Rimini Street Inc (RMNI) 2022 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to the Rimini Street Earnings Conference Call. (Operator Instructions) I will now turn the call over to Dean Pohl. Vice President, Investor Relations. Mr. Pohl, you may begin.

女士們先生們，下午好，歡迎參加 Rimini Street 收益電話會議。 （操作員說明）我現在將把電話轉給 Dean Pohl。投資者關係副總裁。 Pohl 先生，您可以開始了。

Thank you, operator. I'd like to welcome everyone to Rimini Street Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. On the call with me today is Seth Ravin, our CEO and President; and Michael Perica, our CFO.

謝謝你，運營商。歡迎大家參加 Rimini Street 第四季度和 2022 財年收益電話會議。今天與我通話的是我們的首席執行官兼總裁 Seth Ravin；和我們的首席財務官 Michael Perica。

Today, you issued our earnings press release for the fourth quarter and fiscal year ended December 31, 2022, a copy of which can be found on our website under Investor Relations. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in the press release. An explanation of these measures and why we believe they are meaningful, is also included in the press release under the heading About Non-GAAP Financial Measures and Certain Key Metrics.

今天，您發布了我們截至 2022 年 12 月 31 日的第四季度和財政年度的收益新聞稿，其副本可在我們網站的投資者關係下找到。新聞稿中財務報表後的表格提供了 GAAP 與非 GAAP 財務措施的調節。新聞稿中關於非 GAAP 財務措施和某些關鍵指標的標題下還包含對這些措施的解釋以及我們認為它們為何有意義的原因。

As a reminder, today's discussion will include forward-looking statements that reflect our current outlook. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made today. We encourage you to review our most recent SEC filings, including our Form 10-K filed today, for a discussion of risks that may affect our future results or stock price.

提醒一下，今天的討論將包括反映我們當前前景的前瞻性陳述。這些前瞻性陳述受風險和不確定因素的影響，可能導致實際結果與今天發表的陳述存在重大差異。我們鼓勵您查看我們最近向美國證券交易委員會提交的文件，包括我們今天提交的 10-K 表格，以討論可能影響我們未來業績或股價的風險。

Now before taking questions, we'll begin with prepared remarks. With that, I'd like to turn the call over to Seth.

現在在接受提問之前，我們將從準備好的發言開始。有了這個，我想把電話轉給賽斯。

Thank you, Dean, and thank you, everyone, for joining us today. About Rimini Street. Rimini Street is a global provider of end-to-end enterprise software support products and services. The company offers a comprehensive family of unified solutions to run, manage, support, customize, configure, connect, protect, monitor and optimize client enterprise application, database and technology software platforms.

謝謝你，Dean，也謝謝大家今天加入我們。關於里米尼街。 Rimini Street 是端到端企業軟件支持產品和服務的全球供應商。該公司提供全面的統一解決方案系列，用於運行、管理、支持、定制、配置、連接、保護、監控和優化客戶企業應用程序、數據庫和技術軟件平台。

We founded Rimini Street in 2005 to disrupt and redefine the enterprise software support market by developing and delivering innovative new solutions that fill the then unmet need in the enterprise software market. We became and remain the leading independent software support provider for Oracle and SAP products based both on the number of active clients supported and recognition by industry analyst firms.

我們於 2005 年創立了 Rimini Street，旨在通過開發和提供創新的新解決方案來滿足企業軟件市場當時未滿足的需求，從而顛覆和重新定義企業軟件支持市場。基於支持的活躍客戶數量和行業分析公司的認可，我們成為並將繼續保持領先的 Oracle 和 SAP 產品獨立軟件支持提供商。

Over the years, as our reputation for technical capability, value, innovation, responsiveness and trusted reliability grew, clients and prospects began asking us to expand the scope of our support, product and service offerings, to meet other current and evolving needs and opportunities related to their enterprise software.

多年來，隨著我們在技術能力、價值、創新、響應能力和值得信賴的可靠性方面的聲譽不斷提高，客戶和潛在客戶開始要求我們擴大我們的支持、產品和服務範圍，以滿足其他當前和不斷變化的需求和機會到他們的企業軟件。

We also heard from prospects and clients that their goals include reducing the number of IT vendors to more manageable numbers from a governance perspective with a desire to select vendors who can provide a wider scope of IT services and become true trusted partners.

我們還從潛在客戶和客戶那裡了解到，他們的目標包括從治理的角度將 IT 供應商的數量減少到更易於管理的數量，並希望選擇能夠提供更廣泛 IT 服務並成為真正值得信賴的合作夥伴的供應商。

To meet the needs of our clients and prospects and to service what we believe is a significantly expanded addressable market opportunity, we designed, developed and are now delivering a new expanded solutions portfolio for a wider array of enterprise software and new solutions for application management, security, interoperability, observability and consulting.

為了滿足我們的客戶和潛在客戶的需求，並服務於我們認為顯著擴大的可尋址市場機會，我們設計、開發並正在交付一個新的擴展解決方案組合，用於更廣泛的企業軟件和新的應用程序管理解決方案，安全性、互操作性、可觀察性和諮詢。

We also now offer an integrated package of our services as Rimini ONE, a unique end-to-end turnkey outsourcing option for Oracle and SAP landscapes designed to optimize our clients' existing technologies with a minimum 15 extended years of operating life span and enable our clients to focus their IT talent and budget on potentially higher value innovative projects that will support competitive advantage and growth.

我們現在還提供作為 Rimini ONE 的集成服務包，Rimini ONE 是一種針對 Oracle 和 SAP 環境的獨特的端到端交鑰匙外包選項，旨在優化我們客戶的現有技術，至少延長 15 年的運行壽命，並使我們的客戶將他們的 IT 人才和預算集中在潛在的更高價值的創新項目上，這些項目將支持競爭優勢和增長。

Q4 and fiscal year 2022 results. We believe the growing adoption of Rimini Street's expanded end-to-end enterprise software solutions is providing organizations the support, products and services needed to meet their current and evolving needs around their enterprise software systems and delivering even more industry-leading value, ROI and engineering capability.

第四季度和 2022 財年業績。我們相信，Rimini Street 擴展的端到端企業軟件解決方案的越來越多的採用正在為組織提供所需的支持、產品和服務，以滿足他們圍繞企業軟件系統的當前和不斷變化的需求，並提供更多行業領先的價值、投資回報率和工程能力。

We believe this was reflected in our record fourth quarter and full year revenue that exceeded guidance. Multimillion dollar sales wins in diverse industries, strong subscription renewals and extensions, increased cross-sales of our expanded portfolio solutions to existing clients and achievement of a 6% growth in our client base year-over-year to 3,020 active clients.

我們認為這反映在我們創紀錄的第四季度和全年收入超過指導。在多個行業贏得數百萬美元的銷售額，強勁的訂閱續訂和延期，增加我們擴展的產品組合解決方案對現有客戶的交叉銷售，以及我們的客戶群同比增長 6% 至 3,020 個活躍客戶。

During the quarter, we continue to make investments and execute activities we believe will improve the effectiveness of our global marketing and sales execution as the pandemic era challenges continue to diminish and our sales opportunities and pipelines increase. We believe these investments and activities will lead to reacceleration of revenue growth and increased profitability over time. We also continued scaling up our global marketing and sales campaigns to reach a wider target of prospective clients who we believe can greatly benefit from our support, products and services.

在本季度，我們繼續進行投資和執行我們認為會提高我們全球營銷和銷售執行效率的活動，因為大流行時代的挑戰繼續減少，我們的銷售機會和管道增加。我們相信，隨著時間的推移，這些投資和活動將導致收入增長重新加速並提高盈利能力。我們還繼續擴大我們的全球營銷和銷售活動，以覆蓋更廣泛的潛在客戶目標，我們相信他們可以從我們的支持、產品和服務中受益匪淺。

Since our inception in 2005, we've signed and served over 5,000 clients, including more than 180 Fortune 500 and Fortune Global 100 companies and estimate that we have helped our clients save more than $7 billion that they were able to add to cash or reinvest in their strategic priorities.

自 2005 年成立以來，我們已經簽約並服務了超過 5,000 家客戶，其中包括 180 多家財富 500 強和財富全球 100 強公司，估計我們已幫助我們的客戶節省超過 70 億美元，他們可以將這些資金增加到現金或再投資在他們的戰略重點。

Demand environment. Organizations today need to figure out how to deliver both revenue growth and increased profitability. With our expanded portfolio of enterprise software support, products and services, we now believe that any global organization with annual revenue or an operating budget of at least $200 million is very likely to have one or more opportunities for Rimini Street solutions. This is a significantly larger universe of prospective clients than Rimini Street historically targeted.

