Avid Technology, Inc.

Chief Executive Officer and President, and Ken Gayron, our Chief Financial Officer and EVP. In their prepared remarks, Jeff will provide an overview of our business, and then Ken will provide a detailed review of our financial and operating results, followed by time for questions. We issued our earnings release earlier this afternoon, and we have prepared a slide presentation that we will refer to on this call. The press release and presentation are currently available on the events and presentations page of our investor relations website at ir.avid.com. And shortly following the conclusion of this call, a replay will be available on our IR website for a limited time. During today's call, management will reference certain non-GAAP financial metrics and operational metrics. In accordance with Regulation G, both the appendix to our earnings release today and our investor relations website contain a reconciliation of the most closely associated GAAP financial information to the non-GAAP measures and also definitions for the operational metrics used on this call and in the presentation. Unless otherwise noted, figures noted by management during the call are non-GAAP, except for revenue, which is always GAAP. In addition, certain statements made during today's presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our comments and answers to your questions on this call, as well as the accompanying slide deck may include statements that are forward-looking and that pertain to future results or outcomes. These forward-looking statements are based on our current beliefs and information available as of today. Actual future results or occurrences may differ materially from these forward-looking statements. For more information, including a discussion of some of the key risks and uncertainties associated with these forward-looking statements, please see our press release issued today and our most recent annual report on Form 10-K filed with the SEC. With that, let me turn the call over to our CEO and President Jeff Rosica for his remarks.

Thanks, Whit, and my thanks to everyone joining us today to review Avid's fourth quarter and fiscal year 2022 results. There is a lot to talk about today, so let's dive right into the details. We again realized solid overall business performance in the quarter as we continue to see healthy market conditions and strong customer demand for Avid Solutions and ended the year with good momentum as we head into 2023. I'm very pleased with the results for Q4 as the business continued to perform quite well with the continued growth of our recurring revenue streams driven by strong subscription revenue growth and robust AR growth in the quarter. As we benefit from subscription becoming a considerably larger portion of our business and the concurrent acceleration of enterprise subscriptions, As part of the normal financial closing process for 2022, in consultation with our independent auditor, we reviewed the assumptions and methodology we were using around standalone selling price, or SSP, which is a key component used for determining the revenue recognition for subscriptions. After reviewing in detail the various assumptions that we used historically for the SSP calculations across all of our subscription SKUs, we revised our methodologies and will be using these going forward. As a technical accounting matter, in line with these revised methodologies, we booked a one-time non-cash corrective adjustment in Q4, which trued up the effect of these SSP calculations going back to 2020. The one-time adjustment adversely impacted reported revenue by $3.3 million and adjusted EBITDA and non-GAAP net income by $2.4 million in the fourth quarter. Ken will explain in more details how these numbers are related to the impacted periods. Now, this purely accounting headwind was immaterial in the context of the entirety of the past three years. However, because the prior period true-up had an impact on the reported Q4 results, you will see that our press release and earnings materials seek to allow investors to make what we believe to be an apples-to-apples comparisons for the relevant periods in 2022. If not for this accounting adjustment, we would have delivered revenue and non-GAAP EPS at the high end of our guidance and adjusted EBITDA within our guidance. In an effort to simplify our story for investors, given the complexity of ASC 606 accounting and SSP methodologies, we are pleased to introduce ARR as a guidance metric this quarter. As we've discussed with investors over the past year, we believe that this metric will be useful for investors in better understanding the real underlying growth trajectory of our subscription business. Ken will review all of this in detail in a few minutes. We ended 2022 with terrific momentum and Q4 was another strong booking quarter across all geographies and markets. One other important takeaway is that in the fourth quarter, integrated solutions revenue increased 55% sequentially as we are beginning to make good progress in working to resolve the challenges of the global supply chain situation on our business. As a result of continued strong integrated solutions orders received during the fourth quarter, the backlog of unshipped orders was reduced during the quarter, but remained above normal levels at the end of 2022 at over $20 million. Let me now discuss some more specifics around our business performance. The recurring