“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 status in 2025.”

In context

“is 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 status in 2025. Let's turn to our fourth quarter results where, unless otherwise noted, I'll be referring to non-GAAP metrics. For the fourth quarter ended December 31, 2023, total revenues were $74.6 million, up 17% year-over-year, an acceleration from Q3 and above the high end of our guidance. Within total revenue, Q4 SaaS revenue was $45.3 million, representing year-over-year growth of 37%. Q4 SaaS revenues represented 61% of total fourth quarter revenues, the highest ever contribution we have seen from our fastest growing revenue segment. This compares to SaaS representing 52% of total Q4 revenues a year ago. The strength of our SaaS business was also evident as we look at our Q4 results by geography. In North America, SaaS revenues grew 24% year-over-year and represented 57% of total North America r”