需求環境。今天的組織需要弄清楚如何實現收入增長和盈利能力的提高。隨著我們擴展的企業軟件支持、產品和服務組合，我們現在相信任何年收入或運營預算至少為 2 億美元的全球組織都極有可能擁有一個或多個 Rimini Street 解決方案的機會。與 Rimini Street 的歷史目標相比，這一潛在客戶範圍要大得多。

As I previously noted in my 2022 earnings calls, the global macroeconomic environment forced organizations to replan, rebudget and reprioritize their IT strategy, operations and staffing models. Clients and prospects needed to adjust their plans and strategies for a slower growth, higher cost environment that was going to likely last for years instead of months as originally thought post pandemic. The replanning process froze and delayed IT and IT service procurement decisions and impacted 2022 sales for many technology companies, including Rimini Street.

正如我之前在 2022 年財報電話會議中指出的那樣，全球宏觀經濟環境迫使組織重新規劃、重新預算和重新確定其 IT 戰略、運營和人員配置模型的優先級。客戶和潛在客戶需要調整他們的計劃和戰略，以應對增長放緩、成本更高的環境，這種環境可能會持續數年，而不是大流行後最初認為的數月。重新規劃流程凍結並延遲了 IT 和 IT 服務採購決策，並影響了包括 Rimini Street 在內的許多科技公司 2022 年的銷售額。

However, in the fourth quarter, we began seeing clients and prospects complete their replanning and rebudgeting projects and move forward with delayed IT and IT service procurements. Rimini Street benefited with completion of substantial contracting activity. We believe that Rimini Street is well-positioned to meet the current and evolving needs of global organizations attempting to navigate the macro environment over the coming years.

然而，在第四季度，我們開始看到客戶和潛在客戶完成了他們的重新規劃和重新預算項目，並推進了延遲的 IT 和 IT 服務採購。 Rimini Street 受益於大量承包活動的完成。我們相信，Rimini Street 能夠很好地滿足試圖在未來幾年應對宏觀環境的全球組織當前和不斷變化的需求。

Surveys confirm what we are seeing in buyer behavior, needs and our opportunity. For example, Gartner recently cut their projection of 2023 global IT spend in half. And in a sponsored survey that can be found on our website, it was found that a substantial number of IT leaders feel pressure from their Board of Directors to show increased return on IT spend, finding that a significant portion of the IT budget is allocated towards enterprise application software which does not generate a meaningful increased return to the business. The survey confirms CIOs and CTOs are reviewing the total cost of ownership associated with their purchase and operation of enterprise applications.

調查證實了我們在買家行為、需求和我們的機會中看到的情況。例如，Gartner 最近將他們對 2023 年全球 IT 支出的預測削減了一半。在我們網站上的一項贊助調查中，我們發現，相當多的 IT 領導者感受到來自董事會的壓力，要求他們提高 IT 支出的回報，他們發現 IT 預算的很大一部分分配給了企業應用軟件不會產生有意義的增加業務回報。該調查證實，首席信息官和首席技術官正在審查與其購買和運營企業應用程序相關的總擁有成本。

Even more telling, a majority of the IT leader survey seek to reduce the total cost of ownership for existing mature enterprise software by switching to third-party support programs with almost half of participants looking to outsource support and maintenance services to free up their IT teams to work on more strategic innovation-focused projects in exact alignment with Rimini Street's vision and expanded portfolio of solutions.

更有說服力的是，大多數 IT 領導者調查尋求通過轉向第三方支持計劃來降低現有成熟企業軟件的總擁有成本，近一半的參與者希望外包支持和維護服務以釋放他們的 IT 團隊致力於與 Rimini Street 的願景和擴展的解決方案組合完全一致的更具戰略性的創新項目。

Sales execution. Fourth quarter sales deals included large support transaction wins against both SAP and Oracle, significant AMS wins against IBM and other providers and sales across the full portfolio of solutions, including security, interoperability, observability and professional services. Close rates on quarter opening pipe were healthy, with strong close rates on proposals that continue to exceed 50%. Large deal execution was also healthy, closing five deals with annual fees over $1 million, an increase from the fourth quarter year-over-year.

銷售執行。第四季度的銷售交易包括與 SAP 和 Oracle 的大型支持交易勝利，AMS 與 IBM 和其他供應商的重大勝利，以及整個解決方案組合的銷售，包括安全性、互操作性、可觀察性和專業服務。季度開盤收盤率健康，提案收盤率強勁，繼續超過 50%。大型交易的執行也很健康，完成了五筆年費超過 100 萬美元的交易，比去年第四季度有所增加。

As I detailed on previous earnings calls, since June of 2022, I have reallocated and dedicated the majority of my time to improving global marketing and sales execution, maturing our service offerings and delivering innovative new marketing campaigns to a wider target buyer profile in order to build bigger pipelines globally. We continued the implementation of our successful cross-sale strategies, the guide and focus our hunter sellers our new client acquisitions to ensure we have balance between new client sales and cross-sales as our go-to-market strategy matures for growth in both opportunities.

正如我在之前的財報電話會議上詳述的那樣，自 2022 年 6 月以來，我重新分配並投入了大部分時間來改善全球營銷和銷售執行、完善我們的服務產品並向更廣泛的目標買家群體開展創新的新營銷活動，以便在全球範圍內建設更大的管道。我們繼續實施我們成功的交叉銷售戰略，引導和關注我們的獵頭賣家我們的新客戶收購，以確保我們在新客戶銷售和交叉銷售之間取得平衡，因為我們的進入市場戰略在這兩個機會的增長中成熟.

We continue to make changes that improve global marketing of our broader service offerings, ramped up a stronger global demand generation engine to accelerate pipeline growth and equip our more than 300 global revenue team members with a greater set of lead and opportunity development and closing skills.

我們繼續做出改變，以改善我們更廣泛的服務產品的全球營銷，增強更強大的全球需求生成引擎以加速渠道增長，並為我們的 300 多名全球收入團隊成員提供更多的潛在客戶和機會開發和關閉技能。

To reach even more clients and prospects, our senior executives, including myself, continue the heavy travel to participate in a growing number of successful in-person Rimini Street and third-party events and executive sales meetings with hundreds of current and prospective clients, and collaborated with regional Rimini Street management teams to set and hone the strategy for accelerated sales growth of our full portfolio of solutions.

為了接觸更多的客戶和潛在客戶，我們的高級管理人員（包括我自己）繼續長途旅行，參加越來越多的成功的 Rimini Street 和第三方活動，以及與數百名現有和潛在客戶舉行的高管銷售會議，以及與區域 Rimini Street 管理團隊合作，制定和完善戰略，以加速我們完整解決方案組合的銷售增長。

Oracle litigation update. Rimini Street and Oracle have been in litigation for more than 12 years. While the U.S. courts have confirmed long ago the third-party software support is legal, we presently have two active proceedings with Oracle, the injunction compliance dispute and Rimini II proceedings, both of which relate to the manner in which Rimini Street provides support services for certain Oracle product lines. Rimini Street is not prohibited for providing support and services for any Oracle products.

甲骨文訴訟更新。 Rimini Street 和甲骨文的訴訟已超過 12 年。雖然美國法院早就確認第三方軟件支持是合法的，但我們目前與 Oracle 有兩個正在進行的訴訟，即禁令合規糾紛和 Rimini II 訴訟，這兩個訴訟都與 Rimini Street 為客戶提供支持服務的方式有關某些 Oracle 產品線。不禁止 Rimini Street 為任何 Oracle 產品提供支持和服務。

With respect to the injunction compliance dispute, Rimini Street filed an appeal in 2022 to the Ninth Circuit of the United States Court of Appeals relating to certain rulings of the U.S. District Court. Oral arguments on the appeal were held in San Francisco on February 6, 2023, and the matter remains pending before the Court of Appeals. We believe we could have a ruling on the appeal in the second or third quarter of 2023, but the ruling could come earlier or later.

關於禁令合規糾紛，Rimini Street於2022年就美國地方法院的某些裁決向美國上訴法院第九巡迴法院提起上訴。上訴的口頭辯論於 2023 年 2 月 6 日在舊金山舉行，此案仍在上訴法院審理中。我們相信我們可以在 2023 年第二或第三季度對上訴作出裁決，但裁決可能會更早或更晚。

With respect to Rimini II, the case Rimini Street filed against Oracle in 2014, and Oracle filed counterclaims, on October 21, 2022, just days before the jury trial was set to begin, Oracle withdrew certain of its counterclaims and all of its claims against Rimini Street and against me personally as CEO for monetary relief of any kind under any legal theory in this litigation.

