我們的專業知識來提供解決方案，以幫助他們的業務脫穎而出，在許多情況下，我們正在幫助我們的客戶為採用已經改變遊戲規則的 GenAI 做好準備。

The true most critical areas are first ensuring the environment is secure and second preparing the data states to make the data accessible and actionable.

真正最關鍵的領域首先是確保環境安全，其次是準備資料狀態以使資料可存取且可操作。

I will share examples of folks.

我將與大家分享一些例子。

A recent example of our security capability is the environment we delivered for a $15 billion consumer health client with over 20,000 employees.

我們安全能力的最近一個例子是我們為一家擁有 20,000 多名員工、價值 150 億美元的消費者健康客戶提供的環境。

The company was recently divested and needed to establish an entire cyber security program from scratch.

該公司最近被剝離，需要從頭開始建立整個網路安全計劃。

This meant strengthening their security posture across multiple enterprise domains almost overnight.

這意味著幾乎在一夜之間就加強了他們在多個企業領域的安全態勢。

We architected and built their cyber security program from the ground up.

我們從頭開始設計並建立了他們的網路安全計劃。

We implemented a comprehensive security as a service solution that included deploying numerous products and provided 24/7 global support.

我們實施了全面的安全即服務解決方案，其中包括部署眾多產品並提供全天候全球支援。

Additionally, we consolidated security tools conducted cloud application testing and implemented device and endpoint security measures.

此外，我們整合了安全工具，進行了雲端應用程式測試，並實施了設備和端點安全措施。

Our solution manages thousands of tickets while cutting threat detection response times in half.

我們的解決方案可管理數千張票，同時將威脅偵測回應時間縮短一半。

This comprehensive approach is an example of how we deliver immediate client value while setting the foundation for ongoing security and monitoring and resilience and preparing for an even more data and automation intensive environment.

這種綜合方法就是我們如何在為客戶帶來直接價值的同時，為持續的安全性、監控和復原能力奠定基礎，並為更資料和自動化密集的環境做好準備的一個例子。

In a very different industry, Cricket Australia oversees more than 7,000 weekly matches in major international events.

在一個截然不同的行業中，澳洲板球協會每週負責監督超過 7,000 場重大國際賽事的比賽。

They partnered with Insight and Microsoft to enhance fan engagement through AI driven solutions.

他們與 Insight 和微軟合作，透過人工智慧驅動的解決方案增強粉絲參與度。

Insights played a critical role in developing and integrating the AI insights feature in the Cricket Australia live app.

Insights 在開發和整合澳洲板球直播應用程式中的 AI 洞察功能方面發揮了關鍵作用。

This feature enables real time personalized match analysis and debuted at the Women's Ashes test in January 2024 with strong fan engagement both remotely and in stadium.

該功能可實現即時個人化比賽分析，並於 2024 年 1 月在女子灰燼杯測試賽上首次亮相，無論是遠程還是在體育場內，都吸引了大量球迷參與。

Our solution modernized their digital infrastructure.

我們的解決方案使他們的數位基礎設施實現了現代化。

We automated test previously required manual updates, delivering instant AI powered insights to millions of users.

我們自動化了先前需要手動更新的測試，為數百萬用戶提供即時的人工智慧洞察。

Key results include processing four times the previous workload at half the cost supporting millions of concurrent users and achieving full cloud adoption.

主要成果包括以一半的成本處理以前四倍的工作量、支援數百萬並髮用戶並實現全面的雲端採用。

Insight is now cricket Australia's strategic technology partner and continues to support its digital transformation.

Insight 現在是澳洲板球協會的策略技術合作夥伴，並繼續支持其數位轉型。

From architecting and establishing a security practice for a consumer health company to modernizing digital infrastructure for cricket Australia fans.

從為消費者健康公司設計和建立安全實踐到為澳洲板球愛好者實現數位基礎設施的現代化。

We demonstrate expertise in delivering impactful solutions to complex business challenges across different industries, while helping clients prepare for future technology.

我們展示了為不同行業中複雜的業務挑戰提供有效解決方案的專業知識，同時幫助客戶為未來技術做好準備。

In 2024, we received numerous Awards and Recognitions from our partners.

2024年，我們獲得了合作夥伴頒發的無數獎項和認可。

There are too many to list here but some notable partner of the year awards include those from Microsoft Google, Cisco, Dell, HP, Intel, Lenovo, Broadcom, NVIDIA, NetApp, Pure storage and others.

這裡無法一一列出，但一些值得注意的年度合作夥伴獎包括微軟谷歌、思科、戴爾、惠普、英特爾、聯想、博通、NVIDIA、NetApp、Pure Storage 等。

You can find more details in the Earnings presentation.

您可以在收益報告中找到更多詳細資訊。

Additionally, in alignment with our multi cloud strategy, Insight entered into new strategic collaboration agreements with Microsoft, Google and Amazon web services to more effectively help clients manage their cloud road map including data and AI strategies.

此外，根據我們的多雲策略，Insight 與微軟、Google和亞馬遜網路服務達成了新的策略合作協議，以更有效地幫助客戶管理他們的雲端路線圖，包括資料和人工智慧策略。

These agreements strengthen our position as a leading provider of cloud, data, AI, cyber and intelligent edge solutions.

這些協定鞏固了我們作為雲端、資料、人工智慧、網路和智慧邊緣解決方案領先供應商的地位。

Moreover, Insight has been recognized for its workplace culture from various organizations including Forbes best employers, Newsweek America's greatest workplaces and great places to work in numerous countries.

此外，Insight 的職場文化也得到了各類機構的認可，包括《富比士》最佳雇主、《新聞週刊》美國最佳職場以及許多國家最佳工作場所。

In 2024, we navigated a difficult environment and invested in our ambition to become the leading solutions integrator.

2024年，我們在艱難的環境中前行，並致力於成為領先的解決方案整合商。

Our partnerships with the world's best technology companies including Hyperscalers has never been stronger.

我們與包括 Hyperscalers 在內的全球頂尖科技公司的合作從未如此牢固。

Our solutions portfolio has never been more relevant to clients.

