Bandwidth Inc. (BAND) 2019 Q1 法說會逐字稿

Greetings. Welcome to Bandwidth's First Quarter 2019 Earnings Results Conference Call. (Operator Instructions) Please note this conference is being recorded.

各位好。歡迎參加 Bandwidth 2019 年第一季財報結果電話會議。(接線員指示) 請注意，本次會議將被錄音。

I will now turn the conference over to your host, Marc Griffin, Investor Relations. Mr. Griffin, you may begin.

現在我將把會議交給主持人——投資人關係部的 Marc Griffin。Griffin 先生，您可以開始了。

Thank you, good afternoon, and welcome to Bandwidth's First Quarter 2019 Earnings Call. Today, we'll be discussing the results announced in our press release issued after the market close.

謝謝，下午好，歡迎參加 Bandwidth 2019 年第一季財報電話會議。今天我們將討論在收盤後發布之新聞稿中所公布的業績結果。

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 we will then 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，之後我們將開放問答。

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 second fiscal quarter of 2019 and the full year of 2019, our plans to execute on our growth strategy, our ability to maintain existing and acquire new customers, and other statements regarding our plans and prospects.

在本次電話會議中，我們將就本公司業務發表若干可能被視為前瞻性陳述的內容，包括關於我們對 2019 會計年度第二季及 2019 全年之財務指引、我們執行成長策略的計畫、我們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. We undertake no obligation to update these or revise these forward-looking statements. Forward-looking statements are not promised or guarantees of future performance and are subject to variety of risks and uncertainties that could cause the actual results to differ materially from our expectations.

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。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出現重大差異。

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 15, 2019, 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 2019 年 2 月 15 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. Reconciliation of GAAP to non-GAAP measures is included in our press release issued after the close today, which is located on our website at bandwidth.com and on the SEC's website at sec.gov.

最後，在今天電話會議的過程中，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 first quarter earnings call. We have once again exceeded the high end of our financial outlook this quarter. Our CPaaS revenue increased 16% year-over-year driving total revenue of $53.3 million. We are beginning to see early indicators of success from investments we are making in our business. In the first quarter, our expanded sales and marketing teams helped grow new customers a record 31% year-over-year. This new cohort of enterprise customers represents use cases from all service offerings and are from a diverse set of industry verticals. We are focused on cultivating these relationships as these new customers become more familiar with our platform and service.

謝謝你，Marc，也感謝各位參加我們的第一季財報電話會議。本季我們再次超越了財務展望區間的上緣。我們的 CPaaS 營收年增 16%，帶動總營收達 5,330 萬美元。我們開始看到對業務所做投資的初步成功跡象。第一季，我們擴編的銷售與行銷團隊協助新客戶數年增達到創紀錄的 31%。這批新的企業客戶涵蓋我們所有服務項目的使用情境，並來自多元的產業垂直領域。我們專注於培養這些關係，因為這些新客戶將隨著對我們平台與服務的熟悉度提升而持續成長。

In addition to growing customers 31%, we are excited about our expanded

除了客戶數成長 31% 之外，我們也對我們擴大的……感到振奮

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to full productivity throughout 2019. During the quarter, we onboarded 121 net new customers, beating our previous record set last quarter of 75, an increase of 61%. We continue to be pleased by the fundamental strength in our business. The 3 pillars supporting our success are our highly scalable platform of flexible APIs, our vertically integrated nationwide IP Voice Network that we built and operate, and our 9-1-1 capabilities that we believe are unique among CPaaS providers. Enterprises choose to build on these Bandwidth pillars because of their clear quality and cost benefits. They also choose us because of our amazing people who answered the call to serve our customers. We recently completed a follow-on public offering of common stock to be able to reinforce the success we see with our pillars and with our people.

……並在 2019 年全年度逐步達到完全生產力。本季我們淨新增 121 位新客戶，超越上一季創下的 75 位紀錄，增幅達 61%。我們持續對業務的基本面強勁感到滿意。支撐我們成功的三大支柱為：具高度可擴展性的彈性 API 平台、我們自行建置並營運的垂直整合全國性 IP 語音網路，以及我們認為在 CPaaS 供應商中具獨特性的 9-1-1 能力。企業選擇在這些 Bandwidth 支柱上建置，因為其在品質與成本上具明確優勢。他們也選擇我們，因為我們優秀的團隊回應號召、致力服務客戶。我們近期完成一次普通股的後續公開發行，以強化我們在支柱與人才方面所看到的成功。

