Freshworks Inc (FRSH) 2024 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Freshworks' First Quarter 2024 Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 Freshworks 2024 年第一季電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to turn the conference over to your speaker today, Joon Huh, Head of Investor Relations. Please go ahead.

我現在想把會議交給今天的發言人，投資者關係主管 Joon Huh。請繼續。

Thank you. Good afternoon, and welcome to Freshworks' First Quarter 2024 Earnings Conference Call.

謝謝。下午好，歡迎參加 Freshworks 2024 年第一季財報電話會議。

Joining me today are Girish Mathrubootham, Freshworks' Chief Executive Officer; Dennis Woodside, Freshworks' President; and Tyler Sloat, Freshworks' Chief Financial Officer.

今天和我一起來的還有 Freshworks 執行長 Girish Mathrubootham； Dennis Woodside，Freshworks 總裁；和 Freshworks 財務長 Tyler Sloat。

The primary purpose of today's call is to provide you with information regarding our first quarter 2024 performance and our financial outlook for our second quarter and full year 2024.

今天電話會議的主要目的是向您提供有關我們 2024 年第一季業績以及我們第二季和 2024 年全年財務前景的資訊。

Some of our discussion and responses to your questions may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Freshworks current expectations and estimates about its business and industry, including our financial outlook, macroeconomic uncertainties, management's beliefs and certain other assumptions made by the company, all of which are subject to change.

我們對您問題的一些討論和答覆可能包含 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。 、宏觀經濟的不確定性、管理階層的信念以及公司所做的某些其他假設，所有這些都可能發生變化。

These statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those projected in the forward-looking statements. Such risks include, but are not limited to, our ability to sustain our growth, to innovate, to reach our long-term revenue goals, to meet customer demand and to control costs and improve operating efficiency.

這些陳述受到風險、不確定性和假設的影響，可能導致實際結果與前瞻性陳述中的預測有重大差異。這些風險包括但不限於我們維持成長、創新、實現長期收入目標、滿足客戶需求以及控製成本和提高營運效率的能力。

For a discussion of additional material risks and other important factors that could affect our results, please refer to today's earnings release, our most recently filed Form 10-K and our other periodic filings with the SEC. Freshworks assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this call, except as required by law.

有關可能影響我們業績的其他重大風險和其他重要因素的討論，請參閱今天的收益報告、我們最近提交的 10-K 表格以及我們向 SEC 提交的其他定期文件。 Freshworks 不承擔更新任何前瞻性聲明以反映本次電話會議之後可能發生的事件或情況的義務，除非法律要求。

During the course of today's call, we will refer to certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP financial measures for historical periods are included in our earnings release, which is available on our Investor Relations website at ir.freshworks.com.

在今天的電話會議中，我們將提及某些非公認會計準則財務指標。歷史時期的 GAAP 和非 GAAP 財務指標之間的調整包含在我們的收益發布中，可在我們的投資者關係網站 ir.freshworks.com 上查看。

I encourage you to visit our Investor Relations site to access our earnings release, supplemental earnings slides, periodic SEC reports, a replay of today's call or learn more about Freshworks.

我鼓勵您訪問我們的投資者關係網站，以訪問我們的收益發布、補充收益幻燈片、定期 SEC 報告、今天電話會議的重播或了解有關 Freshworks 的更多資訊。

And with that, let me turn it over to Girish.

接下來，讓我把它交給吉里什。

Thank you, Joon, and thank you all for joining us on this call today to cover our first quarter of 2024.

謝謝 Joon，也謝謝大家今天加入我們的電話會議，了解 2024 年第一季的情況。

We delivered solid profitable growth in Q1 as we reported revenue of $165.1 million, reflecting an increase of 20% year-over-year. We meaningfully surpassed our estimate for free cash flow, with $38.7 million in Q1 for a strong free cash flow margin of 23%.

我們在第一季實現了穩健的獲利成長，營收為 1.651 億美元，年增 20%。我們明顯超出了我們對自由現金流的預期，第一季自由現金流為 3,870 萬美元，自由現金流利潤率高達 23%。

Our results reflect aspects of our growth strategy that are working, specifically in AI innovation, IT business momentum and CSS adoption with larger customers as well as the current macro environment.

我們的業績反映了我們成長策略中正在發揮作用的各個方面，特別是在人工智慧創新、IT 業務勢頭和大客戶對 CSS 的採用以及當前的宏觀環境方面。

Before talking about our product and growth initiatives for the business, let me start with the news we announced earlier today that we have signed a definitive agreement to acquire Device42. With more than 800 customers around the world, Device42 provides enterprise-grade IT asset management capabilities, which we believe can further strengthen our Freshservice offering. This is our first acquisition since we became a public company in 2021, and I'm excited about how this will enhance Freshservice, which is currently our fastest-growing business.

在談論我們的產品和業務成長計劃之前，讓我先介紹一下我們今天早些時候宣布的消息：我們已簽署收購 Device42 的最終協議。 Device42 在全球擁有 800 多家客戶，提供企業級 IT 資產管理功能，我們相信這可以進一步增強我們的 Freshservice 產品。這是我們自 2021 年成為上市公司以來的首次收購，我很高興這將如何增強 Freshservice，這是我們目前成長最快的業務。

With this acquisition, we will be able to provide advanced asset discovery and application dependency mapping across data center and cloud environments. Combined with our robust ITOM and ITSM capabilities, this will help IT infrastructure and ops teams track and understand their IT landscape to achieve greater efficiency in service delivery and reliability in IT operations.

透過此次收購，我們將能夠跨資料中心和雲端環境提供先進的資產發現和應用程式依賴關係映射。結合我們強大的 ITOM 和 ITSM 功能，這將幫助 IT 基礎設施和營運團隊追蹤和了解其 IT 環境，以實現更高的服務交付效率和 IT 營運可靠性。

Through the combination, we'll be able to offer a more comprehensive solution for our customers. We have historically partnered with Device42 on large enterprise opportunities in the field. And after the transaction closes, we look forward to serving customers as one integrated team. We expect the transaction to close later in Q2.

透過合併，我們將能夠為客戶提供更全面的解決方案。我們一直與 Device42 就該領域的大型企業機會進行合作。交易完成後，我們期待作為一個綜合團隊為客戶提供服務。我們預計該交易將在第二季晚些時候完成。

Turning to the quarter, I'm pleased with our progress across the business in Q1. First, we advanced AI innovations across our products and platform to improve agent productivity and customer satisfaction. The use of our bots with Freddy Self Service continues to strengthen deflection capabilities across customers' preferred channels.

談到本季度，我對第一季我們整個業務的進展感到滿意。首先，我們在產品和平台上推動人工智慧創新，以提高座席工作效率和客戶滿意度。我們的機器人與 Freddy 自助服務的結合將繼續增強跨客戶首選管道的偏轉能力。

Companies, including Porsche eBike, (inaudible) can leverage self-service capabilities to improve personalization and provide AI-generated answers from their knowledge base.

