Unisys Corp (UIS) 2023 Q4 法說會逐字稿

Good day and welcome to the Unisys Fourth Quarter 2023 earnings conference call.

美好的一天，歡迎參加 Unisys 2023 年第四季財報電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Michaela Pewarski, Vice President, Investor Relations.

現在我想將會議交給投資者關係副總裁 Michaela Pewarski。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線生。

Good morning, everyone.

大家，早安。

Thank you for joining us this morning.

感謝您今天早上加入我們。

Unisys released its fourth quarter and full year financial results.

Unisys 發布了第四季度和全年財務業績。

I'm joined this morning to discuss those results by Peter Altabef, our Chair and CEO; Deb McCann, our CFO; and Mike Thomson, our President and COO, who will participate in the Q&A session.

今天早上，我們的董事長兼執行長 Peter Altabef 與我一起討論了這些結果。 Deb McCann，我們的財務長；我們的總裁兼營運長 Mike Thomson 將參加問答環節。

As a reminder, certain statements in today's conference call contain estimates and other forward-looking statements within the meaning of the securities laws.

提醒一下，今天電話會議中的某些陳述包含證券法含義內的估計和其他前瞻性陳述。

We caution listeners that the current expectations, assumptions and beliefs forming the basis of our forward-looking statements include many factors that are beyond our ability to control or estimate precisely.

我們提醒聽眾，構成我們前瞻性陳述基礎的當前預期、假設和信念包括許多超出我們精確控製或估計能力的因素。

This could cause results to differ materially from our expectations.

這可能會導致結果與我們的預期大不相同。

These items can also be found in the forward-looking statements section of today's earnings release furnished on Form eight K and in our most recent Forms 10 K and 10 Q as filed with the SEC we do not by including this statement, assume any obligation to review or revise any particular forward-looking statement referenced herein in light of future events.

這些項目也可以在今天的收益報告的前瞻性聲明部分中找到，表格 8 K 以及我們向 SEC 提交的最新表格 10 K 和 10 Q 中，我們並不通過包含此聲明而承擔任何義務：根據未來事件審查或修改本文引用的任何特定前瞻性聲明。

We will also be referring to certain non-GAAP financial measures such as non-GAAP operating profit or adjusted EBITDA that excludes certain items such as post retirement expense, cost reduction activities in other expenses.

我們也將提及某些非公認會計準則財務指標，例如非公認會計準則營業利潤或調整後的 EBITDA，其中不包括退休後費用、其他費用中的成本削減活動等某些項目。

The company believes are not indicative of its ongoing operations as they may be unusual or non-recurring.

該公司認為這並不表明其正在進行的業務，因為它們可能是不尋常的或非經常性的。

We believe these measures provide a more complete understanding of our financial performance.

我們相信這些措施可以讓我們更全面地了解我們的財務表現。

However, they are not intended to be a substitute for GAAP and non-GAAP measures have been reconciled to the related GAAP measures, and we have provided reconciliations within the presentation.

然而，它們並非旨在取代公認會計準則，且非公認會計準則措施已與相關公認會計準則措施進行了調節，並且我們已在簡報中提供了調節。

Slides accompanying today's presentation are available on our investor website So with that, I'd like to turn the call over to Peter.

今天的簡報附帶的幻燈片可以在我們的投資者網站上找到。因此，我想將電話轉給 Peter。

Thank you, Makela.

謝謝你，馬凱拉。

Good morning and thank you all for joining us to discuss the Company's fourth quarter and full year results.

早安，感謝大家加入我們討論公司第四季和全年業績。

Our fourth quarter performance capped a successful year for the Company.

我們第四季的業績為公司成功的一年畫上了圓滿的句點。

Despite ongoing macro economic uncertainty, we delivered on our targets and progressed toward our long-term goals in 2023, we grew full year revenue by 1.8% as reported and 1.6% in constant currency.

儘管宏觀經濟持續存在不確定性，但我們還是實現了目標，並朝著 2023 年的長期目標取得了進展，全年收入按報告增長了 1.8%，按固定匯率計算增長了 1.6%。

Our non-GAAP operating margin was 7% for the year and adjusted EBITDA margin was 14.2%.

我們本年度的非 GAAP 營業利益率為 7%，調整後 EBITDA 利潤率為 14.2%。

All of these metrics were above our original guided ranges and above the upwardly revised ranges we provided last quarter.

所有這些指標都高於我們最初的指導範圍，也高於我們上季度提供的向上修正的範圍。

Excluding license and support revenue grew 4.9%, both as reported and in constant currency in 2023.

根據報告和以固定匯率計算，2023 年不包括授權和支援的收入成長了 4.9%。

During the year, we strengthened our foundation for growth in multiple ways.

這一年，我們多方夯實成長基礎。

First, we demonstrated strong client loyalty.

首先，我們展現了強烈的客戶忠誠度。

Renewing 96% of the contract was more than 1 million and TCV that came up for renewal in 2023.

96%的續約合約金額超過100萬，且2023年續約的TCV。

We also improved our new business signings and pipeline in 2023.

我們也改善了 2023 年的新業務簽約和通路。

New business TCV grew 18% from the prior year, and we grew our new business pipeline by 19% during the year.

新業務 TCV 比前一年成長 18%，年內我們的新業務管道成長了 19%。

We also built awareness for our solution portfolio with clients, partners, industry analysts and advisers.

我們也與客戶、合作夥伴、產業分析師和顧問建立了對我們的解決方案組合的認識。

For instance, we improved our ranking in nearly half of the major 2023 analysts and adviser reports that had included Unisys in the prior year.

例如，我們在近一半的 2023 年主要分析師和顧問報告中的排名有所提高，其中去年包括了 Unisys。

We also forged several new partnerships, including two arrangements with consulting partners that are expected to drive referrals to Unisys as their preferred solution integrator.

我們還建立了幾個新的合作夥伴關係，包括與諮詢合作夥伴的兩項安排，預計將推動 Unisys 作為他們的首選解決方案整合商。

At the same time, we strengthened and expanded key relationships with hyperscalers, OEMs and other alliances.

同時，我們加強並擴大了與超大規模企業、原始設備製造商和其他聯盟的重要關係。

Finally, we made investments in innovation to expand our next-generation solutions and advance industry specific solutions such as Unisys logistics optimization.

最後，我們對創新進行了投資，以擴展我們的下一代解決方案並推進 Unisys 物流優化等行業特定解決方案。

These accomplishments supports future growth and advance us toward our long-term goals.

這些成就支持未來的成長並推動我們實現長期目標。

Before Dave reviews our fourth quarter and full year financial results, I will provide an update on some of our leading indicators and key strategic initiatives beginning with client signs.

在戴夫回顧我們第四季度和全年的財務業績之前，我將提供一些領先指標和關鍵戰略舉措的最新信息，從客戶跡象開始。

Fourth quarter TCV increased more than 300% sequentially and more than 50% year on year, resulting in a full year TCV increase of 3%.

第四季TCV季增超過300%，年增超過50%，導致全年TCV成長3%。

Excluding LNS, fourth quarter TCV was up more than 300% sequentially and 135% year for year, bringing full year XL. and S. TCV growth to 27%.

不包括 LNS，第四季 TCV 環比成長超過 300%，年成長 135%，全年實現 XL 成長。 S. TCV 成長至 27%。

Fourth quarter new business TCV, which consists of expansion, new scope and new logo, increased approximately 50% sequentially and 80% year over year.

第四季新業務 TCV（包括擴張、新範圍和新標誌）季增約 50%，較去年同期成長 80%。

New business TCV during both the quarter and the year was primarily driven by growth with existing clients among our notable client wins for the fourth quarter was a five year renewal and new scope contract with a leading biotechnology company encompassing both DWS. and CANI. solutions.

本季度和本年度的新業務TCV 主要是由現有客戶的成長推動的，我們在第四季度贏得的顯著客戶之一是與一家領先的生物技術公司（包括DWS）續訂了五年期合約和新範圍合約。和卡尼。解決方案。

This contract includes new scope elements, including communication and collaboration, technology support, software, asset management and mobile expense management.

該合約包括新的範圍要素，包括通訊和協作、技術支援、軟體、資產管理和行動費用管理。

Turning to our pipeline, our total company and ex L&S qualified pipelines are relatively flat year over year, a strong result given healthy fourth quarter signings and the headwinds from fewer expected scheduled renewal signings in 2024, as shown as new business pipeline grew 19% year over year.

就我們的管道而言，我們的公司總數和前L&S 合格管道與去年同期相比相對持平，考慮到第四季度的簽約情況良好以及2024 年預計計劃續約簽約數量減少帶來的不利因素，這一結果相當強勁，正如新業務管道年增19% 所示一年多了。

Within our new business pipeline, we're seeing encouraging signs with prospective clients.

在我們的新業務管道中，我們在潛在客戶中看到了令人鼓舞的跡象。

Our new logo pipeline is up 32% year over year, several key 2023 go-to-market initiatives have contributed to the quality and strength of our pipeline, especially our new logo pipeline.

我們的新徽標管道年增 32%，幾項關鍵的 2023 年上市計劃為我們管道的品質和實力做出了貢獻，尤其是我們的新徽標管道。

In our direct sales teams, we introduced new pricing tools, training and standardization that has brought increased rigor and speed to our proposal pricing and review processes.

在我們的直銷團隊中，我們引入了新的定價工具、培訓和標準化，提高了我們的提案定價和審核流程的嚴謹性和速度。

For 2024, we have further refined our commission structures to better align incentives with key objectives such as cross selling and growing certain next-generation solutions.

2024 年，我們進一步完善了佣金結構，以更好地將激勵措施與交叉銷售和發展某些下一代解決方案等關鍵目標結合起來。

Our marketing efforts are another key contributor to new business pipeline growth.

我們的行銷工作是新業務成長的另一個關鍵因素。

Our digital marketing campaigns have improved visibility to both our portfolio and our thought leadership.

我們的數位行銷活動提高了我們的產品組合和思想領導的可見度。

This is most evident in the rankings and sentiment toward Unisys among analysts and advisors that influence client purchasing decisions.

這在影響客戶購買決策的分析師和顧問對 Unisys 的排名和情緒中表現得最為明顯。

As I mentioned earlier, our 2023 ranking improved in nearly half of the major analysts' reports in which we appeared in the prior year.