revenue components of the company's business, which are obviously quite strategic for the company, remained strong during the fourth quarter, largely driven by the continued strong performance of our subscription business for both enterprises and creatives. As I talked about previously, ARR has become a better metric for us as the subscription and SaaS business continues to grow, giving us a more valuable measurement of performance. Subscription ARR was $141.3 million at the end of 2022, an increase of 37.1% year-over-year, and total ARR was $244.9 million, an increase of 10.2% year-over-year. At custom currency, subscription ARR increased 38.8% year-over-year, and total ARR increased 13.4% year-over-year. Subscription revenue during the fourth quarter was $42.5 million, an increase of 24.6% year-over-year. Constant currency subscription revenue increased 29.6% year-over-year. Excluding the one-time accounting adjustment in the quarter that I spoke about earlier, subscription revenue increased 34.3% year-over-year and 39.2% year-over-year at constant currency. New subscriber growth for both our enterprise solutions and creative tools continue to grow nicely, with paid cloud-enabled software subscriptions increasing by 23,100 during the quarter. It is quite noteworthy that we exceeded 1.5 million paid cloud-enabled software subscriptions as of December 31, 2022, an increase of over 23% year-over-year. This is an exciting and important milestone for the company. Our enterprise subscription business is a fast-growing and quite valuable part of our business today and will be in the future. The shift of subscription for our enterprise clients has been quite successful, and we continue to outpace our own expectations. Our sales team continues to be very effective in moving our customers towards our enterprise subscription offerings, with over 50 new agreements signed just this past quarter, most of which are multi-year agreements with accounts like Globo in Brazil, Network 10 in Australia, and A&E Networks here in the U.S. Our enterprise subscription agreements are quite valuable for the company, especially with the multi-year contractual commitment with these enterprise customers, as well as the robust uplifts and increase in ARR that we are realizing. This has also motivated us to accelerate the end of our perpetual license options, which is the right business decision for the company, though it does create a bit of a near-term comparative headwind. With that said, our enterprise subscription agreements with the inherent multi-year contractual element have different timing characteristics for cash conversion than annual or monthly subscriptions. This puts some near-term pressure on our cash flow due to the timing or a J-curve effect on cash billings. This pressure will ease as we complete the initial conversion of our enterprise customers to subscription and does not change our assumptions in our long-term model. Ken will also discuss this cash conversion dynamic in more detail during his remarks. Overall, we continue to see healthy customer demand for media central and associated apps with significant net new subscription ads during Q4 as enterprise customers continue to embrace our subscription offering and have been investing in enabling new remote production workflows and addressing the growing demand for content creation in television and film production. In our creative tool segment, we saw a continued solid stream of net subscription ads, both in Pro Tools and Media Composer that contributed to our subscription revenue growth. We did experience a slight pullback in the number of net subscriptions for Sibelius in the quarter, though it was mainly in the lower price tiers. So ultimately, we still ended with strong subscription revenue growth for Sibelius. Our new Pro Tools tiered offerings continue to bring us new next generation music creators in support of our long-term strategy. We continue to see subscriber growth in the newer low-end artist tier, which shows our decision to offer a lower-priced offering was the right thing to do. And Pro Tools Intro, the new free tier announced last September, has registered over 150,000 activations to date. It continues to become a strong new acquisition vehicle for future subscribers, as we're seeing good initial conversion rates to paid subscribers. We expect this to be a great growth engine for us in 2023. And finally, recurring revenue was 84.5% of total revenue for 2022, which was up 650 basis points from the prior year. Now, let me take a couple of minutes to discuss a few of the key outcomes from fiscal year 2022. I'm proud of how the team executed throughout 2022 and delivered growth in both revenue and profitability despite numerous macro headwinds, including unfavorable foreign currency exchange rates and a difficult global supply chain environment during the year. In 2022, we released several innovative new product releases, including Nexus Edge, M-Box Studio, Nexus F-Series Subscription, Carbon Pre, Venue Stage 48, and for our creative users, we delivered several important updates to Pro Tools and Media Composer, addressing shifting market requirements with the highly anticipated initial enhancements for picture and sound workflows and several new plugin options for music creators. With the market dynamics for our customers that they've experienced this past year, our priority was to shift and support their changing business and technology