(AI) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the C3 AI Third Quarter Fiscal Year 2023 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，謝謝你的支持。歡迎來到 C3 AI 2023 財年第三季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Reuben Gallegos. Please go ahead.

我現在想把會議交給今天的發言人 Reuben Gallegos。請繼續。

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

謝謝，下午好，歡迎來到 C3 AI 的 2023 財年第三季度財報電話會議，該電話會議於 2023 年 1 月 31 日結束。我叫 Reuben Gallegos，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 Tom Siebel；我們的首席技術官 Ed Abbo；我們的首席財務官 Juho Parkkinen。

After the market closed today, we issued a press release with details regarding our third quarter results as well as the supplemental to our results, both of which can be accessed through our 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 this call.

今天收市後，我們發布了一份新聞稿，其中包含有關我們第三季度業績的詳細信息以及我們業績的補充資料，兩者都可以通過我們網站 ir.c3.ai 的投資者關係部分訪問。此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 網站上提供重播。

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.

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，這些聲明可能被認為是前瞻性的。這些聲明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。我們不承擔任何更新任何前瞻性陳述或展望的義務。這些陳述受各種風險和不確定性的影響，這些風險和不確定性可能導致實際結果與預期存在重大差異。

Before 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. Today, all figures will be discussed on a non-GAAP basis unless otherwise noted. And also after the course of today's call, we will refer to certain non-GAAP financial measures and the reconciliation of GAAP to non-GAAP is included in our press release.

在進一步討論可能影響我們實際結果的重大風險和其他重要因素之前，請參閱我們向美國證券交易委員會提交的文件。今天，除非另有說明，否則所有數據都將在非 GAAP 基礎上進行討論。在今天的電話會議之後，我們將參考某些非 GAAP 財務措施，我們的新聞稿中包含 GAAP 與非 GAAP 的調節。

Finally, at times in our prepared remarks, in response to your questions, we may discuss the metrics that are incremental to our usual presentation to get 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，我們可能會討論在我們通常的演示中增加的指標，以更深入地了解我們的業務動態或我們的季度業績。請注意，我們將來可能會或可能不會繼續提供此額外詳細信息。

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

就這樣，讓我把電話轉給湯姆。

Okay. Good afternoon, everyone, and thank you for joining our call today. You might recall that 2 quarters ago, I spoke of economic headwinds, lengthening sales cycles, as our customers and prospects anticipated recession. In July and August of 2022, we saw a significant negative change in the business environment with the lengthening of decision cycles, and I cautioned that the market downturn could be significant.

好的。大家下午好，感謝您今天加入我們的電話會議。您可能還記得，兩個季度前，我談到了經濟逆風、銷售週期延長，因為我們的客戶和潛在客戶預計會出現衰退。 2022 年 7 月和 8 月，隨著決策週期的延長，我們看到商業環境發生了重大的負面變化，我警告說市場低迷可能會很嚴重。

Now as we enter into our fourth quarter, we are seeing tailwinds from improved business optimism and increased interest in applying C3 AI solutions to address an increasing range of applications across a broadening set of industries. This is a dramatic change from what we experienced in mid-2022. There is a genuine optimism in the marketplace for our solutions. And the overall business sentiment appears to be substantially improving.

現在，當我們進入第四季度時，我們看到了商業樂觀情緒的改善和對應用 C3 AI 解決方案以解決越來越廣泛的行業中越來越多的應用程序的興趣增加的順風。與我們在 2022 年年中經歷的情況相比，這是一個巨大的變化。市場對我們的解決方案抱有真正的樂觀態度。整體商業情緒似乎正在大幅改善。

In the course of the quarter, we validated our transition to a consumption-based pricing model. We expanded our partner ecosystem. We expanded our business pipeline. We delivered industry-leading product innovation in enterprise AI. And importantly, we remain on track to become cash positive and non-GAAP profitable by the end of fiscal year '24.

在本季度，我們驗證了向基於消費的定價模型的過渡。我們擴展了合作夥伴生態系統。我們擴大了業務渠道。我們在企業 AI 領域交付了行業領先的產品創新。重要的是，我們仍有望在 24 財年末實現現金正轉和非 GAAP 盈利。

Looking at third quarter results, we delivered a strong quarter. Our total revenue was $66.7 million, which exceeded our guidance. Current RPO increased to $176.3 million, and we have 236 customers. We ended the quarter with almost $790 million in cash. And as we enter Q4, we believe C3 AI is well positioned to continue to invest in growth through Enterprise AI innovation and sales expansion while sustaining our path to profitability.

看看第三季度的業績，我們交付了一個強勁的季度。我們的總收入為 6670 萬美元，超出了我們的指導。目前的 RPO 增加到 1.763 億美元，我們有 236 個客戶。我們在本季度結束時擁有近 7.9 億美元的現金。當我們進入第四季度時，我們相信 C3 AI 處於有利地位，可以通過企業 AI 創新和銷售擴張繼續投資於增長，同時維持我們的盈利之路。

Importantly, we have validated the consumption-based pricing model. The response to our consumption-based pricing model from partners and prospects has been uniformly enthusiastic Believe it or not, we currently have more than 290 qualified pilot opportunities in our pipeline, exceeding our expectations.

重要的是，我們已經驗證了基於消費的定價模型。合作夥伴和潛在客戶對我們基於消費的定價模型的反應一直很熱情 不管你信不信，我們目前有超過 290 個合格的試點機會，超出了我們的預期。

Our pilot to production conversion rate is on track. The consumption pricing revenue conversion model that we provided last quarter, and Juho will review that with you in a few minutes, appears to be realistic, suggesting substantially increasing revenue growth rates in fiscal year '24 and beyond.

我們的試點生產轉化率正在走上正軌。我們上個季度提供的消費定價收入轉換模型（Juho 將在幾分鐘內與您一起回顧）似乎是現實的，表明 24 財年及以後的收入增長率將大幅提高。

We made significant progress with our partner ecosystem in the third quarter. We established, reestablished and substantially expanded our go-to-market partnerships. With Google Cloud, we closed 8 new customer deals and expanded our joint pipeline. Our combined teams are currently pursuing 291 enterprise opportunities for our joint solutions, over 100 of which we are currently engaged in licensing discussions.

第三季度，我們在合作夥伴生態系統方面取得了重大進展。我們建立、重新建立並大幅擴展了我們的上市合作夥伴關係。借助 Google Cloud，我們完成了 8 筆新客戶交易並擴展了我們的聯合管道。我們的聯合團隊目前正在為我們的聯合解決方案尋找 291 個企業機會，其中 100 多個我們目前正在進行許可討論。

Thomas Kurian, the CEO of Google Cloud and I held a joint meeting with a number of clients, prospects and partners in the U.S. federal region. We've made substantial progress to ensure that all C3 AI products perform optimally in the Google Cloud environment.

我和 Google Cloud 的首席執行官 Thomas Kurian 與美國聯邦地區的許多客戶、潛在客戶和合作夥伴舉行了聯席會議。我們在確保所有 C3 AI 產品在谷歌云環境中發揮最佳性能方面取得了實質性進展。

Finally, we expanded our partnership agreement with Google, so that our customers can purchase any C3 AI software solution on the Google Cloud marketplace. We also renewed and expanded our go-to-market partnership with AWS in the quarter. AWS funded C3 AI to enhance its C3 AI law enforcement application to ensure that it's optimized for AWS, integrating Amazon OpenSearch and AWS machine learning services to enhance the speed and quality of analysis for state and local agencies using the application on AWS.

最後，我們擴大了與穀歌的合作協議，這樣我們的客戶就可以在谷歌云市場上購買任何 C3 AI 軟件解決方案。我們還在本季度更新並擴大了與 AWS 的上市合作夥伴關係。 AWS 資助 C3 AI 以增強其 C3 AI 執法應用程序，以確保其針對 AWS 進行優化，集成 Amazon OpenSearch 和 AWS 機器學習服務，以提高使用 AWS 上應用程序的州和地方機構的分析速度和質量。

C3 and AWS are currently pursuing 75 new opportunities, of which 41 appear highly qualified, and we closed 6 agreements in the quarter.

C3 和 AWS 目前正在尋求 75 個新機會，其中 41 個看起來非常合格，我們在本季度達成了 6 項協議。

With Azure, we collaborated to close the deal with a super major U.S. energy company and a European technology company serving the mining and construction sectors. We've cooperated to deliver a highly successful pilot engagement to a large U.S. defense agency that shows potential for very large expansion.

通過 Azure，我們與一家超級大型美國能源公司和一家服務於採礦和建築行業的歐洲技術公司合作完成了交易。我們已經合作為美國一家大型國防機構提供了非常成功的試點項目，該機構顯示出非常大的擴張潛力。

In the quarter, we established a highly strategic relationship with Booz Allen focused on providing solutions to the government defense intelligent sectors. When we are jointly going to market with Booz Allen to bring the C3 AI Platform and our suite of prebuilt C3 AI solutions to solve their requirements. Together, the companies have cross-trained our employees on our respective services, and we already closed our first engagement with the Chief Digital Artificial Intelligence Office CDAO.

本季度，我們與博思艾倫建立了高度戰略合作關係，專注於為政府國防智能領域提供解決方案。當我們與 Booz Allen 聯合推向市場時，帶來 C3 AI 平台和我們的預建 C3 AI 解決方案套件來解決他們的需求。兩家公司共同對我們的員工進行了各自服務的交叉培訓，我們已經結束了與首席數字人工智能辦公室 CDAO 的首次接觸。

With Accenture, we renewed our partnership to help customers drive product innovation, design and development and provide strategic support and systems integration at scale. Together, the companies have trained Accenture employees on the C3 AI Platform and have already collaborated to close 2 pilot deals in the consumer packaged goods and oil and gas sectors. We are actively engaged with a large oil and gas services company and have generated several new opportunities with target accounts.

我們與埃森哲續簽了合作夥伴關係，以幫助客戶推動產品創新、設計和開發，並提供大規模的戰略支持和系統集成。兩家公司共同在 C3 人工智能平台上對埃森哲員工進行了培訓，並且已經合作完成了包裝消費品和石油和天然氣行業的 2 筆試點交易。我們積極與一家大型石油和天然氣服務公司接洽，並通過目標客戶創造了多個新機會。

With EY, we are teaming to address the needs of the health care industry in the U.K.