The most innovative technology companies continue to choose Bandwidth. During the first quarter, we entered into a new relationship with one of the pioneers of better and easier point of sale solutions for small and medium businesses. This company operates globally, and in the past year processed almost $85 billion of gross payments generated by approximately 1.8 billion credit card transactions. The customer uses Bandwidth's enterprise-grade, toll-free messaging solution to deliver digital receipts to customers. The company was challenged by customers failing to receive message-based receipts. They solved this problem using Bandwidth's toll-free messaging solution, which provides increased visibility and confirmation of mobile handset delivery. In addition, this company chose Bandwidth because of our team's incredible focus on the unique needs of the enterprise customer. Our relationship began with their inbound request for a trial account on our API platform. Our sales, product and operations teams engaged with the customer to understand their business-critical, at-scale problem and helped them build a solution on our platform that will help them navigate the rapidly changing messaging environment in the future.

最具創新力的科技公司持續選擇 Bandwidth。第一季，我們與一家為中小企業提供更好、更容易使用之銷售點（POS）解決方案的先驅公司建立了新的合作關係。該公司在全球營運，過去一年處理的總支付金額接近 850 億美元，約由 18 億筆信用卡交易所產生。該客戶使用 Bandwidth 企業級免付費簡訊解決方案，向消費者傳送電子收據。該公司曾面臨客戶未能收到以訊息形式傳送之收據的問題。他們透過 Bandwidth 的免付費簡訊解決方案解決了此問題，該方案可提高可視性並確認行動裝置端的送達情況。此外，該公司選擇 Bandwidth，也因為我們團隊對企業客戶獨特需求的高度專注。我們的合作關係始於他們主動提出在我們 API 平台申請試用帳號。我們的銷售、產品與營運團隊與客戶合作，了解其關鍵且需大規模處理的業務問題，並協助其在我們平台上建置解決方案，以因應未來快速變化的訊息傳遞環境。

We continue to pride ourselves on developing and delivering the power to communicate for our enterprise customers. During the first quarter, we also onboard the health care industry's leading patient-relationship management platform that uses voice calls and text messages to engage with more than 80 million patients and 25,000 medical practices nationwide. The company delivers a high volume of appointment reminders, recalls and preventative care messages annually. The company will now utilize Bandwidth's local A2P messaging API to assist medical practices and delivering these call-back enabled messages to patients. Our solution is a first-of-its-kind API that allows businesses to send wireless carrier sanctioned high-volume messaging using local phone numbers over the newly created 10-digit long code SMS routes. Our solution enables messaging from local phone numbers and instant replies or immediate call back capability to a specific business location. Bandwidth's local A2P messaging solution offers a wireless carrier sanctioned route, resulting in predictable delivery, measurable results and a better voice and text customer experience for end users.

我們持續以為企業客戶開發並交付溝通能力而自豪。第一季，我們也導入了醫療保健產業領先的病患關係管理平台；該平台透過語音通話與簡訊，與全美超過 8,000 萬名病患及 25,000 家醫療院所互動。該公司每年傳送大量的預約提醒、回診召回與預防保健訊息。該公司現在將使用 Bandwidth 的本地 A2P 簡訊 API，協助醫療院所向病患傳送這些可回撥的訊息。我們的解決方案為同類首創的 API，使企業可透過新建立的 10 位數長碼（10DLC）SMS 路由，使用經無線電信業者核准的高流量訊息傳送。我們的解決方案可讓訊息以本地電話號碼發送，並可即時回覆或立即回撥至特定營業據點。Bandwidth 的本地 A2P 簡訊解決方案提供經無線電信業者核准的路由，因此可帶來可預期的送達、可衡量的成效，以及更佳的語音與簡訊終端使用者體驗。

During the first quarter, we also entered into a new relationship with a sales enablement and marketing platform that leverages artificial intelligence to improve lead-to-call conversion for enterprises. The company uses Bandwidth's voice platform to connect prospects with businesses and also uses our A2P toll-free messaging platform to deliver AI generated conversational text messages to their clients' prospective customers. The company handles millions of messages for its clients each day, and was seeking a partner that could offer a complete solution with proven deliverability and superior customer support. These and other customer wins illustrate the recent impact of our expanded software development and engineering teams. These teams have launched new A2P messaging and voice services for our enterprise customers who are using both methods within their customer-engagement strategy.