正如我之前提到的，我們在 2023 年的排名在上一年出現的主要分析師報告中的近一半中有所提高。

And we received new leader rankings from highly regarded firms such as Amazon, Everest and I and St. We were also included as a leader or major player in new IDC reports in digital workplace and application monetization.

我們還獲得了 Amazon、Everest 和 I and St 等備受推崇的公司的新領導者排名。我們也被列為數位工作場所和應用程式貨幣化方面的新 IDC 報告中的領導者或主要參與者。

The results of our annual analyst and Advisor Perception survey which we commissioned through an independent research firm, further validate our gains with industry influencers.

我們透過獨立研究公司委託進行的年度分析師和顧問認知調查的結果進一步驗證了我們在產業影響者中的收穫。

For example, this year more than half of respondents Unisys digital workplace market vision as better than our competitors of 28 points and almost three-quarters of respondents recently recommended Unisys to a client, an increase of 14 points in influencer advocacy.

例如，今年超過一半的受訪者對 Unisys 數位工作場所的市場願景比競爭對手好 28 分，近四分之三的受訪者最近向客戶推薦 Unisys，在影響者宣傳方面增加了 14 分。

I'll now discuss X L & M's pipeline and client activity in each of our segments.

我現在將討論 X L & M 在每個細分市場的管道和客戶活動。

Cws pipeline is up 15% year over year, including more than 100% growth in our modern workplace pipeline.

Cws 管道數量年增 15%，其中現代工作場所管道數量增長超過 100%。

We're seeing growing interest in intelligent solutions, such as our smart PC refresh offer.

我們看到人們對智慧解決方案越來越感興趣，例如我們的智慧型 PC 更新產品。

We also have several large new opportunities in traditional workplace services.

我們在傳統工作場所服務領域也有幾個巨大的新機會。

We believe our commitment to delivery excellence in mission critical services is differentiating Unisys within the DWS market.

我們相信，我們致力於提供卓越的關鍵任務服務，讓 Unisys 在 DWS 市場中脫穎而出。

Our CANI. pipeline is also progressing up 3% year over year, despite more than 80% growth in 2023 sites.

我們的卡尼儘管 2023 個站點成長超過 80%，但管道建設仍年增 3%。

Demand tied to public sector digitization is leading to new opportunities.

與公共部門數位化相關的需求正在帶來新的機會。

For example, we have several prospects seeking to modernize licensing and permitting as well as identity access and management platforms.

例如，我們有一些潛在客戶尋求現代化許可和許可以及身分存取和管理平台。

We also have several opportunities to help clients modernize healthcare, higher education and Justice related record management systems.

我們還有很多機會幫助客戶實現醫療保健、高等教育和司法相關記錄管理系統的現代化。

India is an emerging bright spot within CANI. where pipeline grew nearly 16% year over year.

印度是 ​​CANI 中的一個新興亮點。其中管道較去年同期成長近 16%。

We deployed client technology officers on key accounts in the region, replicating a model we rolled out in DWS. in that region incorporating client technology officers brings thought leadership to the forefront of our conversations with these clients in the specialized services and next-generation compute portion of ECS, we expanded our product portfolio in 2023 with enhancements to our existing cargo portal and the launch of Unisys logistics optimization.

我們在該地區的關鍵客戶上部署了客戶技術官員，複製了我們在 DWS 中推出的模型。在該地區，客戶技術官員將思想領導帶到了我們與這些客戶在 ECS 的專業服務和下一代運算部分對話的最前沿，我們在 2023 年透過增強現有的貨運入口網站和推出Unisys 物流優化。

We also advanced development of more early-stage industry offerings for banking and financial services clients earlier this year, we integrated unit system logistics optimization with our first pilot clients' cargo management system and completed a successful pilot using live data within a test environment.

今年早些時候，我們還為銀行和金融服務客戶推進了更多早期行業產品的開發，我們將單元系統物流優化與我們的第一個試點客戶的貨物管理系統整合在一起，並在測試環境中使用即時數據成功完成了試點。

Currently, we are moving into production with our clients live environment.

目前，我們正在與客戶的現場環境一起投入生產。

Given the early signs of success and strong market demand, we are rapidly accelerating our commercialization efforts and formalizing our partner pricing and channel strategy across the Company.

鑑於成功的早期跡象和強勁的市場需求，我們正在迅速加快商業化工作，並在整個公司範圍內正式確定我們的合作夥伴定價和通路策略。

Clients are continuing to adopt, explore and experiment with artificial intelligence, including generative AI.

客戶正在繼續採用、探索和試驗人工智慧，包括生成式人工智慧。

Our effort here centers on using AI to advance business outcomes such as accelerating revenue and product development, reducing R&D and SG&A expenses and improving customer or employee satisfaction.

我們的工作重點是利用人工智慧來推動業務成果，例如加速收入和產品開發、減少研發和銷售、一般行政費用以及提高客戶或員工滿意度。

We're also supporting our clients' efforts to develop their own AI strategies and upskill their talent for example, in DWS, we are consulting with clients on their training measurement and business case creation for generative AI tools.

我們還支持客戶努力製定自己的人工智慧策略並提高他們的才能，例如，在 DWS 中，我們正在就生成式人工智慧工具的培訓衡量和業務案例創建向客戶提供諮詢。

We view AI as a powerful tool to help our clients and ourselves achieve breakthroughs faster, better and more efficiently than before.

我們將人工智慧視為一種強大的工具，可以幫助我們的客戶和我們自己比以前更快、更好、更有效率地實現突破。

We are focused on expanding and infusing AI into new and existing solutions rather than selling stand-alone AI solutions at a high level.

我們專注於將人工智慧擴展到新的和現有的解決方案中，而不是銷售高水準的獨立人工智慧解決方案。

There are three key elements to our approach to data and AI.

我們的數據和人工智慧方法包含三個關鍵要素。

First is what we call insights and relationships.

首先是我們所說的洞察力和關係。

We have many high-quality clients, many of which have decades-long relationships with Unisys intimate understanding of our clients' most important business aspirations and challenges, coupled with an eye to emerging industry trends are relevant to the clients our critical to identifying the highest value use cases for AI and helping our clients navigate AI investment opportunities.

我們擁有許多高品質的客戶，其中許多客戶與Unisys 有著長達數十年的合作關係，我們對客戶最重要的業務願望和挑戰的深入了解，再加上對與客戶相關的新興行業趨勢的關注，我們對識別最高的客戶至關重要。重視人工智慧的用例並幫助我們的客戶掌握人工智慧投資機會。

This is complemented by our deep industry domain expertise.

我們深厚的行業領域專業知識對此進行了補充。

Second is capability creation where we accelerate solutions that yield the greatest impact for our clients.

其次是能力建設，我們加速解決方案，為客戶帶來最大的影響。

This approach also includes techniques to make data actionable to enable faster realization of benefits of AI and data analytics.

這種方法還包括使數據具有可操作性的技術，以便更快實現人工智慧和數據分析的優勢。

We continue to evolve and utilize the best tools, engineering talent, advanced models and architectures as well as those of our alliance partners.

我們不斷發展和利用最好的工具、工程人才、先進的模型和架​​構以及我們的聯盟合作夥伴的工具、工程人才、先進的模型和架​​構。

Final element is delivery and realization here.

最後一個要素是交付和實現。

Our clients embrace the AI powered solutions.

我們的客戶接受人工智慧驅動的解決方案。

We deliver to achieve their strategic objectives and emissions solutions.

我們提供實現其策略目標的排放解決方案。

We are seeing client interest in our delivering personalized content to improve customer interactions, leveraging data and analytics and predictive modeling to increase factory or cargo productivity or synthesizing law and regulations to increase compliance internally, we're applying the same approach.

我們看到客戶對我們提供個人化內容以改善客戶互動、利用數據和分析以及預測模型來提高工廠或貨物生產力或綜合法律法規以提高內部合規性感興趣，我們正在應用相同的方法。

We're focused on using generative AI tools to speed delivery of solutions and to improve productivity within our delivery and corporate functions.

我們專注於使用生成式人工智慧工具來加速解決方案的交付並提高我們的交付和公司職能部門的生產力。

For example, our legal team deployed a new AI. tool in the fourth quarter for initial document review, which has already reduced the document and review resources required for certain matters regardless of the application, responsible AI, ethics and compliance are strong, guiding principles underlying our approach.

例如，我們的法律團隊部署了新的人工智慧。第四季的初始文件審查工具已經減少了某些事項所需的文件和審查資源，無論應用如何，負責任的人工智慧、道德和合規性都是強大的，是我們方法的指導原則。

Let's talk for a minute about Unisys logistics optimization in general, we believe we're entering into a new period for companies such as Unisys that are nimble, have an engineering core nCUBE combined capabilities such as AI and quantum in innovative ways will bring more relevant and compelling solutions to clients.

讓我們談談Unisys 物流優化的整體情況，我們相信我們正在進入一個新的時期，對於像Unisys 這樣靈活的、擁有工程核心nCUBE 的公司來說，以創新的方式結合人工智慧和量子等能力將帶來更多相關性並為客戶提供引人注目的解決方案。

Accessible data is critical to successful application of generative AI and many of our clients are challenged by the complexity of disparate datasets siloed within their infrastructure estates.

可存取的數據對於生成式人工智慧的成功應用至關重要，我們的許多客戶都面臨著其基礎設施中孤立的不同數據集的複雜性的挑戰。

We believe we can bring clients economic value by helping them modernize their applications, minimize their technical debt and CapEx and unlock the value inherent in their data.

我們相信，我們可以透過幫助客戶實現應用程式現代化、最大限度地減少技術債務和資本支出並釋放其數據固有的價值，為客戶帶來經濟價值。

Unisys logistics optimization is an example of that we can leverage a unique combination of advanced quantum computing expertise, AI acumen, developed through our working structuring and building data sets and decades of experience optimizing workflows within industries.

Unisys 物流優化就是一個例子，我們可以利用先進的量子運算專業知識、人工智慧敏銳度的獨特組合，這些知識是透過我們的工作結構和構建資料集以及數十年優化行業內工作流程的經驗而開發的。

We believe Unisys logistics optimization can serve as a blueprint for delivering tangible business value for our clients and for generating new revenue streams for Unisys.

