Financial Data and Key Metrics Changes - The company reported fourth quarter revenues of $24.9 million, up 2% year over year, and full year revenues of $92.2 million, just 1% below those of 2023 [34][10] - Non-GAAP net income for the year was $5.6 million, a significant recovery from a loss of $53 million last year, with positive cash flow generation of $4.8 million for 2024 [12][37] - Gross margins improved to approximately 70%, recovering from around 57% in 2023 [11][35] Business Line Data and Key Metrics Changes - The CCaaS (Cybersecurity as a Service) segment contributed revenues of $16.5 million for the full year, up 56% year over year, with annual recurring revenues (ARR) of $18.2 million, up 43% year over year [11][34] - Product revenue was reported at $4.8 million for the December quarter, down 55% year over year, attributed to fluctuations in specific deals [34][52] Market Data and Key Metrics Changes - The company secured significant contracts with major telecom operators, including Verizon and Vodafone, enhancing its market presence [14][22] - Verizon Business reported over 30 million subscribers, representing a substantial addressable market for the company's cybersecurity solutions [21] Company Strategy and Development Direction - The company is focused on a security-first strategy, integrating cybersecurity and network intelligence to create a differentiated offering [25][31] - The organizational structure has been revamped to better support customer demands, with a regional focus on sales and customer success [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position for long-term growth and profitability, citing a strong pipeline of opportunities and ongoing traction in the CCaaS segment [15][31] - The company anticipates another year of strong double-digit growth in CCaaS revenue and ARR for 2025 [18][31] Other Important Information - The company reduced operating expenses significantly, with non-GAAP operating expenses at $15.6 million, down 47% year over year [36] - The company had 504 full-time employees as of December 2024 [37] Q&A Session Summary Question: What is the driver of strong free cash flow generation for the quarter? - Management attributed the growth to continuous CCaaS growth and new service launches with existing customers [41] Question: What was the driver of the increase in support and maintenance revenue? - The increase was mainly due to the smart product line and catch-up on support agreements at year-end [45] Question: Why was product revenue down 55% year over year? - Product revenue fluctuates based on specific deals and seasonality, with CCaaS revenue increasing as a percentage of total revenue [52][53] Question: What are the expected growth rates for CCaaS? - Management aims to maintain high double-digit growth rates, similar to the previous year's performance [58] Question: How is the company planning to broaden its security offering? - The company is investing in R&D to extend security protection to customers even when they are off the network [90] Question: What is the expected performance of the DPI legacy business in 2025? - Management expects similar levels of performance but sees potential for upside based on new project wins [102] Question: Can you elaborate on the strong pipeline for CCaaS customers? - The pipeline includes both new services for existing customers and potential new customers, positioning the company well for growth [106]