C3.ai Inc (AI) 2023 Q1 法說會逐字稿

Thank you for standing by, and welcome to the C3 AI First Quarter Fiscal Year 2023 Earnings Call. (Operator Instructions) As a reminder, today's program may be recorded.

感謝您的支持，歡迎參加 C3 AI 2023 財年第一季度財報電話會議。 （操作員說明）提醒一下，今天的節目可能會被錄製。

And now I'd like to introduce your host for today's program, Reuben Gallegos, Vice President, Investor Relations. Please go ahead, sir.

現在我想介紹一下今天的節目主持人，投資者關係副總裁 Reuben Gallegos。請繼續，先生。

Thank you, and good afternoon, and welcome to C3 AI's Earnings Call for the First Quarter of Fiscal Year 2023, which ended July 31, 2022. My name is Reuben, and I'm the Vice President of Investor Relations. With me on the call today is Tom Siebel, Chairman and Chief Executive Officer; and Juho Parkkinen, Chief Financial Officer.

謝謝大家，下午好，歡迎參加 C3 AI 的 2023 財年第一季度財報電話會議，該電話會議於 2022 年 7 月 31 日結束。我叫魯本，是投資者關係副總裁。今天與我通話的是董事長兼首席執行官湯姆·西貝爾；和首席財務官 Juho Parkkinen。

After the market closed today, we issued a press release with details regarding our first quarter results as well as a supplemental to our results, both of which can be accessed through the Investor Relations section of our website at ir.c3.ai. This call is being webcast, and a replay will be available on our IR website following the conclusion of the call.

今天市場收盤後，我們發布了一份新聞稿，其中包含有關我們第一季度業績的詳細信息以及對我們業績的補充，這兩者都可以通過我們網站 ir.c3.ai 的投資者關係部分訪問。本次電話會議正在進行網絡直播，電話會議結束後將在我們的 IR 網站上進行重播。

During today's call, we will make statements related to our business that may be considered forward-looking under federal securities laws. These statements reflect our views only as of today and should not be considered representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For a further discussion of the material risks and other important factors that could affect our actual results, please refer to our filings with the SEC.

在今天的電話會議中，我們將發表與我們的業務相關的聲明，根據聯邦證券法，這些聲明可能被視為具有前瞻性。這些陳述僅反映我們截至今天的觀點，不應被視為代表我們在任何後續日期的觀點。我們不承擔更新任何前瞻性陳述或展望的任何義務。這些陳述受到各種風險和不確定性的影響，可能導致實際結果與預期存在重大差異。有關可能影響我們實際結果的重大風險和其他重要因素的進一步討論，請參閱我們向美國證券交易委員會提交的文件。

Also during the course of today's call, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our press release.

同樣在今天的電話會議中，我們將參考某些非公認會計準則財務指標。我們的新聞稿中包含 GAAP 與非 GAAP 措施的對賬。

Finally, at times in our prepared remarks, in response to your questions, we may discuss metrics that are incremental to our usual presentation to give greater insight into the dynamics of our business or our quarterly results. Please be advised that we may or may not continue to provide this additional detail in the future.

最後，有時在我們準備好的評論中，為了回答您的問題，我們可能會討論與我們通常的演示相比增加的指標，以便更深入地了解我們的業務動態或季度業績。請注意，我們將來可能會或可能不會繼續提供此附加詳細信息。

And with that, let me turn the call over to Tom.

有了這個，讓我把電話轉給湯姆。

Okay. Thank you, Reuben, and thank you all for joining the call today. I want to apologize in advance for the unusual length of my comments today, but there are a number of initiatives, some of which have been in planning for years, some for a few quarters, that are converging at C3 AI, that some of which you will want to understand to fully appreciate the gestalt of the business operations at C3 AI.

好的。謝謝你，魯本，謝謝大家今天加入電話會議。我想提前為我今天的評論冗長而道歉，但是有一些計劃，其中一些已經計劃了多年，一些已經計劃了幾個季度，它們正在 C3 AI 中融合，其中一些您將需要了解以充分了解 C3 AI 業務運營的格式塔。

It is clear that the commentary that we have all been hearing in recent earning announcements about market uncertainty, budget cuts and lengthening sales cycles as the market anticipates economic downturn is real. This was our experience in the last quarter also.

很明顯，我們在最近的盈利公告中聽到的關於市場不確定性、預算削減和隨著市場預期經濟衰退而延長銷售週期的評論是真實的。這也是我們上個季度的經驗。

Our customers and prospects appear to be expecting a recession, and we are seeing customer purchasing behavior consistent with that expectation. It appears to us that this market downturn could be significant. So we have put into place a combination of measures that will allow us to not simply weather this downturn, but to emerge a stronger, more rapidly growing company with greater market share and greater market presence.

我們的客戶和潛在客戶似乎期待經濟衰退，我們看到客戶的購買行為與這種預期一致。在我們看來，這種市場低迷可能很嚴重。因此，我們採取了一系列措施，不僅能夠讓我們度過這次低迷，而且能夠成為一家更強大、發展更快、市場份額更大、市場佔有率更高的公司。

The measures that we have implemented include a restructured, more productive enterprise sales function, an enhancement of our strategic partnering model, several new product offerings, a new consumption-based pricing model and an acceleration of our path to profitability. These measures, in aggregate, will allow us to accelerate sales cycles, accelerate product adoption, increase market share, increase revenue growth and increase profitability. I will explain each of these actions in some detail. But first, I will comment on the financial results and significant developments during the first quarter.

我們實施的措施包括重組、更高效的企業銷售職能、增強我們的戰略合作模式、提供多種新產品、新的基於消費的定價模式以及加速我們的盈利之路。總的來說，這些措施將使我們能夠加快銷售週期、加快產品採用、增加市場份額、增加收入增長並提高盈利能力。我將詳細解釋這些操作中的每一個。但首先，我將評論第一季度的財務業績和重大發展。

Our total revenue of $65.3 million grew 25% year-over-year. This was in line with our guidance. I will comment also that this is the seventh consecutive quarter as a public company that we have met or exceeded revenue guidance. Our subscription revenue for the quarter was $57 million, a growth rate of 24% year-over-year. Subscription revenue represented 87% of total revenue. Services revenue was 13%.

我們的總收入為 6530 萬美元，同比增長 25%。這符合我們的指導。我還要評論說，這是我們連續第七個季度達到或超過收入指導的上市公司。我們本季度的訂閱收入為 5700 萬美元，同比增長 24%。訂閱收入佔總收入的 87%。服務收入為 13%。

Total RPO grew 58% year-over-year to $458.2 million. Our current RPO at the end of the quarter was $173.5 million, nearly 20% growth year-over-year. We signed 31 customer contracts in the quarter and had an average total contract value of $1.4 million as it compared to 24 contracts with an average TCV of $1.9 million in the year ago quarter. This represents a 29% increase in contracts compared to the year ago period.

總 RPO 同比增長 58% 至 4.582 億美元。我們在本季度末的當前 RPO 為 1.735 億美元，同比增長近 20%。我們在本季度簽署了 31 份客戶合同，平均合同總價值為 140 萬美元，而去年同期為 24 份合同，平均 TCV 為 190 萬美元。與去年同期相比，這意味著合同增加了 29%。

We maintained non-GAAP gross profit margins of 81%. Customer growth increased 27% over a year ago and in the quarter with 228 customers. We ended Q1 with $938.2 million in cash and investments. Free cash flow in the quarter was an outflow of $54.8 million. Note please that this included $15 million of CapEx related to the build-out of our new headquarters and $16 million related to a commission payment to Baker Hughes.

我們維持 81% 的非公認會計原則毛利率。客戶增長比一年前和本季度增長了 27%，共有 228 名客戶。我們以 9.382 億美元的現金和投資結束了第一季度。本季度的自由現金流流出 5480 萬美元。請注意，這包括與我們新總部擴建有關的 1500 萬美元資本支出和與向貝克休斯支付佣金有關的 1600 萬美元。

Since going public in December of 2020, C3 AI has spent $245.9 million on R&D to expand our technology leadership. This investment amounted to 59% of revenue. The bulk of this substantial investment was focused on the development of Version 8 of the C3 AI platform, a 4-year engineering effort representing over 1,000-person years of development. It provides our customers order of 10 to 1,000x scalability and performance improvements, that of many new data integrations, new no-code, low-code and deep-code development tools, improved data science tools, and importantly, dramatically improved ease of use, more comprehensive content-sensitive documentation, new integrated development environments, a content-rich distance learning library for remote trading and a 24/7 developer community. The capabilities of C3 AI Version 8 are a carefully planned prerequisite to our important transition to a new consumption-based pricing model that we are announcing today.