我們相信 Unisys 物流優化可以作為為我們的客戶提供實際商業價值並為 Unisys 創造新收入來源的藍圖。

I would like to conclude with a brief update on how we are attracting, retaining and developing our associates in 2023 initiatives included global AI. train and increased internal fulfillment, which setup sourcing and help reduce our trailing 12 month voluntary attrition to 12.4% at year end, down from 18% last year in 2024.

最後，我想簡要介紹我們如何在 2023 年包括全球人工智慧在內的舉措中吸引、留住和發展我們的員工。培訓和提高內部履行度，從而建立採購並幫助我們將過去 12 個月的自願離職率減少到年底的 12.4%，低於去年 2024 年的 18%。

We are strengthening our winning culture and sense of community.

我們正在加強我們的致勝文化和社區意識。

A top priority this year is the launch of a new career pathing program to empower our associates to take control of their career development.

今年的首要任務是啟動新的職涯發展計劃，使我們的員工能夠掌控自己的職涯發展。

It will also enhance our mobility platform by matching associates with roles that advance them towards their career goals.

它還將透過為員工配對能夠推動他們實現職業目標的角色來增強我們的流動平台。

We're also modifying and enhancing our recognition and rewards programs to encourage associates to acknowledge each other's successes and career milestones.

我們也修改和增強我們的認可和獎勵計劃，以鼓勵員工認可彼此的成功和職業里程碑。

Lastly, we are launching a year-long events program to provide space for open discussions about our workforce experiences and challenges.

最後，我們將啟動一項為期一年的活動計劃，為公開討論我們的員工經驗和挑戰提供空間。

With that, I'll turn the call over to Deb.

這樣，我就把電話轉給黛布。

Thank you, Peter, and good morning, everyone.

謝謝你，彼得，大家早安。

My discussion today will refer to slides in the supplemental presentation posted on our website I will refer to revenue as reported as well as in constant currency, but was segment revenue growth only in constant currency.

我今天的討論將參考我們網站上發布的補充簡報中的幻燈片，我將參考報告的收入以及按固定匯率計算的收入，但部門收入增長僅以固定貨幣計算。

I will also provide information excluding license and support or X elements to allow investors to assess progress we are making outside the portion of ECS revenue and profit recognition is tied to license renewal timing, which can be uneven as Peter highlighted, we exceeded our upwardly revised 2023 revenue and profitability guidance and laid a strong foundation to support our future growth.

我還將提供不包括許可證和支援或X 元素的信息，以便投資者評估我們在ECS 收入和利潤確認部分之外所取得的進展，這與許可證續訂時間相關，正如Peter 強調的那樣，許可證續約時間可能會不均勻，我們超出了向上修正的範圍2023年的收入和盈利指引為支持我們未來的成長奠定了堅實的基礎。

Our performance this year progressed us towards our longer-term goals and demonstrates the resilience of our recurring revenue in an uncertain macroeconomic environment.

今年的業績使我們朝著長期目標邁進，並展示了我們在不確定的宏觀經濟環境中經常性收入的彈性。

We also furthered our cost initiatives, which will remain a priority in 2024 and will lay the groundwork for continued profitability and cash flow improvements.

我們也進一步推進了成本計劃，這仍將是 2024 年的優先事項，並將為持續獲利和現金流改善奠定基礎。

Looking at our results in more detail, you can see on slide 5 that Q4 revenue was 558 million up 0.1% year over year or a negative 2.1% decline in constant currency.

更詳細地查看我們的結果，您可以在投影片 5 中看到，第四季營收為 5.58 億美元，年增 0.1%，按固定匯率計算負下降 2.1%。

The decline was expected and driven by license renewal timing in our ECS segment.

這種下降是預料之中的，並且是由我們的 ECS 部門的許可證更新時間所推動的。

For the full year, revenue was 2.02 billion, up 1.8% year over year as reported and up 1.6% in constant currency.

全年營收為 20.2 億美元，年增 1.8%，以固定匯率計算成長 1.6%。

Excluding license and support.

不包括許可和支援。

Q4 revenue was $413 million, up 6.8% year over year as reported, or 4.3% in constant currency for the full year XL and US revenue was 1.59 billion, up 4.9% year over year as reported and in constant currency.

第四季營收為 4.13 億美元，以固定匯率計算年增 6.8%，XL 全年營收為 15.9 億美元，以固定匯率計算年增 4.9%。

These SLM Solutions accounted for 79% of total company revenue and had a next-gen solutions mix of 38% in 2023.

這些 SLM 解決方案占公司總收入的 79%，到 2023 年，下一代解決方案組合將佔 38%。

Now let's look at our segment revenue, which you can find on Slide 6 is a reminder that the segment revenue growth rates are about to discuss are in constant currency.

現在讓我們看看我們的細分市場收入，您可以在幻燈片 6 上找到它，它提醒我們即將討論的細分市場收入成長率是按固定匯率計算的。

In the fourth quarter, digital workplace revenue grew 6.3% year over year to 139 million, driven by new business with existing clients.

第四季度，在現有客戶新業務的推動下，數位工作場所營收年增 6.3% 至 1.39 億美元。

For the full year, DWS revenue was up 7% to 546 million growth resulted from new business signed during 2022 and strong in project revenue, particularly in the United States and Canada and Europe.

由於 2022 年簽署的新業務以及專案收入強勁，特別是在美國、加拿大和歐洲，DWS 全年營收成長 7%，達到 5.46 億美元。

Key solutions in 2023, including modern device management as well as traditional workplace services.

2023 年的關鍵解決方案，包括現代化設備管理以及傳統工作場所服務。

Fourth quarter C9 revenue declined 0.5% to 139 million due to a prior year benefit from the sale of surplus IP addresses.

第四季 C9 營收下降 0.5% 至 1.39 億，因為去年受益於出售剩餘 IP 位址。

Excluding this impact, segment growth would have been more than 2% with strong sales in our digital platform and application or DT. and A. solutions.

排除此影響，由於我們的數位平台和應用程式或 DT 的強勁銷售，該細分市場的成長將超過 2%。和 A. 解決方案。

Full year C&I revenue was $531 million, up 2.2% year over year.

全年工商業收入為 5.31 億美元，較去年同期成長 2.2%。

We had a good year of growth with both commercial and public sector clients offsetting some softness we have seen in the banking and financial services sectors where budgets have been more challenged.

我們度過了良好的成長一年，商業和公共部門客戶抵消了銀行和金融服務部門的一些疲軟，這些部門的預算面臨更大的挑戰。

Many of our commercial and public sector clients embrace higher value DT. and A. solutions in hybrid infrastructure, cybersecurity and application modernization, which leverages our engineering core more of our clients view the future as hybrid taking multi-cloud approaches to infrastructure incorporating private cloud co-locations and public clouds for tailored flexibility and security, our balance of expertise in mission critical services, hyperscaler partnerships and next-generation capabilities in data, artificial intelligence and application modernization align us well with these hybrid strategies, we are optimistic about the opportunities to further grow the C&I segment in 2020 form.

我們的許多商業和公共部門客戶都接受更高價值的數位技術。 A. 混合基礎設施、網路安全和應用程式現代化的解決方案，利用我們的工程核心更多的客戶認為未來是混合的，採用多雲方法來建立基礎設施，將私有雲託管和公有雲結合在一起，以實現定制的靈活性和安全性，我們的關鍵任務服務、超大規模合作夥伴關係以及數據、人工智能和應用程序現代化方面的下一代能力的專業知識平衡使我們與這些混合戰略很好地結合起來，我們對2020 年進一步發展C&I 細分市場的機會感到樂觀。

In our Enterprise Computing Solutions segment, fourth quarter revenue was 203 million, a decline of 12.2% due to lower license and support revenue.

在我們的企業計算解決方案部門，第四季度收入為 2.03 億美元，由於許可和支援收入下降，下降了 12.2%。

This was partially offset by modest growth in specialized services and next-gen compute for the full year, ECS revenue was 648 million, down 3.9% from 2022, again, with strength in specialized services and Nextra and compute, partially offsetting a decline in L&S revenue caused by the renewal schedule.

這被全年專業服務和下一代計算的溫和增長所部分抵消，ECS 收入為 6.48 億，較 2022 年下降 3.9%，再次憑藉專業服務、Nextra 和計算的實力，部分抵消了 L&S 的下降續訂計劃帶來的收入。

Timing, license and support revenue was 144 million in the fourth quarter and 429 million for the full year, exceeding our upwardly revised guidance of 420 million due to closings and smaller renewals earlier than anticipated.

第四季的定時、授權和支援收入為 1.44 億美元，全年為 4.29 億美元，超出了我們向上修正的 4.2 億美元的指導，因為關閉和續訂規模早於預期。

Notable fourth quarter renewals included signings of commercial and public sector clients in the United States and Canada and in Latin America.

第四季值得注意的續約包括美國、加拿大以及拉丁美洲的商業和公共部門客戶的簽約。

It is important to remember that ClearPath Forward license revenue is highly dependent on the specific client contracts up for renewal and the term and consumption levels of those renewals.

重要的是要記住，ClearPath Forward 許可證收入高度依賴續約的特定客戶合約以及這些續約的期限和消耗水平。

Backlog was 3 billion at the year end versus 2.4 billion at the end of third quarter and 2.9 billion last year.

截至年底，積壓訂單數量為 30 億，而第三季末為 24 億，去年為 29 億。

Sequential and year-over-year backlog growth was due to both the timing of renewals as well as strength in new business signings in our digital workplace segment.

積壓訂單的連續成長和逐年成長是由於續約的時機以及我們數位工作場所領域新業務簽約的強勁。

Turning to slide 7, we can see the fourth quarter gross profit was 181 million at 32.5% margin, down 160 basis points from the prior year due to the timing of higher margin elements solution renewals, excluding L&S, our fourth quarter gross margin of 16.5%, up from 11.8% in the prior year.

轉向幻燈片7，我們可以看到第四季度毛利為1.81 億美元，利潤率為32.5%，由於利潤率較高的元素解決方案更新的時間安排，比上年下降了160 個基點，不包括L&S，我們第四季的毛利率為16.5% %，高於上年的 11.8%。

Most of the expansion was due to the realization of savings from the prior year quarter's cost reduction charges, which we include in XL and US gross margin.