我們的解決方案組合從未如此貼近客戶。

The pricing and profitability initiatives that have delivered structural results and expanded adjusted EBITDA margins and we've made significant investments in our solution selling and technical capabilities.

定價和獲利措施帶來了結構性成果並擴大了調整後的 EBITDA 利潤率，並且我們對解決方案銷售和技術能力進行了大量投資。

This is a solid foundation to build upon and as we look to 2025, we expect the device refresh cycle to gain momentum throughout the year and anticipate that clients will prioritize investments in their infrastructure, particularly as servers and networking equipment age and need to be refreshed in anticipation of new workload demand.

這是一個堅實的基礎，展望 2025 年，我們預計設備更新周期將在全年獲得發展勢頭，並預計客戶將優先投資其基礎設施，特別是隨著伺服器和網路設備老化並需要更新以滿足新的工作負載需求。

We re architected our business to adapt to the partner program changes from the cloud providers by focusing on services and our corporate and mid-market clients.

我們重新建立了我們的業務，以適應來自雲端供應商的合作夥伴計劃變化，重點關注服務和我們的企業及中型市場客戶。

We expect increased traction from our clients AI investments, driving further growth opportunities and solutions services and infrastructure and as we grow products and services this year, we expect to deliver profitable growth and shareholder value.

我們預計客戶的人工智慧投資將會增加，從而推動進一步的成長機會和解決方案服務和基礎設施，隨著我們今年產品和服務的成長，我們預計將實現獲利成長和股東價值。

With that, I'll turn the call over to James to share key details of our financial and operating performance in Q4 and the full year 2024 as well as our outlook for 2025.

接下來，我將把電話轉給詹姆斯，分享我們第四季度和 2024 年全年財務和營運業績的關鍵細節以及我們對 2025 年的展望。

James.

詹姆斯。

Thank you, Joyce and good morning, everyone.

謝謝你，喬伊斯，大家早安。

Our Q4 results were in line with our expectations for the quarter.

我們的第四季業績符合我們對本季的預期。

Net revenue was $2.1 billion a decrease of 7%.

淨收入為 21 億美元，下降 7%。

The decrease was driven by a 10% decline in product primarily from continued weakness in large enterprise and corporate clients in North America.

下降的主要原因是產品銷量下降了 10%，這主要是由於北美大型企業和公司客戶持續疲軟。

Hardware revenue declined 2% and on prem software was down 23%.

硬體收入下降 2%，本地軟體收入下降 23%。

The decline in on prem software is primarily related to a partner consolidation that shifted gross product revenue to net agency services.

本地軟體的下降主要與合作夥伴合併有關，該合併將總產品收入轉移到淨代理服務。

Gross profit increased 1% reflecting the double digit insight core services growth and moderate cloud and hardware growth partially offset by declines in legacy enterprise agreements and on prem software.

毛利成長了 1%，反映了兩位數的洞察核心服務成長以及適度的雲端和硬體成長，但部分被傳統企業協定和本地軟體的下滑所抵消。

Diving a little deeper in hardware devices, gross profit was up mid-single digits while infrastructure was down mid-single digits.

深入研究硬體設備，毛利成長了中等個位數，而基礎設施則下降了中等個位數。

Insight core services gross profit was $78 million an increase of 12% driven by the benefit of our acquisitions.

Insight 核心服務毛利為 7,800 萬美元，成長 12%，這得益於收購帶來的好處。

Cloud gross profit was $125 million an increase of 3% reflecting the anniversary of the SADA acquisition and our pivot to the mid-market as well as a decline in legacy Microsoft Enterprise agreements.

雲端運算毛利為 1.25 億美元，成長 3%，反映了收購 SADA 週年紀念日和我們向中端市場的轉變，以及傳統微軟企業協議的減少。

Gross margin was 21.2% an increase of 170 basis points and reflects a higher mix of insight, core services and cloud.

毛利率為 21.2%，增加 170 個基點，反映出洞察、核心服務和雲端運算的更高組合。

Adjusted SG&A grew 8% due to onetime items as well as the impact of acquisitions.

由於一次性項目以及收購的影響，調整後的銷售、一般及行政開支增加了 8%。

This resulted in an adjusted EBITDA of $141 million a decrease of 11% while margin contracted 30 basis points to 6.8% and Adjusted Diluted Earnings per share were $2.66 down 11%.

這導致調整後的 EBITDA 為 1.41 億美元，下降 11%，而利潤率收縮 30 個基點至 6.8%，調整後每股稀釋收益為 2.66 美元，下降 11%。

The decline was due to higher SG&A expenses and an increase in interest expense from higher debt primarily related to our recent acquisitions and share buybacks partially offset by favourable tax impact.

下降的原因是銷售、一般和行政費用增加以及債務增加導致的利息支出增加，這主要與我們最近的收購和股票回購有關，但有利的稅收影響部分抵消了這一影響。

Overall, 2024 was a challenging year that fell short of our expectations entering the year.

整體而言，2024 年是充滿挑戰的一年，未能達到我們年初的預期。

Hardware growth did not materialize as expected and we absorbed changes in our cloud practice to align with key partners priorities.

硬體成長並未如預期那樣實現，我們吸收了雲端實踐中的變化以符合主要合作夥伴的優先事項。

However, there were many bright spots throughout the year that are consistent with many of our long-term goals.

然而，全年仍有許多亮點與我們的許多長期目標一致。

Gross margin expanded 210 basis points to 20.3%.

毛利率擴大210個基點至20.3%。

We continue to invest in our sales and technical talent, expanding our go to market capabilities, insight core services, gross profit grew 15% with our expanded expertise in the fastest growing areas of the market.

我們繼續投資我們的銷售和技術人才，擴大我們的市場能力，洞察核心服務，隨著我們在市場成長最快領域的專業知識不斷擴大，毛利成長了 15％。

We completed our SG&A actions and cash flow from operations was over $600 million for the second year in a row.

我們完成了銷售、一般及行政開支行動，經營活動現金流連續第二年超過 6 億美元。

Moving on to full year 2024 results, net revenue was $8.7 billion a decrease of 5%.

展望 2024 年全年業績，淨收入為 87 億美元，下降 5%。

Despite this decline, we increased gross profit by 6% and expanded gross margin by 210 basis points to 20.3%.