自 2020 年 12 月上市以來，C3 AI 已在研發上投入 2.459 億美元，以擴大我們的技術領先地位。這項投資佔收入的 59%。這筆巨額投資的大部分集中在 C3 AI 平台第 8 版的開發上，這是一項歷時 4 年的工程努力，代表了 1,000 多人年的開發。它為我們的客戶提供了 10 到 1,000 倍的可擴展性和性能改進，包括許多新的數據集成、新的無代碼、低代碼和深度代碼開發工具、改進的數據科學工具，重要的是，顯著提高了易用性、更全面的內容敏感文檔、新的集成開發環境、內容豐富的遠程交易遠程學習庫和 24/7 的開發者社區。 C3 AI 版本 8 的功能是我們向今天宣布的新的基於消費的定價模型重要過渡的一個精心計劃的先決條件。

C3 AI has been broadly recognized in the industry for its functional and architectural leadership as, a, if not the premier AI/ML application development platform in the market by Forrester Research, Gartner, Constellation Research, IDC and Bloomberg. In July, Forrester Research named C3 AI a leader in the 2022 Forrester Wave for AI and machine learning platforms. This is a first of its kind comprehensive analysis of enterprise AI and machine learning platforms, highlighting the importance of comprehensive AI/ML platforms like C3 AI as opposed to do-it-yourself widgets to realize business value.

C3 AI 因其在功能和架構上的領先地位而在業界得到了廣泛認可，即使不是 Forrester Research、Gartner、Constellation Research、IDC 和彭博社在市場上領先的 AI/ML 應用程序開發平台，也是如此。 7 月，Forrester Research 將 C3 AI 評為 2022 Forrester Wave 人工智能和機器學習平台的領導者。這是對企業 AI 和機器學習平台的首次全面分析，強調了 C3 AI 等綜合性 AI/ML 平台對實現業務價值的重要性，而不是自己動手的小部件。

Of the 15 vendors evaluated, the Forrester report ranks the C3 AI platform and applications #1 in strategy, #1 in product vision, #1 in application tools, #1 in application accelerators, #1 in market approach, #1 in run time, #1 in architecture security, #1 in data features, #1 in partner ecosystem and #1 in performance. The Forrester report concludes that C3 AI could become, and I quote, "the de facto AI platform standard for the world's most complex industries."

在評估的 15 家供應商中，Forrester 報告將 C3 AI 平台和應用程序評為戰略第一、產品願景第一、應用工具第一、應用加速器第一、市場方法第一、運行時間第一，架構安全性排名第一，數據功能排名第一，合作夥伴生態系統排名第一，性能排名第一。 Forrester 報告的結論是，C3 AI 可能成為，我引用，“世界上最複雜行業的事實上的 AI 平台標準”。

Aside from the new enhanced C3 enterprise AI -- aside from the C3 AI platform and the enhancement of the new applications that we've developed, you can think of as AI-enhanced or predictive ERP, supply chain risk, inventory optimization, process optimization, fraud detection, predictive maintenance, money laundering, et cetera, each with industry-specific versions, our R&D investments resulted in the release of 5 new C3 AI applications since our IPO, each with functional capabilities and addressable market opportunities sufficient to support a stand-alone company.

除了新的增強型 C3 企業 AI——除了 C3 AI 平台和我們開發的新應用程序的增強之外，您可以將其視為 AI 增強或預測性 ERP、供應鏈風險、庫存優化、流程優化、欺詐檢測、預測性維護、洗錢等，每個都有特定行業的版本，我們的研發投資導致自 IPO 以來發布了 5 個新的 C3 AI 應用程序，每個應用程序都具有足夠的功能和可尋址的市場機會來支持一個立場-單獨的公司。

Let's start with C3 AI CRM. This allows customers to make their existing, often very expensive CRM investments instantly predictive. We've been piloting the new C3 AI CRM product with a large professional services company and industrial products company and a large fintech company. The initial results are dramatic. According to Gartner, the CRM market should reach $137 billion in 2025, and we believe C3 AI CRM addresses a significant unmet need in that market.

讓我們從 C3 AI CRM 開始。這使客戶能夠立即預測他們現有的、通常非常昂貴的 CRM 投資。我們一直在與一家大型專業服務公司和工業產品公司以及一家大型金融科技公司一起試用新的 C3 AI CRM 產品。初步結果是戲劇性的。根據 Gartner 的數據，到 2025 年，CRM 市場將達到 1370 億美元，我們相信 C3 AI CRM 解決了該市場未滿足的重大需求。

Let's talk about C3 AI ESG. This enables customers to integrate data from all their ERP, supplier, customer and manufacturing systems, plus relevant exogenous market data, emissions and commodity data and provide comprehensive Scope 1, Scope 2, Scope 3 ESG reporting in compliance with any of the SASB, GRI, TCFD and CDP reporting standards.

我們來談談 C3 AI ESG。這使客戶能夠整合來自其所有 ERP、供應商、客戶和製造系統的數據，以及相關的外部市場數據、排放和商品數據，並提供符合任何 SASB、GRI 的綜合範圍 1、範圍 2、範圍 3 ESG 報告、TCFD 和 CDP 報告標準。

C3 AI ESG, like all C3 applications, is entirely predictive, allowing companies to accurately forecast their ESG KPIs and plan and manage mitigation measures to achieve their corporate ESG objectives. Consistent with our overall partnering strategy, you can expect us to partner with a large global service provider to bring this product to market. According to (inaudible), ESG is estimated to be a $30 billion digital market by 2030.

與所有 C3 應用程序一樣，C3 AI ESG 完全具有預測性，使公司能夠準確預測其 ESG KPI 併計劃和管理緩解措施以實現其企業 ESG 目標。根據我們的整體合作戰略，您可以期待我們與一家大型全球服務提供商合作，將該產品推向市場。據（聽不清）估計，到 2030 年，ESG 將成為一個價值 300 億美元的數字市場。

C3 AI Property Appraisal. Designed to make the needs of state, county and local government, C3 AI Property Appraisal allows real estate appraisers real-time integration of all data sources and the application logic necessary to rapidly complete commercial and residential property appraisals using a multiplicity evaluation technologies, including income capitalization, sales comparables and cost of replacement. Complete evidence packages are provided to defend appraisal protests and adjudication. Initial results suggest this application reduces the time and cost to complete appraisals by an order of magnitude. C3 AI Property Appraisal addresses the needs of over 3,000 U.S. counties at over 19,000 U.S. cities, villages and towns and 50 states.

C3 AI 財產評估。 C3 AI Property Appraisal 旨在滿足州、縣和地方政府的需求，允許房地產評估師實時整合所有數據源和應用邏輯，以使用多重評估技術快速完成商業和住宅物業評估，包括收入資本化、可比銷售額和重置成本。提供完整的證據包以捍衛評估抗議和裁決。初步結果表明，此應用程序將完成評估的時間和成本降低了一個數量級。 C3 AI Property Appraisal 滿足美國 19,000 多個城市、村莊和城鎮以及 50 個州的 3,000 多個縣的需求。

C3 AI Law Enforcement. Derived from our C3 AI Intelligence application developed for the U.S. federal intelligence community, C3 AI Intelligence Analytics for Law Enforcement provides peace officers the ability to apply the power of AI to rapidly investigate crimes. A unified current data image of criminal history, law enforcement records, cell phone tracking, traffic violations, past associations, gang membership, vehicle records, jail records, surveillance images and body camera image footage -- body camera footage, social media and news is embedded in intuitive workflow, employing sophisticated AI/ML techniques to [SurfaceInsight] in near real time. Designed to meet the needs of over 15,000 law enforcement agencies in the U.S. alone, according to the market research firm, MarketsandMarkets, this is expected to be a $22 billion software market in 2026.

C3 人工智能執法。源自我們為美國聯邦情報界開發的 C3 AI 情報應用程序，用於執法的 C3 AI 情報分析使治安人員能夠運用 AI 的力量快速調查犯罪。犯罪歷史、執法記錄、手機跟踪、交通違規、過去的協會、幫派成員、車輛記錄、監獄記錄、監控圖像和隨身攝像機圖像片段的統一當前數據圖像——隨身攝像機片段、社交媒體和新聞是嵌入直觀的工作流程，採用複雜的 AI/ML 技術近乎實時地 [SurfaceInsight]。根據市場研究公司 MarketsandMarkets 的數據，僅在美國就可以滿足 15,000 多個執法機構的需求，預計到 2026 年，軟件市場將達到 220 億美元。

C3 AI Ex Machina. This is a point and click, drag and drop analytics tool that enables business analysts to rapidly apply sophisticated AI/ML techniques and predictive analytics to large data sets. Ex Machina can be used as a stand-alone tool and is fully inoperable with the C3 AI enterprise applications and the C3 AI platform. Ex Machina meets the needs of the rapidly growing citizen data science community. Gartner predicts this is a $14 billion addressable market in 2025.

C3 AI前機械師。這是一個點擊、拖放分析工具，使業務分析師能夠將復雜的 AI/ML 技術和預測分析快速應用於大型數據集。 Ex Machina 可作為獨立工具使用，完全無法與 C3 AI 企業應用程序和 C3 AI 平台一起使用。 Ex Machina 滿足了快速發展的公民數據科學社區的需求。 Gartner 預測，到 2025 年，這是一個價值 140 億美元的潛在市場。

Now in response to your request from the investor community to see C3 AI application demos, we have published demos of these and other applications on our website at this address that show C3 -- basically, c3.ai/applications. These demonstrations are available to you today.

