Rimini Street Inc (RMNI) 2023 Q4 法說會逐字稿

Good day and thank you for standing by.

美好的一天，感謝您的支持。

Welcome to Rimini Street fourth-quarter 2023 earnings call.

歡迎參加 Rimini Street 2023 年第四季財報電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Dean Pohl, Vice President, Treasurer, and Investor Relations.

現在我想將會議交給今天的發言人迪恩·波爾（Dean Pohl），他是副總裁、財務主管和投資者關係主管。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線生。

I'd like to welcome everyone to Rimini Street's fourth-quarter and fiscal year 2023 earnings conference call.

我歡迎大家參加 Rimini Street 第四季和 2023 財年財報電話會議。

On the call with me today is Seth Ravin, our CEO and President; and Michael Perica, our CFO.

今天與我通話的是我們的執行長兼總裁 Seth Ravin；和我們的財務長邁克爾·佩里卡（Michael Perica）。

Today, we issued our earnings press release for the fourth quarter and fiscal year ended December 31, 2023, a copy of which can be found on our website under Investor Relations.

今天，我們發布了截至 2023 年 12 月 31 日的第四季度和財年的收益新聞稿，您可以在我們網站的投資者關係下找到該新聞稿的副本。

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in the press release.

新聞稿中財務報表後面的表格中提供了公認會計準則與非公認會計準則財務指標的調整表。

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.

這些措施的解釋以及我們為何認為它們有意義的解釋也包含在標題為「關於非公認會計原則財務措施和某些關鍵指標」的新聞稿中。

As a reminder, today's discussion will include forward-looking statements that reflect our current outlook.

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。

These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from statements made today.

這些前瞻性陳述存在風險和不確定性，可能導致實際結果與今天的陳述有重大差異。

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.

我們鼓勵您查看我們最近向 SEC 提交的文件，包括今天提交的 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.

現在，在提問之前，我們將從準備好的發言開始。

With that, I'd like to turn the call over to Seth.

說到這裡，我想把電話轉給塞斯。

Thank you, Dean, and thank you, everyone, for joining us today.

謝謝迪恩，也謝謝大家今天加入我們。

Since its founding 19 years ago, Rimini Street has grown and evolved into a different kind of full IT services company focused on the needs and goals of our clients.

自 19 年前成立以來，Rimini Street 已發展成為一家不同類型的全方位 IT 服務公司，專注於客戶的需求和目標。

Other IT service companies are focused on getting their clients to spend as much as possible on projects that maximize sales of their software services and hardware vendor partners, and meet their own financial objectives.

其他 IT 服務公司專注於讓客戶盡可能多地投資於能夠最大化其軟體服務和硬體供應商合作夥伴銷售並實現自身財務目標的專案。

Instead, Rimini Street works as a trusted partner to its clients and has no partnerships with other IT vendors that compromise or influence its independence in advice, counsel, and recommendations provided to clients.

相反，Rimini Street 是客戶值得信賴的合作夥伴，並且與其他 IT 供應商沒有任何損害或影響其向客戶提供建議、顧問和推薦的獨立性的合作關係。

We only have technology partnerships that we use to provide our clients value, leverage, and access to what we believe are strong solution opportunities.

我們只擁有技術合作夥伴關係，用於為客戶提供價值、影響力和獲得我們認為強大的解決方案機會。

Rimini Street is focused on developing a Rimini Smart Path roadmap, an ROI-driven analysis of options and strategic recommendations to clients on the best allocation of limited IT budget, people, and time resources to help them achieve their strategic, financial, and operational goals.

Rimini Street 專注於開發Rimini Smart Path 路線圖，這是一種投資回報率驅動的選項分析，並向客戶提供策略建議，以最佳分配有限的IT 預算、人員和時間資源，幫助他們實現策略、財務和營運目標。

When other IT firms say no, Rimini works to say, yes, we will get you there.

當其他 IT 公司說「不」時，里米尼則努力說「是的，我們會幫助您實現目標」。

We help our clients achieve better business outcomes, such as accelerated growth, lowered operating costs, increased investment in innovation, and improved competitive advantage.

我們幫助客戶實現更好的業務成果，例如加速成長、降低營運成本、增加創新投資以及提高競爭優勢。

We believe we have already delivered over $8 billion of savings and reinvestment opportunity to our clients.

我們相信我們已經為客戶提供了超過 80 億美元的儲蓄和再投資機會。

Not only is Rimini Street a global leader in its deep technical capabilities to run, manage, support, protect, connect, monitor, customize, configure, and optimize mission-critical enterprise application, database, and technology software.

Rimini Street 不僅在運作、管理、支援、保護、連接、監控、客製化、配置和優化關鍵任務企業應用程式、資料庫和技術軟體方面的深厚技術能力方面處於全球領先地位。

But Rimini is also growing technical and business capabilities to assist clients with innovation projects that include cloud, open-source products, automation, workflow, data, analytics, AI, reporting, application modernization, license management, migrations, integrations, security, and global IT governance.

但Rimini 也不斷增強技術和業務能力，以協助客戶開展創新項目，包括雲端、開源產品、自動化、工作流程、數據、分析、人工智慧、報告、應用程式現代化、許可證管理、遷移、整合、安全與全球IT 治理。

To date, we serve over 5,500 Fortune 500, Fortune Global 100, mid-market, and public sector organizations in nearly 150 countries and have global operations with over 2,100 employees across 21 countries.

迄今為止，我們為近150 個國家/地區的5,500 多家《財富》500 強、《財富》全球100 強、中端市場和公共部門組織提供服務，並在21 個國家/地區擁有超過2,100 名員工的全球業務。

We have an average engineer response time of less than two minutes, 24 by 7 by 365, and earn an average client satisfaction score on our support delivery and onboarding services of 4.9 out of 5, where 5 is excellent.

我們的工程師平均回應時間不到兩分鐘（24 x 7 x 365），我們的支援交付和入職服務的平均客戶滿意度得分為 4.9 分（滿分 5 分），其中 5 分為優秀。

Q4 and fiscal-year 2023 results.

第四季及 2023 財年業績。

For the fourth-quarter and full-year 2023, we continued focusing on improving sales execution across our expanded portfolio of solutions and being able to deliver the full portfolio of solutions globally.

在 2023 年第四季和全年，我們繼續專注於提高擴大的解決方案組合的銷售執行力，並能夠在全球範圍內提供完整的解決方案組合。

As our current and prospective clients learn more about the unique offerings and value of our expanded solutions portfolio, they are responding positively and buying across the full portfolio.

隨著我們當前和潛在的客戶更多地了解我們擴展的解決方案組合的獨特產品和價值，他們做出了積極回應併購買了整個產品組合。

Accordingly, to meet the increased demand, we have substantially increased our seller count and sales capacity coming into 2024.

因此，為了滿足不斷增長的需求，我們在 2024 年之前大幅增加了賣家數量和銷售能力。

Throughout 2023, we saw our end-to-end ERP outsourcing solution, Rimini ONE; solutions for SAP products; and Salesforce AMS solution continue to gain sales traction globally.

整個2023年，我們看到了我們的端對端ERP外包解決方案Rimini ONE； SAP產品解決方案； Salesforce AMS 解決方案持續在全球範圍內獲得銷售吸引力。

To enhance and accelerate lead, opportunity, and pipeline development, and help close more large and strategic transactions for Rimini Street, our senior executives, including myself, continue our extensive in-person Rimini Street client and prospect meetings, and attendance of third-party events and executive sales meetings in the United States and globally, with many current and prospective clients.

為了增強和加速領先優勢、機會和管道開發，並幫助Rimini Street 完成更多大型策略交易，我們的高階主管（包括我自己）繼續進行廣泛的面對面Rimini Street 客戶和潛在客戶會議，並邀請第三方參加在美國和全球範圍內與許多現有和潛在客戶一起舉辦活動和高階主管銷售會議。

To deliver our full solutions portfolio globally, we continue to grow our workforce and expand our capabilities, backed by innovation and technology that provides additional leverage for increased capacity, profitability, and revenue growth.