關於 Rimini II，Rimini Street 於 2014 年對甲骨文提起訴訟，甲骨文於 2022 年 10 月 21 日提出反訴，就在陪審團審判開始前幾天，甲骨文撤回了部分反訴以及對甲骨文的所有索賠Rimini Street 並反對我作為首席執行官個人在本訴訟中根據任何法律理論提供任何形式的金錢救濟。

Rimini Street's remaining claims and Oracle's remaining counterclaims seeking only equitable relief were tried before the court as a bench judge-only trial that began November 29, 2022 and ended December 15, 2022. The parties submitted a proposed findings of fact and conclusions of law to the District Court on February 23, 2023, and the matter remains pending before the District Court. We believe we could have a court verdict in the second or third quarter of 2023, but the verdict could come earlier or later. Please see our disclosures in the latest 10-K filing for additional information and disclosures regarding litigation with Oracle.

Rimini Street 的剩餘索賠和 Oracle 的剩餘反索賠僅尋求衡平法救濟，作為僅由法官參與的審判在法庭上進行了審理，審判時間從 2022 年 11 月 29 日開始至 2022 年 12 月 15 日結束。雙方提交了擬議的事實調查結果和法律結論2023 年 2 月 23 日向地區法院提起訴訟，此案仍在地區法院審理中。我們相信我們可以在 2023 年第二或第三季度做出法庭判決，但判決可能會更早或更晚。請參閱我們在最新的 10-K 文件中的披露，了解有關與 Oracle 訴訟的更多信息和披露。

Summary. Over the past two years, we have placed the company in a materially stronger strategic position by achieving three key goals: strengthening the balance sheet through a series of key capital market transactions; delivering major wins in our protracted litigation with Oracle; and successfully designing, developing and launching an entire portfolio of new IT support product and service solutions. We remain confident that we are continuing to take the right actions and making the right investments to reaccelerate growth, increase profitability and enhance shareholder value.

概括。在過去兩年中，我們通過實現三個關鍵目標使公司處於更加強大的戰略地位：通過一系列重要的資本市場交易加強資產負債表；在我們與甲骨文的曠日持久的訴訟中取得重大勝利；並成功設計、開發和推出一整套新的 IT 支持產品和服務解決方案。我們仍然相信，我們將繼續採取正確的行動並進行正確的投資，以重新加速增長、提高盈利能力和提高股東價值。

Now over to you, Michael.

現在輪到你了，邁克爾。

Thank you, Seth, and thank you for joining us, everyone. Q4 and fiscal 2022 results. We were pleased with our improved Q4 performance and quarterly sequential billings growth in gross margin as well as maintaining a strong revenue retention rate on subscription revenue. Revenue for the fourth quarter and the full year 2022 was a record $108.6 million and $409.7 million, respectively, a year-over-year increase of 9.4% for both periods. Clients within the United States represented 51.3% and 52.6% of total revenue for the fourth quarter and full year 2022 respectively, while international clients contributed 48.7% and 47.4% of total revenue for the fourth quarter and full year 2022, respectively.

謝謝你，賽斯，也謝謝你加入我們，大家。第四季度和 2022 財年業績。我們對第四季度業績的改善和毛利率的季度連續賬單增長以及訂閱收入保持強勁的收入保留率感到滿意。第四季度和 2022 年全年的收入分別達到創紀錄的 1.086 億美元和 4.097 億美元，兩個時期都同比增長 9.4%。美國境內客戶分別佔 2022 年第四季度和全年總收入的 51.3% 和 52.6%，而國際客戶分別佔第四季度和 2022 年全年總收入的 48.7% 和 47.4%。

Annualized recurring revenue was $420 million for the fourth quarter, a year-over-year increase of 6.9%. Revenue retention rate for service subscriptions, which makes up 98% of our revenue, was 92% with more than 80% of subscription revenue noncancelable for at least 12 months. We note that for the full year 2022, our total revenue measures on a constant currency basis was negatively impacted by 1.5% due to FX movements.

第四季度年化經常性收入為 4.2 億美元，同比增長 6.9%。占我們收入 98% 的服務訂閱的收入保留率為 92%，超過 80% 的訂閱收入在至少 12 個月內不可取消。我們注意到，對於 2022 年全年，由於外匯變動，我們以固定匯率計算的總收入指標受到 1.5% 的負面影響。

Billings for the fourth quarter were $160.4 million compared to $155.9 million for the prior year fourth quarter an increase of 2.9% year-over-year and a substantial improvement from the prior quarter's decline of 32.5%. As evidenced by the rebound in billings during the fourth quarter, we were pleased with our strong client renewal and expanding sales to existing and new clients as Seth noted. For the full year 2022, billings declined 2% year-over-year to $409.3 million.

第四季度的賬單為 1.604 億美元，而去年第四季度為 1.559 億美元，同比增長 2.9%，與上一季度 32.5% 的跌幅相比有了顯著改善。正如 Seth 指出的那樣，第四季度賬單的反彈證明了我們對我們強大的客戶續訂和擴大對現有和新客戶的銷售感到滿意。 2022 年全年，賬單額同比下降 2% 至 4.093 億美元。

DSOs improved in the fourth quarter to 72 days at quarter end compared to 83 days for the prior year-end 2021. This is a marked improvement from what we experienced during the first three quarters of 2022 where DSOs were lengthening. We believe the improvement underscores our strong client commitments to our offerings and thus experienced earlier than normal collections during our largest billings quarter of the year.

DSO 在第四季度從 2021 年年底的 83 天增加到季度末的 72 天。與我們在 2022 年前三個季度 DSO 延長的情況相比，這是一個顯著改善。我們相信，這一改進凸顯了我們對客戶對我們產品的堅定承諾，因此在我們今年最大的賬單季度期間比正常收款更早。

Gross margin was 64.5% of revenue for the fourth quarter and 62.8% for full year 2022 compared to 65.1% of revenue for the prior year fourth quarter and 63.6% for prior year 2021. We do note the gross margin improved 300 basis points quarter-over-quarter, and was in line with our guidance reflecting our conscious decision in Q3 to ramp resources and talent that would allow for leverage in the fourth quarter.

第四季度毛利率為收入的 64.5%，2022 年全年毛利率為 62.8%，而去年第四季度和 2021 年毛利率分別為 65.1% 和 63.6%。我們注意到毛利率提高了 300 個基點。超過一個季度，並且符合我們的指導意見，反映了我們在第三季度有意識地決定增加資源和人才，以便在第四季度發揮槓桿作用。

On a non-GAAP basis which excludes stock-based compensation expense, gross margin was 64.9% of revenue for the fourth quarter and 63.3% for full year 2022 compared to 65.5% of revenue for the prior year fourth quarter and 63.9% for prior year 2021.

在不包括基於股票的補償費用的非美國通用會計準則基礎上，第四季度毛利率為收入的 64.9%，2022 年全年毛利率為 63.3%，而去年第四季度毛利率為收入的 65.5%，上年同期為 63.9% 2021.

The full year gross margin declined as a result of higher cost of labor, which has been successfully offset in part by our efforts to methodically expand efficiencies and leverage through technology, process control and use of lower-cost labor geographies.

由於勞動力成本上升，全年毛利率下降，這已被我們通過技術、流程控制和使用低成本勞動力地區有條不紊地提高效率和槓桿作用的努力部分抵消。

Looking forward. For full year 2023, we expect gross margin to be in the range of 61% to 62% of revenue on a GAAP basis, and 61.6% to 62.6% of revenue on a non-GAAP basis.

期待。對於 2023 年全年，我們預計毛利率在 GAAP 基礎上佔收入的 61% 至 62%，在非 GAAP 基礎上佔收入的 61.6% 至 62.6%。

Operating expenses. Like other organizations globally, we are experiencing cost pressures due in large part to increased labor costs and inflation in all labor categories. To address this, during the first quarter of 2023, we implemented a restructuring with a reduction in force to offset the increased costs, allowing us to maintain profitability and freeing up funds to target skill sets needed to drive growth. These initiatives, excluding the onetime charges will result in approximately $15 million of annualized savings.