現在，為了響應投資者社區關於查看 C3 AI 應用程序演示的請求，我們在我們的網站上發布了這些和其他應用程序的演示，地址為顯示 C3 的地址——基本上是 c3.ai/applications。這些演示今天可供您使用。

In addition, to provide you even more complete information about these applications and our other applications, we are hosting a C3 AI live demo series starting in September to provide you more in-depth product demonstrations. Registration for these demonstrations opens next Tuesday, and you can register at our IR site at c3.ai.

此外，為了向您提供有關這些應用程序和我們其他應用程序的更完整信息，我們將於 9 月開始舉辦 C3 AI 現場演示系列，為您提供更深入的產品演示。這些演示的註冊將於下週二開始，您可以在我們的 IR 網站 c3.ai 進行註冊。

Talk a little bit about customer success in the quarter. Our customers continue to be highly successful with their C3 AI applications. Shell, for example, continues to expand the global deployment of its AI applications to deliver cleaner, safer, more reliable energy with less environmental impact. At Shell, we integrate over 1.2 million data streams and monitor over 13,000 pieces of critical equipment in near real time.

談談本季度的客戶成功。我們的客戶在 C3 AI 應用程序方面繼續取得巨大成功。例如，殼牌繼續擴大其人工智能應用程序的全球部署，以提供更清潔、更安全、更可靠的能源，同時減少對環境的影響。在殼牌，我們集成了超過 120 萬個數據流並近乎實時地監控超過 13,000 件關鍵設備。

At the U.S. Missile Defense Agency, they submitted its third order against our 5-year $500 million production OTA agreement that we were awarded in December of 2021. This agreement makes it easy for everybody in DoD to purchase C3 AI products and services.

在美國導彈防禦局，他們根據我們在 2021 年 12 月獲得的為期 5 年、價值 5 億美元的生產 OTA 協議提交了第三份訂單。該協議使國防部的每個人都可以輕鬆購買 C3 AI 產品和服務。

At the U.S. Air Force Rapid Sustainment Office, we continue to expand and scale our efforts to improve aircraft readiness and now have 14 aircraft platforms live on our software platform, including the F-15, F-16, F-18, F-35 Joint Strike Fighter, C-5 Galaxy, KC-135, Black Hawk helicopter and others. Our results for the B-1B bomber demonstrate the capability increase, daily mission-ready capability, by 22% to 27%. The value of this may be incalculable. For those of you who are interested, go look up the B-1B bomber on Wikipedia. This is a very cool supersonic aircraft. And basically, we were able to increase the number of aircraft that are available in any given day by order of 25%. This is a big deal.

在美國空軍快速維持辦公室，我們繼續擴大和擴大我們的努力以提高飛機的戰備狀態，現在我們的軟件平台上有 14 個飛機平台，包括 F-15、F-16、F-18、F-35聯合攻擊戰鬥機、C-5 Galaxy、KC-135、黑鷹直升機等。我們對 B-1B 轟炸機的研究結果表明，其能力提高了 22% 至 27%，即每日任務就緒能力。這個價值可能是無法估量的。對於那些感興趣的人，去維基百科上查找 B-1B 轟炸機。這是一架非常酷的超音速飛機。基本上，我們能夠將任何一天的可用飛機數量增加 25%。這是一個大問題。

We expect -- as a result of this, we expect to see significant licensing expansion of this program in the coming year, leveraging the $100 million and $500 million ATO contract vehicles that we had been awarded to expand this AI predictive maintenance application across many additional aircraft platforms.

我們預計——因此，我們預計該計劃的許可在來年將得到顯著擴展，利用我們獲得的 1 億美元和 5 億美元的 ATO 合同工具，將這一人工智能預測性維護應用程序擴展到許多其他領域飛機平台。

Let's talk about our partnering models. We further expanded and deepened our highly productive strategic partnership with Google Cloud in Q1. This is a big deal. Under this enhanced strategic partnership, Google Cloud has substantially increased its commitment to C3 AI over the next 3 years to co-sell and co-fund over 100 new C3 AI Tier 1 pilot deployments.

讓我們談談我們的合作模式。我們在第一季度進一步擴大和深化了與 Google Cloud 的高效戰略合作夥伴關係。這是一個大問題。在這一增強的戰略合作夥伴關係下，Google Cloud 在未來 3 年內大幅增加了對 C3 AI 的承諾，以共同銷售和共同資助 100 多個新的 C3 AI 第 1 層試點部署。

Talk about Microsoft. Joint selling activity with Microsoft was brisk in Q1, with over 16 joint selling agreements. Microsoft also funded C3 AI trials to accelerate new customer acquisition. To date, we have closed over $265 million in contracts with Microsoft.

談談微軟。與微軟的聯合銷售活動在第一季度活躍，有超過 16 份聯合銷售協議。微軟還資助了 C3 AI 試驗以加速新客戶的獲取。迄今為止，我們已與 Microsoft 簽訂了超過 2.65 億美元的合同。

We're seeing a significant uptick in joint selling interest from AWS that we expect to continue and to grow in fiscal year '23 and beyond. AWS remains our largest installed base with approximately 56% of our customers running on the AWS cloud.

我們看到來自 AWS 的聯合銷售興趣顯著增加，我們預計這種興趣將在 23 財年及以後繼續增長。 AWS 仍然是我們最大的安裝基礎，我們大約 56% 的客戶在 AWS 雲上運行。

Our strategic partnership with Baker Hughes remains strong. In Q1, C3 AI and Baker Hughes signed one of the largest petrochemical companies in Latin America to license the C3 AI Reliability application. In addition, C3 AI is collaborating with Baker Hughes, Microsoft and Accenture to develop and market a comprehensive industrial asset management solution for clients in the energy and industrial sectors.

我們與貝克休斯的戰略合作夥伴關係依然牢固。第一季度，C3 AI 和貝克休斯簽署了拉丁美洲最大的石化公司之一的 C3 AI Reliability 應用許可。此外，C3 AI 正在與貝克休斯、微軟和埃森哲合作，為能源和工業領域的客戶開發和銷售全面的工業資產管理解決方案。

Now let me make some comments on kind of the overall kind of macro market conditions that we saw last quarter. The fact of the matter is that similar to what we've been hearing from other companies, we saw a significant change in the business environment in the quarter with the lengthening of decision cycles, and that was particularly accelerated in July. In the course of the quarter, we saw 66 forecasted deals move out in the quarter, many of which we would have fully expected to close under normal market conditions. While we expect that the bulk of these transactions will close going forward, it is clear that the decision processes are being subjected to more rigorous budgetary scrutiny and additional levels of approval authority.

現在讓我對我們上個季度看到的整體宏觀市場狀況發表一些評論。事實是，與我們從其他公司聽到的情況類似，隨著決策週期的延長，我們看到本季度的商業環境發生了重大變化，而這種變化在 7 月份尤其加速。在本季度，我們看到 66 筆預計交易將在本季度移出，其中許多交易在正常市場條件下我們完全預期會完成。雖然我們預計這些交易中的大部分將在未來完成，但很明顯，決策過程正在接受更嚴格的預算審查和額外的批准權限。

As a result, we have gotten together with the management team, and we have taken decisive action to address what appears to be a significant global market correction to accelerate business, accelerate profitability and strengthen the company. We are substantially reducing spending that does not directly impact revenue to accelerate our already communicated path to profitability and, importantly, to serve our significant cash resources.

因此，我們與管理團隊齊聚一堂，採取果斷行動來解決似乎是重大的全球市場調整，以加速業務、提高盈利能力並增強公司實力。我們正在大幅減少不會直接影響收入的支出，以加快我們已經傳達的盈利之路，更重要的是，為我們的大量現金資源提供服務。

We have further adjusted our go-to-market model, our partnership model and our pricing model around consumption-based pricing to better meet the needs of our customers and more effectively address the market opportunity in this new economic reality. With $938 million cash and investments in hand, we are well positioned to weather this economic storm.

我們圍繞基於消費的定價進一步調整了上市模式、合作模式和定價模式，以更好地滿足客戶的需求，更有效地把握新經濟現實中的市場機遇。憑藉 9.38 億美元的現金和投資，我們已做好準備度過這場經濟風暴。

Now we have taken action to accelerate our path to profitability and have restructured our pricing model in a manner consistent with SaaS industry standards to accelerate business velocity, increase revenue visibility, increase revenue growth rate and increase profitability. We will emerge from this recession a stronger and more competitive company.

現在，我們已採取行動加快盈利之路，並以符合 SaaS 行業標準的方式重組定價模型，以加快業務速度、提高收入可見度、提高收入增長率並提高盈利能力。我們將從這次衰退中成為一家更強大、更有競爭力的公司。

We have reduced marketing expenses and cut virtually all noncritical expenses. We continue to hire, especially in sales and engineering, and our engineering growth is expanding more rapidly in Guadalajara with its significant cost benefits.

