Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $73.2 million, and adjusted EBITDA was $8.1 million, both exceeding the high end of guidance ranges [19][20][46] - Full year revenue reached $312.5 million, with adjusted EBITDA of $24.1 million, also above guidance [20][46] - Recurring revenue constituted 94% of total revenue, with a slight increase in average revenue per customer to $625,000, up 2% year-over-year [48] Business Line Data and Key Metrics Changes - Revenue from hosted services was $60.2 million, down 23% year-over-year, while professional services revenue was $13 million, also down 23% year-over-year [46][47] - Net revenue retention improved to 82% in Q4, up from 79% in Q3, driven by favorable timing of deals [49] Market Data and Key Metrics Changes - U.S. revenue was $48.4 million, representing 66% of total revenue, while international revenue was $24.8 million, or 34% [48] - The company signed 39 deals in Q4, including 9 new logos and 30 expansions and renewals, translating to an 18% quarter-over-quarter increase in total deal value [43] Company Strategy and Development Direction - The company is focusing on three core pillars: enhancing go-to-market capabilities, innovating product offerings, and strengthening capital structure [10][13] - The vision for 2025 and beyond includes creating AI-powered workspaces that integrate digital capabilities and shift customer engagement from reactive to proactive [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges from legacy issues but expressed confidence in achieving positive net new ARR in the second half of 2025 [40] - The company anticipates a decline in revenue through most of 2025 before reaching an inflection point for sequential growth by year-end [51] Other Important Information - The company executed a transformative agreement with Lynrock Lake, enhancing its capital structure [13] - The integration of large language models has allowed the company to develop competitive products, driving significant cost savings and improved customer satisfaction [17] Q&A Session Summary Question: Clarification on partner attach target for 2025 - The target is for 35% of total bookings value to be driven by partners, with steady improvement expected from previous years [60] Question: Insights on Avaya integration and partnerships with Cisco and Amazon - The Avaya partnership is progressing well, with a 7-figure deal closed and additional opportunities in the pipeline [65] - Partnerships with Cisco and Amazon are part of a broader strategy to enhance voice capabilities [67] Question: Incremental spend on sales and marketing - There is no incremental investment relative to 2024; the focus is on maintaining spending in sales and marketing while reducing costs in other areas [72] Question: Update on debt situation and strategy - No updates or changes to the debt strategy were provided, but developments are expected throughout the year [75] Question: Sustainability of gross margin increase - The increase in gross margin is influenced by reduced consulting costs, but some pressure is expected in 2025 due to cloud migration costs [79] Question: Customer renewal cycle status - The legacy renewal cycle is expected to end in the first half of 2025, with most customer losses occurring in Q1 [82] Question: System overhaul implications for customers - The company allows customers to retain existing contact center infrastructure while integrating best-in-class digital solutions [86]