Bandwidth Inc. (BAND) 2019 Q4 法說會逐字稿

Greetings. Welcome to the Bandwidth Inc. Fourth Quarter and Full Year 2019 Earnings Results Conference Call. (Operator Instructions) Please note, this conference is being recorded.

各位好。歡迎參加 Bandwidth Inc.2019 年第四季及全年財報結果電話會議。(接線員指示) 請注意，本次會議正在錄音。

I will now turn the conference over to Ms. Walas. You may begin.

現在我將把會議交給 Walas 女士。您可以開始了。

Thank you. Good afternoon and welcome to Bandwidth's Fourth Quarter 2019 Earnings Call. Today, we'll be discussing the results announced in our press release issued after the market close. 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 will open up the call for Q&A.

謝謝。各位下午好，歡迎參加 Bandwidth 2019 年第四季財報電話會議。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。今天下午與我一同出席電話會議的有 Bandwidth 執行長 David Morken，以及 Bandwidth 財務長 Jeff Hoffman。他們將先發表準備好的談話，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 first fiscal quarter of 2020 and the full year of 2020 and to the extent provided future periods, 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 2020 會計年度第一季及 2020 全年（以及在提供的範圍內之未來期間）的財務指引、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 or revise these forward-looking statements.

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。

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. 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 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.

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有重大差異。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 close of market 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, I'd like to turn the call over to David.

接下來，我想把電話會議交給 David。

Thank you, Sarah, and thank you to everyone joining us on the call.

謝謝你，Sarah，也感謝各位加入本次電話會議。

I would like to begin by saying a few short thank yous for an amazing 2019. First, thank you to our incredible enterprise customers for trusting us to help you succeed. We are looking forward to achieving more great things together in 2020. Thank you to all our band mates. Your commitment to serve each other and our customers is unrivaled. Your honesty, intelligence and overcoming spirit were essential to us executing our mission to develop and deliver the power to communicate. To our investors, thank you for your faith and confidence in our flexible software APIs, owner-operated, all-IP nationwide voice network and our team. And most importantly, I want to thank God for his faithfulness during each and every one of the last 20 years at Bandwidth.

我想先用幾句簡短的致謝，感謝精彩的 2019 年。首先，感謝我們卓越的企業客戶信任我們，讓我們協助您取得成功。我們期待在 2020 年與各位一起達成更多卓越成果。也感謝我們所有的 band mates（團隊夥伴）。你們彼此以及對客戶的服務承諾無與倫比。你們的誠信、智慧與克服困難的精神，對我們落實「開發並交付溝通力量」的使命至關重要。致我們的投資人，感謝你們對我們彈性的軟體 API、由經營團隊自營的全 IP 全國語音網路，以及我們團隊的信任與信心。最重要的是，我要感謝上帝在 Bandwidth 過去 20 年每一天的信實帶領。

Now let's talk about our results. I am incredibly proud of our team for finishing out 2019 on a strong note with a solid quarter. Our CPaaS revenue increased 21% year-over-year, driving total revenue in the quarter of $62 million. In the fourth quarter, we grew our active CPaaS customers a record 40% year-over-year. During the quarter, our broad-based growth drove strong revenue results, which were amplified by the strategic customer relationships we discussed on our last call.

現在讓我們談談業績表現。我為我們團隊在 2019 年以穩健的一季、強勁的姿態收官而感到無比自豪。我們的 CPaaS 營收年增 21%，帶動本季總營收達 6,200 萬美元。在第四季，我們的活躍 CPaaS 客戶數年增 40%，創下紀錄。本季我們廣泛的成長動能帶來強勁的營收成果，並因我們在上次電話會議中提到的策略性客戶關係而進一步放大。

I would like to share a few highlights that demonstrate the depth of our relationship with our customers. We previously announced a relationship with one of the pioneers of modern and mobile point-of-sale solutions for small and medium businesses. In the last 12 months, this global company processed approximately $100 billion of gross payments, and they used Bandwidth's enterprise-grade toll-free messaging solution to deliver digital receipts, loyalty rewards, promotions, appointment reminders, payroll and customer support from businesses to customers. We are excited to announce that we expanded our relationship with this customer to move beyond their point-of-sale solution to another fast-growing division that provides financial tools for individuals as well as the ability to send, spend and store money. This business unit supports use cases like peer-to-peer payments, fractional stock purchases and receipts and notifications. And our enterprise-grade toll-free messaging solution supports all of it.

我想分享幾個重點，展現我們與客戶關係的深度。我們先前宣布與一家現代化與行動式中小企業（SMB）銷售點（POS）解決方案的先驅建立合作關係。在過去 12 個月，這家全球公司處理了約 1,000 億美元的總支付額（gross payments），並使用 Bandwidth 的企業級免付費（toll-free）簡訊解決方案，將數位收據、會員忠誠獎勵、促銷訊息、預約提醒、薪資與客戶支援等內容，從商家傳遞給消費者。我們很高興宣布，我們已擴大與該客戶的合作，從其 POS 解決方案延伸至另一個快速成長的事業部門，該部門為個人提供金融工具，以及匯款、消費與儲值（send, spend and store money）的能力。該事業單位支援的使用情境包括點對點（P2P）支付、零股購買，以及收據與通知。而我們的企業級免付費簡訊解決方案支援上述所有需求。

This company decided to deepen its relationship with Bandwidth because of our proven success delivering their mission-critical communications. Our toll-free messaging solution provides an industry-sanctioned, high-volume, high-delivery application-to-person channel that provides confirmation of mobile handset delivery from message-based receipts. We proved to be the best choice for this customer because of our execution, our unique integration with wireless carrier partners and our superior white glove customer support. We're proud to offer the best CPaaS solution for the company's new offering, which is scaling rapidly. This is a great example of how we expand our role as a trusted partner within large and fast-growing enterprises.

這家公司之所以決定深化與 Bandwidth 的合作關係，是因為我們在交付其關鍵任務（mission-critical）通訊方面已證明成功。我們的免付費簡訊解決方案提供業界認可的高流量、高送達率的應用程式對個人（A2P）通道，並可從以訊息為基礎的收據中提供行動裝置端送達確認。我們之所以成為該客戶的最佳選擇，源於我們的執行力、與無線電信業者合作夥伴的獨特整合能力，以及我們卓越的白手套式（white glove）客戶支援。我們很自豪能為該公司快速擴張的新服務提供最佳 CPaaS 解決方案。這是我們如何在大型且快速成長的企業中，擴大作為可信賴合作夥伴角色的絕佳例子。

In addition to expanding existing customer relationships, we are beginning many new ones with innovative growth-focused enterprises. For example, during the quarter, we entered into a new customer relationship with a cloud-based video conferencing provider that integrates its own unique high-value hardware to serve customers like Yelp, Netflix, Major League Baseball and NASA. Bandwidth's APIs will power the voice calling components of the company's video conferencing platform. The company chose Bandwidth for our easy-to-use APIs and our platform's porting capabilities. This customer shared that we won their business also because of our comprehensive customer support, which helped them navigate onboarding and implementation effectively during off hours when it was most convenient for the company.

