Q4 2023 AvePoint Inc Earnings Call
Okay.
Sure.
Yes.
Good afternoon.
And welcome to the off point, Inc, fourth quarter fiscal year, 2023 earnings call.
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Operator: Please note this event is being recorded. I would now like to turn the conference over to Jamie Arestia, Vice President, Investor Relations. Please go ahead.
I would now like to turn the conference over to Jamie or what Rusty Huh, Vice President Investor Relations. Please go ahead.
James Arestia: Thank you, operator. Good afternoon, and welcome to Avepoint's fourth quarter and full year 2023 earnings call. With me on the call this afternoon are Dr. TJ Jiang, Chief Executive Officer, and Jim Caci, Chief Financial Officer. After preliminary remarks, we will open the call for a question and answer session.
Thank you operator, good afternoon, and welcome to our fourth quarter and full year 2023 earnings call.
On the call. This afternoon is Dr. T J Jang Chief Executive Officer, and Jim Cowan, Chief Financial Officer know, what's going on here after preliminary or a P. J I'll open the call for a question and answer session.
James Arestia: Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in our press release for a more complete description. All material in the webcast is the sole property and copyright of Avepoint, with all rights reserved. Please note this presentation describes certain non-GAAP measures, including non-GAAP operating income and non-GAAP operating margin, which are not measures prepared in accordance with U.S. GAAP. The non-GAAP measures are presented in this presentation as we believe they provide investors with a means of understanding how management evaluates the company's operating performance. However, these non-GAAP measures should not be considered in isolation from, as a substitute for, or superior to, financial measures prepared in accordance with U.S. GAAP. Reconciliation of these measures to the most directly comparable gap financial measures is available in our fourth quarter and full year 2023 earnings press release, as well as our updated investor presentation and financial tables, all of which are available on our investor relations website. With that, I will turn the call over to Chi-Chi.
Please note that this call will include forward looking statements that involve risks and uncertainties that could cause actual results to <unk>.
Differ materially from management's current expectations.
We encourage you to review the Safe Harbor statements contained in our press release for a more complete description.
All material in the webcast sole property and copyright of <unk> point with all rights reserved.
Please note. This presentation describes certain non-GAAP measures, including non-GAAP operating income and non-GAAP operating margin, which are not measures prepared in accordance with U S. GAAP and non-GAAP measures are presented in this presentation as we believe they provide investors with the means of understanding how management evaluates the company's operating performance.
These non-GAAP measures should not be considered in isolation from as substitutes for or superior to financial measures prepared in accordance with U S. GAAP.
Reconciliation of these measures the most directly comparable GAAP financial measures is available in our fourth quarter and full year 2023 earnings press release as well as our updated investor presentation and financial tables, all of which are available on our Investor Relations website with that let me turn the call over to T. J.
Tianyi Jiang: Thank you, Jamie, and thank you to everyone joining us on the call today. Our fourth quarter was an outstanding close to our strongest year yet as a public company, as we meaningfully outperformed our guidance for all metrics. Total AR, Total Revenues, and Non-Gap Operating Markets. Once again, our results were driven by the strength of our platform offering and the customer demand to establish a solid data foundation, in turn, allowing our customers to manage and protect critical data, reduce costs, improve productivity, and make more informed business decisions. Jim will spend more time on our Q4 results and our initial expectations for 2024, but I would like to spend more time on three main topics today.
Thank you Jamie.
And thank you to everyone joining us on the call today.
Our fourth quarter was the outstanding close to our strongest year, yet as a public company.
We meaningfully outperformed our guidance for all metrics total way, our total revenues and non-GAAP operating margin. Once again, our results were driven by the strength of our platform offering and the customer demand to establish a solid data foundation in turn, allowing our customers to manage and protect critical data.
Reduce costs improve productivity and make more informed business decisions.
Jim will spend more time on our Q4 results and our initial expectations for 2024, but I would like to spend today on three main topics.
Tianyi Jiang: First, what we're seeing as the world moves from talking about AI to beginning to apply it at scale. Second, some key customer wins that demonstrate how we are enabling organizations to prepare for and fully harness AI to advance their digital work. And lastly, several steps we're taking at Avepoint to invest in future innovation. Let's start with AI. AI is not a fad.
First well, we're seeing as the world moves from talking about AI to beginning to apply it at scale.
Second some key customer wins that demonstrate how we are enabling organizations to prepare and fully harness AI to advance their digital workplace.
And lastly, several steps were taking at that point to invest in future innovation.
Let's start with AI.
It's not a fad it is powerful force that is transforming every industry and every aspect of our lives.
Tianyi Jiang: It is a powerful force that is transforming every industry and every aspect of our lives. Recent research finds that 80% of companies will incorporate generative AI into their businesses by 2026, and it has the potential to collectively add $4.4 trillion to the global economy.
Recent research found that 80% of companies will incorporate generative AI into their businesses by 2026 and it has the potential to collectively add $4 four trillion dollars to the global economy.
Tianyi Jiang: And by 2027, sales of generative AI software and services will climb 35% and 42%, respectively. Simply put, this is a tremendous market opportunity, and Avepoint will be a key player in driving generative AI adoption across a wide range of businesses in the years to come. There's a catch to all the excitement around AI. AI is only as good as the data that feeds it, and data is inherently messy, complex, and risky.
And by 2027 self of generative AI software and services will climb, 35% and 42% respectively.
Simply put this is a tremendous market opportunity and at that point will be a key player in driving generate AI adoption across a wide range of businesses in the years to come.
Will give us this confidence.
There's a catch to all the excitement around AI.
It's only as good as the data that feeds it and data is inherently messy complex and risky.
Tianyi Jiang: Data needs to be managed, governed, and secured. In short, data needs to be ready for AI. To build AI that truly understands your business, you need a data foundation that maps every piece of content, and user to the right business. The emerging AI solutions baked into tools organizations use to work every day, such as Copilot for Microsoft 365, are generating a lot of buzz based on how they can improve productivity. But what we're also hearing from our customers and channel partners is that, first and foremost, they must have the proper information management, data security, and optimized data governance functions necessary to take full advantage of any AI-driven solution. The Avepoint confidence platform does just that.
Data needs to be managed governed and secured these short data needs to be ready for AI.
To build AI that truly understand your business unions data foundation that maps every workspace piece of content and user to the right business context.
The emerging AI solutions baked into tools organization used to work every day such as co pilot for Microsoft 365 are generating a lot of buzz based on how they can improve productivity.