為了在全球範圍內提供完整的解決方案組合，我們在創新和技術的支持下，繼續擴大員工隊伍並擴大我們的能力，為提高產能、盈利能力和收入增長提供額外的槓桿作用。

Demand environment and competitive advantage.

需求環境和競爭優勢。

We continue to see strong demand for a proven, reliable, trusted partner for mission-critical transaction system services that can allow organizations to consolidate their preferred IT service providers for streamlined vendor management, increased aggregated purchasing power, and better business outcomes.

我們繼續看到對關鍵任務交易系統服務經過驗證、可靠、值得信賴的合作夥伴的強烈需求，這些服務可以讓組織整合其首選的IT 服務提供商，以簡化供應商管理、提高整體購買力和更好的業務成果。

Organizations today need to figure out how to deliver both revenue growth and increased profitability.

當今的組織需要弄清楚如何實現收入成長和獲利能力的提高。

And now, as an end-to-end provider of mission-critical IT support, products, and services, Rimini Street has the broader portfolio of solutions needed to be recognized as a key IT service partner that can help enable our clients to lower operating costs and achieve their goals from developing IT strategy and building roadmaps through plan execution.

現在，作為關鍵任務 IT 支援、產品和服務的端到端提供商，Rimini Street 擁有更廣泛的解決方案組合，被視為關鍵 IT 服務合作夥伴，可以幫助我們的客戶降低營運成本透過制定IT 策略和透過計劃執行建立路線圖來降低成本並實現目標。

Expanded software product support, introducing Rimini Custom.

擴大軟體產品支持，推出 Rimini Custom。

This week, Rimini Street officially launched its Rimini Custom solution.

本週，Rimini Street 正式推出 Rimini Custom 解決方案。

This program allows organizations to request custom support solutions for a broader set of enterprise software that they are using beyond Rimini Street's current supported product list.

該計劃允許組織為他們正在使用的 Rimini Street 目前支援的產品清單之外的更廣泛的企業軟體請求客製化支援解決方案。

Whether the client goal is to consolidate IT landscape support or manage services under a single trusted partner, extend the operating life of a software product or release, or just obtain better and more responsive support, we believe Rimini Custom is an exciting new solution.

無論客戶的目標是整合IT 環境支援或在單一值得信賴的合作夥伴下管理服務、延長軟體產品或版本的運行壽命，還是只是獲得更好、響應更快的支持，我們相信Rimini Custom 都是一個令人興奮的新解決方案。

The Rimini Custom service is now available to clients and new prospects.

里米尼客製化服務現已向客戶和新潛在客戶開放。

Rimini Street will work to say yes and present a proposal for any Rimini Custom client request that meets license, supportability, and resourcing analysis.

Rimini Street 將努力答應並針對任何 Rimini Custom 客戶請求提出符合許可、支援性和資源分析的提案。

With our new Rimini Custom offering, we believe that we are even better positioned to meet the current and evolving IT service needs of private and public sector organizations in the years ahead.

憑藉我們新的 Rimini Custom 產品，我們相信我們能夠更好地滿足未來幾年私營和公共部門組織當前和不斷變化的 IT 服務需求。

Oracle litigation update.

甲骨文訴訟更新。

Rimini Street and Oracle have been in litigation for more than 14 years, including cases known as Rimini 1 and Rimini 2.

Rimini Street 和 Oracle 的訴訟已超過 14 年，其中包括被稱為 Rimini 1 和 Rimini 2 的案件。

In 2010, Oracle filed the Rimini 1 case against Rimini Street in US District Court.

2010年，甲骨文向美國地方法院提起針對Rimini Street的Rimini 1案。

As a result of the Rimini 1 case, with trial completed in 2015 and subsequent appeals, the US court has affirmed that third-party software support is legal.

隨著 Rimini 1 案於 2015 年完成審判以及隨後的上訴，美國法院確認第三方軟體支援是合法的。

The US courts issued a permanent injunction, known as the Rimini 1 injunction, enjoining certain activities related to the manner in which Rimini provides support on certain Oracle product lines.

美國法院發布了一項名為 Rimini 1 禁令的永久禁令，禁止與 Rimini 對某些 Oracle 產品線提供支援的方式相關的某些活動。

The Rimini 1 injunction does not prohibit Rimini from providing support to any Oracle product line.

Rimini 1 禁令並不禁止 Rimini 向任何 Oracle 產品線提供支援。

There are no current litigation activities related to Rimini 1.

目前沒有與 Rimini 1 相關的訴訟活動。

Subsequent to the Rimini 1 trial, Oracle filed and prevailed on certain claims in a contempt proceeding related to the Rimini 1 injunction.

Rimini 1 審判之後，Oracle 在與 Rimini 1 禁令相關的藐視法庭訴訟中提出了某些索賠並取得了勝訴。

Rimini Street was fined and paid USD530,000, and settled and paid Oracle's attorney's fees and costs for USD9.7 million.

Rimini Street 被罰款並支付 53 萬美元，並和解並支付 Oracle 的律師費和訴訟費 970 萬美元。

In 2014, Rimini filed the Rimini 2 case against Oracle in the US District Court.

2014年，Rimini向美國地方法院提起針對Oracle的Rimini 2案。

Trial occurred in 2022.

審判於 2022 年進行。

While Oracle prevailed on liability for its DMCA and Lanham Act claims with no damages award, Oracle abandoned its $1.4 billion of damages claim and all non-equitable claims of prejudice on the eve of a jury trial and lost its copyright claims for a majority of product lines at issue in the case: EBS, JDE, and Siebel.

雖然 Oracle 在其 DMCA 和 Lanham Act 索賠中勝訴，且未獲得損害賠償，但 Oracle 在陪審團審判前夕放棄了 14 億美元的損害索賠和所有非公平損害索賠，並失去了大部分產品的版權索賠本案涉及的線路：EBS、JDE 和Siebel。

On the remaining product lines, PeopleSoft and Database, Oracle prevailed on the migration process, the use of certain rewrite files, and the use of certain automated tools.

在其餘產品線（PeopleSoft 和 Database）上，Oracle 在遷移過程、某些重寫檔案的使用以及某些自動化工具的使用方面佔了上風。

But Rimini prevailed on central, cross-cutting legal theories that were core to Oracle's broad infringement claims spanning all Oracle product lines, such as confirming Rimini may write down and reuse its own know-how and that Oracle's licenses permit a third party, like Rimini, to perform updates or fixes to the same extent as the licensee.

但Rimini 在核心、跨領域的法律理論上取得了勝利，這些法律理論是甲骨文針對所有甲骨文產品線的廣泛侵權索賠的核心，例如確認里米尼可以寫下並重複使用自己的專有技術，以及甲骨文的許可允許像Rimini 這樣的第三方，以與被授權人相同的程度執行更新或修復。

Today, there are currently three Rimini 2 post-trial litigation matters: one, appeal of the Rimini 2 findings and the Rimini 2 injunction before the Court of Appeals, known as the merits appeal; two, a motion to further stay the Rimini 2 injunction pending Rimini's merits appeal, also, before the Court of Appeals; and three, litigation over Oracle's requested recovery of their attorney's fees and costs related to Rimini 2 before the US District Court.

目前，Rimini 2 審後訴訟事項目前有三項：一是向上訴法院對 Rimini 2 調查結果和 Rimini 2 禁令提出上訴，稱為案情上訴；第二，在里米尼向上訴法院提出案情上訴之前，進一步暫緩執行 Rimini 2 禁令的動議；第三，甲骨文要求美國地區法院追回與 Rimini 2 相關的律師費和費用的訴訟。

In July 2023, concurrent with the district court's trial rulings for Rimini 2, the district court issued a permanent injunction known as the Rimini 2 injunction, which, among other things, further enjoins Rimini's activities related solely to the manner in which Rimini provides support on certain Oracle product lines, which Rimini Street has sought to reverse.