儘管下滑，我們的毛利仍增加了 6%，毛利率提高了 210 個基點，達到 20.3%。

Our gross profit and gross margin results were driven by cloud and services as well as our pricing and profitability initiatives.

我們的毛利和毛利率結果受到雲端和服務以及我們的定價和獲利舉措的推動。

Our cloud gross profit was $484 million.

我們的雲端運算毛利為 4.84 億美元。

An increase of 21% reflecting higher growth in SAS and infrastructure as a service.

21% 的成長反映了 SAS 和基礎設施即服務的更高成長。

Adjusted SG&A expenses grew 7% due to recent acquisitions on an organic basis SG&A declined in the year.

由於近期的有機收購，調整後的銷售、一般及行政開支增長了 7%，但今年的銷售、一般及行政開支有所下降。

Our adjusted EBITDA margin expanded 50 basis points to 6.2% and Adjusted Diluted Earnings per share were $9.68 flat over last year.

我們的調整後 EBITDA 利潤率擴大了 50 個基點，達到 6.2%，調整後每股稀釋收益與去年持平，為 9.68 美元。

For the year, we generated $633 million of cash flow from operations compared to $620 million in 2023.

今年，我們產生的營運現金流為 6.33 億美元，而 2023 年為 6.2 億美元。

As hardware growth returns in 2025, we anticipate cash flow from operations in the range of $300 to $400 million.

隨著 2025 年硬體成長的恢復，我們預計營運現金流將在 3 億至 4 億美元之間。

In 2024, we spent $200 million to repurchase shares.

2024年，我們花費2億美元回購股票。

As of the end of Q4, we have $300 million remaining for a share repurchase program.

截至第四季末，我們仍有 3 億美元用於股票回購計畫。

We intend to opportunistically repurchase shares while balancing organic and inorganic investments.

我們打算在平衡有機投資和無機投資的同時，適時回購股票。

Our adjusted return on invested capital for the trailing 12 months at the end of the year was 15.3% compared to 17.3% a year ago reflecting the recent acquisitions.

我們截至今年年底的過去 12 個月的調整後投資資本回報率為 15.3%，而一年前為 17.3%，這反映了最近的收購。

We actually in Q4 with total debt of $864 million compared to $941 million a year ago.

實際上，我們第四季的總債務為 8.64 億美元，而去年同期為 9.41 億美元。

Over the last year, we spent $470 million acquisitions, and share repurchases funded by cash flow from operations.

去年，我們花了 4.7 億美元收購和股票回購，資金來自經營活動的現金流。

As of the end of Q4, we had access to the full $1.8 billion capacity under our ABL facility of which the entire amount was available.

截至第四季末，我們可以使用 ABL 工具的全部 18 億美元容量，其中全部金額均可使用。

We have ample liquidity to meet our needs.

我們有充足的流動資金來滿足我們的需求。

We have $333 million of convertible notes outstanding that mature in February 2025, which we intend to settle by utilizing our ABL facility.

我們有 3.33 億美元的可轉換票據未償還，將於 2025 年 2 月到期，我們打算利用我們的 ABL 工具來結算。

In addition, we have associated warrants, a portion of which we will settle in Q1 and the remainder by the end of the year.

此外，我們還有相關認股權證，其中一部分我們將在第一季結算，剩餘部分將在年底前結算。

Considering the solution over a multi-year period, we expect settling the convertible notes and associated warrants will substantially lower our go forward total cost of financing and improve shareholder value.

考慮到多年的解決方案，我們預計結算可轉換票據和相關認股權證將大幅降低我們未來的總融資成本並提高股東價值。

Our presentation shows our performance through Q4, 2024 relative to the metrics that we described at our Investor Day in October 2022.

我們的演示展示了我們到 2024 年第四季的表現，相對於我們在 2022 年 10 月投資者日所描述的指標。

For 2024 here's the status cloud gross profit growth of 21%.

預計 2024 年雲毛利潤成長率為 21%。

Core services gross profit growth of 15% adjusted EBITDA margin of 6.2%.

核心服務毛利成長15%，調整後EBITDA利潤率為6.2%。

Adjusted Diluted EPS was flat.

調整後稀釋每股收益持平。

Adjusted ROIC of 15.3% and adjusted free cash flow as a percentage of adjusted net income of 173%.

調整後的 ROIC 為 15.3%，調整後的自由現金流佔調整後淨收入的百分比為 173%。

As we look to 2025, we have considered the following factors in our guidance and expect our growth, and profitability will be more heavily weighted towards the second half of the year.

展望 2025 年，我們在指引中考慮了以下因素，並預期我們的成長和獲利能力將更集中在下半年。

As a reminder in the first quarter of 2024, we delivered exceptionally strong results making comparisons in 2025 challenging.

提醒一下，在 2024 年第一季度，我們取得了異常強勁的業績，這使得 2025 年的比較具有挑戰性。

We expect hardware gross profit to grow in the mid-single digits.

我們預計硬體毛利將以中等個位數成長。

We expect the demand with our large enterprise and corporate clients to remain subdued, particularly in the first half.

我們預計大型企業和公司客戶的需求將保持低迷，尤其是在上半年。

Insight core services gross profit is expected to grow within our long-term guidance range of 16% to 20%.

Insight 核心服務毛利預計將在我們的長期指導範圍內成長 16% 至 20%。

We anticipate cloud to be flat to slightly down due to the decline of enterprise agreements and our pivot to the corporate and mid-market space.

由於企業協議的減少以及我們向企業和中端市場領域的轉變，我們預計雲端運算業務將持平或略有下降。

This includes an approximate $70 million impact from Google Enterprise resale and Microsoft Enterprise Agreements.

其中包括 Google Enterprise 轉售和 Microsoft Enterprise 協議造成的約 7,000 萬美元的影響。

Excluding this impact, we would expect cloud to grow in the mid-teens.

除去這項影響，我們預期雲量將成長至十五六成。

As we exit the year, we believe the impact will be largely behind us.

隨著今年的結束，我們相信影響將基本消失。

We continue to manage operating expenses and expect expense growth slower than gross profit.

我們繼續管理營運費用，預計費用成長將低於毛利。

Considering these factors for the full year our guidance is as follows.