除了擴大既有客戶關係之外，我們也正與許多具創新力、以成長為導向的企業建立新的合作關係。例如，本季我們與一家雲端視訊會議服務供應商建立新的客戶關係；該公司整合其獨特的高價值硬體，服務的客戶包括 Yelp、Netflix、美國職棒大聯盟（MLB）以及 NASA。Bandwidth 的 API 將為該公司視訊會議平台中的語音通話元件提供動力。該公司選擇 Bandwidth，原因在於我們易於使用的 API 以及平台的攜碼（porting）能力。該客戶也表示，我們之所以能贏得其業務，還因為我們全面的客戶支援，協助他們在公司最方便的非上班時間有效完成導入與實施。

We are excited to keep winning relationships with fast-growing companies that value our ability to scale our solution as well as our dedicated customer support personnel. We embrace our disruptive role as a CPaaS provider enabling the digital experience and are proud to serve many of the enterprise communications solutions leading this communications transformation. These customers continue to launch new use cases and experiences on our platform and network. In fact, Bandwidth supports the majority of the firms highlighted by the industry research firm, Gartner, whose Magic Quadrant evaluate providers on their ability to execute and completeness of vision.

我們很期待持續贏得更多快速成長公司的合作關係，這些公司重視我們解決方案的可擴展性，以及我們專責的客戶支援人員。我們擁抱作為 CPaaS 供應商的顛覆性角色，以促成數位體驗，並很自豪能為許多引領此一通訊轉型的企業通訊解決方案提供服務。這些客戶持續在我們的平台與網路上推出新的使用情境與體驗。事實上，Bandwidth 支援產業研究機構 Gartner 所重點提及的大多數公司；其魔力象限（Magic Quadrant）依據供應商的執行能力與願景完整性進行評估。

In the Meeting Solutions Magic Quadrant, we have customer relationships with 7 of the 16. In the CCaaS Magic Quadrant, we serve 7 of the 9 recognized providers, and we power each of the 12 companies in the UCaaS Magic Quadrant. These innovative and dynamic customers adopt our API platform and accompanying nationwide network to unlock the creativity of their teams to build and scale enterprise communication.

在「會議解決方案」魔力象限中，我們與 16 家中的 7 家建立了客戶關係。在 CCaaS 魔力象限中，我們為 9 家獲認可供應商中的 7 家提供服務；而在 UCaaS 魔力象限中，我們為其中全部 12 家公司提供支援。這些具創新力且充滿活力的客戶採用我們的 API 平台及配套的全國性網路，釋放其團隊的創造力，以建置並擴展企業通訊。

As a Bandwidth co-founder, it's useful to reflect on our roots when charting our course ahead. From a website and a duplex apartment in 1999 to a 772-person team serving global enterprise companies, we've been reminded of one constant truth: the mission of our team and technology is to serve. We strive to deliver outstanding results as a trusted partner. And in doing so, we've developed a track record of growing with our customers from the Internet giants with whom we spent a decade co-creating solutions to leading enterprise customers across unified communications, contact centers, conferencing and most recently, communication service providers.

作為 Bandwidth 的共同創辦人，在規劃未來方向時回顧我們的根源很有幫助。從 1999 年的一個網站與一間複式公寓，到如今 772 人的團隊為全球企業客戶提供服務，我們再次體認到一個不變的真理：我們團隊與技術的使命就是服務。我們致力於以值得信賴的合作夥伴身分交付卓越成果。在此過程中，我們建立了與客戶共同成長的實績：從我們花了十年共同打造解決方案的網際網路巨頭，到涵蓋統一通訊、聯絡中心、會議，以及最近的通訊服務供應商等領域的領先企業客戶。

Consistent with our strategy we outlined at our IPO in 2017 and core to our growth in 2020 is this continued ability to expand our existing customer relationships as measured by dollar-based net retention. Our growth strategy has also been dependent on earning the trust of new enterprise customers. During 2019, we added 498 new enterprise customers. Importantly, our customers continue to spend an average of more than $130,000 annually with Bandwidth.

與我們在 2017 年 IPO 時所闡述的策略一致，而 2020 年成長的核心在於：持續擴展既有客戶關係的能力，並以以美元計價的淨留存率（dollar-based net retention）衡量。我們的成長策略也仰賴贏得新企業客戶的信任。在 2019 年，我們新增了 498 家新企業客戶。重要的是，我們的客戶持續平均每年在 Bandwidth 的支出超過 13 萬美元。

The investments we have made in our go-to-market teams have proved fruitful in expanding our customer base across a broad range of industries and companies. We've grown our sales and marketing teams from 150 to 212. New sales leaders with enterprise and software experience have brought a wealth of experience and best practice to our sales organization. We added new levels of sales hunters and farmers as well as marketing, lead-generation, sales engineering and sales operations functions. In the coming year, we will reinforce the success of these teams. And we'll do it within our long-time discipline of healthy sales and marketing efficiency ratios and gross payback periods. We want to be the best company in our region for enterprise technology salespeople to both grow their careers and to drive our revenue growth for years to come.

我們在市場拓展（go-to-market）團隊上的投資，已證明有助於在廣泛的產業與公司中擴大客戶基礎。我們將銷售與行銷團隊從 150 人擴增至 212 人。具備企業與軟體經驗的新銷售主管，為我們的銷售組織帶來豐富經驗與最佳實務。我們新增了不同層級的銷售開發（hunter）與客戶經營（farmer）人員，以及行銷、名單開發、銷售工程與銷售營運等職能。在接下來的一年，我們將強化這些團隊的成功。我們也將在長期維持的紀律下達成，包括健康的銷售與行銷效率比率以及毛利回收期。我們希望成為本區域對企業科技銷售人才而言最好的公司，讓他們既能發展職涯，也能在未來多年推動我們的營收成長。

The next part of our growth strategy is platform innovation. We prioritize development of new platform capabilities based on the needs of our enterprise customers, helping them adapt to a dynamic business environment. Among voice enhancements, we are proud to be one of the few industry leaders defining, developing, adopting a critical protocol to diminish illegal robocalling.

我們成長策略的下一部分是平台創新。我們會依據企業客戶的需求，優先開發新的平台能力，協助他們適應動態的商業環境。在語音增強方面，我們很自豪能成為少數產業領導者之一，定義、開發並採用一項關鍵協定，以降低非法自動撥號（robocalling）。

We recently announced that we successfully partnered with Verizon on implementing the STIR/SHAKEN call authentication regime. The new interoperability enables us to more accurately authenticate and verify traffic routed between our networks. As a reminder, the STIR/SHAKEN standards have been developed by telecom industry experts as a step to help stop fraud and abuse in the form of robocalling and inappropriately spoofed numbers. Our customers demand high call quality, and our purpose-built voice network supports our ability to scale at a reliable and consistent quality for the enterprises we serve.

我們近期宣布已成功與 Verizon 合作，導入 STIR/SHAKEN 來電驗證機制。新的互通性使我們能更精準地驗證與核實在我們網路之間路由的通話流量。提醒一下，STIR/SHAKEN 標準由電信產業專家制定，作為協助遏止以自動撥號與不當號碼偽冒（spoofed numbers）形式出現的詐欺與濫用行為的一項措施。我們的客戶要求高通話品質，而我們專為語音打造的網路支援我們以可靠且一致的品質，為所服務的企業進行規模化擴展。

Additionally, in the past year, our investments in data analytics improved our ability to monitor our key customer applications and to proactively detect anomalies. As a result, we can quickly detect issues and failures within other carriers' networks. Our customers in the UCaaS and CCaaS markets value this capability as it helps them to deliver a better user experience for their end users.