營業費用。與全球其他組織一樣，我們正面臨成本壓力，這在很大程度上是由於所有勞動力類別的勞動力成本增加和通貨膨脹。為了解決這個問題，在 2023 年第一季度，我們實施了重組，裁員以抵消增加的成本，使我們能夠保持盈利能力，並騰出資金用於推動增長所需的技能組合。這些舉措，不包括一次性費用，每年將節省大約 1500 萬美元。

Sales and marketing expenses as a percentage of revenue was 36.1% of revenue for the fourth quarter and 34.9% for full year 2022 compared to 32.7% of revenue for the prior year fourth quarter and 34.3% for prior year 2021. On a non-GAAP basis, which excludes stock-based compensation expense, sales and marketing expenses as a percentage of revenue was 35.4% of revenue for the fourth quarter and 34.1% for full year 2022 compared to 32% of revenue for the prior year fourth quarter and 33.5% for prior year 2021. We remain focused on making the appropriate investments needed to capitalize on our growth opportunities and thus see full year 2023 sales and marketing expenses to be in the range of 34.5% and to 35.5% on a GAAP basis and 33.5% to 34.5% on a non-GAAP basis.

銷售和營銷費用佔收入的百分比第四季度為 36.1%，2022 年全年為 34.9%，而去年第四季度為 32.7%，上年 2021 年為 34.3%。在非公認會計原則下基礎上，不包括基於股票的補償費用，銷售和營銷費用佔收入的百分比為第四季度收入的 35.4% 和 2022 年全年的 34.1%，而去年第四季度佔收入的 32% 和 33.5%上一年的 2021 年。我們仍然專注於進行必要的適當投資，以利用我們的增長機會，因此預計 2023 年全年的銷售和營銷費用將在 GAAP 基礎上的 34.5% 至 35.5% 和 33.5% 至按非 GAAP 計算為 34.5%。

General and administrative expenses as a percentage of revenue, excluding outside litigation costs, was 16.7% of revenue for the fourth quarter and 18.4% for full year 2022 compared to 15.6% of revenue for the prior year fourth quarter and 17.1% for prior year 2021. On a non-GAAP basis, which excludes stock-based compensation expense, G&A was 15.6% of revenue for the fourth quarter and 17% for full year 2022 compared to 14% of revenue for the prior year fourth quarter and 15.7% for prior year 2021.

一般和行政費用佔收入的百分比，不包括外部訴訟費用，第四季度佔收入的 16.7%，2022 年全年佔收入的 18.4%，而去年第四季度佔收入的 15.6%，2021 年佔上一年收入的 17.1% . 在不包括基於股票的補償費用的非 GAAP 基礎上，G&A 第四季度佔收入的 15.6%，2022 年全年佔收入的 17%，而去年第四季度佔收入的 14%，上一季度佔收入的 15.7% 2021 年。

Outside of the onetime expenses that occurred in the period, the G&A line continues to be higher our peers due in material part to the cost for in-house legal and compliance teams and other costs necessary made by our ongoing Oracle litigation and our conscious decision throughout 2022 to continue making investment in the systems, process and talent infrastructure needed to support our long-term growth objectives.

除了在此期間發生的一次性費用之外，G＆A 線繼續高於我們的同行，這在很大程度上是由於內部法律和合規團隊的成本以及我們正在進行的 Oracle 訴訟和我們自始至終的有意識決定所產生的其他必要成本2022 年繼續對支持我們長期增長目標所需的系統、流程和人才基礎設施進行投資。

Nonetheless, given that the majority of this investment is behind us and our aforementioned restructuring efforts, we see full year 2023 G&A expenses declining as a percentage of revenue and thus to be in the range of 17% to 18% on a GAAP basis and 15.4% to 16.4% on a non-GAAP basis.

儘管如此，鑑於這項投資的大部分已經落後以及我們上述的重組努力，我們預計 2023 年全年 G&A 費用佔收入的百分比將下降，因此按 GAAP 計算將在 17% 至 18% 和 15.4% 之間% 至 16.4%（按非 GAAP 計算）。

Net outside litigation expense was $12.8 million for the fourth quarter and was $25.3 million for the full year 2022. This year's fourth quarter and full year 2022 had elevated costs due primarily to Oracle litigation costs from the Rimini II [case bench] trial completed during December 2022. We had expected the trial to occur during fiscal year 2023 and we were required to move these costs into 2022. Accordingly, for full year 2023, we expect outside litigation expense to moderate to the $10 million level.

第四季度的淨外部訴訟費用為 1280 萬美元，2022 年全年為 2530 萬美元。今年第四季度和 2022 年全年的成本增加主要是由於甲骨文在 12 月完成的 Rimini II [案例] 審判的訴訟費用2022 年。我們曾預計審判將在 2023 財年進行，我們需要將這些費用轉移到 2022 年。因此，對於 2023 年全年，我們預計外部訴訟費用將降至 1000 萬美元的水平。

Earnings for the fourth quarter and the full year 2022 were impacted by the elevated litigation expense and during the fourth quarter we also incurred lease impairment charges of $3 million and reorganization charges of $2.5 million. For the fourth quarter, the net loss attributable to shareholders was $5.3 million or negative $0.06 per diluted share and for the full year 2022 was a loss of $2.5 million or $0.03 negative per diluted share. On a non-GAAP basis, net income for the fourth quarter was $15.3 million, while positive $0.17 per diluted share, and for the full year 2022 was $39.2 million or positive $0.44 per diluted share.

第四季度和 2022 年全年的收益受到訴訟費用增加的影響，第四季度我們還產生了 300 萬美元的租賃減值費用和 250 萬美元的重組費用。第四季度，股東應占淨虧損為 530 萬美元或攤薄後每股虧損 0.06 美元，2022 年全年虧損 250 萬美元或攤薄後每股虧損 0.03 美元。按非美國通用會計準則計算，第四季度淨收入為 1530 萬美元，攤薄後每股收益為正 0.17 美元，2022 年全年淨收益為 3920 萬美元，攤薄後每股收益為正 0.44 美元。

Adjusted EBITDA was $18.3 million for the fourth quarter or 17% of revenue. And for the full year 2022 was $52.3 million or 13% of revenue compared to $19.3 million for the prior year fourth quarter and $55.8 million for the full year 2021. Our non-GAAP operating margin, which excludes outside litigation spend and stock-based compensation remained in the double digits at 14% of revenue for the fourth quarter and 12% for the full year 2022.

第四季度調整後的 EBITDA 為 1830 萬美元，佔收入的 17%。 2022 年全年為 5230 萬美元，佔收入的 13%，而去年第四季度為 1930 萬美元，2021 年全年為 5580 萬美元。我們的非 GAAP 營業利潤率，不包括外部訴訟支出和基於股票的薪酬第四季度收入佔收入的 14%，2022 年全年收入佔 12%，保持兩位數增長。

Balance sheet. We ended the fiscal year with a cash balance of $109 million, plus investments of $20 million, consisting of short-term treasuries and agency securities, bringing readily available cash to $129 million compared to $120 million for the prior fiscal year end.

資產負債表。我們在本財政年度結束時的現金餘額為 1.09 億美元，外加 2000 萬美元的投資，包括短期國債和機構證券，使可用現金達到 1.29 億美元，而上一財政年度末為 1.2 億美元。

On a cash flow basis, for the fourth quarter, operating cash flow declined $1.9 million, and year-to-date, we generated $34.9 million compared to $19.1 million for the prior year fourth quarter and $56.9 million full year 2021.

在現金流的基礎上，第四季度的經營現金流減少了 190 萬美元，年初至今，我們產生了 3490 萬美元，而去年第四季度為 1910 萬美元，2021 年全年為 5690 萬美元。

In addition to the FX headwinds noted that has impacted our cash flow, we have also experienced lower advanced payments for clients, both new and existing, as the overall inflationary environment is leading to a broad-based shift towards clients retaining cash for their own short-term investment opportunities and the presentation of cash.

除了注意到影響我們現金流的外匯逆風外，我們還遇到了新客戶和現有客戶的預付款減少，因為整體通脹環境導致客戶廣泛轉向為自己的空頭保留現金- 定期投資機會和現金列報。

Deferred revenue as of December 31, 2022, was approximately $300 million, unchanged from the prior year fourth quarter.

截至 2022 年 12 月 31 日的遞延收入約為 3 億美元，與去年第四季度持平。

Backlog, which includes the sum of billed deferred revenue and noncancelable future revenue, was approximately $578 million as of December 31, 2022 compared to $593 million for the prior year fourth quarter.

