Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 6% to $270 million, with full-year revenue totaling $1.08 billion, up 4% [21][22] - Adjusted earnings per diluted share increased by 3% to $1.21, while GAAP earnings per share increased by 12% to $0.86 [23] - RPO (Remaining Performance Obligations) increased by 25% to $2.2 billion, reflecting strong new logo momentum [22][24] - Operating cash flow increased by 40% to $147 million in Q4, with a free cash flow margin of 52.7% [24] Business Line Data and Key Metrics Changes - Q4 cloud revenue totaled $109 million, up 20%, contributing to a full-year cloud revenue increase of 21% to $408 million [22][24] - Services revenue in Q4 was $120 million, returning to growth earlier than expected, while full-year services revenue declined by 4% to $503 million [22][23] - Competitive win rates remained over 70%, with more than 75% of new cloud bookings generated from net new logos [9][22] Market Data and Key Metrics Changes - The company reported strong performance across various sectors, including retail, grocery, food distribution, life sciences, and technology [10][11] - New logos represented over 55% of new cloud bookings in 2025, indicating a healthy market presence [9][22] Company Strategy and Development Direction - The company aims to leverage its strengths in cloud solutions and AI capabilities to drive growth, with a focus on faster implementation and customer satisfaction [5][12] - Strategic investments in sales and marketing, along with key hires, are expected to enhance growth and operational effectiveness [6][8] - The introduction of AI agents and the Agent Foundry is a significant part of the company's strategy to provide innovative solutions to customers [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong fundamentals and a robust pipeline for 2026 [31] - The company anticipates continued growth in cloud revenue and a focus on expanding its customer base through cross-selling and converting on-premise customers to the cloud [12][30] - Management acknowledged the potential impact of the global macro environment on performance but remains optimistic about future prospects [3][4] Other Important Information - The company introduced a new metric, ramped ARR (Annual Recurring Revenue), which exceeded $600 million, up 23% year-over-year [10][21] - The board approved a replenishment of the $100 million share repurchase authority, reflecting confidence in the company's financial position [25] Q&A Session Summary Question: Progress on cloud migrations and fast renewals - Management reported early success in converting on-prem customers to cloud solutions and building a strong pipeline for 2026 [33][34] Question: Implementation times and time to value - Management indicated good progress in accelerating implementation times and closing deals as fixed-fee, fixed-timeline agreements [35][36] Question: RPO strength and deal timing - Management highlighted that Q4 strength came from a variety of products and deal types, contributing to confidence in the pipeline for 2026 [38][39] Question: Renewals and growth expectations - Management clarified that the expected 18%-20% contribution from renewals in 2026 reflects a conservative approach to deal durations [41][42] Question: Services business outlook - Management expressed confidence in the services business, driven by strong bookings growth and the introduction of agentic AI [43][60] Question: New bookings and migration pace - Management noted that new bookings include new logos, expansion within existing accounts, and conversions from on-prem to cloud, with a focus on market share growth [46][47] Question: Customer liquidation headwind - Management confirmed a $1.3 million headwind in Q4 due to customer liquidation, which is now accounted for in future projections [58]