我們與安永合作，共同解決英國醫療保健行業的需求。

With Peraton, a Washington, D.C. Beltway systems integrator, we entered into a partnering agreement to address the modernization of the Veterans Administration.

我們與華盛頓特區環城公路系統集成商 Peraton 簽訂了合作協議，以解決退伍軍人管理局的現代化問題。

With Baker Hughes, we substantially expanded our strategic partnership in the third quarter. The terms of this expansion resulted in an incremental C3 AI booking of $32.5 million and the frequency of payments from Baker Hughes was accelerated over the term of the agreement. C3 AI agreed to provide additional products and services to Baker Hughes and provided Baker Hughes additional flexibility in the manner in which they sell C3 AI products and services.

與貝克休斯一起，我們在第三季度大幅擴展了我們的戰略合作夥伴關係。這一擴展的條款導致 C3 AI 預訂增加 3250 萬美元，貝克休斯的付款頻率在協議期限內加快。 C3 AI 同意向貝克休斯提供額外的產品和服務，並為貝克休斯銷售 C3 AI 產品和服務的方式提供了額外的靈活性。

The expanded agreement also enables Baker Hughes to extend the term of the agreement at its option beyond its current 6-year term. We believe the partnership with Baker Hughes has substantially enhanced our credibility in oil and gas and chemicals markets.

擴大後的協議還使貝克休斯能夠選擇將協議的期限延長到目前的 6 年期限之後。我們相信，與貝克休斯的合作大大提高了我們在石油、天然氣和化學品市場的信譽。

As a result of our partnership with Baker Hughes, combining both joint selling through the partnership and the sales that we have closed independently of Baker Hughes, C3 AI has closed to date, 87 contracts in the oil and gas and chemical sector, including LyondellBasell, Shell, ExxonMobil, Petronas, ENI, Aramco, Qatargas, ADNOC, Yokagawa, Baker Hughes, Braskem, Flint Hills Resources and others.

由於我們與貝克休斯的合作夥伴關係，結合了通過合作夥伴關係進行的聯合銷售和我們獨立於貝克休斯完成的銷售，C3 AI 迄今為止已經完成了石油、天然氣和化工領域的 87 份合同，包括 LyondellBasell，殼牌、埃克森美孚、馬來西亞國家石油公司、ENI、沙特阿美、卡塔爾天然氣、ADNOC、橫河電機、貝克休斯、Braskem、Flint Hills Resources 等。

All of these in aggregate have resulted in our closing over $650 million in bookings, and we have recognized in excess of $350 million in revenue through the third quarter of fiscal year '23.

所有這些加起來使我們完成了超過 6.5 億美元的預訂，並且我們在 23 財年第三季度確認了超過 3.5 億美元的收入。

Let me talk for a minute about our ESG solutions. We've made significant progress with our ESG application, which is part of our sustainability suite, which includes C3 AI Energy management, our most mature application that was first introduced to market in the first quarter of 2010. This product used to measure, manage and mitigate the energy and greenhouse gas footprint at over 6 million residences and businesses today.

讓我談談我們的 ESG 解決方案。我們在 ESG 應用程序方面取得了重大進展，它是我們可持續發展套件的一部分，其中包括 C3 AI 能源管理，這是我們最成熟的應用程序，於 2010 年第一季度首次推向市場。該產品用於衡量、管理減少當今超過 600 萬戶住宅和企業的能源和溫室氣體足跡。

In September of 2022, we announced the availability of C3 AI ESG developed as a significant enhancement to the C3 AI Energy Management suite. C3 AI ESG provides a single source of truth for all matters of materiality related to ESG, aggregated and synthesized from the many ERP, supply chain, procurement, SCADA, CRM, HR and other enterprise systems installed in an enterprise, all tracked longitudinally at the asset division and corporate levels.

2022 年 9 月，我們宣布推出 C3 AI ESG，作為對 C3 AI 能源管理套件的重大增強。 C3 AI ESG 為與 ESG 相關的所有實質性問題提供單一的真實來源，從企業中安裝的許多 ERP、供應鏈、採購、SCADA、CRM、HR 和其他企業系統中匯總和綜合，所有這些都在縱向跟踪資產部門和公司層面。

This enables organizations to publish their ESG compliance reports consistent with a multiplicity of conflicting ESG reporting standards, including SASB, GRI, TCFD and CDP. Most importantly, C3 AI ESG provides rich predictive analytics using AI to allow managers to track their gaps to plan for ESG materiality in out years, be it CO2, H2O, methane, workplace injuries, whatever. And it recommends mitigation measures to close the gaps so the company can be assured of meeting its ESG objectives in 2030, 2040, 2050, et cetera.

這使組織能夠發布符合多種相互衝突的 ESG 報告標準（包括 SASB、GRI、TCFD 和 CDP）的 ESG 合規報告。最重要的是，C3 AI ESG 使用 AI 提供豐富的預測分析，使管理人員能夠跟踪他們的差距，以規劃未來幾年的 ESG 重要性，無論是 CO2、H2O、甲烷、工傷等。它還建議採取緩解措施來縮小差距，從而確保公司在 2030 年、2040 年、2050 年等實現其 ESG 目標。

According to Verdantix, ESG represents a $16 billion addressable market in 2027, and our product is being enthusiastically received. Our initial ESG customers are EY, Shell and Baker Hughes.

根據 Verdantix 的說法，ESG 代表著 2027 年價值 160 億美元的潛在市場，我們的產品受到熱烈歡迎。我們最初的 ESG 客戶是安永、殼牌和貝克休斯。

Now I'd like to talk a little bit about our intellectual Property portfolio. C3 AI continues to make significant investments in technology innovation. We have been awarded 26 patents to date and have an additional 96 patents pending. One of our most important inventions is the model-driven architecture for Enterprise AI applications, the core architecture of the C3 AI Platform.

現在我想談談我們的知識產權組合。 C3 AI 繼續在技術創新方面進行大量投資。迄今為止，我們已獲得 26 項專利，另有 96 項專利正在申請中。我們最重要的發明之一是企業 AI 應用程序的模型驅動架構，這是 C3 AI 平台的核心架構。

We have been issued several patents for this architecture, including Systems, Methods and Devices for an Enterprise AI Application Development Platform. This platform provides all the software service is necessary and sufficient for the rapid development, deployment and operation of Enterprise AI applications.

我們已經獲得了該架構的多項專利，包括用於企業 AI 應用程序開發平台的系統、方法和設備。該平台為企業人工智能應用的快速開發、部署和運行提供了必要和充分的所有軟件服務。

Importantly, it also serves as an orchestration system, allowing us to immediately embed and exploit the utility of ongoing innovations in the open source and proprietary world. Examples include new techniques in machine learning, virtualization, encryption, commercial products like Databricks, Snowflake, Vertex AI, Amazon SageMaker; Azure ML, TensorFlow, Jupyter, Python, et cetera, all of which are immediately compatible and interoperable with the C3 AI Platform and all of which are commonly used by many of our customers.

重要的是，它還充當編排系統，使我們能夠立即嵌入和利用開源和專有世界中正在進行的創新的效用。例子包括機器學習、虛擬化、加密、Databricks、Snowflake、Vertex AI、Amazon SageMaker 等商業產品中的新技術； Azure ML、TensorFlow、Jupyter、Python 等，所有這些都與 C3 AI 平台立即兼容和互操作，並且所有這些都被我們的許多客戶普遍使用。

The recent explosion of innovation and availability of large-language models and generative pre-trained transformers are also immediately compatible with the C3 AI Platform, enabling us to increase the utility of our platform and our applications. We believe the importance of the ongoing developments in Generative AI is difficult to overestimate.

最近大語言模型和生成式預訓練轉換器的創新和可用性爆炸式增長也與 C3 AI 平台立即兼容，使我們能夠提高平台和應用程序的實用性。我們認為，生成式 AI 持續發展的重要性怎麼估計都不過分。

Now there's been a lot of recent news about C3 Generative AI. Let me address that for a moment. By combining the utility of the C3 AI Platform, predictive analytics, enterprise search, natural language processing, generative pre-trained transformers and reinforcement learning, we have developed a new and novel technique to fundamentally improve the human-computer interface for enterprise applications. This is kind of a non-obvious use of Generative AI. This is not about chat, okay? This is about enterprise search.

現在有很多關於 C3 Generative AI 的最新消息。讓我暫時解決這個問題。通過結合 C3 AI 平台的實用性、預測分析、企業搜索、自然語言處理、生成式預訓練轉換器和強化學習，我們開發了一種新技術，從根本上改進了企業應用程序的人機界面。這是生成式 AI 的一種不明顯的使用。這不是聊天，好嗎？這是關於企業搜索的。

And we believe that this invention represents a breakthrough development that will dramatically facilitate the ease of use and explainability of Enterprise AI applications. In addition to providing users immediate, highly controlled access to potentially the entire body of data and information systems within an enterprise, be it Dow Chemical, the United States Air Force, Shell, whatever it may be.

我們相信，這項發明代表了一項突破性發展，將極大地促進企業 AI 應用程序的易用性和可解釋性。除了為用戶提供對企業內潛在的整個數據和信息系統的即時、高度控制的訪問權限之外，無論是陶氏化學公司、美國空軍、殼牌公司，無論它是什麼。

In the news release that we put out, we have a link to that application. So you can actually see what it is, how it works and how it put it together. And if you're interested, I encourage you to take a look at it. It is really neat.

在我們發布的新聞稿中，我們有一個指向該應用程序的鏈接。所以你可以真正看到它是什麼，它是如何工作的，以及它是如何組合在一起的。如果您有興趣，我鼓勵您看一看。它真的很整潔。

Okay. We expect the C3 AI Generative search capability to be incorporated into the C3 AI Platform and applications and generally available to our customer base this spring. It is currently being deployed as a core capability in the C3 AI Platform, and we are doing early deployments at Koch Industries and Baker Hughes. To protect this intellectual property, we have several patents pending in multiple jurisdictions around the world. And I encourage you to go find the link on our website and take a look at it because it is really something.