我們減少了營銷費用並削減了幾乎所有非關鍵費用。我們繼續招聘，尤其是在銷售和工程方面，我們的工程增長在瓜達拉哈拉的擴張速度更快，成本效益顯著。

As we enjoy non-GAAP gross margins in excess of 80%, it is a straightforward proposition to reach non-GAAP profitability and cash positivity from normal business operations. As a percent of revenue, we have taken action to target a reduction in marketing expenditures from 29% to 11%. We're reducing R&D expenses just associated with the scale of what we're doing from 44% to 29% of revenue. G&A expenses will be reduced from 15% to 12%. We expect sales -- expenses will increase from 23% to 26% of revenue.

由於我們享有超過 80% 的非 GAAP 毛利率，因此從正常業務運營中實現非 GAAP 盈利能力和現金積極性是一個直截了當的提議。作為收入的百分比，我們已採取行動將營銷支出從 29% 減少到 11%。我們正在將與我們正在做的事情的規模相關的研發費用從收入的 44% 減少到 29%。 G&A 費用將從 15% 降至 12%。我們預計銷售額——費用將從收入的 23% 增加到 26%。

While we are not providing guidance to this effect, we currently expect to obtain non-GAAP profitability and positive cash generation from normal operations by the end of fiscal year '24. During the same period, absent any extraordinary events, we do not expect our cash and investment balances to fall below $700 million.

雖然我們沒有為此提供指導，但我們目前預計到 24 財年末將獲得非 GAAP 盈利能力和正常運營產生的正現金。在同一時期，如果沒有任何特殊事件，我們預計我們的現金和投資餘額不會低於 7 億美元。

Now I want to talk about our sales force. In our Q2 fiscal year '22 call, I talked about reengineering the profile of the sales organization from a traditional SAP, Oracle, enterprise-like sales software organization to more of an emphasis of organization consisting of highly educated, experienced technical domain experts who are engaged in selling. We have succeeded that task. After an extensive interview and screening process, we hired, trained and continue to meter scores of new high-performance, technically confident technical sales professionals, and their initial progress and promise is impressive.

現在我想談談我們的銷售隊伍。在我們的 22 財年第二季度電話會議中，我談到了將銷售組織的形像從傳統的 SAP、甲骨文、類似企業的銷售軟件組織重新設計為更加強調由受過高等教育、經驗豐富的技術領域專家組成的組織。從事銷售。我們已經完成了這項任務。經過廣泛的面試和篩選過程，我們聘請、培訓並繼續評估新的高性能、技術自信的技術銷售專業人員，他們的初步進展和承諾令人印象深刻。

I want to give you a feel for the composition of this new team that is becoming the fabric and leadership of the new C3 AI sales organization. The average age is 35, all have 1 or more advanced degrees, 67% have MBAs. On average, they have 12 years of work experience. Many were at or near the top of their classes at West Point, the Naval Academy, MIT, Princeton, Illinois, Michigan, Berkeley, Stanford, École Polytechnique, et cetera. They went on to gain technical advanced degrees at the Army War College, MIT, Georgia Tech and Carnegie Mellon. Many continued with MBA from Harvard, Booth, Sloan, [MCA], et cetera. They have commanded F-18 squadrons. They have taught in the top gun school. They have worked at BCG and Bain, (inaudible) Goldman Sachs, Amazon and SpaceX.

我想讓您了解這個新團隊的組成，它正在成為新的 C3 AI 銷售組織的結構和領導力。平均年齡為 35 歲，均擁有 1 個或以上高級學位，67% 擁有 MBA 學位。他們平均有 12 年的工作經驗。許多人在西點軍校、海軍學院、麻省理工學院、普林斯頓大學、伊利諾伊州、密歇根大學、伯克利分校、斯坦福大學、巴黎綜合理工學院等學校都處於或接近班級的前列。他們繼續在陸軍戰爭學院、麻省理工學院、佐治亞理工學院和卡內基梅隆大學獲得技術高級學位。許多人繼續攻讀哈佛、布斯、斯隆、[MCA] 等的 MBA 學位。他們指揮過 F-18 中隊。他們曾在頂尖的槍支學校任教。他們曾在 BCG 和貝恩、（聽不清）高盛、亞馬遜和 SpaceX 工作。

We are providing this team with extensive sales training and ongoing sales metering. This program is exceeding our expectations in every respect, and we will continue to expand this new sales force in the coming quarters. I can assure you, this is a force to be reckoned with.

我們正在為這個團隊提供廣泛的銷售培訓和持續的銷售計量。該計劃在各個方面都超出了我們的預期，我們將在未來幾個季度繼續擴大這支新的銷售隊伍。我可以向你保證，這是一股不可忽視的力量。

Now the C3 AI pricing model, this is important. I want to talk about the switch from subscription-based pricing to consumption-based pricing. This is an important -- this is a secular change in our business. We have been planning it for some years, and it is now enabled by the general availability of C3 AI Version 8 in both the platform and the applications.

現在的 C3 AI 定價模型，這很重要。我想談談從基於訂閱的定價到基於消費的定價的轉變。這很重要——這是我們業務中的長期變化。我們已經計劃了幾年，現在通過平台和應用程序中的 C3 AI 版本 8 的普遍可用性啟用它。

Now the C3 AI pricing model has historically been something of a black swan in the SaaS world. While others, including Snowflake, AWS, Azure, Datadog and Mongo, have been selling based on a low-price inventory, pay-as-you-go, consumption-based pricing model, C3 AI has historically been an anomaly in the SaaS world with a subscription-based pricing model.

現在，C3 AI 定價模型在歷史上一直是 SaaS 世界中的黑天鵝。雖然包括 Snowflake、AWS、Azure、Datadog 和 Mongo 在內的其他公司一直基於低價庫存、即用即付、基於消費的定價模式進行銷售，但 C3 AI 在歷史上一直是 SaaS 世界的異常現象採用基於訂閱的定價模式。

Our sales cycles included lengthy negotiation of what were typically 36-month contractual contracts, including developer license fees, application license fees, data science license fees, professional services and run time fees, with the total initial commitment ranging from $1 million to $35 million or more.

我們的銷售週期包括對通常為 36 個月的合同合同的漫長談判，包括開發者許可費、應用程序許可費、數據科學許可費、專業服務和運行時間費，初始承諾總額從 100 萬美元到 3500 萬美元不等，或更多的。

Now these customer commitments typically expanded over time in $1 million, $5 million or even $50 million increments as our customers achieve success. And we've been able to command these types of customer commitments in the past decade because of the substantial customer value that our products and services generated sometimes on the order of billions of dollars a year in economic benefit.

現在，隨著我們的客戶取得成功，這些客戶承諾通常會隨著時間的推移以 100 萬美元、500 萬美元甚至 5000 萬美元的增量增加。在過去的十年中，我們能夠實現這些類型的客戶承諾，因為我們的產品和服務有時會產生每年數十億美元的經濟效益，為客戶創造巨大價值。

This pricing model has allowed us to attain 228 customers, realize a 38% revenue growth rate in fiscal year '22 and achieve a compound annual growth rate of 40% for revenue from fiscal year '19 through fiscal year '22. The downside has been more lumpiness than we would like to see in bookings, lengthy sales cycles and higher levels of uncertainty associated with individual deal closure in period. While this elephant hunting subscription sales model has served us well in establishing C3 AI as a leader in enterprise AI, it is clear that it is not well suited to the deliberate decision and approval processes inherent in the current economic environment.

這種定價模式使我們能夠獲得 228 名客戶，在 '22 財年實現 38% 的收入增長率，並在 '19 財年至 '22 財年實現 40% 的收入複合年增長率。不利的一面是預訂量比我們希望看到的更多，銷售週期長，以及與期間個別交易關閉相關的不確定性更高。雖然這種大象狩獵訂閱銷售模式在將 C3 AI 確立為企業 AI 的領導者方面為我們提供了良好的服務，但很明顯，它不太適合當前經濟環境中固有的深思熟慮的決策和審批流程。

With the completion of C3 AI Version 8, this is the ideal time for us to adopt a consumption-based pricing model, partner model and sales model that will allow our customers a low-cost point of entry and pay-as-you-go expanded usage pricing. Our new consumption pricing model brings us in line with what we believe is becoming the accepted standard in enterprise SaaS application software pricing.

隨著 C3 AI 版本 8 的完成，這是我們採用基於消費的定價模式、合作夥伴模式和銷售模式的理想時機，這將為我們的客戶提供低成本的切入點和按需付費擴大使用定價。我們新的消費定價模型使我們符合我們認為正在成為企業 SaaS 應用軟件定價的公認標準。

The sales motion now begins with a 6-month pilot project during which the customer will bring its first C3 AI enterprise application into production use. After the initial 6 months, ongoing pricing is simply $0.55 per CPU hour. The cost of entry is low, the business decision to move forward is easy, the protracted acquisition deliberation process is avoided.

現在，銷售動議從為期 6 個月的試點項目開始，在此期間，客戶將把其第一個 C3 AI 企業應用程序投入生產使用。在最初的 6 個月之後，持續定價僅為每 CPU 小時 0.55 美元。進入成本低，向前推進的業務決策容易，避免了冗長的收購審議過程。

While the initial revenue ramp will be slower from each new customer, considering the substantial increase in the number of new customers, we expect to see a substantial increase in revenue and revenue growth rates after 3 to 4 quarters. We believe this will be further accelerated by increased effectiveness of our joint partner selling model and especially by our new agreement with Google Cloud to co-sell and fund 50% of the cost of over 100 Tier 1 new customer engagements, making it quite easy for new customers to adopt C3 AI applications.