包括保時捷電動自行車（聽不清楚）在內的公司可以利用自助服務功能來提高個人化，並從其知識庫中提供人工智慧產生的答案。

Over the past quarter, our customers have seen deflection rates of more than 40% presenting from these bots. During the quarter, we made Freddy Copilot generally available to customers, and I'm excited about the initial traction. We received early feedback that customer service agents are realizing more than a 30% improvement in their response times. While it's still early to track Copilot metrics, we are encouraged by the initial results.

在過去的季度中，我們的客戶發現這些機器人的呈現率超過 40%。在本季度，我們向客戶普遍提供了 Freddy Copilot，我對最初的吸引力感到很興奮。我們收到的早期回饋表明，客戶服務代理的回應時間縮短了 30% 以上。雖然追蹤 Copilot 指標還為時過早，但我們對初步結果感到鼓舞。

Mahindra & Mahindra is an Indian maker of cars and farm equipment with more than $16 billion in revenue. Their on-premise ITSM solution became complicated to manage, had a funky UI and poor self-service capabilities. The company says adopting Freddy Copilot on top of Freshservice has been a game changer. The solution article generator feature, in particular, is enabling more than 1,000 engineers to make knowledge management more efficient and enjoyable. And now the company plans to scale these products across other teams.

Mahindra & Mahindra 是一家印度汽車和農業設備製造商，年收入超過 160 億美元。他們的本地 ITSM 解決方案管理起來很複雜，使用者介面很時髦，自助服務功能也很差。該公司表示，在 Freshservice 之上採用 Freddy Copilot 改變了遊戲規則。尤其是解決方案文章產生器功能，使 1,000 多名工程師能夠使知識管理更加高效和愉快。現在該公司計劃將這些產品擴展到其他團隊。

We also saw continued momentum in our IT business with mid-market and enterprise customers. Customers are choosing us because our products are enterprise-grade with a much lower total cost of ownership, including the latest AI capabilities. A global leader in golf equipment needed to find a way to solve for its 2,000 employees walking up to the IT service desk with simple or complex problems. After deploying Freshservice, they later adopted our Freddy Self Service capabilities. With the help of our latest AI bot, the company has been able to further automate requests and significantly reduce resolution times and eliminate the lines waiting for IT help.

我們也看到中端市場和企業客戶的 IT 業務持續成長。客戶選擇我們是因為我們的產品是企業級的，總擁有成本低得多，包括最新的人工智慧功能。高爾夫設備領域的全球領導者需要找到一種方法來解決其 2,000 名員工前往 IT 服務台遇到的簡單或複雜的問題。部署 Freshservice 後，他們隨後採用了我們的 Freddy 自助服務功能。在我們最新的人工智慧機器人的幫助下，該公司能夠進一步自動化請求，大幅縮短解決時間，並消除等待 IT 協助的團隊。

We continue to invest in helping organizations manage their IT infrastructure and operations. In Q1, we enabled IT teams to proactively communicate the status of critical services to their stakeholders using Status Pages. This has increased trust and led to reduced incident reports during service downtime.

我們繼續投資幫助組織管理其 IT 基礎設施和營運。在第一季度，我們讓 IT 團隊能夠使用狀態頁面主動向利害關係人傳達關鍵服務的狀態。這增加了信任並減少了服務停機期間的事件報告。

One such customer taking advantage of this capability is the Statue of Liberty Ellis Island Foundation. With more features and improvements, we are winning more mind share with CIOs as we go after the large market opportunity in ITSM, ESM and beyond.

自由女神像埃利斯島基金會就是利用此功能的客戶之一。隨著更多的功能和改進，我們在追求 ITSM、ESM 及其他領域的巨大市場機會時贏得了更多 CIO 的關注。

Turning to the CS business. Adoption continues to grow for our customer service suite, our multichannel solution that combines conversational support with robust ticketing features empowered with AI. Companies like Monica Vinader and Stitch Fix are choosing CSS. Stitch Fix employs more than 5,000 people and leverages styles and AI to deliver personalized clothing and accessories to over 3 million customers. Their previous customer service solution was expensive and complicated with outdated AI technology. A long-standing Freshservice customer, Stitch Fix adopted Customer Service Suite as their solution in Q1, largely because of our leading AI innovations, including our copilot capabilities.

轉向CS業務。我們的客戶服務套件的採用率持續成長，我們的多通路解決方案將對話支援與人工智慧支援的強大票務功能相結合。 Monica Vinader 和 Stitch Fix 等公司正在選擇 CSS。 Stitch Fix 擁有 5,000 多名員工，利用款式和人工智慧為超過 300 萬名客戶提供個人化服裝和配件。他們先前的客戶服務解決方案昂貴且複雜，且人工智慧技術過時。作為 Freshservice 的長期客戶，Stitch Fix 在第一季採用了客戶服務套件作為他們的解決方案，這很大程度上是因為我們領先的人工智慧創新，包括我們的副駕駛功能。

Freddy Copilot is boosting productivity for agents as power users have seen a reduction of resolution and response times of more than 30%, and CSAT scores increased on average by more than 5%. As we continue to improve productivity from these agents, we believe this will lead to higher adoption within organizations and more expansion opportunities.

Freddy Copilot 正在提高座席的工作效率，因為高級用戶的解決率和回應時間減少了 30% 以上，並且 CSAT 分數平均提高了 5% 以上。隨著我們不斷提高這些代理商的生產力，我們相信這將導致組織內更高的採用率和更多的擴展機會。

This quarter, we introduced sentiment analysis for real-time insights into the emotional tone of customer interactions. We also added generative AI-led quality management capabilities like article suggestions and auto completion to help support teams deliver superior responses. Within one quarter, these capabilities generated over 38 million interactions.

本季度，我們引入了情感分析，可以即時洞察客戶互動的情緒基調。我們還添加了由人工智慧主導的生成品質管理功能，例如文章建議和自動完成，以幫助支援團隊提供卓越的回應。在一個季度內，這些功能產生了超過 3800 萬次互動。

Finally, I want to acknowledge today's news that I'm transitioning into an Executive Chairman role at Freshworks, and Dennis Woodside, currently Freshworks' President, will assume the Chief Executive Officer role. I'm incredibly proud of what we have accomplished at Freshworks since I founded the company 14 years ago. We are the first Indian SaaS company to be listed on NASDAQ, a true friend to more than 67,000 customers around the world and home to our 4,900 strong global (inaudible). Our business is strong, and we have a fantastic platform to launch Freshworks into a sustainable and growing public company.

最後，我想確認今天的消息，我將轉任 Freshworks 執行主席，Freshworks 現任總裁 Dennis Woodside 將擔任執行長。自從 14 年前創立 Freshworks 以來，我對我們所取得的成就感到無比自豪。我們是第一家在納斯達克上市的印度 SaaS 公司，是全球 67,000 多名客戶的真正朋友，也是我們全球 4,900 名強大客戶的所在地（聽不清楚）。我們的業務很強大，我們擁有一個絕佳的平台，可以將 Freshworks 打造成一家可持續發展的上市公司。

Through these 14 years of building and scaling Freshworks, our hiring philosophy takes inspiration from an ancient poem from Tirukkural, written by a Tamil poet and philosopher Thiruvalluvar 2,000 years ago. (foreign language). Translated in English, it means find the right person with the skills and resources to finish the job and empower them to do it.