好的。我們預計 C3 AI 生成搜索功能將被整合到 C3 AI 平台和應用程序中，並在今年春天普遍提供給我們的客戶群。它目前正在作為 C3 AI 平台的核心功能進行部署，我們正在 Koch Industries 和 Baker Hughes 進行早期部署。為了保護這一知識產權，我們在全球多個司法管轄區擁有多項正在申請中的專利。我鼓勵您去我們網站上找到鏈接並查看它，因為它確實很重要。

Okay. Let's talk about guidance. Turning to guidance for the fourth quarter and fiscal year 2023, I will remind everybody on the call that this is the eighth consecutive quarter as a public company, in which -- the third quarter is the eighth consecutive quarter in which we have exceeded our revenue guidance, okay? We expect revenue for Q4 to be between -- Q4 2023 between $70 million and $72 million. And for the full year fiscal year '23, we expect revenue to range between $264 million and $266 million.

好的。讓我們談談指導。談到第四季度和 2023 財年的指導意見，我會在電話會議上提醒大家，這是作為上市公司連續第八個季度，其中 - 第三季度是我們連續第八個季度超過我們的收入指導，好嗎？我們預計 2023 年第四季度的收入將在 7000 萬美元至 7200 萬美元之間。對於 23 財年全年，我們預計收入將在 2.64 億美元至 2.66 億美元之間。

Bottom line, Q3 was solid. We have validated the consumption-based pricing model, okay? The addressable market is huge. Business is strong. Customers are happy. Our workforce is highly productive and the future is bright.

最重要的是，第三季度是穩固的。我們已經驗證了基於消費的定價模型，好嗎？可尋址市場是巨大的。生意興隆。客戶很高興。我們的員工生產力很高，前途一片光明。

And now I will turn this over to my colleague, Juho Parkkinen, for additional details regarding our financial results. Juho?

現在我將把這個交給我的同事 Juho Parkkinen，了解有關我們財務業績的更多詳細信息。巨虎？

Thank you, Tom. I will now provide a recap of our financial results, add some color to the drivers of our financials, discuss our expected path to non-GAAP operating profitability by the end of fiscal '24, and I will conclude with some additional color related to the consumption-based revenue model we introduced 2 quarters ago. All figures will be discussed on a non-GAAP basis, unless otherwise noted.

謝謝你，湯姆。我現在將回顧我們的財務業績，為我們的財務驅動因素添加一些顏色，討論我們在 24 財年末實現非 GAAP 運營盈利的預期路徑，我將以與我們在 2 個季度前推出的基於消費的收入模型。除非另有說明，否則所有數字都將在非 GAAP 基礎上進行討論。

As Tom mentioned, we ended the quarter with revenue of $66.7 million, of which subscription revenue was 85.6%. Gross profit was $51 million and gross margin was at 76%. As I mentioned during the last quarter's update, we have a short-term pressure on our gross margins due to a higher mix of pilots which carry a higher cost of revenue during the pilot phase of our customer life cycle.

正如湯姆所說，我們在本季度結束時的收入為 6670 萬美元，其中訂閱收入佔 85.6%。毛利潤為 5100 萬美元，毛利率為 76%。正如我在上一季度的更新中提到的那樣，由於在我們的客戶生命週期的試點階段，更多的試點組合帶來更高的收入成本，我們的毛利率面臨短期壓力。

Operating loss of a negative $15 million improved year-over-year and was significantly above our guidance due to improved vendor expense management and timing of [payment]. Operating loss margin was flat at negative 23% as compared to the same period in the prior year. However, on a sequential basis, our operating loss margin improved.

負 1500 萬美元的營業虧損同比有所改善，並且由於改進了供應商費用管理和 [付款] 時間，大大高於我們的指導。與去年同期相比，經營虧損率持平，為負 23%。然而，在連續的基礎上，我們的營業虧損率有所改善。

Our customer count increased 8% to 236, and we closed 27 deals during the quarter, 17 of which were pilot deals under the consumption model.

我們的客戶數量增加了 8%，達到 236 家，本季度我們完成了 27 筆交易，其中 17 筆是消費模式下的試點交易。

Now turning to RPO and bookings. We reported GAAP RPO of $403 million, which is down 14% from last year. This was expected as we transition to consumption-based deals. Trade GAAP RPO of $176.3 million is up 3% from last year and 7% on a sequential basis. We continue to see positive trends in pilot bookings diversity as we have increased to 9 industry segments in Q3 compared to 6 in Q2.

現在轉向 RPO 和預訂。我們報告的 GAAP RPO 為 4.03 億美元，比去年下降 14%。當我們過渡到基於消費的交易時，這是意料之中的。貿易 GAAP RPO 為 1.763 億美元，比去年增長 3%，環比增長 7%。我們繼續看到飛行員預訂多樣性的積極趨勢，因為我們在第三季度增加到 9 個行業部門，而第二季度為 6 個。

Regarding our cash flow, Free cash flow improved to an outflow of $71.7 million compared to $77 million in the prior quarter. Breaking this down, $19.4 million was related to the build-out of our new headquarters, which we moved into in February. Normalizing for this payment, our adjusted free cash flow improved to an outflow of $52.3 million compared to $54.3 million last quarter. We continue to expand our headquarters and we'll have additional cash outflow in the following quarters as we take over additional spend.

關於我們的現金流，自由現金流從上一季度的 7700 萬美元增加到流出 7170 萬美元。細分來看，1940 萬美元與我們於 2 月搬入的新總部的擴建有關。將這筆付款正常化後，我們調整後的自由現金流從上一季度的 5430 萬美元增加到 5230 萬美元的流出。我們繼續擴大我們的總部，隨著我們接管額外支出，我們將在接下來的幾個季度有額外的現金流出。

During the quarter, we expanded the Baker Hughes partnership. As Tom mentioned, the changes are designed to provide increased flexibility to Baker Hughes to provide the BHC3.ai solutions to the market. This resulted in the elimination of the variable consideration, which increased the transaction price by $32.5 million.

本季度，我們擴大了與貝克休斯的合作夥伴關係。正如湯姆所提到的，這些變化旨在為貝克休斯提供更大的靈活性，以向市場提供 BHC3.ai 解決方案。這導致消除了可變對價，使交易價格增加了 3250 萬美元。

Regarding outlook. As Tom highlighted, we are able to narrow our range as we have more visibility as we enter Q4. As such, we're guiding Q4 to $70 million to $72 million. And for the year, we're tightening the guide from $264 million to $266 million. For Q4 '23, we expect our non-GAAP loss from operations in the range of $24 million to $28 million, that is a negative. And for the full year, we expect the non-GAAP loss from operations of negative $69 million to negative $73 million.

關於前景。正如 Tom 強調的那樣，我們能夠縮小我們的範圍，因為我們在進入第四季度時有更多的知名度。因此，我們將第四季度引導至 7000 萬至 7200 萬美元。今年，我們將指導價從 2.64 億美元收緊至 2.66 億美元。對於 23 年第四季度，我們預計我們的非 GAAP 運營虧損在 2400 萬至 2800 萬美元之間，這是一個負數。對於全年，我們預計非 GAAP 運營虧損為負 6900 萬美元至負 7300 萬美元。

In accordance with our plan, we do expect gross margin percentage to be negatively impacted by the number of pilots active in the fourth quarter. Please recall that during the 2 quarter pilot period, customer will have unlimited run time and premium support resources sufficient to be successful with their target engagement and gain value from the C3 AI software.

根據我們的計劃，我們確實預計毛利率將受到第四季度活躍飛行員數量的負面影響。請記住，在第二個季度的試點期間，客戶將擁有無限的運行時間和優質的支持資源，足以成功實現他們的目標參與並從 C3 AI 軟件中獲得價值。

During this pilot period, our subscription cost of revenue will be elevated until the conversion to consumption-based pricing occurs. Over time, we expect gross margin percentage to revert to historical ranges as higher percentage of customers on a pilot move to consumption (inaudible) revenue.

在此試點期間，我們的訂閱收入成本將增加，直到轉換為基於消費的定價。隨著時間的推移，我們預計毛利率將恢復到歷史範圍，因為試點轉向消費（聽不清）收入的客戶比例更高。

Our operating margin guidance reflects the fact that we have C3 transform the world's premier Enterprise AI Conference and our major customer events happening next week, and we will have related marketing expenses for this quarter's costs. In addition, as we have discussed previously, we're increasing our sales head count to meet the demand we are seeing for our consumption-based pricing sales and expect to see increased expense in the fourth quarter as a result.

我們的營業利潤率指引反映了這樣一個事實，即我們讓 C3 改變了世界首屈一指的企業 AI 會議和我們下週舉行的主要客戶活動，我們將在本季度的成本中支付相關的營銷費用。此外，正如我們之前所討論的那樣，我們正在增加銷售人數以滿足我們對基於消費的定價銷售的需求，並預計第四季度的費用會因此增加。

It is important to note that we expect that our cash balance will continue to decline into next fiscal year as we complete the build-out of our headquarters. We expect our cash and investments to be at its lowest at around $700 million during fiscal '24. Broadly speaking, as a result of the introduction to consumption-based pricing, we expect RPO to trend down over the coming quarters with some exceptions relating to renewals and existing customer expansions.

值得注意的是，隨著我們完成總部的擴建，我們預計我們的現金餘額將在下一個財政年度繼續下降。我們預計我們的現金和投資在 24 財年將處於最低水平，約為 7 億美元。從廣義上講，由於引入了基於消費的定價，我們預計未來幾個季度的 RPO 將呈下降趨勢，但與續訂和現有客戶擴展相關的一些例外情況除外。

Also, before I end, I'd like to take the opportunity to shed some light into the details in our financial plan and the progress we're making with our consumption-based pricing. As Tom mentioned in his comments, we are on track with our plan to achieve non-GAAP profitability by the end of fiscal year '24. On a quarterly basis, we assess the business landscape and adjust our operating plan based on what we're experiencing in the market.

此外，在我結束之前，我想藉此機會闡明我們財務計劃的細節以及我們在基於消費的定價方面取得的進展。正如湯姆在評論中提到的那樣，我們正在按計劃在 24 財年末實現非 GAAP 盈利。每季度，我們都會評估業務前景並根據我們在市場上遇到的情況調整我們的運營計劃。

During Q1, as Tom mentioned in his remarks, back then, we experienced headwinds and Tom cautioned that the market downturn could be significant. We and the management team adjusted our operating plan and build out a careful trap to become operating-profitable by the end of FY '24. We are on that plan.

在第一季度，正如湯姆在他的評論中提到的那樣，當時我們經歷了逆風，湯姆警告說市場低迷可能會很嚴重。我們和管理團隊調整了我們的運營計劃，並精心設計了一個陷阱，以便在 24 財年末實現運營盈利。我們正在執行該計劃。

In order to make sure that we monitor that plan, we have prepared detailed department of budgets. We track variances, we hold managers responsible. And if there are variances, we correct them immediately.