2023 年7 月，在地區法院對Rimini 2 作出審判裁決的同時，地區法院發布了一項名為Rimini 2 禁令的永久禁令，其中除其他外，進一步禁止Rimini 開展僅與Rimini 提供支持的方式相關的活動. Rimini Street 試圖扭轉甲骨文的某些產品線。

As of this date, an administrative stay of the Rimini 2 injunction is in place.

截至目前，Rimini 2 禁令的行政暫緩生效。

And the Court of Appeals has not yet issued a decision on our motion to stay the Rimini 2 injunction through the appeals process.

上訴法院尚未就我們透過上訴程序暫緩 Rimini 2 禁令的動議做出決定。

With respect to the Rimini 2 merits appeal, the Court of Appeals will hear the appeal on an expedited basis, which will include the appeal of the Rimini 2 injunction.

關於 Rimini 2 案情上訴，上訴法院將快速審理上訴，其中包括對 Rimini 2 禁令的上訴。

Rimini's opening brief for the Rimini 2 merits appeal is due March 4, 2024, and Oracle's answering brief is due April 3, 2024.

Rimini 的 Rimini 2 案情上訴的開庭摘要將於 2024 年 3 月 4 日提交，Oracle 的答辯摘要將於 2024 年 4 月 3 日提交。

Rimini's optional reply brief is due within 21 days after service of Oracle's answering brief.

Rimini 的可選答案摘要應在 Oracle 的答案摘要送達後 21 天內到期。

The Court of Appeals has currently set the date of June 5, 2024, to hear oral arguments.

上訴法院目前將聽證口頭辯論的日期定為 2024 年 6 月 5 日。

On November 6, 2023, Oracle filed a motion for attorneys' fees and taxable costs with the US District Court, requesting attorneys' fees and taxable costs totaling approximately USD70.6 million related to the Rimini 2 litigation.

2023年11月6日，甲骨文向美國地方法院提出律師費和應稅費用動議，要求支付與Rimini 2訴訟相關的律師費和應稅費用總計約7,060萬美元。

On February 20, 2024, Rimini filed its opposition to Oracle's November 6, 2023, motion for attorneys' fees and taxable costs in the Rimini 2 litigation.

2024 年 2 月 20 日，Rimini 對 Oracle 於 2023 年 11 月 6 日提出的關於 Rimini 2 訴訟中律師費和應稅費用的動議提出反對。

In the opposition, Rimini argues that the district court should deny Oracle's motion in its entirety.

反對派中，里米尼認為地方法院應該完全駁回甲骨文的動議。

Rimini further argues that, should the district court award any attorneys' fees to Oracle, such fees should not exceed USD14.47 million.

Rimini 進一步辯稱，如果地區法院判給 Oracle 任何律師費，此類費用不應超過 1,447 萬美元。

Oracle's reply to Rimini's opposition is due by March 15, 2024, after which the matter will be taken under consideration for determination by the district court.

甲骨文將於 2024 年 3 月 15 日之前對里米尼的反對意見作出答复，之後地區法院將考慮此事並作出裁決。

Rimini reserves all rights, including appellate rights, with respect to the Rimini 2 litigation, including any award of attorneys' fees and taxable costs to Oracle.

Rimini 保留與 Rimini 2 訴訟相關的所有權利，包括上訴權，包括向 Oracle 支付的任何律師費和應稅費用。

For additional information and disclosures regarding the company's litigation with Oracle, please see our disclosures in the company's annual report on Form 10-K filed today, February 28, 2024, with the US Securities and Exchange Commission.

有關公司與 Oracle 訴訟的更多資訊和披露信息，請參閱我們於今天（2024 年 2 月 28 日）向美國證券交易委員會提交的公司 10-K 表格年度報告中的披露內容。

Please also note that, at this time, we are still unable to provide material additional information beyond the disclosures and statements in our press releases, filings with the SEC, and court filings, nor provide guidance with respect to future financial results, nor are we able to provide additional commentary related to the pending Oracle litigation and potential impacts of the Rimini 2 injunction.

另請注意，目前，除了我們的新聞稿、向SEC 提交的文件和法庭文件中披露和聲明之外，我們仍然無法提供重要的額外信息，也無法提供有關未來財務業績的指導，我們也無法提供有關未來財務表現的指導。能夠提供與未決的 Oracle 訴訟以及 Rimini 2 禁令的潛在影響相關的更多評論。

Because the matters are still before various courts, and the outcomes cannot be predicted.

因為案件仍在各法庭審理中，結果無法預測。

Summary.

概括。

We remain confident that we are continuing to take the right actions and making the right investments to accelerate growth, increase profitability, enhance shareholder value, and bring our litigation with Oracle to a successful conclusion.

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，以加速成長、提高獲利能力、提高股東價值，並使我們與甲骨文的訴訟取得圓滿成功。

However, if Rimini Street does not ultimately prevail in the litigation matters described above and in our SEC filings, it could have a material adverse impact on our business and financial results.

然而，如果 Rimini Street 最終未能在上述訴訟事項和我們向 SEC 提交的文件中獲勝，可能會對我們的業務和財務表現產生重大不利影響。

Now, over to you, Michael.

現在，交給你了，麥可。

Thank you, Seth, and thank you for joining us, everyone.

謝謝你，賽斯，也謝謝大家加入我們。

Q4 and fiscal 2023 results.

第四季及 2023 財年業績。

Revenue for the fourth-quarter and the full-year 2023 was $112.1 million and $431.5 million, respectively, a year-over-year increase of 3.2% and 5.3%, respectively.

2023年第四季和全年營收分別為1.121億美元和4.315億美元，年比分別成長3.2%和5.3%。

Clients within the United States represented 51%, while international clients represented 49% of total revenue for both the fourth-quarter and full-year 2023.

美國境內客戶佔 2023 年第四季和全年總收入的 51%，而國際客戶佔總收入的 49%。

Annualized recurring revenue was $432.3 million for the fourth quarter, a year-over-year increase of 2.9%.

第四季年化經常性營收為4.323億美元，較去年同期成長2.9%。

Revenue retention rate for service subscriptions, which makes up 96.4% of our revenue, was 90% with more than 79% of subscription revenue noncancelable for at least 12 months.

占我們收入 96.4% 的服務訂閱的收入保留率為 90%，其中超過 79% 的訂閱收入在至少 12 個月內不可取消。

We note that, for the full-year 2023, our total revenue measures on a constant currency basis was negatively impacted by 0.6% due to FX movements.

我們注意到，2023 年全年，由於匯率變動，我們以固定匯率計算的總收入受到了 0.6% 的負面影響。

The decline in our revenue retention rate for the year ended December 31, 2023, was due to attrition during the fourth quarter, as certain clients did not renew specific subscriptions, however, in some cases, maintained or added subscriptions for other products.

截至 2023 年 12 月 31 日止年度的營收保留率下降是由於第四季度的流失，因為某些客戶沒有續訂特定訂閱，但在某些情況下維持或增加了其他產品的訂閱。

Our net billings during the fourth quarter of 2023 was flat to the comparable period of 2022.

我們 2023 年第四季的淨營收與 2022 年同期持平。

Because record fourth-quarter new client invoicing was able to offset fourth-quarter retention losses.

因為創紀錄的第四季新客戶發票能夠抵銷第四季度的保留損失。

Billings for the fourth quarter were $160.7 million compared to $160.4 million for the prior-year fourth quarter.

第四季的營業額為 1.607 億美元，而去年同期第四季的營業額為 1.604 億美元。

For the full-year 2023, billings increased 2.3% to $418.5 million.

2023 年全年，帳單成長 2.3%，達到 4.185 億美元。

Gross margin was 61% of revenue for the fourth quarter and 62.3% for full-year 2023, compared to 64.5% of revenue for the prior-year fourth quarter and 52.8% for prior year 2022.

第四季毛利率佔營收的 61%，2023 年全年毛利率為 62.3%，而去年第四季毛利率佔營收的 64.5%，2022 年全年毛利率為 52.8%。

On a non-GAAP basis, which excludes stock-based compensation expense, gross margin was 61.5% of revenue for the fourth quarter and 62.8% for full-year 2023, compared to 64.9% of revenue for the prior-year fourth quarter and 63.3% for prior year 2022.