What we're also hearing from our customers and channel partners is that first and foremost they must have the proper information management data security and optimized data governance functions necessary to take full advantage of any AI driven solution.
The appling confidence platform does just that.
Tianyi Jiang: It transforms chaos into order and enriches your enterprise data with context around ownership, risk postures, and relevance. With this data foundation, our AI insights engine, which supports the entire confidence platform, comes alive. Learning your business, refining models tailored to you, and improving decision making for end users. In short, we can power new AI experiences for customers. An example of this in the market today are products like Avepoint Opus, Avepoint Empower, and Avepoint MyHub, which offer comprehensive information management to ensure compliance, optimize cloud storage, streamline data management processes, and improve employee experience, all of which are essential to the AI ambitions of our customers, partners, and prospects. For example, Avepoint Opus is available with an AI smart classification system to automatically classify and tag documents based on their content, metadata, and context, and apply the appropriate policies and actions to them.
It transforms chaos into order and enriches your enterprise data with context around ownership risk postures and relevance.
With this data foundation, our AI insights engine, which support the entire confidence platform comes alive.
Learning your businesses refining models tailored to you and improving decision making for end users in short we can power a new AI experiences for customers.
Example of this in market today, our products like ethylene opus, Apple empower and ethylene my hub, which offer comprehensive information management to ensure compliance optimized cloud storage streamlined data management processes and improve employee experience all of which are essential to the AI.
<unk> of our customers partners and prospects for.
For example, airplane Opus is available with the AI Smart classification system to automatically classify intact documents based on their content metadata and context now implies the appropriate policies and actions to them.
This reduces the manual effort and human error involved in data governance enables organizations to prevent data breaches reduce storage costs and enhanced data quality and usability.
Tianyi Jiang: This reduces the manual effort and human error involved in data governance, and enables organizations to prevent data breaches, reduce storage costs, and enhance data quality and usability, while the AI opportunity remains in the early stages. We're excited by what we're seeing, and we'd like to share a few customer wins in Q4 that demonstrate how we help organizations prepare their data foundation to harness the potential of AI in their operations. In Q4, we won the business of a large insurance group in France with over 30,000 employees, which is in the midst of moving to the cloud to modernize productivity and collaboration. With our secure cloud backup solution, the insurance group can safeguard its sensitive data across multiple environments, including Microsoft 365, Entra ID, Power Platform, Azure, and AWS virtual machines.
While the AI opportunity remains in early stages, we're excited by what we're seeing.
I'd like to share a few customer wins in Q4 that demonstrate how we help organizations prepare their data foundation to harness the potential of AI into their operations in.
In Q4, we won the business of a large insurance group in France with over 30000 employees, which is in the midst of moving to the cloud to modernize productivity and collaboration.
With our secure cloud backup solution the insurance group can safeguard their sensitive data across multiple environments, including Microsoft 55, intra E power platform Azure and AWS virtual machines.
Tianyi Jiang: The customer chose our solution over competitors because of our ability to support cyber resiliency for all these environments and our flexibility to support future additions such as Power BI and Salesforce. With Avepoint, this organization can now ensure the security and availability of their data and applications, while also complying with regulations and standards as they modernize their digital workforce. Once organizations establish a data resilience strategy, a natural next step is to implement data governance that secures their operations while not impeding collaboration.
The customer chose our solution over our competitors because our ability to support cyber resiliency for all of these environments and our flexibility to support future editions, such as power bi and Salesforce.
With that point. This organization can now ensure the security and availability of their data and applications. While also complying with regulations and standards as they modernize their digital workplace.
Once the organizations establish a data resilience strategy a natural next step is to implement a data governance framework that secures their operations, while not impeding collaboration in.
Tianyi Jiang: In Q4, we expanded our relationship with a global healthcare company with more than 100,000 users. Already a customer of our secure cloud backup solution, they purchased our policies product to implement more control and visibility over their fast growing cloud resources, permissions, and work. As the customer continues to modernize its productivity environment, they also purchased our solution for migrating legacy content from Box, Dropbox, self-hosted SharePoint, and other Microsoft 365 tenants so they can leverage our AI Insights Engine to improve their data quality as they consolidate their content into one centralized I discussed Avepoint Opus a moment ago, and we are pleased to see the initial appeal of this new product with both existing and new customers. One of our existing customers, a leading global automotive manufacturer with 80,000 users, wanted to implement a robust information management strategy to secure, govern, and manage their data across Microsoft 365.
In Q4, we expanded our relationship with a global health care company with more than 100000 users.
Already a customer of our secure cloud backup solution. They purchased our policies product to implement more control and visibility over their fast growing cloud resources permissions and workspaces.
As the customer continues to modernize as productivity environment. They also purchased our solution for migrating legacy content from box Dropbox self hosted Sharepoint and other Microsoft 365 tenants. So they can leverage our AI insights engine to improve their data quality as they consolidate their car.
<unk> into one centralized secure location.
I discussed.
A moment ago and we are pleased to see the initial traction from this new product with both existing and new customers.
One of our existing customers, a leading global automotive manufacturer with 80000 users wanted to implement a robust information management strategy to secure govern and manage their data across Microsoft 55.
Tianyi Jiang: They chose Avepoint Opus to apply consistent and automated information lifecycle policies to classify, retain, archive, and dispose of their data according to their business and compliance needs. They also leveraged the AI-powered analytics and insights provided by Avepoint Opus to better understand how data is being used by the organization and how to reduce data breaches. The other benefit of AI-ready information management strategy is managing the rising costs of data storage, which was the case with a global communications firm with 900 terabytes of data. Avepoint Opus rapidly identified crucial data sprawl and storage optimization challenges, discovering thousands of unowned and unused teams and workspaces, leading to high storage costs.
They choose absolutely opus to apply consistent and automated information lifecycle policies to classify retain archive and dispose of their data according to their business and compliance needs.
They also leveraged the AI powered analytics and insights provided by absolutely opus to better understand how data is being used by the organization and how to reduce data breach risk.
The other benefit of AI ready information management strategy is managing the rising cost of data storage, which was the case with a global communications firm with 900 terabytes of data.
Happily opus rapidly identified crucial data sprawl and storage optimization challenges discovering thousands of unknown and unused teams and workspaces, leading to high storage cost cuts.