第一季，我們也與一家銷售賦能與行銷平台建立了新的合作關係；該平台運用人工智慧提升企業從潛在客戶到通話的轉換率。該公司使用 Bandwidth 的語音平台將潛在客戶與企業連結，並使用我們的 A2P 免付費簡訊平台，向其客戶的潛在消費者傳送由 AI 生成的對話式簡訊。該公司每天為其客戶處理數百萬則訊息，並尋求能提供完整解決方案、具經驗證的送達率以及卓越客戶支援的合作夥伴。這些以及其他客戶的成功案例，展現了我們近期擴編的軟體開發與工程團隊所帶來的影響。這些團隊已為企業客戶推出新的 A2P 簡訊與語音服務，而這些客戶正將兩者同時運用於其客戶互動策略之中。

In regard to our international expansion, we continue to make progress to meet existing customer demand abroad. We have begun deploying infrastructure to the U.K. and the EU. We intend to build in a capital-efficient manner, consistent with our network and platform in the U.S. to support the applications and experiences that make a difference in the way enterprises communicate. We expect to complete our deployment in the U.K. and EU by the end of the year. Additionally, we continue to make progress to satisfy the regulatory requirements necessary to conduct business and deliver our services internationally. We are excited to be expanding our footprint overseas and look forward to serving our customers in new geographies.

關於我們的國際擴張，我們持續取得進展，以滿足海外既有客戶需求。我們已開始在英國與歐盟部署基礎設施。我們打算以資本效率為導向進行建置，並與我們在美國的網路與平台保持一致，以支援那些能改變企業溝通方式、帶來實質影響的應用與體驗。我們預期將於年底前完成在英國與歐盟的部署。此外，我們也持續推進，以滿足在國際間經營業務並交付服務所需的監管要求。我們對於擴大海外版圖感到振奮，並期待在新的地理市場為客戶提供服務。

In summary, we are pleased with our start to the new fiscal year and excited about the opportunities ahead. We will continue to reinforce success with our excellent products and our amazing Band mates.

總結來說，我們對新會計年度的良好開局感到滿意，也對未來的機會感到興奮。我們將持續以卓越的產品與出色的 Band 夥伴，強化成功動能。

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

接下來，我把電話會議交給 Jeff。

Thank you, David, and good afternoon to everyone on the call. We had a solid start to 2019 with all of our key financial metrics outperforming the high end of our guidance. Our first quarter performance was driven by strong demand from a variety of enterprise customers with use cases across many verticals that are embedding mission-critical communications into their products and services.

謝謝你，David，也向所有參與電話會議的各位致上下午好。2019 年我們有個穩健的開局，所有關鍵財務指標都優於我們財測區間的上緣。我們第一季的表現，主要來自多元企業客戶的強勁需求；這些客戶橫跨多個垂直產業，並將關鍵任務型通訊嵌入其產品與服務之中。

During the first quarter, our total revenue was $53.3 million, $1.8 million above the high end of our guidance range. Total revenue was up 0.6% of a percent or 14% year-over-year excluding the $6.3 million onetime Verizon legal settlement reported in the first quarter of 2018.

第一季我們的總營收為 5,330 萬美元，較我們財測區間上緣高出 180 萬美元。若排除 2018 年第一季認列的一次性 Verizon 法律和解金 630 萬美元，總營收年增 14%（或增加 0.6 個百分點）。

Within total revenue, CPaaS revenue was $45 million, up 16% year-over-year and $1 million above the high end of our guidance range. Other revenue contributed the remaining $8.3 million of total revenue, which was $0.8 million above our implied guidance. Other revenue was $14.1 million in the same period last year and included the $6.3 million legal settlement.

在總營收中，CPaaS 營收為 4,500 萬美元，年增 16%，並較我們財測區間上緣高出 100 萬美元。其他營收貢獻了剩餘的 830 萬美元，較我們隱含財測高出 80 萬美元。去年同期其他營收為 1,410 萬美元，其中包含 630 萬美元的法律和解金。

Our go-to-market investments continue to build momentum. We ended the first quarter with 1,351 active CPaaS customers, up 31% year-over-year. Sequentially, we achieved a record 121 customer net additions in the first quarter. Consistent with previous cohorts, we expect these newly onboarded customers to scale their platform usage over future periods as they become increasingly familiar with our platform, network and customer support.

我們的市場推進（go-to-market）投資持續累積動能。第一季結束時，我們有 1,351 位活躍 CPaaS 客戶，年增 31%。以季比來看，我們在第一季創下紀錄，淨新增 121 位客戶。與先前客群一致，我們預期這些新上線客戶將在未來期間擴大平台使用量，因為他們會愈來愈熟悉我們的平台、網路與客戶支援。

Our dollar-based net retention was 111% in the first quarter of 2019 as compared to 115% a year ago.

