Bandwidth Inc. (BAND) 2018 Q4 法說會逐字稿

Greetings, and welcome to Bandwidth Fourth Quarter and Full year Earnings Results Conference Call (Operator Instructions) As a reminder, this conference is being recorded.

各位好，歡迎參加 Bandwidth 第四季及全年財報結果電話會議（接線員指示）。提醒各位，本次會議將被錄音。

I would now like to turn the conference over to your host, Mr. Marc Griffin. Please go ahead.

現在我想把會議交給本次主持人 Marc Griffin 先生。請開始。

Thank you, good afternoon, and welcome to Bandwidth Fourth Quarter and Full Year 2018 Earnings Call. Today, we'll be discussing the results announced on their press release issued after the market close.

謝謝，各位午安，歡迎參加 Bandwidth 2018 年第四季及全年財報電話會議。今天我們將討論在收盤後發布之新聞稿中所公告的結果。

With me on the call this afternoon is David Morken, Bandwidth's Chief Executive Officer; and Jeff Hoffman, Chief Financial Officer of Bandwidth. They will begin with prepared remarks and then we'll open up the call for Q&A.

今天下午與我一同參與電話會議的有 Bandwidth 執行長 David Morken，以及 Bandwidth 財務長 Jeff Hoffman。他們將先進行事先準備的發言，之後我們會開放問答。

During the call, we will make statements related to our business that may be considered forward-looking, including statements concerning our financial guidance for the first fiscal quarter of 2019 and full year of 2019. Our plan is to execute on our growth strategy, our ability to maintain existing and acquiring new customers and other statements regarding our plans and prospects.

在本次電話會議中，我們將就公司業務發表若干可能被視為前瞻性陳述的說明，包括關於 2019 會計年度第一季及 2019 全年之財務指引的陳述。我們的計畫是執行成長策略、維持既有客戶並取得新客戶的能力，以及其他關於我們計畫與前景的陳述。

Forward-looking statements may often be identified with words, such as, we expect, we anticipate or upcoming. These statements reflect our views only as of today and should not be considered our views as of any subsequent date.

前瞻性陳述通常可由「我們預期」、「我們預估」或「即將」等字眼辨識。這些陳述僅反映我們截至今日的觀點，不應被視為任何後續日期的觀點。

We undertake no obligation to update or revise these forward-looking statements. Forward-looking statements are not promises or guarantees of future performance and are subject to a variety of risks and uncertainties that could cause the actual results to differ materially from our expectations.

我們不承擔更新或修訂這些前瞻性陳述的任何義務。前瞻性陳述並非對未來績效的承諾或保證，且受到多項風險與不確定性影響，可能導致實際結果與我們的預期有重大差異。

For a discussion of material risks and other important factors that could affect our actual results, please refer to those contained in our 10-K filing on February 26, 2018, as updated by our other SEC filings, all of which are available on the Investor Relations section of our website at bandwidth.com and on the SEC's website at sec.gov.

關於可能影響我們實際結果之重大風險及其他重要因素的討論，請參閱我們於 2018 年 2 月 26 日提交的 10-K 文件（並由我們其他向 SEC 提交的文件更新），上述文件均可於我們網站 bandwidth.com 的投資人關係專區以及 SEC 網站 sec.gov 查閱。

Finally, 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 issued after the market close today, which is located on our website at bandwidth.com and on the SEC's website at sec.gov.

最後，在今天的電話會議過程中，我們將提及若干非 GAAP 財務衡量指標。GAAP 與非 GAAP 指標之調節表已包含於我們今日收盤後發布的新聞稿中，該新聞稿可於我們網站 bandwidth.com 以及 SEC 網站 sec.gov 查閱。

With that, let me turn the call over to David.

接下來，讓我把電話交給 David。

Thank you, Marc, and thank you to everyone joining us on our fourth quarter and full year 2018 earnings call. Since we are reporting results for our first full year as a public company, I want to begin by thanking God, all our band mates and their families, our customers and current investors. We are proud that we delivered an excellent first full year as a public company, and know it was only possible because of the creative work and commitment of many people, including those on this call.

謝謝你，Marc，也感謝各位參加我們 2018 年第四季及全年財報電話會議。由於這是我們成為上市公司後第一個完整年度的財報，我想先感謝上帝、所有我們的「band mates」及其家人、我們的客戶與現有投資人。我們很自豪在成為上市公司後的第一個完整年度交出優異成績，也深知這只有在許多人的創意工作與投入下才有可能，包括今天在電話上的各位。

We are also excited to finish the year so strong with our fourth quarter performance well above our guidance.

我們也很興奮能以如此強勁的第四季表現為全年畫下句點，且表現遠高於我們的指引。

During this past year, we achieved remarkable results by serving our enterprise customers well. Our total revenue for the year exceeded $200 million. We ended this past quarter with 26% CPaaS revenue growth year-over-year.

在過去一年中，我們透過良好服務企業客戶而取得顯著成果。我們全年總營收超過 2 億美元。本季結束時，我們的 CPaaS 營收年增 26%。

Our solid results continue to be driven by expanding our relationships with existing enterprise customers. Demand for our services has been solid throughout the year, and in the fourth quarter, it was again driven by a diverse set of customers using the full breadth of our offerings. Our unique combination of software APIs and a nationwide vertically integrated All-IP Voice Network resonates clearly with enterprise customers.

我們穩健的成果持續來自於擴大與既有企業客戶的合作關係。我們的服務需求全年保持穩健，而在第四季，需求再次由多元客戶所帶動，這些客戶使用了我們產品與服務的完整廣度。我們獨特結合軟體 API 與全國性、垂直整合的全 IP 語音網路，對企業客戶具有明確吸引力。

During our fourth quarter, we developed deeper relationships with existing customers and had several notable new customer wins. For example, an existing customer who is a fast-growing leader in modern enterprise video and voice conferencing and who provides services to clients such as Uber, Slack, Sonus and many others, recently announced a cloud phone system solution that will be available nationwide in 2019. Bandwidth's APIs already power the voice calling components of the company's videoconferencing platform, and we are excited that they will be using us to power their next-generation enterprise cloud phone system solution.

在第四季期間，我們與既有客戶建立更深的合作關係，並取得數個值得一提的新客戶勝利。例如，一位既有客戶是現代企業視訊與語音會議領域快速成長的領導者，為 Uber、Slack、Sonus 等眾多客戶提供服務；該公司近期宣布一項雲端電話系統解決方案，將於 2019 年在全美推出。Bandwidth 的 API 已為該公司視訊會議平台中的語音通話元件提供支援；我們也很期待他們將使用我們來驅動其下一代企業雲端電話系統解決方案。

Our software platform is well-suited for creative teams such as this one to launch in the scale, dynamic voice experiences. Enterprises do not have to choose between speed and high-quality voice and messaging. The functionality of our APIs and the stability of our IP Voice Network gives them both.

我們的軟體平台非常適合像這樣富有創意的團隊，以規模化方式推出動態的語音體驗。企業不必在速度與高品質語音及訊息之間做取捨。我們 API 的功能性與 IP 語音網路的穩定性，讓他們兩者兼得。

During the quarter, we also started a new relationship with one of the fastest-growing cloud strategy companies that serves more than 1,500 enterprises, including many of the world's most recognizable brands. The company offers enterprises, cloud communication solutions, including cloud contact centers, cloud phone systems and unified communication services. Experiencing explosive growth, the company was looking for a provider that could effectively and efficiently scale with their business. Bandwidth met their criteria as a single platform that could deliver a complete communication suite. Our flexible voice messaging and 9-1-1 APIs enable the customer to develop their services rapidly, reliably, and at excellent economic value at scale. And as is often the case among large enterprises who work with us, this customer placed a premium on our exceptional, dedicated enterprise customer support.

本季期間，我們也與一家成長最快的雲端策略公司之一建立了新的合作關係，該公司服務超過 1,500 家企業，其中包含許多全球最知名的品牌。該公司為企業提供雲端通訊解決方案，包括雲端聯絡中心、雲端電話系統與整合通訊服務。在爆發性成長之下，該公司正在尋找能夠有效且高效率隨其業務擴張的供應商。Bandwidth 符合其條件，作為可提供完整通訊套件的單一平台。我們彈性的語音、訊息與 9-1-1 API，使客戶能以快速、可靠且具優異規模經濟效益的方式開發其服務。而且，如同大型企業與我們合作時常見的情況，該客戶也高度重視我們卓越且專屬的企業客戶支援。

Teams within the messaging industry are driving more demand for Bandwidth's enterprise messaging services. Wireless carriers, our sunsetting shared short-code messaging and developing new solutions that balance the urgent need to protect consumers from unwanted messages with reliable deliverability by filtering, blocking and raising rates.