Tianyi Jiang: The customer chose Avepoint Opus to quickly and intelligently archive 80% of its contents, which will save $2 million over the next three years. In addition to these savings, our platform will also enhance their data governance and compliance posture. As we meet this transformative moment in our industry, we're evolving our organizations and making strategic investments to drive faster innovation, so we can continue delivering on our promise to advance the digital workplace, capture growing markets, and prioritize profitability. First, within Avepoint, we see the need to create a program that will accelerate our AI consumption, introduce automation to enhance our business, and ensure we remain innovative and competitive. That's why in the fourth quarter, we launched Avepoint AI, our new program that is integrating AI across all aspects of our company, from our products and services for our customers to our own businesses and operations. In addition, this program will include the opening of an AI industry lab in partnership with the Economic Development Board of Singapore and other institutes of higher learning. We have a framework for rapidly incorporating and fine-tuning AI innovations and a path forward to apply AI to emerging trends we see in the space.
The customer chose that point opus to quickly and intelligently archived 80% of its content, which will save $2 million over the next three years in.
In addition to these savings our platform. We're also enhance their data governance and compliance posture.
Would meet this transformative moment in our industry, we're evolving our organization and making strategic investments to drive faster innovation. So we can continue delivering on our promise to advance their digital workplace, capturing growing markets and prioritize profitability.
First within a point, we see the need to create a program that will accelerate our AI consumption introduced automation to enhance our business and ensure we remain innovative and competitive that's why in the fourth quarter, we launched a point AI, our new program that is integrating AI across all aspect of our company.
From a products and services for our customers to our own businesses and operations. In addition, this program will include the opening of AI industry lab in partnership with economic development Board of Singapore, and other institution of higher learning.
We have a framework for rapidly incorporating and fine tuning our innovations and a path forward to apply AI to emerging trends, we see in our space, we look forward to sharing our progress in the coming quarters.
Tianyi Jiang: We look forward to sharing our progress in the coming quarters. Second, we recognize the importance of pursuing inorganic opportunities to expand our market presence and stay on the cutting edge of technology. We're excited to announce that we'll be anchoring a new growth equity fund, A3 Ventures, that will invest in B2B software companies that are ready for the global stage, including those focused on accelerating generative AI for the digital workplace around the world. In addition to creating a thriving ecosystem for Avepoint cloud customers and partners, our prominent role will provide line of sight to attractive assets, enhance our engagements with our channel network, expand our influence We look forward to sharing more information on A3 Ventures as the fund launches in the coming months. In closing, we're well positioned to help companies adapt and compete in today's dynamic business and technology landscape, as the value provided by the Avepoint Confidence Platform is critical to the success of the AI ambitions of companies around the world. With that, let me turn the call over to TJ. Thanks, TJ. And good afternoon, everyone.
Second we recognize the importance of pursuing inorganic opportunities to expand our market presence and stay on the cutting edge of technology. We're excited to announce that we'll be entering a new growth equity fund a three ventures that will invest in b to B software companies that are ready for the global stage, including that.
It was focused on accelerating gentiva AI for the digital workplace around the globe. In addition to creating a thriving ecosystem for Apple and cloud customers and partners are prominent role will provide line of sight to attractive assets enhance our engagements with our channel network expand our influence with strategic partners.
Increase our total addressable market, we look forward to sharing more information on a three ventures as the fund launches in the coming months.
In closing, we're well positioned to help companies adapt and compete in today's dynamic business and technology landscape as the value provided by the appling confidence platform is critical to the success of the AI ambitions of companies around the world.
With that let me turn the call over to Jim.
Thanks T J and good afternoon, everyone. Thanks for joining us today as T. J mentioned Q4 was an outstanding quarter with a number of financial highlights.
James Caci: Thanks for joining us today. As TJ mentioned, Q4 was an outstanding quarter with a number of financial highlights. Before I review our results, I'll spend a few minutes discussing how we evaluate our quarterly performance and also how we think about the long-term market opportunity ahead of us. I want to stress that we constantly balance the two.
Before I review our results I'll spend a few minutes discussing how we evaluate our quarterly performance and also how we think about the long term market opportunity ahead of us.
I want to stress that we constantly balance the two we recognize the importance of steady consistent execution, but we also don't simply manage the business for the next 90 days.
James Caci: We recognize the importance of steady, consistent execution, but we also don't simply manage the business for the next 90 days. Our primary goal is to ensure that Avepoint is always positioned for long-term growth and profitability. We spoke about this mindset at our inaugural Investor Day a year ago, which included a deep dive into our business drivers, several new KPIs, updated long-term targets, a review of our capital allocation priorities, and lastly, our target to be GAAP profitable and a Rule of 40 company in 2025. With 2023 now behind us, I'll revisit these with an update on our progress and then turn to our results and our initial expectations for 2024 Let me start by drilling down into our top-line performance, where we continue to execute and demonstrate improvements across the three pillars that drive our business. First, lending to new customers.
Our primary goal is to ensure that add point as always position for long term growth and profitability.
We spoke about this mindset at our inaugural Investor day, a year ago, which included a deep dive into our business drivers several new kpis updated long term targets a review of our capital allocation priorities and lastly, our target to be GAAP profitable and a rule of 40 company in two.
25.
With 2023 now behind Us I'll revisit these with an update on their progress and then turn to our results and our initial expectations for 2024.
Let me start by drilling down into our topline performance, where we continue to execute and demonstrate improvements across the three pillars that drive our business.
First landing new customers as you know the market. We serve is not constrained by customer segment industry or region, we sell to companies of all sizes in all verticals and in all areas of the world.
James Caci: As you know, the market we serve is not constrained by customer segment, industry, or region. We sell to companies of all sizes, in all verticals, and in all areas of the world. To capitalize on this demand, our strategy has been to drive more business through the channel, particularly with small and mid-market customers, as it allows us to further extend our reach and efficiently tap into the massive greenfield opportunity we see. When we discussed this at Investor Day in March of last year, we disclosed that we had over 17,000 customers.
To capitalize on this demand our strategy has been to drive more business through the channel, particularly with small and mid market customers as it allows us to further extend our reach and efficiently tap into massive greenfield opportunity. We see when we discussed this at Investor day in March of last year, we disclosed.
We had over 17000 customers a year later that number has grown to more than 21000 or growth of approximately 24%.
James Caci: A year later, that number has grown to more than 21,000, a growth of approximately 24%. While our S&B customers remain the fastest-growing segment, we are extremely pleased to see double-digit growth from our enterprise and mid-market customer segments versus a year ago. It's clear that our channel strategy is working and, combined with the experience of our direct sales force, is driving strong new logo acquisition, which in turn positions us for future growth. Second, strong renewals.