以非公認會計準則（不含股票薪酬費用）計算，第四季毛利率佔營收的61.5%，2023 年全年毛利率為62.8%，而去年第四季毛利率佔營收的64.9%，2023 年全年 毛利率為63.3%。2022 年前一年的百分比。

Gross margin declined during the back half of 2023 as a result of continued investment in an expansion of our global engineering team needed to serve new client engagements in advance of related ratable contract revenue recognition.

由於我們需要繼續投資擴大全球工程團隊，以便在相關應評稅合約收入確認之前為新客戶提供服務，因此 2023 年下半年毛利率有所下降。

As noted in previous earnings calls, we are expecting continued gross margin pressure as we scale to meet new client engagements.

正如先前的財報電話會議所指出的，隨著我們擴大規模以滿足新客戶的需求，我們預計毛利率將繼續面臨壓力。

Simultaneously, we are also working to improve gross margin by driving efficiencies and leveraging the benefits of growing global scale.

同時，我們也致力於透過提高效率和利用全球規模不斷增長的優勢來提高毛利率。

Operating expenses.

營業費用。

While inflationary pressures and high cost are still persistent for skilled labor across all theaters, we continue to attract and retain key talent.

儘管通膨壓力和高成本對於所有戰區的熟練勞動力來說仍然持續存在，但我們繼續吸引和留住關鍵人才。

Moreover, our margin performance, in light of the pressures highlighted previously, underscores the advantage of our global footprint, with centers of excellence and geographies for both the talent and value remain attractive compared to higher-priced talent markets.

此外，鑑於先前強調的壓力，我們的利潤率表現凸顯了我們全球足跡的優勢，與價格較高的人才市場相比，人才和價值的卓越中心和地理位置仍然具有吸引力。

Sales and marketing expenses as a percentage of revenue was 31.2% of revenue for the fourth quarter and 33% for full-year 2023, compared to 36.1% of revenue for the prior-year fourth quarter and 34.9% for prior year 2022.

銷售和行銷費用佔收入的百分比，第四季度佔收入的 31.2%，2023 年全年佔收入的 33%，而去年第四季佔收入的 36.1%，2022 年全年佔收入的 34.9%。

On a non-GAAP basis, which excludes stock-based compensation expense, sales and marketing expenses as a percentage of revenue, was 30.5% of revenue for the fourth quarter and 32.3% for full-year 2023, compared to 35.4% of revenue for the prior-year fourth quarter and 34.1% for prior year 2022.

以非GAAP 計算（不包括以股票為基礎的薪資費用），銷售和行銷費用佔收入的百分比，第四季佔收入的30.5%，2023 年全年佔收入的32.3%，而2023 年佔收入的35.4% 。去年第四季成長了 34.1%，2022 年成長了 34.1%。

General and administrative expenses as a percentage of revenue, excluding outside litigation costs, was 15.7% of revenue for the fourth quarter and 16.9% for full-year 2023, compared to 16.7% of revenue for the prior-year fourth quarter and 18.4% for prior year 2022.

一般及行政費用佔收入的百分比（不包括外部訴訟費用），第四季佔收入的15.7%，2023 年全年佔收入的16.9%，而上年第四季佔收入的16.7%，2023 年全年佔收入的18.4%。前一年 2022 年。

On a non-GAAP basis, which excludes stock-based compensation expense and litigation costs, G&A was 13.8% of revenue for the fourth quarter and 15.1% for full-year 2023, compared to 15.6% of revenue for the prior-year fourth quarter and 17% for prior year 2022.

以非公認會計準則（不包括股票薪酬費用和訴訟費用）計算，總務及行政費用佔第四季度收入的 13.8%，2023 年全年佔收入的 15.1%，而去年第四季收入的 15.6% 2022 年為17%。

We are seeing a good year-over-year improvement in G&A spend due to some restructuring measures and the initial substantial investments that were required to develop and launch our expanded portfolio of solutions, are largely completed.

由於一些重組措施以及開發和推出我們擴展的解決方案組合所需的初始大量投資已基本完成，我們看到一般管理支出同比有了良好的改善。

However, G&A expenses as a percentage of revenue are expected to remain elevated compared to our peers due, in large part, to the ongoing calls for in-house legal and compliance teams and other costs made necessary by our ongoing Oracle litigation and compliance activities.

然而，與我們的同行相比，一般行政費用佔收入的百分比預計仍將保持較高水平，這在很大程度上是由於我們不斷要求內部法律和合規團隊以及我們正在進行的甲骨文訴訟和合規活動所需的其他成本。

Net outside litigation expense, which includes the Oracle settlement previously referenced, was $4.3 million for the fourth quarter and was $9.8 million for the full-year 2023, compared to $12.8 million for the prior-year fourth quarter and $25.3 million per prior year 2022.

包括先前提及的Oracle 和解在內的淨外部訴訟費用為430 萬美元，2023 年第四季為430 萬美元，2023 年全年為980 萬美元，而去年第四季為1280 萬美元，2022 年全年為2530 萬美元。

This year's fourth quarter included an accounting charge of $2.7 million related to the $9.7 million Oracle cash settlement, that Seth discussed earlier, related to the Rimini 1 injunction content matter.

今年第四季包括與 Oracle 970 萬美元現金和解相關的 270 萬美元會計費用，Seth 之前討論過該和解與 Rimini 1 禁令內容問題相關。

Litigation expenses will vary quarter to quarter and year to year, depending on current litigation activity.

訴訟費用每季和每年都會有所不同，具體取決於當前的訴訟活動。

Our non-GAAP operating margin, which excludes outside litigation spend and stock-based compensation, was 17.2% of revenue for the fourth quarter and 15.3% for full-year 2023.

我們的非 GAAP 營業利潤率（不包括外部訴訟支出和股票薪酬）佔第四季度收入的 17.2%，2023 年全年佔收入的 15.3%。

Net income attributable to shareholders for the fourth quarter was $9.4 million or $0.1 per diluted share and for the full-year 2023, was $26.1 million or $0.29 per diluted share.

第四季歸屬於股東的淨利為 940 萬美元，即稀釋後每股收益 0.1 美元，2023 年全年歸屬於股東的淨利潤為 2,610 萬美元，即稀釋後每股收益 0.29 美元。

On a non-GAAP basis, net income for the fourth quarter was $17.1 million or $0.19 per diluted share and for the full-year 2023, was $48.4 million or $0.54 per diluted share.

以非公認會計準則計算，第四季淨利為 1,710 萬美元，即稀釋後每股收益 0.19 美元，2023 年全年淨利潤為 4,840 萬美元，即稀釋後每股收益 0.54 美元。

Adjusted EBITDA, defined in our press release, was $21.3 million for the fourth quarter or 19% of revenue and for full-year 2023, was $71.9 million or 16.7% of revenue.

我們的新聞稿中定義的調整後 EBITDA 為 2,130 萬美元，佔營收的 19%；2023 年全年調整後 EBITDA 為 7,190 萬美元，佔營收的 16.7%。

Balance sheet.

資產負債表。

We ended the fiscal year with a cash balance of $115.4 million plus investments of $9.8 million, consisting of short-term treasuries and US government agency securities, bringing readily available cash to $125.2 million, compared to $129.1 million for the prior fiscal year end.

本財年結束時，我們的現金餘額為1.154 億美元，加上980 萬美元的投資（包括短期國債和美國政府機構證券），使可用現金達到1.252 億美元，而上一財年結束時為1.291億美元。

And during 2023, we reduced the principal balance on our term loan from $78.3 million to $72.6 million, resulting in a year-end net cash position of $52.6 million.