2019 年第一季我們以美元計的淨留存率為 111%，相較一年前為 115%。

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.

在進入獲利能力指標之前，我想先說明，接下來我將以非 GAAP 結果進行說明。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找到。

Our first quarter 2019 non-GAAP gross profit, which excludes stock-based compensation and depreciation, was $25.9 million, yielding a gross margin of 49%. This compares favorably to the $22.5 million and the 48% gross margin we achieved in the first quarter of 2018 if we exclude the Verizon legal settlement in the first quarter of 2018.

2019 年第一季非 GAAP 毛利（排除以股票為基礎的薪酬與折舊）為 2,590 萬美元，毛利率為 49%。若排除 2018 年第一季的 Verizon 法律和解金，這與我們在 2018 年第一季達成的 2,250 萬美元毛利與 48% 毛利率相比，表現更佳。

First quarter 2019 adjusted EBITDA was a loss of $1.7 million as compared to $4.4 million of adjusted EBITDA for the same period last year excluding the legal settlement. This again reflects the increased investment we are making in sales and marketing as well as research and development to support the expansion of our platform.

2019 年第一季調整後 EBITDA 為虧損 170 萬美元；相較之下，若排除法律和解金，去年同期調整後 EBITDA 為 440 萬美元。這再次反映我們為支持平台擴張而加大對銷售與行銷，以及研發的投資。

On a GAAP basis, we reported net income of $2 million or $0.09 per share based on 22 million weighted average diluted shares outstanding during the first quarter 2019. Our non-GAAP net loss in the first quarter was $2.5 million or a loss of $0.12 per share based on 20.5 million weighted average shares outstanding. This is well above our guidance for the first quarter of a net loss of $0.27 to $0.30 per share.

以 GAAP 基礎計算，我們在 2019 年第一季報告淨利 200 萬美元，或每股 0.09 美元，係以第一季流通在外加權平均稀釋股數 2,200 萬股計算。第一季非 GAAP 淨損為 250 萬美元，或每股虧損 0.12 美元，係以流通在外加權平均股數 2,050 萬股計算。這明顯優於我們對第一季每股淨損 0.27 至 0.30 美元的財測。

The favorable non-GAAP net loss variance as compared to our guidance was driven by gross profit and operating expenses out performance.

相較於財測，非 GAAP 淨損表現較佳，主要由毛利與營業費用優於預期所帶動。

During the first quarter, we utilized $9 million in net cash from operations and utilized $10.9 million in free cash flow, which includes $1.2 million of purchases of property and equipment as well as $0.6 million of capitalized software development cost for internal use.

第一季我們營運活動淨現金流出 900 萬美元，自由現金流出 1,090 萬美元，其中包含 120 萬美元的不動產、廠房及設備購置，以及 60 萬美元供內部使用之資本化軟體開發成本。

Now I'd like to finish with some thoughts regarding our financial outlook. For the second quarter 2019, we expect CPaaS revenue to be in the range of $46.8 million to $47.3 million or up 18% year-over-year at the midpoint of the range at $47.1 million. This contributes to our total revenue guidance of $54.8 million to $55.3 million.

接下來我想以一些對財務展望的看法作結。對於 2019 年第二季，我們預期 CPaaS 營收將介於 4,680 萬至 4,730 萬美元；以區間中點 4,710 萬美元計算，年增 18%。這也構成我們總營收財測 5,480 萬至 5,530 萬美元。

Turning to the second quarter profitability. Non-GAAP earnings per share is expected to be a loss in the range of $0.17 to $0.19 per share. This outlook assumes weighted average shares outstanding of approximately 23 million.

接著談第二季的獲利能力。非 GAAP 每股盈餘預期為每股虧損 0.17 至 0.19 美元。此展望假設流通在外加權平均股數約為 2,300 萬股。

For the full year 2019, we expect CPaaS revenue to be in the range of $201.5 million to $203 million or up 23% at the midpoint of the range. We expect 2019 total annual revenue to be in the range of $233.5 million to $235 million, up 15% at the midpoint of the range.

對於 2019 年全年，我們預期 CPaaS 營收將介於 2.015 億至 2.03 億美元；以區間中點計算年增 23%。我們預期 2019 年全年總營收將介於 2.335 億至 2.35 億美元；以區間中點計算年增 15%。

Non-GAAP earnings per share for 2019 is expected to be in the range of approximately a loss of $0.44 to $0.51 per share. This outlook assumes weighted average shares outstanding of approximately 22.4 million.