截至 2022 年 12 月 31 日，積壓訂單（包括已開票的遞延收入和不可取消的未來收入之和）約為 5.78 億美元，而去年第四季度為 5.93 億美元。

Capital Markets transactions. During fiscal year 2022, we repurchased $4.7 million of our outstanding common stock with an average price of $5.56 per share and we reduced the principal balance on our term loan from $88 million to $78 million through amortization payments of $4.5 million and a voluntary principal payment of $5 million, resulting in a year-end net cash position of $51 million.

資本市場交易。在 2022 財年，我們以每股 5.56 美元的平均價格回購了 470 萬美元的已發行普通股，我們通過 450 萬美元的攤銷付款和自願本金支付將定期貸款的本金餘額從 8800 萬美元減少到 7800 萬美元500 萬美元，年末淨現金頭寸為 5100 萬美元。

Also relating to the term loan, during May of 2022, we swapped a floating rate of the term loan to a fixed rate of $40 million of a loan, and we are further offsetting debt service costs by investing excess cash at favorable short-term fixed income rates.

同樣與定期貸款有關，在 2022 年 5 月，我們將浮動利率的定期貸款換成了 4000 萬美元的固定利率貸款，我們通過將多餘現金投資於有利的短期固定利率進一步抵消償債成本收入率。

In addition, we amended our credit facility in February 2023 to convert the loan reference interest rate from LIBOR to SOFR and amended the definition of consolidated EBITDA to provide an add-back of certain costs and legal fees. These actions reflect the strong support of our credit partners.

此外，我們於 2023 年 2 月修改了信貸額度，將貸款參考利率從 LIBOR 轉換為 SOFR，並修改了綜合 EBITDA 的定義，以增加某些成本和法律費用。這些行動反映了我們信貸合作夥伴的大力支持。

Lastly, I would also like to note that on October 10, 2022, all 14.7 million of the $11.50 exercise price warrants expired.

最後，我還想指出，2022 年 10 月 10 日，11.50 美元行權價認股權證中的 1470 萬份全部到期。

Business outlook. We are currently providing first quarter 2023 revenue guidance to be in the range of $101 million to $103 million, full year 2023 revenue guidance to be in the range of $420 million to $430 million and full year 2023 adjusted EBITDA guidance to be in the range of $52 million to $58 million.

商業前景。我們目前提供的 2023 年第一季度收入指引在 1.01 億美元至 1.03 億美元之間，2023 年全年收入指引在 4.2 億美元至 4.3 億美元之間，2023 年全年調整後的 EBITDA 指引在以下範圍內5200 萬至 5800 萬美元。

This concludes our prepared remarks. Operator, we'll now take questions.

我們準備好的發言到此結束。接線員，我們現在開始提問。

(Operator Instructions) First question today will come from Jeff Van Rhee with Craig Hallum.

（操作員說明）今天的第一個問題將來自 Jeff Van Rhee 和 Craig Hallum。

Congrats, those are very good numbers top line and elsewhere. Seth, maybe just start on the obvious, the billings turned around pretty dramatically and it sounds like you're maybe getting a little more confident that consumers have come out of the sort of the deer in headlights mode and are now purchasing your solution again.

恭喜，這些都是頂線和其他地方非常好的數字。賽斯，也許只是從顯而易見的事情開始，賬單的變化非常顯著，聽起來你可能更有信心消費者已經擺脫了前燈模式下的那種鹿，現在再次購買你的解決方案。

Contrast that with the guide because you've got a fairly conservative Q1 number that's down meaningfully sequentially and for the year still implies not a lot of follow through. So talk about whether or not there were some things in Q4 that you see as onetime, maybe the health of the pipe and how that reflects in your '23 outlook.

將其與指南進行對比，因為您得到了一個相當保守的第一季度數字，該數字按順序有意義地下降，並且今年仍然意味著沒有太多跟進。因此，談談您認為第四季度是否有一些事情是一次性的，也許是管道的健康狀況，以及這如何反映在您的 23 年展望中。

Sure, thanks, Jeff. I mean, clearly, we expect your first question to be about the guidance. Look, I think we're going to continue to play a conservative guidance position. As you know, one of the bigger challenges for us as being a 5-year public company has been that we haven't been able to yet have a reliable beat-and-raise cadence. It's something that's very, very in focus for us. I think you saw that we started to turn around the numbers that we had even through the third quarter and then more into the fourth quarter.

當然，謝謝，傑夫。我的意思是，很明顯，我們希望您的第一個問題與指南有關。看，我認為我們將繼續保持保守的指導立場。如您所知，作為一家成立 5 年的上市公司，我們面臨的更大挑戰之一是我們還無法擁有可靠的擊敗和提升節奏。這是我們非常非常關注的事情。我想你已經看到我們開始扭轉我們甚至在第三季度的數字，然後更多地進入第四季度。

We weren't able to affect those billings in the third quarter, which, as you know, is why we made changes to management structures and retook the helm on sales and marketing in the third quarter. But I think, again, just consider a conservative guidance, obviously, we're very confident in the business. That's why you saw us finally adding adjusted EBITDA into our guidance, and we're going to continue to stay conservative. I wouldn't read anything more into it than that. We sure hope to put everyone into a beat and raise mode, and that we wanted to make sure that folks don't get out ahead of the business. We did see good pickup in the fourth quarter as you mentioned.

我們無法在第三季度影響這些賬單，正如你所知，這就是為什麼我們在第三季度改變了管理結構並重新掌舵銷售和營銷。但我認為，再次考慮保守的指導，顯然，我們對業務非常有信心。這就是為什麼你看到我們最終將調整後的 EBITDA 添加到我們的指導中，我們將繼續保持保守。我不會讀更多的東西。我們當然希望讓每個人都進入節拍和加薪模式，並且我們希望確保人們不會在業務之前退出。正如您提到的，我們確實在第四季度看到了良好的回升。

We suspected that customers would finish that rebudgeting, replanning cycle with the changes of the economic picture looking like a multiyear versus a multi-month event. And I think that we expect that to continue, but we live in a pretty volatile world. And I think we wanted to make sure that we stay on this side of conservatism. And as we feel better about the year and what's happening, hopefully, we're in a position to, again, affect that beat and raise component.

我們懷疑客戶會隨著經濟形勢的變化完成重新預算、重新計劃的周期，這看起來像是一個多年而不是幾個月的事件。而且我認為我們希望這種情況會繼續下去，但我們生活在一個非常動蕩的世界中。我認為我們想確保我們站在保守主義的這一邊。隨著我們對這一年和正在發生的事情感覺更好，希望我們能夠再次影響節拍和提高部分。

You've been working really hard, I know, to get sales and marketing and everything associated kind of where you want it, again to that billings improvement this quarter. How do you think about -- I know you don't give quarterly guidance, I'll just broadly speaking. Do you think you can continue to accelerate that billings growth? You got back into positive territory much quicker than I thought you would, given what you're doing in sales.

我知道，您一直在非常努力地工作，以使銷售和市場營銷以及與您想要的相關的一切都達到您想要的效果，這再次使本季度的賬單有所改善。你如何看待——我知道你不會給出季度指導，我只是籠統地說。您認為您可以繼續加快比林斯的增長嗎？鑑於您在銷售方面所做的工作，您比我想像的要快得多地回到積極的領域。

Can we get to high single digit, low double digit and stay there for the rest of the year? Or I guess the embedded question is also just a little color commentary on how far you are with the sales realignment and how much more is yet to go.

我們能否達到高個位數，低兩位數並在今年餘下的時間裡保持不變？或者我猜嵌入式問題也只是關於您在銷售調整方面的進展情況以及還有多少進展的一些顏色評論。

I feel very, very good where we are in sales globally. I think we still have work to do in the Americas. As you know, that's been our focus. It was our focus for the last couple of years. There are definitely some great transactions happening in the Americas. I also think that look at our -- the tenure of our sellers is increased. A lot of them have now achieved their 12 months and some of them even their 18 months. And we know that's an important fulcrum point from performance. And we're seeing it. They're getting better at doing deals, and they're doing broader deals across the product lines. And I think you saw all of that take place in Q4.

我感覺我們在全球範圍內的銷售情況非常非常好。我認為我們在美洲仍有工作要做。如您所知，這是我們的重點。這是我們過去幾年的重點。美洲肯定發生了一些大交易。我還認為，看看我們的 - 我們賣家的任期增加了。他們中的許多人現在已經滿 12 個月了，有些甚至滿了 18 個月。我們知道這是性能的一個重要支點。我們正在看到它。他們越來越擅長做交易，而且他們正在跨產品線做更廣泛的交易。而且我認為您看到所有這些都發生在第四季度。

So from a projection standpoint, we have no reason to believe that we're not going to do anything but get better. The structural issues that I stepped into effect and make changes on, we've done. I feel really good about where we are. I think that we've held it around just shy of 80 sales reps as we said we were going to do, while we continue to focus on performance on a rep-by-rep basis. And our close rates were strong.