考慮到這些因素，我們對全年的指導如下。

We expect to deliver gross profit growth in the low single digits and that our gross margin will be approximately 20% and we anticipate adjusted diluted earnings per share will be between $9.70 to $10.10 which includes an approximate $0.40 impact related to interest from settling the convertible notes.

我們預計毛利將以低個位數成長，毛利率將達到約 20%，我們預計調整後每股攤薄收益將在 9.70 美元至 10.10 美元之間，其中包括結算可轉換票據的利息約 0.40 美元的影響。

This guidance includes interest expense between $70 million to $75 million primarily due to higher borrowing costs associated with settling the convertible notes and associated warrants.

該指引包括 7,000 萬至 7,500 萬美元之間的利息支出，這主要是由於結算可轉換票據和相關認股權證導致的借貸成本增加。

An effective tax rate of 25% to 26% for the full year capital expenditures of $35million to $40 million and an average share count for the full year of 33 million shares including the net impact of settling convertible notes and associated warrants.

全年資本支出為 3,500 萬至 4,000 萬美元，有效稅率為 25% 至 26%，全年平均股數為 3,300 萬股，其中包括結算可轉換票據和相關認股權證的淨影響。

This outlook excludes acquisition related intangible amortization expense of approximately $74 million assumes no acquisition related severance and restructuring or transformation expenses does not contemplate any impact from tariffs and assumes no meaningful change in the macroeconomic outlook or our debt instruments.

該展望不包括約 7,400 萬美元的收購相關無形資產攤銷費用，假設沒有收購相關的遣散費和重組或轉型費用，不考慮關稅的影響，也不假設宏觀經濟前景或我們的債務工具沒有發生重大變化。

With the exception of the settlement of our convertible notes, I will now turn the call back to Joyce.

除了我們的可轉換票據的結算之外，我現在將把電話轉回給喬伊斯。

Thanks James to recap for the year.

感謝詹姆斯對這一年的總結。

We delivered positive results in strategic areas of the business.

我們在業務策略領域取得了積極的成果。

Despite a challenging environment, cloud and insight core services, gross profit grew double digits, gross margin expanded, reflecting favourable mix of cloud and insight court services and benefits from our acquisitions Adjusted EBITDA the margin expanded 50 basis points and cash flow from operations was strong at over $630 million.

儘管面臨挑戰，但雲端和洞察核心服務的毛利仍成長了兩位數，毛利率有所擴大，反映了雲端和洞察核心服務的良好組合以及我們收購帶來的好處。

As we transition into 2025, our goal remains clear to become the leading solutions integrator by consistently delivering exceptional value to our clients.

隨著我們邁入 2025 年，我們的目標依然很明確，那就是透過持續為客戶提供卓越的價值，成為領先的解決方案整合商。

The demand for transformation across cloud, data, AI and Cyber solutions is accelerating and we are uniquely positioned to capture market share as growth returns.

雲端、數據、人工智慧和網路解決方案轉型的需求正在加速，我們擁有獨特的優勢，可以在成長回歸時搶佔市場份額。

We have made structural improvements to our business in these challenging times.

在這些充滿挑戰的時期，我們對業務進行了結構性改進。

We've built discipline around our pricing and profitability initiatives.

我們圍繞定價和獲利措施建立了紀律。

Invested in our go to market teams to deliver on commitments to our partners and clients develop nearshore and offshore capabilities to better serve our clients while effectively managing costs, upgraded our E-Commerce and Cloud Commerce platforms and acquired market leading services businesses to improve our portfolio and increase cross sell opportunities.

投資我們的市場團隊來履行對合作夥伴和客戶的承諾，開發近岸和離岸能力，以更好地服務我們的客戶，同時有效地管理成本，升級我們的電子商務和雲端商務平台，並收購市場領先的服務業務，以改善我們的產品組合併增加交叉銷售機會。

I would like to thank our teammates for their unwavering commitment to our clients, partners and each other.

我要感謝我們的隊友對我們的客戶、合作夥伴和彼此的堅定承諾。

Our clients for trusting insight to help them with their transformational journeys and our partners for their continued collaboration and support in delivering innovative solutions to our clients.

我們的客戶信任我們的洞察力，幫助他們實現轉型之旅；我們的合作夥伴持續合作與支持，為我們的客戶提供創新解決方案。

This concludes my comments, and we will now open the line for your questions.

我的評論就到此結束，現在我們將開始回答大家的提問。

Thank you.

謝謝。

(Operator Instructions)

（操作員指令）

The first question is from Joseph Cardoso at JP Morgan.

第一個問題來自摩根大通的約瑟夫‧卡多佐。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good morning.

早安.

Thanks for the question.

謝謝你的提問。

You know, maybe for the first one here, just wanted to see if we can dig a little bit deeper into the cloud program changes, particularly as it relates to your Microsoft and Google businesses.

你知道，也許對於這裡的第一個問題，我們只是想看看我們是否可以更深入地了解雲端程式的變化，特別是與微軟和谷歌業務相關的變化。

Just trying to better understand like where do you guys expect the larger impact between those two businesses as it relates to the cloud headwinds that you called out for 2025.

只是想更了解，就您所預測的 2025 年雲端運算逆風而言，您認為這兩家企業之間的更大影響是什麼。

And then maybe you can just touch on the actions that you guys are taking or are going to take to kind of offset those headwinds.

然後也許你可以談談你們正在採取或將要採取的行動來抵消這些不利因素。

And then, how do you expect those to kind of ramp or unfold as we kind of progress through the quarters or years?

那麼，您預計隨著我們經歷幾個季度或幾年的發展，這些情況將如何增加或展開？

And then I have a follow up.

然後我會進行後續跟進。

Thank you.

謝謝。

Good morning, Joe. Thank you.

早安，喬。謝謝。

Yes.

是的。

So, the $70 million impact that that James has talked about is really more heavily weighted towards enterprise agreements.

因此，詹姆斯談到的 7000 萬美元的影響實際上更多地側重於企業協議。

So, that has been the biggest change, but obviously, we put them together because the Google program changes were also significant, and we talked about those fair amount last year.