雖然每個新客戶的初始收入增長將放緩，但考慮到新客戶數量的大幅增加，我們預計 3 至 4 個季度後收入和收入增長率將大幅增長。我們相信，通過提高我們的聯合合作夥伴銷售模式的有效性，特別是通過我們與 Google Cloud 的新協議，共同銷售和資助 100 多個 1 級新客戶參與成本的 50%，這將進一步加速這一進程，從而使新客戶採用 C3 AI 應用程序。

Now without providing guidance, for modeling purposes only, we will assume that each onboarded sales rep can close average of 4 new customer pilot engagements per year. We assume that 70% of pilots will convert into production use. We estimate customer attrition at 10% a year. We believe the new pilot will generate, on average, $80,000 per month for 6 months and then initially $70,000 per month in consumption fees growing as actual usage increases.

現在，在不提供指導的情況下，僅出於建模目的，我們假設每個入職銷售代表每年平均可以完成 4 個新的客戶試點項目。我們假設 70% 的試點將轉化為生產用途。我們估計客戶流失率為每年 10%。我們相信，新試點將在 6 個月內平均每月產生 80,000 美元，然後隨著實際使用量的增加，最初的每月消費費用將增加 70,000 美元。

Assume that we have an average of 60 sales professionals in Q2 and that sales headcount will grow at 10% per quarter, if you run these models out 8 to 12 quarters, you will find that revenue flattens for 3 quarters and then rapidly accelerates in fiscal year '24 and beyond to growth rates in the top decile of the SaaS software universe.

假設我們在第二季度平均有 60 名銷售專業人員，並且銷售人數將以每季度 10% 的速度增長，如果您將這些模型運行 8 到 12 個季度，您會發現收入在 3 個季度內持平，然後在財政年度迅速加速24 年及以後，增長率在 SaaS 軟件領域的前十分位。

Our new consumption model aligns well with our partners Baker Hughes, Google Cloud, Microsoft Azure, Amazon Web Services and fits perfectly with the hyperscaler marketplaces and their pricing models. Combining the effectiveness of our new sales organization, the consumption-based pricing model, the power of the Google Cloud joint sales and pilot funding program and our other important marketing partnerships, we expect a substantial increase in new customers and associated increase in SaaS revenue, revenue growth rate and market share.

我們的新消費模式與我們的合作夥伴 Baker Hughes、Google Cloud、Microsoft Azure、Amazon Web Services 非常吻合，並且與超大規模市場及其定價模式完美契合。結合我們新銷售組織的有效性、基於消費的定價模式、Google Cloud 聯合銷售和試點資助計劃的力量以及我們其他重要的營銷合作夥伴關係，我們預計新客戶將大幅增加，SaaS 收入也會隨之增加，收入增長率和市場份額。

Like other companies that have transitioned from perpetual licensing to subscription licensing or subscription consumption licensing, including, for example, Adobe, Mongo, New Relic and Elastic, the near-term impact on revenue and RPO will be negative. But after 3 or 4 quarters, we expect it to become highly accretive to revenue and RPO.

與其他已從永久許可過渡到訂閱許可或訂閱消費許可的公司一樣，包括 Adobe、Mongo、New Relic 和 Elastic，近期對收入和 RPO 的影響將是負面的。但在 3 或 4 個季度之後，我們預計它將極大地增加收入和 RPO。

The near-term effect of new customer cap will be quite positive (inaudible) and our prospects, and we are confident that this will significantly

新客戶上限的近期影響將是非常積極的（聽不清），我們的前景，我們相信這將顯著

(technical difficulty)

（技術難度）

processing model against actual revenue that we realized from a number of representatives, C3 AI customers, over the first -- over their initial 10 quarters, and we find it to be license revenue-neutral across that customer-listed aggregate.

根據我們從許多代表（C3 AI 客戶）在第一個季度（在他們最初的 10 個季度）中實現的實際收入的處理模型，我們發現它在該客戶列出的匯總中是許可收入中性的。

We can see -- for example, this -- I thought there were kind of 3 slides that were going to happen here, but I guess it didn't work that way. Okay. We can see that this is -- okay, so this shows -- the orange line shows our cumulative subscription revenue that we get from 10 actual customers over their first 10 quarters. This amounts to -- initially, it was $60 million in bookings. And when you put the additional bookings that each did over these 10 quarters, I think it's $214 million in bookings, and in aggregate, adds up to $41 million in revenue.

我們可以看到--例如，這個-- 我認為這裡會出現3 張幻燈片，但我想它不是那樣工作的。好的。我們可以看到這是 - 好的，所以這顯示 - 橙色線顯示了我們在前 10 個季度從 10 個實際客戶那裡獲得的累積訂閱收入。這相當於——最初，預訂額為 6000 萬美元。如果你算上這 10 個季度中每個人的額外預訂量，我認為這是 2.14 億美元的預訂量，加起來總計 4100 萬美元的收入。

Now using this new consumption-based pricing model, it's basically like revenue-neutral, except that we didn't have to close -- it's revenue-neutral, except basically we had to close 10 $0.5 million deals, and after that, it's 55% per CPU hour. So it avoids the -- having to close $60 million in initial deals and then $1 million, $5 million, $10 million, $25 million, $50 million incremental deals to get $210 million in bookings. And people, in this market environment, I'm telling you, closing a $50 million deal with any multibillion-dollar corporation, it has to go to the Board. So you could play this game in the last decade, we played it very well, but that game is over.

現在使用這種新的基於消費的定價模型，它基本上就像收入中性，除了我們不必完成——它是收入中性的，除了基本上我們必須完成 10 筆 50 萬美元的交易，然後是 55每個 CPU 小時的百分比。因此，它避免了——必須先完成 6000 萬美元的初始交易，然後再完成 100 萬美元、500 萬美元、1000 萬美元、2500 萬美元、5000 萬美元的增量交易，才能獲得 2.1 億美元的預訂。人們，在這種市場環境下，我告訴你，與任何價值數十億美元的公司達成 5000 萬美元的交易，都必須提交給董事會。所以你可以在過去十年裡玩這個遊戲，我們玩得很好，但是那個遊戲已經結束了。

So now we have a pricing model that we think meets the market needs quite well. So basically, we get the same level of revenue, closing 10 deals for $0.5 million, and we have to keep the customers happy. Bottom line, we are running a leaner company with a faster path to profitability. We are conserving cash. We got lucky, really, and this availability of Version 8 happen to coincide with the market downturn, enabling us to shift to this consumption-based pricing and partnering model really at an opportune time.

所以現在我們有了一個我們認為可以很好地滿足市場需求的定價模型。所以基本上，我們獲得了相同水平的收入，以 50 萬美元完成了 10 筆交易，我們必須讓客戶滿意。歸根結底，我們經營的是一家更精簡的公司，擁有更快的盈利途徑。我們正在節省現金。我們真的很幸運，第 8 版的推出恰逢市場低迷，使我們能夠真正適時轉向這種基於消費的定價和合作模式。

Growth, we -- as we can see, growth will be slower, this is the blue line -- the orange line shows basically where your analyst projections were for the company growth kind of in the next 12 quarters. And we're going to see -- the blue line is the shift to consumption-based revenue. Revenue flattens out in the short term because we're doing $0.5 million deals instead of $50 million deals. But then as the number of customers increases, about 3 or 4 quarters out, we cross to a dramatically accelerated revenue growth rate. And so we expect to see growth will be -- fall for the next few quarters, and then we expect to see rapid revenue growth, increased customer count and increased profitability in fiscal year '24 and beyond. When this economic turmoil has subsided, C3 AI will emerge stronger, bigger, more profitable, with greater market share.

增長，我們——正如我們所看到的，增長會更慢，這是藍線——橙色線基本上顯示了你的分析師對未來 12 個季度公司增長的預測。我們將看到——藍線是轉向以消費為基礎的收入。收入在短期內趨於平緩，因為我們正在進行 50 萬美元的交易，而不是 5000 萬美元的交易。但隨著客戶數量的增加，大約 3 或 4 個季度後，我們的收入增長率將大幅加快。因此，我們預計未來幾個季度的增長將下降，然後我們預計在 24 財年及以後的財政年度將看到收入快速增長、客戶數量增加和盈利能力增加。當這場經濟動蕩平息後，C3 AI 將變得更強大、更大、更有利可圖，擁有更大的市場份額。

Turning to guidance. As mentioned, we expect a short-term negative impact on our revenue growth as a result of the new consumption model, and our guidance takes that into consideration. The model suggests that -- the model also suggests, when you run the model, if you run the model, you're getting the right -- with the assumptions that we have provided, you see that the ball anticipates a dramatic acceleration of revenue growth and profitability in fiscal '24 and beyond. As such, our Q2 '23 total revenue is expected to be in the range of $60 million to $62 million. Our total fiscal year '23 revenue is expected to be in the range of $255 million to $270 million. For fiscal year '24 and beyond, we expect revenue growth will revert to historical annual growth rates -- to be more in line with our historical annual growth rate, and actually, we expect them to be significantly in excess of 30%.