While our SMB customers remain the fastest growing segment. We are extremely pleased to see double digit growth from our enterprise and mid market customer segments versus a year ago.
It's clear that our channel strategy is working and combined with the experience of our direct sales force is driving strong new logo acquisition, which in turn positions us for future growth.
Second strong renewals at Investor Day, we disclosed our historical gross retention rates for the first time as well as our strategies to drive this metric higher including increased investments in customer success and technologies that provide better visibility into our customers' platform usage.
James Caci: At Investor Day, we disclosed our historical gross retention rates for the first time, as well as our strategies to drive this metric higher, including increased investments in customer success and technologies that provide better visibility into our customers' platform usage. While we know these will take time to be fully realized, we are encouraged that adjusted for the impact of FX, GRR was stable throughout 2023 at 87%, especially given the uncertain macro environment we saw last year, the fact that our solutions are primarily headcount-based, and that Q4, when we have our highest number of renewals. While we recognize that GRR can fluctuate, we remain confident in our ability to achieve our medium-term GRR target of 90% And lastly, the expansion opportunity within our existing customer base.
While we know these will take time to be fully realized we are encouraged that adjusted for the impact of FX G. R. R was stable throughout 2023 at 87%, especially given the uncertain macro environment, we saw last year.
The fact that our solutions are primarily head count based and that Q4, when we have our highest number of renewals.
We recognize the G. R. R can fluctuate we remain confident in our ability to achieve our medium term grrr target of 90% plus.
And lastly, the expansion opportunity within our existing customer base.
James Caci: As we have discussed, we know that customers who renew with us continue to expand and consume more of our platform. The best measure of this is our FX Adjusted Net Retention Rate, which was 109% for Q4, capping a year in which NRR improved by a percentage point each quarter. And like GRR, we continue to make progress toward our medium-term NRR target of 110 to 115%.
As we have discussed we know that customers, who renew with us continue to expand and consume more of our platform.
The best measure of this is our FX adjusted net retention rate, which was 109% for Q4 capping a year in which NR or improved a percentage point each quarter and late G. R. R. We continue to make progress toward our medium term <unk> target of 110 to one.
15%.
James Caci: We also looked closely at our attach rates, and another new disclosure at Investor Day was the percentage of our mid-market and enterprise customers taking two or more products, regardless of suite, and the percentage of those customers taking products from multiple suites. For our customers taking two or more products, we saw an increase from 48% at the end of 2022 to 50% at the end of 2023. And for our customers taking products from multiple suites, we saw an increase from 23% at the end of 2022 to 24% at the end of 2023. We are pleased to see the continued improvement in these metrics, given that it's common for new customers to start with one of our solutions and then expand once we demonstrate the value of our platform offer. These three pillars are what we primarily scrutinize as we assess our top line performance.
We also looked closely at our attach rates and another new disclosure at Investor Day was the percentage of our mid market and enterprise customers, taking two or more products, regardless of suite and the percentage of those customers taking products from multiple suites for customers, taking two or more products we saw.
Saw an increase from 48% at the end of 2022% to 50% at the end of 2023.
And for our customers taking products from multiple suites, we saw an increase from 23% at the end of 'twenty, 2% to 24% at the end of 'twenty. Three we are pleased to see the continued improvement in these metrics given that its common for new customers to start with one of our solutions and then expand.
And once we demonstrate the value of our platform offering.
These three pillars are what we primarily scrutinized as we assess our topline performance, but the other lens through which we are increasingly evaluated the business over the past several years is on a regional level. We are truly a global company with more than half our business coming from outside of North America.
James Caci: But the other lens through which we have increasingly evaluated the business over the past several years is at a regional level. We are truly a global company with more than half our business coming from outside of North America. We have provided greater authority and autonomy to our regional leaders, empowering them to truly understand our local markets.
We have provided greater authority and autonomy to our regional leaders empowering them to truly understand our local markets and we are pleased with the performance from each region, which I'll discuss more shortly.
James Caci: And we are pleased with the performance from each region, which I'll discuss more shortly. Now, let's spend a minute on the cost side, as we are equally focused on profitability. At Investor Day and throughout 2023, we discussed our plan to control the controllable and show steady operating margin improvement in the years to come. In 2023, we made meaningful progress toward our long-term targets, realizing some of the substantial embedded leverage in our business while continuing to deliver strong top-line growth. Starting with our gross margin, we finished 2023 at 73% on a non-gap basis, which is approaching our long-term target of 75%. To bridge this, further improvements will be driven by a continued reduction in our services business as a percentage of total revenues and in the costs associated with our SAS office.
Now, let's spend a minute on the cost side as we are equally focused on profitability at.
At Investor Day, and throughout 2023, we discussed our plan to control the controllable and show steady operating margin improvement in the years to come.
In 2023, we made meaningful progress toward our long term targets realizing some of the substantial embedded leverage in our business, while continuing to deliver strong top line growth.
Starting with our gross margin. We finished 2023 at 73% on a non-GAAP basis, which is approaching our long term target of 75%.
To bridge. This further improvements will be driven by a continued reduction in our services business as a percentage of total revenues and then the costs associated with our SaaS offering.
James Caci: In 2023, services represented 16% of our revenues after representing 18% of 2022's revenues. Our long-term goal is for services to be about 10% of revenue, turning to sales and marketing, which represented 38% of 2023 revenues on a non-gap basis. This is a significant improvement over 43% of 2022 revenues and 44% of our 2021 revenues. Our success this year was driven by improved sales efficiency and the ongoing maturing of our channel strategy, and we expect these dynamics to continue driving leverage as we steadily work toward our 30% long-term target. Research and development was 12% of 2023 revenues on a non-gap basis, and it's already within our 10 to 15% long-term range. This level is consistent with 12% of revenue in 2022, and we expect this level to hold as we continue to make investments in targeted geographies, in past and future acquisitions, and in the ongoing enhancements to our platform. Lastly, General and Administrative expenses, which were 15% of 2023 revenues on a non-GAAP basis after representing 20% of revenues in 2022. This improvement was driven by our focus on expense management, as well as the ongoing benefits of scale and the slowing incremental costs of being a public company.
In 2023 services represented 16% of our revenues after representing 18% of 2020 twos revenues. Our long term goal is for services to be about 10% of revenues.