為了確保我們監控該計劃，我們準備了詳細的預算部門。我們跟踪差異，我們讓經理負責。如果存在差異，我們會立即更正。

In our investor supplement, we have shared our current projected path to operating profit on a relative expense basis. Obviously, as I mentioned, we review our plan each quarter, but I wanted to share the detailed path with you guys at this time.

在我們的投資者補充中，我們分享了我們目前預計的以相對費用為基礎的營業利潤路徑。顯然，正如我提到的，我們每個季度都會審查我們的計劃，但我想在這個時候與大家分享詳細的路徑。

As it relates to the model assumptions that we provided 2 quarters ago for our consumption-based pricing business, our preliminary analysis of the actual results suggest that we are at or better than that model. Therefore, to summarize, quarter results were above expectations and guidance clear and well-understood plan for our path to profitability is in action and our consumption-based model assumptions are on track.

由於它與我們兩個季度前為基於消費的定價業務提供的模型假設相關，我們對實際結果的初步分析表明我們達到或優於該模型。因此，總而言之，季度業績超出預期，指引明確且易於理解，我們的盈利之路計劃正在實施，我們基於消費的模型假設正在走上正軌。

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

有了這些評論，我想打開這個問題的電話。操作員？

(Operator Instructions) And our first question comes from the line of Mike Cikos with Needham & Company.

（操作員說明）我們的第一個問題來自 Needham & Company 的 Mike Cikos。

I wanted to start off with some of the comments that you guys had around the customer dynamics because I just want to make sure I'm clear on how we're looking at things. If I'm counting, I think the customer count was actually flat quarter-to-quarter as far as total customer count. But I know -- I think Juho in your prepared remarks have discussed C3 had closed 27 deals 17 of those were pilots under the consumption model. Can you just help us think through like how are you guys categorizing? Who goes into that category, when do they become would you term a customer?

我想從你們對客戶動態的一些評論開始，因為我只是想確保我清楚我們是如何看待事物的。如果我正在計算，我認為就總客戶數而言，客戶數實際上每季度持平。但我知道——我認為 Juho 在你準備好的發言中已經討論過 C3 已經完成了 27 筆交易，其中 17 筆是消費模式下的試點。你能幫我們想想你們是如何分類的嗎？誰進入該類別，他們什麼時候成為客戶？

Of course, yes. Thanks, Mike, for the question. So if you take a look at our quarterly filings, we've provided kind of a deep detailed definition of what our customer is, but I'll provide it here as well. So within a customer entity, which you can think about the ultimate parent of, let's say, Koch Industries there could be several subsidiaries, groups, departments, various budget owners or various groups that use either incrementally our tool or use it in different use cases. That -- all of those individual groups we would characterize as a customer.

當然，是的。邁克，謝謝你提出這個問題。所以如果你看一下我們的季度文件，我們已經提供了關於我們的客戶是什麼的深入詳細的定義，但我也會在這裡提供。因此，在一個客戶實體中，您可以將其視為 Koch Industries 的最終母公司，其中可能有多個子公司、集團、部門、各種預算負責人或各種集團，它們要么增量使用我們的工具，要么在不同的用例中使用它.那——所有那些我們將描述為客戶的個體群體。

I guess what I'm getting at is if you closed 27 deals and 17 were pilots, right? If I think about the 27 deals that you guys closed, the assumption is then that they were all with existing customers. Is that fair? Or I guess there's movement under the hood in that customer count that you're providing Again, I'm just looking at the customer count being flat quarter-to-quarter.

我想我的意思是，如果你完成了 27 筆交易，其中 17 筆是試點，對吧？如果我考慮一下你們完成的 27 筆交易，那麼假設它們都是與現有客戶的。這公平嗎？或者我猜你提供的客戶數量在幕後發生了變化，我只是在看客戶數量每季度持平。

Yes, totally understand. So let me clarify. So we are still, broadly speaking, in our transition phase to the pure pilot model. And if you recall in some of our prior conversations, some of the old trial arrangements, which are a customer in the period when their trials upon the ending of the trial period, we engaged in negotiations to turn them into production customers.

是的，完全明白。所以讓我澄清一下。因此，從廣義上講，我們仍處於向純試點模式的過渡階段。如果你還記得我們之前的一些談話，一些舊的試用安排，在試用期結束時，他們是試用期間的客戶，我們進行了談判，將他們變成生產客戶。

During that phase, that customer is not considered a customer. It effectively falls off the calculation. And then when they would enter into a production deal, they come back into the calculation. So those dynamics are still at play because obviously, we still have a tail of the former trial model at the -- during the quarter.

在該階段，該客戶不被視為客戶。它有效地脫離了計算。然後當他們達成生產協議時，他們會重新進行計算。所以這些動力仍在發揮作用，因為很明顯，我們在本季度仍然有前試用模型的尾巴。

Now the 17 new pilot arrangements, those also are a mixture of new customers and then we could have an existing customer who wants to do a trial project with us. So that would be -- that could be part of the bridge as well.

現在有 17 個新的試點安排，這些也是新客戶的混合體，然後我們可能會有一個現有客戶想和我們一起做一個試驗項目。那就是——這也可能是橋樑的一部分。

Got it. Got it. And one other thing, if I could, but I know you guys obviously cited the better profitability here versus expectations. And one of the -- I guess there were 2 primary big drivers. The first is we had a large sequential uptick in the pro services revenue and that pro services gross margin. Can you help us think about what drove that strong return in pro services as well as the gross margin there coming in, it was in the 90% plus range, which I think was much higher than what you guys have typically done. Was there any onetime item that benefited that gross margin?

知道了。知道了。還有一件事，如果可以的話，但我知道你們顯然提到了這裡的盈利能力高於預期。其中之一 - 我猜有 2 個主要的大驅動程序。首先是我們的專業服務收入和專業服務毛利率連續大幅上升。你能幫我們想想是什麼推動了專業服務的強勁回報以及那裡的毛利率，它在 90% 以上的範圍內，我認為這比你們通常所做的要高得多。是否有任何一次性項目使該毛利率受益？

So we have a highly skilled professional services organization, and we do various projects where we are able to command a high margin. Our standard kind of historical implementation services would be at a lower margin, but then we also do certain consulting base or more ad hoc projects that carry a very high gross margin.

所以我們有一個技術精湛的專業服務組織，我們做各種項目，我們能夠獲得高利潤。我們標準的歷史實施服務的利潤率較低，但我們也會做某些諮詢基地或更多毛利率非常高的臨時項目。

Okay. And then the other thing that benefited the margins obviously was the much lower than expected sales and marketing expense. What was it that drove that benefit? And I guess the follow-up question on sales and marketing is, I know that you guys have previously outlined your assumptions for sales and marketing headcount to grow 40% to 60% year-to-year. Are we tracking to that? Where did the sales and marketing headcount shake out for the quarter?

好的。然後另一件有利於利潤率的事情顯然是遠低於預期的銷售和營銷費用。是什麼推動了這種好處？我想關於銷售和營銷的後續問題是，我知道你們之前已經概述了您對銷售和營銷員工人數同比增長 40% 至 60% 的假設。我們在跟踪那個嗎？本季度的銷售和營銷人員人數變動在哪裡？

Okay. Thanks, Mike. That's another great question on that. So if you take a look at the investor supplement, we broke it out again for your benefit between sales and marketing. So you can kind of see the relative proportion there and how we plan on -- how our current plan is to track into operating profit.

好的。謝謝，邁克。這是另一個很好的問題。因此，如果您看一下投資者補充，我們再次將其分解為您在銷售和營銷之間的利益。所以你可以看到那裡的相對比例以及我們的計劃——我們目前的計劃是如何追踪營業利潤。

To answer kind of quickly to your question, from a marketing perspective, as discussed in prior calls, we believe we have a very high brand value, and we no longer have to spend the historical amounts to gain or increase that value. And secondly, on the sales side, we have very aggressive hiring targets, but we are slightly behind those targets because we look for the best type of candidates to sell our products and services.

為了快速回答您的問題，從營銷的角度來看，正如之前電話中所討論的那樣，我們相信我們擁有非常高的品牌價值，我們不再需要花費歷史金額來獲得或增加該價值。其次，在銷售方面，我們有非常積極的招聘目標，但我們略微落後於這些目標，因為我們正在尋找最優秀的候選人來銷售我們的產品和服務。

(Operator Instructions) Our next question comes from the line of Gil Luria with D.A. Davidson.

（操作員說明）我們的下一個問題來自 Gil Luria 與 D.A. 的對話。戴維森。

It looks like the Generative AI conversation, you were ahead of. Can you help us a little bit with the context for that. When did you start the work on that? When did the pilot start? The -- You talked about a couple of implementations maybe a preview of what you're going to talk next week about at your conference. It seems like there's a little confusion out there about what came first, the interest in Generative AI or your work on it. So would you mind walking us through that time line?

看起來像生成式 AI 對話，你領先了。你能幫我們了解一下背景嗎？你是什麼時候開始這方面的工作的？試點是什麼時候開始的？ -- 你談到了幾個實施，也許是你下週在會議上要談論的內容的預覽。似乎對先出現的東西有點困惑，對生成人工智能的興趣或你在這方面的工作。那麼，您介意讓我們了解一下時間線嗎？

Let me try that. And this is Tom. So we've been working with Generative AI models since 2020. What precipitated this particular spurt of creativity was there a request from DoD, which is one of our larger customers. And I got a text about 4 or 5 months ago, "Mr. Tom, we need you to be the Google for DoD." And so I didn't quite understand what that meant. And then I talked to some of our colleagues and like General Hyten, who used to be the Vice Chairman of Joint Chiefs and General Cardon, who is the Chair of our Federal -- [U.S. Army Cyber Command] and he is the Chairman of C3 AI Federal .

讓我試試看。這是湯姆。因此，自 2020 年以來，我們一直在使用生成式 AI 模型。促成這種特殊的創造力爆發的是國防部的要求，它是我們的大客戶之一。大約 4 或 5 個月前我收到一條短信，“湯姆先生，我們需要你成為國防部的谷歌。”所以我不太明白那是什麼意思。然後我與我們的一些同事進行了交談，例如曾擔任參謀長聯席會議副主席的海頓將軍和擔任我們聯邦 - [美國] 主席的卡登將軍。陸軍網絡司令部]，他是 C3 AI Federal 的主席。

And they said, "Tom, this the way it works. The Chairman of the Joint Chiefs asks some question in the meeting like how are we doing against our diversity goals or what is our satellite coverage into Paycom." Okay? They then -- that gets passed down [to 2] stars goes to 4 corporals, goes to 16 IT people. And 4 weeks later, somebody goes back with 2 PowerPoint slides in the Joint Chiefs meeting. That's really how it works.