此外，在過去一年，我們在資料分析上的投資提升了我們監控關鍵客戶應用程式的能力，並能主動偵測異常。因此，我們可以快速偵測其他電信業者網路中的問題與故障。我們在 UCaaS 與 CCaaS 市場的客戶重視這項能力，因為它能協助他們為終端使用者提供更佳的使用體驗。

During 2019, we launched a full suite of messaging products that support both conversational peer-to-peer use cases as well as commercial application-to-person use cases with toll-free messaging and short code messaging. As a result, in 2019, messaging revenues grew 59%, our fastest growing product. During 2020, we will continue to enhance our analytics to help customers understand any delivery issues with specific carriers in real time. Given the mobile operators' initiatives to block text messaging spam, these insights into mobile operators and their networks help enterprises avoid having mission-critical communication inappropriately blocked by mobile carriers.

在 2019 年，我們推出完整的訊息產品套件，支援對話式的點對點（peer-to-peer）使用情境，以及商業的應用程式對個人（application-to-person）使用情境，包括免付費號碼簡訊（toll-free messaging）與短碼簡訊（short code messaging）。因此，2019 年訊息營收成長 59%，成為我們成長最快的產品。在 2020 年，我們將持續強化分析能力，協助客戶即時了解特定電信業者的任何投遞問題。鑑於行動營運商推動封鎖簡訊垃圾訊息的措施，這些對行動營運商及其網路的洞察，能幫助企業避免關鍵任務通訊被行動電信業者不當封鎖。

We continue to lead the industry with our 911 services. In addition to our emergency calling API, in 2019, our product team deployed a powerful 911 notification engine. When a 911 call takes place within a large enterprise, an e-mail notification is simultaneously sent to on-site security personnel. In subsequent releases, we will add SMS notifications and traditional voice recording notifications as well.

我們持續以 911 服務引領產業。除了緊急呼叫 API 之外，2019 年我們的產品團隊也部署了一個強大的 911 通知引擎。當大型企業內發生 911 來電時，系統會同時向現場保全人員發送電子郵件通知。在後續版本中，我們也將加入簡訊通知以及傳統語音錄音通知。

We also help our customers comply with new regulations, such as Kari’s Law and Section 506 of the Ray Baums Act. Kari’s Law, which just went into effect on February 16, ensures that end users can make calls to 911 in enterprise environments while notifying the enterprise of the emergency. Section 506 of Ray Baums Act with compliance dates in 2021 and 2022 is concerned with the quality of information that's sent to public safety operators when the call is made. With Bandwidth's dynamic location routing, 911 dispatchers can send emergency personnel to the right building, floor and room.

我們也協助客戶遵循新法規，例如 Kari’s Law 與 Ray Baums Act 第 506 條。Kari’s Law 於 2 月 16 日剛生效，確保終端使用者在企業環境中能撥打 911，同時通知企業發生緊急狀況。Ray Baums Act 第 506 條的合規日期為 2021 年與 2022 年，重點在於通話發生時傳送給公共安全接線員的資訊品質。透過 Bandwidth 的動態位置路由，911 派遣人員可將緊急救援人員派往正確的建築、樓層與房間。

For example, Microsoft Teams direct routing customers can leverage our dynamic location-based E911 services and Certified Microsoft Teams direct routing session border controller technologies to deliver a compliant 911 solution.

例如，Microsoft Teams 直接路由（direct routing）客戶可運用我們以動態位置為基礎的 E911 服務，以及經認證的 Microsoft Teams 直接路由工作階段邊界控制器（session border controller）技術，提供符合規範的 911 解決方案。

On the international front, I want to begin by briefly reminding everyone that we are authorized to conduct businesses in 13 European countries, the U.K., 11 members of the European Union in Switzerland. We obtained regulatory authority to provide telecommunication services in these 13 European countries and have begun delivering services to customers. For example, we announced last year our first voice service delivered in the U.K. for a flagship customer. We are also pleased to share that we have now begun providing international messaging services to customers as well.

在國際方面，我想先簡要提醒大家：我們已獲授權可在 13 個歐洲國家、英國、歐盟 11 個成員國以及瑞士開展業務。我們已取得在這 13 個歐洲國家提供電信服務的監管許可，並已開始向客戶交付服務。例如，我們去年宣布為一位旗艦客戶在英國交付了我們的第一項語音服務。我們也很高興分享，我們現在也已開始向客戶提供國際訊息服務。

We have been pleased with the progress of our platform development and are excited to expand our full PSTN replacement CPaaS capabilities to meet existing customer demand. Our international strategy has been to crawl, walk and then run by first learning then building then providing service to meet existing customer demand. True to our DNA as operators, we will achieve our growth strategy of expanding existing enterprise relationships, growing our enterprise customer base and continuing to innovate our platform within the discipline of our long-held commitment to return to profitability in 2021. Jeff will momentarily share our progress toward profitability this year.

我們對平台開發的進展感到滿意，並很期待擴展我們完整的 PSTN 替代型 CPaaS 能力，以滿足既有客戶需求。我們的國際策略是先爬、再走、再跑：先學習，再建置，然後提供服務以滿足既有客戶需求。秉持我們作為營運商的 DNA，我們將在長期堅守於 2021 年恢復獲利的承諾與紀律下，達成成長策略：擴展既有企業關係、擴大企業客戶基礎，並持續推動平台創新。Jeff 稍後將分享我們今年朝向獲利的進展。

In summary, thank you to all those on our call today for continuing to join the band on our journey to develop and deliver the power to communicate. Our cloud-ready voice, messaging and 911 services are built for the enterprise, and we look forward to serving our customers on their journeys to transform critical communications needs. To my fellow band mates, I am excited about all we will accomplish together this year, and I know that our greatest hits are yet to come.

總結來說，感謝今天參與電話會議的各位，持續加入我們的旅程，一同打造並交付溝通的力量。我們的雲端就緒語音、訊息與 911 服務是為企業打造，我們期待在客戶轉型其關鍵通訊需求的旅程中為其提供服務。致我的樂團夥伴們，我對今年我們將共同完成的一切感到振奮，也相信我們最精彩的作品尚未到來。

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

接下來，讓我把電話會議交給 Jeff。

Thank you, David, and good afternoon to everyone joining us on the call. I'm proud of our team who delivered another strong performance in the fourth quarter. During the fourth quarter, our total revenue was $62 million, up 18% year-over-year and $3.1 million above the high end of our guidance range. Within total revenue, CPaaS revenue was $53.4 million, up 21% year-over-year and $2.6 million above the high end of our guidance range. Other revenue contributed the remaining $8.6 million of total revenue, which was $0.5 million above our implied other revenue guidance and up slightly from the same period last year.

謝謝你，David，也向所有參與本次電話會議的各位致上下午好。我為我們的團隊感到自豪，他們在第四季再次交出強勁表現。第四季我們的總營收為 6,200 萬美元，年增 18%，並較我們指引區間上緣高出 310 萬美元。在總營收中，CPaaS 營收為 5,340 萬美元，年增 21%，並較我們指引區間上緣高出 260 萬美元。其他營收貢獻了總營收剩餘的 860 萬美元，較我們推算的其他營收指引高出 50 萬美元，且較去年同期略有成長。

The overperformance in CPaaS revenue continues to be driven by broad-based growth across voice, messaging and 911. The majority of the $2.6 million CPaaS revenue overperformance, above the high end of our guidance range, is attributable to the group of strategic customers that we highlighted on last quarter's earnings call. Our onboarding teams are adept at adapting to the pace of our customers' testing and integration efforts, and in collaboration with our customers, we exceeded our onboarding expectations in the fourth quarter.