2023 年期間，我們將定期貸款本金餘額從 7,830 萬美元減少到 7,260 萬美元，年末淨現金部位達到 5,260 萬美元。

On a cash flow basis, for the fourth quarter, operating cash flow declined $1.1 million and for the full-year 2023, we generated $12.5 million compared to a decline of $1.9 million for the prior-year fourth quarter and a positive $34.9 million for full-year 2022.

從現金流來看，第四季的營運現金流下降了110 萬美元，而2023 年全年的營運現金流為1,250 萬美元，而去年第四季下降了190 萬美元，全年營運現金流為3,490 萬美元。- 2022 年。

The year-over-year variance is due primarily to large nonrecurring payments made during the first quarter to our outside litigation counsel relating to the fourth-quarter 2022 Rimini 2 trial with Oracle and overhead restructuring charges.

同比差異主要是由於第一季向我們的外部訴訟律師支付的大筆非經常性付款，這些費用與甲骨文的 2022 年第四季度 Rimini 2 審判相關，以及管理費用重組費用。

And during the fourth quarter, as noted, we paid $9.7 million to settle the content matter.

正如前面提到的，我們在第四季度支付了 970 萬美元來解決內容問題。

In addition, throughout 2023, we experienced lower-client multiyear prepayments and related collections compared to the prior-year 2022, as clients retained cash in the higher-rate environment for their own short-term investment opportunities and the preservation of cash.

此外，在整個2023 年，與去年2022 年相比，我們的客戶多年預付款和相關收款有所減少，因為客戶在較高利率的環境中保留現金，以獲取自己的短期投資機會和保存現金。

Lastly, FX headwinds, as noted, also impacted cash flow.

最後，如上所述，外匯逆風也影響了現金流。

Deferred revenue as of December 31, 2023, was approximately $287 million compared to $300 million from the prior-year fourth quarter.

截至 2023 年 12 月 31 日，遞延收入約為 2.87 億美元，而去年第四季的遞延收入為 3 億美元。

Backlog, which includes the sum of billed deferred revenue and noncancelable future revenue, was approximately $607 million as of December 31, 2023, compared to $578 million for the prior-year fourth quarter.

截至 2023 年 12 月 31 日，積壓訂單（包括帳單遞延收入和不可取消的未來收入總和）約為 6.07 億美元，而上年第四季為 5.78 億美元。

Business outlook.

業務前景。

The company is continuing to suspend guidance as to future financial results, until there is more clarity around the impacts from current litigation activity before the US federal courts and the company's ongoing litigation with Oracle.

該公司將繼續暫停對未來財務表現的指引，直到美國聯邦法院當前訴訟活動以及該公司與甲骨文正在進行的訴訟的影響更加明確。

For additional information and disclosures regarding the company's litigation with Oracle, please see our disclosures in the company's annual report on Form 10-K filed on February 28, 2024, with the US Securities and Exchange Commission.

有關公司與 Oracle 訴訟的更多資訊和披露信息，請參閱公司於 2024 年 2 月 28 日向美國證券交易委員會提交的 10-K 表格年度報告中的披露內容。

This concludes our prepared remarks.

我們準備好的演講到此結束。

Operator, we'll now take questions.

接線員，我們現在開始提問。

(Operator Instructions) Brian Kinstlinger, Alliance Global Partners.

（操作員說明）Brian Kinstlinger，Alliance Global Partners。

Hey, guys.

大家好。

Thanks for taking my question.

感謝您提出我的問題。

The first one -- I'm going to start on the expense side.

第一個－我將從費用方面開始。

You suspended revenue guidance for the obvious reason.

您出於顯而易見的原因暫停了收入指導。

So how do you plan on managing operating expenses over the next year?

那麼您計劃如何管理明年的營運費用？

While revenue is growing at a very modest (technical difficulty), do you expect to hold off making investments that's going to add OpEx with some investments that were just completed?

雖然收入成長非常緩慢（技術難度），但您是否預計會推遲進行一些剛完成的投資來增加營運支出？

Do you plan to cut costs?

您打算削減成本嗎？

Do you think holding the line where you are right now before there's more clarity is the option?

您認為在情況變得更加明朗之前，可以選擇保持現在的立場嗎？

I'd just like to get some more understanding on what you can control.

我只是想多了解你可以控制什麼。

Sure, Brian.

當然，布萊恩。

Great to have the call.

很高興接到電話。

Of course, I think you could tell from the size of the sales force, where I had mentioned we've continued to expand the sales force.

當然，我想你可以從銷售隊伍的規模來看，我剛才提到我們正在繼續擴大銷售團隊。

We're continuing to invest and lean in because of the size of the opportunity that we see.

由於我們看到了巨大的機會，我們將繼續投資並傾斜。

I think you're watching us relay that we are not looking to reduce costs.

我認為您正在看到我們傳達的訊息，即我們並不打算降低成本。

We are not in a hunkered down position.

我們並沒有處於原地踏步的境地。

We had modest growth across 2024, while we were busy spending and building out our global infrastructure to support all these different product lines that we've launched, including launching, as I mentioned in my prepared remarks today, the Rimini Consult, which is a very large program on a global basis, to take on and support, provide managed service for a huge number of additional product lines, including IBM and others.

我們在2024 年實現了適度增長，同時我們忙於支出和建設我們的全球基礎設施，以支持我們推出的所有這些不同的產品線，包括推出，正如我在今天準備好的發言中提到的，Rimini Consult，這是一個全球範圍內的非常大的計劃，為大量的附加產品線（包括 IBM 和其他公司）承擔和支援、提供託管服務。

So I think you're definitely not seeing us take a reduction of cost.

所以我認為你肯定不會看到我們降低成本。

I think the reductions we've made have all been about streamlining operations, where we're taking out some middle management.

我認為我們所做的削減都是為了精簡運營，我們正在裁減一些中階管理人員。

We're giving wider scopes of responsibility to vice presidents and above to get better leverage.

我們賦予副總裁及以上職位更廣泛的責任，以獲得更好的影響力。

But that's all about making sure that we're able to support and drive higher revenues and a more accelerated growth into '24 and beyond.

但這一切都是為了確保我們能夠支持和推動更高的收入，並在 24 世紀及以後實現更快的成長。

Great.

偉大的。

And then on the international business side, the year-over-year growth rate decelerated for the third consecutive quarter to about 4.5% just in the fourth quarter.

國際業務方面，年增速連續第三個季度放緩，僅第四季就降至4.5%左右。

What's driving the deceleration?

是什麼導致了減速？

Is there anything in the bookings trend that suggest a re-acceleration in the first half of '24?

預訂趨勢中是否有任何跡象顯示 24 年上半年會再次加速？

Well, again, without getting into the guidance side of things, just focused on the business, we had some issues.

好吧，再說一遍，在沒有進入指導方面的情況下，只專注於業務，我們遇到了一些問題。

We had some issues down in the ANZ, the Australia-New Zealand area.

我們在澳新銀行（澳洲-紐西蘭地區）遇到了一些問題。

We had some issues in the EMEA area, which we, of course, have taken significant steps.

我們在歐洲、中東和非洲地區遇到了一些問題，當然，我們已經採取了重大措施。

We have a brand-new GM running the EMEA region, which I'm very, very happy to announce.

我們有一位全新的總經理負責歐洲、中東和非洲地區的運營，我非常非常高興地宣布這一消息。

We brought him over from Adobe, a very strong player.

我們從 Adob​​e 挖來了他，他是一位非常強大的球員。

And in the ANZ market, we have a new leadership there as well, where we've turned things around, I believe.

在澳新銀行市場，我們也有了新的領導階層，我相信我們已經扭轉了局面。

So those two contributed to some of the challenges.

因此，這兩個人造成了一些挑戰。

We also have some evolution going on in Japan, where we have a very strong client base, our largest in all of Asia-Pac, as we now roll out our additional services there and we've reconfigured the sales force to be able to handle that.

我們在日本也發生了一些變化，我們在那裡擁有非常強大的客戶群，是我們在亞太地區最大的客戶群，因為我們現在在那裡推出了額外的服務，並且我們已經重新配置了銷售隊伍，以便能夠處理那。

I think, as you guys well understand, every time you reconfigure a sales force, you have a little bit of lag and disruption into the operation.