requirements. And we continue to address new competitive challenges and next generation user requirements while meeting our near-term growth and profitability objectives. For the full year in 2022, subscription revenue was $151.3 million, an increase of 37.1% year over year. Excluding the one-time adjustment booked in Q4, subscription revenue would have increased over 42% year over year and over 47% year over year at constant currency. As I mentioned before, enterprise subscriptions performed well ahead of expectations as we saw a high level of demand for our enterprise customers throughout the year, making a transition to subscription as seen in significant momentum with customers such as Amazon Studios, Fox, ITV News, Paramount Global, and NFL Films. Creative tools also saw consistent growth throughout the year. We realized a total of 95,400 net additions for paid cloud enabled software subscriptions in 2022, which was right in line with our long-term model and our strategic growth plan. Total revenue for the fiscal year 2022 came in at 417.4 million, an increase of 5.3% as measured on a constant currency basis. Excluding the one-time adjustment in the fourth quarter, total revenue would have increased over 6% year over year on a constant currency basis. Most importantly, we continue to deliver improved profitability in 2022, delivering adjusted EBITDA of 81.6 million and adjusted EBITDA margin was 19.5%, an increase of 110 basis points year over year. Excluding the one-time adjustment in the fourth quarter, adjusted EBITDA would have increased 11.3% year over year and 21.3% year over year at constant currency. And finally, we continued our approach to strategic capital deployment to optimize shareholder value throughout the year and over the course of 2022. The company repurchased 2 million shares for $52.8 million, including purchasing 360,000 shares for $9.3 million in the fourth quarter. As we enter 2023, we feel confident in the underlying performance of the business as our product innovations continue to drive healthy market and customer demand. Like most organizations, we'll need to be proactive in navigating global macroeconomic situations that may unfold during the year, but we have carefully considered that in our full year and first quarter guidance for 2023. As you will see in our guidance, we expect to deliver continued growth in revenues, profitability, and free cash flow for 2023. We anticipate continued strength of our subscription business for both creative tools and enterprises, with additional contribution from new subscription solutions coming to market during the year. We expect to deliver sustained subscription revenue growth and a double-digit increase in both subscription ARR and total ARR for 2023. In our creative tools business, we have additional exciting music creation innovations coming this summer that will contribute to Pro Tools growth. In enterprise, we've converted about one third of our customers to subscription, and we expect that the innovations we've delivered and have planned for later this year will contribute to drive enterprise subscription growth. The ongoing transition of our enterprise customer base to subscription will continue to impact free cash flow in the near term, but longer term will stabilize, as mentioned earlier, with the J-curve effect of that business on cash flow. Regarding our continued recovery from the impacts of the global supply chain situation, on top of our progress that we made in Q4, where we resumed volume shipments of our live sound and control services, we do anticipate working through much of the remaining supply chain impacts we're currently seeing by mid-year. Specifically, we expect to resume volume shipments for additional audio products in the second quarter, though we do not foresee much additional progress during Q1. Again, this has been factored into our guidance. As always, we will continue our efforts and remain disciplined to improve efficiency and carefully manage our cost structure, but we also continue to make investments in new strategic innovations, as well as our digital transformation in support of our long-term strategic growth plan. As we've shown in the past few years, this team manages proactively with speed and tight controls to ensure we deliver year-over-year improvements in profitability, while we also focus on both near-term and long-term growth. We have continued to develop new management talent for our future, including hiring a new general manager of our audio and music solutions business last year. Among other initiatives, last month we announced a voluntary retirement program that we believe will help to ensure that we are able to continue to drive cost efficiencies while also infusing our organization with additional new talent and skills that we need to execute towards our future. In 2023, we will continue our emphasis on good execution and improving profitability while remaining hyper-focused on driving growth in our recurring revenue, including subscription and SaaS. I am excited about the talented team we have assembled here and the strategic innovation big bets that we have in development. I also have confidence in this management team's proven ability to proactively manage any macro headwinds that we may encounter and continue our focus on delivering improved shareholder value. So with that, let me now turn the call over to Ken to review more of the financial details. Over to you, Ken.