CPaaS 營收的超預期表現持續由語音、簡訊與 911 等業務的廣泛成長所帶動。在高於我們指引區間上緣的 260 萬美元 CPaaS 營收超預期中，大部分可歸因於我們在上一季財報電話會議中強調的那一組策略性客戶。我們的導入團隊擅長配合客戶測試與整合工作的節奏進行調整，並且在與客戶協作下，我們在第四季的導入成果超出原先預期。

Now let's move on to other key metrics that drove these solid fourth quarter results. Our expanded go-to-market team continues to attract new customers to our platform. We ended the fourth quarter with 1,728 active CPaaS customers, up 40% year-over-year, once again setting a new record percentage increase. We achieved 113% dollar-based net retention rate in the fourth quarter of 2019 as compared to 121% a year ago. You will recall that in the fourth quarter of 2018, we had the benefit of mid-term election-related usage as well as a large customer testing a new offering that drove higher usage in that quarter.

現在讓我們來看其他推動第四季穩健成果的關鍵指標。我們擴大的上市策略（go-to-market）團隊持續為平台吸引新客戶。第四季結束時，我們的活躍 CPaaS 客戶數達 1,728 家，年增 40%，再次創下新的最高增幅紀錄。2019 年第四季的以美元計價淨留存率為 113%，相較一年前為 121%。各位會記得，2018 年第四季我們受惠於期中選舉相關使用量，以及一位大型客戶測試新產品所帶動的更高使用量。

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 press 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 結果進行討論。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。

Our fourth quarter 2019 non-GAAP gross profit was $31.1 million, yielding a gross margin of 50% as compared with the $24.9 million and the 48% gross margin we achieved in the fourth quarter of 2018. The increase in profitability was driven by higher CPaaS gross margins partially offset by lower other segment gross margins.

2019 年第四季非 GAAP 毛利為 3,110 萬美元，毛利率為 50%，相較於 2018 年第四季的 2,490 萬美元與 48% 毛利率。獲利能力的提升主要來自 CPaaS 毛利率提高，但部分被其他部門毛利率下降所抵銷。

Fourth quarter 2019 adjusted EBITDA was $1.2 million as compared to a loss of $0.1 million of adjusted EBITDA for the same period last year. On a GAAP basis, we reported a net loss of $2 million or a loss of $0.08 per share based on 23.5 million weighted average shares outstanding during the fourth quarter of 2019. Our non-GAAP net loss in the fourth quarter was $0.5 million or a loss of $0.02 per share based on 23.5 million weighted average shares outstanding. This result is favorable to our guidance for the fourth quarter of a net loss of $0.15 to $0.17 per share. The favorable non-GAAP net loss variance as compared to our guidance was driven by an outperformance in both gross profit and operating expense, which was bolstered by some favorable year-end adjustments.

2019 年第四季調整後 EBITDA 為 120 萬美元，相較去年同期調整後 EBITDA 虧損 10 萬美元。以 GAAP 基礎計算，我們淨損 200 萬美元，或每股虧損 0.08 美元，係以 2019 年第四季加權平均流通股數 2,350 萬股計算。第四季非 GAAP 淨損為 50 萬美元，或每股虧損 0.02 美元，同樣以 2,350 萬股加權平均流通股數計算。此結果優於我們對第四季每股淨損 0.15 至 0.17 美元的指引。相較於指引，非 GAAP 淨損表現較佳主要由毛利與營業費用雙雙優於預期所帶動，且部分受惠於一些有利的年終調整。

We continued to invest in our business during the fourth quarter to support future growth. Net cash from operating activities produced $2.2 million, and we utilized $7.7 million in free cash flow, which includes $9.9 million of purchases of property and equipment as well as capitalized software development costs for internal use.

我們在第四季持續投資於業務，以支持未來成長。營運活動產生的淨現金為 220 萬美元，而我們的自由現金流使用了 770 萬美元，其中包含 990 萬美元的固定資產採購，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 2019. Total revenue was $232.6 million, up 14% year-over-year. If one normalizes for the onetime legal settlement we realized in our 2018 other revenue, our year-over-year growth would have been 18% in 2019. Within total revenue, CPaaS revenue was $197.9 million, up 20% year-over-year.

接著快速總結 2019 全年的財務結果。總營收為 2.326 億美元，年增 14%。若將 2018 年其他營收中一次性的法律和解收入影響予以正常化處理，則 2019 年的年增率將為 18%。在總營收中，CPaaS 營收為 1.979 億美元，年增 20%。

Overall, the fundamentals of our business proved strong during a year of continued investment, and we see early signs of payback on those investments as we maintained our non-GAAP total gross margin at 49%, in line with the previous year despite not having the benefit of the legal settlement that we had in 2018.

整體而言，在持續投資的一年中，我們的業務基本面依然強勁；我們也看到投資開始帶來回報的早期跡象，因為即便 2018 年有法律和解收入的挹注、而 2019 年沒有，我們仍將非 GAAP 總毛利率維持在 49%，與前一年一致。

During 2019, adjusted EBITDA was a loss of $1.1 million, and non-GAAP net loss was $5.3 million or a loss of $0.23 per share based on 22.6 million weighted average shares outstanding. Also in 2019, during a period of investment, we maintained strong sales and marketing efficiency of 162% as well as a stellar 14-month gross profit payback, which is a testament to the continued efficacy of our team.

2019 年調整後 EBITDA 虧損 110 萬美元，非 GAAP 淨損為 530 萬美元，或每股虧損 0.23 美元，係以加權平均流通股數 2,260 萬股計算。同樣在 2019 年這段投資期間，我們仍維持強勁的銷售與行銷效率 162%，以及出色的 14 個月毛利回收期，這證明了我們團隊持續的執行成效。

Now I'd like to outline our financial outlook for 2020. In terms of CPaaS revenue, we expect the full year of 2020 to be in the range of $242.2 million to $244.2 million or up 23% at the midpoint of the range. We expect total revenue for 2020 to be in the range of $272.7 million to $274.7 million, up 18% at the midpoint of the range.

接下來我想概述我們對 2020 年的財務展望。就 CPaaS 營收而言，我們預期 2020 全年將落在 2.422 億至 2.442 億美元區間，以區間中點計算年增 23%。我們預期 2020 年總營收將落在 2.727 億至 2.747 億美元區間，以區間中點計算年增 18%。

In 2020, we remain steadfast in our commitment to improve top line growth while progressing towards profitability in 2021 as we've defined by non-GAAP net income. In an effort to achieve this goal, we expect to demonstrate operating leverage in 2020 particularly in our G&A expenses. Accordingly, we will expect non-GAAP net loss to narrow over the course of the year, with the goal of having a loss that is closer to breakeven by fourth quarter of 2020.

在 2020 年，我們仍堅定致力於提升營收成長，同時朝向 2021 年達成獲利（以非 GAAP 淨利定義）邁進。為了達成此目標，我們預期在 2020 年展現營運槓桿，特別是在一般與行政（G&A）費用方面。因此，我們預期非 GAAP 淨損將在全年逐步收斂，目標是在 2020 年第四季使虧損更接近損益兩平。

We're estimating our full year non-GAAP earnings per share to be a loss in the range of $0.17 to $0.27, assuming an annual effective tax rate of 28% and approximately 23.6 million weighted average shares outstanding. We estimate 2020 capital expenditures to be in the range of 8% to 9% of our total revenue.