在這14 年的建設和擴展Freshworks 的過程中，我們的招募理念從蒂魯庫拉爾(Tirukkural) 的一首古詩中汲取靈感，這首詩是泰米爾詩人兼哲學家Thiruvalluvar 於2,000 年前寫的。 （外語）。用英語翻譯，它的意思是找到擁有技能和資源的合適人來完成工作，並授權他們完成工作。

After seeing this play out beautifully over the years, the time has come to apply this to the CEO role at Freshworks, and I'm fully confident that Dennis is the right leader to step into the CEO role. His deep understanding of the Freshworks business, his admiration and respect for our Indian roots, ability to attract world-class talent and the operational excellence he has brought in to Freshworks over the last 18 months, gives me the confidence to pass over the baton to Dennis, and I look forward to being his trusted adviser in my new capacity to help make Freshworks software available to the Fortune 5,000,000.

多年來看到這種情況的完美表現後，現在是將其應用到 Freshworks 執行長職位上的時候了，我完全相信丹尼斯是擔任執行長角色的合適領導者。他對 Freshworks 業務的深刻理解、對我們印度根源的欽佩和尊重、吸引世界一流人才的能力以及他在過去 18 個月中為 Freshworks 帶來的卓越運營，讓我有信心將接力棒傳遞給丹尼斯和我期待以我的新身分成為他值得信賴的顧問，幫助向《財星》500 萬強企業提供Freshworks 軟體。

Going forward, I look forward to working with our product teams to drive our AI vision and long-term product strategy. I would like to thank the entire Freshworks team for all the support they have given me over the years. And for delivering another solid quarter as we continue on our mission to deliver modern AI-powered customer and employee service solutions that increase efficiency and improve engagement for companies of all sizes.

展望未來，我期待與我們的產品團隊合作，推動我們的人工智慧願景和長期產品策略。我要感謝整個 Freshworks 團隊多年來給予我的所有支持。我們將繼續履行我們的使命，即提供由人工智慧驅動的現代客戶和員工服務解決方案，以提高各種規模的公司的效率和參與度，從而實現另一個穩定的季度業績。

I would like to congratulate Dennis, and now turn it over to him to share what we are seeing in the marketplace, how larger customers are driving our business growth and how companies are expanding the use of our products.

我要向丹尼斯表示祝賀，現在請他分享我們在市場上看到的情況、大客戶如何推動我們的業務成長以及公司如何擴大我們產品的使用。

Thank you, G. I am honored to build on what G started 14 years ago. What he has created is truly special. Our mission and strategy remain the same. We stand before extraordinary opportunities and have the right foundation to make it possible, a winning combination of our strong on delighting customers and our product innovation. I'm committed and excited to continue our journey of growth.

謝謝你，G。他所創造的東西確實很特別。我們的使命和策略保持不變。我們面臨著非凡的機遇，並擁有使之成為可能的正確基礎，這是我們在取悅客戶方面的實力與我們產品創新的成功結合。我決心並興奮地繼續我們的成長之旅。

As G mentioned, we efficiently scaled the business in Q1. With revenue growth of 20% and strong free cash flow margins of 23%, we exceeded the Rule of 40 for the quarter. We continue to see momentum with larger customers choosing our enterprise-grade solutions.

正如 G 所提到的，我們在第一季有效地擴展了業務。本季營收成長 20%，自由現金流利潤率高達 23%，超出了 40 法則。我們繼續看到大客戶選擇我們的企業級解決方案的勢頭。

In Q1, customers paying over $50,000 in ARR grew 29% to 2,593, representing 49% or nearly half of our business. Our solutions provide enterprise-grade capabilities combined with consumer-level usability to address the needs of large complex organizations.

第一季度，ARR 支付超過 50,000 美元的客戶成長了 29%，達到 2,593 名，占我們業務的 49% 或近一半。我們的解決方案提供企業級功能與消費者級可用性相結合，以滿足大型複雜組織的需求。

For example, Cineworld Group is the world's second largest cinema chain, with more than 700 movie theaters across the U.S., U.K. and other countries. Their prior customer service solution wasn't allowing them to respond to queries fast enough and gain insights into their customers' experience. They adopted Freshdesk across their Cineworld, Picturehouse and Regal customer service teams. Now the company is able to quickly identify and respond to customer queries, understand root causes and develop better steps to resolve them using the power of Freshworks.

例如，Cineworld Group 是全球第二大連鎖影院，在美國、英國和其他國家擁有 700 多家電影院。他們之前的客戶服務解決方案不允許他們足夠快地回應查詢並深入了解客戶的體驗。他們在 Cineworld、Picturehouse 和 Regal 客戶服務團隊中採用了 Freshdesk。現在，該公司能夠利用 Freshworks 的強大功能快速識別和回應客戶查詢、了解根本原因並制定更好的步驟來解決問題。

I'm also very excited about entering into a definitive agreement to acquire Device42. We believe this acquisition will help us win more mid-market and enterprise customers as advanced ITAM capabilities for discovery and dependency mapping are becoming a critical part of the IT purchasing decisions for large customers. With this acquisition, we intend to build on the upmarket momentum and success that we're already seeing with Freshservice for IT customers.

我也對達成收購 Device42 的最終協議感到非常興奮。我們相信，此次收購將幫助我們贏得更多中階市場和企業客戶，因為用於發現和依賴關係映射的高階 ITAM 功能正在成為大客戶 IT 採購決策的關鍵部分。透過此次收購，我們打算在為 IT 客戶提供 Freshservice 時所取得的高端市場動能和成功的基礎上再接再厲。

Turning to expansion. In Q1, net dollar retention was 106%, and customers using more than one product was 26%. We saw notable expansion and multiproduct activity from Freshservice for business teams.

轉向擴張。第一季度，淨美元保留率為 106%，使用多種產品的客戶為 26%。我們看到 Freshservice 為業務團隊提供了顯著的擴張和多產品活動。

We're also executing on the cross-sell of our 2 largest product areas in IT and customer service. An example of cross-sell is Dark Matter Technologies. Dark Matter employs more than 1,000 people and make software that enables retail banks, credit unions and credit vendors to simplify lending. Already a Freshservice customer for ITSM, they chose Customer Service Suite to replace their incumbent solution because it was easy to go live within their tight time frames and simple to configure.

我們也對 IT 和客戶服務這兩個最大的產品領域進行交叉銷售。交叉銷售的一個例子是暗物質技術公司。 Dark Matter 擁有 1,000 多名員工，開發的軟體使零售銀行、信用合作社和信貸供應商能夠簡化貸款。他們已經是 ITSM 的 Freshservice 客戶，他們選擇客戶服務套件來取代他們現有的解決方案，因為解決方案很容易在緊張的時間範圍內上線，並且配置簡單。

We remain bullish on the AI opportunity. We believe this will be a tailwind to our business, and this is a big part of our future growth strategy. As G said, we saw promising signs of momentum from Freddy Self Service and Freddy Copilot in Q1, with over 30% improvement in productivity metrics for our customers. This has led to early signs of monetization since the Freddy Copilot add-on became GA this past quarter.