所以，這是最大的變化，但顯然，我們將它們放在一起，因為谷歌計劃的變化也很顯著，我們去年就這些進行了相當多的討論。

The mitigation actions are primarily around ensuring we transition enterprise agreements in the small and medium business and corporate space into CSP agreements.

緩解措施主要是為了確保我們將中小型企業和企業領域的企業協議轉變為 CSP 協議。

And that activity has been underway for quite some time and our plan is to accelerate that activity.

這項活動已經進行了一段時間，我們的計劃是加速這項活動。

We've seen a lot of great support from Microsoft recently around making CSP the Hero Motion for that segment of business.

最近，我們看到微軟為將 CSP 打造為該業務領域的 Hero Motion 提供了大量支援。

They are very much digging into that and doubling down with us.

他們正在深入研究這一點並與我們加倍努力。

So, we're encouraged by that, and we expect to see that transition happen throughout the, actually most of the year and probably a bit into 2026 as enterprise agreements roll off.

因此，我們對此感到鼓舞，我們預計這種轉變將在整個年度的大部分時間內發生，並且可能持續到 2026 年，因為企業協議會陸續結束。

The other thing that we've done specifically, one more thing Joe. So, since this is the medium and corporate space as we call it, we have invested over the past, I don't know, decade or so in our Cloud Commerce platform.

我們具體做的另一件事，還有一件事，喬。因此，由於這是我們所說的媒體和企業領域，我們在過去十年左右的時間裡對我們的雲端商務平台進行了投資。

And obviously that digital engagement is very, very important to economically supporting those clients.

顯然，數位化參與對於在經濟上支持這些客戶非常非常重要。

And we are really excited about the improvements that we've made there, and we see really terrific customer satisfaction and renewal rates there.

我們對於在那裡取得的進步感到非常興奮，而且我們看到了非常好的客戶滿意度和續約率。

So that's, also helpful.

這也非常有幫助。

Got it.

知道了。

Thank you, Joyce.

謝謝你，喬伊斯。

And then maybe just as my follow up, and this is more on the outlook if I'm doing the back of the envelope math correctly, It looks like the implied operating margins for next year tracking a bit softer relative to 2024.

然後也許只是作為我的後續行動，如果我正確地做了信封背面的計算，這更多的是關於前景，看起來明年的隱含營業利潤率相對於 2024 年會稍微軟一些。

And maybe the better way of asking this is, it looks like OpEx is expected to outpace gross profit growth, I guess.

也許更好的問法是，我猜看起來營運支出預計將超過毛利的成長。

First am I doing the math correctly there?

首先，我的計算正確嗎？

And then if so can you maybe just touch on the drivers of the OpEx expansion?

如果可以的話，您能否簡單談談 OpEx 擴張的驅動因素？

You know, I think, over the past year or so, you kind of had this target of growing OpEx slower than gross profit growth.

你知道，我認為，在過去一年左右的時間裡，你的目標是營運支出成長速度低於毛利成長速度。

So just curious, what's driving kind of this outsized expansion over the gross profit outlook that you expect for next year?

所以我很好奇，是什麼因素推動了這種超出您預期的明年毛利前景的大幅擴張？

And then maybe, can you just share that in the context of some of the cost actions and efficiency initiatives that you've discussed in the prior quarter and obviously on this call itself and like, where are we at with those?

然後也許，您能否結合您在上一季討論過的一些成本行動和效率舉措以及顯然在這次電話會議上討論過的內容，以及我們目前處於什麼階段？

And are those fully embedded into kind of the outlook that you provided?

這些是否完全融入您提供的觀點中？

Thank you.

謝謝。

Yeah, thanks.

是的，謝謝。

Thanks Joe. But I'll start and Joyce if there's anything you'd like to add.

謝謝喬。但是，如果您想補充任何內容，我會開始，Joyce。

But a actually Joe, what we're looking at is, OpEx would grow a slightly slower than, than gross profit.

但實際上喬，我們看到的是，營運支出的成長速度將略低於毛利。

You know, and our operating leverage as the year progresses, we would, we would expect that to improve.

您知道，隨著時間的推移，我們的經營槓桿率預計會有所提高。

One of the big factors is, the program changes that, we described in terms of earlier in the year, having an impact on the operating leverage.

其中一個重要因素是，我們在今年稍早描述的計畫變更對經營槓桿產生了影響。

But as the year progresses, we should see, that improve.

但隨著時間的推移，我們應該看到，情況有所改善。

But for the full year, we would expect OpEx to grow slightly slower than, than gross profit.

但就全年而言，我們預期營運支出的成長速度將略低於毛利。

A couple of things give us, give us confidence in that first is the $25 million of actions that we've taken.

有幾件事讓我們對此充滿信心，首先就是我們已經採取的 2500 萬美元的行動。

We expect to realize that on an annualized basis in 2025.

我們預計在 2025 年實現年化目標。

Also, if you look at our headcount, our starting point is, is lower than it was.

另外，如果你看看我們的員工人數，你會發現我們的起點比以前低了。

As we enter 2024 that the headcount reductions there just to be very specific have been around support functions.

當我們進入 2024 年時，那裡的員工人數減少具體來說就是圍繞著支援職能。

We've tried to preserve capacity for for both our sales and technical technical talent.

我們一直努力保留銷售和技術人才的產能。

Also, as you look at our OpEx, our acquisitions have all either hit their anniversary date or will be hitting it shortly.

此外，當您查看我們的營運支出時，我們會發現我們的收購都已達到週年紀念日或即將達到週年紀念日。

So, you'll see a more normalized OpEx as the year progresses.

因此，隨著時間的推移，您將看到更正常化的營運支出。

Makes sense.

有道理。

Thanks James.

謝謝詹姆斯。

Appreciate the colors.

欣賞色彩。

Our next question comes from Adam Tindle at Raymond James.

我們的下一個問題來自雷蒙德詹姆斯 (Raymond James) 的亞當廷德爾 (Adam Tindle)。

Please go ahead.

請繼續。

Hi, good morning.

嗨，早安。

Thanks.

謝謝。

Joyce, I just wanted to start when you were talking about you know, a little bit of hardware growth in Q4, which is great to see some green shoots there.