Turning to sales and marketing, which were 38% of 2023 revenues on a non-GAAP basis. This is a significant improvement over the 43% of 2022 revenues and 44% of our 2021 revenues are success. This year was driven by improved sales in.
<unk> and the ongoing maturing of our channel strategy and we expect these dynamics to continue driving leverage as we steadily work toward our 30% long term target.
Research and development was 12% of 2023 revenues on a non-GAAP basis and is already within our 10% to 15% long term range.
This level is consistent with the 12% of revenue in 2022, and we expect this level to hold as we continue to make investments in targeted geographies in past and future acquisitions, and then the ongoing enhancements to our platform.
Lastly, as general and administrative which was 15% of 2023 revenues on a non-GAAP basis after representing 20% of revenues in 2022.
This improvement was driven by our focus on expense management as well as the ongoing benefits of scale and the slowing incremental cost of being a public company.
James Caci: We expect these dynamics to continue driving leverage as we steadily work toward our long-term target of 10% of revenue. Putting all of this together, we delivered a non-GAAP operating margin of 8.1% for 2023 compared to negative 1.2% in 2022, as our focus on profitable growth drove year-over-year margin expansion of over 930 basis points. And while we do not expect the same levels of margin expansion each year going forward, we do see a clear path to achieving gap profitability and Rule of 40 status in 2025.
We expect these dynamics to continue driving leverage as we steadily worked toward our long term target of 10% of revenues.
Putting all of this together, we delivered a non-GAAP operating margin of eight 1% for 2023 compared to negative one 2% in 2022.
As our focus on profitable growth drove year over year margin expansion of over 930 basis points.
And while we do not expect the same levels of margin expansion each year going forward, we do see a clear path to achieving GAAP profitability and rule of 40 status in 2025.
James Caci: Let's turn to our fourth quarter results, where, unless otherwise noted, I'll be referring to non-GAAP metrics. For the fourth quarter ended December 31st, 2023, total revenues were $74.6 million, up 17% year-over-year, an acceleration from Q3 and above the high end of our guidance. Within total revenue, Q4 SaaS revenue was $45.3 million, representing year-over-year growth of 37%. Q4 SaaS revenues represented 61% of total fourth-quarter revenues, the highest ever contribution we have seen from our fastest growing revenue segment. This compares to SAS representing 52% of total Q4 revenues a year ago. The strength of our SaaS business was also evident as we looked at our Q4 results by geography. In North America, SAS revenues grew 24% year-over-year and represented 57% of total North American revenues, which in turn grew 29% year-over-year. In EMEA, SAS revenues grew 47% year-over-year and represented 82% of total EMEA revenues, which in turn grew 6% year-over-year.
Let's turn to our fourth quarter results were unless otherwise noted I'll be referring to non-GAAP metrics.
For the fourth quarter ended December 31, 2023, total revenues were $74 $6 million up 17% year over year, an acceleration from Q3 and above the high end of our guidance.
Within total revenue Q4, SaaS revenue was $45 $3 million representing year over year growth of 37%.
Q4, SaaS revenues represented 61% of total fourth quarter revenues the highest ever contribution we've seen from our fastest growing revenue segment.
This compares to SaaS, representing 52% of total Q4 revenues a year ago.
The strength of our SaaS business was also evident as we look at our Q4 results by geography.
In North America, SaaS revenues grew 24% year over year and represented 57% of total North America revenues, which in turn grew 29% year over year in.
In EMEA, our SaaS revenues grew 47% year over year and represented 82% of total EMEA revenue, which in turn grew 6% year over year.
James Caci: And in APAC, SAS revenues grew 52% year-over-year and represented 45% of total APAC revenues, which in turn grew 13% year-over-year. As I've shared in prior calls, the mix of SaaS and term license business in any given quarter can impact our revenue growth due to the differences in revenue recognition. In Q4, this was especially true in EMEA and in APAC, where both regions had a much higher mix of SAS compared to the prior year, resulting in the optically lower revenue growth rates I just discussed.
And in APAC SaaS revenues grew 52% year over year and represented 45% of total APAC revenues, which in turn grew 13% year over year.
As I've shared in prior calls the mix of SaaS and term license business in any given quarter can impact our revenue growth due to the differences in revenue recognition in Q4. This was especially true in EMEA and in APAC, where both regions had a much higher mix of SaaS compared to the prior year reserve.
And the optically lower revenue growth rates I just discussed.
James Caci: This dynamic is why we encourage investors to look at ARR as the best metric of our performance. And, in line with my earlier comments on how we assess our results with a more regional view, we will begin disclosing regional ARR growth each quarter. In addition to offering greater transparency into our financial results, regional ARR growth will also provide a better view of the underlying momentum of the business everywhere we operate. And we were pleased with the year-over-year growth we saw in Q4. As North America ARR grew 24%, EMEA ARR grew 23%, and APAC ARR grew 21%. Each region was a strong contributor to our overall performance, with their respective ARR growth rates in line with the 23% ARR growth we reported on a consolidated basis.
This dynamic is why we encourage investors to look at <unk> as the best metric of our performance and in line with my earlier comments on how we assess our results with a more regional view, we will begin disclosing regional air our growth each quarter.
In addition to offering greater transparency into our financial results regional Air our growth will also provide a better view of the underlying momentum of the business everywhere we operate.
And we were pleased with the year over year growth. We saw in Q4 as North America <unk> grew 24% EMEA AOR grew 23% and APAC grew 21%.
Each region was a strong contributor to our overall performance with their respective are our growth rates in line with the 23% are our growth we've reported on a consolidated basis.
James Caci: Continuing now with total ARR and other key metrics we regularly assess, as of December 31, 2023, total ARR was $264.5 million, representing year over year growth of 23% or 24% after adjusting for the impacts of FX. As a result, net new ARR in Q4 was 13.9 million, representing year-over-year growth of 28 percent. We ended the year with 547 customers with ARR of over $100,000, an increase of 20% from the prior year. We also ended 2023 with 178 customers with ARR over $250,000, an increase of 30% from the prior year.
Continuing now with total air our and other key metrics, we regularly assess as of December 31, 2023, total <unk> was $264 $5 million representing year over year growth of 23% or 24% after adjusting for the impacts of FX.
As a result, net new <unk> in Q4 was $13 9 million representing year over year growth of 28%.