我認為，正如你們所了解的那樣，每次重新配置銷售團隊時，營運都會出現一些延遲和中斷。

We're very aware of that.

我們非常清楚這一點。

But these are the kinds of changes necessary to be able to support the growth, the accelerated growth, that we want in the future across all the product line portfolio.

但為了支持我們未來所有產品線組合的成長、加速成長，這些都是必要的改變。

Great.

偉大的。

Last question, I'll get back in the queue.

最後一個問題，我會回到隊列中。

It might be related and might be some of the same answer.

它可能是相關的，並且可能是一些相同的答案。

But you spoke to the 90% retention versus what's traditionally been, 3 to 5 points higher.

但您談到了 90% 的保留率，比傳統的保留率高出 3 到 5 個百分點。

Were there lost customers in these regions?

這些地區是否有客戶流失？

And was there a similar rationale for the handful or so -- how many customers left, or were they all different cases?

對於少數顧客是否有類似的理由──有多少顧客離開了，或者他們都是不同的情況？

Yeah.

是的。

I think, of course, as you can imagine, when we have higher retention losses than normal, if you look on a normalized basis, it happens.

當然，我認為，正如你可以想像的那樣，當我們的保留損失高於正常水平時，如果你在標準化的基礎上觀察，就會發生這種情況。

And it's happened over the years where you kind of go up and down.

多年來，這種情況一直在發生，你的情緒起起落落。

I could tell you that we had a few larger cancellations.

我可以告訴你，我們有一些較大的取消。

Two of them were in the Australian market, which were pretty significant.

其中兩個在澳洲市場，這是相當重要的。

But at the same time, those are existing clients.

但同時，這些都是現有客戶。

They are huge clients who rotated out on a couple products that they were running.

他們是大客戶，輪流使用他們正在運行的幾種產品。

But their natural rotations and some of those things, we just have to go back.

但他們的自然輪換和其中一些事情，我們只需要回去。

One of them, I think, was a loss we shouldn't have had, and so we've gone back to look at it.

我認為其中之一是我們不應該遭受的損失，因此我們回過頭來審視它。

The other one wasn't anything we could do about it.

另一件事我們也無能為力。

It was just a business rotation.

這只是一次業務輪調。

And then I saw one big one in the North American region, which came as a surprise, again, as part of an M&A.

然後我在北美地區看到了一個大事件，這再次令人驚訝，作為併購的一部分。

The biggest risk we always have is M&As because they change out management teams.

我們一直面臨的最大風險是併購，因為它們會取代管理團隊。

And we have to go in and resell our position when those management teams change.

當這些管理團隊發生變化時，我們必須介入並轉售我們的職位。

And so it is almost like a new sale because they don't know who we are, what are we doing in there.

所以這幾乎就像是一次新的銷售，因為他們不知道我們是誰，我們在那裡做什麼。

And that is a process that always creates risk for us.

這個過程總是帶給我們風險。

So in the world of business churn, M&As always present the biggest risk to the business in terms of ongoing contracts.

因此，在業務流失的世界中，就正在進行的合約而言，併購總是為企業帶來最大的風險。

But they often present new opportunities for us as well, where a management team may have been more stubborn or maybe not fully bought into the full portfolio.

但它們也經常為我們帶來新的機會，而管理團隊可能更加頑固，或者可能沒有完全接受整個投資組合。

Then we get a change of management, and we get to come in and expand our footprint.

然後我們進行了管理層的變更，我們可以介入並擴大我們的足跡。

But it does, generally, cause some level of churn when we have management change.

但一般來說，當我們進行管理層變動時，它確實會導致一定程度的客戶流失。

Great.

偉大的。

I have a few more, but I'll get back in the queue and let others ask.

我還有一些，但我會回到隊列中並讓其他人詢問。

Terrific.

了不起。

Thanks, Brian.

謝謝，布萊恩。

Daniel Hibshman, Craig-Hallum.

丹尼爾希布什曼，克雷格哈勒姆。

Hey, guys.

大家好。

Thanks for taking my questions.

感謝您回答我的問題。

It's Daniel, on for Jeff Van Rhee.

我是丹尼爾，傑夫·範·李 (Jeff Van Rhee) 發言。

Just on the employee count, I saw that was up 9% sequentially, about 10% year over year, but still getting the non-GAAP OpEx down sequentially and year over year.

僅就員工數量而言，我發現該數字環比增長了 9%，同比增長約 10%，但非 GAAP 營運支出仍然環比和同比下降。

Just curious how you managed that.

只是好奇你是怎麼做到的。

Was that in the geographies you were hiring?

這是在您招募的地區嗎？

Was the hiring really late in the quarter?

該季度的招募真的很晚嗎？

And then just maybe double-clicking on what areas you're hiring for -- I know for sales -- but just anything else on the road map, et cetera.

然後，也許只需雙擊您正在招募的領域（我知道是銷售領域），但也可以是路線圖上的其他任何內容，等等。

Sure.

當然。

Happy to answer that.

很高興回答這個問題。

I think you've got a few different things.

我認為你有一些不同的東西。

One, I'm not a big fan of the employee count numbers.

第一，我不太喜歡員工人數。

I know a lot of people look at that and say, well, if that percentage is higher than your actual growth, that looks like a problem.

我知道很多人看到這個後都會說，如果這個百分比高於你的實際成長，那看起來就是一個問題。

But it doesn't take into account the cost of the personnel.

但這沒有考慮人員成本。

A lot of those hires are in lower-cost geographies.

其中許多員工都在成本較低的地區。

We have two big delivery centers between India and Brazil, which present significantly different annual comp rates than you would have, for example, of course, in the United States or across in Europe.

我們在印度和巴西之間有兩個大型交付中心，它們的年度補償率與您在美國或歐洲各地的年補償率顯著不同。

So from that point of view, yes, we have lower costs coming into it.

所以從這個角度來看，是的，我們的成本較低。

That's one component that allows us to have the higher number of people by account number.

這是一個讓我們能夠擁有更多帳號的元件。

The second one is -- you're correct.

第二個是──你是對的。

We often do a lot of hiring on service delivery on the back end of the year.

我們經常在年底進行大量有關服務交付的招聘。

We are a back-end-loaded business.

我們是一家後端加載的企業。

And as you know, because we've been a bootstrap business with literally, what, $27.5 million of invested capital to drive over $400 million-a-year business, we have to use our own cash.

如你所知，因為我們一直是一家自舉企業，實際上擁有 2750 萬美元的投資資本來推動每年超過 4 億美元的業務，所以我們必須使用自己的現金。

What that means is we're very good at hiring just in time.

這意味著我們非常擅長及時招募。

We don't hire generally in advance of contracts.

我們一般不會在合約簽訂前進行招聘。

That allows us to minimize the burn cost of personnel not being utilized.

這使我們能夠最大限度地減少因未利用人員而造成的損失。

And we wait for the contract to sign, and then we aggressively hire to fill that.

我們等待合約簽署，然後積極招募來填補這個空缺。

And so that's very much with the fourth quarter.

第四季的情況就是如此。

As we grow our business in the fourth quarter, you're going to see a lot more hiring in the fourth quarter.

隨著我們在第四季度業務的成長，您將在第四季度看到更多的招募。

So of course, you haven't seen the ratable costs on that yet.

當然，您還沒有看到相應的應計費用。

So that is the combination that drives that.

這就是推動這一趨勢的組合。

And then on the billings and backlogs, those both came in pretty nicely.

然後在帳單和積壓訂單方面，這兩個指標都非常好。

Just any more color on that in terms of the biggest drivers of that, in terms of what's coming down the pipeline?

就最大的驅動因素而言，就即將發生的事情而言，還有更多的色彩嗎？

Any particular verticals, applications, services -- what platform is seeing strength there?

任何特定的垂直領域、應用程式、服務——哪個平台在其中看到了優勢？

Thanks.

謝謝。

Well, I think we're seeing, again, good strength across all platforms.