他們說，“湯姆，這就是它的運作方式。參謀長聯席會議主席在會議上提出了一些問題，比如我們如何實現我們的多元化目標，或者我們對 Paycom 的衛星覆蓋範圍是多少。”好的？然後，他們 - 被傳遞給 [2] 星，傳給 4 名下士，傳給 16 名 IT 人員。 4 週後，有人在參謀長聯席會議上帶回了 2 張 PowerPoint 幻燈片。這就是它的工作原理。

So when we were thinking about Google for DoD. That means the way they phrased the question really facilitated the creative process. So Ed and I and a couple of other people got together in a room when we started to say Google for DoD, what does that mean? Well, Google, if you think about the Google as human interface, Okay. That's the one human interface that everybody in the world knows how to use, okay, it's basically the search bar.

因此，當我們考慮將 Google 用於 DoD 時。這意味著他們表達問題的方式確實促進了創作過程。所以當我們開始說 Google 支持 DoD 時，Ed、我和其他幾個人聚在一個房間裡，這是什麼意思？好吧，Google，如果您將 Google 視為人機界面，好的。這是世界上每個人都知道如何使用的唯一人機界面，好吧，它基本上就是搜索欄。

And we figured out a way to use that for every application we do, DoD, manufacturing, supply chain precision health, demand forecasting where you simply type-in the question, what's my satellite coverage into Paycom. It uses Generative AI to say, did you mean this or this, just like Google does. You click on the answer you do, that you -- and it uses normal AI to give you the answer. It uses kind of check the capability to give you a detailed explanation on the right, with which you can interact via chat. Okay. Understand though, the chat universe that you (inaudible) about is only the information content of the enterprise that were installed, be it Dow, be it EY or be at a Department of the Army.

我們想出了一種方法，可以將其用於我們所做的每個應用程序，國防部、製造、供應鏈精確健康、需求預測，您只需在其中輸入問題，即我對 Paycom 的衛星覆蓋範圍是多少。它使用生成式 AI 來判斷，你的意思是這個還是這個，就像谷歌所做的那樣。你點擊你做的答案，你——它會使用普通的人工智能給你答案。它使用某種檢查功能在右側為您提供詳細說明，您可以通過聊天與它進行交互。好的。不過要明白，您（聽不清）關於的聊天世界只是安裝的企業的信息內容，無論是道瓊斯指數、安永還是陸軍部。

And then below, you get a log of list of other areas that you might want to click on that are related to the question, whatever the question was satellite coverage into Paycom. These might be talent share files, click files, Excel files, documents, what have you. So we put that together and start playing with it. And then we develop some techniques that by combining enterprise search with [natural language] processing and Generative AI, reinforcement learning and it's kind of the Google user interface in a very non-IPS manner, we're able to solve a very interesting problem or now we have an application that the joint -- share Joint Chiefs can use at the end of the and the private and the flight line at [right patterns] and Air Force base can use.

然後在下面，您會看到與問題相關的其他區域列表的日誌，您可能想要單擊這些區域，無論問題是衛星覆蓋到 Paycom。這些可能是人才共享文件、點擊文件、Excel 文件、文檔等等。所以我們把它放在一起開始玩。然後我們開發了一些技術，通過將企業搜索與 [自然語言] 處理和生成人工智能、強化學習以及一種非常非 IPS 方式的 Google 用戶界面相結合，我們能夠解決一個非常有趣的問題或現在我們有一個應用程序，聯合參謀長可以在 [正確模式] 和空軍基地的末端使用私人和飛行路線。

So there's a link in our news release. We can go on and see the application. And I think this might fundamentally change the nature of the human-computer interface [randomized] applications. It's pretty neat. And what we'll be showing it in Florida next week to our users working on about 10 of our applications. And releasing it into production this spring. So it's -- we didn't advent Generative AI. We're just taking advantage of the billions of dollars of research that's going on out there.

所以我們的新聞稿中有一個鏈接。我們可以繼續查看應用程序。我認為這可能會從根本上改變人機界面 [隨機] 應用程序的性質。它非常整潔。以及下週我們將在佛羅里達州向使用大約 10 個應用程序的用戶展示的內容。並在今年春天將其投入生產。所以它是 - 我們沒有出現生成人工智能。我們只是在利用正在進行的數十億美元的研究。

And whoever has the hottest product of the day, be it Microsoft or Google or OpenAI or whoever it comes up with it next, we just use that in our engine and our architecture supports that. So sorry for the long answer, but it is really exciting. And I encourage you to click on the link on our news release, and there's about a 4-minute demo there that will give you a feel for it. I think you'll think it's unique, has a lot of utility and will dramatically increase the usability and attractiveness of our products.

無論誰擁有當今最熱門的產品，無論是微軟、谷歌還是 OpenAI，或者下一個提出它的人，我們都將其用於我們的引擎，我們的架構支持它。很抱歉回答這麼長，但這真的很令人興奮。我鼓勵您點擊我們新聞稿上的鏈接，那裡有大約 4 分鐘的演示，可以讓您感受一下。我想您會認為它是獨一無二的，具有很多實用性，並且會顯著提高我們產品的可用性和吸引力。

My follow-up is it sounds like you're talking about 2 things. One, about how Generative AI makes your current products suite better and another how you can apply it in an enterprise level beyond your product set to other data sets within the enterprise, which one is the bigger commercial opportunity?

我的後續行動是聽起來你在談論兩件事。一是關於生成式人工智能如何使您當前的產品套件變得更好，另一個是如何在企業級別將其應用到您的產品集之外的企業內的其他數據集，哪個是更大的商業機會？

That's a really good question. And I mean you really asked a good question. And because there is a big opportunity to do this in enterprises that do not use C3 and do not intend to use C3, okay? But they want the unified view of their data. And so the honest answer is we have not figured out how to monetize that yet. We haven't put a price on it yet, but there is potentially a very large market there.

這真是個好問題。我的意思是你真的問了一個好問題。而且因為在不使用 C3 且不打算使用 C3 的企業中有很大的機會這樣做，好嗎？但他們想要統一的數據視圖。所以誠實的回答是我們還沒有想出如何將其貨幣化。我們還沒有給它定價，但那裡可能有一個非常大的市場。

And it's no place -- it's not in any of our operating plans yet, but it will be. But you -- this is a very -- it's a non-obvious use of these OpenAI IPs. This is not about ChatGPT, I mean a chat, it's kind of cute, right? And someday, I think it will be useful. But that's -- we're not doing chat here. We're doing kind of the (inaudible) chat. We're using these large-language models to basically crawl the enterprise. And so -- but you asked a very good question. There is a monetization opportunity today that we haven't figured out yet.

它不在任何地方——它還不在我們的任何運營計劃中，但它會的。但是你 - 這是一個非常 - 這是對這些 OpenAI IP 的非顯而易見的使用。這不是關於 ChatGPT，我的意思是聊天，有點可愛，對吧？總有一天，我認為它會有用。但那是——我們不是在這裡聊天。我們正在進行某種（聽不清）聊天。我們正在使用這些大型語言模型來基本上抓取企業。所以 - 但你問了一個很好的問題。今天有一個我們還沒有弄清楚的貨幣化機會。

Our next question comes from the line of Michael Turits with KeyBanc.

我們的下一個問題來自 Michael Turits 與 KeyBanc 的合作。

Tom, just to continue on the product front and then I had a question or 2 for you, but on the product front and on Generative AI, I think it's it makes a lot of sense to the combination and the story with DoD. I guess the question is you're basically enterprise search that you're talking about, which is the name of the product. But that's not, unless I'm wrong, was that a product you had before because that's obviously a market unto itself, and there's a lot of existing players in that market. So what's the history of having developed that?

湯姆，繼續在產品方面，然後我有一個或兩個問題要問你，但在產品方面和生成人工智能方面，我認為這對與國防部的結合和故事很有意義。我想問題是您基本上是在談論企業搜索，這是產品的名稱。但那不是，除非我錯了，那不是你以前擁有的產品，因為這顯然是一個市場本身，而且那個市場上有很多現有的參與者。那麼開發它的歷史是怎樣的呢？

What would be an example of an enterprise search product in the market ?

市場上企業搜索產品的例子是什麼？

Even like what Elastic does for a lot of people, right? So -- and then how are you -- what's the sort of the innovation that allows you to interact that with other people's Generative AI models?

甚至就像 Elastic 為很多人所做的那樣，對吧？那麼 - 那麼你好嗎 - 什麼樣的創新可以讓你與其他人的生成人工智能模型進行交互？

The innovation is the way that we have combined those core technologies in a new and novel approach for a non-obvious application, okay? So something that would define what's patentable, okay? So we're taking the enterprise search UI, NLP, Generative AI, reinforcement learning and predictive analytics and combining those in a non-obvious way to solve a problem of how utility.

創新是我們將這些核心技術結合到一種新穎的方法中用於非顯而易見的應用程序的方式，好嗎？所以一些東西可以定義什麼是可專利的，好嗎？因此，我們正在採用企業搜索 UI、NLP、生成式 AI、強化學習和預測分析，並以一種非顯而易見的方式將它們結合起來，以解決實用性問題。

Ed, why don't you pick it up from there?

埃德，你為什麼不從那裡把它撿起來？

Yes. So as Tom said, basically, we're using more modern techniques than, say, Elastic to do the interpretation of the questions using large-language models and then the retrieval of information from across the enterprise information systems, documents, BI dashboards, et cetera.

是的。因此，正如 Tom 所說，基本上，我們使用比 Elastic 更現代的技術來使用大型語言模型來解釋問題，然後從整個企業信息系統、文檔、BI 儀表板等中檢索信息等等。

And so this is a, as Tom said, a novel approach to be able to search the entire corpus of an enterprise and leverages Generative AI, leverages these large-language models and all the -- all of the capability that we've developed over the past decade to be able to integrate and unified data across systems, sensor networks, images, tax, et cetera. So this is different than it's new, and it's much more effective than traditional approaches for indexing.