我們預估全年非 GAAP 每股盈餘將為每股虧損 0.17 至 0.27 美元，假設年度有效稅率為 28%，且加權平均流通股數約為 2,360 萬股。我們預估 2020 年資本支出將約占總營收的 8% 至 9%。

Turning to our guidance for the first quarter of 2020. We expect CPaaS revenue to be in the range of $55.2 million to $55.7 million or up 23% year-over-year at the midpoint of the range. This contributes to our total revenue guidance of $63.2 million to $63.7 million.

接著說明我們對 2020 年第一季的指引。我們預期 CPaaS 營收將落在 5,520 萬至 5,570 萬美元區間，以區間中點計算年增 23%。這也構成我們總營收指引 6,320 萬至 6,370 萬美元。

For your modeling purposes, I'd like to briefly highlight the revenue contribution from the cohort of strategic customer wins we discussed on our last earnings call. The overall size of this revenue opportunity from this group of strategic customers remains consistent. To our benefit, we realized a portion of the revenue contribution in the fourth quarter. As I previously mentioned, the majority of our $2.6 million overperformance in this quarter was driven by the better-than-expected onboarding pace from this group of strategic customers. Going forward, we expect similar contributions to revenue growth that we recognized in the fourth quarter to also be realized in the first and second quarter this year, all of which is incorporated into our guidance.

為了便於各位建模，我想簡要強調我們在上一季財報電話會議中討論的那批策略性客戶得標案，對營收的貢獻。來自這組策略性客戶的整體營收機會規模仍維持不變。對我們有利的是，我們已在第四季實現其中一部分的營收貢獻。如我先前提到，本季 260 萬美元的超預期表現大多由這組策略性客戶導入速度優於預期所帶動。展望未來，我們預期第四季所認列、對營收成長的類似貢獻，也將在今年第一季與第二季實現，且這些都已納入我們的指引之中。

Turning to the first quarter 2020 profitability. Non-GAAP earnings per share is expected to be a loss in the range of $0.10 to $0.12 per share. This outlook assumes weighted average shares outstanding of approximately $23.6 million.

接著談 2020 年第一季的獲利能力。預期非 GAAP 每股盈餘為每股虧損 0.10 至 0.12 美元。此展望假設加權平均流通股數約為 2,360 萬股。

In conclusion, we are pleased with our 2019 performance and are excited about the opportunity ahead of us in 2020. Our business fundamentals are strong and Bandwidth continues to be well positioned to capture the large and expanding CPaaS market as enterprises continue to embed communications into their products and services to deliver mission-critical connected experiences.

總結而言，我們對2019年的表現感到滿意，並對2020年在我們面前的機會感到振奮。我們的業務基本面強勁，隨著企業持續將通訊嵌入其產品與服務，以提供關鍵任務等級的連線體驗，Bandwidth 仍具備良好定位，可掌握龐大且持續擴張的 CPaaS 市場。

And with that, we'll open it up for questions. Operator?

接下來，我們開放提問。接線員？

(Operator Instructions) Our first question is from Richard Davis, Canaccord Genuity.

(接線員指示) 我們的第一個問題來自 Canaccord Genuity 的 Richard Davis。

It's actually DJ on the line for Richard. Congrats on the strong results.

其實是 DJ 代替 Richard 在線上。恭喜你們交出強勁的成果。

Thank you.

謝謝。

So it sounds like you guys have already onboarded at least a portion of the Fortune 500 service provider business that we've been talking about. So you've probably seen some of the usage patterns, right? At scale, it's going to be a ton of new business lines. I think you said about 10 million. So how should we think about the impact there to on-net calling? And I guess more specifically, I'm interested in gross margins, right? You saw some nice improvement in Q4. Is it possible that we see another step-up in gross margins as volumes for those new users start to ramp?

聽起來你們已經把我們一直在談的那筆《財富》500 大服務供應商業務至少有一部分完成上線導入了。所以你們大概已經看到一些使用型態了，對吧？在規模化之後，會有大量新的業務線。我想你說大約是 1,000 萬。那我們應該如何看待它對網內通話（on-net calling）的影響？更具體來說，我關心的是毛利率。你們在第四季看到不錯的改善。當這些新用戶的量開始爬升時，毛利率是否可能再上台階？

It certainly is possible, and we're watching it closely. The characteristics of calling patterns for business customers are favorable in terms of their contribution to the network effect you're talking about. So certainly it's possible, but we aren't getting granular on projecting that. And let me just ask Jeff, if he wants to add to that.

確實有可能，我們也在密切觀察。就你提到的網路效應而言，企業客戶的通話型態特性在其貢獻上是有利的。所以當然有可能，但我們不會細到去做那樣的預測。我也想請 Jeff 看看是否要補充。

Yes. DJ, it's certainly going to be a favorable impact for us. And as you know, we've talked a lot about the power of economies of scale and network effects, but I think those things take time to distill within our platform. Just also reminding there's a lot of other factors that go into gross margins, whether it be the level of investment that we're doing at any given time, product mix, geography, et cetera. And so I just don't want to kind of over-pivot on gross margin, accelerating at a faster pace than it is.

是的。DJ，這對我們肯定會是有利的影響。如你所知，我們談過很多規模經濟與網路效應的力量，但我認為這些需要時間才能在我們的平台內部沉澱並顯現。另外也提醒一下，影響毛利率的因素還有很多，例如我們在任何特定時間點的投資水準、產品組合、地理區域等等。所以我不希望大家過度聚焦在毛利率，期待它以比實際更快的速度加速。

Sure, sure. So being measured, but trends are going in the right direction.

了解，了解。所以會保持審慎，但趨勢是往正確方向走。

And then maybe I can move on to international. So any comment on how many customers you have ramping volumes internationally today? Are all of your Internet giant customers there today?

接著我想談一下國際業務。能否評論一下目前有多少客戶在國際市場上量正在爬升？你們所有的網際網路巨頭客戶現在都已經在那裡了嗎？

And then, I guess, this is a little bit of a harder question, but how should we think about revenue contribution or call volume mix in 2020? Are there any metrics that you plan to share next year to help us kind of track progress there?

另外，我想這題比較難：我們應該如何看待 2020 年的營收貢獻或通話量組合？明年你們是否計畫分享任何指標，幫助我們追蹤那邊的進展？

On the first part of your question, DJ, we did announce last year one of our internet giant customers who had launched with us internationally. We do have more than one, but haven't announced anything else and won't be breaking international out as a separate segment. There are some ways that you can look at international in our SEC filings, but it's early. We're growing this year after learning and building and don't have anything else to announce right now.

DJ，就你問題的第一部分，我們去年確實宣布過其中一家網際網路巨頭客戶已與我們在國際市場上線。我們不只一家，但尚未宣布其他消息，也不會把國際業務拆分為獨立的分部。你可以在我們的 SEC 申報文件中用某些方式看到國際相關資訊，但目前仍屬早期。我們在今年是在學習與建置之後持續成長，現階段沒有其他可宣布的內容。

Our next question is from Will Power, Robert W. Baird & Co.

下一個問題來自 Robert W. Baird & Co. 的 Will Power。

Yes, apologize for any background noise. A quick question on the 2020 revenue guidance, it looks to be modestly above, I think, previous expectations. And that's kind of despite, as I understand, maybe pulling forward a little bit of revenue from the strategic customers into Q4 given that was a source of upside. So maybe just speak to kind of the -- I don't know the upside drivers that's giving you more confidence and kind of the revenue growth outlook for the full year.