嗯，我認為我們再次看到了所有平台的強大。

I think, again, as I mentioned in the prepared remarks, specifically strong in the SAP world, where you've got thousands and thousands of companies being pressured by SAP to move their systems between 2025 and 2027, with threats of desupport, no longer being supported, which, of course, is untenable for a major organization.

我再次認為，正如我在準備好的發言中提到的那樣，在SAP 領域尤其如此，SAP 向成千上萬的公司施壓，要求他們在2025 年至2027 年間遷移其係統，並以取消支持為威脅，不再需要這樣做。得到支持，這對一個主要組織來說當然是站不住腳的。

And so that's created, again, an upward swing in demand.

因此，這又造成了需求的上升。

Because Rimini Street offers the only really proven global solution for large enterprises to make that move and continue to use the product for years to come.

因為 Rimini Street 為大型企業提供了唯一真正經過驗證的全球解決方案，以便他們採取行動並在未來幾年繼續使用該產品。

The other area we saw a lot of growth in is the Salesforce managed service.

我們看到大量成長的另一個領域是 Salesforce 託管服務。

Again, Salesforce is a big, complex platform.

同樣，Salesforce 是一個龐大而複雜的平台。

It requires additional work and support, just like any other enterprise platform.

就像任何其他企業平台一樣，它需要額外的工作和支援。

And Rimini Street's well positioned to provide those services to clients, even to other big service providers like NTT, who utilize us to manage their Salesforce platform.

Rimini Street 完全有能力向客戶提供這些服務，甚至向 NTT 等其他大型服務提供者提供這些服務，他們利用我們來管理他們的 Salesforce 平台。

And then maybe last for me, just on -- you already spoke to some of the cost structure expectations for '24.

然後對我來說可能是最後一個——您已經談到了 24 年的一些成本結構預期。

But specifically on legal, professional, just any thoughts on how we should be expecting that -- similar year in '24 relative to '23?

但特別是在法律、專業方面，我們該如何期待這一點——24 年與 23 年類似的一年？

And then the $9.7 million, was that already paid out?

那麼970萬美元已經支付了嗎？

And where would I be seeing that on the financials?

我會在財務報表的哪裡看到這一點？

Yeah.

是的。

I'll let Michael answer where to see the $9.7 million on the financials.

我會讓麥可回答在哪裡可以看到 970 萬美元的財務數據。

But that was a settlement of legal fees between Oracle and us.

但這是甲骨文和我們之間法律費用的和解。

We settled that rather than continue it on in the court.

我們解決了這個問題，而不是在法庭上繼續下去。

And that was already reserved to a significant amount.

而且已經預留了大量資金。

I believe that was already reserved somewhere in the $6 million, and Michael can answer that.

我相信這 600 萬美元已經被預留了，麥可可以回答這個問題。

So there was an additional amount.

所以還有額外的金額。

But we had already looked at that, and that's where we came to a conclusion.

但我們已經研究過這一點，這就是我們得出的結論。

But that ended the end of the content component of the trial side.

但這結束了試用方的內容部分。

So at this point in time, as we always say, when we don't have a trial year, which 2024, there is no trial, we do have the appeals that are pending that I mentioned in my prepared remarks.

因此，在這個時候，正如我們常說的，當我們沒有審判年時，即 2024 年，沒有審判，我們確實有我在準備好的發言中提到的待決上訴。

Those will continue through the process to the district court as well as the appellate court.

這些案件將繼續向地區法院和上訴法院提起訴訟。

But that generally does not add up to the kind of cost that you see when we have a full-blown trial.

但這通常不會達到我們進行全面試驗時所看到的成本。

So I think when you look at the cost, we mentioned about how in Q1 '24, we had paid out a significant amount of legal bills relating to the Oracle trial in late 2022.

因此，我認為當您查看成本時，我們提到了在 24 年第一季度，我們支付了與 2022 年底 Oracle 審判相關的大量法律費用。

So I think -- take that back, and you can notice that we probably would expect more moderate fees coming into '24 from what we've seen in that fee structure.

所以我認為 - 收回這一點，你可以注意到，從我們在該費用結構中看到的情況來看，我們可能會期望 24 年的費用會更加適中。

And Michael here.

還有麥可在這裡。

Just as Seth noted, in Q4 2023, of the $4.3 million of legal-related expenses, $2.7 million was associated with the settlement.

正如 Seth 指出的那樣，2023 年第四季度，在 430 萬美元的法律相關費用中，有 270 萬美元與和解相關。

The total settlement, as Seth noted, was $9.7 million.

正如 Seth 所說，和解總額為 970 萬美元。

And that cash was also dispersed in Q4 of last year.

這些現金也在去年第四季分散。

We previously, in excess of 18 months ago, reserved $6.9 million of the total $9.7 million.

18 個多月前，我們預留了 970 萬美元總額中的 690 萬美元。

So that's the timing, if that helps.

如果有幫助的話，這就是時機。

Okay.

好的。

Yeah, that's great.

是的，那太好了。

Thanks for the details, and that's it for me.

感謝您提供詳細信息，這對我來說就是這樣。

Thanks, guys.

多謝你們。

Thank you.

謝謝。

(Operator Instructions) Derrick Wood, TD Cowen.

（操作員說明）Derrick Wood，TD Cowen。

(technical difficulty)

（技術難度）

Did we lose someone?

我們失去了一個人嗎？

Trying to open up his line again.

試圖再次打開他的線路。

Just second, please.

請第二個。

Okay, there he is.

好吧，他就在那裡。

How's that?

怎麼樣？

Sorry.

對不起。

Go ahead, Derrick Wood.

繼續吧，德里克伍德。

There you go.

就這樣吧。

Right.

正確的。

Yeah, thanks.

是的，謝謝。

Sorry, this is [Colin] for Derrick.

抱歉，這是 Derrick 的 [Colin]。

The total customer count was down quarter over quarter.

客戶總數季減。

I mean, you guys mentioned that the NRR decel or downtick, rather, was mostly from pressure where customers were ending kind of subscription on certain products but staying on others.

我的意思是，你們提到 NRR 減速或下降主要是因為客戶結束某些產品的訂閱但繼續購買其他產品的壓力。

So kind of help me bridge -- is some of the NRR pressure from customers just totally going off the Rimini platform, as seen in the total customer count number?

那麼請幫我解決問題——正如客戶總數所示，來自客戶的一些 NRR 壓力是否完全脫離了 Rimini 平台？

Or is it kind of -- these are smaller customers churning off, and the larger ones that are hitting NRR are still customers at the end of the day?

或者是這樣的——這些小客戶正在流失，而達到 NRR 的大客戶最終仍然是客戶？

I think you've got to mix.

我認為你必須混合。

You've got some customers rolling off.

您已經有一些客戶流失了。

And I think what we saw, really, through '24, some of this is related to the pandemic.

我認為我們在 24 年所看到的情況確實與大流行有關。

We had customers who were in the process of moving off, who had extended the life of their products for a few more years.

我們有一些即將搬走的客戶，他們已經將產品的使用壽命延長了幾年。

So I think '24 was a bit of an interesting year.

所以我認為 24 年是有點有趣的一年。

Some customers who had extended, finally, moving forward those projects that had been delayed during the pandemic.

一些客戶最終延長了在疫情期間被推遲的項目。

And I think that was a little bit more of the roll-off that you saw in this, with some delayed roll-off that might have been in prior years.

我認為這與您在本次中看到的滾降更多一些，以及前幾年可能出現的一些延遲滾滾。

So I think that that is a catch-up component.

所以我認為這是一個追趕的組成部分。

And I didn't see anything during the year that was otherwise alarming or in any way, saw a trend.

這一年裡我沒有看到任何令人擔憂的事情，或以任何方式看到趨勢。

We didn't see that.

我們沒有看到這一點。

You have, for example, PeopleSoft, JD Edwards, and Siebel clients.

例如，您有 PeopleSoft、JD Edwards 和 Siebel 客戶。

Those three platforms have been sunsetted.