Thank you, Jeff, and good afternoon, everyone. Overall, we had a solid quarter with strong growth in our subscription business, including 37% growth year-over-year in subscription ARR and 10.2% year-over-year growth in total ARR. At constant currency, subscription ARR increased 38.8% year-over-year and total ARR grew 13.4% year-over-year as FX was a headwind in the quarter. As Jeff mentioned, Avid booked a negative $3.3 million non-cast adjustment to revenue in Q4 related to a change in methodology for our standalone selling price for our subscription term-based licenses. This is due largely to the evolving nature of assessing SSP and some of the new observable inputs that impacted our assumptions for SSP. The reason for the correction is that we saw our enterprise subscription business accelerate at a faster rate than anticipated in 2021 and 2022. And with this development, we updated our methodology for SSP in the fourth quarter of 2022. This adjustment is one time and represented immaterial corrective change for prior periods consisting of positive 100,000 related to 2020, negative 2.1 million related to 2021, and negative 1.3 million for the nine months ended September 30th, 2022. This one-time non-cast adjustment is immaterial in terms of our overall revenue as it represents 30 basis points of total revenue for the period from 2020 to 2022. However, it did adversely impact our fourth quarter results as the adjustment negatively impacted revenue by 3.3 million and EBITDA by 2.4 million, respectively, as all prior period changes were booked in Q4-22. However, when you exclude this one-time non-cash revenue adjustment and the associated bonus adjustment, we would have delivered revenue in non-GAAP EPS at the high end of our guidance range and adjusted EBITDA within the implied range. As we look forward, the new methodology is expected to have an immaterial impact to our fiscal 23 results, and we have factored this into our 2023 guidance. Given the corrected accounting methodology, we feel even more strongly that ARR, which reflects the actual annualized contract value for subscription and maintenance customer agreements, is the most important metric when assessing the health of our growing subscription business. As such, we are introducing ARR guidance to help investors evaluate the future trends for AVID subscription and maintenance business. With that, let's now turn to the details of our fourth quarter and fiscal year 2022 financial results. We are encouraged by the continued growth of our paid subscription base. Our total subscription count exceeded a half a million at the end of the fourth quarter, an increase of 23% year over year. Creative subscription growth was solid and enterprise subscription performance in the fourth quarter continued to exceed our expectations. We added approximately 12,800 new creative subscription users, reflecting growth of 15.7% year-over-year. In September 2022, we introduced Pro Tools Intro, a new introductory free version aimed to capture aspiring music creators and further build the rapidly expanding Pro Tools ecosystem. We have seen more than 150,000 signups to Pro Tools Intro to date, increasing the pool of users to potentially convert to paid subscriptions as we move forward. Moving to our enterprise business, Media Central subscriptions grew to approximately 45,900, an increase of about 10,300 during the fourth quarter, representing year-over-year growth of 249%. The increase in enterprise subscriptions furthers our confidence in the transition of our existing customer base to subscription. We believe we have converted about one third of the existing media central professional customer to subscription in terms of dollars during the first two years of availability. So we still have a lot of opportunity ahead. As our enterprise subscription business continues to become a more meaningful part of our subscription mix, it is positively impacting our overall price per seat, as the price of an enterprise seat is a multiple of the price of a creative seat. Now moving to annual recurring revenue and LTM recurring revenue. Annual recurring revenue based on the annualization of subscription and maintenance bookings was $245 million in the fourth quarter, an increase of $23 million or 10% year-over-year and 13% year-over-year at constant currency. Growth in ARR was due to subscription ARR