We ended the year with 547 customers with <unk> of over $100000, an increase of 20% from the prior year. We also ended 2023 with a 178 customers with a there are over $250000 an increase of 30% from.
In the prior year.
As of the end of Q4, 51% of total IRR came through the channel compared to 47% at the end of 2022.
James Caci: As of the end of Q4, 51% of total ARR came through the channel, compared to 47% at the end of 2022. And for Q4 specifically, 65% of our incremental ARR came through the channel compared to 72% for Q3. To remind you, the channel contribution to our incremental ARR may fluctuate from quarter to quarter, but we expect the channel contribution to total ARR to continue increasing each quarter. In turn, this should continue driving ARR growth and operating efficiencies as we saw throughout 2023. Turning now to our customer retention rates, as I mentioned, adjusted for the impact of FX, our trailing 12-month gross retention rate for the fourth quarter was 87%, consistent with the first three quarters of 2023. And looking at our FX Adjusted Net Retention Rate, the strong contribution from our existing customer base led to another improvement in NRR versus the prior quarter, as this metric was 109% in Q4 compared to 108% at the On a reported basis, Q4 GRR was 86%, an improvement from the 85% we reported in Q3. NRR also improved on a reported basis in Q4, as we delivered 108% compared to 107% in Q3.
And for Q4, specifically, 65% of our incremental air are came through the channel compared to 72% for Q3.
To remind you the channel contribution to our incremental air or may fluctuate from quarter to quarter, but we expect the channel contribution to total air are to continue increasing each quarter.
In turn this should continue driving <unk> growth and operating efficiencies as we saw throughout 2023.
Turning now to our customer retention rates as I mentioned adjusted for the impact of FX, our trailing 12 month gross retention rate for the fourth quarter was 87% consistent with the first three quarters of 2023.
And looking at our FX adjusted net retention rate the strong contribution from our existing customer base led to another improvement in N or are versus the prior quarter. As this metric was 109% in Q4 compared to 108% at the end of Q3.
On a reported basis Q4 G. R. R was 86% an improvement from 85% we reported in Q3.
And there are also improved on a reported basis in Q4, as we delivered a 108% compared to 107% in Q3.
James Caci: Turning back to the income statement, gross profit for Q4 was $56.1 million, representing a gross margin of 75.2% compared to 72.2% in Q4 2022. The year-over-year improvement in our gross margin is the result of our product mix, with SAS representing a higher portion and services representing a lower portion of our total revenues this quarter versus last year. Moving down the income statement, operating expenses for Q4 totaled $45.8 million, or 61% of revenues, compared to $44.5 million, or 70% of revenues a year ago.
Turning back to the income statement gross profit for Q4 was $56 1 million, representing a gross margin of 75, 2% compared to 72, 2% in Q4 2022.
The year over year improvement in our gross margin is the result of our product mix with SaaS, representing a higher portion and services representing a lower portion of our total revenues this quarter versus last year.
Moving down the income statement operating expenses for Q4 totaled $45 $8 million or 61% of revenues compared to $44 $5 million or 70% of revenues a year ago. As a result, Q4 operating income was $10 $3 million.
James Caci: As a result, Q4 operating income was $10.3 million, or an operating margin of 13.8%, and ahead of our guidance. We are also pleased that Q4 was our first quarter as a public company to achieve operating profitability on a GAAP basis. Turning to the balance sheet and cash flow, we ended the year with $226.9 million in cash and short-term investments. For the 12 months ended December 31st, 2023, cash generated from operations was $34.7 million, while free cash flow was $32.6 million. This compares to cash used from operations of $800,000 and free cash flow of negative $4.6 million in 2022. We are pleased with the meaningful improvement in our cash flow generation, which, combined with the strength of our balance sheet and the $30 million line of credit that we renewed with HSBC in November, puts us in an even stronger position to effectively allocate capital. As a reminder, our capital allocation priorities are the following.
Or an operating margin of 13, 8% and ahead of our guidance. We are also pleased that Q4 was our first quarter as a public company to achieve operating profitability on a GAAP basis, turning to the balance sheet and cash flow. We ended the year with $226 $9 million in.
Cash and short term investments.
For the 12 months ended December 31, 2023 cash generated from operations was $34 $7 million, while free cash flow was $32 $6 million. This compares to cash used from operations of $800000 and free cash flow of negative $4 <unk>.
$6 million in 2022, we are pleased with the meaningful improvement in our cash flow generation, which combined with the strength of our balance sheet and the $30 million line of credit that we renewed with HSBC in November puts us in an even stronger position to effectively allocate capital.
As a reminder, our capital allocation priorities are the following first to invest in the business for continued growth.
James Caci: First, to invest in the business for continued growth. Second, pursuing inorganic growth opportunities, either through strategic acquisitions or investments like the A3 Ventures Fund that TJ discussed. And finally, share repurchases. For the full year 2023, we repurchased approximately $40 million of our common stock.
Second pursuing inorganic growth opportunities either through strategic acquisitions or investments like the <unk> three ventures Fund T. J discussed and finally share repurchases for the full year 2023, we repurchased approximately $40 million of our common stock and through the.
James Caci: And through the end of 2023, we have utilized approximately $60 million of the $150 million board authorization. In addition, we have repurchased $6.1 million of our common stock year-to-date in 2024. While our program remains open, we will continue to evaluate buybacks as well as other components of our capital allocation strategy in 2024. Before I turn to our guidance, I'll briefly recap our full year 2023 results. Total revenues were $271.8 million, representing growth of 17%.
The end of 2023, we have utilized approximately $60 million of the $150 million board authorization in.
In addition, we have repurchased $6 $1 million of our common stock year to date in 2024.
While our program remains open we will continue to evaluate buybacks as well as other components of our capital allocation strategy in 2024.
Before I turn to our guidance I'll briefly recap our full year 2023 results total revenues were $271.8 million representing growth of 17% within total revenues SaaS revenues were $161 million and grew 37%.
James Caci: Within total revenues, SAS revenues were $161 million and grew 37%. For the full year, SAS revenues represented 59% of total revenues compared to 50% in 2022 and 45% in 2021. As mentioned, total ARR as of December 31st was $264.5 million, representing growth of 23% on a reported basis and growth of 24% on an FX-adjusted basis. As a result, net new ARR for the full year was $49.8 million.
For the full year SaaS revenues represented 59% of total revenues compared to 50% in 2022 and 45% in 2021.
As mentioned total air or as of December 31 was $264 $5 million representing growth of 23% on a reported basis and growth of 24% on an FX adjusted basis.