2019 年非 GAAP 每股盈餘預期約為每股虧損 0.44 至 0.51 美元。此展望假設流通在外加權平均股數約為 2,240 萬股。

In summary, we are excited about the direction we are headed and pleased with our strong results to start the year. I will now turn it back to the operator for Q&A.

總結來說，我們對前進方向感到振奮，也對年初以來的強勁成果感到滿意。現在我把電話會議交回主持人，進行問答。

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

(主持人指示) 我們的第一個問題來自 JMP Securities 的 Pat Walravens。

Our next question comes from the line of Richard David (sic) [Richard Davis] from Canaccord.

我們的下一個問題來自 Canaccord 的 Richard David（誤）[Richard Davis]。

It's DJ on the line for Richard this evening. I wanted to ask about the linearity of CPaaS revenues. It's kind of what's implied in the guide here. I mean if we look at first half to second half weighting, obviously, we're -- it sounds like you're expecting some pretty material acceleration. And by my math it looks like we could cross 30% CPaaS growth in Q4. Just help me understand what's driving that? Is it just the success of the onboarding of customers that we're seeing now with those customers ramping over the course of the year? Or is that large customers, existing customers ramping? Just help me understand -- unpack the drivers of that accelerating growth.

今晚由 DJ 代替 Richard 在線上。我想請教 CPaaS 營收的線性（linearity）表現。這有點是你們在這份財測中所隱含的。我的意思是，如果我們看上半年與下半年的權重分配，很明顯——聽起來你們預期會有相當顯著的加速。按我的計算，我們可能在第四季跨越 30% 的 CPaaS 成長。能否幫我理解是什麼在驅動這件事？是因為我們現在看到的新客戶導入（onboarding）很成功，這些客戶在一年內逐步放量（ramp）嗎？還是大型客戶、既有客戶在放量？請幫我理解——拆解一下推動成長加速的因素。

DJ, this is Jeff. Definitely you're seeing it right. The business is set up for a stronger second half of the year, and there's really 2 primary reasons for that. One is based on our close collaboration with our existing enterprise customers who give us insight into their go-forward usage growth on the platform, we see more opportunity there to grow those revenues and these relationships in the second half of the year. Secondly, we expect the strong go-to-market investments that we made in 2018 will increasingly provide revenue growth contribution from new customers as our larger sales force reaches full productivity in the second half of the year. So it's both of those factors that are setting up our year this way, and we like some of the early signals that we're seeing out of the sales force like the 121 net additions that we referenced in our prepared remarks.

DJ，我是 Jeff。你看到的確實沒錯。我們的業務布局使得下半年會更強勁，主要有兩個原因。第一，基於我們與既有企業客戶的緊密合作，他們讓我們更了解其在平台上未來使用量的成長；我們看到在下半年有更多機會擴大這些營收與關係。第二，我們預期 2018 年所做的強力 go-to-market（市場推進）投資，將在下半年隨著更大規模的銷售團隊達到完全生產力，愈來愈多地由新客戶帶來營收成長貢獻。因此，正是這兩個因素讓我們今年呈現這樣的走勢；而且我們也喜歡目前從銷售團隊看到的一些早期訊號，例如我們在事先準備的發言中提到的 121 個淨新增。

Yes. Got it. And then second question just in terms of mix. I mean it sounds like maybe messaging, you called out a couple of deals, right? You had -- A2P was called out as a new product in the press release and then you talked about the retail point of sale win, which is also a messaging win. Are you seeing more interest or traction there? And can you kind of qualify -- obviously, messaging's coming off of a smaller base, but is it growing as a percent of the business mix? And what are the implications on margins there?

是的。了解。那第二個問題是關於組合（mix）。我的意思是，聽起來可能是訊息（messaging）方面，你提到幾筆交易，對吧？你們——新聞稿中把 A2P 點名為新產品，然後你也談到零售端點銷（POS）的得標案，那也是一個訊息業務的勝利。你們是否看到那邊有更多興趣或動能？以及你能否稍微量化一下——顯然訊息業務是從較小的基礎起步，但它在整體業務組合中的占比是否正在上升？那對毛利率有什麼影響？

DJ, this is David. So historically, our voice revenues have been approximately 94% messaging, right now at around 96%. And we see the trajectories of those percentages being relatively consistent. So there is interest for sure, given the fluidity of the messaging space, but we're having great success with voice simultaneous. So I don't think there'll be a substantial or material change to that mix.

