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% [20][22] - Cloud revenue for Q4 reached $109 million, up 20%, contributing to a full-year increase of 21% to $408 million [22] - Adjusted earnings per diluted share increased by 3% to $1.21 in Q4, while full-year adjusted EPS rose by 7% to $5.06 [23] - RPO increased by 25% year-over-year to $2.2 billion, with competitive win rates remaining over 70% [10][22] Business Line Data and Key Metrics Changes - 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] - New logos represented more than 55% of new cloud bookings in 2025, with expectations for net new logos to revert to one-third of new cloud bookings over time [10][22] Market Data and Key Metrics Changes - The company reported strong performance across various sectors, including retail, grocery, food distribution, life sciences, and technology [11] - The pipeline remains strong with numerous opportunities for growth, including adding new customers and cross-selling [13] Company Strategy and Development Direction - The company aims to deliver sustainable double-digit top-line growth and top quartile operating margins, with a focus on cloud revenue and AI capabilities [25][30] - Strategic investments in R&D and sales have been made to enhance product offerings and improve sales velocity [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business fundamentals and the strong momentum entering 2026, despite a volatile macro environment [5][31] - The introduction of AI agents and the Agent Foundry is expected to drive significant value and customer satisfaction [7][16] Other Important Information - The company ended the year with $329 million in cash and zero debt, having invested $75 million in share repurchases in Q4 [24][25] - A new metric, ramped ARR, was introduced, which exceeded $600 million, up 23% year-over-year [11][21] Q&A Session Summary Question: Comments on cloud migrations and renewals - Management noted early success in converting on-prem customers to cloud solutions and building a strong pipeline for 2026 [34][35] Question: Insights on RPO strength and deal timing - The strength in RPO was attributed to a variety of products and deal types, with confidence in the pipeline for the upcoming year [47][49] Question: Services business outlook and growth confidence - Management highlighted strong bookings growth and the impact of agentic AI as key drivers for the services business, projecting mid-single-digit growth [61][110] Question: Clarification on customer liquidation headwind - A customer liquidation headwind of $1.3 million was noted for Q4, with an annualized impact of $2.5 million expected in 2026 [100][103]

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% [20][22] - Cloud revenue for Q4 reached $109 million, up 20%, contributing to a full-year cloud revenue increase of 21% to $408 million [22] - Adjusted earnings per diluted share increased to $1.21 in Q4, a 3% rise, while full-year adjusted earnings per share rose 7% to $5.06 [23] - RPO (Remaining Performance Obligations) increased by 25% year-over-year to $2.2 billion [22] Business Line Data and Key Metrics Changes - Services revenue in Q4 was $120 million, returning to growth earlier than expected, while full-year services revenue declined 4% to $503 million [22][23] - Competitive win rates remained over 70%, with over 75% of new cloud bookings generated from net new logos [10] Market Data and Key Metrics Changes - The company reported strong performance across various sectors, including retail, grocery, and life sciences, with significant new logo acquisitions in Q4 [11][12] - The pipeline remains strong, with opportunities for growth through new customer additions and cross-selling existing products [13] 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 [7][8] - Strategic investments in sales and marketing, along with the introduction of new leadership roles, are expected to enhance operational effectiveness [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing record cloud bookings and strong cash flow as indicators of robust business fundamentals [5][31] - The company anticipates continued momentum into 2026, with a target for total revenue growth of 10% and cloud revenue growth of 21% [26][28] Other Important Information - The company introduced a new metric, ramped ARR (Annual Recurring Revenue), which exceeded $600 million, up 23% year-over-year, to provide better visibility into cloud revenue growth [11][21] - The company plans to invest in share repurchases, having already repurchased $275 million worth of shares in 2025 [25] Q&A Session Summary Question: Comments on cloud migrations and renewals - Management noted early success in converting on-prem customers to cloud solutions and building a strong pipeline for 2026 [34][35] Question: Insights on faster implementation times - Management confirmed progress in accelerating deployment timelines, allowing for fixed-fee, fixed-timeline deals [40][41] Question: Clarification on cash taxes and free cash flow - Management indicated that cash taxes would remain stable, with free cash flow expected to align closely with EBIT and EBITDA [43] Question: RPO strength and deal timing - Management highlighted that Q4 RPO strength was driven by a variety of products and deal types, providing confidence in the pipeline for 2026 [47][49] Question: Services business outlook - Management expressed confidence in the services business, driven by strong bookings growth and the introduction of agentic AI, which is expected to enhance service offerings [61][62]