我們仍然看好人工智慧的機會。我們相信這將成為我們業務的順風車，也是我們未來成長策略的重要組成部分。正如 G 所說，我們在第一季看到了 Freddy Self Service 和 Freddy Copilot 的良好勢頭，客戶的生產力指標提高了 30% 以上。自從 Freddy Copilot 外掛程式在上個季度正式發布以來，這已經帶來了貨幣化的早期跡象。

From a market demand perspective, we continue to see the impact of a challenging macroeconomic environment. While Q4 saw an uptick in expansion activity, we saw pressure on overall expansion rates for Q1 across our customer base in terms of agent growth.

從市場需求角度來看，我們持續看到充滿挑戰的宏觀經濟環境的影響。雖然第四季的擴張活動有所增加，但我們看到第一季整個客戶群的整體擴張率在代理商成長方面面臨壓力。

For the SMB part of the market, where we attract customers through an inbound digital motion, there is still work to be done to improve this motion. We're seeing lower expansion rates and a lower number of net new customer adds as the macro economy is having a meaningful impact on this part of our customer base. This led to slower growth for the CS business as the majority of the business is from SMB.

對於市場中的中小型企業部分，我們透過入站數位動作吸引客戶，但仍有工作要做來改善這種動作。由於宏觀經濟對我們這部分客戶群產生了重大影響，我們看到擴張率下降，淨新客戶數量減少。這導致 CS 業務成長放緩，因為大部分業務來自中小企業。

Given this current market environment, it's important for us to maintain a balanced approach to our investments. In Q1, we were able to create further efficiencies while investing in the business to drive future growth.

鑑於當前的市場環境，我們保持平衡的投資方式非常重要。在第一季度，我們能夠在投資業務以推動未來成長的同時進一步提高效率。

I'll turn it over to Tyler to talk about this in more detail.

我將把它交給泰勒來更詳細地討論這個問題。

Thanks, Dennis, and congratulations, and thanks to all of you joining on the call and via webcast.

謝謝丹尼斯，恭喜你，也謝謝大家參加電話會議和透過網路廣播。

I'm pleased with our ability to deliver another quarter of durable growth while improving our profitability. All the operational improvements that we implemented last year has created positive business momentum that carried into this year to drive further efficiencies and strong margin expansion in Q1.

我對我們能夠在提高盈利能力的同時實現又一個季度的持續增長感到滿意。我們去年實施的所有營運改善創造了積極的業務勢頭，這一勢頭延續到今年，進一步推動第一季的效率和利潤率的強勁擴張。

For our call today, I'll cover the Q1 2024 financial results, provide background on the key metrics and close with our forward-looking commentary and expectations for Q2 and the full year 2024. I'll include constant currency comparisons for certain metrics to provide a better view of our business trends.

在今天的電話會議中，我將介紹2024 年第一季的財務業績，提供關鍵指標的背景，並以我們對第二季度和2024 年全年的前瞻性評論和預期作為結尾。一些指標的持續貨幣比較更了解我們的業務趨勢。

As a reminder, most of our discussion will be focused on non-GAAP financial results, which exclude the impact of stock-based compensation expenses and other adjustments.

提醒一下，我們的大部分討論將集中在非公認會計準則財務表現上，其中不包括基於股票的薪酬費用和其他調整的影響。

Starting with the income statement. Total revenue in Q1 grew 20% to $165.1 million on a reported basis and 19% adjusted for constant currency. Professional services contributed approximately $2.6 million to total revenue, which is a lower contribution percentage than prior quarters. This is intentional as we are shifting more services revenue to our partner network.

從損益表開始。根據報告，第一季總營收成長 20% 至 1.651 億美元，按固定匯率調整後成長 19%。專業服務為總收入貢獻了約 260 萬美元，貢獻百分比低於前幾季。這是有意為之，因為我們正在將更多服務收入轉移到我們的合作夥伴網路。

We continue to see momentum in our IT business, specifically for new deals for mid-market and enterprise customers. We're also seeing upmarket traction from the CS business as our largest expansion deals in Q1 were from our customer service products.

我們繼續看到 IT 業務的成長勢頭，特別是針對中端市場和企業客戶的新交易。我們也看到客戶服務業務對高端市場的吸引力，因為我們第一季最大的擴張交易來自我們的客戶服務產品。

Moving to margins. Non-GAAP gross margin increased to 85% as we continue to drive efficiencies in our infrastructure spend as we scale the business. Compared to the prior year, this represents an improvement of more than 200 basis points. We also improved our non-GAAP operating margin to 13% as non-GAAP operating income came in at $21.8 million, which includes a onetime benefit of $3.7 million related to employee benefits expenses.

轉向邊緣。隨著業務規模的擴大，我們繼續提高基礎設施支出的效率，非 GAAP 毛利率增加至 85%。與去年相比，這一數字提高了 200 多個基點。我們還將非 GAAP 營業利潤率提高至 13%，非 GAAP 營業收入為 2,180 萬美元，其中包括與員工福利費用相關的 370 萬美元一次性福利。

Adjusting for this onetime benefit, non-GAAP operating margin would be 11% and still ahead of our prior expectations as we made ongoing operational improvements and shifted some marketing and legal spend into future quarters.

調整此一次性收益後，非 GAAP 營業利潤率為 11%，仍然高於我們先前的預期，因為我們不斷進行營運改善並將部分行銷和法律支出轉移到未來幾季。

As we've talked about previously, our financial model was built for us to make investments in our many growth initiatives. At the same time, we have flexibility in the model to adjust our spend as we see demand change throughout the year to prudently manage our expense base and drive efficiencies.

正如我們之前談到的，我們的財務模型是為我們的許多成長計畫進行投資而建構的。同時，我們可以靈活地調整我們的支出模式，因為我們看到全年的需求變化，以審慎管理我們的支出基礎並提高效率。

Moving to operating metrics. Our 2 key business metrics are net dollar retention and customers contributing more than $5,000 in ARR. Net dollar retention came in line with our expectations at 106% in the quarter, both as reported and on a constant currency basis. While our customers continue to grow their spend for our products in Q1, we did not see the same elevated levels of large expansion deals that we saw at the end of last year. Overall churn modestly increased and continues to remain squarely in the mid-teens.

轉向營運指標。我們的 2 個關鍵業務指標是淨美元保留率和客戶貢獻的 ARR 超過 5,000 美元。無論是以報告或以固定匯率計算，本季美元淨保留率均達到 106%，符合我們的預期。雖然我們的客戶在第一季繼續增加對我們產品的支出，但我們沒有看到去年年底看到的大型擴張交易水準的提高。整體流失率略有增加，並持續維持在十幾歲左右。

Looking forward, we're planning for a Q2 net dollar retention range of approximately 105% to 106%. For our other key business metric of number of customers contributing more than $5,000 in ARR, this metric grew 11% year-over-year to 20,549 customers in the quarter and now represents 89% of our ARR. On a constant currency basis, this customer metric grew 12% year-over-year.