大部分擴張是由於上一季成本削減費用的節省，我們將其計入 XL 和美國毛利率。

Full year gross profit was 551 million, an increase of more than $22 million.

全年毛利為5.51億美元，成長超過2,200萬美元。

Gross margin expanded 70 basis points to 27.4%, improved delivery and pricing in our accelerated solutions and the realization of savings from prior year cost reduction charges allowed us to generate 22 million of incremental gross profit despite a $50 million headwind from L&S solutions.

毛利率擴大了70 個基點，達到27.4%，我們的加速解決方案改善了交付和定價，並且實現了上一年成本削減費用的節省，使我們能夠在L&S 解決方案帶來5000 萬美元的阻力的情況下實現2,200 萬美元的增量毛利。

Full year ex L&S, gross profit grew by 42% in 2023 to 240 million.

扣除 L&S 費用後，2023 年全年毛利成長 42%，達到 2.4 億美元。

This reflects a 15.1% gross margin compared to 11.2% last year.

這反映了 15.1% 的毛利率，而去年為 11.2%。

This improvement was largely driven by improvements in the C&I segment and SS&C solutions within ECS, including the realization of savings from prior year cost reduction charges, partially offset by a revenue reversal associated with the previously exited contract.

這項改進主要是由於 ECS 內的 C&I 部門和 SS&C 解決方案的改進所推動的，包括實現了上一年成本削減費用的節省，部分被與先前退出的合約相關的收入逆轉所抵消。

Within all other, I will now touch briefly on segment gross profit, which you will find on Slide 8.

在所有其他內容中，我現在將簡要介紹部門毛利，您可以在投影片 8 中找到這一點。

Q4 DWS gross margin was 15.3%, up slightly from 15.1%, driven by new business with existing clients, partially offset by investments we've made to modernize field service dispatch systems that were implemented late in the year and will help drive future delivery efficiency.

第四季DWS 毛利率為15.3%，較15.1% 略有上升，這是由現有客戶的新業務推動的，但部分被我們為實現現場服務調度系統現代化而進行的投資所抵消，這些投資於今年底實施，將有助於提高未來的交付效率。

Full year DWS gross margin was flat year over year at 14%.

全年 DWS 毛利率與去年同期持平，為 14%。

As we scale, we expect rising utilization, improved pricing, power growth in modern workplace and our deliberate investments to drive steady gross margin improvement in 2024 and beyond.

隨著我們規模的擴大，我們預計利用率的提高、定價的改善、現代工作場所的電力增長以及我們的刻意投資將推動 2024 年及以後的毛利率穩步提高。

Fourth quarter CNI gross margin was 16.3%, down from 19% in Q4 2022, primarily due to a benefit in the prior year from the sale of surplus IP addresses.

第四季 CNI 毛利率為 16.3%，低於 2022 年第四季的 19%，主要是由於上一年出售剩餘 IP 位址帶來的收益。

Full year C&I gross margin was 15.4%, up from 9.1% or 630 basis points in the prior year.

全年工商業毛利率為 15.4%，高於前一年的 9.1%，即 630 個基點。

More than 200 basis points of this improvement resulted from our cost initiatives such as labor market and contingent labor optimization and increased use of automation.

這項改善超過 200 個基點得益於我們的成本舉措，例如勞動力市場和臨時勞動力優化以及自動化使用的增加。

The remaining 400 basis points was due to delivery improvement of certain accounts from 2020 to our focus on these key accounts help de-risk the segment from future losses and strengthening key client relationships for future growth in 2020 for our CA 19 is building out more standardized solution architectures and increasing the use of generative AI to accelerate solution development and speed revenue generation.

剩下的400 個基點是由於2020 年某些帳戶的交付改善，我們對這些關鍵客戶的關注有助於降低該部門未來損失的風險，並加強關鍵客戶關係，以實現2020 年未來的成長，因為我們的CA 19 正在建立更加標準化的體系解決方案架構並增加生成式人工智慧的使用，以加速解決方案開發並加速創造收入。

Fourth quarter ECS gross margin was 67.4% compared to 73.3% in the prior year, again due primarily to L&S renewal timing.

第四季 ECS 毛利率為 67.4%，而上年同期為 73.3%，這同樣主要歸因於 L&S 續約時間。

Full year ECS gross margin was 61.2% compared to 64.5% in the prior year, driven by lower L&S revenue, partially offset by a 370 basis point improvement in SS&C margins driven by improved pricing as well as expansion signings with existing clients in sectors like life sciences and financial services.

ECS 全年毛利率為61.2%，而上年為64.5%，主要受到L&S 收入下降的推動，但部分被SS&C 利潤率提高370 個基點所抵消，而SS&C 利潤率因定價改善以及與壽險等行業現有客戶的擴展簽約而增長科學和金融服務。

Turning to Slide 9.

轉向幻燈片 9。

Fourth-quarter non-GAAP operating margin was 11.5% compared to 20.2% in the prior year with adjusted EBITDA of 100 million, a margin of 18% compared to 26.7% in Q4 2022.

第四季非 GAAP 營業利潤率為 11.5%，而去年同期為 20.2%，調整後 EBITDA 為 1 億美元，利潤率為 18%，而 2022 年第四季為 26.7%。

This was driven by lower L&S profit due to license renewal timing and higher compensation costs.

這是由於許可證更新時間和補償成本較高導致 L&S 利潤下降。

Full year non-GAAP operating margin was 7% versus 8% in 2022, and adjusted EBITDA was 286 million, a margin of 14.2% compared to 16.5% in 2022.

全年非 GAAP 營業利潤率為 7%，而 2022 年為 8%；調整後 EBITDA 為 2.86 億美元，利潤率為 14.2%，而 2022 年為 16.5%。

The full year decline was largely due to lower gross profit contribution from our license and support solutions.

全年下降主要是由於我們的許可和支援解決方案的毛利貢獻較低。

Fourth quarter GAAP net loss of $165 million or a diluted loss of $2.42 per share compared to diluted earnings of $0.12 per share in Q4 2022.

第四季 GAAP 淨虧損為 1.65 億美元，攤薄後每股虧損為 2.42 美元，而 2022 年第四季攤薄後每股收益為 0.12 美元。

On a non-GAAP basis, fourth quarter net income was 35 million.

以非公認會計準則計算，第四季淨利為 3,500 萬美元。

Our non-GAAP diluted earnings of $0.51 per share compared to $1.22 per share in fourth quarter 2022, our full year net loss was $431 million, or diluted loss of $6.31 per share compared to $1.57 per share loss in 2022.

我們的非GAAP 攤薄收益為每股0.51 美元，而2022 年第四季為每股1.22 美元。我們的全年淨虧損為4.31 億美元，攤薄後每股虧損為6.31 美元，而2022 年每股虧損為1.57 美元。

On a non-GAAP basis, full year net income was 42 million, or non-GAAP diluted earnings per share of $0.6 compared to $1.10 per share in 2022.

以非 GAAP 計算，全年淨利為 4,200 萬美元，或非 GAAP 攤薄後每股收益為 0.6 美元，而 2022 年為每股 1.10 美元。

Fourth quarter and full year net losses were largely driven by actions we took to reduce our US pension liabilities by approximately 500 million in total using pension assets, not corporate cash.

第四季和全年淨虧損主要是由於我們使用退休金資產（而不是公司現金）將美國退休金負債總共減少了約 5 億美元而採取的行動。

These actions resulted in two noncash pension settlement losses in the first and fourth quarters, which totaled $348 million and reflect accelerated recognition of accrued pension expense associated with the pensioners that were transferred as part of the two transactions.

這些行動導致第一季和第四季發生兩筆非現金退休金結算損失，總計 3.48 億美元，反映出與作為兩筆交易一部分轉移的退休金領取者相關的應計退休金費用的加速確認。

These annuity purchases reduce the volatility in our GAAP pension deficit and our projected future cash contributions as well as the future cost of a full pension risk transfer of our US qualified defined benefit pension plans as they lower the annuity purchase premiums that is based on total liabilities.

這些年金購買減少了我們的GAAP 退休金赤字和預計未來現金繳款的波動性，以及我們美國合格固定收益退休金計劃全額退休金風險轉移的未來成本，因為它們降低了基於總負債的年金購買保費。

Capital expenditures totaled approximately 19 million in the fourth quarter and 79 million for the full year in 2024, we expect capital expenditures of approximately 90 million to 100 million supporting both L&S and Exxon has growth while keeping in line with our CapEx-light strategy.

第四季的資本支出總額約為1,900 萬美元，2024 年全年資本支出約為7,900 萬美元，我們預計資本支出約為9,000 萬至1 億美元，支持L&S 和埃克森美孚的成長，同時與我們的輕資本支出策略保持一致。

Turning now to slide 10, free cash flow.

現在轉向幻燈片 10，自由現金流。

We generated 4 million of free cash flow in the fourth quarter, bringing our full year free cash flow to negative 5 million compared to negative 73 million last year.

第四季我們產生了 400 萬自由現金流，使我們全年自由現金流從去年的負 7,300 萬降至負 500 萬。

This put us ahead of the expectations we provided last quarter of negative 25 to negative 30 million, which is largely the result of improvements in working capital and higher than expected profitability in 2024, we expect to be free cash flow positive by approximately 10 million.

這使我們領先於上季度我們提供的負25至負3000萬的預期，這主要是由於營運資金改善和2024年盈利能力高於預期的結果，我們預計自由現金流將增加約1000萬。

This reflects expectations for cash taxes to decline to approximately 50 million compared to approximately 63 million in 2023 for net interest payments that are in line with 2023 levels of approximately 20 million.

這反映了現金稅預計將從 2023 年的約 6,300 萬下降至約 5,000 萬，而淨利息支付則與 2023 年約 2,000 萬的水準一致。

Pension contributions of approximately 20 million as well as environmental, legal and restructuring and other payments of 75 million to 80 million, relatively in line with 2023.

退休金繳款約 2,000 萬，環境、法律和重組及其他付款為 7,500 萬至 8,000 萬，與 2023 年的情況相對一致。

Turning now to Slide 12.

現在轉到投影片 12。

Our cash and cash equivalents balance was $388 million at year end, relatively consistent with 392 million at the end of 2022, our net leverage ratio, including all defined benefit pension plans, was 2.9 times, up from 2.1 times at the end of 2022.