因此，從預測的角度來看，我們沒有理由相信我們只會變得更好。我介入並做出改變的結構性問題，我們已經完成了。我對我們所處的位置感覺非常好。我認為，正如我們所說的那樣，我們已經將其保持在 80 名銷售代表左右，同時我們繼續關注每個代表的績效。我們的收盤價很高。

Our close rates on the proposals, as I mentioned, north of 50%, again, very strong. So I think we're seeing all the factors we would want for accelerating growth and creating an accelerating growth environment, including those pipeline growth. So I think all those factors, and if we see the economics hold, I'm actually in Singapore today, I've been down in Asia for over a month, meeting literally hundreds of customers and prospects. And I can tell you that the feeling that we have the right mix of product, services and solutions today with a wider breadth, I feel very, very confident that we're going to be in that growth trajectory. So let's keep the guidance conservative. And so again, we don't get out ahead of ourselves. But again, beat and raise is the cadence we want.

正如我所提到的，我們對提案的收盤率超過 50%，再次非常高。因此，我認為我們正在看到加速增長和創造加速增長環境所需的所有因素，包括那些管道增長。所以我認為所有這些因素，如果我們看到經濟狀況，我今天實際上在新加坡，我已經在亞洲待了一個多月，會見了數百名客戶和潛在客戶。我可以告訴你，我們今天擁有更廣泛的產品、服務和解決方案的正確組合的感覺，我感到非常、非常有信心我們將走上增長軌道。因此，讓我們保持保守的指導。再說一次，我們不會超越自己。但同樣，擊敗和加註是我們想要的節奏。

Maybe a quick one for you, Michael. On the gross margin side, on the non-GAAP, you're guiding 61.6 to 62.6, so call it 62 at the mid roughly. You put up higher than that obviously '22. Two questions, what are the puts and takes there? Why the decline? And then also the longer-term model previously issued was for mid-60s gross margin. So what are the drivers for lower gross margin? And is that mid-60s still the valid target for the target model?

也許對你來說是一個快速的，邁克爾。在毛利率方面，在非 GAAP 上，您將 61.6 引導至 62.6，因此大致將其稱為中間值 62。你提出的明顯高於'22。兩個問題，那裡的 puts 和 takes 是什麼？為什麼下降？然後之前發布的長期模型也是針對 60 年代中期的毛利率。那麼，毛利率下降的驅動因素是什麼？ 60 年代中期仍然是目標模型的有效目標嗎？

Thanks, Jeff. And certainly, I would like to reiterate comfort with our long-term model. What we're seeing with regard to our mix, you've seen a lot of the press on the introductions, it was a heavy investment year. We believe we have the majority of that behind us through Q3. We saw the leverage in Q4. So conservatism, I would highlight similar to Seth noted on the top line relative to the gross margin, but certainly nothing that gives us any concern with our ability to meet our long-term and intermediate-term targets.

謝謝，傑夫。當然，我想重申對我們的長期模型感到滿意。我們所看到的關於我們的組合，你已經看到了很多關於介紹的媒體，這是一個沉重的投資年。我們相信，在第三季度，我們已經完成了其中的大部分工作。我們在第四季度看到了槓桿作用。所以保守主義，我會強調類似於 Seth 在毛利率方面提到的頂線，但肯定不會讓我們擔心我們實現長期和中期目標的能力。

And, Jeff, to add on that, you look at the gross margin, I mean, we kept it above 60%. While we built out an entire suite of products on our own capital, and of course, you're going to take some hits in the gross margin, but if you look at it, we've kept it within 1 to 2 percentage points of revenue for that investment. So we've managed it, I think, very, very well to get everything done that we're doing. And the -- when you talked about the puts and takes on the margin, one of the -- that we're giving up a little bit is we've got new products.

而且，傑夫，補充一下，你看看毛利率，我的意思是，我們將其保持在 60% 以上。雖然我們用自己的資金打造了一整套產品，當然，您的毛利率會受到一些影響，但如果您看一下，我們將其保持在 1 到 2 個百分點以內該投資的收入。所以我們已經做到了，我認為，非常非常好地完成了我們正在做的一切。而且 - 當你談到看跌期權並承擔保證金時，其中一個 - 我們放棄了一點是我們有新產品。

Our AMS product line, we have hundreds of employees and you're going to have a much lower initial gross margin on that until we hit scale. We believe that once we hit $1 billion in revenue, we will achieve the scale across all those product lines. And that's why that mid-60s gross margin target is absolutely still the model.

我們的 AMS 產品線，我們有數百名員工，在我們達到規模之前，您的初始毛利率要低得多。我們相信，一旦我們的收入達到 10 億美元，我們將實現所有這些產品線的規模。這就是為什麼 60 年代中期的毛利率目標絕對仍然是模型。

Our next question today will come from Brian Kinstlinger with Alliance Global Partners.

我們今天的下一個問題將來自 Alliance Global Partners 的 Brian Kinstlinger。

My first question, it's some follow-ups to the questions already asked. Let's start with the quarter's revenue. Sequential growth was the strongest -- well let me say it this way.

我的第一個問題，是對已經提出的問題的一些跟進。讓我們從本季度的收入開始。連續增長是最強勁的——讓我這樣說吧。

Since 2017, you only had one quarter with a sequential growth of $7 million, and that was in, I believe, the fourth quarter of 2019 when you won one of your largest customers. So can you first help us understand what drove the sequential revenue growth? Is it one large customer? Is it lots of new customers? Is it some customers' work turned off and got turned back on? Just trying to understand. Or is there a nonrecurring piece that's unusual this quarter?

自 2017 年以來，您只有一個季度實現了 700 萬美元的連續增長，我相信那是在 2019 年第四季度，當時您贏得了最大的客戶之一。那麼您能否首先幫助我們了解是什麼推動了連續的收入增長？它是一個大客戶嗎？新客戶多嗎？是否某些客戶的工作已關閉並重新打開？只是想了解。或者本季度是否有不尋常的非經常性項目？

Sure, Brian. I think you have a few things that came to effect One, we had a really good, very strong renewals year. The fourth quarter was strong, and I think for a lot of the same reasons as the sales were frozen, remember, we talked about two sides of the coin. If people aren't doing anything, part of what they're not doing is even switching off of our service to a next generation or any kind of evolution there. And so you saw a lot of customers who had plans to make changes to their systems and they didn't. They extended their contracts instead.

當然，布賴恩。我認為你有幾件事已經產生了影響 第一，我們有一個非常好的、非常強大的續約年。第四季度表現強勁，我認為出於很多與銷售凍結相同的原因，請記住，我們談到了硬幣的兩面。如果人們沒有做任何事情，那麼他們沒有做的部分事情甚至是關閉我們對下一代或那裡任何形式的進化的服務。所以你看到很多客戶計劃對他們的系統進行更改，但他們沒有。相反，他們延長了合同。

So it gave you a very strong renewals. And at the same time, we had a lot of those held up deals freed up. We also saw them free up earlier in the quarter, which gave us a revenue pickup versus plan. Because we did get that done earlier we got more days of earned revenue.

所以它給了你一個非常強大的更新。與此同時，我們釋放了很多被擱置的交易。我們還看到它們在本季度早些時候釋放出來，這使我們的收入比計劃有所增加。因為我們確實更早地完成了這項工作，所以我們獲得了更多的收入天數。

So I think that, plus, as you know, our fourth quarter tends to have a certain amount of revenue holdback that's released because of the way the contracting cycles work. And as you know, we're doing bigger contracts, more global contracts, which gives them more attributes that can hold back revenue or delay revenue rack. And we've traditionally, as you've seen over the last few years, had a bit of a pickup in the revenue due to those holdbacks in the fourth quarter. So I think a combination of those items came together to give us the sequential increase.

所以我認為，另外，正如你所知，由於合同周期的運作方式，我們的第四季度往往會有一定數量的收入滯留。如您所知，我們正在簽訂更大的合同，更多的全球合同，這為他們提供了更多可以阻礙收入或延遲收入的屬性。正如您在過去幾年中看到的那樣，傳統上，由於第四季度的這些阻礙，我們的收入有所回升。所以我認為這些項目的組合在一起給了我們連續的增長。

And just to be clear, you're talking about strong renewals. I'm trying to reconcile how that helps grow revenue further. Is there price increases? Are there price declines? Is it -- or were you assuming more churn?