是的，若有背景雜音先致歉。關於 2020 年營收指引有個快問：看起來略高於我認為的先前預期。而且據我理解，第四季因策略型客戶帶來上行，你們可能把一部分營收提前拉到 Q4。所以能否談談——我不確定怎麼說——讓你們更有信心的上行驅動因素，以及全年營收成長展望？

Will, this is Jeff. So I think it starts with our strong execution in the fourth quarter, and we're fired up about capitalizing on opportunities ahead of us in 2020. There's a lot of great things going on within our business, and that strength is what gave us the confidence to increase the CPaaS guide from our last call.

Will，我是 Jeff。我認為首先是我們在第四季的強勁執行力，我們也很期待在 2020 年把握眼前的機會。我們業務內部有很多正向進展，而這些強勁表現讓我們有信心把 CPaaS 指引較上次電話會議上調。

Okay. Great. And if I could just maybe sneak one other in just quickly. Great to see all the progress in traffic, in use cases on the SMS side. Given you were initially just on voice, I know that's still the far and wide, biggest part of the business, are there investments you need to make there? Either additional, I don't know, SMS gateways or other infrastructure to kind of support that growth?

好的。謝謝。如果我可以再快速塞一題。很高興看到你們在 SMS 端的流量與使用情境都有進展。鑑於你們一開始只有語音，我知道語音仍然是業務中最大的一塊，你們需要在那方面做投資嗎？例如額外的 SMS 閘道或其他基礎設施，以支援那樣的成長？

The investments in the platform are software, and so we have a developer team dedicated to scaling the platform and rolling out new use cases. And that's the primary investment into that growth.

平台上的投資主要是軟體，因此我們有一個開發團隊專注於平台擴展與推出新的使用情境。這是推動那項成長的主要投資。

Okay. So nothing significant that you'd call out there, okay.

了解。所以沒有什麼你們會特別點名的重大投入，好的。

No.

沒有。

Our next question is from Paul -- Pat Walravens, JMP Securities.

下一個問題來自 JMP Securities 的 Paul——Pat Walravens。

This is Joe on for Pat. Congrats on the quarter.

我是 Joe，代替 Pat。恭喜這一季的表現。

Just back on the messaging, how do you differentiate in that market competitively?

回到訊息業務，你們在競爭上如何在這個市場做出差異化？

There are a number of different flavors of messaging to include person-to-person messaging, application-to-person messaging, long code phone number-originated messaging, short code messaging. And then what we have had great success in providing the enterprise customers like we talked about at the outset of the call, toll-free messaging. And the advantage of toll-free messaging includes being able to verify the delivery of that message and to be able to troubleshoot and diagnose issues with upstream mobile providers. And that has proved very valuable to the enterprise customers that we serve and the use cases that they have with their customers.

訊息有多種不同形式，包括人對人（person-to-person）訊息、應用程式對人（application-to-person）訊息、由長碼電話號碼發送的訊息、短碼訊息。此外，正如我們在電話會議一開始提到的，我們在為企業客戶提供免付費（toll-free）訊息方面取得很大成功。免付費訊息的優勢包括能夠驗證訊息是否送達，並能與上游行動電信業者一起進行故障排除與問題診斷。這對我們服務的企業客戶，以及他們與其客戶之間的使用情境，已被證明非常有價值。

Great. And then just a follow-up there, I believe that component of the CPaaS revenue is around high single digits, if I remember correctly, at some point. But can you give us a sense of maybe how you guys think about how big of a piece of the CPaas that could ultimately grow to in terms of percentage of that revenue line?

很好。接著追問一下，我記得在某個時間點，CPaaS 營收中這個組成大概是高個位數百分比。但你們能否讓我們了解一下，從你們的角度，這塊最終可能成長到 CPaaS 營收線中多大比例？

You bet. When we went public at the end of 2017, messaging represented 6% of our revenue, and we just announced that it has grown to now 10% of our revenue.

當然可以。我們在 2017 年底上市時，訊息業務占我們營收的 6%，而我們剛宣布它已成長到目前占營收的 10%。

I would just add, I think voice -- we'll always be voice-centric and skewed that way. Although, I think there's a lot of room to grow on the messaging side as well.

我再補充一下，我認為語音——我們會一直以語音為核心，並且比重會偏向語音。不過，我也認為訊息端同樣還有很大的成長空間。

Our next question is from Mark Murphy, JPMorgan.

我們的下一個問題來自摩根大通（JPMorgan）的 Mark Murphy。

This is Pinjalim. Congrats on the quarter.

我是 Pinjalim。恭喜本季表現。

Jeff, one question on the guidance. Could you help us understand maybe the assumption on -- about onboarding times for the 2020 revenue guidance? Are you expecting that to be similar to what we saw in Q3? Or is it more what you saw this quarter?

Jeff，關於財測我有一個問題。你能否幫我們理解一下——關於 2020 年營收指引中對導入（onboarding）時間的假設？你們預期會和我們在第三季看到的情況類似嗎？還是更接近本季的情況？

Pinjalim, I think what I'd start with and I think what you're getting at is this new strategic cohort that we were talking about yesterday. And just as a reminder for some folks on the call, they're engaging with us in a deeper partnership way that encompasses exclusivity as well as long-term commitments to multiple products and services all upfront with significant usage volumes. And what we saw last quarter, just as a reminder, was some extended onboarding times, and it makes a lot of sense. This is mission-critical for these organizations that want to test, integrate properly before they move volumes. And so we progressed through that with a number of these customers, most notably the Fortune 500 that's been highlighted. And we have a much better understanding of how these things are going, are taking those lessons learned and have incorporated that into our forecast and feel good about it. But there's no real new learnings to highlight other than we progressed up that learning curve.

Okay. So in terms of just the assumptions, I mean would you say those are pretty much similar to how you guided maybe the initial guidance for 2019?

No. The lessons learned toward the end of '19, as Jeff just mentioned, have now been applied to this year's set of numbers and guidance.

不是。正如 Jeff 剛才提到的，2019 年底的經驗教訓，現在已經應用到今年這一組數字與指引之中。

Specifically, Pinjalim, historically what we've done is seen anywhere on average from 60 to 90 days for an average customer. But they're usually just adding 1 or 2 products, and they're ramping over time in a very measured way. What we saw in this new cohort is extended times up to 180 days, but they're bringing more products at once, high volume, bigger commitment. And so they're just taking, rightly so, a little bit longer time.

更具體地說，Pinjalim，過去我們看到一般客戶平均大約需要 60 到 90 天。但他們通常只新增 1 到 2 個產品，並以非常審慎的方式隨時間逐步放量。而我們在這個新客群看到的是導入時間延長到最多 180 天，但他們一次導入更多產品、量更大、承諾更高。所以他們理所當然會花更長一點的時間。

Understood. Okay. And David, on the messaging thing, it seems like it's growing pretty rapidly. I wanted to ask you about the relationship with verified SMS with Google. How significant is that? And then -- with respect to overall opportunity set? And what happens when RCS becomes more prevalent? How difficult is it to -- is it going to switch to RCS once RCS becomes more prevalent? Or is that complete? Or am I just confusing both of them?