截至年底，我們的現金和現金等價物餘額為3.88 億美元，與2022 年底的3.92 億美元相對穩定，我們的淨槓桿率（包括所有固定福利退休金計劃）為2.9 倍，高於2022 年底的2.1 倍。

Leverage was higher primarily due to the increase in the GAAP pension deficit, which I will discuss shortly.

槓桿率較高主要是由於公認會計準則退休金赤字增加，我將很快討論這一點。

Our liquidity is strong and cash balances are well ahead of where we anticipated they would be when we started the year with no major debt maturities in 2024 and no borrowings against our revolver.

我們的流動性強勁，現金餘額遠遠超過我們年初的預期，2024 年沒有重大債務到期，也沒有針對我們的左輪手槍的借款。

I will now provide an update on our global pension plans.

我現在將介紹我們全球退休金計劃的最新情況。

Our global GAAP pension deficit, which can be seen on slide 13, was approximately 700 million compared to approximately 540 million at the end of 2020 to about $70 million of this $160 million increase was related to the purchase of insurance contracts by our overfunded UK plan as a first step in eliminating the plans from our corporate balance sheet, effectively eliminating the surplus associated with these overfunded plans.

我們的全球GAAP 退休金赤字約為7 億美元（如幻燈片13 所示），而2020 年底約為5.4 億美元，這1.6 億美元的增量中約7,000 萬美元與我們資金過剩的英國計劃購買保險合約有關作為從公司資產負債表中消除這些計劃的第一步，有效消除與這些資金過剩的計劃相關的盈餘。

The remaining roughly $90 million increase was due to the net impact of lower discount rates partially offset by returns in plan assets.

剩餘的約 9000 萬美元的增長是由於較低的貼現率的淨影響被計劃資產的回報部分抵消了。

At the end of the year, we report a detailed estimated 10-year expected cash contribution forecast, which you can see on slide 14, expected contributions to our global pension plans for the five year period beginning in 2020 for our 484 million, 48 million lower than our projections at the beginning of 2023.

在年底，我們報告了詳細的10 年預期現金繳款預測，您可以在投影片14 中看到，從2020 年開始的五年期間，我們對全球退休金計畫的預期繳款為4.84 億、4800萬低於我們 2023 年初的預測。

We will continue to evaluate opportunities for additional reduction in our global defined benefit pension obligations, depending on overall market conditions, which could result in material non-cash settlement charges like those we have incurred over the past few years.

我們將根據整體市場狀況，繼續評估進一步減少全球固定福利退休金義務的機會，這可能會導致像我們過去幾年發生的那樣的重大非現金結算費用。

I will now discuss our guidance ranges and provide additional 2024 color, which can be seen on Slide 15.

我現在將討論我們的指導範圍並提供額外的 2024 年顏色，這可以在幻燈片 15 中看到。

Looking ahead, the revenue growth upside we captured in 2023 in both our XLNS. and L. and S. solutions creates a more difficult comparison for 2024.

展望未來，我們的 XLNS 將於 2023 年實現營收成長。 L. 和 S. 解決方案為 2024 年創建了更困難的比較。

Specifically, we had nearly 40 million of incremental revenue and profit in 2023 from signing a multiyear L&S renewal that had been expected to be a single year renewals it is important to note that even with this contract signing in 2023, we see positive trends in the continued and in some cases, expanding use of our platforms and so we now expect 370 million average annual L&S revenue for the three years beginning in 2024, a $10 million annual increase from our previous projections of 360 million for total company revenue, we expected guidance range for constant currency revenue growth of negative 1.5% to positive 1.5%.

具體來說，我們在2023 年通過簽訂多年期L&S 續約而獲得了近4000 萬的增量收入和利潤，而該續約原本預計是一年續約，但值得注意的是，即使這份合同是在2023 年簽署的，我們也看到了積極的趨勢繼續並在某些情況下擴大我們平台的使用，因此我們現在預計從2024 年開始的三年平均每年L&S 收入將達到3.7 億美元，比我們先前預測的公司總收入3.6 億美元每年增加1,000 萬美元，我們預期指導固定貨幣收入成長範圍為負 1.5% 至正 1.5%。

Revenue growth in constant currency equates to revenue growth of negative 1% to 2% as reported.

以固定匯率計算的營收成長相當於報告中收入負成長 1% 至 2%。

This revenue guidance also assumes approximately 375 million of license and support revenue and growth in our SLMS solutions of 1.5% to 5.0% in constant currency 2024.

該收入指引也假設 2024 年授權和支援收入約為 3.75 億，且我們的 SLMS 解決方案的成長以固定匯率計算為 1.5% 至 5.0%。

Non-gaap operating profit margin is expected to be 5.5% to 7.5%.

非 GAAP 營業利潤率預計為 5.5% 至 7.5%。

The midpoint is slightly below our 2023 margin due to lower L&S gross profit due to renewal timing, partially offset by improvement we expect in our XLS solutions, we expect to expand our gross margin by 150 to 200 basis points in 2024, delivering on our 2024 guidance will position us for accelerating profitability and free cash flow in 2025, which is when we also expect to see a larger impact from SG&A cost savings and additional margin expansion from continuing delivery actions we are taking to improve our gross margins.

由於更新時間導致L&S 毛利較低，中點略低於我們2023 年的利潤率，部分被我們預期XLS 解決方案的改進所抵消，我們預計2024 年毛利率將擴大150 至200 個基點，實現2024年的目標指引將使我們能夠在2025 年加快獲利能力和自由現金流，屆時我們也預計SG&A 成本節省以及我們為提高毛利率而採取的持續交付行動帶來的額外利潤擴張將產生更大的影響。

Looking at the first quarter, specifically, SLMS revenue is expected to be approximately 385 million to 390 million, which translate to low single digits growth.

具體來看第一季度，SLMS 營收預計約為 3.85 億至 3.9 億美元，這意味著較低的個位數成長。

You know, renewal timing, we expect L&S revenue of approximately 70 to $75 million compared to $137 million in the prior year period.

您知道，就續約時間而言，我們預計 L&S 收入約為 7,000 至 7,500 萬美元，而上一年期間為 1.37 億美元。

The first quarter is expected to be our lowest alliance revenue quarter of the year, and we expect 45% of L&S revenue in the first half of the year with the remaining 55% in the second half.

預計第一季將是我們今年聯盟收入最低的季度，我們預計 L&S 收入的 45% 將出現在上半年，其餘 55% 將出現在下半年。

Given the cadence of Allyes renewal timing, this translates to our expectation for our first quarter total company revenue decline of approximately 10%.

考慮到好耶續約時間的節奏，這意味著我們預計第一季公司總收入將下降約 10%。

We also expect our first quarter non-GAAP operating margin in the low single digits.

我們也預期第一季的非公認會計原則營業利潤率將維持在較低的個位數。

I am pleased with the performance we have delivered this year and excited for what's to come in 2024 as we progress further towards achieving our operational and financial goals.

我對我們今年的業績感到滿意，並對 2024 年我們在實現營運和財務目標方面取得的進一步進展感到興奮。

I will now turn it back to Peter.

現在我將把它轉回給彼得。

So thank you very much.

非常感謝。

And with that, we'll turn the call over to questions.

至此，我們將把電話轉入提問環節。

(Operator Instructions) Rod Bourgeois, DeepDive Equity Research.

（操作員指示）Rod Bourgeois，DeepDive 股票研究。

Okay, great.

好的，太好了。

Thank you.

謝謝。

So first, I wanted to ask about the bookings and pipeline activity, and it's a two-part question.

首先，我想詢問有關預訂和管道活動的情況，這是一個由兩部分組成的問題。

So your quarter to quarter and year to year bookings surges were Tom, very strikingly strong there and it also enabled some backlog expansion.

因此，湯姆，您的季度和年度預訂量激增，非常強勁，這也導致了一些積壓的擴大。

So my first question on that is how did you pull that off and essentially in your turnaround progress with the main effort that's enabled that level of bookings activity?

因此，我的第一個問題是，您是如何實現這一目標的，並且本質上是在實現這一水平的預訂活動的主要努力中實現扭虧為盈的？

And then I'll ask a follow-up on that as well.

然後我也會問後續狀況。

All right.

好的。

So that thanks for the question.

謝謝你的提問。

I'll take the first part of that and then let Mike take the second part of you know, we have consistently said it's a bit there is lumpiness, particularly in our renewal time.

我會講第一部分，然後讓麥克講第二部分，你知道，我們一直說這有點不穩定，特別是在我們的續約時間裡。

And so what we had in the fourth quarter was simply a very strong quarter of renewals and also a strong quarter of what we consider new business, which is new logos, expansion and new scope of existing clients.

因此，我們在第四季度所擁有的只是一個非常強勁的續訂季度，也是我們認為新業務的強勁季度，即新徽標、現有客戶的擴展和新範圍。

As I said in my discussion earlier, much of our success in 2023 was really a very, very strong new business our year, and we have indications of a much stronger new logo year in 24.

正如我在之前的討論中所說，我們在 2023 年取得的成功很大程度上是因為我們這一年的新業務非常非常強勁，而且我們有跡象表明 24 年新標誌的表現會更加強勁。

So I would say, you know, we are pleased with the fourth quarter performance.

所以我想說，我們對第四季的表現感到滿意。

It is it is lumpy, but that's kind of the way our businesses.

它是凹凸不平的，但這就是我們的業務方式。

And so but the most important element I would say to answer your question is really the growth and the pipeline quality for ex L&S.

因此，我想說回答你的問題的最重要因素實際上是前 L&S 的成長和管道品質。

So if we if we take L&S out and say, no, that's going to go up and that's going to go down we had strength in L&S in 2023.

因此，如果我們將 L&S 剔除並說，不，該數字將會上升，並且將會下降，那麼我們在 2023 年的 L&S 方面擁有實力。

We increased our guidance for L&S in 2020 for all that is good.

我們在 2020 年增加了對 L&S 的指導，這一切都是好的。

And obviously, that's very important for us for cash flow and profit as well.

顯然，這對我們的現金流和利潤也非常重要。

But long term, you know that strength of XLNS. and increasing the profitability, increasing the revenue, increasing the quality of pipeline that will give us more.

但從長遠來看，您知道 XLNS 的優勢。提高獲利能力、增加收入、提高管道質量，這將為我們帶來更多。

We hope that will give us more breathing room going forward.