喬伊斯，我只是想從你談論第四季硬體成長的情況開始，很高興看到一些復甦的跡象。

And then, as you described the device cycle, I think you mentioned, thinking that would be 2025 and 2026 which that second part was a little bit newer.

然後，正如您所描述的設備週期，我想您提到過，那將是 2025 年和 2026 年，其中第二部分稍微新一些。

To me, I guess maybe the question would be based on what you now know now and what you're seeing here at the turn of the year, you could revisit the timing and magnitude of the device cycle.

對我來說，我猜也許問題應該基於您現在所知道的內容以及您在年初所看到的情況，您可以重新審視設備週期的時間和幅度。

Yeah.

是的。

So, we had expected as you know, we had expected that that device refresh cycle to start earlier.

所以，如您所知，我們預計該設備更新周期將更早開始。

We have seen growth now, three quarters in a row in the commercial business, particularly around devices.

我們現在已經看到商業業務連續三個季度成長，尤其是設備業務。

And that generally as a precursor to other segments, we saw some nice improvement in public sector as well this quarter on the top line in particular.

整體而言，作為其他部門的先行表現，本季我們看到公共部門也取得了不錯的進步，尤其是在營收方面。

And so we think so and we're, we are feeling better about pipeline coverage when it comes to devices, etcetera.

我們也是這麼認為的，而且，當涉及到設備等時，我們對管道覆蓋範圍感覺更好。

So, we are feeling better about it.

因此，我們對此感覺好多了。

I think we have anticipated that the vast majority of the refresh would be complete by the time the Windows 11 support requirements kicked in that we're just kind of running out of time.

我認為我們已經預料到，當 Windows 11 支援要求開始時，絕大多數更新將會完成，但我們的時間已經不多了。

So, that's why we're saying it's likely to bleed over to 2026.

所以，這就是我們說它可能會延續到 2026 年的原因。

But you know, we are optimistic that we will see this improvement and we are seeing it as I said in our pipeline coverage and we're seeing it in bookings and we're also, as I said, seeing it in our commercial business and we expect that to lead through eventually to our corporate and enterprise space and we're, feeling optimistic but, we're probably a bit cautious on the speed of that just because we've been talking about it for quite some time.

但你知道，我們樂觀地認為我們將看到這種改善，正如我所說的，我們在渠道覆蓋中看到了這一點，我們在預訂中看到了這一點，我們也像我所說的那樣，在我們的商業業務中看到了這一點，我們預計這最終將延伸到我們的公司和企業領域，我們感到樂觀，但我們可能對這一速度有點謹慎，因為我們已經談論它很長一段時間了。

Understandable.

可以理解。

James maybe just as a follow up.

詹姆斯也許只是作為後續行動。

I think you've given some helpful color in terms of quantifying the various moving parts, but maybe we could just ask to sum up as we think about 2025.

我認為您在量化各個活動部件方面給出了一些有用的說明，但也許我們可以在思考 2025 年時進行總結。

You know, your EPS guidance is for modest growth which you know, in light of all the moving parts and headwinds that you're incurring is pretty commendable.

您知道，您的每股盈餘指引是適度成長，考慮到您所遇到的所有變動因素和不利因素，這是值得稱讚的。

But if you could just you kind of summarize and unpack the major buckets of headwinds, the $70 million, etcetera and tailwinds financing costs, incremental, benefit from restructuring just so we can kind of bridge or the earnings for 2025 and understand what's going on in the underlying business.

但是，如果您可以總結並解開主要的不利因素，7,000 萬美元等等，以及順風融資成本、增量、重組收益，這樣我們就可以彌補 2025 年的收益，並了解基礎業務的狀況。

And with that, if you could also maybe just touch on cash flow given, it's been so strong.

另外，如果您可以談談現金流，那麼它的表現非常強勁。

I'm wondering what we should be thinking about for 2025.

我想知道我們應該為 2025 年思考什麼。

Thanks.

謝謝。

Yeah.

是的。

Thanks.

謝謝。

Thanks Adam.

謝謝亞當。

So, in terms, in terms of headwinds, I think we called it out in the, in the prepared remarks.

因此，就逆風而言，我想我們在準備好的發言中已經提到了這一點。

First and foremost is around this, this, this pivot, we have clearly encouraging signs, but we have work to do on that side.

最重要的是，圍繞著這個，這個，這個支點，我們有明顯的令人鼓舞的跡象，但我們在這方面還有很多工作要做。

And, and so that, that's probably one of the largest headwinds that we're faced with this year.

所以，這可能是我們今年面臨的最大阻力之一。

If you go below our, EFO in interest expense is one of the items that is a headwind as well.

如果低於我們的預期，利息支出中的 EFO 也是不利因素之一。

And that is, that is really simply a factor of us, settling the convertible notes through cash and using our ABL, which, the convert today sits at a nominal rate.

也就是說，這實際上只是我們的一個因素，透過現金結算可轉換票據並使用我們的 ABL，而今天的轉換率是名義利率。

And when you, when you look at a shifting this to the ABL, that's so for plus a bit and, and so that creates a bit of a headwind.

而當您考慮將其轉移到 ABL 時，這會產生一些優勢，因此會產生一些阻力。

We have share count that off that largely offsets that though in terms of, and, and the reason for that Adam is we have warrants that are associated with this convert.

我們已經計算了股份，這在很大程度上抵消了這一點，儘管就亞當而言，原因是我們擁有與此轉換相關的認股權證。

And as we settle those warrants with cash, we're going to settle a portion of them with cash that has that has the effect of reducing our, share accounts.

當我們用現金結算這些認股權證時，我們將用現金結算其中的一部分，這樣可以減少我們的股票帳戶。

So, those sort of offset below the line tax rate it has, we had some favourable items in Q4.

因此，對於低於現行稅率的那些抵銷因素，我們在第四季度獲得了一些有利的項目。

So, we go back to our historical rate of somewhere between 2%5 and 26%.

因此，我們回到2%5至26%之間的歷史利率。

If we pop back up above the line, there are some areas that are also encouraging, it is still early, but they are encouraging, I think we've called them out in terms of, the commercial business, several quarters of growth now, you, that should move up segment into corporate and then ultimately enter enterprise, which we think there will be some, some tailwinds from that.