轉向指導。如前所述，我們預計新的消費模式將對我們的收入增長產生短期負面影響，我們的指引也考慮到了這一點。該模型表明——該模型還表明，當你運行模型時，如果你運行模型，你就做對了——根據我們提供的假設，你會看到球預計收入會急劇增加'24 財年及以後的增長和盈利能力。因此，我們 23 年第二季度的總收入預計在 6000 萬美元到 6200 萬美元之間。我們 23 財年的總收入預計在 2.55 億美元至 2.7 億美元之間。對於 24 財年及以後，我們預計收入增長將恢復到歷史年增長率——更符合我們的歷史年增長率，實際上，我們預計它們將大大超過 30%。

Now I'll turn the call over to my colleague, Juho, to talk -- to provide more color on the financial results of the quarter. Juho?

現在我將把電話轉給我的同事 Juho 來談談——為該季度的財務業績提供更多色彩。朱霍？

Thank you, Tom. I want to provide a brief recap of our financial results. All figures will be discussed on a non-GAAP basis unless otherwise noted.

謝謝你，湯姆。我想簡要回顧一下我們的財務業績。除非另有說明，否則所有數據都將在非公認會計原則的基礎上進行討論。

As Tom mentioned, we ended the quarter with revenue of $65.3 million, which represents a 25% year-over-year growth. Subscription revenue increased by a solid 24%, contributing 87% of total revenues. Gross profit increased 29% to $52.6 million, and gross margin increased 260 basis points to 80.6%. Operating loss improved $7.3 million year-over-year, while operating loss margin improved from negative 42% to negative 22%.

正如湯姆所說，我們在本季度末的收入為 6530 萬美元，同比增長 25%。訂閱收入增長了 24%，佔總收入的 87%。毛利潤增長 29% 至 5260 萬美元，毛利率增長 260 個基點至 80.6%。營業虧損同比減少 730 萬美元，而營業虧損率從負 42% 提高到負 22%。

Our customer count increased by 27% year-over-year to 228, and we closed 31 deals during the quarter. This reflects a nice increase in our band of less than 1 million deals, which grew at 44% year-over-year. We made progress on our path towards lower average total contract value, or TCV, with an average TCV of $1.4 million in the first quarter, down from $2.9 million in the sequential fourth quarter. This gives us further conviction that transitioning to smaller contract sizes and expanding our go-to-market strategy to include smaller deal values is the right way to engage new customers.

我們的客戶數量同比增長 27% 至 228 家，我們在本季度完成了 31 筆交易。這反映了我們不到 100 萬筆交易的大幅增長，同比增長 44%。我們在降低平均總合同價值（TCV）的道路上取得了進展，第一季度的平均總合同價值為 140 萬美元，低於第四季度的 290 萬美元。這使我們進一步相信，過渡到較小的合同規模並擴大我們的市場進入戰略以包括較小的交易價值是吸引新客戶的正確方式。

Now turning to our RPOs and bookings. We reported non-GAAP remaining performance obligations of $496.8 million, which is up 39% from last year. We were especially happy to see further diversity in our bookings by industry. High tech increased to 46% of bookings.

現在轉向我們的 RPO 和預訂。我們報告的非公認會計原則剩餘履約義務為 4.968 億美元，比去年增長 39%。我們特別高興地看到我們按行業進行的預訂進一步多樣化。高科技佔預訂量的比例增加到 46%。

Turning to cash flow. Free cash flow for the quarter was an outflow of $54.8 million. About $15 million was used for the build-out of our new headquarters. In addition, we had a commission payment to Baker Hughes of $16 million. Normalizing for these 2 payments, our adjusted free cash flow was an outflow of $23.8 million. As a reminder, this will not be a meaningful factor impacting our path to profitability because the impact will be amortized over the term of the lease.

轉向現金流。本季度的自由現金流流出 5480 萬美元。大約 1500 萬美元用於建造我們的新總部。此外，我們還向貝克休斯支付了 1600 萬美元的佣金。將這 2 筆付款正常化後，我們調整後的自由現金流為 2380 萬美元。提醒一下，這不會是影響我們盈利之路的有意義的因素，因為該影響將在租賃期內攤銷。

Regarding our transition to a consumption pricing model, we have provided a set of assumptions that are intended to assist you in modeling the future potential revenue for the company. Please refer to the attachment that is downloadable on our website after the call.

關於我們向消費定價模型的過渡，我們提供了一組假設，旨在幫助您對公司未來的潛在收入進行建模。通話後請參閱可在我們網站上下載的附件。

We're keenly focused on executing against our path to profitability. As the creator of the enterprise AI space, we have made significant investments in branding and marketing from the start. As we have now successfully built a strong brand in the marketplace, we're comfortable reducing our investments there.

我們非常專注於執行我們的盈利之路。作為企業 AI 空間的創造者，我們從一開始就在品牌和營銷方面進行了大量投資。由於我們現在已經成功地在市場上建立了一個強大的品牌，我們可以放心地減少我們在那裡的投資。

We have always been focused on delivering long-term sustainable profitable growth for our shareholders, and we're pleased to be able to accelerate our path to profitability with our transition to a consumption-based model.

我們一直專注於為我們的股東提供長期可持續的盈利增長，我們很高興能夠通過向基於消費的模式過渡來加速我們的盈利之路。

With these remarks, I would like to open this up for questions. Operator?

有了這些評論，我想打開這個問題。操作員？

(Operator Instructions) And our first question comes from the line of Pat Walravens from JMP Securities.

（操作員說明）我們的第一個問題來自 JMP 證券公司的 Pat Walravens。

So if you look at fiscal '23, you took revenue down $50 million at the midpoint. How much of that is because of the consumption model? And how much of it is because the business is slower?

因此，如果您查看 23 財年，您的收入在中點減少了 5000 萬美元。其中有多少是因為消費模式？有多少是因為業務較慢？

Good question, Pat. First of all, there is no question that business is slowing out the market. But it doesn't matter, if we had done this -- made this change at any growth rate, revenue would have flattened, just like when -- as companies switch from professional licensing models to subscription models. So the growth rate is absolutely -- the change in growth rate is absolutely driven by the change in pricing models. Instead of doing $5 million, $10 million, $25 million, $50 million transactions, a few of them were out doing a lot of $0.5 million transactions. But when you run the model, there is no way this does not flatten revenue for a few quarters.

好問題，帕特。首先，毫無疑問，業務正在放緩市場。但沒關係，如果我們這樣做了——以任何增長率做出這種改變，收入就會變平，就像公司從專業許可模式轉向訂閱模式一樣。所以增長率是絕對的——增長率的變化絕對是由定價模型的變化驅動的。他們中的一些人沒有進行 500 萬美元、1000 萬美元、2500 萬美元、5000 萬美元的交易，而是進行了大量 50 萬美元的交易。但是，當您運行該模型時，這不可能不使幾個季度的收入持平。

Juho, do you have anything to add?

Juho，你有什麼要補充的嗎？

No, I think Tom summarized it perfectly.

不，我認為湯姆完美地總結了它。

Okay. So I mean let's say you'd stuck with the old model, what would guidance have been like?

好的。所以我的意思是，假設您堅持使用舊模型，指導會是什麼樣的？

Honestly, I think trying to sell $10 million, $20 million, $30 million, $50 million, $60 million transactions in the next year could be pretty tough, Pat. I mean (inaudible) large chemical companies, manufacturing companies, food companies, I mean these guys are all going to the bunkers. They're preparing for a recession.

老實說，我認為試圖在明年賣出 1000 萬美元、2000 萬美元、3000 萬美元、5000 萬美元、6000 萬美元的交易可能會非常艱難，Pat。我的意思是（聽不清）大型化工公司、製造公司、食品公司，我的意思是這些人都去地堡了。他們正在為經濟衰退做準備。

Okay. And what drove RPO -- I mean RPO is actually -- I think we were looking for $420 million, it was $458 million. What drew that? Or what drove that?

好的。是什麼推動了 RPO——我的意思是 RPO 實際上是——我認為我們正在尋找 4.2 億美元，這是 4.58 億美元。是什麼畫的？或者是什麼驅動了它？

I mean we still had pretty good -- we still had lots of deal activity during the quarter, and that's a natural increase on the total RPO every time we do one of those bookings. But I think, Pat, one of the things that we're very excited about is the current RPO increase sequentially. So that further highlights...

我的意思是我們仍然有很好的 - 我們在本季度仍然有很多交易活動，這是每次我們進行其中一個預訂時總 RPO 的自然增長。但我認為，Pat，我們非常興奮的一件事是當前的 RPO 連續增加。因此，進一步強調...

What drove it is basically 66 deals out of the quarter. Again, that's why RPO is less of a number that we've got. I mean if you close them, it'd be in our (inaudible).

推動它的基本上是本季度的 66 筆交易。同樣，這就是 RPO 比我們擁有的數量少的原因。我的意思是，如果您關閉它們，它會在我們的（聽不清）中。

No, you guys [beat].