我們希望這能給我們更多的喘息空間。

Mike, any thoughts on that?

麥克，對此有什麼想法嗎？

Yes.

是的。

Maybe Rod, thanks for the question.

也許是羅德，謝謝你的提問。

Yes, look, Peter, I think you covered a good chunk of it.

是的，彼得，你看，我想你已經涵蓋了其中的大部分內容。

But I would say that is the byproduct of a lot of the hard work that we've been doing all year.

但我想說，這是我們一整年所做的大量艱苦工作的副產品。

You know, the macros have been a little tough and folks have been a little delayed in signing and some of those renewals came in the fourth quarter for EXL in that business.

你知道，宏指令有點困難，人們在簽署方面也有一些延遲，其中一些續約是在第四季為 EXL 進行的。

I think the things that I would call out that I would want you to take away is not only where they signing, but they ultimately signed at higher value.

我認為我希望你拿走的東西不僅是他們簽約的地方，而且是他們最終以更高的價值簽約。

So our pricing power was really strong in regards to the offerings that we brought forth, there was new scope associated with those.

因此，就我們提供的產品而言，我們的定價能力非常強大，並且存在與這些產品相關的新範圍。

Some of the expansion in consumption of those accounts were strong as well.

這些帳戶的部分消費擴張也很強勁。

So not only did we do 96% I'm saying for the year and had a very strong fourth quarter.

因此，我們不僅完成了今年的 96%，而且第四季的表現也非常強勁。

We saw cross-selling, we saw expansion.

我們看到了交叉銷售，我們看到了擴張。

We saw pricing power contained embedded in that so we ended up increasing revenue and increasing margin on those renewals, which, as you know, makes a stronger backlog and booking board the subsequent year or 24 as well.

我們看到了其中包含的定價權，因此我們最終增加了收入並增加了這些續訂的利潤，正如你所知，這也使得接下來的一年或 24 年的積壓和預訂板更加強勁。

So we're really pleased with the execution.

所以我們對執行非常滿意。

We're pleased with the ability for us to kind of differentiate in the market and see the acceptance of our next-gen solution by that existing base so the byproduct of a lot of hard work, I think.

我們很高興能夠在市場中脫穎而出，並看到現有基礎對我們的下一代解決方案的接受，我認為這是大量艱苦工作的副產品。

Okay, great.

好的，太好了。

And then the follow-up on that is when you have that level of bookings, it detracts some from the pipeline, at least in the near term from your commentary, it sounded like the pipeline with new logos is still strong even after the Q4 bookings on.

然後，後續行動是，當您擁有這種水平的預訂時，它會分散一些管道的注意力，至少在短期內從您的評論來看，聽起來即使在第四季度的預訂之後，帶有新徽標的管道仍然很強大。

And so I guess what I want to ask here is in your pipeline with existing clients.

所以我想我想問的是你們現有客戶的管道。

Do you expect that pipeline to re-expand in upcoming months?

您預計該管道會在未來幾個月內重新擴大嗎？

In other words, it seems like you should be heading into a period of pipeline replenishment, and I'm looking for any outlook on that front.

換句話說，似乎你應該進入一個管道補充期，我正在尋找這方面的前景。

But yes, the European fine, I'll I'll take that one and then flip it back to you or Dave, if you want to add some additional commentary.

但是，是的，歐洲很好，如果您想添加一些額外的評論，我會將其轉回給您或戴夫。

So with Rod, I guess the short answer is we're happy to with the base of our prospecting portion of the pipeline you're exactly right.

因此，對於羅德，我想簡短的回答是，我們很高興對管道勘探部分的基礎感到滿意，您是完全正確的。

Even though we increased our backlog year on year sign, that level of renewals and new business certainly depletes that pipeline.

儘管我們的積壓量逐年增加，但續訂和新業務的水平肯定會耗盡管道。

But we've got a great line of sight into the prospecting aspect of that.

但我們對勘探方面有很好的了解。

And we have a new logo, strong pipeline.

我們有一個新的標誌，強大的管道。

We talked about some of the increase there as well.

我們也討論了那裡的一些成長。

So both a new logo and expansion and we fully expect the same, it kind of levels of increases in the existing base for the things that are up for renewal in the current year as well.

因此，無論是新的標誌還是擴展，我們都完全期待同樣的情況，它是在現有基礎上增加今年更新的內容的水平。

So again, I think pretty consistent to your question, pretty consistent with the our prospects for growth in 2014.

再說一次，我認為與你的問題非常一致，與我們 2014 年的成長前景非常一致。

Yes, you're right.

你是對的。

I don't have anything to add.

我沒有什麼要補充的。

Yes, Deb and I will yield to Mike on that.

是的，黛布和我會在這一點上讓步於麥克。

I guess the only thing I would add is when we do talk about pipeline, Rod know the fact that we have 18% new business growth in the pipeline.

我想我唯一要補充的是，當我們談論管道時，羅德知道我們有 18% 的新業務成長正在管道中。

And you're right, a lot of that is new logo.

你是對的，其中很多都是新標誌。

I do expect the the new scope and to increase over time.

我確實希望新的範圍會隨著時間的推移而增加。

There's a little bit of reloading of that but I'm really happy with where the pipeline is from a quality standpoint as well.

雖然有一些重新加載，但從品質的角度來看，我對管道的位置也非常滿意。

So when we look at where we are in the kind of staging, we think that we're significantly better off than we were last year at this point, if I can slip one more in, I've got to ask the L and S average revenue outlook.

所以當我們看看我們在舞台上的位置時，我們認為我們現在比去年要好得多，如果我可以再插一個，我必須問 L 和 S平均收入前景。

You've upped that on that, that's really important.

你已經提高了這一點，這非常重要。

Can you just talk about what's enabling that?

您能談談是什麼促成了這一點嗎？

We might have seen some of the early signs of that brewing last year, but the but it's nice to see it coming through in your actual outlook now.

去年我們可能已經看到了這種醞釀的一些早期跡象，但很高興看到它現在在您的實際前景中實現。

So can you talk about the enabler of the L&S revenue outlook uptick?

那麼您能談談 L&S 收入前景上升的推動因素嗎？

Yes, I could ever have to take that.

是的，我可能不得不接受這個。

Ironically, our FX.

諷刺的是，我們的外匯。

Yes, I was going to start and then let you follow up on that.

是的，我本來打算開始，然後讓你跟進。

The The when we look at what happened in 2023, there were a couple of things that happened in the L&S.

當我們回顧 2023 年發生的事情時，L&S 中發生了幾件事。

We had a better L&S year in 2023 than we thought we would have.

2023 年，我們的 L&S 表現比我們想像的要好。

Now.

現在。

Part of that was due to a contract that we thought would be a one-year renewal and it turned out to be a five year renewal.

部分原因是我們以為續約一年的合同，結果卻續約了五年。

So that was the clients doing on ours.

這就是客戶對我們所做的事情。

We were happy to make that five year renewals that about one year.

我們很高興將五年續約時間縮短為一年。

But beyond that, you saw increases in revenue on LNS., as you know, kind of in several of our relationships due really to consumption patterns.

但除此之外，您還看到 LNS 上的收入有所增加。正如您所知，這在我們的一些關係中確實是由於消費模式而增加的。

And so this was this was kind of an example of what we've been talking about, Roger, right?

這就是我們一直在談論的一個例子，羅傑，對嗎？

And we were able to see that in actuality in 2023 that the interesting thing about 2024, if one would assume was because we had a five year renewal instead of a one year renewal in 2023, that our L&S revenue would take a hit in 2024 for that.

事實上，我們在 2023 年看到，關於 2024 年的有趣的事情是，如果我們假設是因為我們在 2023 年續訂了五年而不是一年，那麼我們的 L&S 收入將在 2024 年受到打擊那。

The reality is we are increasing our L&S expectations for 2024 and increasing the three-year average for 24, 25 and 26.

現實情況是，我們正在提高 2024 年的 L&S 預期，並提高 24、25 和 26 的三年平均值。

And so that overcomes, first of all, the renewable value we've got to fill that and that that gap, if you will, and it goes beyond that.

因此，這首先克服了我們必須填補的可再生價值，以及這個差距，如果你願意的話，而且它超出了這個範圍。

And that is really largely because of those consumption patterns.

這很大程度是因為這些消費模式。

So we're pleasantly looking at the numbers for annual L&S.

因此，我們正在愉快地查看年度 L&S 的數據。

It still will be lumpy from year to year, but we do believe that that's a nice sign to see.

年復一年，它仍然會變得崎嶇不平，但我們確實相信這是一個很好的跡象。

Dave, over to you.

戴夫，交給你了。

Right.

正確的。

And I think, Peter, you covered it.

我想，彼得，你已經涵蓋了。

I think where in the past often it would be L&M performed better, but it impacted the and the next years.

我認為在過去，L&M 的表現通常會更好，但它影響了過去幾年和接下來的幾年。

And so we're happy to see that even though the events that happened in 23, that that had elements overachieving it down isn't having an impact on future years.

因此，我們很高興地看到，儘管 23 年發生的事件，導致超額完成的因素並未對未來幾年產生影響。

So I think Peter said, it'll grow.

所以我認為彼得說，它會成長。

Thank you.

謝謝。

Welcome.

歡迎。

Anja Soderstrom, Sidoti.

安雅·索德斯特羅姆，西多蒂。

Please go ahead and thank you for taking my questions and I have some follow-ups on the commentaries.

請繼續，感謝您提出我的問題，我對評論有一些後續行動。

So I am missing and the new logo has been strong and and what is what has been driving the new logo and where they're coming from?

所以我想念，新標誌很強大，是什麼推動了新標誌，它們來自哪裡？

Are they replace?

他們取代了嗎？

Are you putting someone else or?

你是放別人還是？

Yes, so thanks and a very, very good question.

是的，謝謝，這是一個非常非常好的問題。

As I said in my remarks, the majority of our new business revenue in the year, which is both new logo, new scope and expansion came from existing clients, which happens every year, frankly on, but also the same this year.

正如我在演講中所說，我們今年的大部分新業務收入，無論是新標誌、新範圍還是擴張都來自現有客戶，坦白說，這種情況每年都會發生，今年也是如此。

We do expect new logo revenue to increase in 2024.