訊息產業內的團隊正推動對 Bandwidth 企業訊息服務的更多需求。無線電信業者正逐步淘汰我們的共享短碼簡訊服務，並開發新的解決方案，透過過濾、封鎖與提高費率，在迫切需要保護消費者免受不受歡迎訊息影響與可靠送達之間取得平衡。

Bandwidth's enterprise solution, which enables application-to-person messaging on toll-free numbers is available today, is designed to protect consumers from spam and is not impacted by these impending industry changes.

Bandwidth 的企業解決方案可在免付費號碼上提供應用程式對個人（A2P）訊息傳送，現已可用；其設計旨在保護消費者免於垃圾訊息，且不受這些即將到來的產業變動影響。

Unlike short codes, which enabled only one-way messaging to a customer, our service enables full customer engagement with two-way text messaging and voice communications.

不同於短碼僅能對客戶進行單向訊息傳送，我們的服務可透過雙向簡訊與語音通訊，實現完整的客戶互動。

During the fourth quarter, we saw a strong enterprise interest in our enterprise-grade A-to-P toll-free SMS. We added a large new customer that provides a customer loyalty and marketing platform to 14,000 local businesses and more than 30 million people. The company was previously experiencing deliverability issues with short codes for customer loyalty programs within their rapidly growing user community. The company will now use Bandwidth's enterprise toll-free SMS solution and toll-free numbers to empower their merchant customers to engage in full loyalty program conversations with end-users.

在第四季期間，我們看到企業對我們企業級 A2P 免付費 SMS 有強勁興趣。我們新增了一位大型新客戶，該公司為 14,000 家在地商家與超過 3,000 萬人提供客戶忠誠與行銷平台。該公司先前在其快速成長的使用者社群中，針對客戶忠誠計畫使用短碼時曾遭遇送達率問題。該公司現在將使用 Bandwidth 的企業免付費 SMS 解決方案與免付費號碼，讓其商家客戶能與終端使用者就忠誠計畫進行完整的對話互動。

Our messaging products offer dedicated throughput, high economic value at scale and excellent customer support.

我們的訊息產品提供專屬吞吐量、具規模的高經濟效益，以及優異的客戶支援。

I want to now turn to the investments we made to expand our team in 2018. During last year, 233 new band mates joined us from many local and national software and technology companies. We grew our team by 62% from 378 to 611. We more than doubled our sales and marketing team from 63 to 150, which now includes 45 enterprise hunters and 8 strategic sales reps.

接下來我想談談我們在 2018 年為擴編團隊所做的投資。去年共有 233 位新的 band mates 加入我們，來自許多在地與全國性的軟體與科技公司。我們的團隊規模成長 62%，從 378 人增加到 611 人。我們的銷售與行銷團隊人數增加逾一倍，從 63 人成長到 150 人，其中包含 45 位企業獵戶型業務（enterprise hunters）與 8 位策略銷售代表。

In addition, we expanded our sales and marketing team by adding morally development reps to directly support our inside sales representatives. During 2018, we also grew both our technology and our R&D teams from 66 to 156 to develop and broaden our platform and meet growing market demand. The majority of these hires were software developers and engineers who will accelerate the launch of planned services on our platform. In 2019, we will expand our toll-free voice platform and network to add many new call management capabilities.

此外，我們也透過增聘業務開發代表，擴充銷售與行銷團隊，以直接支援我們的內勤銷售代表。在 2018 年，我們也將技術團隊與研發團隊從 66 人擴增至 156 人，以開發並擴展我們的平台並滿足不斷成長的市場需求。這些招募多數為軟體開發人員與工程師，將加速我們在平台上推出既定規劃的服務。在 2019 年，我們將擴展免付費語音平台與網路，新增多項通話管理功能。

This will allow us to better serve our customers, especially those with contact center applications. We also plan to expand our platform's messaging capabilities to include additional A-to-P services, which will assist our customers who are increasingly using messaging within their customer engagement strategy.

這將使我們能更好地服務客戶，特別是使用聯絡中心應用的客戶。我們也計畫擴充平台的訊息功能，納入更多 A2P 服務，以協助那些在客戶互動策略中日益增加使用訊息功能的客戶。

Furthermore, we plan to expand our platforms emergency call APIs to support mobile workforce use cases by enabling real-time notifications of location-specific emergencies. These enhancements support both regulatory compliance and our enterprise customers need to direct first responders quickly and precisely.

此外，我們計劃擴展我們平台的緊急呼叫 API，以支援行動工作人力的使用情境，透過啟用針對特定地點緊急事件的即時通知。這些強化功能同時支援法規遵循，以及滿足我們企業客戶快速且精準引導第一線應變人員的需求。

Last, we plan to continually improve our platforms fraud and detection capabilities, and will continue with others to lead the industry's effort to combat fraudulent robocalling.

最後，我們計劃持續提升我們平台的防詐與偵測能力，並將持續與其他業者合作，引領產業打擊詐騙式自動撥號電話（robocalling）的努力。

I'd now like to take a moment to reiterate our mission to develop and deliver the power to communicate.

我現在想花一點時間重申我們的使命：開發並交付溝通的力量。

This past year marked our 10th-year building the future of voice. The software platform and nationwide network we built has become the foundation on which the greatest creative teams launch and scale dynamic voice experiences. IDC estimates that the global CPaaS market opportunity will grow from $2 billion in 2017 to $10.9 billion by 2022. Communications have reached a tipping point as enterprises are harnessing software-powered voice and messaging to meet customer expectations and fulfill mission-critical customer experiences. The enterprise is rapidly embedding voice messaging and 9-1-1 into applications we use every day where we live, work and play.

過去一年是我們打造語音未來的第 10 年。我們建立的軟體平台與全國性網路，已成為最具創意的團隊用以推出並擴展動態語音體驗的基礎。IDC 估計，全球 CPaaS 市場機會將從 2017 年的 20 億美元成長至 2022 年的 109 億美元。隨著企業運用軟體驅動的語音與訊息來滿足客戶期望並實現關鍵任務的客戶體驗，通訊已達到臨界點。企業正快速將語音、訊息與 9-1-1 嵌入我們每天在生活、工作與娛樂中使用的應用程式。

Bandwidth continues to be well positioned to meet the end-to-end needs of our enterprise customers. We are growing our customer base, expanding our existing relationships, selling to new organizations, innovating with our platform and developing our international offerings. And regarding international, during 2018, our international strategy was to recruit great leadership and to work with our largest customers to validate and model the legal, regulatory and commercial functions required for serving them well in their highest demand countries. We spent the year learning how we could expand our domestic platform and IP voice infrastructure in other countries to support this growth with higher reliability, larger scale and greater economic value for our customers.

Bandwidth 仍然具備良好定位，可滿足我們企業客戶端到端的需求。我們正在擴大客戶基礎、深化既有合作關係、銷售給新的組織、以平台持續創新，並發展我們的國際產品。在國際方面，2018 年我們的國際策略是延攬優秀領導人才，並與我們最大的客戶合作，以驗證並建模在其需求最高的國家中，為其提供優質服務所需的法律、監管與商業職能。我們花了一整年學習如何將我們的國內平台與 IP 語音基礎設施擴展到其他國家，以更高的可靠性、更大的規模，並為客戶帶來更高的經濟價值來支援這項成長。

And today, we are excited to announce that we have reached an agreement in principle with one of our largest voice customers to expand our platform and network into the U.K. and the EU to support an important product launch.

今天，我們很高興宣布：我們已與我們最大的語音客戶之一達成原則性協議，將我們的平台與網路擴展至英國與歐盟，以支援一項重要產品上市。

We expect to begin providing service by the end of the first quarter, and we will continue to scale throughout 2019. I am very pleased with the progress of our international team. We now have a better understanding of the opportunities and challenges for important services in the highest usage countries and have moved from exploring to executing. Or said differently, Band's world tour has officially begun.