DJ，我是 David。所以從歷史上看，我們的語音營收大約是 94%，訊息營收目前大約是 96%。我們認為這些百分比的走勢會大致維持一致。因此，考量到訊息市場的變動性，確實有興趣；但同時我們在語音方面也非常成功。所以我不認為這個組合會出現顯著或重大的變化。

Okay. Perfect. Maybe one last one if I could slip it in. Enterprise Connect, you guys had a much bigger presence this year. I think it was down to -- attendee name badges were labeled Bandwidth. Any discernible yield from that in terms of pipeline? Or any other measure that you're tracking?

好的。完美。如果可以的話，我再塞最後一個問題。Enterprise Connect，你們今年的曝光度大很多。我記得甚至——與會者的名牌上都標了 Bandwidth。在管線（pipeline）方面，有沒有任何可辨識的產出？或是你們還在追蹤其他衡量指標？

As you know, we focus a great deal on sales and marketing efficiency and the conversion off of our spend historically in terms of gross profit payback period, and we were pleased with Enterprise Connect historically before this year. And so we invested accordingly, and we're proud of our marketing team and Noreen Allen, and our Chief Marketing Officer, had a great experience. And we think that that investment will pay off over time.

如你所知，我們非常重視銷售與行銷效率，以及歷來在支出轉換上的表現，例如以毛利回收期（gross profit payback period）來衡量；而且在今年之前，我們對 Enterprise Connect 的成效就已經感到滿意。因此我們相應地加大投資；我們也為行銷團隊感到自豪，Noreen Allen 以及我們的行銷長（Chief Marketing Officer）都有很好的體驗。我們認為這項投資會隨時間推移而帶來回報。

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

下一個問題來自 Morgan Stanley 的 Meta Marshall。

This is Stefan dialing in for Meta. Could you talk about how you're prioritizing the interest you're getting from international? Do you have an obligation to meet an anchor customer first? So you -- will you be able to service all immediately?

我是 Stefan，代 Meta 連線提問。你能談談你們如何優先處理來自國際市場的興趣嗎？你們是否必須先滿足一個錨定客戶（anchor customer）的義務？所以你們——能否立即服務所有需求？

Stefan, this is David. We have an obligation to our flagship anchor customer. However, that singular obligation does not prevent us from serving other customer demand from existing relationships that we have in either the U.K., EU or elsewhere. We announced that and don't have any material new update. But to the crux of your question, the fact that we're obligated to support the U.K. anchor tenant does not prevent us from fast-follow or parallel opportunities.

Stefan，我是 David。我們對我們的旗艦錨定客戶（flagship anchor customer）確實有義務。不過，這項單一義務並不會阻止我們去服務其他客戶的需求，尤其是我們在英國、歐盟或其他地區既有關係中的需求。我們已經宣布過，目前沒有任何重大的新更新。但就你問題的核心而言：我們有義務支援英國的 anchor tenant，並不妨礙我們快速跟進（fast-follow）或平行推進其他機會。

Okay. One last question. As far as the net extension rate contracting, is this just a matter of difficult compares? Or is there an explanation for the contraction?

好的。最後一個問題。關於淨擴張率（net extension rate）下滑，這只是因為比較基期很難（difficult compares）嗎？還是有其他原因導致收縮？

Yes. Thanks for the question. This is Jeff, I'll take that one. We continue to expand our customer relationships and in turn, our platform usage continues to grow. But to your point, yes, existing customer revenue as reflected in the dollar-base net retention didn't grow as fast in the first quarter as compared to a year ago. And as you pointed out, our first quarter CPaaS revenue comparison to the prior year's challenging, and we outlined on our last call that our strong first quarter 2018 performance had a bunching up of customer growth that resulted in more than double the sequential CPaaS revenue growth we had realized in the previous 8 quarters, which had created a much harder comp for us this time. And so I think that's something that we'll overcome and that's implicit in our annual guidance.

是的。謝謝你的問題。我是 Jeff，我來回答。我們持續擴大客戶關係，因此平台使用量也持續成長。但如你所說，是的，以美元基礎淨留存（dollar-base net retention）反映的既有客戶營收，在第一季的成長速度不如一年前。而且如你指出，我們第一季 CPaaS 營收相較去年同期的比較確實很具挑戰；我們在上次電話會議中也提到，2018 年第一季的強勁表現出現了客戶成長的「集中」現象，使得 CPaaS 營收的季增幅度超過前 8 個季度所達成的連續季增幅度的兩倍，這也讓我們這次面臨更困難的比較基期。因此我認為這是我們會克服的，而這也已隱含在我們的全年指引之中。

So the last thing that I'll say on that is it's very common absent this hard comp that there can be fluctuations in our business and it's very normal for a usage-based business. So if the numbers go up a little bit or down as they did in 2018, very normal for our business.