不，你們[擊敗]。

Yes, on the non-GAAP RPO, yes.

是的，在非 GAAP RPO 上，是的。

Non-GAAP RPO?

非公認會計原則 RPO？

Yes. Yes. He's right on that. Yes.

是的。是的。他是對的。是的。

Yes, you [beat]. So I'm just wondering, was there something big with Google or something that had a 10-year term or something like that, that helped drive that number?

是的，你[擊敗]。所以我只是想知道，谷歌是否有什麼大不了的，或者有 10 年任期之類的東西，這有助於推動這個數字？

No. I mean we had normal business activities in the quarter.

不，我的意思是我們在本季度有正常的業務活動。

Juho, go back and show the deal. It's really -- there's no big -- just go back up and show the -- there it is, Pat.

Juho，回去展示交易。真的 - 沒有什麼大的 - 只是回去展示 - 就是這樣，帕特。

So most of what you see here, Pat, we have lots of activity in the $1 million range, which we're very excited about, and we only had 1 larger deal in the quarter in excess of $7 million.

所以你在這裡看到的大部分內容，帕特，我們在 100 萬美元的範圍內有很多活動，我們對此感到非常興奮，而且我們在本季度只有 1 筆超過 700 萬美元的大宗交易。

Okay. And then last question. So are there any layoffs as part of the cost reductions?

好的。然後最後一個問題。那麼，作為降低成本的一部分，是否有裁員？

No.

不。

No.

不。

Our next question comes from the line of Sanjit Singh from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Sanjit Singh。

This is Jian for Sanjit. So I wanted to dig a little bit into the shift to consumption pricing and especially sort of on the installed base side. So I mean you talked a lot about kind of the new customers. But I was wondering about the adoption with existing customers and sort of what you're expecting over what period of time the installed base would transition to a consumption model. And especially for long-term contracts, could we see those transitions during contract terms or just upon renewal?

這是Sanjit的Jian。因此，我想深入探討向消費定價的轉變，尤其是在安裝基數方面。所以我的意思是你談了很多關於新客戶的種類。但我想知道現有客戶的採用情況，以及您對安裝基礎將在多長時間內過渡到消費模式的期望。特別是對於長期合同，我們能否在合同條款期間或僅在續籤時看到這些過渡？

And then maybe a second one for Juho. So what really are the metrics to track here going forward to understand how demand is or how the business is executing among the shift to consumption pricing? If you could maybe shed some light into sort of what KPIs become more or less relevant as we're moving to the consumption model, that would be great.

然後可能是 Juho 的第二個。那麼，為了了解需求如何或業務在向消費定價轉變中的執行情況，真正需要跟踪的指標是什麼？如果您可以闡明隨著我們轉向消費模型而變得或多或少相關的 KPI，那就太好了。

Regarding -- let me handle the existing contracts. I think that the existing contracts will not be shifting to this model. And most of these contracts are so big now. And some of them are now in aggregate over $100 million. And when you look at all the collections in terms of conditions that they have, they're actually more favorable than this pricing model. And so I don't think they're going to want to switch to this. As they renew, when they come up for renewal, they can switch to this if they want and work this out at the time. Juho, you want to talk about KPIs? Certainly, new customers is going to be an important one.

關於——讓我處理現有的合同。我認為現有的合同不會轉向這種模式。現在這些合同中的大多數都如此之大。其中一些現在總計超過 1 億美元。而且，當您根據所擁有的條件查看所有系列時，它們實際上比這種定價模式更有利。所以我認為他們不會想要切換到這個。當他們更新時，當他們提出更新時，如果他們願意，他們可以切換到這個，並在當時解決這個問題。 Juho，你想談談KPI嗎？當然，新客戶將是一個重要的客戶。

Yes, absolutely. So thank you, Jian, for the question. I think one of the things that should give you a lot of guidance on this is if you look at our slide deck and we listed some of the assumptions, those would be good things to track, but certainly, new customers and then revenue because, of course, consumption itself will be recorded as revenue for those periods. So that will be one of the most important KPIs that we'll be providing in the future, of course.

是的，一點沒錯。所以，謝謝你，簡，這個問題。我認為應該給你很多指導的一件事是，如果你看一下我們的幻燈片，我們列出了一些假設，這些都是值得跟踪的好東西，但肯定是新客戶，然後是收入，因為，當然，消費本身將被記錄為這些時期的收入。當然，這將是我們將來提供的最重要的 KPI 之一。

(Operator Instructions) Our next question comes from the line of Pinjalim Bora from JPMorgan.

（操作員說明）我們的下一個問題來自摩根大通的 Pinjalim Bora。

This is (inaudible) on for Pinjalim. Can you update us on what you are seeing with respect to Ex Machina? And is that resonating with the customers?

對於 Pinjalim，這是（聽不清）。你能告訴我們你對 Ex Machina 的看法嗎？這是否引起了客戶的共鳴？

I'm not sure what Ex Machina data that we have. We did a couple of large -- we did 1 large agreement with Ex Machina. It's -- I just don't have a statement for it. Do you have a statement here for Ex Machina?

我不確定我們擁有哪些 Ex Machina 數據。我們做了幾個大的——我們和 Ex Machina 做了一個大的協議。這是——我只是沒有任何聲明。你有關於 Ex Machina 的聲明嗎？

No, not specifics like that. I think the 1 deal that was on during the quarter was a more important one.

不，不是那樣的細節。我認為本季度進行的第一筆交易更為重要。

So the large insurance company that licensed it.

因此，許可它的大型保險公司。

And the other one is an industrial manufacturing (inaudible).

另一個是工業製造（聽不清）。

Let us do this. So Reuben, let's prepare some detailed information and follow up on this. We just don't have it here. So we'll do all that with you and we'll get you all the details.

讓我們這樣做。所以魯本，讓我們準備一些詳細的信息並跟進。我們這裡沒有。因此，我們將與您一起完成所有這些工作，並為您提供所有詳細信息。

Okay. Got it. And then 2Q is your largest second quarter considering alliance with your fiscal year end. How are you seeing the pipeline build on that? And is there any sign of slowdown on the federal side that you are noticing?

好的。知道了。考慮到與您的財政年度結束結盟，第二季度是您最大的第二季度。您如何看待基於此構建的管道？您是否注意到聯邦方面有任何放緩的跡象？

You're really breaking up. I think as -- how do we see the pipeline? Okay. The pipeline is longer than it's ever been. I can tell you that was one of the partners were discussed, we're currently -- I think this number is right, that we're currently in active discussion on 100 co-sell opportunities with one of the -- currently, 100, that's just with 1 partner. So the pipeline now gets dramatically longer, the number of new customers we expect to increase pretty dramatically. And the pipeline is very long.

你真的要分手了。我認為——我們如何看待管道？好的。管道比以往任何時候都長。我可以告訴你，我們正在討論其中一位合作夥伴，我們目前 - 我認為這個數字是正確的，我們目前正在積極討論 100 個共同銷售機會，其中一個 - 目前是 100 個，這只是與 1 個合作夥伴。因此，現在管道變得越來越長，我們預計新客戶的數量將大幅增加。而且管道很長。

That being said, in the -- as we get into the fall of 2022 with war, famine, inflation and all the weird stuff that's going on, if you have a $10 million, $20 million, $30 million, $40 million or $50 million deal in the pipeline, it's hard to handicap it. It really is. So that's why we're -- we've been anticipating doing this for some years. And now with Version 8, we're ready. And so we're pulling the trigger and we're going.

話雖如此，當我們進入 2022 年秋季，戰爭、飢荒、通貨膨脹和所有正在發生的奇怪事情時，如果你有 1000 萬美元、2000 萬美元、3000 萬美元、4000 萬美元或 5000 萬美元的交易在管道中，很難阻礙它。確實如此。所以這就是為什麼我們 - 我們多年來一直期待這樣做。現在有了版本 8，我們準備好了。所以我們扣動扳機，我們要走了。

Our next question comes from the line of Brad Sills from Bank of America.

我們的下一個問題來自美國銀行的 Brad Sills。

I wanted to ask about some -- just color on some of those 66 deals that pushed out. What are your thoughts on -- I know there are a lot of moving parts with the macro right now, pricing changes, partner model changes, but any visibility as to timing there, when those might close?

我想問一些問題——只是對那些推出的 66 筆交易中的一些進行著色。你有什麼想法——我知道現在有很多與宏觀有關的部分，定價變化，合作夥伴模式變化，但是關於時間的任何可見性，當這些可能關閉時？

Well, many of them -- it's really a question, Brad. So we're now coming back to them with basically the new pricing model, and it is being very well received. So we think they're very real. We think they're a lot easier to close at $0.5 million than they would have been at $5 million or $10 million. And so that provides a tailwind for our business.