如果我們回到這條線上，那麼有些領域也會令人鼓舞，雖然現在還為時過早，但它們是令人鼓舞的，我認為我們已經在商業業務方面指出了它們，現在已有幾個季度的增長，這應該會上升到企業部分，然後最終進入企業，我們認為這將帶來一些順風。

And, then our services business, I would say that we're, entering the year.

然後，我想說，我們的服務業務已經進入新年。

Joyce commented on this in the prepared remarks.

喬伊斯在準備好的發言中對此發表了評論。

I think we're entering the year with the, with the best portfolio.

我認為我們正以最好的投資組合進入新的一年。

I think that we've ever had in the history of the company.

我想這是我們公司歷史上曾經有過的。

You know, and that has been bolstered by the acquisitions.

您知道，這項優勢因收購而進一步增強。

Even SADA's pivot that they've been going through.

甚至 SADA 也正在經歷這樣的轉變。

Their focus on the services business has been, quite encouraging.

他們對服務業務的關注令人十分鼓舞。

And, and so we have a had a set of tailwinds that I think will help us to offset some of the some of the headwinds that are primarily around the partner program changes.

因此，我們遇到了一系列順風，我認為這將幫助我們抵消主要圍繞合作夥伴計劃變化的一些逆風。

So, I don't know if.

所以，我不知道是否。

There's a couple of things I would add.

我想補充幾點。

So, we actually saw also, we didn't talk about it earlier, Adam, but we saw some infrastructure growth actually in the quarter which we're also encouraged by.

所以，我們實際上也看到了，亞當，我們之前沒有談論過這個，但我們在本季度實際上看到了一些基礎設施增長，這也讓我們感到鼓舞。

So, we feel like that is ripe for refresh.

因此，我們覺得現在已經到了需要更新的時候了。

There's a big bunch of aging networking and servers out there, servers actually grew double digits for us, which was, which was really terrific to see in addition to the overall and a little bit of networking growth, which is great.

目前存在大量老化的網路和伺服器，而伺服器的數量實際上為我們帶來了兩位數的成長，這真是太棒了，此外，網路數量也有所增長，這很好。

I think the cross-selling initiatives that we've, built around our, new services capabilities have really kicked in.

我認為我們圍繞新服務能力構建的交叉銷售計劃已真正發揮作用。

And so, we expect those to grow over time and then, and you know [s and] I, are going to continue to remain strong in terms of growth as part of the cloud picture.

因此，我們預計這些將會隨著時間的推移而成長，然後，你知道，我將繼續作為雲端運算的一部分保持強勁的成長勢頭。

The final thing that I just like to say is, we built a program a couple of years ago that was all about improving profitability and in our services business in particular, but also our hardware and software business that worked really, really well.

我最後想說的是，幾年前我們建立了一個項目，主要是為了提高盈利能力，特別是提高我們的服務業務的盈利能力，同時也提高了我們的硬體和軟體業務的盈利能力，這個項目的效果非常非常好。

We've applied that same approach to growth now.

現在我們採用了同樣的方法來實現成長。

And specifically, we have reduced the scope of our specialty sales team made so that they are very, focused on going very deep with technologies and expertise in areas of our business, like specifically infrastructure or like service now or like Google or like Microsoft.

具體來說，我們縮小了專業銷售團隊的範圍，以便他們非常專注於深入研究我們業務領域的技術和專業知識，特別是基礎設施或現在的服務，或像谷歌或微軟這樣的領域。

And that has helped drive a bunch of a much better alignment with our partners.

這有助於我們與合作夥伴建立更好的合作關係。

So, we're feeling like that is, is really promising as well.

所以，我們覺得這也確實是很有希望的。

So, I think all those things taken together give us the confidence to deliver this outlook that we, that what James has provided.

所以，我認為所有這些因素結合起來，給了我們信心去傳達詹姆斯所提供的這種觀點。

Thank you.

謝謝。

That, that's helpful and cash flow real quick James.

這，這很有幫助，而且現金流真的很快，詹姆斯。

Oh yeah, yeah.

噢，是的，是的。

So, cash flow, if you look at our guidance, we're returning back to the historical guide.

因此，如果您查看我們的指導，現金流就會回到歷史指導。

If you look at that as a percentage of, net income, the last couple of years, we've clearly had very, very strong cash flow.

如果將其視為淨收入的百分比，那麼過去幾年，我們的現金流顯然非常非常強勁。

It's well outside our, typical long-term guidance and that has been primarily driven by obviously improvement, some improvements in the in the cash conversion cycle.

這遠遠超出了我們典型的長期指導，這主要是由於現金轉換週期的明顯改善而導致的。

But hardware has been a key driver of that cash flow in terms of hardware being down.

但在硬體銷量下降的情況下，硬體一直是現金流的主要驅動因素。

And so, it's been a bit of a boost to cash flow as we enter 2025 and we see a return of growth in the hardware business that's going to have, that's going to bring our cash flow back into our kind of normal historical range.

因此，當我們進入 2025 年時，這對現金流來說是一個小小的推動，我們看到硬體業務將重新開始成長，這將使我們的現金流回到正常的歷史範圍內。

Got it.

知道了。

Thank you.

謝謝。

Thanks, Adam.

謝謝，亞當。

Our next question is from Anthony Lebiedzinski from Sidoti.

下一個問題來自 Sidoti 的 Anthony Lebiedzinski。

Please go ahead.

請繼續。

Good morning and thank you for taking the questions.

早上好，感謝您回答問題。

I apologize.

我很抱歉。

I joined the call a little bit late, but just overall, how should we think about the potential in existing tariffs on your business and whether how much of that uncertainty is reflected in your guidance?

我加入電話會議有點晚了，但總的來說，我們應該如何看待現有關稅對貴公司業務的潛在影響，以及這種不確定性在多大程度上反映了你們的指導意見？

Thank you, Anthony.

謝謝你，安東尼。

You know, we have modeled the tariff impact six ways to Sunday, and we are pretty clear on the impacts that would at various rates that have been sort of all over the news and trying to figure that out.