最後我想補充的是：即便不考慮這個艱難的比較基期，我們的業務也很常見會有波動；對以使用量計價（usage-based）的商業模式來說，這非常正常。所以數字稍微上升或像 2018 年那樣下降一些，對我們的業務而言都很正常。

Our next question comes from the line of Will Power from Baird.

下一個問題來自 Baird 的 Will Power。

Maybe just a follow-up on the dollar-based net retention rate. Jeff, appreciate the -- further color there. How should we think about that going forward? Is that something then that you would expect as you kind of flat that tough comp to accelerate? Can it get back to more recent trends? Any further color on that front?

我想追問一下以美元計的淨留存率（dollar-based net retention rate）。Jeff，感謝你提供更多說明。我們應該如何看待未來的走勢？也就是說，當你們度過這個艱難的比較基期後，你會預期它加速回升嗎？它能回到近期的趨勢水準嗎？在這方面還有沒有更多補充？

Will, so you know that we don't specifically guide on dollar-based net retention. But implicitly, I think you can see that we expect an acceleration in our CPaaS revenue growth rate in the second half of the year. And I think it's fair to assume that some of this growth will come from an improving dollar-based net retention as we overcome that hard comp that we incurred in the first quarter. And we still feel really good about the business, we like the relationships and how we're expanding them with our existing customers. And we have really good visibility into what that usage will be going forward. And so we'd expect an uptick there as we go throughout the year.

Will，如你所知，我們不會對以美元計的淨留存率提供具體指引。但從隱含角度來看，你可以看到我們預期下半年 CPaaS 營收成長率會加速。我認為可以合理假設，其中一部分成長將來自以美元計的淨留存率改善，因為我們會逐步克服第一季所面臨的艱難比較基期。我們對業務仍然非常有信心；我們喜歡與既有客戶的關係，以及我們擴大這些關係的方式。而且我們對未來使用量的走勢有非常好的能見度。因此我們預期隨著年度推進，這項指標會有所回升。

Okay. And then just maybe to come back to international. I know, David, you had noted the investments that are being made in the U.K. and across Europe. How should we think about the cadence of revenue growth there? And was there any -- I'm assuming there wasn't contribution in Q1? Will there be at least some contribution in Q2? Or when will that start to kick in and become more meaningful?

好的。接著可能回到國際業務。我知道，David，你提到在英國以及整個歐洲正在進行的投資。我們應該如何看待那邊營收成長的節奏？另外是否有任何——我猜第一季應該沒有貢獻？第二季至少會有一些貢獻嗎？或者什麼時候才會開始發酵並變得更有意義？

Thanks, Will. We've guided specifically about international '19 being nominal in overall contribution relative to the goals that we've guided overall, and that's consistent and we don't have any change to that guidance. So we are executing well and on track for our plans. But nothing new to change in terms of how we're guiding revenue impact in '19, and then expect there to be meaningful and material growth in '20 and beyond.

謝謝你，Will。我們已明確指引，國際業務在2019年的整體貢獻相對於我們所指引的整體目標而言將是名目上的（占比很小），這點一致，且我們不會對該指引做任何調整。因此我們執行良好，並按計畫推進。但就2019年營收影響的指引而言沒有新的變化；並且我們預期在2020年及之後會有顯著且實質的成長。

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

我們的下一個問題來自JMP的Pat Walravens。

Jeff, can we start with your comment about having really good visibility. So I think it's interesting when you guys guide, can you just talk a little bit about what the inputs are into that? Because most software companies as we have a big pipeline and we assume a close rate, and I get the sense that yours is different because your clients tell you what they need.

Jeff，我們能先從你提到「能見度非常好」的評論開始嗎？所以我覺得你們在給出指引時很有意思，你能否稍微談談那背後的輸入因素是什麼？因為多數軟體公司會說我們有很大的銷售管線，然後假設一個成交率；但我感覺你們的情況不同，因為你們的客戶會告訴你們他們需要什麼。

Pat, yes, I think that's right. We do just sort of as I explained, we worked very closely with our top customers, and we know sort of what their growth plans are and we incorporate that data into our forecasting process. Obviously, in addition to that there is other inputs to our forecast like sales pipeline and understanding to the best of our ability how newly onboarded customers will grow. And I think, thus far, as a public company, we've had a pretty good track record of guiding there. But also want to call out that as our larger sales force comes to fruition and full productivity this year, we'll have a richer mix of revenue and customers we don't know quite as well. And so that's something that we're assimilating into our process. And I think like all things with more time, data and experience, we'll nail that down as well. But just want to identify that risk factor within our process, or difference.