嗯，他們中的許多人——這真的是一個問題，布拉德。因此，我們現在基本上以新的定價模式回歸他們，並且非常受歡迎。所以我們認為它們非常真實。我們認為以 50 萬美元收盤比以 500 萬美元或 1000 萬美元收盤要容易得多。因此，這為我們的業務提供了順風。

And the pricing model, and they've got a number of aspects to it that are really being well received. We used to price per developer. We used to provide per data scientist. Now it's unlimited developers, unlimited data scientists. For the first 6 months, it's unlimited run time. And so we've kind of taken out all the obstacles that were there. And if you get somebody to sign up for $0.5 million pilot for 6 months, it's not difficult.

還有定價模式，他們有很多方面確實很受歡迎。我們過去按開發商定價。我們曾經為每個數據科學家提供。現在是無限的開發人員，無限的數據科學家。前 6 個月，運行時間不受限制。所以我們已經消除了那裡的所有障礙。如果你讓某人簽下 50 萬美元的試點，為期 6 個月，這並不難。

And then the decision to go forward, you keep it, you pay 35% per CPU hour, doesn't need to go to the Board, doesn't need to go to the audit committee, doesn't need to go to the CFO, any person in the line of business can sign it. So I think that looks very promising.

然後決定繼續前進，你保留它，你為每 CPU 小時支付 35%，不需要去董事會，不需要去審計委員會，不需要去 CFO ，業務範圍內的任何人都可以簽名。所以我認為這看起來很有希望。

Got it. And then 1 more, if I may, please, on just the GAAP RPO, maybe this is 1 for you, Juho, did decline 4% this quarter from last quarter. Was that related to this change to consumption pricing from subscription? Anything you can do to help us unpack just the GAAP number quarter-on-quarter.

知道了。然後再 1 個，如果可以的話，請僅按 GAAP RPO，也許這對你來說是 1 個，Juho，本季度確實比上一季度下降了 4%。這與訂閱消費定價的變化有關嗎？您可以做的任何事情來幫助我們僅按季度計算 GAAP 數字。

Well, I think that's kind of on Tom's opening remarks, that it was a tough quarter. And then also the fact that we had the 66 deals that were pushed out in the quarter. That definitely impacted the sequential decline in RPO. That's the primary driver.

嗯，我認為這有點像湯姆的開場白，這是一個艱難的季度。還有一個事實是，我們在本季度推出了 66 筆交易。這無疑影響了 RPO 的連續下降。這是主要驅動力。

Our next question comes from the line of Michael Vidovic from KeyBanc.

我們的下一個問題來自 KeyBanc 的 Michael Vidovic。

On the Baker Hughes relationship, did you meet targets in the quarter? And have there been any changes to the longer-term targets with that?

關於貝克休斯的關係，你在本季度達到了目標嗎？長期目標是否有任何變化？

Did we meet targets in the quarter? I think we did. Yes, yes, I think we did, Michael, and the relationship with Baker Hughes intimate. I mean I -- and we're in discussion about any number of interesting things, one of which is the relationship that we discussed with Microsoft (inaudible) Baker Hughes and C3 to build a kind of very robust industrial asset management product. So I think we announced that a couple of quarters ago, and that's -- I was just down in Houston working out the details of that. So Baker Hughes is going well.

我們是否達到了本季度的目標？我想我們做到了。是的，是的，我想我們做到了，邁克爾，而且與貝克休斯的關係很親密。我的意思是我——我們正在討論許多有趣的事情，其中之一是我們與微軟（聽不清）貝克休斯和 C3 討論建立一種非常強大的工業資產管理產品的關係。所以我認為我們在幾個季度前宣布了這一點，那是 - 我剛剛在休斯頓研究細節。所以貝克休斯進展順利。

Okay. Great. And then just last one for me. Last quarter, you talked about deals being pushed out into fiscal 1Q and fiscal 2Q, but you said at the time that they were not being retired. Did that play out as you expected? And then were most of those closed this quarter? Or do you see further pushouts?

好的。偉大的。然後是我的最後一個。上個季度，您談到交易被推遲到第一財季和第二財季，但您當時說它們並沒有被淘汰。有沒有像你預期的那樣發揮作用？然後大多數人在本季度關閉了嗎？或者你看到進一步的推出？

No, no. Echo coming through here. Sorry. No, I mean it was -- guys, it was a tough quarter out there. I mean we saw a lot of deals move sideways. All of a sudden, that people who have the approval authority to sign deals in previous quarters, all of a sudden, they didn't have the approval authority to sign deals. And so right now, doing a large multimillion dollar or tens of millions of dollars capital contracts and corporations in any industry in the world is tough.

不，不。迴聲從這里傳來。對不起。不，我的意思是——伙計們，這是一個艱難的季度。我的意思是我們看到很多交易橫盤整理。一下子，那些有前幾個季度簽單權限的人，一下子就沒有了簽單權限。所以現在，在世界上任何一個行業裡，做數百萬美元或數千萬美元的大型資本合同和公司都是困難的。

And everything that we're hearing about in every conference call on CNB -- or every report on CNBC in the morning, it's true, guys. People are getting ready for -- they're going into a recession footing. And so we think that what we're doing here is quite timely, and it's going to allow us to power through it. Again, we have almost $1 billion of cash in the bank. I think we are well prepared for this.

伙計們，我們在 CNB 的每次電話會議或 CNBC 早上的每篇報導中聽到的一切都是真的。人們正在為——他們正在進入衰退期做好準備。所以我們認為我們在這裡所做的非常及時，這將使我們能夠通過它。同樣，我們在銀行里有近 10 億美元的現金。我認為我們為此做好了充分的準備。

Our next and final question comes from the line of Gal Munda from Wolfe Research.

我們的下一個也是最後一個問題來自 Wolfe Research 的 Gal Munda。

The first one is just around the new model. Is there -- is it fair to assume that all new contracts, all new deals are going right away into the consumption model? Or would you still kind of allow for exceptions for -- if there was something already in the pipeline for it?

第一個是圍繞新模型。是否有——假設所有新合同、所有新交易都立即進入消費模式是否公平？或者你是否仍然允許例外——如果已經有一些東西在準備中？

Great question. Number one, yes, there are a few contracts that we're closing that -- where the paper is already on the table, and we're just -- and everybody is happy moving forward. Secondly, you can anticipate that we will -- like we have done kind of very large transactions in the past with companies like Baker Hughes, ENGIE, Shell, where somebody will want to go all in, in a big way. And we're reasonable people, and we will sit down with them, and we will negotiate a win-win arrangement that will be based upon some other terms than this consumption-based pricing model.

好問題。第一，是的，我們正在關閉一些合同 - 文件已經擺在桌面上，我們只是 - 每個人都很高興繼續前進。其次，你可以預料到我們會——就像我們過去與貝克休斯、ENGIE、殼牌等公司進行的非常大的交易一樣，有人會想全力以赴。我們是通情達理的人，我們將與他們坐下來，我們將協商一個雙贏的安排，該安排將基於這種基於消費的定價模式以外的其他條款。

And so, no, you won't see -- we'll still see the occasional black swan that comes in here that looks like an 800-pound gorilla and wants to do business in a big way. And we're reasonable people, and we'll find a way to do that.

所以，不，你不會看到——我們仍然會看到偶爾出現的黑天鵝，它看起來像一隻重達 800 磅的大猩猩，想要大做生意。我們是通情達理的人，我們會找到辦法做到這一點。

That makes sense. And then just as a follow-up, you mentioned that within the quarter, there was actually quite a bit of activity. It sounded like maybe from a linearity perspective, that maybe towards the end of the quarter, you saw a lot more kind of issues with closing the deals and some of that hesitance. Is that a fair assessment of the quarter the way that you've seen it? Or was it just the whole quarter was very, very hard?

那講得通。然後作為後續行動，您提到在本季度內，實際上有相當多的活動。聽起來可能從線性的角度來看，可能在本季度末，您在完成交易時看到了更多類型的問題以及一些猶豫。這是對本季度的公平評估嗎？還是只是整個季度都非常非常艱難？

No. I'll be honest with you, we're -- so July was a bracing wind. I mean it really was. It was a bracing headwind in July. And something changed. And something significant changed in July in the world. And I mean there were a number of transactions, everybody that I would have bet my life on with people who I know, with whom we've done business before. And many of them existing -- some existing customers, some not. And I mean -- and they move sideways. And so something happened in July out there that was significant. That's definitely not specific to us. This is a macroeconomic phenomenon that affects -- is going to affect everybody.

不，老實說，我們是——所以七月是一股令人振奮的風。我的意思是確實如此。在 7 月，這是一個令人振奮的逆風。事情發生了變化。 7 月，世界發生了重大變化。我的意思是有很多交易，我願意和我認識的人賭上我的生命，我們以前和他們有過業務往來。其中許多是現有的——一些現有的客戶，一些不是。我的意思是 - 他們橫向移動。所以在 7 月份發生了一件意義重大的事情。這絕對不是我們特有的。這是一種宏觀經濟現象，會影響——將影響每個人。

(Operator Instructions) And this does conclude the question-and-answer session of today's program, as well as today's program. Thank you, ladies and gentlemen, for your participation. You may now disconnect. Good day.

（操作員說明）這確實結束了今天節目的問答環節，以及今天的節目。女士們，先生們，謝謝你們的參與。您現在可以斷開連接。再會。