“This level is consistent with the 12% of revenue in 2022 and we expect this level to hold as we continue to make investments in targeted geographies, in past and future acquisitions, and in the ongoing enhancements to our platform.”

In context

“uction in our services business as a percentage of total revenues and in the cost associated with our SaaS offering. In 2023, services represented 16% of our revenues after representing 18% of 2022's revenues. Our long-term goal is for services to be about 10% of revenues. Turning to sales and marketing, which were 38% of 2023 revenues on a non-GAAP basis. This is a significant improvement over the 43% of 2022 revenues and 44% of our 2021 revenues. Our success this year was driven by improved sales efficiency and the ongoing maturing of our channel strategy. And we expect these dynamics to continue driving leverage as we steadily work toward our 30% long-term target. Research and development was 12% of 2023 revenues on a non-GAAP basis and is already within our 10% to 15% long-term range. This level is consistent with the 12% of revenue in 2022 and we expect this level to hold as we continue to make investments in targeted geographies, in past and future acquisitions, and in the ongoing enhancements to our platform. Lastly is general and administrative, which was 15% of 2023 revenues on a non-GAAP basis after representing 20% of revenues in 2022. This improvement was driven by our focus on expense management as well as the ongoing benefits of scale and the slowing incremental costs of being a public company. We expect these dynamics to continue driving leverage as we steadily work toward our long-term target of 10% of revenues. Putting all of this together, we delivered a non-GAAP operating margin of 8.1% for 2023 compared to negative 1.2% in 2022. As our focus on profitable growth drove year-over-year margin expansion of over 930 basis points. And while we do not expect the same levels of margin expansion each year going forward, we do see a clear path to achieving GAAP profitability and Rule of 40”