As a result, net new a or for the full year was $49 $8 million.
James Caci: This represents net new ARR growth of 5% on a reported basis and growth of 12% when adjusted for the $3 million of ARR we added in the 2022 TIGRAF acquisition. And as I discussed earlier, non-GAAP operating income for the year was $22.2 million, or an operating margin of 8.1%, compared to a non-GAAP operating loss of $2.9 million in 2022. Lastly, on a rule of 40 basis, which for Avepoint is the sum of ARR growth and non-GAAP operating margin, we finished 2023 at 31 compared to 27 for 2022. I would now like to turn to our outlook for the first quarter and the full year of 2024. For the first quarter, we expect total revenues of $71.4 million to $73.4 million, or approximately 22% year-over-year growth. Additionally, we expect non-GAAP operating income of $3.3 million to $4.3 million.
This represents net new <unk> growth of 5% on a reported basis and growth of 12% when adjusted for the $3 million of Air are we added in the 2022 tied RAF acquisition.
And as I discussed earlier non-GAAP operating income for the year was $22 $2 million or an operating margin of eight 1% compared to a non-GAAP operating loss of $2 $9 million in 2022.
Lastly, on a rule of 40 basis, which for AD point is the sum of AOR growth and non-GAAP operating margin. We finished 2023 at 31 compared to 27 for 2022.
I would now like to turn to our outlook for the first quarter and the full year of 2024 for the first quarter. We expect total revenues of 71 4 million to $73 $4 million or approximately 22% year over year growth.
We expect non-GAAP operating income of $3 3 million to $4 $3 million.
James Caci: For the full year, we expect total ARR of $314.7 million to $320.7 million, or approximately 20% year-over-year growth. We expect total revenues of $308.6 million to $316.6 million, or approximately 15% year-over-year growth. And lastly, we expect non-GAAP operating income of $27.4 million to $30.4 million.
For the full year, we expect total air our of $314 7 million to $327 million or approximately 20% year over year growth. We expect total revenues of $308 6 million to $316 $6 million or approximately 50.
15% year over year growth and lastly, we expect non-GAAP operating income of 27 4 million to $34 million in.
James Caci: In summary, we are extremely proud of our fourth quarter and full year 2023 results, and we are equally excited about continued execution in 2024 and capitalizing on the long-term opportunity ahead of us. Thanks for joining us today. And with that, we would be happy to take your questions. Operator.
In summary, we are extremely proud of our fourth quarter and full year 2023 results and we are equally excited about continued execution in 2024 and capitalizing on the long term opportunity ahead of us.
Thanks for joining us today and with that we would be happy to take your questions operator.
We will now begin the question and answer session to ask a question. Please press Star then one on your telephone keypad. If you were using a speaker phone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
Operator: We will now begin the question and answer session. To ask a question, please press star and then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the key.
Operator: To withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. This first question comes from Matt Materni with Evercore IS. I, and I'm sorry, that is Kirk, attorney. Please go ahead.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Matt maternity with Evercore I S.
Hi, and I'm, sorry that is Kirk attorney.
Please go ahead.
Hi, This is Shawn calling in for Kirk congratulations on the strong quarter and thank you for taking the question.
Chirag Haresh Ved: Hi, this is Chirag calling in for Kirk. Congratulations on the strong quarter and thank you for taking the question. So, TJ, are you seeing the increase in demand for AI and copilot around Microsoft's product suite increase the volume of discussions and revenue opportunity in a significant way for Avepoint today? Or are we still really early in the process?
So T. J are you seeing the the increase in demand in AI co pilot around Microsoft product suite increase the volume of discussion and revenue opportunity.
Significant wafer at a point today or are we still really early in the process and when you think about the medium to long term, how big of a tailwind or uplift do you think this will be for F points growth.
Tianyi Jiang: And when you think about the medium to long term, how big of a tailwind or uplift do you think this will be for Avepoint's growth? Thank you. That's a great question.
Yes.
That's a great question. So the overall macro backdrop hasn't really changed from quarter to quarter.
Tianyi Jiang: So the overall macro backdrop hasn't really changed from quarter to quarter, but you're absolutely right in that there are tremendous conversations and POCs, Proof of Concepts, and experimentation happening across the board, across all countries and all customer segments. We are involved in a ton of those types of conversations because our solutions are being utilized to enable AI project deployments, especially in the front end, which is data aggregation, cleansing, consolidation, removing out-of-date, trivial, redundant data, and classification and labeling. And then at the tail end, after the data model is being trained and continued to be updated to model after drifts in concepts, there's also data governance and security. So there is a ton of experimentation happening. We have active campaigns around the world with Microsoft regional teams, with global partners, and go-to-market partners. But right now, it's all experimentation.
But you're absolutely right in that there is tremendous.
Conversations and Poc's proof of concepts experimentation happening across the board across all countries and in all.
Customer segments, we are involved in a ton of those type of conversations.
Because our solutions are being utilized to enable AI project deployments, especially in the front end, which is a data aggregation cleansing consolidation removing holiday trivial redundant data and classification labeling and then at the tail end after the data model.
It's being trained and continue to be updated.
Tomorrow after drifts.
In concepts, there's also data governance and security so ton of experimentation happening we have active campaigns around the world with Microsoft to regional teams with global partners to go to market partners.
But right now it's all experimentation, we see a small group deployments, but not enterprise wide deployments yet so.
Tianyi Jiang: We see small group deployments, but not enterprise-wide deployments yet. So right now, there's just a lot of activity. We need to be seeing whether this applies to massive enterprise-wide deployment across the board. Pretty much what your research also talks about, there's gonna be a ton of experimentation, small uptake, but we think in the medium term, this will have a really big impact on AI adoption.
Right now there's just.
A lot of activity.
Remains to be seen whether this applies to a massive enterprise wide deployments across the board.
Pretty much what your research.
You also talk about there's going to be a ton of experimentation.
Small uptake, but we think in the medium term this will have a.
Really big impact to two AI adoption of course <unk> is core.
Operator: Of course, Avepoint is core to that story around data management. So in the medium term, we're actually very bullish about the outlook. All right, thank you. The next question is from Derek Wood with Cowan and Company. Please go ahead.
To that story around data management. So in the medium term, we're actually very bullish about the outlook.
Alright, thank you.
The next question is from Derrick Wood with Cowen and company. Please go ahead.
Great. Thanks.