我們預期將在第一季末前開始提供服務，並將在 2019 年持續擴大規模。我對我們國際團隊的進展感到非常滿意。我們現在對於在使用量最高的國家提供重要服務所面臨的機會與挑戰有了更深入的理解，並已從探索階段轉向執行。換句話說，Band 的世界巡迴正式開始了。

Overall, 2018 was a great year for Bandwidth. Once again, thank you to those who have been most responsible for our continued success. To our many customers and our investors, thank you for your continued trust. To our band mates, many of who joined us during the year, thank you for your commitment to each other, to our customers and to your creative work.

整體而言，2018 年對 Bandwidth 來說是非常出色的一年。再次感謝那些對我們持續成功貢獻最大的夥伴。感謝我們眾多客戶與投資人持續的信任。也感謝我們的 band mates（團隊夥伴），其中許多人是在今年加入我們，謝謝你們對彼此、對客戶以及對創意工作的投入。

I'm extremely proud of everything we have accomplished in 2018. We are committed to achieving our objectives together in 2019 and beyond.

我為我們在 2018 年所完成的一切感到無比自豪。我們承諾在 2019 年及未來與大家一起達成我們的目標。

With that, let me turn the call over to Jeff.

接下來，我把電話會議交給 Jeff。

Thanks, David, and good afternoon to everyone on the call. Today, I will review our fourth quarter 2018 financial results, according to the historical revenue recognition standard of ASC 605. In addition, we will discuss our financial guidance for the first quarter and the full year 2019 according to the new standard ASC 606. As an emerging growth company, we are adopting 606 starting January 1, 2019, under the modified retrospective method, and do not expect any material changes to our revenue recognition, nor our sales commissions accounting.

謝謝你，David，也向所有參與本次電話會議的各位致意。今天，我將依照歷史收入認列準則 ASC 605，回顧我們 2018 年第四季的財務結果。此外，我們也將依照新準則 ASC 606，討論我們對 2019 年第一季與 2019 全年的財務指引。作為新興成長公司，我們將自 2019 年 1 月 1 日起採用 606，並採修正追溯法；我們預期不會對收入認列或銷售佣金會計處理造成任何重大變動。

Based on our evaluation to date, we expect the revenue-related impact to result in a reduction to retained earnings between approximately $100,000 and $200,000.

根據我們目前為止的評估，我們預期與收入相關的影響將使保留盈餘減少約 10 萬至 20 萬美元。

Our fourth quarter was an outstanding finish to a great year, and as David mentioned earlier, we are pleased to report that we, once again, exceeded the high end of all of our guiding metrics.

我們第四季以非常亮眼的表現為精彩的一年畫下句點；如同 David 先前提到的，我們很高興再次報告：我們再度超越所有指引指標區間的上緣。

We continue to see good momentum across our entire product line and over a diverse set of enterprise customers. We believe this is a testament to the high value our customers place on the combination of our software and network platform as well as our team's enduring commitment to delivering world-class customer service.

我們持續在整體產品線以及多元的企業客戶群中看到良好動能。我們相信，這證明了客戶高度重視我們軟體與網路平台的組合價值，以及我們團隊長期以來致力提供世界級客戶服務的承諾。

During the fourth quarter, our total revenue was $52.3 million, up 23% year-over-year and $2.7 million above the high end of our guidance range. Within total revenue, CPaaS revenue was $44.1 million, up 26% year-over-year and $1.5 million above the high end of our guidance range.

第四季我們的總營收為 5,230 萬美元，年增 23%，並較我們指引區間上緣高出 270 萬美元。在總營收中，CPaaS 營收為 4,410 萬美元，年增 26%，並較我們指引區間上緣高出 150 萬美元。

Other revenue contributed the remaining $8.2 million of total revenue, which was $1.2 million above our implied guidance and more than the $7.5 million from the fourth quarter of 2017 due to higher indirect revenues.

其他營收貢獻了總營收其餘的 820 萬美元，較我們隱含指引高出 120 萬美元，且因間接營收較高，亦高於 2017 年第四季的 750 萬美元。

Our 121% dollar-based net retention rate in the fourth quarter was our best yet as a public company, and is well above the 111% we achieved in the fourth quarter of 2017. On average, our enterprise customers continue to spend $150,000 with us annually.

第四季我們以金額計算的淨留存率為 121%，是我們成為上市公司以來的最佳表現，也明顯高於 2017 年第四季的 111%。平均而言，我們的企業客戶每年持續在我們這裡支出 15 萬美元。

We ended the fourth quarter with 1,230 active CPaaS customers, up 75 sequentially from the end of third quarter. Active CPaaS customers increased 27% year-over-year, which was the highest level of growth reported during the year.

第四季結束時，我們有 1,230 位活躍 CPaaS 客戶，較第三季末增加 75 位。活躍 CPaaS 客戶年增 27%，為全年所報告的最高成長水準。

The acceleration in customer adds is due to robust demand for our offering and early indicators of payback on our increased investments in sales.

新增客戶數加速，主要來自我們產品服務的強勁需求，以及我們加大銷售投資後，初步顯現的回收成效指標。

Before moving on to profitability metrics, I would like to call out that I will be discussing non-GAAP results going forward. Our GAAP financial results, along with the full reconciliation between GAAP and non-GAAP results can be found in our earnings release. Our non-GAAP gross profit, which excludes stock-based compensation and depreciation was $24.9 million, yielding a gross margin of 48% for the fourth quarter of 2018 as compared to the $20.7 million and the 49% gross margin we achieved in the fourth quarter of 2017.

在進入獲利能力指標之前，我想先說明：接下來我將討論非 GAAP 結果。我們的 GAAP 財務結果，以及 GAAP 與非 GAAP 結果之間的完整調節表，皆可在我們的財報新聞稿中查閱。我們的非 GAAP 毛利（排除股份基礎給付與折舊）為 2,490 萬美元，2018 年第四季毛利率為 48%；相較之下，2017 年第四季我們達成的非 GAAP 毛利為 2,070 萬美元、毛利率為 49%。

The slight change in gross margin is primarily due to the timing of investments in the fourth quarter of 2018 as we continue to expand the reach and scale of our platform.

毛利率的些微變動，主要是由於 2018 年第四季投資時點的影響，因我們持續擴大平台的覆蓋範圍與規模。

Fourth quarter adjusted EBITDA was a loss of $0.1 million compared to $4.4 million of adjusted EBITDA for the same period last year, which reflects the increased investments we have made in research and development and sales and marketing to support our long-term growth objectives.

第四季調整後 EBITDA 為虧損 10 萬美元，相較去年同期調整後 EBITDA 為 440 萬美元；此差異反映我們為支持長期成長目標而在研發以及銷售與行銷方面增加的投資。

On a GAAP basis, we reported a net loss of $1.3 million or $0.07 per share based on 18.4 million weighted average basic shares outstanding during the fourth quarter of 2018.

按 GAAP 基礎，我們報告淨損 130 萬美元，或每股虧損 0.07 美元；2018 年第四季加權平均流通在外基本股數為 1,840 萬股。

Our non-GAAP net loss in the fourth quarter was $0.8 million or a loss of $0.04 per share based on 18.4 million weighted average basic shares outstanding. This is well above our guidance for the fourth quarter of a net loss of $0.28 to $0.30 per share.

第四季非 GAAP 淨損為 80 萬美元，或每股虧損 0.04 美元（以 1,840 萬股加權平均流通在外基本股數計算）。這明顯優於我們對第四季每股淨損 0.28 至 0.30 美元的指引。

The favorable non-GAAP net loss variance as compared to our guidance was primarily driven by gross profit and operating expense outperformance.

相較於指引，非 GAAP 淨損的有利差異主要由毛利與營業費用表現優於預期所帶動。

During the quarter, we generated $0.6 million in net cash from operations, and utilized $5.4 million in free cash flow, which includes $6 million of purchases of property and equipment as well as capitalized software development costs for internal use.