這三個平台已經淘汰。

There is no future product for those folks.

這些人沒有未來的產品。

They have to change to another product.

他們必須改用另一種產品。

When they move off these platforms, they will completely move to something new.

當他們離開這些平台時，他們將完全轉向新的東西。

And so you are seeing some sunset of some of those people moving.

所以你會看到一些人在日落時移動。

That's natural in a sunset on a product line.

這對於產品線的夕陽來說是很自然的。

And then again, you see others who are coming on board.

然後，你會再次看到其他人加入進來。

So I don't think there's any real trend here that differs year over year.

所以我認為這裡沒有任何逐年不同的真正趨勢。

I just think you have some ups and downs.

我只是覺得你有一些起伏。

And if you look at some of the bigger losses that happened, as I mentioned, related to management changes of M&A, where they decided to go a different direction, you have some of them where they had some internal issues that they needed to address in terms of dropping this product line, adding another.

正如我所提到的，如果你看看發生的一些更大的損失，這些損失與併購的管理層變動有關，他們決定走不同的方向，你會發現其中一些損失是他們需要解決的一些內部問題。放棄這個產品線，增加另一個產品線。

We had one large client who dropped a large component but also added in the same week a large component.

我們有一個大客戶，他放棄了一個大型組件，但在同一周又添加了一個大型組件。

So this is part of what you get when you service a customer on a wider portfolio.

因此，這是當您透過更廣泛的產品組合為客戶提供服務時所獲得的一部分。

There will be ups and downs in terms of what they sign up for, what they drop.

他們註冊的內容和放棄的內容都會有起有落。

They're living, breathing, moving organizations.

他們是有生命、會呼吸、會移動的組織。

And there's nothing frozen about what we do.

我們所做的事情沒有什麼是凍結的。

And sometimes, those will be bigger pieces; sometimes, they'll be smaller.

有時，這些會是更大的部分；有時，它們會更小。

But we didn't see any trend in terms of what we saw in the fourth quarter versus the rest of the year.

但與今年剩餘時間相比，我們沒有看到第四季度的任何趨勢。

Now in terms of total clients, part of what you're watching is, we launched so many new products that we had our sellers over-rotated into cross-selling existing clients rather than bringing on new logos.

現在就客戶總數而言，您所看到的部分內容是，我們推出瞭如此多的新產品，以至於我們的賣家過度轉向交叉銷售現有客戶，而不是引入新徽標。

Not an uncommon problem when you expand out a portfolio, and it's popular with your existing client base.

當您擴展產品組合時，這並不是一個罕見的問題，而且它很受您現有客戶群的歡迎。

And it's easier money.

而且賺錢也比較容易。

So we are putting incentives in place in '24 to incent sellers to take the tougher road of going out and bringing in new logos.

因此，我們將在 24 年制定激勵措施，以激勵賣家走上更艱難的道路，走出去並引入新標誌。

And we're working on a multiple set of programs to drive and rotate back to more new logo acquisition.

我們正在製定多套計劃，以推動和轉向更多新徽標的獲取。

You saw the number there was a small increase in total new logos.

您看到新徽標總數略有增加。

That's exactly what you're watching.

這正是你所看到的。

It's all the cross-sell activity.

這都是交叉銷售活動。

It's over-rotated, and we need to balance it better in '24.

它過度旋轉，我們需要在 24 年更好地平衡它。

Great, super helpful.

太棒了，超級有幫助。

And then just one more for me.

然後再給我一個。

In terms of the sales force and reps, with Rimini Custom coming online here, how are you getting reps up to speed so that they can sell into the existing customer base, and go out and sell new customers on the new portfolio here?

就銷售團隊和銷售代表而言，隨著 Rimini Custom 在這裡上線，您如何讓銷售代表加快速度，以便他們能夠向現有客戶群進行銷售，並在這裡向新客戶銷售新產品組合？

It has already been trained for the sales team.

它已經針對銷售團隊進行了培訓。

They've already received training for it.

他們已經接受過這方面的訓練。

We just had our sales ready, SKO kickoff just literally weeks ago in early January, where they did learn about Custom.

我們剛剛準備好銷售，SKO 就在幾週前的 1 月初啟動，他們在那裡了解了 Custom。

They've learned about all the different product lines.

他們了解了所有不同的產品線。

It was a fantastic week of learning and training for the global organization.

對於這個全球組織來說，這是非常棒的學習和培訓一週。

Over 400 people from the global revenue organization from all the countries around the world were together, led by our sales and revenue enablement organization.

來自世界各國的全球收入組織的 400 多名人員齊聚一堂，由我們的銷售和收入支援組織領導。

So I'm very confident in our ability to go out and position this product.

所以我對我們走出去定位這個產品的能力非常有信心。

Rimini Custom is unlike anything else we've ever launched.

Rimini Custom 與我們推出的其他產品不同。

It's basically opening the door and saying, Rimini Street is the best provider of enterprise software support in the world.

它基本上是在敞開大門並宣稱，Rimini Street 是世界上最好的企業軟體支援供應商。

And we believe we are also the best provider of the managed service for those products.

我們相信我們也是這些產品託管服務的最佳提供者。

And because we have our secret sauce of systems, processes, the technology, the people, that we're able to use, we believe we can provide service to a wide variety of products that we've never offered service for.

因為我們擁有我們能夠使用的系統、流程、技術和人員的秘密武器，所以我們相信我們可以為我們從未提供過服務的各種產品提供服務。

And that is, again, an amazing offering of opening the door and saying, bring us your enterprise product if you want to get it supported, you want to get it managed, you want us to extend the life, you want to get better service on it.

這又是一個令人驚嘆的產品，打開大門並說，如果您想要獲得支持、想要對其進行管理、想要我們延長使用壽命、想要獲得更好的服務，請將您的企業產品帶給我們在上面。

We believe we can do that better than anyone else on just about every enterprise product out there.

我們相信，在幾乎所有企業產品上，我們都能比其他人做得更好。

Helpful.

有幫助。

I'll cede the floor.

我將讓出發言權。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you.

謝謝。

There are no further questions at this time.

目前沒有其他問題。

I will now hand the call back to Seth Ravin for the closing remarks.

現在我將把電話轉回給塞斯·拉文（Seth Ravin）做總結發言。

Great.

偉大的。

Thank you so much, everyone, again, for joining us on the fourth-quarter '23 earnings call and full-year earnings call.

再次非常感謝大家參加我們的 23 年第四季財報電話會議和全年財報電話會議。

I want to thank all of our Rimini Street colleagues, once again, for their great efforts over the past quarter and the year.

我要再次感謝所有里米尼街同事在過去的季度和這一年所做的巨大努力。

It was a magnificent year of change and growth for the company in repositioning ourselves as a much larger enterprise player.

對公司來說，這是變革和成長的輝煌一年，我們將自己重新定位為更大的企業參與者。

We look forward to having all of you join us on the next earning call.

我們期待你們所有人加入我們的下一次財報電話會議。

I will discuss the first-quarter 2024 results -- and as you know, that's coming up pretty quickly -- and select second-quarter 2024 performance-to-date commentary as well.

我將討論 2024 年第一季的業績（如您所知，這一結果很快就會公佈），並選擇 2024 年第二季的最新業績評論。

Until then, wishing you and yours a continued good health.

在此之前，祝福您和您的家人身體健康。

Our thoughts and continued charitable support for those in need and in war around the world.

我們對世界各地有需要的人和戰爭中的人們的想法和持續的慈善支持。

Just always remembering we generally have it so much better and so many others suffering in an arms way.

只要永遠記住，我們的情況總體上要好得多，而許多其他人則在遭受武裝方面的痛苦。

So with that thought, thank you very much, and have a good day.

因此，非常感謝您，祝您有美好的一天。

Thank you.

謝謝。

Ladies and gentlemen, the conference has now ended.

女士們、先生們，會議現已結束。

Thank you all for joining.

感謝大家的加入。

You may all disconnect.

你們都可以斷開連線。