展望未來，我們計劃第二季的淨美元保留範圍約為 105% 至 106%。對於我們的其他關鍵業務指標（ARR 貢獻超過 5,000 美元的客戶數量），該指標在本季度同比增長 11%，達到 20,549 名客戶，目前占我們 ARR 的 89%。以固定匯率計算，此客戶指標較去年同期成長 12%。

For our larger customer cohort contributing more than $50,000 in ARR, this cohort grew 29% year-over-year to 2,593 customers and now represents 49% of our ARR. The constant currency growth rate for this quarter was also 29%.

對於貢獻了超過 50,000 美元 ARR 的較大客戶群體，該群體同比增長 29%，達到 2,593 名客戶，目前占我們 ARR 的 49%。本季的恆定貨幣成長率也是 29%。

For total customers, we added approximately 400 net customers and ended the quarter with over 67,500 customers. The lower net adds over the past 2 quarters has largely been a result of a lower number of our new CS customers, especially in the SMB. For the past few quarters, we have been focusing our efforts and go-to-market spend to target higher-yielding customers, which is resulting in ongoing increases for ARPA.

就客戶總數而言，我們增加了約 400 名淨客戶，本季末客戶數量超過 67,500 名。過去兩季淨新增客戶數量減少主要是因為我們的新客戶服務客戶數量減少，尤其是中小型企業客戶數量減少。在過去的幾個季度中，我們一直將努力和上市支出集中在收益較高的客戶上，這導致 ARPA 持續成長。

Now let's turn to calculated billings, balance sheet and cash items. Our normalized calculated billings growth was 17% in Q1, down 1 percentage point from the 18% normalized growth rate in Q4. As we've talked about before, billings growth rates can fluctuate quarter-to-quarter due to a number of factors. In Q1, we had a negative impact primarily from lower early renewal activity compared to the prior quarter resulting in as-reported calculated billings growth rate of 14% or $174.7 million.

現在讓我們來看看計算的帳單、資產負債表和現金項目。我們第一季標準化計算的帳單成長率為 17%，比第四季 18% 的標準化成長率下降了 1 個百分點。正如我們之前討論過的，由於多種因素，帳單成長率可能會出現季度波動。在第一季度，我們受到的負面影響主要是由於與上一季相比提前續訂活動減少，導致按報告計算的帳單增長率為 14% 或 1.747 億美元。

Looking forward to Q2 2024, our initial estimate for calculated billings growth is 12%. For the full year 2024, we expect calculated billings growth to be approximately 16% or approximately 1 percentage point below our annual revenue growth.

展望 2024 年第二季度，我們對計算出的帳單成長的初步估計為 12%。對於 2024 年全年，我們預計計算出的帳單成長約為 16%，即比我們的年收入成長低約 1 個百分點。

Moving to our cash items. We meaningfully outperformed our free cash flow estimates coming in at $38.7 million for Q1. This was a result of strong collections activities and an ongoing focus to drive efficiencies on our spend around head count and vendor costs. Given our strong cash flow performance in the quarter, we are increasing our full year 2024 estimates to $125 million, with approximately $28 million in Q2.

轉向我們的現金項目。第一季自由現金流為 3,870 萬美元，明顯超出了我們的預期。這是強而有力的催收活動以及持續關注提高我們在人員數量和供應商成本方面的支出效率的結果。鑑於我們本季強勁的現金流表現，我們將 2024 年全年預期提高至 1.25 億美元，其中第二季約為 2,800 萬美元。

We ended Q1 maintaining a similar balance with prior quarters for cash, cash equivalents and marketable securities with $1.2 billion. We continue to manage and offset some share count dilution by net settling invested equity amounts and using $23 million during the quarter. As a reminder, this activity is reflected in our financing activities and is excluded from free cash flow.

第一季末，我們的現金、現金等價物和有價證券保持了與前幾季相似的餘額，為 12 億美元。我們繼續透過淨結算投資股權金額並在本季度使用 2,300 萬美元來管理和抵消一些股份數量稀釋。提醒一下，這項活動反映在我們的融資活動中，不包括在自由現金流中。

We plan to continue net settling vested equity amounts going forward, resulting in Q2 cash usage of approximately $15 million at current stock price levels. For the year, we expect to use approximately $70 million to net settle vested equity amounts.

我們計劃繼續淨結算既得權益金額，從而以當前股價水準計算，第二季現金使用量約為 1,500 萬美元。今年，我們預計將使用約 7,000 萬美元來淨結算既得股權金額。

Turning to our share count for Q1. We had approximately 322 million shares outstanding on a fully diluted basis as of March 31, 2024, representing a share reduction compared to the prior year and quarter. The fully diluted calculation consists of approximately 299 million shares outstanding, $21 million related to unvested RSUs and PRSUs and 2 million shares related to outstanding options.

轉向我們第一季的股票數量。截至 2024 年 3 月 31 日，我們在完全稀釋的基礎上擁有約 3.22 億股流通股，與前一年和上一季相比有所減少。完全稀釋計算包括約 2.99 億股已發行股票、2,100 萬美元與未歸屬 RSU 和 PRSU 相關的股票以及 200 萬股與已發行選擇權相關的股票。

Let me now provide our forward-looking estimates. I'll go through the numbers first and then provide background commentary afterwards. For the second quarter of 2024, we expect revenue to be in the range of $168 million to $170 million, growing 16% to 17% year-over-year; non-GAAP income from operations to be in the range of $6.5 million to $8.5 million; and non-GAAP net income from per share to be in the range of $0.05 to $0.06, assuming weighted average shares outstanding of approximately 305.6 million shares.

現在讓我提供我們的前瞻性估計。我將首先瀏覽這些數字，然後提供背景評論。 2024年第二季度，我們預計營收將在1.68億至1.7億美元之間，年增16%至17%；非公認會計原則營運收入在 650 萬美元至 850 萬美元之間；假設加權平均已發行股數約為 3.056 億股，非 GAAP 每股淨利將在 0.05 美元至 0.06 美元之間。

For the full year 2024, we expect revenue to be in the range of $695 million to $705 million, growing 17% to 18% year-over-year; non-GAAP income from operations to be in the range of $58 million to $64 million; and non-GAAP net income per share to be in the range of $0.32 to $0.35, assuming weighted average shares outstanding of approximately 307.6 million. Our forward-looking estimates are based on FX rates as of April 26, 2024. So any future currency moves are not factored in.

2024 年全年，我們預計營收將在 6.95 億美元至 7.05 億美元之間，年增 17% 至 18%；非公認會計原則營運收入將在 5,800 萬美元至 6,400 萬美元之間；假設加權平均流通股約為 3.076 億股，非 GAAP 每股淨利潤將在 0.32 美元至 0.35 美元之間。我們的前瞻性預測是基於截至 2024 年 4 月 26 日的匯率。

We want to provide our best view of the business today in a changing market environment. So here are a few items to call out. First, on the Device42 acquisition, our forward-looking estimates do not include numbers from the Device42 acquisition. We'll cover details of the financial impact from the acquisition after closing. That said, we expect the transaction to be accretive to our revenue growth for this year and have minimal impact to our free cash flow estimates.