本季我們自營運活動產生淨現金 60 萬美元，並使用了 540 萬美元的自由現金流，其中包含 600 萬美元的不動產與設備採購，以及供內部使用的資本化軟體開發成本。

Turning to a quick summary of the financial results for the full year 2018. Total revenue was $204.1 million, up 25% year-over-year. Within total revenue, CPaaS revenue was $164.4 million, also up 25% year-over-year. The fundamentals of our business proved strong during a year of higher investment as we expanded our non-GAAP total gross margins from 48% to 49%.

接下來快速總結2018年全年的財務結果。總營收為2.041億美元，年增25%。在總營收中，CPaaS營收為1.644億美元，同樣年增25%。在我們加大投資、擴展業務的一年中，我們的業務基本面依然強勁，非GAAP總毛利率由48%提升至49%。

During 2018, adjusted EBITDA was $16.1 million and non-GAAP net income was $9 million or $0.43 per share based on 21.1 million weighted average diluted shares outstanding.

2018年，調整後EBITDA為1,610萬美元，非GAAP淨利為900萬美元，或按2,110萬股加權平均稀釋流通股計算每股0.43美元。

Turning to the balance sheet, as of December 31, 2018, Bandwidth had cash and equivalents plus marketable securities of $58.7 million.

再看資產負債表，截至2018年12月31日，Bandwidth持有的現金及約當現金加上有價證券為5,870萬美元。

Now, I'd like to finish with some thoughts regarding our financial outlook. In terms of CPaaS revenue, we expect the full year of 2019 to be in the range of $201 million to $203 million or up 23% at the midpoint of the range.

接下來，我想以一些對我們財務展望的看法作結。就CPaaS營收而言，我們預期2019年全年將落在2.01億至2.03億美元區間，以區間中點計算成長23%。

We expect total revenue for 2019 to be in the range of $231.5 million to $233.5 million, up 14% at the midpoint of the range. I want to remind everyone that other revenue in 2018 benefited from a $6.3 million onetime favorable impact related to the Verizon settlement.

我們預期2019年總營收將落在2.315億至2.335億美元區間，以區間中點計算成長14%。我想提醒大家，2018年的其他營收受惠於與Verizon和解相關的一次性有利影響6,300萬美元。

If we normalize for this onetime impact, total revenue for 2019 would be up 18% at the midpoint in the range. In addition to indirect revenue, other revenue includes our legacy services, which are expected to continue their slow decline in 2019.

若將這項一次性影響正常化，2019年總營收以區間中點計算將成長18%。除間接營收外，其他營收也包含我們的傳統（legacy）服務，預期在2019年仍將持續緩慢下滑。

We are excited about the opportunity in front of us, and we plan to continue our investment strategy to scale our CPaaS business in 2019. The investments in our platform, coupled with ongoing economies of scale and network effects will allow us to expand CPaaS gross margins in 2019.

我們對眼前的機會感到振奮，並計畫在2019年持續我們的投資策略，以擴大CPaaS業務規模。對平台的投資，加上持續的規模經濟與網路效應，將使我們能在2019年擴大CPaaS毛利率。

Total gross margin in 2018 benefited from the aforementioned onetime $6.3 million settlement that flow directly to our bottom line. We expect to achieve total gross margins consistent with 2018 by expanding CPaaS margins in the coming year, which should virtually offset the lack of onetime benefit from the Verizon settlement in 2019.

2018年的總毛利率受惠於前述一次性6,300萬美元的和解款，該款項直接挹注我們的最終獲利。我們預期在來年透過擴大CPaaS毛利率來達成與2018年一致的總毛利率，這應可幾乎抵銷2019年缺少Verizon和解一次性利益的影響。

As a result, non-GAAP earnings per share for 2019 is expected to be in the range of approximately a loss of $0.64 to $0.74 per share. This outlook assumes weighted average shares outstanding of approximately 19.9 million.

因此，2019年非GAAP每股盈餘預期約為每股虧損0.64至0.74美元。此展望假設加權平均流通股數約為1,990萬股。

Turning to our guidance for the first quarter of 2019, we expect CPaaS revenue to be in the range of $43.5 million to $44 million or up 13% year-over-year at the midpoint of the range at $43.8 million. This contributes to our total revenue guidance of $51 million to $51.5 million.

接著看我們對2019年第一季的指引，我們預期CPaaS營收將落在4,350萬至4,400萬美元區間，以區間中點4,380萬美元計算年增13%。這也構成我們總營收指引5,100萬至5,150萬美元。

I now want to provide some additional color to put our view of first quarter CPaaS revenue guidance in perspective. We are facing a challenging year-over-year comparison in the first quarter given our strong performance in the first quarter of 2018, which benefited from a high concentration of customers, scaling on our platform in a single quarter.

我現在想補充一些背景，以便更好理解我們對第一季CPaaS營收指引的看法。由於2018年第一季表現強勁（受惠於客戶高度集中、在單一季度於我們平台上快速擴張），因此我們在第一季面臨較具挑戰的年對年比較基期。

As you will recall, our CPaaS sequential revenue growth in the first quarter of 2018 was approximately $4 million, an all-time high, which is more than double the average sequential revenue growth of approximately $1.7 million we have experienced over the last 8 quarters. If we adjust for this outsized performance in the first quarter of 2018, CPaaS revenue for the first quarter of 2019 would be expected to be up 19% at the midpoint of the range.

各位應該記得，2018年第一季我們的CPaaS營收季增約400萬美元，創歷史新高，超過過去8個季度我們所經歷約170萬美元平均季增的兩倍。若就2018年第一季這種超常表現進行調整，則2019年第一季CPaaS營收以區間中點計算預期將年增19%。

Most importantly, when you consider that our full year CPaaS revenue growth guidance is 23% at the midpoint compared to 13% for the first quarter, it is clear that we expect year-over-year growth to reaccelerate in the second quarter through year-end 2019.

最重要的是，當你比較我們全年CPaaS營收成長指引以中點計算為23%，而第一季為13%時，很明顯我們預期年對年成長將在第二季起至2019年年底重新加速。

As we have discussed in the past, we have high visibility into our revenue growth since it is derived primarily from our existing customer base. In addition, we expect to see benefit from the increased pace of acquisition that we began to see in the fourth quarter of 2018. And we are excited about the favorable impact of our larger sales force coming to full productivity throughout 2019.

如同我們過去所討論的，由於我們的營收主要來自既有客戶基礎，因此我們對營收成長具有高度能見度。此外，我們預期將受惠於2018年第四季開始看到的更快客戶取得（acquisition）步伐。我們也對更大規模的銷售團隊在2019年逐步達到完全生產力所帶來的正面影響感到振奮。

Turning to the first quarter profitability. Non-GAAP earnings per share is expected to be in a loss in the range of $0.27 to $0.30 per share. This outlook assumes weighted average basic shares outstanding of approximately 19.8 million.

接著談第一季獲利能力。非GAAP每股盈餘預期將為每股虧損0.27至0.30美元。此展望假設加權平均基本流通股數約為1,980萬股。

In conclusion, we are very pleased with our 2018 performance. Our business fundamentals are strong. Bandwidth continues to be well positioned to capture an expanding CPaaS market as enterprises continue to embed voice, messaging, and 9-1-1 to deliver connected experiences that are core to the mission of these enterprise customers.

總結來說，我們對2018年的表現非常滿意。我們的業務基本面強勁。隨著企業持續嵌入語音、訊息與9-1-1，以提供連結式體驗（connected experiences），而這些體驗是企業客戶使命的核心，Bandwidth仍具備良好定位，可掌握持續擴大的CPaaS市場。

With that, I will now hand the call back to the operator for the Q&A portion of the call.

接下來，我將把電話會議交回給主持人，進入問答環節。

(Operator Instructions) Our first question comes from the line of Brent Bracelin with KeyBanc.

（主持人指示）我們的第一個問題來自KeyBanc的Brent Bracelin。

Love to maybe start with you David, here. If I look at kind of just the Q4 kind of results, it look like you beat the midpoint of CPaaS by close to $2 million, yet it looks like a lot of that came from the best net retention rate in over 2, 3 years. So as you think about the drivers of your existing customer base, the consumption pattern you're seeing, did you see kind of a onetime benefit from midterm elections? Was there other factors that drove it? Help us understand that the drivers of the strength here in Q4? I have several other questions.