growth of 37% as we continue to convert maintenance customers to subscription at healthy uplifts plus add new customers. At constant currency, subscription ARR increased 39% year over year. Our focus on growing our recurring revenue continues to drive greater predictability in our business and results in improvements in gross margin over time. As of the fourth quarter, LTM recurring revenue was 84.5% of total revenue, up from 78% a year ago and in line with our long-term model. Now let's look at the results for the fourth quarter of 2022, beginning with the components of our revenue. The consistent growth in the number of paid subscriptions drove continued growth in our subscription revenue during the fourth quarter, which reached $42.5 million, an increase of 25% year-over-year and 30% on a constant currency basis. Excluding the one-time non-cash revenue adjustment of 3.3 million in the quarter, subscription revenue would have increased 34.3% year over year and 39.2% year over year at constant currency. Maintenance continues to be a solid part of the business. During the fourth quarter, maintenance revenue was $26.5 million, down 16% year-over-year. As we continue to successfully convert our enterprise customers to subscription offerings at healthy uplifts in excess of 140%, we are seeing a reduction in the related software maintenance revenue from those customers. Total subscription and maintenance revenue increased year-over-year by 5% in the fourth quarter and 9% on a constant currency basis. Excluding the one-time non-cash revenue adjustment in the quarter, subscription and maintenance revenue would have increased 10.3% year over year and 14.3% year over year at constant currency. In the fourth quarter integrated solution revenue was 40.8 million, a decrease of 4% year over year, but 55% higher than during the previous quarter as we continue to resolve supply chain issues through finding alternative sources of supply, selective redesigns, and other means. Total combined integrated solutions perpetual and professional services revenue was 47.2 million in the fourth quarter. Total revenue in the fourth quarter was $116.1 million, down 2.5% year over year and up 2% at constant currency. Excluding the one-time non-cash revenue adjustment in the quarter, total revenue would have increased 0.3% year over year and 4.4% year over year at constant currency. Non-GAAP gross margin was 64.6% for the fourth quarter, down 160 basis points year over year, and down 30 basis points at constant currency. We were successful at shipping a large portion of our live sound backlog in Q4, but this did impact our overall gross margins for the quarter. Also, the one-time non-cash revenue adjustment in the quarter adversely impacted non-GAAP gross margin by 80 basis points in the quarter. Non-GAAP operating expenses were $52.5 million in the fourth quarter, a $3.3 million decrease year over year. The impact of FX favorably impacted our operating expenses in the quarter, as our global cost base does provide a partial hedge against currency fluctuations. Also, our bonus accrual was reduced by $700,000 in the quarter as a result of the one-time non-cash accounting adjustment. Adjusted EBITDA was $24.8 million in the fourth quarter, down $150,000 year-over-year. When adjusting for the FX impact to both revenue and cost, adjusted EBITDA was negatively impacted by approximately $2.1 million in the quarter. Excluding the one-time non-cash revenue adjustment in the quarter and the adjustments to the bonus, adjusted EBITDA would have been $2.4 million higher than the reported results at $27.2 million in the quarter. And on a constant currency basis, adjusted EBITDA would have been $29.2 million in the quarter. Finally, non-GAAP earnings per share was $0.45 in the fourth quarter, down $0.01 year over year. When adjusting for the FX impact to both revenue and cost, non-GAAP earnings per share was $0.49. Excluding the one-time non-cash revenue adjustment and bonus adjustment in the quarter, non-GAAP earnings per share would have been $0.51. And on a constant currency basis, non-GAAP EPS would have been $0.55. Next, let's look at the results for our full year 2020, beginning with the components of our revenue. For the full year, subscription revenue was 151.3 million, up 40% year over year and 45% on a constant currency basis. Excluding the one-time