我們預計 2024 年新商標收入將會增加。

Now to your question about where new logo revenue comes from, it really can only come from a couple of sources.

現在，關於新徽標收入從何而來的問題，它實際上只能來自幾個來源。

So one source is it just brand new work.

所以來源之一是它只是全新的作品。

So think of generative AI. consulting work or those similar projects they might not have existed before.

所以想想生成式人工智慧。諮詢工作或以前可能不存在的類似項目。

So everyone in our business is kind of scrambling for that.

因此，我們行業中的每個人都在為此爭先恐後。

And the second source is from clients that had work that was internal to their operations and they've decided to give it to an external provider like U.S. The third element is where we are competing for existing work.

第二個來源來自於其營運內部有工作的客戶，他們決定將其交給像美國這樣的外部提供者。第三個要素是我們正在競爭現有工作。

That is with an external provider and we kind of take that work away through the competition process.

那是與外部供應商合作，我們透過競爭過程取消了這項工作。

So those are kind of the three elements.

這就是三個要素。

Mike, any thoughts on that?

麥克，對此有什麼想法嗎？

Yes.

是的。

I think the two that Peter mentioned are certainly the most prevalent there is the first time, I'll say outsource managed service component.

我認為彼得提到的兩個肯定是第一次最受歡迎的，我會說外包託管服務組件。

And then there is obviously the market share component of that.

然後顯然還有市場佔有率的組成部分。

And we have been aggressively active in all markets.

我們在所有市場都積極活躍。

We've seen a pretty nice uptick in Amea as it pertains to new logos.

我們看到 Amea 的成長相當不錯，因為它與新徽標有關。

The other piece I would add to that is also the cross-sell in our existing base, right?

我要添加的另一部分也是我們現有基地的交叉銷售，對嗎？

When we talk about new business, we are about 39 ish percent cross-sold.

當我們談論新業務時，我們大約有 39% 左右是交叉銷售。

So we do have opportunity to grow the business in the existing base through cross-selling.

因此，我們確實有機會透過交叉銷售在現有基地發展業務。

But I would say the heavier two components are going after additional market share and first time outsourced or managed service contracts, as Peter alluded to.

但我想說，正如彼得所提到的那樣，較重的兩個組成部分正在追求額外的市場份額和首次外包或託管服務合約。

Okay.

好的。

I think in terms of consumption patterns, what has been the biggest surprise to you.

我認為就消費模式而言，給您最大的驚喜是什麼？

Yes.

是的。

So I assume you're talking about consumption pattern in LLS with that question.

所以我假設您正在談論 LLS 中的消費模式和這個問題。

But I think when we when you look at what's going on in the market, right, now and obviously, all of the efforts around A&I and building our models and need more compute and need more power.

但我認為，當你看看市場上正在發生的事情時，現在很明顯，圍繞著人工智慧和人工智慧以及建立我們的模型所做的所有努力都需要更多的計算和更多的能力。

We've been seeing probably over the course of the last 18 to 24 months, continued increases in consumption.

我們可能在過去 18 至 24 個月中看到消費持續成長。

And that's why the reasons why we ultimately out are our future three year average by 10 million because it is a byproduct of what we've been seeing over the course of the last 18 to 24 months.

這就是為什麼我們最終將未來三年平均人數減少 1000 萬的原因，因為這是我們在過去 18 到 24 個月中所看到的情況的副產品。

And I think, frankly, just the natural spin off of the build-out of LL. and other more complex models and storage needs, things along that line from a compute power perspective.

坦白說，我認為這只是 LL 建構的自然副產品。以及其他更複雜的模型和儲存需求，從運算能力的角度來看，都是這樣的。

So really, pretty consistent.

所以真的非常一致。

And so what we're seeing in the market overall.

所以我們在整個市場上看到了什麼。

Okay.

好的。

And your history of it.

還有你的歷史。

Okay.

好的。

I will not go ahead in terms in terms of the banking and financial services has been a bit challenged.

我不會繼續在銀行和金融服務方面受到一些挑戰。

You said during the past year, what are you seeing there now?

你說過去一年，現在看到了什麼？

Is that easing up or?

是緩和了還是？

Yes.

是的。

So Dave, do you want to comment on that from a numbers standpoint and then Mike can provide some color in terms of market?

戴夫，你想從數字的角度對此發表評論嗎？然後麥克可以提供一些市場方面的資訊嗎？

Yes.

是的。

So we discussed that in our CNI section.

所以我們在 CNI 部分討論了這個問題。

I'm just saying that there is a little softness there where budgets have been a little challenged.

我只是說，預算受到了一些挑戰，因此存在一些疲軟。

And so a lot of our growth.

我們的成長也是如此。

And this year, we're drilling more commercial and public sector.

今年，我們將鑽探更多商業和公共部門。

So and I don't have the specific numbers in front of me, but that's that's the color around some of that CNI revenue?

所以我面前沒有具體的數字，但這就是 CNI 部分收入的顏色？

I think as far as on the softness, I'm not sure, Mike, if you want to comment on any trends you've seen as different than that.

我認為，就柔軟性而言，我不確定邁克，您是否想對您所看到的與此不同的任何趨勢發表評論。

Yes.

是的。

Look, I think it's a little more just hesitancy in the macro.

聽著，我認為這只是宏觀的猶豫。

I don't view it as being something that is in perpetuity where they're just not spending.

我不認為這是一種永久的東西，他們只是不花錢。

I think there we're just seeing more freestanding in commercial and public sectors.

我認為我們在商業和公共部門看到了更多的獨立機構。

And I would say a little bit as the hesitancy in banking and financial services.

我想說的是銀行和金融服務的猶豫。

But I would echo or at least a comment that when we look at the new logo pipeline in 24, there are plenty of folks are, you know, sector embedded in that new logo pipeline.

但我會回應或至少評論說，當我們查看 24 世紀的新徽標管道時，有很多人，你知道，部門嵌入到新徽標管道中。

So again, I think it's probably just an output of of macroeconomics that we're starting to see loosen a little bit.

再說一遍，我認為這可能只是宏觀經濟的結果，我們開始看到經濟放鬆。

Okay, thank you.

好的謝謝。

(Operator Instructions) Arun Seshadri, BNP Paribas.

（操作員指示）Arun Seshadri，法國巴黎銀行。

Hi, everybody.

大家好。

Thanks for taking my questions and appreciate all the details and the outlook today.

感謝您提出我的問題，並感謝今天的所有細節和展望。

Just wanted to understand, if you look overall at XL. and S. of revenue growth guide, given your signings, it seems like you're being somewhat conservative for 2023.

只是想了解一下 XL 的整體情況。收入成長指南的 S.，考慮到您的簽約，您似乎對 2023 年有些保守。

I think you've guided for a pretty wide range of outcomes on top line and XLNS. and and then came in near the high end of taking a similar conservative approach.

我認為您已經在頂線和 XLNS 方面指導了相當廣泛的結果。然後採取類似的保守方法接近高端。

Is that a result of, I guess, hesitancy in the macro on the broader enterprise side?

我想，這是由於更廣泛的企業方面對宏觀經濟猶豫不決的結果嗎？

Do you still expect to see more?

您還期待看到更多嗎？

I guess spending from the commercial and public sectors?

我猜是商業和公共部門的支出？

Just some color would be helpful.

只需一些顏色就會有所幫助。

Yes, I want to thank you very much for that.

是的，我對此非常感謝。

But I guess let me start and then turn it over to Dan.

但我想讓我開始然後把它交給丹。

So the first thing I would say is we really do not ever tried to give a conservative approach to our numbers.

因此，我要說的第一件事是，我們確實從未嘗試對我們的數字採取保守的方法。

So our numbers are our expectations in 2023.

所以我們的數字是我們對 2023 年的預期。

We know we saw that were exceeding those expectations.

我們知道我們看到的結果超出了預期。

And so we raised guidance during the year.

因此，我們在這一年中提出了指導意見。

And then, of course, the ultimate numbers came out even better than the raised guidance.

當然，最終的數字甚至比提出的指導值還要好。

But I think that is just more a function of the uncertainty in the market.

但我認為這比較是市場不確定性的結果。

A room.

一個房間。

There was a lot going on in 2023 and you know, frankly, we are very pleased with the fact that we performed.

2023 年發生了很多事情，坦白說，我們對我們的表現感到非常滿意。

You know, LNS was better than expected by XL. and S. was better than expected.

要知道，LNS比XL預想的還要好。 S. 比預期好。

We kind of outperformed our guidance across the board in 2024.

2024 年，我們的表現全面超越了我們的指引。

We are expecting healthy growth in ex L&S and healthy growth in the profitability of Exxon and us.

我們預計 Exxon 和我們的獲利能力將健康成長。

And that's part of really kind of what we hope to be a multiyear expansion.

這確實是我們希望多年擴張的一部分。

So turning it over to Deb, but I think we've built in for us some pretty good numbers in XL. and S. for 24.

所以把它交給 Deb，但我認為我們已經在 XL 中內建了一些非常好的數字。和 S. 為 24。

And I will go through those in detail, but I certainly hope that we ex We excel at over those, but we're starting from pretty good numbers step?

我將詳細介紹這些內容，但我當然希望我們在這些方面表現出色，但我們是從相當好的數位步驟開始的嗎？

Thanks, Peter.

謝謝，彼得。

Yes.

是的。

So for 2023, like Peter said, we saw ourselves outperforming.

因此，正如彼得所說，2023 年我們看到了自己的表現。

We raised guidance even between two three and the end of the year was very specific items were a few smaller deals came in L&S that we didn't anticipate.

我們甚至在兩三點之間提高了指導，年底是非常具體的項目，L&S 出現了一些我們沒有預料到的較小交易。

And then there were some uncertainties in our XL and that's revenue that we were working through.

然後我們的 XL 存在一些不確定性，這就是我們正在解決的收入。

And were able to to get all of that worked through.

並且能夠完成所有這些工作。

And so that was it that enabled enabled us to come in over our guidance.

這就是我們能夠接受指導的原因。

So I think Peter said it well, and I think we're very comfortable kind of where we're saying for 2024 with XL and ES growth continued growth more than 150 to 200 basis points of XL and US gross margin expansion as we really look to the mix change, the mix shift towards more of a higher margin solutions as we continue delivery improvements, automation a lot of the work we're doing around SG&A to get that more normalized with our peers.