了解。好的。另外 David，關於訊息（messaging）這塊，看起來成長相當快。我想問你們與 Google 的 verified SMS（已驗證簡訊）的合作關係。那有多重要？以及——就整體機會集合而言？還有當 RCS 變得更普及時會怎樣？一旦 RCS 更普及，切換到 RCS 會有多困難——還是那是完全不同的？或是我把兩者搞混了？

I like your question, and I will try to answer it. The verified SMS opportunity is very promising because it augments and adds to and provides more credibility around the sending entity of an SMS message. So it leverages the existing ubiquity of SMS by adding new information fields. So as to your question, how does that look for the future, it looks -- it's early, but it's promising. And it's the right direction for SMS to continue to add the kind of value that it does with the content of a message being understand -- understood to be from a particular individual.

我喜歡你的問題，我會試著回答。verified SMS 的機會非常有前景，因為它能強化、補充並提升 SMS 訊息發送方身分的可信度。也就是在既有 SMS 的普及性之上，新增資訊欄位。所以回到你問的未來會如何——現在還早，但很有希望。而且這是 SMS 持續演進的正確方向，讓訊息內容能被理解——被確認——是來自特定個人。

The second part of your question on RCS, RCS and supporting RCS, we don't think, in any way, impairs the potential for SMS and MMS to continue to federate across walled gardens in an effective fashion that's valuable. So the ubiquity of SMS and MMS, we think, continues to be really a winning strategy. But both verified SMS and RCS are important developments that we are keeping up with.

你問題的第二部分關於 RCS，RCS 以及對 RCS 的支援，我們不認為這會以任何方式削弱 SMS 與 MMS 持續在各個封閉生態（walled gardens）之間有效互通（federate）的潛力與價值。因此，我們認為 SMS 與 MMS 的普及性仍然是一個非常成功的策略。不過，verified SMS 與 RCS 都是重要的發展，我們也會持續跟進。

Our next question is from Meta Marshall, Morgan Stanley.

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

This is Eric on for Meta. Maybe just kind of touching on the international rollout. Where are you on the investments that need to be made? And maybe more specifically, are there further countries you're planning to invest in, in 2020?

我是代 Meta 提問的 Eric。想簡單談一下國際化推進。你們在需要投入的投資方面目前進展到哪裡？更具體地說，2020 年是否還有計畫在更多國家加大投資？

Eric, we built out significantly in 2019 and incurred significant expense for our U.K. and our Frankfurt data centers and the connectivity required to provide service. We do have additional countries that we are targeting, but we will follow demand and build where we have existing customers that we support with traffic in those areas. And so we've baked the cost of continuing to expand internationally within our annual guidance. There's work to be done, but we're excited about the progress we made building in '19, and we are focused on growing revenue in '20.

Eric，我們在 2019 年大幅擴建，並為英國與法蘭克福資料中心以及提供服務所需的連線投入了可觀費用。我們確實還有其他鎖定的國家，但我們會跟隨需求，在我們已有客戶、且在那些地區有流量需要支援的地方進行建置。因此，我們已將持續擴展國際版圖的成本納入年度指引之中。還有工作要做，但我們對 2019 年建置所取得的進展感到振奮，並專注於在 2020 年推動營收成長。

And then maybe just -- I know you touched on before the gross margin uptick and that things are starting to trend in the right direction. But just for modeling purposes, as we're looking at putting our numbers together, should we think of the level in Q4 as sustainable? Could there be offsets that would push that back down? Or is it mostly upward trajectory?

另外也許再問一下——我知道你之前提到毛利率上升、而且趨勢開始往正確方向走。但就建模（modeling）而言，當我們在整理預估數字時，是否應該把第四季的水準視為可持續？是否可能有一些抵銷因素讓它回落？還是大致上會是向上趨勢？

Eric, this is Jeff. We're very excited to see, not only the fourth quarter revenue where we achieved 50% gross margins, but we saw that earlier this year as well. And so we're certainly bouncing around that area. How I would think about our gross margins on a non-GAAP basis for 2020 is in the high 40s. And what -- it's going to matter, with some of the things I was talking about earlier, in terms of the level of investment that we make throughout the year and the timing of that, that can impact the overall gross margin. And how network effects, like we were talking about DJ with, product mix, geography, et cetera, now more so, foreign exchange, how all these things will inform the margin. And that's sort of how we're getting to the high 40s like we ended up this year.

Eric，我是 Jeff。我們很高興看到，不僅第四季營收表現亮眼、毛利率達到 50%，今年稍早我們也曾看到這樣的水準。因此我們確實在那個區間附近波動。我會這樣看 2020 年非 GAAP 口徑的毛利率：大約在 40% 後段（high 40s）。而——如我先前提到的一些事項——全年投資的強度與時點會影響整體毛利率。另外還有網路效應（network effects）（就像我們先前和 DJ 討論的）、產品組合、地理分布等等；而現在外匯因素也更重要了，這些都會影響毛利率。這也就是我們如何推導出大約 40% 後段、與今年最終水準相近的原因。

Our next question is from Rich Valera, Needham & Company.

我們的下一個問題來自 Needham & Company 的 Rich Valera。

You guys have seen some very nice growth of active CPaaS customer accounts, and I think you actually noted that you saw record growth there, 41%, and that's been going on for several quarters. So just wondering how we should think of that as potentially a leading indicator of your business since you're kind of growing customer accounts at roughly 2x the rate of your revenue growth right now. How should we think about that eventually bridging or not and just as a leading indicator?

你們的活躍 CPaaS 客戶帳戶數成長非常不錯，我想你們也提到那裡出現了創紀錄的成長，達到 41%，而且已經持續好幾季。所以我想了解，我們應該如何把這視為你們業務的潛在領先指標（leading indicator），因為你們目前客戶帳戶的成長率大約是營收成長率的 2 倍。我們應該如何看待這個差距未來是否會收斂、或不會收斂，以及它作為領先指標的意義？

Rich, this is Jeff. It is a good leading indicator, so you're absolutely on the right track. What we always caution folks about is in our business, as a usage-based revenue business, we don't see a lot of intra-quarter revenue because customers are, once again, testing, getting familiar with our platform and -- before they integrate with the APIs and then begin consuming services. And so it takes time for that to do that.

Rich，我是 Jeff。這確實是一個很好的領先指標，所以你的方向完全正確。我們一向提醒大家的是，在我們這種以使用量為基礎的營收模式中，我們不會在單一季度內看到很多即時的營收貢獻，因為客戶通常會先測試、熟悉我們的平台——在他們整合 API 並開始使用服務之前，因此這需要時間。

We're very pleased with the results, and I think it speaks favorably for our business to set another new record. And we're a little bit of a broken record on this, in that we've set multiple records here. And again, a lot of that is due to the surge effort that we undertook in 2018 and maturing the business in 2019 that we're setting these new records. So I think it's a good way to inform it. In terms of modeling, what we've always stressed with great analysts like yourselves is that we think dollar-based net retention and new logo revenue growth are probably more useful measures to do your modeling.