non-cash revenue adjustment in the fourth quarter, subscription revenue increased 43% year over year and 48% year over year at constant currency. For the full year, maintenance revenue was $109.8 million, down 10% year-over-year. Subscription and maintenance revenue saw 13% growth for the full year 2022 and 16% at constant currency, which is in line with our long-term plan. Excluding the one-time non-cash revenue adjustment in the fourth quarter, FY22 subscription and maintenance revenue would have increased 14.6% year-over-year and 17.8% year-over-year at constant currency. Perpetual license revenue was $11.1 million for the full year 2022, a decrease of 53% year-over-year as we continue to de-emphasize perpetual licenses and focus on strategic subscription revenue. integrated solutions revenue was 123.3 million in full year 2022 down 6% or 7.8 million year over year do the supply chain headwinds related to certain parts of our audio business. Although we are seeing improvements in our backlog in the quarter as anticipated as we resolve certain supply chain issues we continue to see strong orders and, as a result, we ended the year with over 20 million of backlog at 1231 2022. Total revenue for the full year 2022 was $417.4 million, up 2% year-over-year and 5% at constant currency. Excluding the one-time non-cash revenue adjustment in the fourth quarter, total revenue would have increased 2.6% year-over-year and 6.1% year-over-year at constant currency. As reported, we were in the low end of our guidance range for revenue, but we would have have delivered revenue at the high end of the range when you exclude this one-time non-cash revenue adjustment. Now let us turn to the rest of the P&L for the full year 2022. Our strategy of investing in innovation to drive higher quality recurring revenue together with effective cost controls has resulted in a sustained trend of margin expansion and continued profitable growth. Non-GAAP gross margin was 66.2% for the year, up 90 basis points compared to 2021 as our high margin subscription business made up a larger share of our revenue. We continue to expect improving gross margin in our long-term model as our subscription business continues to be a bigger piece of our overall mix. Excluding the one-time non-cash revenue adjustment in the quarter, non-GAAP gross margin would have increased 120 basis points year-over-year and 230 basis points at constant currency. Non-GAAP operating expenses were $203.3 million for the full year 2022, a $2.9 million increase year-over-year. Non-GAAP operating expenses were 48% of revenue in 2022, down from 48.9% of revenue in 2021. For the full year of 2022, adjusted EBITDA was $81.6 million, up 8.1%, driven by the improvement in both revenue and non-GAAP gross margin. When adjusting for the FX impact to both revenue and costs, adjusted EBITDA was negatively impacted by $7.4 million in the year and would have resulted in a 17.9% growth at constant currency. Excluding the one-time non-cash revenue adjustment and the associated bonus adjustment in the fourth quarter, adjusted EBITDA would have been $84 million, an increase of 11.3% year-over-year. And on a constant currency basis, adjusted EBITDA would have been $91.6 million, an increase of 21% year-over-year. We ended 22 in a strong financial position with net debt to EBITDA of 1.8 times. Finally, non-GAAP earnings per share was $1.41 for the year, up 12.8%, reflecting the improved operating income during full year 2022. When adjusting for the FX impact to both revenue and cost, non-GAAP earnings per share would have been $1.56. Excluding the one-time non-cash revenue adjustment and bonus adjustment in the fourth quarter, non-GAAP earnings per share would have been $1.47, an increase of 18% year-over-year, and at constant currency, $1.62, an increase of 30% year-over-year. Now moving to free cash flow. Free cash flow was 18.3 million in the quarter, down 6.7 million year-over-year due to a smaller contribution from working capital and timing of receivables collections at the end of Q4. as more of our quarter's billings were at the end of the quarter compared to the fourth quarter of 2021. For the full year 2022, free cash flow was 32.8 million. The following factors account for the change in our free cash flow generated in 2022 versus 2021. First, on a positive note, higher adjusted EBITDA in 2022 from