“We expect to maintain a similar effective tax rate in 2024.”

In context

“Roei Golan (CFO): Thank you, Gil, and everyone for being on the call today. I am pleased to join you as we review the fourth quarter of 2023. We had an impressive quarter, achieving an operating income of $309 million, which reflects a 7% increase year-over-year, along with a robust operating margin of 47%. Our revenues totaled $664 million, exceeding our projection by $3 million, and our non-GAAP EPS was $2.57, surpassing the high end of our forecast by $0.02. For the full year, our revenues reached $2,450 billion, marking a 4% increase year-over-year, while our EPS stood at $8.42, reflecting a 14% year-over-year growth. This is our highest EPS for a quarter since 2011. Regarding our revenues and deferred revenues, we saw a 4% increase in revenue. Our deferred revenues amounted to $1,908 billion, up 2% year-over-year, and short-term deferred revenues increased to $1,440 billion, a 4% rise from the previous year. Our calculated billing was $862 million, with current calculated billings at $831 million. Additionally, due to the interest rate environment, we observed several customers willing to pay upfront for multiyear deals, which affected short-term billing duration. Our Infinity deals offer more flexibility in billing terms, contributing to a growing segment of our business. The annualized bookings we present in the next two slides have not been billed yet but are included in our backlog, which stands at approximately $2,250 million, growing 5% year-over-year. The growth in revenue was primarily fueled by subscription revenue, which rose 15% this quarter to $266 million. This performance reflects strong demand for our Infinity platform and Harmony Email, both of which are showing positive momentum. As we look at our new business annualized bookings this quarter, we saw double-digit growth across all geographic regions. This marks a notable turnaround compared to Q3, where growth was nearly flat. In Q4, we saw favorable upward trends, and we anticipate that this growth will translate into billings and revenues soon. The Infinity consolidated platform continues to contribute significantly, with revenue growth exceeding 10% of total revenues. We are witnessing more customers adopting our platform to meet their comprehensive needs. Geographically, we experienced strong demand in America, accounting for 42% of total revenues, primarily driven by Infinity and Harmony Email. EMEA accounted for 48%, with Asia Pacific contributing the remaining 10%. Notably, annualized bookings in these regions saw double-digit increases, indicating solid momentum in Q4. Moving to the P&L, our gross profit rose to $591 million, translating to a gross margin of 89%, up from 88% last year. Operating expenses increased by 4%, driven by investments in our workforce, recent acquisitions, and marketing. Non-GAAP operating income remained strong at $309 million, a 7% year-over-year growth, and the operating margin improved to 47% from 45% last year. This improvement resulted from better margins and favorable FX impacts, particularly relating to the shekel, which was somewhat offset by headwinds from our recent acquisition. Regarding financial income, it reached $18 million this quarter as we continue to benefit from higher interest rates. Our non-GAAP tax rate was approximately 9%, with tax expenses noticeably higher than last year due to tax accounting differences. However, the effective tax rate for the full year remained consistent with 2022. Our non-GAAP net income was $298 million, or $2.57 per diluted share, exceeding our projection by $0.02 and reflecting a 5% growth year-over-year. GAAP net income was $249 million, or $2.15 per diluted share, representing a 2% decline due to increased amortization tied to our recent acquisition of Perimeter 81. As for our cash flow and position, we ended the year with cash balances of $3 billion, consistent with Q3. Our operating cash flow was robust at $236 million for the quarter, up 3% year-over-year. We continued our buyback program, purchasing 2.2 million shares for $313 million at an average price of $142 per share. Now, looking at our 2023 annual performance, total revenues increased by 4% to $2,415 million, while gross profit reached $2,154 million, maintaining a gross margin of 89%. This improvement is attributed to a better supply chain environment compared to 2022. Operating expenses rose by 7% to $1,075 million, reflecting ongoing investments and our recent acquisitions. Our non-GAAP operating income remained strong at $1,079 million, holding a 45% operating margin similar to last year. Looking into 2024, we anticipate a headwind of approximately 2 points to the operating margin due to recent acquisitions, but we also expect benefits from currency fluctuations between the dollar and the shekel, which could provide a tailwind of up to 1 point. Our financial income for the year was $77 million as we leveraged higher interest rates. For 2024, we are estimating incremental financial income of about $1 million each quarter, and our tax expenses for 2023 were $159 million with a non-GAAP tax rate around 14%, consistent with 2022. We expect to maintain a similar effective tax rate in 2024. Our non-GAAP net income grew to $997 million, or $8.42 per diluted share, exceeding the top end of our original projections by $0.02 and indicating a 14% year-over-year growth. GAAP net income for the year was $840 million, or $7.10 per diluted share, reflecting 13% growth year-over-year. For the number of shares in 2024, we anticipate the average diluted share count to decline to approximately 130 million shares, starting at 160 million at the end of 2023 and reducing to around 111 million by year-end. We expect to decrease by about 1.3 million shares each quarter due to our buyback efforts, taking into account the effects of stock price fluctuations. Overall, we had strong results this quarter, with revenues exceeding projections and significant growth in EPS. The acceleration in quarterly and annual subscription revenues highlights the positive performance driven by our Infinity and Harmony Email platforms. We are pleased with the positive turnaround in our business environment during Q4, noted by double-digit growth in new business annualized bookings and strong profitability, achieving a 47% operating margin and 14% EPS growth for 2023. I'll now turn the call over to Gil.”