因此，我認為彼得說得很好，而且我認為我們對 2024 年 XL 和 ES 增長持續增長超過 XL 和美國毛利率擴張 150 至 200 個基點感到非常滿意，正如我們真正看到的那樣隨著我們繼續改進交付，自動化我們圍繞SG&A 所做的大量工作，使我們的同行更加規範化，我們的組合將轉向更高利潤的解決方案。

So a lot of the work we're doing is really on we feel it makes us comfortable with our Q2 2024 guidance.

因此，我們正在做的許多工作確實讓我們對 2024 年第二季的指導感到滿意。

Thank you.

謝謝。

Just a follow up from me on from a cost saving standpoint.

只是我從節省成本的角度進行的跟進。

It sounds like you still expect a fairly significant margin uptick in 2025 versus 24.

聽起來您仍然預計 2025 年的利潤率將比 24 年大幅上升。

I just wanted to see if you could provide any context in terms of I guess, I guess numerically, obviously too early to call, but just from a from a SG&A percent of revenue and from a from a gross margin perspective, how much additional upside do you think there is in 25 versus 24, obviously, as the as the the pension contribution and ramps in 25 and that's sort of the baseline for the question.

我只是想看看你是否可以提供任何背景信息，我想，我想從數字上看，顯然現在下結論還為時過早，但僅從銷售費用、行政管理費用佔收入的百分比以及從毛利率的角度來看，有多少額外的上升空間顯然，你認為 25 歲與 24 歲之間有什麼區別嗎？退休金繳款和 25 歲的增加是這個問題的基線。

Yes.

是的。

I mean, that's a really good question.

我的意思是，這是一個非常好的問題。

So yes, Jeff, I think I'm going to get into just second, and that is so we have put them in charge of kind of a multiyear SG&A effort that effort started in earnest last year, relatively early last year and will extend through this year and 25 and 26.

所以，是的，傑夫，我想我將進入第二位，也就是說，我們讓他們負責一項多年的銷售、管理及行政費用工作，這項工作是在去年相對較早的時候認真開始的，並將持續到今年還有25和26。

So Deb has put together a plan working with the rest of our team and that we expect will lower SG&A as a percentage of revenue over that timeframe and continue to lower it over that timeframe.

因此，Deb 與我們團隊的其他成員一起制定了一項計劃，我們預計將在該時間範圍內降低 SG&A 在收入中的百分比，並在該時間範圍內繼續降低。

So it's not a one-time thing for us or room is very well timed.

所以這對我們來說不是一次性的事情，或是房間的時機非常好。

It has its own project leader and we are performing according to plan.

它有自己的專案負責人，我們正在按計劃進行。

We lowered and what we thought would be SG&A spend.

我們降低了我們認為的 SG&A 支出。

We will lower it again in 24 and expect to continue lower in 20 higher than 26.

我們將在 24 日再次下調，預計 20 日將繼續下調，高於 26 日。

That is, at the same time, making more investments that our SG&A investments in things like artificial intelligence South, where we think under David's leadership, we've got a solid approach to this, and certainly we'll let Deb outline how that approach works over time.

也就是說，同時，我們在人工智慧南方等方面的投資比我們的SG&A 投資還要多，我們認為在David 的領導下，我們已經有了一個可靠的方法來解決這個問題，當然我們會讓Deb 概述該方法是如何實現的隨著時間的推移而起作用。

Right?

正確的？

Yes.

是的。

Over.

超過。

And I would say the gross margin expansion is a little more of a slow and steady.

我想說的是，毛利率的擴張更加緩慢且穩定。

And so we have plant that plant in XL and asked to do 150 to 200 million.

所以我們在 XL 設有工廠，並要求生產 1.5 億至 2 億。

And that's what we had laid out kind of slow and steady margin improvement that along with our L&S revenue, $370 million average a year, and that should add about 65% gross margin.

這就是我們所計劃的緩慢而穩定的利潤率改善，加上我們的 L&S 收入，平均每年 3.7 億美元，這應該會增加約 65% 的毛利率。

And then as well as the SG&A efforts, Peter talked about, I think you're right, that is a little more.

然後，除了 SG&A 工作外，Peter 還談到，我認為你是對的，還有一點。

We expect to achieve on an annualized basis, about 70% of that by the end of this year.

我們預計今年底將實現年化率的70%左右。

And so that does take because we have to do some investments in order to save.

這確實需要，因為我們必須進行一些投資才能儲蓄。

So that will as opposed to the gross margin is more slow and steady.

因此，與毛利率相比，這將更加緩慢和穩定。

Sg&a will kind of be more of a you'll see that more in 2025.

到 2025 年，您會看到更多 Sg&a。

So and then in addition to that, you get to the free cash flow that we laid out.

除此之外，您還可以獲得我們列出的自由現金流。

There's other some other things on the free cash flow side that we're working, such as improving our working capital dynamics.

我們也在自由現金流方面進行其他一些工作，例如改善我們的營運資本動態。

Some of the more one-time cash flow items will start to and go down over the next few years.

一些一次性現金流項目將在未來幾年開始下降。

And so that's another important part of the formula to get us to those free cash flow numbers that we've laid out as part of our long-term targets.

因此，這是公式的另一個重要部分，可以幫助我們得出我們作為長期目標一部分制定的自由現金流數字。

Thank you so much.

太感謝了。

I could jump in as well.

我也可以跳進去。

Just just one quick comment.

只是一個簡短的評論。

You had mentioned 150 million, it was 150 to 200 basis points of improvement in gross margin Yes.

你提到1.5億，就是毛利率提高150到200個基點，是的。

And if you look at the Investor Day materials that we put out, you would see in there that it infers additional improvement in basis points and 25 and 26 kind of consistent in that manner.

如果您查看我們發布的投資者日資料，您會發現其中暗示著基點的進一步改善，並且 25 和 26 基點以這種方式保持一致。

And now we're not saying that is kind of a linear path and it's going to be the same amount every year.

現在我們並不是說這是一種線性路徑，而且每年的數量都是相同的。

So we will ebb and flow a bit.

所以我們會有點潮起潮落。

But you know, as Peter mentioned in his opening remarks, we're doing quite a bit in regards to the associate base, right, scaling, right, shoring AI automation speeding up sourcing, all kinds of elements embedded in kind of managing that resource delivery.

但你知道，正如彼得在開場白中提到的那樣，我們在合作基礎、擴展、支持人工智慧自動化、加速採購、嵌入管理資源的各種元素方面做了很多工作送貨。

So we think that's going to yield additional benefits in years to get it aligned with the projections that we put out at Investor Day.

因此，我們認為這將在幾年內產生額外的好處，使其與我們在投資者日發布的預測保持一致。

Got it.

知道了。

Thank you, everyone.

謝謝大家。

I'm going to ask one last thing on the pension cliff.

我要問關於退休金懸崖的最後一件事。

It sounds like you've made a good amount of progress reducing that flip to 2026 to 29 cliff by buying some 10 to 20 million a year.

聽起來你已經取得了很大的進展，透過每年購買大約 1000 到 2000 萬個，將 2026 年的翻轉減少到 29 個懸崖。

Any sort of high-level thoughts on sort of your plans for 2024 in terms of further progress there?

對於 2024 年的進一步進展，您有什麼高層想法嗎？

Yes.

是的。

Jeff, do you want to a lot of share?

傑夫，你想分享很多嗎？

Yes.

是的。

So where the contribution came down, and that's primarily driven by asset returns.

那麼貢獻就下降的地方，主要是由資產報酬率驅動的。

And so, you know, there's we tried to manage that and we don't have full control over asset returns.

所以，你知道，我們試圖管理這個問題，但我們無法完全控制資產回報。

And so we put in the slide deck and a sensitivity so you can understand that.

因此，我們添加了幻燈片和靈敏度，以便您能夠理解。

But as we've spoken about and continue our plan to really look at continuing to de-risk the plan we took out, we had two annuity purchases in 2023.

但正如我們已經討論並繼續我們的計劃，真正考慮繼續降低我們所製定的計劃的風險，我們在 2023 年購買了兩次年金。

We'll continue to look at that given market and market conditions if another one makes sense.

如果另一個方案有意義，我們將繼續專注於給定的市場和市場條件。

And so the goal there is just to lower the amount of liabilities using plan assets, not corporate cash to just overall lower the risk there and then the volatility of the overall pension plan.

因此，目標只是使用計畫資產來降低負債金額，而不是企業現金，以整體降低風險，進而降低整體退休金計畫的波動性。

So that's our one of our strategies, a key strategy for now.

這是我們的策略之一，也是目前的關鍵策略。

But we're always looking at all of our options as it relates to the pension pending market conditions and what makes sense at the time.

但我們一直在考慮所有的選擇，因為它與退休金懸而未決的市場狀況以及當時有意義的選擇有關。

Thanks very much.

非常感謝。

You're welcome.

不客氣。

This concludes our question and answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to Peter Altabef for any closing remarks.

我想將會議轉回給彼得·阿爾塔貝夫（Peter Altabef）發表閉幕詞。

Thanks, Betsy, very much.

非常感謝，貝特西。

I'd like to thank everybody for joining the call.

我要感謝大家加入這通通話。

I know we went a little over today, but on the questions were really good.

我知道我們今天有點過頭了，但問題真的很好。

And so we wanted to give everybody an opportunity to ask them when you review our materials on the website, you'll see some modernization.

因此，我們想讓每個人都有機會詢問他們，當您在網站上查看我們的資料時，您會看到一些現代化的內容。

So kind of our one-pager has been updated.

我們的單一尋呼機已經更新了。

It's got a different format.

它有不同的格式。

And even the slides that we have shown over the course of this call have some different formatting and we have even more information in the appendix to the slides.

甚至我們在本次通話過程中展示的幻燈片也有一些不同的格式，並且我們在投影片的附錄中提供了更多資訊。

So I do hope that you take some time and look at the materials.

所以我確實希望你花一些時間看看這些材料。

And of course, our Investor Relations team is always available for any follow-on questions, as is Mike and Ed and myself.

當然，我們的投資人關係團隊隨時可以解答任何後續問題，麥克、艾德和我自己也是如此。

With that, thank you very much and appreciate you joining the call.

在此，非常感謝您並感謝您加入此通話。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。