因此，正如 Tom 所說，這是一種能夠搜索企業的整個語料庫並利用生成 AI，利用這些大型語言模型以及我們開發的所有功能的新穎方法過去十年來能夠跨系統、傳感器網絡、圖像、稅收等整合和統一數據。所以這不同於它的新方法，而且它比傳統的索引方法更有效。

Got it. Makes sense. And then just -- your hope for -- just on Baker Hughes. So I think that we had in our model, I don't know if it's right or not, but I think we're anticipating about another $270 million in the contracts? Maybe -- I don't know if you wanted to update that, but so do I just add $35 million to that? And does it change the amount you're expecting each quarter? And what did you get this quarter from them?

知道了。說得通。然後——你的希望——就在貝克休斯。所以我認為我們在我們的模型中，我不知道它是否正確，但我認為我們預計合同中還會有 2.7 億美元？也許——我不知道你是否想更新它，但我只是添加 3500 萬美元嗎？它會改變您每個季度的預期金額嗎？這個季度你從他們那裡得到了什麼？

Okay. Good question. So I'd have to -- I think we need to look at your model separately. But the short answer is that we disclose both in our release and the Q and the supplement, the Baker Hughes RPO, the RPO is $188.5 million. So we've got to maybe check on offline as to what does that mean for your model. As it relates to the results in the quarter on the face of the income statement, we showed a related party amount for Baker Hughes this quarter was $28.9 million.

好的。好問題。所以我必須——我認為我們需要單獨查看您的模型。但簡短的回答是，我們在我們的新聞稿、Q 和補充文件中披露了 Baker Hughes RPO，RPO 為 1.885 億美元。因此，我們必須離線檢查這對您的模型意味著什麼。由於它與損益表上的本季度業績相關，我們顯示本季度貝克休斯的關聯方金額為 2890 萬美元。

Okay. Great. And does it extend the amount of time? I think you said it extended the dollar amount maybe I missed it, but is it extending the period over which it's being paid also so adding through the same length?

好的。偉大的。它會延長時間嗎？我想你說它延長了美元金額，也許我錯過了，但它是否也延長了支付的期限，因此增加了相同的長度？

No, we actually -- It's actually, one of the really exciting things as part of this extended agreement is that we accelerated the payment schedules. So we're actually collecting cash faster from Baker Hughes. And then as it relates to the transaction price, so the accounting transaction price increased by $32.5 million because the variable consideration was eliminated as part of the expansion deal.

不，我們實際上 - 實際上，作為該擴展協議的一部分，真正令人興奮的事情之一是我們加快了付款時間表。所以我們實際上更快地從貝克休斯收集現金。然後由於它與交易價格相關，因此會計交易價格增加了 3250 萬美元，因為作為擴展交易的一部分消除了可變對價。

And I think it might have -- I might be in a source of a little bit confusion there, Michael. Another term of it is they have a unilateral option to extend the agreement, okay, should they choose to do so. That doesn't mean to extend the period of the payment terms. That means add more years to the agreement for pre-existing predetermined amounts of cash.

而且我認為它可能有 - 我可能在那裡有點困惑，邁克爾。另一個術語是他們可以單方面選擇延長協議，好吧，如果他們選擇這樣做的話。這並不意味著延長付款期限。這意味著為預先存在的預定金額的現金增加協議的年限。

And our next question comes from the line of Sanjit Singh with Morgan Stanley.

我們的下一個問題來自 Sanjit Singh 與摩根士丹利的合作。

So if I take the comments from Tom in his script and Tom it's like notable that you are speaking to a better demand environment and I think the rest of software is still pretty gloomy. And then I sort of Juho's comments around the consumption actual versus predicted sort of coming in line with what you thought, I'm trying to put these pieces together revenue is declining year-over-year right now, obviously, because the business model is going through some transition.

因此，如果我在他的腳本中接受湯姆的評論，那麼值得注意的是，你正在談論一個更好的需求環境，我認為其餘的軟件仍然非常悲觀。然後我對 Juho 關於實際消費與預測消費的評論有點符合你的想法，我試圖將這些部分放在一起，收入現在同比下降，顯然，因為商業模式是經歷一些轉變。

And so I guess the big question is, what -- where does revenue growth go to? I know you guys still have another quarter to go before your Q4, but TheStreet is sort of expecting 20% revenue growth. Is that something that seems achievable from your line of sight and in your more optimistic view? Is it something that's better than that, below that? I'm just trying to understand like where the business is...

所以我想最大的問題是，收入增長會去哪裡？我知道你們在第四季度之前還有一個季度，但 TheStreet 預計收入增長 20%。從您的視線和更樂觀的角度來看，這似乎是可以實現的嗎？它是比那個更好的東西嗎？我只是想了解業務在哪裡...

I'll let Juho handle this Sanjit, but just for the record, if I'm not mistaken, our revenue for fiscal year '23 will be greater than fiscal year '22, not less. Okay? So year-over-year our revenue will increase, not decrease. So I just don't want there to be any misunderstanding about the [filings or our] listing. Juho, why don't you take the rest of it?

我會讓 Juho 處理這個 Sanjit，但鄭重聲明，如果我沒記錯的話，我們 23 財年的收入將大於 22 財年，而不是更少。好的？因此，與去年同期相比，我們的收入將增加，而不是減少。所以我只是不想對 [文件或我們的] 列表有任何誤解。 Juho，你為什麼不把剩下的拿走？

Yes, of course, yes. So thanks, Sanjit. The -- let me try to recap your question. So first of all, as Tom mentioned that the annual guide would be a year-over-year increase on the total annual results. And then on the quarterly basis, yes, we're seeing very promising signs that our model assumptions are good. We're seeing actual results that are at the model or even better.

是的，當然，是的。所以謝謝，山吉特。 - 讓我試著重述一下你的問題。首先，正如湯姆提到的那樣，年度指南將是年度總業績的同比增長。然後在季度基礎上，是的，我們看到非常有希望的跡象表明我們的模型假設是好的。我們看到了模型的實際結果，甚至更好。

And previously, we have provided some really early onset outlook that 24% would be around 30% growth. I know that TheStreet expects around 20% growth, I'd say that it's achievable at least to what TheStreet is saying and we certainly are interest -- we certainly are targeting a higher growth (inaudible) our model actuates as we plan it to actually.

之前，我們提供了一些真正早期的前景，即 24% 將增長 30% 左右。我知道 TheStreet 預計增長 20% 左右，我想說至少 TheStreet 所說的是可以實現的，我們當然感興趣——我們當然目標是更高的增長（聽不清）我們的模型按照我們的計劃實際執行.

No, that's super helpful. I really appreciate the thoughts. And I guess, Thomas, a follow-up on just your more optimistic view versus, let's say, a year ago, where is that coming from, like, I mean, is there a way you can sort of talk to it from like a vertical perspective. A lot of the companies that are struggling now are selling to other tech companies, which kind of explains a lot of their weakness. But what are you seeing in your customer base?

不，那超級有用。我真的很感激這些想法。我想，Thomas，跟進你更樂觀的觀點，比方說，一年前，那是從哪裡來的，就像，我的意思是，有沒有一種方法可以讓你像垂直視角。許多現在苦苦掙扎的公司都在向其他科技公司出售產品，這在很大程度上解釋了它們的弱點。但是您在客戶群中看到了什麼？

That's a really good question. Maybe you -- I guess you can't show the slide. But if you show the industry diversity, I mean, number one, oil and gas is obviously a very healthy segment for us, but it's one of the healthiest segments in the overall economy, right? So we happen to be in the right place at the right time there with the right partner. That's working out pretty well for us.

這真是個好問題。也許你-- 我猜你不能放映幻燈片。但如果你展示行業多樣性，我的意思是，第一，石油和天然氣顯然對我們來說是一個非常健康的部分，但它是整體經濟中最健康的部分之一，對吧？所以我們碰巧在正確的時間和正確的合作夥伴一起出現在正確的地方。這對我們來說效果很好。

But if you look at -- Juho, please talk to the industry diversification that we saw in the pilot projects because it's really kind of all segments of the economy. I mean all I can say, Sanjit, is like when we go to places like Davos or I go to the U.K. or I go to Washington, D.C. or I go to New York. I mean, last summer, I mean it was the end of the world in July and August, everybody was hunkering down in the basement, figuring out how seriously they were going to slash expenses to like survive the recession.

但如果你看—— Juho，請談談我們在試點項目中看到的行業多元化，因為它確實涉及經濟的所有領域。我的意思是，Sanjit，我只能說，就像我們去達沃斯這樣的地方，或者我去英國，或者我去華盛頓特區，或者我去紐約。我的意思是，去年夏天，我的意思是七月和八月是世界末日，每個人都蹲在地下室裡，弄清楚他們將多麼認真地削減開支以度過經濟衰退。

Now it's kind of everybody and think, okay, fine, there's going to be a set -- recession, let's get over it and get on with business. And so it's -- there's just a dramatically improved sentiment out there. And -- but Juho maybe you can comment on the of the diversity that we saw in the pilot because it was really quite remarkable.

現在每個人都在想，好吧，好吧，這將是一場衰退，讓我們克服它，繼續做生意。所以它是——那裡的情緒有了顯著改善。而且 - 但 Juho 也許你可以評論我們在飛行員中看到的多樣性，因為它真的非常了不起。

Yes. Thanks, Tom. So Sanjit, on the supplemental or the supplement that we have on our website, if you check out Slide 24, we show the diversity in total bookings and then we also show the diversity of the pilot bookings. So we're very excited about the 9 industries that we have pilot deals during the quarter. Just to rattle them off, we got fed accounting services, consumer packaged goods, manufacturing, we've got oil and gas, financial services, high tech, we've got telco, and then we have state and local. So we've got a nice diverse group here at Q3.

是的。謝謝，湯姆。所以 Sanjit，在我們網站上的補充或補充中，如果你查看幻燈片 24，我們會顯示總預訂的多樣性，然後我們還會顯示試點預訂的多樣性。因此，我們對本季度進行試點交易的 9 個行業感到非常興奮。只是為了說服他們，我們得到了會計服務、消費品、製造業，我們得到了石油和天然氣、金融服務、高科技，我們得到了電信，然後我們得到了州和地方。所以我們在第三季度有一個很好的多元化團隊。

Yes. I guess the point would be is that...