需要明確的是，你說的是強勁的續約。我試圖調和這如何幫助進一步增加收入。有漲價嗎？有價格下跌嗎？是 - 還是您假設有更多客戶流失？

I think we were assuming a little more churn than we saw. We saw, again, for those reasons, customers extending they're driving more value out of their systems. So our basic thesis not only held but improved even over the last few quarters. Whenever we have volatility in the markets, Rimini Street remains a strong player because of our ability to optimize spend and we help customers spend their money better. And we now have more services to meet those needs in different areas.

我認為我們假設的流失率比我們看到的要多一些。我們再次看到，由於這些原因，客戶擴展他們正在從他們的系統中獲得更多價值。因此，我們的基本論點在過去幾個季度不僅成立而且有所改進。每當市場出現波動時，Rimini Street 始終是強大的參與者，因為我們有能力優化支出並幫助客戶更好地花錢。我們現在有更多的服務來滿足不同領域的這些需求。

So the combination of that, again, I think, is why you hear the level of optimism, not only as we were talking about through the fourth quarter, but as we see in the results. And while, again, while we're playing a conservative number, in our guidance, you're hearing a lot of confidence that we believe we fixed the issues internally and people are adopting our products.

因此，我認為，這兩者的結合就是為什麼你會聽到樂觀情緒的原因，不僅是因為我們在第四季度一直在談論，而且正如我們在結果中看到的那樣。雖然，再次，當我們打一個保守的數字時，在我們的指導中，你會聽到很多信心，我們相信我們在內部解決了這些問題，人們正在採用我們的產品。

They're adopting a wider set of them. And we're seeing that at the pipeline level. We're seeing it at the closing level. And we have sales reps who could do a better job of getting out and closing business. So I think you add all those factors together, they started in the third quarter. You saw the negative billings growth in the third quarter because that was already set in the mold. When you have a 6- to 9-month sales cycle on your primary product, you're not going to turn the ship that fast.

他們正在採用更廣泛的一組。我們在管道級別看到了這一點。我們在收盤價看到它。我們有銷售代表，他們可以更好地完成退出和關閉業務的工作。所以我認為你將所有這些因素加在一起，它們從第三季度開始。您在第三季度看到了負的賬單增長，因為這已經定型了。當您的主要產品有 6 到 9 個月的銷售週期時，您不會那麼快地轉向。

But we said on the third quarter call that we should start to see some results of that work coming in the fourth quarter, and we should see that hopefully accelerate in future quarters as we start moving through that sales cycle. So I think Q4 was just representative of the turnaround work that we're doing and the fact that we're seeing those economics change with customers moving forward.

但我們在第三季度的電話會議上表示，我們應該會在第四季度開始看到這項工作的一些成果，而且隨著我們開始進入銷售週期，我們應該會看到希望在未來幾個季度加速。所以我認為第四季度只是我們正在做的周轉工作的代表，以及我們看到這些經濟隨著客戶向前發展而發生變化的事實。

And Brian, it's Michael here. I would like to add, particularly Q3 to Q4. Year-to-date, I noted in the prepared remarks, FX was a negative $1.5 million for the full year. Quarter -- year-to-date, I'm sorry, Q3, it was over 2%, around 2.1%. So we had a little bit of an FX benefit, you can pencil that out. So to a lesser degree than Seth noted, but that was also an element to rationalize this.

布萊恩，我是邁克爾。我想補充一點，特別是 Q3 到 Q4。年初至今，我在準備好的評論中指出，全年外彙為負 150 萬美元。本季度 - 年初至今，抱歉，第三季度超過 2%，約為 2.1%。所以我們有一點外匯收益，你可以把它記下來。所以比賽斯指出的程度要小，但這也是合理化這一點的一個因素。

But then to follow up on the 1Q guide, the $7 million to $9 million decline would be the largest sequential decline in the company's history also. And I heard you, your answers about guidance, but I'm trying to understand the rationale of you talking about your business being so strong, but they're not providing a number that really helps investors to understand the strength of your business. So $7 million to $9 million, is that actually in the realm of possibility? And what would have to happen for you to decline revenue 7% to 9% outside of FX? Or is FX already hurting you badly?

但隨後跟進 1Q 指南，700 萬至 900 萬美元的跌幅也將是該公司歷史上最大的環比跌幅。我聽到你，你關於指導的回答，但我試圖理解你談論你的業務如此強大的理由，但他們沒有提供真正幫助投資者了解你的業務實力的數字。那麼 700 萬到 900 萬美元，這真的有可能嗎？外匯以外的收入下降 7% 到 9% 會發生什麼情況？還是 FX 已經嚴重傷害了您？

I think, Brian, again, the answer that we've talked about, which is the conservative nature I think that's the right answer. In terms of would we have that kind of actual decline versus the reality, I think we'll know in the coming weeks. As you know, we're very back-end loaded on our sales. We're very back-end loaded in figuring out a rev rec when it's said and done at the end of the quarter. So I think there's some variability there, and we're just taking the conservative track. And hopefully, we will have an upside surprise on that.

我想，布賴恩，我們已經討論過的答案是保守的，我認為這是正確的答案。就我們是否會有這種實際下降與現實相比，我想我們會在未來幾週內知道。如您所知，我們的銷售非常落後。當它在本季度末說完並完成時，我們在計算 rev rec 時非常後端加載。所以我認為那裡存在一些可變性，我們只是走保守的道路。希望我們會對此有一個驚喜。

Okay. Last question I've got is as you think about your revenue guidance for the full year, which again might be conservative, what are the assumptions from a high level of international versus North American revenue trends? Are you going to see an acceleration or the other from what you saw last year, both? Trying to understand where you're seeing more pockets of strength than others?

好的。我得到的最後一個問題是，當你考慮全年的收入指導時，這可能又是保守的，國際與北美收入趨勢的高水平假設是什麼？你會看到去年看到的加速還是其他？試圖了解您在哪裡看到比其他人更多的力量？

Well, if it gives you any sense, I'm in Asia for five months of this year. So I think that's the plan -- there is -- I think the strongest and fastest growing region has been the Asia Pacific sector, a lot of greenfield opportunities out here as we break into new countries. I've been in, I think, what, five, six countries just in the last few weeks. And I think we're watching, again, improved performance across Europe and the Middle East, and I think across the U.S. and as we're starting to get more focused even on Canada.

好吧，如果它能給你任何意義的話，我今年在亞洲待了五個月。所以我認為這就是計劃 - 我認為最強大和增長最快的地區是亞太地區，當我們進入新國家時，這裡有很多綠地機會。在過去的幾周里，我去過五六個國家。我認為我們正在再次關注整個歐洲和中東的業績改善，我認為整個美國以及我們甚至開始更加關注加拿大。

So right now, I think, again, you're sort of 50/50 split between the U.S. and the rest of the world. I would expect to probably stay in that realm for a while because as we lift revenue globally, that split, I expect to stay fairly similar to that range in '23.

所以現在，我認為，美國和世界其他地區之間的比例是 50/50。我希望可能會在該領域停留一段時間，因為隨著我們在全球範圍內提高收入，這種分裂，我希望與 23 年的範圍保持相當相似。

Our next question today will come from Derrick Wood with Cowen & Company.

我們今天的下一個問題將來自 Cowen & Company 的 Derrick Wood。

It's Andrew on for Derrick. Congrats on the quarter. Seth, it sounds like the sales force is in a better place and productivity is improving and you have more tenured reps. Maybe just some more color on -- you mentioned what other work there is to do there in the Americas and what could improve performance there.

安德魯代替德里克。祝賀這個季度。賽斯，聽起來銷售人員處在一個更好的位置，生產力正在提高，而且你有更多的終身銷售代表。也許只是更多的顏色——你提到了美洲還有哪些其他工作要做，以及哪些可以提高那裡的性能。

I think Americas represents a little bit different challenge. Every region has its cultural differences. The challenge with America is really around the size of the country getting people to events, we do really, really well when we get people into events, we have one-on-one conversations. We have group conversations where we mix clients and prospects. It's very successful for us all over the world.