Derek Wood: Great, thanks. TJ, we've heard from many other companies that SMB demand has softened a bit over the last few months. It doesn't sound like you guys are seeing any of that. So I'm just curious what kind of makes your spend more resilient than maybe other software vendors, especially downmarket? Yeah, great question.
T J.
We've heard from many other companies that SMB demand has softened a bit over the last few months. It doesn't sound like you guys are seeing any of that so I'm just curious what.
You think kind of makes your spend more resilient than maybe other other software vendors, especially down market.
Yeah, Great question. So our approach to SMB, it's really one of our MSP managed service provider approach, where smbs don't have I T. So they rely on managed service providers, who actually help them go to cloud and manage all their digital assets in cloud.
Tianyi Jiang: So our approach to SMB is really one of the MSP, so Managed Service Provider, approach, where SMBs don't have IT. So they rely on managed service providers who actually help them go to the cloud and manage all their digital assets in the cloud, including things like Microsoft 365 subscriptions, their networks, all their kinds of digital asset management. The MSPs became the aggregator, if you will, and end user of our solutions. We actually have a product line for that segment called Elements. It's effectively a MSP singular portal where managed service providers are used to manage hundreds, if not thousands, of tenant data behind the scenes, whether it's data backup or operation management, entitlement management, allocation of licenses, etc.
Including things like and at Microsoft 55 subscriptions their networks are there kind of digital asset management.
The Msp's became the aggregator if you will and end user of our solutions are we actually have a product line for that segment all elements.
Effectively a MSP singular portal or managed service providers will use to manage hundreds if not thousands of tenant data behind the scenes, whether it's data backup or operation management entitlement management and allocation of licenses et cetera, and we'll continue to invest in that area as the.
Tianyi Jiang: And we'll continue to invest in that area as the MSPs continue to become a big segment and view us as a strategic partner. So for us, because of that, that intermediation, we actually see continued very fast growth. That is our fastest growing segment. And that market is actually quite large.
S piece continue to become a big segment and view us as a strategic partner so for us because of that that intermediation, we actually see continue to bear.
Very fast growth that that is our fastest growing segment and that market is actually quite large so.
So we have even small msp's less.
Tianyi Jiang: So we have even small MSPs, less than 50 employees, that would do a million ACV with us on a yearly basis because they are so actively using our solution to lower their costs, improve their margins, at the same time providing enterprise-grade data management capabilities for SMB customers. So yeah, I think that's why we're not seeing what you articulated, where vendors have more of a direct relationship with SMB customers. At the same time, this is also, as we articulated over the last few quarters, really a greenfield segmentation for us because Apple came from a very large enterprise and regulated industry segment. So we're truly taking the enterprise-grade SaaS experience, performance, and quality to make it available to the SMB segment. And that's a really good winning formula, along with our platform play.
The lesson.
50 employees I would do a mirror in HCV with us on a yearly basis, because they are so actively using our solution to lower their cost improve their margins at the same time, providing enterprise grade data management capabilities for SMB customers. So yeah. So that I think that's why we're not seeing.
Seeing what you articulated.
If you if vendors have a more of a direct relationship with SMB customers at the same time.
This is also as we articulated over the last few quarters and this is really.
Greenfield segmentation for us because Apple and came from a very large enterprise and regulated industry segment. So we are truly taking the enterprise grade SaaS experience and performance and quality to make it available to F&B segment, and that's a really good winning formula along with our platform play so yeah I think overall.
Operator: So yeah, I think overall we'll continue to see very strong demand in that segmentation. Some helpful color, maybe one for you, Jim. 17% growth in Q4, you're guiding 22% in Q1 and then 15% for the full year. Is that the shape of that growth curve really just because of the seasonal mix around?
We will continue to see very strong demand in that segmentation.
Helpful color, maybe one for you Jim.
17% growth in Q4, you're guiding 22%.
In Q1, and 15% for the full year is that dynamic is that the shape of that growth curve really just because of the seasonal mix around.
Term and kind of how fast is flowing through in a different way that term does seasonally or any other dynamics to call out with.
Operator: Welcome everyone, the talenting effect as we're shifting more and more of our revenue to SAS, you know, up from 50% to 59%. So as that rolls then into Q1 of this year, we get the benefit of that. So we're seeing that nice pickup. And then again, over the course of the year, we've seen that throughout the year.
That shape of the growth curve looks like for fiscal 'twenty four.
Alan the effect as we're shifting more and more of our revenue to SaaS.
From 50% to 59% so as that Rolls then into Q1 of this year, we get the benefit of that so we're seeing that nice pickup.
And then again over the course of the year, we've seen that throughout the year, so that'll be less of an impact.
Operator: So that'll have less of an impact for future quarters. But, you know, again, we're seeing a nice shift to SAS and really less and less terms and less and less services. So again, I think that makes it more predictable for us, which is great, and gives us more confidence in that outlook. Thank you. Thanks, Perry. If you have a question, please press star then 1.
For future quarters, but you know again, we're seeing nice shift to SaaS, and really less and less term and less and less services. So again I think that makes it more predictable for us which is great.
And gives us more confidence in that outlook over the years.
Great Thanks and congrats.
Okay.
Thanks, Gary Thanks, Eric.
If you have a question. Please press Star then one.
At this time, we have no further questions. So this concludes the question and answer session I would like to turn the conference back over to T. J for any closing remarks.
Operator: At this time, we have no further questions. So this concludes the question and answer session. I would like to turn the conference back over to T.J. for any closing remarks. Thank you.
Thank you.
Tianyi Jiang: We're witnessing a historic shift in the business landscape, driven by the market environment and the technology revolution taking place. The excitement and opportunity are palpable in every interaction I've had so far this year with our teams, customers, and partners. The pace of change, which has always been fast in our industry, is accelerating even more. We have a clear strategy and plan to capitalize on the opportunities in front of us to accelerate the digital workplace for our customers and partners and help them collaborate with confidence and be AI ready in 2024. Thank you for joining us today. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
We're witnessing a historical shift in the business landscape driven by the market environment and the technology Revolution, taking place there.
Simon and opportunity are palpable in every interaction I have had so far this year with our teams customers and partners.
A change which has always been fast in our industry is accelerating even more we have a clear strategy and plan to capitalize on the opportunities in front of us to accelerate the digital workplace for our customers and partners and help them collaborate with confidence and be AI ready in 2024. Thank you for joining.
Yesterday.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.