David，我想先從你開始。如果我看第四季的結果，你們CPaaS看起來比指引中點高出接近200萬美元，但似乎其中很大一部分來自於過去2、3年來最佳的淨留存率。因此，當你思考既有客戶基礎的驅動因素、你們看到的使用/消費型態時，是否有看到期中選舉帶來的一次性助益？是否還有其他因素推動？請幫我們理解第四季強勁表現的驅動因素是什麼？我還有幾個其他問題。

You bet, Brent. The growth in Q4 was broad-based. We did add, as Jeff mentioned, 75 new customers during the quarter. But, of course, they take time to ramp. So Dubner was, as you said, high, but the breath of the growth is what was most characteristic of the quarter and no spikes to call out. The elections, certainly, does lift both some, but it's primarily messaging, I think, in its emphasis. And for us, there is a lift. But it doesn't explain the overall increase.

當然可以，Brent。第四季的成長是全面性的。如Jeff提到的，我們在該季度新增了75位新客戶。但當然，他們需要時間爬坡。所以如你所說，Dubner很高，但該季度最具代表性的特徵是成長的廣度，而且沒有任何需要特別點出的尖峰。選舉確實會帶來一些拉抬，但我認為主要體現在訊息（messaging）方面。對我們而言確實有拉抬。但這不足以解釋整體的增幅。

Got it. And then Jeff, as we think about just the CPaaS guide, obviously, I look back at the dollar change in your CPaaS business. Clearly, a big spike there, $3.9 million sequential increase in Q1 of last year. So I get the tough compare. But it also implies in order to get to 23% growth for the full year, you're going to have some big step ups in the CPaaS business in Q2, Q3 and Q4 to get to the 23% growth. And so I guess my question is, what's the line of sight that you have to a step up in Q2, Q3? Is it tied to the new customer win and rollout of the cloud phone system? Just trying to understand the tough compare in Q1, and then, what gives you confidence? You will see a big step up here in Q2, Q3, Q4?

了解。接著Jeff，談到CPaaS指引，顯然我回頭看你們CPaaS業務的金額變化。去年第一季季增3.9百萬美元，顯然是一次很大的跳升。所以我理解第一季的比較基期很硬。但這也意味著，若要達成全年23%的成長，你們在第二、第三與第四季的CPaaS業務必須有很大的階梯式提升，才能達到23%的成長。因此我的問題是，你們對第二、第三季出現跳升的可視性（line of sight）是什麼？這是否與新客戶贏單以及雲端電話系統的導入/上線有關？我只是想理解第一季的艱難比較基期，以及是什麼讓你們有信心。你們會在第二、第三、第四季看到很大的跳升？

Sure. Thanks for the question, Brent. Our plan in 2019, like 2018, is rooted in serving our customers well and expanding our enterprise relationships. But at the same time, we expect a more meaningful contribution from our larger sales force this year due to the investments that we made in 2018. We expect new customer sales to increase in 2019 in a cascading fashion as each quarterly new sales rep cohort comes online and reaches full productivity. The combination of these 2 factors informs the 23% CPaaS revenue guide and implies for that last 3 quarters that will grow in those quarters at an average of 26%.

當然。謝謝你的提問，Brent。我們2019年的計畫和2018年一樣，核心在於把客戶服務好，並擴大我們的企業客戶關係。但同時，由於我們在2018年所做的投資，我們預期今年更龐大的銷售團隊將帶來更有意義的貢獻。我們預期2019年的新客戶銷售將以遞進的方式成長，因為每一季新進的銷售代表梯隊陸續到位並達到完全生產力。這兩項因素的組合，支撐了CPaaS營收指引23%的成長，並意味著在最後三個季度，這些季度的平均成長率將為26%。

Got it. That's helpful color. So it sounds like you're really looking for those sales investments to help pay off. And then as we think about the net dollar retention, would you expect that to moderate some? Or could you talk maybe about pricing as we think about the pricing change of the business? Clearly, I get new sales and the ramp, and we're getting very good visibility there. But I also want to understand your thinking around what you've baked in around that retention rates within the existing installed base?

了解。這些補充說明很有幫助。所以聽起來你們確實期待這些銷售投資開始回收成效。那麼在思考淨美元留存率（net dollar retention）時，你們預期它會有所趨緩嗎？或者能否談談定價，尤其是我們在思考業務的定價變動時？顯然，我理解新銷售與爬坡，你們在那方面的能見度非常好。但我也想了解，你們對既有裝機基礎（installed base）內的留存率，在預測中納入了哪些假設？

Sure. So our pricing has remained very consistent. So I don't think there's anything new there to report. Certainly, in the first quarter, for all the things that we've already discussed, we would expect a lower dollar-based net retention rate. But for the rest of the year, again, that's a really important part of our growth. One of the things that we always emphasize with folks like you is that growth is not always linear and it can fluctuate a little bit from quarter-to-quarter, which is why we as a team will focus on annual trends. But we expect to continue to expand the relationships with our customers and serve them well until we expect strong retention rates.

當然。我們的定價一直維持相當一致。所以我認為沒有什麼新的內容需要報告。當然，在第一季，基於我們已經討論過的各項因素，我們預期以美元計的淨留存率會較低。但在今年其餘時間，這仍然是我們成長非常重要的一部分。我們一直向像你這樣的朋友強調的一點是：成長不一定是線性的，可能會在季度之間有些波動，因此我們團隊會更聚焦於年度趨勢。但我們預期會持續擴大與客戶的合作關係並把服務做好，因此我們預期留存率將維持強勁。

Great. My last question is for you David, here. Will -- I got to ask on the world tour here, now that you're kicking that off. Sounds like you have secured an anchor tenant. Is that correct? And does that help absorb some of the capital cost that you could burden here in the short run?

很好。我最後一個問題要問David。我得問一下你們的全球巡迴（world tour），既然你們現在要啟動了。聽起來你們已經確保了一個主力租戶（anchor tenant）。是這樣嗎？這是否有助於在短期內吸收一部分你們可能需要承擔的資本成本？

That -- you got it, Brent. That is correct. We've got an anchor tenant, and we have a relationship with them that reduces of our exposure to the expense that we incur as we serve internationally as opposed to building something pristine with no customers involved. That was our orientation during last year as we learned and we're excited to begin the world tour.

沒錯，Brent。是的。我們有一個主力租戶，且我們與他們的合作關係，能降低我們在提供國際服務時所產生費用的曝險，相較於在沒有任何客戶參與的情況下打造一個完美但空的架構。這是我們去年在學習過程中的方向，我們也很期待開始這趟全球巡迴。

Our next question comes from the line of Richard Davis with Canaccord Genuity.

下一個問題來自Canaccord Genuity的Richard Davis。

It's actually DJ Hynes on the line for Richard. Maybe just piggybacking off of Brent's last question there on international. Could you talk about the gross margin impact as you move internationally? Will that have a materially different profile than the core business? And then just help us think about kind of some of the upfront cost involved in kind of building out that effort?

其實我是DJ Hynes，代替Richard在線上。我想延續Brent剛才關於國際業務的最後一個問題。你們能談談走向國際化對毛利率的影響嗎？那會不會與核心業務呈現出顯著不同的輪廓？另外也請協助我們理解，建立這項布局所涉及的一些前期成本大概是什麼樣子？

Sure, DJ. This is Jeff. I'll start, then if David wants to fill in, he can. So it's still very nascent for us as we look into international. Products matters here. I think the more messaging we do, just like domestically, that's a little bit higher margin for us than it is voice. And we're certainly starting out in new territories. And so the gross margin will be influenced by the size and number of investments that we make. It will also -- over time, as that scales, we'll benefit from economies of scale and network effects that we have. And so initially, the margins could potentially be a little bit lower, but we would expect them to grow over time. But we obviously still have a very material base here in the U.S. And that's what would be the largest influencer of our gross margins.

當然，DJ。我是Jeff。我先回答，如果David想補充也可以。我們在國際市場的布局仍非常初期。產品在這裡很重要。我認為我們做越多訊息（messaging）業務，就像在美國本土一樣，對我們而言毛利率會比語音（voice）更高一些。而且我們確實是從新區域開始。因此，毛利率會受到我們投資規模與投資數量的影響。同時，隨著時間推進、規模擴大，我們也會受益於規模經濟與我們所具備的網路效應。所以一開始毛利率可能會略低一些，但我們預期會隨時間成長。不過我們在美國仍有非常可觀的基礎，而那將是影響我們毛利率的最大因素。

Thanks, Jeff. And DJ, I would just add that over the last year, what we've articulated is a desire to understand how we can deploy infrastructure for our platform and our All-IP Voice Network to be more reliable for customers that are doing international service as well as a better economic value. So we're trying to replicate the value of the asset-base combination that we have in the U.S. And that's our goal.