您知道，截至目前，我們已經模擬了六種關稅影響方式，我們非常清楚各種稅率帶來的影響，這些影響已經在新聞中廣泛報道，我們正在試圖弄清楚。

We've been working very, very closely with our [OEM] partners to understand the exposure of their products, which is really how the tariffs would reach our, our clients.

我們一直與我們的[OEM]合作夥伴密切合作，以了解其產品的曝光程度，這就是關稅真正影響到我們的客戶的方式。

In essence, the way we worked through this when we did this a few years ago, was we pass on the incremental cost to our clients.

本質上，幾年前我們解決這個問題的方法是將增量成本轉嫁給客戶。

So, we see generally a resulting ASP increase in whatever category is impacted.

因此，我們通常會看到，無論受影響的是哪個類別，ASP 都會導致上漲。

And right now, with the current tariffs as they stand, we don't expect much elasticity impact.

目前，以目前的關稅水平，我們預期彈性影響不會太大。

So in other words, we don't expect the 10% tariff that we know about to have a big impact on demand.

換句話說，我們預計我們所知道的 10% 的關稅不會對需求產生重大影響。

If those change those numbers change, we have a pretty good sense of what would impact that.

如果這些數字發生變化，我們就能很清楚地知道會有什麼影響。

And so our guidance, I think contemplates minimal impact from tariffs and but but contemplating the current tariffs that exist.

因此，我認為，我們的指導意見考慮到了關稅帶來的最小影響，但同時也考慮了現有的關稅。

Understood, I know it remains a dynamic situation there.

我明白，我知道那裡的情況仍然處於動態狀態。

Now, as far as the structural improvements of the business that you guys talked about, do you think there are some other opportunities or, you think you're mostly tapped out of those opportunities to, improve the structure of your business?

現在，就您們談到的業務結構改進而言，您是否認為還有其他機會，或者您認為您主要利用這些機會來改善業務結構？

Oh, we are so not tapped out.

噢，我們還沒有耗盡心力。

Anthony, if you look, I mean, we benchmark the best of the best that we can find out there in terms of profitability on hardware and software and we best mark best of the best that we can find out there in terms of profitability around services and those are our targets.

安東尼，如果你看一下，我的意思是，我們在硬體和軟體盈利能力方面對我們所能找到的最佳產品進行基準測試，我們在服務盈利能力方面對我們所能找到的最佳產品進行最佳標記，這些就是我們的目標。

So, we have a room to improve those for sure.

所以，我們肯定還有進步的空間。

And we, as James talked about, we also think a little bit of growth that we have in this plan is, is also allows us to leverage our OpEx and that should continue with more growth.

正如詹姆斯所說，我們也認為，該計劃中的一點增長也使我們能夠利用我們的營運支出，並且應該繼續實現更多的成長。

So, we have a lot of opportunity for improvement still.

因此，我們仍有許多改進的機會。

Hey, hey, Anthony, I know you didn't ask this question, but I thought I would put it out there anyway, in terms of the profile of the year, I commented on it in the prepared remarks but, and, and saying that the year would, would pan out in such a way that the second half would be stronger than the first half in particular, in particular.

嘿，嘿，安東尼，我知道你沒有問這個問題，但是無論如何我還是想把它說出來，就今年的概況而言，我在準備好的評論中對此進行了評論，並且，並且說今年將會以這樣的方式發展，即下半年將特別比上半年更加強勁。

I want to comment on Q1.

我想對問題 1 進行評論。

Our Q1, we are facing, really strong comparison from the previous year.

我們第一季面臨的情況與去年同期相比非常強勁。

We had really strong results in Q1 of '24.

我們在 2024 年第一季取得了非常強勁的業績。

And so as we think of the profile of the year and I don't use the word seasonality because I'm not quite sure we know what a normal seasonality looks like anymore, but we can comment on the profile of the year and that would be, Q1 is, is facing tough compares and we would expect that this builds as the year goes with a much stronger second half than first half.

因此，當我們思考今年的概況時，我不會使用季節性這個詞，因為我不太確定我們知道正常的季節性是什麼樣的，但我們可以對今年的概況進行評論，那就是，第一季度面臨著艱難的比較，我們預計，隨著時間的推移，下半年的表現將比上半年強勁得多。

Tough compares and an outside impact of that's the.

艱難的比較和外在的影響就是這樣的。

Program program changes.

程序程序變更。

Yes, so I understood with that.

是的，我理解。

Okay.

好的。

Alright.

好吧。

Well, but also you did say at the beginning of joy that you are seeing some solid bookings momentum in the business.

嗯，但您在一開始也確實高興地說過，您看到業務預訂量呈現穩健成長動能。

So, as far as the timing of that, when that translates to revenue, is that also you think more back half driven or is that we.

那麼，就時間而言，當其轉化為收入時，您是否也認為這更多的是由後半部分驅動的，還是由我們驅動的。

We would expect.

我們期望如此。

Sorry, we yeah, we would expect demand to improve throughout the year.

抱歉，是的，我們預計全年需求都會改善。

So yeah, James.

是的，詹姆斯。

Yeah.

是的。

.

。

Okay.

好的。

Well, thank you very much and best of luck.

好吧，非常感謝你，祝你好運。

Thank you.

謝謝。

Thank you.

謝謝。

Final reminder for any further questions, please press star one on your telephone keypad.

最後提醒一下，如果您還有其他問題，請按下電話鍵盤上的星號鍵。

Now we have no further questions on the call.

現在我們在電話中沒有其他問題了。

So, I will hand back to Joyce for any concluding or ups.

因此，我將把任何結論或補充交給 Joyce。

Thank you very much to all of you for your questions and your interest.

非常感謝大家的提問和關注。

Our clients require a trusted adviser to help them navigate this increasingly fragmented and complicated landscape.

我們的客戶需要一位值得信賴的顧問來幫助他們應對這個日益分散和複雜的環境。

And we are excited about the opportunities ahead of us and I look forward to sharing our continued progress on our journey to become the leading solutions integrator.

我們對未來的機會感到興奮，我期待分享我們在成為領先解決方案整合商的過程中不斷取得的進步。

Thank you very much operator.

非常感謝操作員。

You can close the call.

您可以結束通話。