我認為美洲代表了一些不同的挑戰。每個地區都有其文化差異。美國面臨的挑戰實際上是關於讓人們參加活動的國家規模，當我們讓人們參加活動時，我們做得非常非常好，我們進行一對一的對話。我們進行小組對話，將客戶和潛在客戶混合在一起。這對我們全世界來說都非常成功。

It's hard to get that done in the U.S. It's hard to get a group of folks together. We're still in this post-pandemic world. We're still seeing in the U.S. more reluctance to attend in-person events that we've seen adopt and grow back around the world. And I do think that, that's had some effect on why the North America or actually really America has been a little bit slower in the rebound on the post-pandemic world. It really is more of a marketing problem than a sales problem.

在美國很難做到這一點。很難讓一群人聚在一起。我們仍處於大流行後的世界。我們仍然看到美國越來越不願意參加我們已經看到在世界各地採用並重新發展的面對面活動。我確實認為，這對為什麼北美或實際上美國在大流行後世界的反彈中有點慢有一些影響。這實際上更像是一個營銷問題而不是銷售問題。

Our sellers are doing really well in North America and across the U.S. and Canada. And as I mentioned, we have some very high-quality transactions being done. We're seeing growing pipelines, and that's true on a global basis. But we're still playing around a little bit with the marketing mix to get people more engaged in the U.S. And I know we're not the only ones having this problem. It was a problem before the pandemic in the United States, it is still a problem, and it's a little more of a problem for everyone to get engagement with prospects in a post-pandemic world.

我們的賣家在北美以及美國和加拿大的表現非常好。正如我提到的，我們正在進行一些非常高質量的交易。我們看到越來越多的管道，這在全球範圍內都是如此。但我們仍在嘗試營銷組合，讓人們更多地參與到美國的活動中。而且我知道我們並不是唯一遇到這個問題的人。在美國大流行之前這是一個問題，現在仍然是一個問題，在大流行後的世界中與潛在客戶接觸對每個人來說都是一個更大的問題。

So that's where we're focused. I think we've got some answers some ways that we've made some strategic changes that I do believe will bear some extra fruit, which will build bigger pipes and allow our people to go out and close more business.

所以這就是我們關注的地方。我認為我們已經在某些方面得到了一些答案，我們已經做出了一些戰略改變，我相信這些改變會產生一些額外的成果，這將建造更大的管道，讓我們的員工走出去，關閉更多的業務。

So I'm still very bullish on a global basis of growth I think the Americas, we just have to, again, tweak some of the things we're doing in marketing. But the messaging is resonating very, very well. We just got to get more people into these events and be able to engage more of them.

所以我仍然非常看好全球增長基礎，我認為美洲，我們只需要再次調整我們在營銷方面所做的一些事情。但是消息傳遞非常非常好。我們只需要讓更多的人參與這些活動，並讓他們中的更多人參與進來。

And then, Seth, your announcement today about Rimini Watch was interesting in the new Observability suite. Maybe just talk about how that builds on and is different from what you've provided before to clients, and were clients asking for this? And when do we think this can start to contribute to revenue?

然後，Seth，你今天關於 Rimini Watch 的公告在新的 Observability 套件中很有趣。也許只是談談它是如何建立在你之前提供給客戶的基礎之上的，以及它有何不同，客戶是否要求這樣做？我們什麼時候認為這可以開始為收入做出貢獻？

It's already contributing to revenue. We've been doing these products for several years. We just didn't announce them publicly. Recently, you've seen us announce our security suite, Rimini Protect. You've seen us announce our interoperability suite, Rimini Connect. Now you're watching Rimini Watch, which is our observability platform. There's also the Rimini Consult, our whole professional service business where we've got growing and accelerating revenue as well.

它已經在為收入做出貢獻。多年來，我們一直在做這些產品。我們只是沒有公開宣布它們。最近，您看到我們發布了我們的安全套件 Rimini Protect。您已經看到我們發布了互操作性套件 Rimini Connect。現在您正在觀看 Rimini Watch，這是我們的可觀察性平台。還有 Rimini Consult，這是我們的整個專業服務業務，我們的收入也在不斷增長和加速增長。

This is part of a 7-pronged approach of products now. And that is -- these are just a few of the new ones. We're bringing them to market publicly, but we've actually been out selling these products for quite a while. This is what we've been investing in for the last few years is to build out these amazing suites of products and services. And the reason that we're doing it is because the customers are asking us for them. They want this broader offering from Rimini Street because we're the trusted vendor. They like doing business with us, they like the kind of engineering talent we bring to the table and they want us to do more. And they want us to become a bigger strategic partner with wider capabilities.

這是現在產品七管齊下方法的一部分。那就是——這些只是其中的一部分。我們將它們公開推向市場，但實際上我們已經銷售這些產品很長一段時間了。這就是我們過去幾年一直在投資的內容，就是構建這些令人驚嘆的產品和服務套件。我們這樣做的原因是因為客戶要求我們提供他們。他們希望 Rimini Street 提供更廣泛的產品，因為我們是值得信賴的供應商。他們喜歡和我們做生意，他們喜歡我們帶來的那種工程人才，他們希望我們做得更多。他們希望我們成為具有更廣泛能力的更大的戰略合作夥伴。

And what we've been delivering are full suite now of products and solutions is exactly what the market has asked us to do. And that's why I said we're very early in the sales of all these products and services. But I think you're starting to see the traction, and that was showing in the fourth quarter, every single one of the product lines that we've released has growth, and they continue adoption. So this again underlines our confidence that we've made the right strategic decisions in investing in this broader set of services and products and that customers I think they're the right ones for them.

我們現在提供的是全套產品和解決方案，這正是市場要求我們做的。這就是為什麼我說我們很早就開始銷售所有這些產品和服務。但我認為你開始看到牽引力，這在第四季度就顯示出來了，我們發布的每一個產品線都有增長，並且它們繼續被採用。因此，這再次強調了我們的信心，即我們在投資這一更廣泛的服務和產品方面做出了正確的戰略決策，而且我認為客戶是適合他們的。

And last one for you, Michael, it sounds, building off the prior question, I think we understand that you want to guide conservatively, it sounds like you've taken a more conservative approach to guidance first maybe in prior quarters or versus last year. Is that a fair way to characterize it, or how should we think about that?

最後一個給你，邁克爾，聽起來，建立在前面的問題之上，我想我們理解你想保守地指導，聽起來你可能在前幾個季度或與去年相比首先採取了更保守的指導方法.這是描述它的一種公平方式，還是我們應該如何考慮它？

That is certainly a fair way to characterize it. I would highlight Seth's remarks, the momentum that we built in the fourth quarter. We still have our strongest period over the current quarter that we need to close, but we really do feel good where we are in comparison. I believe that's a fair statement.

這當然是描述它的一種公平方式。我要強調賽斯的言論，即我們在第四季度建立的勢頭。在本季度，我們仍然有我們需要關閉的最強勁時期，但相比之下，我們確實感覺良好。我相信這是一個公平的陳述。

This concludes today's question-and-answer session. I'd like to turn the call back to Mr. Ravin for closing remarks.

今天的問答環節到此結束。我想將電話轉回給 Ravin 先生作結束語。

Sure. Thank you very much. And I want to thank everyone for joining us for the fourth quarter and full year 2022 call. I also want to thank our Rimini Street colleagues for the efforts in the fourth quarter and the full year '22. Again, our first year coming out of the pandemic, and I think our team did a fantastic job of executing, building many, many new products and services, getting them out there to market. And I think it was a really important building year for us.

當然。非常感謝。我要感謝大家加入我們的第四季度和 2022 年全年電話會議。我還要感謝我們的 Rimini Street 同事在第四季度和 22 年全年所做的努力。同樣，這是我們走出大流行的第一年，我認為我們的團隊在執行、構建許多新產品和服務並將它們推向市場方面做得非常出色。我認為這對我們來說是非常重要的建設年。

Also I want to say that we're looking forward to having you on our next earnings call, and we'll do that again pretty soon on the first quarter 2023. Until then, again, wishing you all continued good health and keep our thoughts with the charitable support for those in need and of course, many suffering in harm's way between natural disasters and man-made wars. So again, we live in a lucky world for the rest of us who get to stay away from things like that, but our thoughts are with them.

另外我想說的是，我們期待著您參加我們的下一次財報電話會議，我們將很快在 2023 年第一季度再次這樣做。在此之前，再次祝愿大家身體健康並保持我們的想法為有需要的人提供慈善支持，當然還有許多在自然災害和人為戰爭之間遭受傷害的人。因此，對於我們其他人來說，我們再次生活在一個幸運的世界中，他們可以遠離這樣的事情，但我們的想法與他們同在。

Thank you very much, everybody.

非常感謝大家。

This concludes today's conference call. Thank you for attending.

今天的電話會議到此結束。感謝您的出席。