是的。我想重點是……

The number remains a very small slice of our business, unlike a lot of software companies. Although...

與許多軟件公司不同，這個數字仍然只占我們業務的一小部分。雖然...

Yes, yes. That's right. And I saw that. And I guess the point Juho would be -- I guess, not just the diversification, right? But the theme across a lot of software for the past couple of quarters is that people are just conservative with respect to their investments, particularly with like public cloud related investments because they spent a lot of that in the last 2 years. It sounds like what you're saying is that you are detecting no such hesitation within the C3 AI specific customer base they are in investment mode and would that be a fair characterization?

是的是的。這是正確的。我看到了。我想 Juho 的重點是——我想，不僅僅是多元化，對吧？但過去幾個季度，許多軟件的主題是人們對他們的投資持保守態度，尤其是與公共雲相關的投資，因為他們在過去兩年中花費了大量資金。聽起來您的意思是，您在 C3 AI 特定客戶群中沒有發現這種猶豫，他們處於投資模式，這是一個公平的描述嗎？

From my perspective, and I think maybe Tom could shed some light or Ed, but I certainly believe and have seen from our customer base that our products provide value to customers. there's efficiencies, there's more productivity. So when you have whatever market, whatever industry you have, everybody is interested in cutting costs and become more profitable, become more efficient we are right there. Our stuff is helping them to get business value very quickly. Maybe, Ed, do you want to maybe shed something on that?

從我的角度來看，我認為 Tom 或 Ed 可能會有所啟發，但我當然相信並從我們的客戶群中看到我們的產品為客戶提供價值。有效率，有更多的生產力。所以當你擁有任何市場，無論你擁有什麼行業時，每個人都對削減成本感興趣，變得更有利可圖，變得更有效率，我們就在那裡。我們的東西正在幫助他們快速獲得商業價值。也許，埃德，你想就此說點什麼嗎？

(inaudible) in the qualified pilot opportunities that we're working and it was Google alone. We're in the process of trying to close deals with how many. It's a big member. We are engaged, okay? We have 291. Well, we have over 100 opportunities with Google Cloud, and we're currently engaged in licensing discussions. I mean, something changed, Sanjit, from July of 2022. But (inaudible).

（聽不清）在我們正在努力的合格試點機會中，只有谷歌。我們正在嘗試與多少人達成交易。這是一個大會員。我們訂婚了，好嗎？我們有 291 個。好吧，我們有超過 100 個與穀歌云的機會，我們目前正在進行許可討論。我的意思是，從 2022 年 7 月開始，Sanjit 發生了一些變化。但是（聽不清）。

The next question comes from the line of Arvind Ramnani with Piper Sandler.

下一個問題來自 Arvind Ramnani 和 Piper Sandler 的台詞。

I wanted to ask about your expanded partnership with Google and also AWS when you look at these partnerships, how are you sort of measuring kind of the commercial success or the ROI of these relationships, right? Because you certainly have like a lot of good relationships and kind of partnerships have established and have continued to expand and -- but sort of looking forward and saying like, these are the partnerships that are resulting in the greatest commercial success, and this is where we need to continue investing in. How are you -- what's the approach in figuring out that ROI and investment?

當您查看這些合作夥伴關係時，我想問您與 Google 和 AWS 的擴展合作夥伴關係，您如何衡量商業成功或這些關係的投資回報率，對嗎？因為你肯定有很多良好的關係和夥伴關係已經建立並繼續擴大 - 但有點期待並說，這些是導致最大商業成功的伙伴關係，這就是我們需要繼續投資。你好嗎——計算投資回報率和投資的方法是什麼？

In the short-term, we're measuring on pilots closed. Looking in the medium term, we're measuring it on consumption, okay? The reason that AWS and Google and others are partnering with us and the hyperscale is they're partnering with us is because we accelerate consumption. In other words, the customer doesn't have to spend 2 years building the AI ML application or at which time they're not consuming a lot of CPU cycles or building the supply risk application or whatever it might be they can install it so consumption happen fast. That's what these guys are interested in, okay? They're interested in CPU cycles and storage hours. Because they're are short term or measured in pilots, medium and long term were measured in these CPU hours.

在短期內，我們正在對關閉的飛行員進行衡量。從中期來看，我們正在用消費來衡量它，好嗎？ AWS、谷歌和其他公司與我們合作的原因以及超大規模他們與我們合作是因為我們加速了消費。換句話說，客戶不必花費 2 年時間來構建 AI ML 應用程序，或者在那時他們不會消耗大量 CPU 週期或構建供應風險應用程序或任何他們可以安裝的應用程序，因此消費發生得很快。這就是這些人感興趣的，好嗎？他們對 CPU 週期和存儲時間感興趣。因為它們是短期的或在試點中衡量的，所以中期和長期是在這些 CPU 小時數中衡量的。

Terrific. And then just on the kind of macro kind of commentary, you certainly kind of early kind of talking about some of the headwinds. And again, you're talking about those headwinds turning into tailwinds. Do you have kind of -- are you seeing enough of signs to kind of confidently say that things are turning around? Or is it still -- we're at a point where things could go in either direction?

了不起。然後就那種宏觀的評論，你肯定有點早期談論一些逆風。再一次，你在談論那些逆風變成順風。你有沒有——你是否看到足夠多的跡象可以自信地說事情正在好轉？或者它仍然 - 我們正處於事情可能朝任一方向發展的地步？

Well, you're an expert at this and we're not, Sanjit (sic) [Arvind]. But the -- we were one of the earliest I think, to call that it was really ugly out there and then everybody else compiled on, then everybody else started doing layoffs, 5%, 10%, 20% at a time and those aren't over yet. All I can say is what we're seeing now is dramatically different. And I was -- I mean, I didn't say that to pump our stock price. I was just telling you guys what was really going on in the market, okay? And I'm telling you what's really going on in the market.

嗯，你是這方面的專家，而我們不是，Sanjit (sic) [Arvind]。但是——我認為我們是最早的公司之一，我們說那裡真的很醜陋，然後其他人都在收集，然後其他人開始裁員，一次裁員 5%、10%、20%，這些都是還沒結束我只能說，我們現在看到的是截然不同的。我是——我的意思是，我這麼說並不是為了推高我們的股價。我只是告訴你們市場上到底發生了什麼，好嗎？我告訴你市場上到底發生了什麼。

Now I don't know whether this is a femoral or whether this is going to -- whether this is going to be sustained. This is -- but I think that the way this looks to me is sooner or later, the Fed is going to take its foot off the brakes okay? When the Fed takes its foot off the brakes, this will be a cash positive rapidly growing business. okay? And I think we're going to be off to the races.

現在我不知道這是否是股骨，或者這是否會 - 這是否會持續。這是——但我認為在我看來，美聯儲遲早會鬆開剎車，好嗎？當美聯儲鬆開剎車時，這將是一項現金正增長的快速增長業務。好的？我想我們要開始比賽了。

Now I don't know you guys have big minds that know when the Fed is going to take it off the brakes. I don't know when that is, okay? But when that is, that's what we will be. Whether this thing could take a dip or not, that's beyond my pay grade buddy. I just know that right now, something has changed.

現在我不知道你們是否有頭腦知道美聯儲何時會鬆開剎車。我不知道那是什麼時候，好嗎？但到那時，我們就會成為那樣。這件事是否會有所下降，這超出了我的薪酬等級夥伴的範圍。我只知道現在，有些事情發生了變化。

Our next question comes from the line of Kingsley Crane with Cantor (sic) [Cannaccord].

我們的下一個問題來自 Kingsley Crane 與 Cantor (sic) [Cannaccord] 的系列。

Tom, so I appreciated your comments on the applicability of the Generative AI product outside of the typical customer base. But we just think about the core customer base, what do you think the potential is for Generative AI to drive new trials? Or is this primarily a product that would work best as sort of second, third or fourth product within the base?

湯姆，所以我感謝您對生成式 AI 產品在典型客戶群之外的適用性的評論。但我們只考慮核心客戶群，您認為生成式人工智能推動新試驗的潛力是什麼？或者這主要是一種最適合作為基地中第二、第三或第四種產品的產品嗎？

I tell you, go look at the demo. People get awfully excited about it. And I just came back from somewhere. I know where Barcelona, okay, I just got off a plane from Barcelona, and showed it to a bunch of people, Ed and I. And it's a pretty exciting product. It's something brand new. And you got to -- just go take a look at it. It's hard to describe.

我告訴你，去看demo。人們對此非常興奮。我剛從某個地方回來。我知道巴塞羅那在哪裡，好吧，我剛從巴塞羅那下飛機，並向一群人展示了它，Ed 和我。這是一個非常令人興奮的產品。這是全新的東西。而且你必須 - 去看看它。很難描述。

And I think it will make our products more attractive. It will make it easier for people to use, easier to handle change management, which is everything in enterprise applications. And so -- and it will, I think, substantially differentiate us in the market. Go take a look at this user interface compared to what SAP, Oracle, Salesforce and everybody else has in the market, which is just kind of a cheap copy of the Cboe version 7 architecture that Ed and I embedded in 2002. And this is something very different, and the excitement appears to be improbable.

我認為這將使我們的產品更具吸引力。它將使人們更容易使用，更容易處理變更管理，這是企業應用程序中的一切。所以——我認為，這將使我們在市場上脫穎而出。看看這個用戶界面與 SAP、Oracle、Salesforce 和市場上其他所有人的對比，這只是我和 Ed 在 2002 年嵌入的 Cboe 版本 7 架構的廉價副本。這就是非常不同，興奮似乎是不可能的。

We've seen the demo we're definitely really impressed by it. And so one for Juho. Wherever growth ends up next year in fiscal '24, just want to think a little bit more about the balance of existing customer expansion and then the net new customer deals, like how much of the ramp in trial conversions are we factoring into growth next year?

我們已經看過演示，絕對給我們留下了深刻的印象。 Juho 也是如此。無論明年 24 財年的增長在哪裡結束，只想多考慮一下現有客戶擴展的平衡，然後是淨新客戶交易，比如我們將在明年的增長中考慮多少試用轉換的增長？

Okay. Great question. So I would suggest that you take a look at the assumptions that we provided and you model out based on the actuals that we have provided. And that should kind of give you a good idea as to where we should be as it relates to the consumption-based business and happy to chat with you if you have any additional questions on it.