謝謝，Jeff。DJ，我再補充一點：過去一年我們所闡述的是，我們希望了解如何部署我們平台與全IP語音網路（All-IP Voice Network）的基礎設施，使其對提供國際服務的客戶更可靠，同時也能帶來更好的經濟價值。因此我們正嘗試複製我們在美國所擁有的資產與基礎組合的價值，這就是我們的目標。

Yes. Yes. So the higher losses in '19 implicit in the guidance. Is that a result of now just burying the cost of the investments that you made in 2018? You talked about the growth in the headcount and the sales infrastructure build out. Or is that more being driven by some of these newer international expansion efforts?

是。是。所以指引中隱含2019年更高的虧損。這是因為現在只是把你們在2018年所做投資的成本反映進來嗎？你們談到人員數增加以及銷售基礎設施的建置。還是說，這更多是由一些較新的國際擴張行動所驅動？

The short answer DJ is all of the above within there. But one of the things that is new to our guidance here because we now have more clarity of a plan, is the international investment. And you could think of that sort of in the, call it, $5 million, to $6 million range in our 2019 plans, that's within OpEx, there's certainly also some CapEx included in there as well. And then, really, the other piece is when you look at our OpEx growth, we continue to want to reinforce our success that we've had in hiring sales and marketing folks and also research and development. And to the extent that we need to -- our folks that are classified in G&A. And so the plan all along has been to make '18 and '19 investment years. I think our plan showed that. But just to bring it full circle, international is sort of the new add in here that we have, that informs both non-GAAP, net loss and our EPS.

DJ，簡短的答案是：以上皆是。但我們這次指引中新增的一項，是因為我們現在對計畫更清楚了，也就是國際投資。你可以把它想成我們2019年計畫中的約500萬到600萬美元區間，這包含在營業費用（OpEx）內，當然其中也包含一些資本支出（CapEx）。另外，當你看我們的OpEx成長時，我們仍希望強化我們在招募銷售與行銷人員，以及研發方面所取得的成功。以及在需要的範圍內，補足被歸類在一般與行政（G&A）的人員。因此整體計畫一直都是把2018年與2019年視為投資年。我想我們的計畫已經呈現了這點。但回到重點，國際化算是我們新增的一項投入，這會影響非GAAP淨虧損以及我們的每股盈餘（EPS）。

Yes. Okay. Yes, quantifying that spend is helpful. One last one, if I may. So have you seen any change in the mix of B2B call volumes versus, what I guess I would call, B2C or IoT-driven calls? And I guess as part of that answer, can you talk about the margin differences you may see between those two? I'm assuming that you can kind of leverage off peak hours with some of that B2C IoT traffic, is that a fair assumption? And any color you could give will be helpful.

是。好的。量化這筆支出很有幫助。如果可以的話，最後再問一個。你們是否看到B2B通話量相對於我稱之為B2C或由IoT驅動的通話，在組合上有任何變化？另外，作為回答的一部分，能否談談你們在這兩者之間可能看到的毛利差異？我假設你們可以利用部分B2C IoT流量發生在離峰時段來提升槓桿效益，這樣的假設合理嗎？任何你能提供的補充說明都會很有幫助。

So to the extent that we serve voices interface consumer devices, to answer your question, we've seen a very steady drumbeat in the quantity of calling across new interface customers that we work with. And indeed, much of that calling does occur after normal business hours. And so there are aspects of a fixed-cost network and platform that offset that new call pattern favorably as it relates to having a fixed cost. Does that answer your question?

就我們為語音介面消費性裝置提供服務而言，回答你的問題：我們看到與我們合作的新介面客戶，其通話量一直以相當穩定的節奏增加。而且確實，這些通話多半發生在正常上班時間之後。因此，固定成本的網路與平台在某些面向上，能對這種新的通話型態形成有利的抵銷效果，因為我們的成本結構具有固定成本特性。這樣有回答到你的問題嗎？

Yes, it does. So doesn't sound like a discernible mix shift, but you're seeing nice traction with new interface devices?

有，有回答到。所以聽起來沒有明顯的組合轉移，但你們在新的介面裝置上看到不錯的進展？

Yes. I wouldn't go so far as to answer this specific around the mix of traffic between B2B and B2C. What I -- what we are seeing is a steady drumbeat of adoption where we serve folks in the consumer space who are doing creative new experiences in the home, some of which are voices and interface. But not -- but it's not ready to comment on the absolute shift across those 2 categories.

是的。我不會把話說得那麼絕，去針對 B2B 與 B2C 之間的流量組合做出具體回答。我們——我們所看到的是採用率持續穩定地推進；我們在消費者領域服務的客戶，正在家中打造一些富有創意的新體驗，其中有些涉及語音與介面。但——但目前還不適合評論這兩個類別之間的絕對轉移幅度。

Our next question comes from the line of Meta Marshall with Morgan Stanley.

下一個問題來自摩根士丹利（Morgan Stanley）的 Meta Marshall。

I just wanted to get a sense of, obviously, they're just starting to see some traction with the new sales people. And just if there was anything around kind of size of what their initial year of -- what their spend was kind of in the initial year? Or just kind of whether these customers were off the original targeting list? Just some kind of context around some of the normal course average customer? And then, second, just kind of circling back to the gross margins. You guys have been understanding some of the international piece on gross margins. But you've been making some investments that you were expecting to get some leverage in, in 2019. And so I just want to get a sense of what we should expect as far as those investments?

我想了解一下，很明顯他們才剛開始看到新銷售人員帶來的一些進展。想請問是否能談談他們第一年——也就是初始年度的規模大概如何、第一年的支出大概是多少？或者這些客戶是否不在原本的目標名單上？想請你們提供一些背景，對照一般情況下的平均客戶。然後第二個問題，回到毛利率。你們一直在說明國際業務對毛利率的影響。但你們也做了一些投資，原本預期在 2019 年能帶來一些槓桿效益。所以我想了解，我們對這些投資的影響應該有什麼樣的預期？

You bet, Meta. This is David. Just as a quick reminder on your first question, we have 2 distinct sales groups. We have our hunter enterprise team and then a strategic team. And to answer your question, the Hunter team, they will take 90 days to ramp after joining, and we expect them to close 1.9 new enterprise customers per month thereafter at full quota. That customer within their first 12 months after onboarding will in that first 12-month period generate $20,000 of annual revenue and the 2nd-year, $30,000, and the third year, $40,000 and when you combine that with the other large customers, our average is $150,000 annually. On the strategic side, those reps take 9 months to close their first deal. Their first strategic customer will generate $500,000 of annual revenue within their first year on our platform. And those reps are closing about 1 to 1 point -- 1 or 2 large deals a year. And then your second part of your question was gross margin and I'll turn it over to Jeff for that one.

當然可以，Meta。我是 David。先快速提醒一下你第一個問題：我們有兩個不同的銷售團隊。一個是我們的獵人型（hunter）企業團隊，另一個是策略型（strategic）團隊。回答你的問題，獵人型團隊的新進人員加入後需要 90 天上手期，之後在達到滿額配額（full quota）時，我們預期他們每月可成交 1.9 位新的企業客戶。該客戶在導入後的前 12 個月內，會在那個 12 個月期間產生 20,000 美元的年化營收；第二年 30,000 美元；第三年 40,000 美元；而當你把這些與其他大型客戶合併計算後，我們的年均值是 150,000 美元。在策略型這邊，業務代表需要 9 個月才能成交第一筆交易。他們的第一位策略型客戶在上我們平台的第一年內，將產生 500,000 美元的年化營收。而這些業務代表一年大約會成交 1 到——1 或 2 筆大型交易。你問題的第二部分是毛利率，我把這題交給 Jeff。

Thanks, David. Meta, so yes, despite our higher-level investment in 2018, our track record of growing gross margin year-over-year continued. So we achieved 49% in '18, which was 140 basis point improvement over 2017. As we've discussed, there's a number of factors that affect our gross margin, certainly, the level of investment and we've been very explicit in saying we're investing more in '18 and '19 to expand the recent scale of our platform. We do that with the platform and with the team. Product mix influences it. Certainly, onetime events like we experienced in '18 and the Verizon settlement influence that. But on a longer-term basis, the great positive tailwind that we have is economies of scale and network effects, and we enjoy that as a result of our vertically integrated platform and enjoying owner economics. And so when you balance all those things in with again another heavier load of investments and certainly getting some yield on those -- the 18 investments in '19. But on balance, we would expect our gross margins in '19 to be virtually in line and consistent with what we saw in 2018. Now in the future, as we sort of grow out of that, we would expect gross margins to continue to enhance. And David and I still believe along with the rest of the team that this is a 60% margin business. We've just got to get through some scale and demonstrate some more operating leverage.