我們希望在不斷變化的市場環境中提供對當今業務的最佳看法。因此，這裡有一些需要注意的事項。首先，關於 Device42 收購，我們的前瞻性預測不包括 Device42 收購的數據。我們將詳細介紹收購完成後的財務影響。也就是說，我們預計該交易將促進我們今年的收入成長，並且對我們的自由現金流預測影響最小。

Second, our full year 2024 revenue estimates, compared to our prior estimate, the current estimates include negative adjustments of approximately $2 million related to FX moves since last quarter and negative $1.3 million related to the intentional shifting of professional services revenue to partners.

其次，我們對2024 年全年收入的預測，與我們先前的預測相比，目前的預測包括與上季度以來的外匯變動相關的約200 萬美元的負調整，以及與故意將專業服務收入轉移給合作夥伴相關的130 萬美元的負調整。

Third, our Q2 operating income. As a reminder, we have seasonality in our business as Q2 expenses normally step up as the annual merit increases take effect, leading to lower margins quarter-over-quarter.

第三，我們第二季的營業收入。提醒一下，我們的業務存在季節性，因為隨著年度績效成長的生效，第二季的支出通常會增加，導致利潤率逐季度下降。

Let me close by saying we're very focused on growing the business while creating a durable profitable company to deliver long-term value for our stakeholders. We're innovating on our products, especially in the area of AI. We're building business momentum and gaining traction with larger customers, and we're driving efficiencies in the business that's reflected in our financial results. We're excited about the many opportunities ahead.

最後我要說的是，我們非常專注於發展業務，同時創建一家持久盈利的公司，為我們的利害關係人提供長期價值。我們正在產品創新，特別是在人工智慧領域。我們正在建立業務動力並贏得更大客戶的關注，我們正在提高業務效率，這反映在我們的財務表現中。我們對未來的許多機會感到興奮。

And with that, let's take your questions. Operator?

接下來，讓我們回答您的問題。操作員？

(Operator Instructions) Our first question comes from the line of Scott Berg with Needham & Company.

（操作員說明）我們的第一個問題來自尼達姆公司的 Scott Berg。

Dennis, congrats on the move to the CEO role, and G, I still hope we get a chance to speak with you going forward here.

丹尼斯，恭喜您擔任首席執行官，G，我仍然希望我們有機會在這裡與您交談。

I guess a couple of things for me. I believe it was Dennis who called out the kind of softness in the CS market, especially downstream in the SMB segment. There's a pretty popular narrative out there on the impact that whether it's customers of yours or others in the space or trying to use different AI tools to automate some of the labor out of some of these customer service environments. Are you seeing that impact your business at all in the quarter? And is there anything related to the slight reduction in full year revenues maybe because of any changes there in terms of how your customers are using the technologies?

我想對我來說有幾件事。我相信丹尼斯指出了 CS 市場的疲軟，尤其是下游的中小企業市場。關於影響，有一種非常流行的說法，無論是您的客戶還是該領域的其他人，還是嘗試使用不同的人工智慧工具來自動化某些客戶服務環境中的部分勞動力。您認為這對您本季的業務有影響嗎？全年收入略有下降是否與客戶使用科技的方式改變有關？

Thanks, Scott. It's Dennis here. So we see Q1 on SMB really more as a continuation of some of the trends that we called out in Q4, where throughout last year, we had seen SMBs under pressure from the macro environment for sure, rising interest rates that are limiting their ability to expand their business and that directly impacts their investment and customer support. So that trend continue -- you saw that trend in terms of our net adds, which have come down quite a bit over the last year or so. And that's been offset by strength in IT and by strength in larger customers. You see that on the continued growth of the $50,000 and up cohort.

謝謝，斯科特。我是丹尼斯。因此，我們認為中小企業的第一季實際上更多是我們在第四季度指出的一些趨勢的延續，去年全年，我們看到中小企業肯定受到宏觀環境的壓力，利率上升限制了他們的能力擴大他們的業務，這直接影響他們的投資和客戶支援。因此，這種趨勢仍在繼續——您可以從我們的淨增加量方面看到這種趨勢，在過去一年左右的時間裡，淨增加量已經下降了很多。這被 IT 領域的實力和大客戶的實力所抵銷。你可以從 50,000 美元及以上人群的持續增長中看到這一點。

So do we expect AI to have an impact over time? Yes. At the same time, the adoption of our AI solutions has been quite strong. We put Freddy Copilot into GA about midway through the quarter. And although it's really early, we saw good adoption among that SMB segment as well as among larger customers. So I think it's a bit early to say that the cause of SMB weakness was AI. That trend persisted prior to this quarter, but we certainly saw it this quarter.

那麼，隨著時間的推移，我們預期人工智慧會產生影響嗎？是的。同時，我們的人工智慧解決方案的採用率相當高。我們在本季中期將 Freddy Copilot 放入 GA 。儘管現在還為時過早，但我們看到中小型企業細分市場以及大型客戶的採用情況良好。因此，我認為現在說人工智慧是中小企業弱點的原因還為時過早。這種趨勢在本季度之前一直存在，但我們在本季度確實看到了這種趨勢。

Understood. Helpful. And then, G, you're moving into the Executive Chairman role. Like some are going to see this as kind of a surprise and a little bit sudden given the way the announcement was worded, at least, without a kind of formal transition. And I realize you're not going anywhere. But why is the time right today to make this change versus the beginning of the fiscal year 3, 4 months ago or maybe later on this year?

明白了。有幫助。然後，G，您將擔任執行主席。考慮到該公告的措辭方式，有些人會認為這有點意外，而且有點突然，至少在沒有正式過渡的情況下。我知道你哪裡也去不了。但為什麼今天是做出這項改變的最佳時機，而不是 3、4 個月前或今年稍後的財年開始？

Thanks, Scott. So I think first thing is this is not -- this was something planned as part of my succession even when we hired Dennis 18 months ago. Like our expectation was that he would eventually be my successor. And so we have been working in a similar fashion where Dennis was helping Freshworks get the operational rigor, put in place a world-class team and focus on go-to-market excellence, while I was actually focusing on all the AI stuff that you are seeing right now with Freddy and the product strategy.

謝謝，斯科特。所以我認為首先，這不是——即使 18 個月前我們僱用丹尼斯時，這也是我繼任計劃的一部分。就像我們期望他最終會成為我的繼任者一樣。因此，我們一直在以類似的方式工作，丹尼斯幫助 Freshworks 實現嚴格的運營，組建世界一流的團隊並專注於卓越的上市，而我實際上專注於您所關心的所有人工智慧內容。和產品策略。

I think the short answer is playing to our strengths. I think I've always been a believer in playing to strength. And we feel that what's right for Freshworks is for me to focus on long-term product strategy and AI. And Dennis is a fantastic operator coming with world-class experience, looking at his experience at Dropbox where he scaled the company from $200 million to north of $1 billion in like 4 years or so. And so he brings the right expertise. So this was the plan, and I feel comfortable that this is the right time to do it.