Pat，是的，我想你說得對。我們就像我剛才解釋的那樣，與我們的主要客戶非常緊密合作；我們大致知道他們的成長計畫是什麼，並把這些資料納入我們的預測流程。當然，除此之外，我們的預測也有其他輸入，例如銷售管線，以及在我們能力所及範圍內去理解新上線（onboard）的客戶將如何成長。而且我認為，到目前為止，作為一家上市公司，我們在提供指引方面有相當不錯的紀錄。但我也想指出，隨著我們更大的銷售團隊在今年逐步到位並達到全面生產力，我們的營收組合會更豐富，且會有更多我們不那麼熟悉的客戶。因此這是我們正在納入並消化到流程中的一點。我想就像所有事情一樣，隨著時間、資料與經驗的累積，我們也會把這部分掌握得更精準。但我只是想在我們的流程中，或差異點上，標示出這個風險因素。

All right. Great. And then Dave, how are the regulatory requirements, let's say, in the U.K. different than they are in the U.S.? So my recollection is in the U.S., you and someone else basically had to go stand up in front of every public utility commission to be able to issue phone numbers. But how does that work in the U.K.? What do you need to do?

好。很好。接著Dave，英國的監管要求和美國相比有什麼不同？我記得在美國，你和其他人基本上必須到每一個公共事業委員會（public utility commission）面前去說明，才能發放電話號碼。但在英國是怎麼運作的？你們需要做什麼？

That's true. Yes. The number authority legs are different in the U.K. compared to the U.S. because of 50 states relative to Ofcom. There is also a very real difference in terms of tonality. But I would describe the U.K. process for acquiring numbers as less rigorous in terms of -- in places you have to go stand tall in front of, but there are important differences about how you relate to BT and Vodafone and others, and how Ofcom works with all of us over there when it comes to things like emergency service, 9-1-1 equivalent innovation. And so there is a very real relationship and dialogue that goes into the work that we're doing there. What we believe and have firm conviction on is that the path is clear for us to innovate with our largest customers in the U.S. as they enter those markets and do what they do so well creatively. And the environment is healthy, and Ireland is different than the U.K. and the EU has been different again. But so far we have line of sight to the calendar that we've set for finishing our build-out in the U.K. and EU by the end of this year to support the calling and the services that our large customers are asking for.

沒錯。是的。英國的號碼主管機關（number authority）環節與美國不同，因為美國有50個州，而英國主要是Ofcom。另外在語氣與風格（tonality）上也確實有很大的差異。但我會形容，在英國取得號碼的流程在「需要到哪些地方去當面陳述」這方面沒有那麼嚴格；不過在你如何與BT、Vodafone等業者互動，以及Ofcom在緊急服務、相當於9-1-1的創新等議題上如何與我們所有人合作方面，仍有重要差異。因此我們在那邊所做的工作，確實需要建立非常實際的關係與持續對話。我們相信並且堅信的是：當我們在美國的最大客戶進入那些市場、並以他們一貫非常擅長的創意方式去做他們的事時，我們的創新之路是清晰的。而且整體環境是健康的；愛爾蘭與英國不同，歐盟又是另一種情況。但到目前為止，我們對於按我們既定的時程表，在今年年底前完成英國與歐盟的建置（build-out），以支援我們大型客戶所要求的通話與服務，仍有清楚的能見度。

Okay. Great. And then just sort of a fine point on that. Is the EU -- are there more regulatory hurdles in the EU than there are in the U.K. or the same or less?

好的。很好。接著就這點再追問一個細節。歐盟——歐盟的監管門檻是否比英國更多，還是差不多，或更少？

EU is heavier. You've got French differences compared to German differences relative to privacy and how long you keep call day records or what fields you must validate for addresses to receive phone numbers. So there are heavier burdens I would describe in EU than the U.K.

歐盟更嚴格。法國的要求與德國的要求不同，涉及隱私、你要保留通話日誌（call detail records）多久，或是為了取得電話號碼，你必須驗證地址的哪些欄位。所以我會形容，歐盟的負擔比英國更重。

We have reached the end of question-and-answer session. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation.

我們已到達問答環節的結束。今天的電話會議到此結束，您現在可以掛斷電話線。感謝您的參與。