我們對這些成果感到非常滿意，我認為這也正面反映了我們的業務再次創下新紀錄。而且在這件事上我們有點像「跳針」，因為我們在這裡已經創下多項紀錄。再者，其中很大一部分要歸功於我們在2018年所採取的衝刺行動，以及在2019年讓業務逐步成熟，才得以創下這些新紀錄。所以我認為這是一個很好的說明方式。就建模而言，我們一直強調、也對像各位這樣優秀的分析師說明，我們認為以美元計價的淨留存率（dollar-based net retention）以及新客戶（new logo）營收成長，可能是你們進行建模時更有用的衡量指標。

Fair enough. And then it sounds like you've got pretty good visibility to nice sequential bump-ups in Q1 and Q2 as you onboard the strategic cohort that we've been talking about. I'm thinking, as you get into the second half that they're more or less onboarded and you would need some new perhaps strategic accounts or some other business to drive that second half ramp that's embedded in guidance. Can you talk about sort of what drives that second half ramp? Do you need to have new strategic wins? Are those in the forecast in the pipeline? Just any color on that would be helpful.

可以理解。接著聽起來，隨著你們把我們一直在談的那批策略性客戶群（strategic cohort）逐步導入上線，你們對第一季和第二季營收的逐季提升有相當不錯的能見度。我在想，到了下半年，他們大致都已完成導入，你們可能就需要一些新的、也許是策略性帳戶或其他業務，來推動指引中所隱含的下半年爬坡。你能談談下半年爬坡主要由什麼驅動嗎？你們需要新的策略性勝利（strategic wins）嗎？這些是否已在預測的管線中？任何補充說明都會很有幫助。

Rich, this is David. We are continuing to onboard, as you mentioned, this cohort throughout first half of the year. And as Jeff mentioned earlier, these companies are engaging our platform very broadly and very deeply. After onboarding, there's a scaling season as well. And so they'll continue to grow with us, not just for the 6 months that -- during which we onboard. When onboarding happens, there's a period where they're continuing to grow with us. In addition, the growth is more broad-based than just this cohort. The sales funnel and the opportunity pipeline includes new customers that we have added or are adding in our projections that support the guidance that Jeff provided earlier.

Rich，我是David。如你所提，我們會在上半年持續為這批客戶群進行導入上線。而且如Jeff先前提到，這些公司在使用我們的平台時，涵蓋面非常廣、使用深度也非常高。導入完成後，還會有一段擴張期（scaling season）。因此，他們會持續與我們一起成長，不僅僅是在我們導入的那6個月期間。當導入發生後，會有一段他們持續與我們共同成長的期間。此外，成長動能也不僅僅來自這一批客戶群，而是更為廣泛。銷售漏斗與商機管線也包含我們已新增或在預測中將新增的客戶，這些都支撐了Jeff先前提供的指引。

Our next question is from Alex Kurtz, KeyBanc Capital Markets.

下一個問題來自KeyBanc Capital Markets的Alex Kurtz。

So I just want to rewind a bit to what happened 90 days ago and what we're hearing today. It sounds like there was a real change and improved visibility with these strategic accounts. And I was just kind of wondering if you could kind of double-click on what happened over the last 3 months here to give you this better visibility, which is great for the model and great for 2020, but I'm just trying to -- you alluded to it earlier, but I just want to know if there's any bit more behind it.

我想先回顧一下90天前發生的事，以及我們今天聽到的內容。聽起來你們在這些策略性帳戶上確實有了重大變化，且能見度有所提升。我想請你們更深入說明一下，過去3個月到底發生了什麼，讓你們獲得更好的能見度；這對模型很有幫助、對2020年也很有利，但我只是想——你們先前有提到一些，但我想知道背後是否還有更多細節。

You bet. This is David. As we talked about for the Q4 period, we had learned that it was taking longer to onboard. It is a tremendous credit to the operating teams here at Bandwidth and at our customers that we have been able to accelerate and grow faster than we thought we were going to, and it's really quite that simple. The words that I have from our customers in this cohort for the work that we've done on our side for our team include adjectives like awesome, excellent, top-notch, friendly. And so we have just outperformed beyond our expectations, and that's what's led to the improvement.

當然可以。我是David。如我們在第四季期間所談到的，我們了解到導入上線所需時間比預期更長。這要高度歸功於Bandwidth以及我們客戶端的營運團隊：我們能夠加速導入、且成長速度比我們原先預期更快，事情其實就這麼簡單。我們從這批客戶群的客戶那裡聽到，他們形容我們團隊在我們這一端所做的工作，用的形容詞包括「很棒（awesome）」、「優秀（excellent）」、「一流（top-notch）」、「友善（friendly）」等。因此，我們的表現確實超出預期，而這也帶來了能見度的改善。

Okay. And -- that's helpful. And then on messaging, just given the growth that you're seeing here and how it may impact '20 margin levels, I was just wondering if that's giving you any confidence on how that might trend during the year as the mix grows with messaging.

好的。這很有幫助。接著在訊息（messaging）方面，考量你們目前看到的成長，以及它可能對2020年毛利率水準的影響，我想知道這是否讓你們對今年毛利率走勢更有信心，因為營收組合會隨著訊息業務而提升。

Sure, Alex, this is Jeff. I'll take that one. So messaging gross margins are accretive to our overall gross margins. There's already many flavors, as David talked about in one of the other questions or responses to a question. But overall, it is accretive. And so that's one of the healthy factors to our gross margin that offset things like further investment.

當然，Alex，我是Jeff。我來回答這題。訊息（messaging）業務的毛利率對我們整體毛利率是具增益（accretive）的。如David在其他問題的回答中提到，訊息業務本身也有很多不同的型態。但整體而言，它是具增益的。因此，這是支撐我們毛利率的健康因素之一，可用來抵銷例如進一步投資等因素的影響。

Our next question is from David Wallace, Dougherty & Company.

下一個問題來自Dougherty & Company的David Wallace。

This is David. I'm calling in for Catharine Trebnick. I guess my question is, you mentioned earlier on some operating leverage that you would expect throughout the year. You mentioned specifically that most of it would come from G&A. I wonder if you could just talk a little bit about how we should be thinking about R&D and sales and marketing margins going into the future.

我是David。我代替Catharine Trebnick來提問。我想問的是，你們先前提到今年會看到一些營運槓桿（operating leverage）。你們特別提到大部分會來自一般與行政（G&A）。我想請你們談談，未來我們應該如何看待研發（R&D）以及銷售與行銷（sales and marketing）的利潤率/費用率走勢。

Dave, this is Jeff. I will do my best to answer your question. So you're correct and heard correctly that where we think we're going to see the most pronounced operating leverage during 2020 will be in our G&A expenses as a percent of revenue. You should see that go down. Conversely, we continue to invest in R&D and sales and marketing, our go-to-market team. And we -- although we've had a surge in the past, where there was really large amounts of additions, both nominally and percentage, this year it will grow more in line with the revenue growth, and so you should end up with roughly similar percentage of revenues that you saw in 2019 in 2020.

Dave，我是Jeff。我會盡力回答你的問題。你說得沒錯、也聽得很正確：我們認為2020年最明顯的營運槓桿，將會體現在一般與行政（G&A）費用占營收比重上。你應該會看到這個比重下降。相對地，我們仍會持續投資於研發以及銷售與行銷，也就是我們的市場推進（go-to-market）團隊。而且——雖然過去我們曾有過一次衝刺期，當時無論以名目金額或占比來看，人員與投入的增加幅度都很大；但今年這些費用將更貼近營收成長的步調，因此你在2020年看到的占營收比重，應會與2019年大致相近。

We have reached the end of the question-and-answer session, and this does conclude today's conference. You may disconnect your lines at this time.

我們已到達問答環節的結束，今天的電話會議也到此結束。您現在可以掛斷電話線。

Thank you for your participation, and have a great day.

感謝各位的參與，祝您有美好的一天。