我認為簡短的答案是發揮我們的優勢。我想我一直堅信要發揮力量。我們認為，對 Freshworks 來說，正確的做法是專注於長期產品策略和人工智慧。丹尼斯是一位出色的運營商，擁有世界一流的經驗，看看他在 Dropbox 的經歷，他在大約 4 年左右的時間裡將公司規模從 2 億美元擴大到 10 億美元以上。因此他帶來了正確的專業知識。這就是計劃，我覺得現在是執行此計劃的正確時機。

Yes. Just Scott, just a little more on that. I think first of all, the hardest thing in business and in technology is to build a company out of nothing and scale it to a point where you have line of sight to $1 billion in revenue, you're serving tens of thousands of customers around the world, and G did that. And the advantage, we really have been operating in many respects in a way where G has been focused very much on technology, very much on the AI initiatives and what's coming. And I've been focused on the near term and what we need to do to scale the business.

是的。史考特，再講一點。我認為首先，商業和技術中最困難的事情是從無到有建立一家公司，並將其規模擴大到收入達到 10 億美元的程度，為周圍數以萬計的客戶提供服務世界，G做到了。優勢在於，我們確實在許多方面都以 G 非常關注技術、非常關注人工智慧計劃和即將發生的事情的方式進行運作。我一直專注於近期以及我們需要做什麼來擴大業務。

So to some degree, we've been operating in a way that's consistent with where we're headed for some time. Obviously, this formalizes it in a meaningful way. But I think internally, it wouldn't be viewed as a sudden change necessarily. And we're excited about taking it forward from here.

因此，在某種程度上，我們的運作方式與我們一段時間以來的發展方向是一致的。顯然，這以一種有意義的方式將其形式化。但我認為在內部，這不一定被視為突然的變化。我們很高興能從這裡繼續推進它。

Our next question comes from the line of Pinjalim Bora with JPMorgan.

我們的下一個問題來自 Pinjalim Bora 與摩根大通的對話。

One question on the performance on the low end of the market. Is it possible to delineate between how much of the underperformance there is because of the worsening macro environment versus some of the changes in the go-to-market side that you put into place earlier in the year? And did I hear it correctly? Is it mainly on the CX side versus ITSM?

關於低端市場表現的一個問題。是否可以區分有多少業績不佳是由於宏觀環境惡化而導致的，與您今年早些時候實施的上市方面的一些變化有關？我沒聽錯嗎？主要是在 CX 還是 ITSM 方面？

Yes. Thank you, this is Dennis, for the question there. So the changes that we've made on go-to-market over the last year were primarily, not exclusively, but primarily in the field. So that didn't really affect the SMB performance. We called this out before where our -- we have an effort underway to try to drive increased conversion of leads in SMB by taking a different approach to how we service those leads and sell those leads. We've made strides there, and we expect that, that will bear fruit over time, but that is also fighting against a bit of a headwind that the macro is causing in that segment.

是的。謝謝你，我是丹尼斯，提出這個問題。因此，我們去年在上市方面所做的改變主要是（並非完全是），但主要是在現場。所以這並沒有真正影響 SMB 效能。我們之前就指出這一點，我們正在努力透過採取不同的方法來服務這些潛在客戶並銷售這些潛在客戶，從而嘗試提高中小企業的潛在客戶轉換率。我們已經在這方面取得了長足的進步，我們預計，隨著時間的推移，這將取得成果，但這也在與宏觀因素在該領域造成的一些逆風作鬥爭。

So it's a little hard to distinguish what is macro and what is not. But certainly, when we talk to customers, we do hear that they are under pressure, and that is resulting in prolonged decisions and, in some cases, no decision. I think with respect to whether it's CX or IT, SMB for us is primarily a CS business. And so the -- when we say SMB, that means primarily CS. That's where we're seeing that weakness, in SMB and CS.

所以要區分什麼是宏觀的、什麼不是宏觀的有點困難。但當然，當我們與客戶交談時，我們確實聽到他們面臨壓力，這導致了長期的決策，在某些情況下甚至沒有決策。我認為無論是CX還是IT，SMB對我們來說主要是CS業務。因此，當我們說 SMB 時，主要指的是 CS。這就是我們在中小企業和電腦科學領域看到的弱點。

Yes. Understood. One high-level question, so a little bit long-winded. But if I think about the bot-based products in the market today that might handle, say, L1 queries and the copilot kind of products which sits beside an agent, how important is that context switch between these 2 layers for kind of the success of the efficacy of the AI? Trying to understand if a company uses L1 from one vendor and L2 for another vendor, does that actually increases the work for the company to create the plumbing between the 2 layers and maybe has an effect on the overall efficacy or success rates?

是的。明白了。這是一個高層次的問題，有點囉嗦。但是，如果我考慮一下當今市場上基於機器人的產品（例如，可以處理 L1 查詢）和位於代理旁邊的副駕駛類型的產品，那麼這兩層之間的上下文切換對於成功實現AI的功效？試圖了解一家公司是否使用一個供應商的 L1 和另一個供應商的 L2，這實際上是否會增加公司在兩層之間創建管道的工作量，並且可能會影響整體功效或成功率？

Yes. I'll take that, Pinjalim, this is G. So first of all, when you look at it from a customer experience standpoint, we all know that customers hate to repeat themselves when they call the call center and they are passed around, right? So it's the same customer experience at the core here. So when the customer is actually being helped by a bot and let's say, for some reason, the bots are not able to help handing off the customer gracefully to an agent who has full context is really important. And that is something where at Freshworks with our new Customer Service Suite, we have a complete omnichannel product that combines bots with human experience and ticketing for longer-standing use cases.

是的。我接受這個，Pinjalim，這是 G。 所以首先，當你從客戶體驗的角度來看時，我們都知道，當客戶致電呼叫中心並且他們被傳遞時，他們討厭重複自己的話，對吧？因此，這裡的核心是相同的客戶體驗。因此，當客戶實際上得到機器人的幫助時，假設由於某種原因，機器人無法幫助將客戶優雅地交給具有完整上下文的代理，這一點非常重要。這就是 Freshworks 的新客戶服務套件，我們擁有完整的全通路產品，將機器人與人類經驗和長期用例的票務相結合。

So if a company is using a different technology for bots and a different technology for human agents, they can still integrate and transfer that context, but they would have to do that extra work. But it's always important for the human agent to actually have the context of what transpired before the customer came in contact.

因此，如果一家公司對機器人使用不同的技術，對人類代理商使用不同的技術，他們仍然可以整合和傳輸該上下文，但他們必須做額外的工作。但對於人工代理商來說，真正了解客戶聯繫之前所發生的情況始終很重要。

Our next question comes from the line of Alex Zukin with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Alex Zukin。

This is Ethan Bruck on for Alex Zukin. I just want to ask -- I appreciate the color on the CS side. I'm just curious, did the ITSM outperform or also unperforming, I guess, your internal expectations? And I appreciate the color on the moving pieces on the updated 2024 guidance. Just curious if you can describe -- if you feel it's now derisked and maybe any other puts and takes on how to think about it.

