From a profitability perspective, we expect non-GAAP operating income to be between breakeven and $1 million and adjusted EBITDA to be between $4 million and $5 million. Non-GAAP net income per share is expected to be in the range of a loss of $0.01 to income of $0.02 and based on 44.2 million weighted average shares outstanding. For the full year, we are targeting revenue of $195 million to $198 million, including $3.2 million of overages and approximately $9 million of professional services revenue. From a profitability perspective, we expect non-GAAP operating loss of $3 million to $1 million and adjusted EBITDA to be between $14 million and $16 million. Non-GAAP net loss per share is expected to be in the range of $0.10 to $0.05 based on 45.6 million weighted average shares outstanding.
For the full year, we expect our adjusted EBITDA to convert to free cash flow at between 40% and 50%. Our free cash flow will be between $5.6 million and $8 million for the year. Due to typical seasonal impacts and $1.5 million to $2 million in restructuring expenses, we expect this to be negative in the first quarter and then turn to a positive free cash flow each of the following three quarters. There are a few things to keep in mind with regards to our guidance. First, we expect to see a sequential decline in revenue in the second quarter due to an expected M&A-related customer loss in Asia in Q1. Second, given the longer sales cycles on a large deal pipeline, the lack of a meaningful new channel partner and our uncertainty around the timing of recovery of our add-on business, our guidance does not assume a meaningful contribution from these initiatives.
We remain confident they will positively impact the business over time, but we do not currently have line of sight on the timing. Third, we expect expenses to be down year-over-year as we realize the full benefit of the cost actions taken in 2023 and early this year. Expense linearity will be a little different this year as we expect to see a step up in Q2 due to delaying the timing of annual salary increases and other expenses. As a result, profitability will be seasonally better in the first quarter and seasonally lower in the second quarter and beyond. Lastly, free cash flow will benefit from a continued reduction in CapEx and capitalized software. We had elevated capitalization in 2023 related to product initiatives and our ERP upgrade.
We now expect CapEx and capitalized software to consistently be lower than $3 million per quarter and to be approximately $10 million in 2024, down from $15 million in 2023. To wrap-up, Q4 was a solid finish to the year. We delivered revenue growth, double-digit adjusted EBITDA margins and positive free cash flow. We are progressing well against many of our strategic initiatives, which will benefit the business over time. We are committed to delivering significant profitability and free cash flow improvement this year, while we continue to invest in the future. With that, we will now take your questions.
A – Rob Noreck: [Indiscernible] Securities.
Steve Frankel: Hi good afternoon. Rob, you hinted a little of this in your remarks, but I just wanted to dig into the disconnect between a 6% increase in 12-month backlog and guidance that implies like a 3% decline in subscription revenue, even if you ex out averages. So, what’s behind that? What’s your confidence level in being able to win some of this business in the pipeline? And when do we get to it?
Rob Noreck: Yes, sure. And I think as you think about it, the big piece of the guide is the material loss in Q1 due to M&A activity. And then as I mentioned in the script, we’ve got the large deal sales pipeline, the channel partnership and the rebound of the add-on business that we’re taking a little bit of a view of not trying to guess the timing when those are all going to impact the P&L. Now, as you think about it, we’ve certainly got a number of large deals in the pipeline, and we’re confident that some of those deals will close. As we’ve seen over the last few quarters, though, the timing of that is hard to gauge as we look into the market.
Steve Frankel: Okay. And so you fundamentally believe this is a growth business, I guess, what you’re saying, but you haven’t been able to prove it. Does the — Marc’s been at this a while, does there come to a point where maybe you need to pivot to let’s drive even harder for margins and worry less about growth and just trying to keep revenue flat?
Marc DeBevoise: Yes, understood, Steve. I think we believe we can grow the business with the existing team, infrastructure and type of company that we have. We’re in a growth market. We should be growing. We’re hitting the part of the market we believe we can grow best at, right, the larger part of both the enterprise and media market. So we feel strong that we’re in the right place. That new business growth was very real this past year. It’s the existing customer base that we’re really managing through, especially the $7 million plus decline from overages. I mean that was 80% — roughly 80% of the decline this past year. So, I think our belief is — let’s make sure we are correctly sized to manage the business as it is, right?
Let’s assume it’s roughly flat, but strive for growth in those right areas, and my belief is that we will get there. So, as you said, I’ve been here almost two years, certainly believe we have the capability to grow the business over the long-term. We’re just challenged to call the exact moment at which we make that turn.