好的。很好的問題。因此，我建議您查看我們提供的假設，然後根據我們提供的實際情況進行建模。這應該讓你知道我們應該在哪裡，因為它與基於消費的業務有關，如果你有任何其他問題，我們很樂意與你聊天。

And our next question comes from the line of Pat Walravens with JMP Securities.

我們的下一個問題來自 JMP Securities 的 Pat Walravens。

Great. Tom, one for you first. Can you just sort of give us an overview of how the business with the DoD is going? And maybe as a touch point to that, in December 2021, you guys signed the $500 million production other transaction agreements. How much of that is the DoD actually taken down? How much of the $500 million do they spend?

偉大的。湯姆，先給你一個。您能否向我們簡要介紹一下與國防部的業務進展情況？也許作為一個接觸點，在 2021 年 12 月，你們簽署了價值 5 億美元的生產其他交易協議。國防部實際取消了多少？他們花費了 5 億美元中的多少？

A good question. Pat, and I don't know the answer. We have 2 agreements like that. One is for $500 million is 1 for $100 million. And I'm not sure I can tell you that our business with the DoD is looking very promising. There's -- I think we had -- we hosted -- Ed and I hosted, I think, A very large number of CIOs from DoD like 2 weeks ago on Army, Navy, Air Force, Cyber Command, Space comp, Marines, National Guard, they were all in our office. And there are lots of discussions going on about some very significant projects. And so DoD is looking very promising. But I don't know the answer to how much of that deal we've taken out. And we do have a proposal in front of one of the agencies that will consume a lot of it, and we'll see what happens.

一個好問題。帕特，我不知道答案。我們有 2 個這樣的協議。一個是 5 億美元是 1 個是 1 億美元。而且我不確定我能否告訴你我們與國防部的業務看起來很有前途。有——我想我們已經——我們主持了——埃德和我主持了，我想，兩週前來自國防部的大量首席信息官在陸軍、海軍、空軍、網絡司令部、太空部隊、海軍陸戰隊、國家警衛，他們都在我們辦公室。並且有很多關於一些非常重要的項目的討論正在進行。所以國防部看起來很有前途。但我不知道我們已經取消了多少交易的答案。我們確實在其中一個機構面前提出了一項提案，該提案將消耗大量資金，我們將看看會發生什麼。

Hopefully, that gets done. All right. And then Juho, I just wanted to -- this is very simple math there. But if I look at your Slide 20 I mean if I take your average TCV and I multiply it by the number of deals that you have for each quarter on the chart, I get your total bookings, right?

希望這能完成。好的。然後 Juho，我只是想——這是非常簡單的數學。但是，如果我看一下您的幻燈片 20，我的意思是如果我將您的平均 TCV 乘以圖表上每個季度的交易數量，我就會得到您的總預訂量，對嗎？

Yes. I think Pat that sounds about the right math, yes.

是的。我認為帕特這聽起來是正確的數學，是的。

Right. That seems reasonable. So you had 27 deals in Q3 at $1.9 million. So that's $51 million in bookings. And you had 20 deals in Q -- basically a year ago, right, at $5.6 million each, $112 million. So booking has been cut by more than half. Is that a fair assessment of what's really going on and...

正確的。這似乎是合理的。所以你在第三季度有 27 筆交易，價值 190 萬美元。所以這是 5100 萬美元的預訂額。你在 Q 有 20 筆交易——基本上是一年前，對，每筆 560 萬美元，1.12 億美元。因此，預訂量減少了一半以上。這是對真正發生的事情的公平評估嗎……

Let's also put this in -- I'll let Juho answer this, but I understand a year ago, the deals were $10 million, $20 million, $30 million, $40 million, $50 million deals. This quarter, as a result to consumption-based pricing, the $0.5 million trials. So then this gets into, as Juho explained. So you Juho, take it from there, okay? But so [we're closing a] a completely different kind of deal. And in the quarters going forward, you'll see we're closing a lot, lot more of them. But we're not closing our old model that used to be $10 million, $20 million, $50 million, $20 million, $30 million, $40 million, $50 million. We don't do those anymore. We're doing $0.5 million deals. Juho?

讓我們也把這個放進去——我會讓 Juho 回答這個問題，但我知道一年前的交易是 1000 萬美元、2000 萬美元、3000 萬美元、4000 萬美元、5000 萬美元的交易。本季度，由於基於消費的定價，50 萬美元的試驗。正如 Juho 解釋的那樣，這就進入了。所以你 Juho，從那裡拿走，好嗎？但是，[我們正在完成] 一項完全不同的交易。在未來的幾個季度裡，你會看到我們關閉了很多，更多。但我們並沒有關閉我們以前的 1000 萬美元、2000 萬美元、5000 萬美元、2000 萬美元、3000 萬美元、4000 萬美元、5000 萬美元的舊模型。我們不再這樣做了。我們正在進行 50 萬美元的交易。巨虎？

Yes. Thanks, Tom. Yes, Pat, I think Tom summarized it perfectly. This is totally expected, and this is a direct result of the consumption-based pricing shift 2 quarters ago.

是的。謝謝，湯姆。是的，Pat，我認為 Tom 總結得很完美。這完全在意料之中，這是兩個季度前基於消費的定價轉變的直接結果。

Right. So I mean it's great transparency, right? Most companies don't give us their total bookings. So as long as you guys keep getting these slides, we're going to be able to keep doing the math. When do you think we start seeing that go up?

正確的。所以我的意思是透明度很高，對吧？大多數公司不會向我們提供他們的總預訂量。因此，只要你們繼續獲取這些幻燈片，我們就能夠繼續進行計算。你認為我們什麼時候開始看到它上升？

So if you now -- since you have that chart open, I'm glad to hear it, go to Slide 18. And on Slide 18, what you see is the same chart that we provided to the last 3 quarters that shows the kind of the expected consumption revenue model ramp-up versus subscription ramp-up. So this is an indicative of what we would expect to see. And as I've outlined, we believe we are in our model that we've outlined to you guys, so we can kind of figure out from here when we should start seeing the ramp up.

所以如果你現在 - 因為你打開了那個圖表，我很高興聽到它，請轉到幻燈片 18。在幻燈片 18 上，你看到的是我們提供給過去 3 個季度的相同圖表，顯示了那種預期消費收入模型增長與訂閱增長的對比。因此，這表明了我們期望看到的情況。正如我所概述的那樣，我們相信我們處於我們向你們概述的模型中，因此我們可以從這裡算出什麼時候應該開始看到增長。

Yes, 7 quarters through? And where are we now?

是的，7 個季度結束了嗎？我們現在在哪裡？

So we would have started 2 quarters ago. So based on this, we are at -- first quarter, second, we're on quarter 3.

所以我們會在 2 個季度前開始。因此，基於此，我們處於 - 第一季度，第二季度，我們處於第三季度。

Our next question comes from the line of Arsenije Matovic with Wolfe Research.

我們的下一個問題來自 Arsenije Matovic 與 Wolfe Research 的合作。

This is Arsenije on for Gal. It seems like this is now 2 quarters of coming in above expectations that were initially communicated for progress in the pilot initiative. Should we think about these pilots coming in faster than your initial communication suggested, given the more positive macro outlook you're seeing relative to the first quarter? And then I had one brief follow-up.

這是 Gal 的 Arsenije。現在似乎有 2 個季度超出了最初為試點計劃的進展而傳達的預期。鑑於您看到的相對於第一季度更為積極的宏觀前景，我們是否應該考慮比您最初的溝通建議更快地進行這些試點？然後我進行了一次簡短的跟進。

I think, Arsenije, like I said, the original assumptions that we provided are still valid. We're seeing great results. We're very excited with the traction with our partners and the number of deals that we're tracking but we're quite confident with our model at this time.

我認為，Arsenije，正如我所說，我們提供的最初假設仍然有效。我們看到了很好的結果。我們對合作夥伴的吸引力以及我們正在跟踪的交易數量感到非常興奮，但我們目前對我們的模型非常有信心。

Got it. That's helpful. And then what caused the large services contribution from Baker Hughes in the quarter? It looks like it was $8.6 million. Did this contribute to the above 90% services gross margin? And can you remind us how COGS associated with Baker Hughes' service revenue is accounted for?

知道了。這很有幫助。那麼是什麼導致貝克休斯在本季度做出巨大的服務貢獻？看起來是 860 萬美元。這是否促成了上述 90% 的服務毛利率？您能否提醒我們如何計算與貝克休斯服務收入相關的銷貨成本？

Perfect. So I think you missed the initial call or initial question from Mike who asked this, and I explained the gross margin impact. But just as a quick recap for you, we have various types of professional services, and we have highly skilled workforce, and we're able to command good premium on those services. And Baker Hughes is one of customers, many customers whom we -- which provide professional services.

完美的。所以我想你錯過了邁克問這個問題的最初電話或最初問題，我解釋了毛利率的影響。但作為對您的快速回顧，我們提供各種類型的專業服務，我們擁有高技能的員工隊伍，我們能夠在這些服務上獲得很高的溢價。貝克休斯是客戶之一，我們為許多客戶提供專業服務。

Operator, we'll just take one last quick call again.

接線員，我們再接最後一個快速電話。

And our last question is a follow-up question from the line of Michael Turits with KeyBanc.

我們的最後一個問題是 Michael Turits 與 KeyBanc 的後續問題。

And the guide for next quarter of the $70 million to $72 million, you have that big bump in services, which seem to have come back faster than I think we might have expected. Any sense you can give us for what the trends are for both subscription and services into next quarter? The subscription trend down, flat services to high?

下個季度的 7000 萬至 7200 萬美元的指南，你在服務方面有很大的提升，這似乎比我認為我們預期的要快。您能告訴我們下一季度訂閱和服務的趨勢是什麼嗎？訂閱趨勢下行，平板服務要高嗎？

I think we've historically provided that our target is between 10% and 20%, and I think we're going to be in that range quite nicely.

我認為我們歷來規定我們的目標在 10% 到 20% 之間，我認為我們會很好地處於這個範圍內。

And I'm showing no further questions. And I'd like to hand the conference back to Juho Parkkinen for any further remarks.

我沒有再提出任何問題。我想將會議交還給 Juho Parkkinen，請他發表進一步的評論。

Awesome. So thanks, everybody, for joining for our third quarter conference call, and we really look forward to chatting with you guys all in the future, and thank you for your time.

驚人的。因此，感謝大家參加我們的第三季度電話會議，我們真的很期待將來與大家聊天，感謝您的寶貴時間。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。