謝謝，David。Meta，是的，儘管我們在 2018 年進行了較高層級的投資，我們毛利率逐年成長的紀錄仍然延續。因此我們在 2018 年達到 49%，較 2017 年提升 140 個基點。如同我們討論過的，有多項因素會影響毛利率，當然包括投資水準；而我們也非常明確地表示，我們在 2018 與 2019 年會加大投資，以擴大我們平台近期的規模。我們透過平台與團隊來做到這點。產品組合也會影響毛利率。當然，像我們在 2018 年經歷的一次性事件，以及 Verizon 和解，也會影響毛利率。但從較長期來看，我們最大的正向順風是規模經濟與網路效應；這得益於我們垂直整合的平台，以及享有自有經濟效益（owner economics）。因此，當你把這些因素都納入考量——再加上我們仍有較重的投資負擔，並且在 2019 年開始收穫 2018 年投資的成效。整體而言，我們預期 2019 年的毛利率將與 2018 年幾乎持平並保持一致。未來，當我們逐步走過這段擴張期，我們預期毛利率會持續提升。David 和我，以及團隊其他成員仍然相信，這是一個 60% 毛利率的生意。我們只是需要再擴大一些規模，並展現更多營運槓桿。

Just circling back to that real quick. Like when you're saying solid or steady gross margins from '18 and '19, are you talking about CPaaS growth margins or overall gross margin?

我很快再追問一下。你說 2018 到 2019 年毛利率穩健或持平時，你指的是 CPaaS 的毛利率，還是整體毛利率？

That's overall gross margin. So what's going to happen in '19 is you're going to see CPaaS margins grow and you're starting to see as we do have some additional scale there, the economies of scale and network effects come into play. So we'll expect that to grow. Where we'll actually reduced margin is on the other side of the business, which is less than 20% of our revenue. And the reason is the onetime Verizon settlement that happened in '18 will not reoccur in 2019. And so the blending of those two impacts put us at a flattish sort of level for this year.

是整體毛利率。所以 2019 年會發生的是，你會看到 CPaaS 毛利率成長；而且隨著我們在那邊取得更多規模，你開始會看到規模經濟與網路效應發揮作用。因此我們預期那部分會上升。而我們實際上毛利率會下降的是業務的另一側，那部分營收占比不到 20%。原因是 2018 年發生的一次性 Verizon 和解，在 2019 年不會再發生。因此這兩者的綜合影響，讓我們今年整體呈現一種大致持平的水準。

Our next question comes from the line of Pat Walravens with JMP Group.

下一個問題來自 JMP Group 的 Pat Walravens。

So Dave, I once heard you say that you would rather grow 20% for 20 years than 40% for 4. And as I look at what you guys are doing, 26% CPaaS growth this quarter, guidance to 23% for next year. A lot of investments. The big question investors have for me is, is this going to accelerate out of sort of the current growth range at some point? What would you say?

Dave，我曾聽你說過，你寧可 20 年每年成長 20%，也不要 4 年每年成長 40%。而我看你們現在的表現，本季 CPaaS 成長 26%，對明年指引是 23%。投資很多。投資人對我最大的問題是：這個成長率是否會在某個時間點加速、突破目前的成長區間？你會怎麼說？

Well, I would thank -- finally thank you for your kind words, Pat. The beat goes on. I would say that those investments, as we've made in sales and marketing, if they are successful investments, those individual contributors on a per headcount basis should fuel our growth. And we have grown from 12% CPaaS growth in '17 to 25% CPaaS growth that we've just done. And so we've doubled in '18, and if our sales investments don't increase our growth, I have failed as a leader. That's the short answer.

嗯，我要——最後也謝謝你，Pat，謝謝你的好話。節奏仍在持續。我會說，我們在銷售與行銷上的這些投資，如果是成功的投資，那麼以每位員工（per headcount）來看，這些個別貢獻者應該能推動我們的成長。我們已經從 2017 年 CPaaS 成長 12%，提升到剛剛達成的 25% CPaaS 成長。所以我們在 2018 年翻倍了；如果我們的銷售投資沒有帶動成長，那我作為領導者就是失敗的。這就是簡短的答案。

All right, great. And my second question is, just -- so you -- what an impressive increase on the number of R&D people. What is their top priority today?

好，很好。我的第二個問題是——你們研發人員數量的增加非常令人印象深刻。他們目前的首要優先事項是什麼？

Expand the platform, both breadth and depth. Capacity in terms of throughput to support the growth of both messaging and voice as well as incremental use cases that are being asked for by our enterprise customers. There's also some international development work to be effective across different jurisdictions. But the focus is on the platform and making sure that the network keeps up with the growth that we're experiencing.

擴展平台，包含廣度與深度。在吞吐量方面提升容量，以支援訊息與語音的成長，以及企業客戶提出的更多新增使用情境。另外也有一些國際化的開發工作，以便在不同司法管轄區都能有效運作。但重點在平台，並確保網路能跟上我們正在經歷的成長。

Our next question comes from the line of Catharine Trebnick with Dougherty.

下一個問題來自 Dougherty 的 Catharine Trebnick。

So I just need to draw in on the guide here, just to make sure I understand what you're saying. So it looks like for Q1, The Street was up -- loss of $0.12, you're guiding to $0.27 to $0.30, and for the full year at $0.64 to $0.74, Street was up $0.46. So can I -- do we attribute -- how much of that is attributed to this international expansion and how much of that is a drag?

我想針對這份指引再深入確認一下，確保我理解你們的意思。看起來第一季市場一致預期（The Street）是虧損 0.12 美元，你們指引是 0.27 到 0.30 美元；全年則是 0.64 到 0.74 美元，而市場一致預期是 0.46 美元。所以我能否——這其中有多少可歸因於國際擴張？又有多少是拖累？

Yes. So as far as the annual earnings per share, Catharine, there is a sort of a new entrant into our guidance here. And we talked a little bit about this with DJ's question, which was, we're adding to our forecast, they're in the range of $5 million to $6 million for international that's hitting OpEx as well as some additional CapEx to get us going with this flagship customer that David had talked about, then we'll add from there. And so that is the primary difference to it. If you look at it, everything else in The Street, rev is above where The Street was, gross profit is above. I think, OpEx is generally in line, absent the investment that we're making in international. But we believe, once again, that this is the year to make those investments and expand and will help us grow and scale in the future.

是的。就年度每股盈餘而言，Catharine，我們的指引中算是加入了一個新的因素。我們在回答 DJ 的問題時也稍微談到這點，也就是我們把國際業務納入預測，金額約在 500 萬至 600 萬美元區間，這會反映在營運費用（OpEx）上，另外也會有一些額外的資本支出（CapEx），用來啟動 David 提到的那位旗艦客戶，之後我們會在此基礎上再往上加。因此，這就是主要差異。如果你看其他部分，華爾街一致預期（The Street）方面，營收高於市場原先預期，毛利也更高。我認為營運費用大致符合預期，若不計我們在國際業務上的投資。但我們再次相信，今年就是進行這些投資與擴張的時機，並將在未來幫助我們成長與規模化。

So when we think about modeling, main suite think that this will be more of a back-end loaded year with sales guys. It seems like you hired most of them in Q3 and Q4, a majority of them. So should we think of this more as maybe a 45-55 split when we model out the top line revenue or how should we look at that?