strength in our enterprise subscription offset by unfavorable foreign exchange rates. Second, greater use of cash and working capital in 2022, primarily from timing of cash billings related to multi-year enterprise subscriptions. And third, higher capital expenditures and prepaid expenses in 2022 due to temporary DTI investments and capitalized software development to support our long-term growth plan. Free cash flow as adjusted for the exclusion of cash costs restructuring was 33.7 million for full year 22. Free cash flow conversion from adjusted EBITDA was 40% in 2022. AVID's management is focused on improving its free cash flow conversion in 2023. We will continue to invest in growth initiatives to drive our subscription revenue, but we'll be very prudent in overall expense management as we look to reduce investments in other areas to improve our free cash flow in 2023. Also, we expect working capital to be more of a benefit in 2023, which should assist free cash flow along with the improvements we see in our profitability. We expect to incur restructuring costs of $7 million in the year, and our guidance will reflect the add-back of those costs. Finally, we continue to execute corporate actions to enhance long-term shareholder value. During the fourth quarter, we repurchased 365,000 shares for $9.3 million, reflecting an average price of $25.45 per share. For full year 2022 we repurchased 2.04 million shares for $52.8 million, reflecting an average price of $25.95 per share. Additionally, during the first quarter of 2023 through February 28th, we also repurchased 14,500 shares for $400,000, bringing the total repurchase to 2.9 million shares or 78.3 million under the $115 million authorization announced in September 2021. We will continue to deploy capital prudently in the most responsible way to drive long-term shareholder value. Let's now turn to guidance. As Jeff said, we are confident in the underlying strength in our business, including the healthy demand for our solutions that we are seeing. We expect continued strong growth in our subscription revenue from continued solid performance in our creative tools and enterprise subscription business. We also expect to see improved performance in our integrated solutions beginning in the second quarter of 2023, as we expect a more meaningful reduction in our backlog at that time. Before I go through the guidance numbers, our assumption on FX rates is a pound USD exchange rate of 1.2 to 1 and a euro USD exchange rate of 105 to 1. In terms of guidance for the first quarter of 2023, our guidance for ARR at the end of the period is 247 million to 251 million. For first quarter 2023, our total revenue guidance is 97 to 105 million. Overall, our guidance for Q1 assumes a small improvement in our backlog of integrated solutions orders, as we believe at this time we will be resolving the remaining supply chain issues in Q2 and ultimately converting the backlog to revenue in Q2 and in Q3 of 2023. Our guidance for the first quarter 2023 subscription and maintenance revenue is $63 to $67 million. Our guidance for first quarter 2023 adjusted EBITDA is $16 to $20 million. Our guidance for first quarter 2023 non-GAAP earnings per share is 21 cents to 29 cents, assuming 44.2 million shares outstanding. At this time, we are also providing guidance for the full year 2023. Our guidance for 2023 ARR at the end of the period is 270 to 280 million, a range which represents year-over-year revenue growth of 12.3% at the midpoint. Our guidance for 2023 total revenue is 447 million to 472 million, a range which represents year-over-year revenue growth of 10.1% at the midpoint. Our guidance for 2023 subscription and maintenance revenue is 292 to 302 million, a range which represents the over-year growth of 13.7% at the midpoint. Our guidance for 2023 adjusted EBITDA is 95 to 105 million. And our guidance for 2023 non-GAAP earnings per share is $1.53 to $1.75, assuming 43.5 million shares outstanding. And our guidance for 2023 free cash flow as adjusted is $50 to $60 million, which includes $7 million in cash restructuring. Our 2023 free cash flow guidance reflects the improvements in profitability and improvement in working capital, slightly offset by higher cash interest costs due to the higher base rates and higher cash restructuring costs. With that, I'd like to turn the call back to Whit.