所以當我們思考建模時，Main Suite 會認為今年會是比較偏下半年貢獻的年度，因為銷售人員的配置。看起來你們大多是在第三季和第四季聘用他們，多數都在那時候。因此我們在建模營收（top line revenue）時，是否應該把它視為大概 45-55 的分配，或我們應該怎麼看？

I think that -- our intent and we have performed in '18 was -- our hiring was pretty consistent throughout all the year. But there is a cascading impact into 2019 as each cohort comes online and gets to full productivity. So the effect of that is that it is a little bit more back weighted with that. But that all underlines the foundation of us serving our existing customers well and expanding our relationships there. But I think you're generally on track.

我認為——我們的意圖，而且我們在 2018 年的執行是——我們的招募在全年都相當一致。但隨著每一批新進人員逐步上線並達到完全生產力，會對 2019 年產生連鎖影響。因此其效果會讓整體看起來稍微偏向下半年。但這一切都建立在我們把現有客戶服務好、並在既有關係上持續擴展的基礎之上。不過我認為你的方向大致正確。

Okay, good. And then the other question I had just -- usually, you have couple of interesting nuggets on new customers. Any of the current existing, large Internet giants? Any interesting new app use cases that, say, came onboard with during the quarter?

好的，很好。另外一個問題是——通常你們會分享一些關於新客戶的有趣資訊。目前是否有任何既有的大型網際網路巨頭？或是有沒有任何有趣的新 App 使用案例，例如在本季新增上線的？

None that we announced publicly. So no, Catharine, there's nothing that we've announced publicly.

沒有我們公開宣布的。所以沒有，Catharine，我們沒有任何已公開宣布的內容。

I was just trying for…

我只是想試試看……

I will say though on a no name basis though, Catharine, David did highlight 3 or 4 use cases, again, that you might leverage if that's helpful.

不過我會說，在不點名的前提下，Catharine，David 的確提到了 3 到 4 個使用案例，你也許可以拿來參考，如果有幫助的話。

Oh no, I was just trying to find -- last time you talked about Google, I was just looking for some other color there.

喔不，我只是想找——上次你們談到 Google，我只是想看看是否還有其他補充說明。

Our final question comes from the line of Will Power with Baird.

我們最後一個問題來自 Baird 的 Will Power。

Yes, well, congratulations on international progress. I know that's been a big focus for a while. I guess, maybe several questions on that front. David, can you just help us understand, architecturally, how that will look like versus the U.S., soft switches, access to phone numbers? How many countries will you be up and running in out of the gate? That's the first question. And then what is the -- what are the CapEx requirements look like? And then my other question is with regard to revenue contribution. How do we think about revenue contribution in '19 as it pertains to the overall guidance?

是的，嗯，恭喜你們在國際化方面的進展。我知道這一直是你們一段時間以來的重點。我想在這方面問幾個問題。David，你能否協助我們理解，從架構上來看，這與美國相比會是什麼樣子，例如軟交換（soft switches）、電話號碼的取得？你們一開始會在多少個國家上線運行？這是第一個問題。接著資本支出（CapEx）的需求會是什麼樣子？另外我還有一個問題是關於營收貢獻。我們該如何看待 2019 年國際業務對整體指引的營收貢獻？

You bet, Will. I'll talk about the strategy and the architecture and what we're trying to achieve and then turn it over to Jeff to talk about margin and revenue contribution. What's most important to keep in mind is that internationally, what we're going to deploy is a stack that replicates the same architecture that we maintain in the U.S. So the gear that we put in a data center supports All-IP voice and messaging services, and it's a great extension of an operating team that knows how to administer, maintain and support that gear in multiple data centers. And as a result of putting that gear in multiple replicated data centers, you're able to offer high reliability. Yes, you do cross connect and air connect with incumbent service providers under a key regulatory licenses that you're able to achieve or by commercial agreement as well. And that's what allows you to do -- whether it's emergency, voice calling in a jurisdiction or just regular voice services, you've got the ability with this gear and the right interconnects and the right regulatory approvals, what you're trying to do is lower your cost structure and get it to be as close as what you've done in the United States at the same level of reliability in the United States. And so the value under the platform for our large enterprise customers, many of whom are domiciled here in the U.S. is that for their product teams, they already know how to utilize our platform. We just added a new jurisdiction. It has all the hallmarks and characteristics of the quality and the cost that they've come to understand domestically to the best of our ability to replicate. That's the model, that's the desire, be the easy the button, not just in the U.S. but in other jurisdictions. We've been able to achieve a very high level of quality and great economic value for the customers that we have using the platform today in the U.S. And we're targeting to do the same thing focused on the U.K. and EU, as I mentioned. Those are the jurisdictions of highest volume where we are supporting our lighthouse customer. And after that, we'll prioritize based on customer need and demand. But the underlying infrastructure and architecture is precisely the same design that we've really scaled well in the United States. And then I'll turn it over to Jeff.

當然可以，Will。我會先談策略與架構，以及我們想達成的目標，然後再交給 Jeff 談毛利與營收貢獻。最重要的是要記住，在國際市場我們要部署的是一套堆疊（stack），其架構會複製我們在美國維持的相同架構。因此我們放在資料中心的設備可支援全 IP 語音與訊息服務，並且能很好地延伸一個熟悉如何在多個資料中心管理、維護與支援這些設備的營運團隊。而由於在多個可複製的資料中心部署這些設備，你就能提供高可靠性。是的，你確實需要在取得關鍵監管許可下，或透過商業協議，與既有電信服務供應商進行互連（cross connect）與空中互連（air connect）。而這讓你能做到——無論是在某個司法管轄區提供緊急語音通話，或只是一般語音服務——透過這些設備、正確的互連，以及正確的監管核准，你要做的是降低成本結構，並讓它在同等可靠性下，盡可能接近你在美國所達成的水準。因此，對我們的大型企業客戶而言——其中許多公司設立地在美國——這個平台的價值在於，他們的產品團隊已經知道如何使用我們的平台。我們只是新增了一個新的司法管轄區。它具備他們在國內所熟悉的品質與成本特徵，我們會盡最大努力去複製。這就是模式、也是目標：不只在美國，在其他司法管轄區也要做到「一鍵搞定」。我們已在美國為目前使用平台的客戶達成非常高的品質與很好的經濟價值，而我們的目標是在我提到的英國與歐盟也做到同樣的事。這些是我們正在支援的燈塔客戶（lighthouse customer）所需、且量體最高的司法管轄區。之後我們會依客戶需求與需求強度來排定優先順序。但底層基礎設施與架構，完全就是我們在美國已經成功大規模擴展的同一套設計。接著我把時間交給 Jeff。

Thanks, David. I would just emphasize that we're still early days despite the articulate plan David laid out. It takes a while for revenue to come. And of course, expenses preceded revenue. And so our guidance is not overly reliant on international at all in 2019. In terms of CapEx and the spend, we'd already talked about the OpEx contribution. But in terms of CapEx, I would think about this in a 3% of revenue range for CapEx in the initial international build out. As a reminder, what we've guided everyone is, domestically, our CapEx is 7% of revenue. This would be an additional, call it, 3% or so on top of that. So overall CapEx for 2019 coming in the 10% range, and that's how we see it. We're very excited about this sort of greenfield opportunity, so to speak. And we look forward to serving customers in new jurisdictions.

謝謝，David。我只想強調，儘管 David 清楚闡述了計畫，我們仍處於早期階段。營收需要一段時間才會進來。當然，費用會先於營收發生。因此，我們 2019 年的指引並不會在任何程度上過度依賴國際業務。就資本支出（CapEx）與支出而言，我們先前已談過營運費用（OpEx）的貢獻。但就 CapEx 而言，我會把初期國際建置的 CapEx 視為約占營收 3% 的區間。提醒一下，我們對外指引的是：在國內市場，我們的 CapEx 約為營收的 7%。這會是在其之上額外增加約 3% 左右。因此 2019 年整體 CapEx 大約落在 10% 的水準，這就是我們的看法。我們對這個所謂的綠地機會（greenfield opportunity）感到非常興奮。也期待能在新的司法管轄區為客戶提供服務。

Ladies and gentlemen, this concludes our question-and-answer session as well as our call. We thank you for your participation, and have a wonderful day. You may now disconnect.

各位女士先生，我們的問答環節以及本次電話會議到此結束。感謝各位的參與，祝各位有美好的一天。您現在可以掛線。