我是伊森布魯克 (Ethan Bruck) 替補亞歷克斯祖金 (Alex Zukin)。我只是想問——我欣賞CS 一側的顏色。我只是好奇，ITSM 的表現是優於還是低於您的內在預期？我很欣賞更新後的 2024 年指南中移動部分的顏色。只是好奇你是否能描述一下——如果你覺得它現在已經消除了風險，也許還有其他的看跌期權和承擔如何思考它。

I'll take the guidance part and then I can hand it to Dennis for the ITSM piece. But I think you're asking a further clarification. What we did call out is like guidance for the year, obviously, it's based on what we see today and how we expect to perform. Nothing from the Device42 acquisition is in there.

我將承擔指導部分，然後將其交給 Dennis 來完成 ITSM 部分。但我認為你要求進一步澄清。我們所做的呼籲就像是今年的指導，顯然，它是基於我們今天所看到的以及我們期望的表現。其中沒有任何來自 Device42 收購的內容。

But there is about, just on the $3.5 million impacted for the year, $2 million on FX and almost $1.5 million on professional services. Professional services we commented on. This is a very prescriptive shift to partners, and we're actually pretty excited about that. It's just that we had expectation of services revenue. A lot of that we were taking the paper and they're giving it the partners. And so we saw both sides on the margin and on the top line revenue, which has actually come down because now we have partner stores having the capability to go deliver it themselves.

但在今年受影響的 350 萬美元中，約有 200 萬美元用於外匯，近 150 萬美元用於專業服務。我們評論過的專業服務。對於合作夥伴來說，這是一個非常規範的轉變，我們對此感到非常興奮。只是我們對服務收入有預期。其中很多是我們拿走論文，他們把它交給合作夥伴。因此，我們看到了雙方的利潤率和營收，這實際上已經下降，因為現在我們的合作夥伴商店有能力自己送貨。

I'll let Dennis answer the other piece.

我會讓丹尼斯回答另一件事。

Yes. So our ITSM business continues to perform very well, in particular, in the field and in larger customers. So the sweet spot for our ITSM business is a company from 500 to 20,000 employees. They have complex IT needs. They typically will have 100-plus agents in their IT department. They have tens of systems that our products need to integrate with, and they're looking for a scalable solution that serves all those needs across ITSM, ITOM, ITAM, and then for departments outside of IT ESM.

是的。因此，我們的 ITSM 業務繼續表現出色，特別是在現場和大客戶中。因此，我們 ITSM 業務的最佳選擇是擁有 500 至 20,000 名員工的公司。他們有複雜的 IT 需求。他們的 IT 部門通常有 100 多名代理商。他們有數十個我們的產品需要整合的系統，他們正在尋找一種可擴展的解決方案來滿足 ITSM、ITOM、ITAM 以及 IT ESM 之外的部門的所有需求。

And so we've carved out a great spot in that market as the most credible alternative to ServiceNow. We're cloud-first. We're at enterprise scale at this point. We have many customers that are supporting businesses of 10,000, 20,000 people based on our product.

因此，我們作為 ServiceNow 最可靠的替代方案，在該市場中佔據了重要地位。我們是雲端優先。目前我們已經達到企業規模。我們有許多客戶正在基於我們的產品支援 10,000、20,000 人的企業。

An example that was called out this quarter was Mahindra & Mahindra, which is a $16 billion company in India, industrial. That is -- was attracted to Freshservice for its copilot capabilities and the ability to apply AI in the IT department.

本季提到的一個例子是 Mahindra & Mahindra，這是一家價值 160 億美元的印度工業公司。也就是說，Freshservice 因其副駕駛能力以及在 IT 部門應用人工智慧的能力而被 Freshservice 所吸引。

So that IT business is doing actually quite well for us. We called this out at the Investor Day back in September, where the growth rates of that business are quite strong. At the time, we called out high 30s. And we continue to invest in that business. That's a reason that Device42 for us was quite attractive.

因此，IT 業務實際上對我們來說做得相當不錯。我們在 9 月的投資者日上就指出了這一點，當時該業務的成長率相當強勁。當時，我們喊出了30多歲的高分。我們將繼續投資該業務。這就是 Device42 對我們來說非常有吸引力的原因。

In talking to customers, we see more and more customers looking for advanced capability in asset management, and they're making purchase decisions around their ITSM alongside their decision about how they're going to manage the assets in the IT estate. So IT is really actually performing quite well for us overall, and we're leaning into that business for sure.

在與客戶交談時，我們看到越來越多的客戶尋求資產管理的高階功能，他們正在圍繞 ITSM 做出購買決策，同時決定如何管理 IT 資產中的資產。因此，IT 整體上對我們來說實際上表現得相當好，我們肯定會傾向於該業務。

Our next question will come from the line of Brent Thill with Jefferies.

我們的下一個問題將來自布倫特·希爾（Brent Thill）和杰弗里斯（Jefferies）的線路。

Dennis, congrats on your new role. I was just curious to your thoughts on the 1 or 2 things that you want to focus on in your new role. And just a quick follow-up. I know a number of vendors have been commenting in SMB concerns. But I think historically, there has been some separation between macro and internal execution. And I'm curious, do you feel the internal execution is where you'd like it to be? Or do you feel this is all macro and there's nothing you can really do right now?

丹尼斯，恭喜你擔任新角色。我只是很好奇你對你在新角色中想要關注的一兩件事的想法。只是快速跟進。我知道許多供應商已經就中小企業問題發表了評論。但我認為從歷史上看，宏觀執行和內部執行之間存在著一定的分離。我很好奇，你覺得內部執行是你想要的嗎？或者您覺得這都是宏觀的，您現在無能為力？

Yes. Thanks for the question. So I think on the first question, the area that I'm very much focused on is driving execution of the business that we have now. And that relates to your point around SMB. Can we do more? And do we need to do things differently in that space?

是的。謝謝你的提問。因此，我認為對於第一個問題，我非常關注的領域是推動我們現有業務的執行。這與您關於中小企業的觀點有關。我們可以做得更多嗎？我們是否需要在這個領域採取不同的做法？

Yes, we do. And we -- I've talked about this before at the Investor Day and then throughout Q4. We are in the process of modernizing our inbound motion, our digital-led motion. There's more we can do there to act in a way that our customers expect us to act.

是的，我們願意。我之前在投資者日以及整個第四季都討論過這個問題。我們正在對入站運動、數位主導的運動進行現代化改造。我們還可以做更多的事情，按照客戶期望的方式行事。

Right now, we have a process that's a bit too manual. We need to do things like apply AI to that process. We need to make it easier for the customers to see value in our products than they currently can. So that's the big focus is execution not just in SMB, but in the field as well.

目前，我們的流程有點過於手動。我們需要做一些事情，例如將人工智慧應用到這個過程中。我們需要讓客戶比現在更容易看到我們產品的價值。因此，重點不僅在於中小型企業的執行，還在於現場的執行。

A lot of the changes that we've made over the last year are to build a base to drive that execution, bringing in the people that can help us scale.

去年我們所做的許多改變都是為了建立一個推動執行的基礎，引進可以幫助我們擴大規模的人才。

And then the second area really is driving that -- continuing that move up into the mid-market and into the lower end of enterprise. And that requires different approaches to how you sell, how you support, how you service professional services, all of those things while bringing real innovation around AI into that space. So I think those are really a continuation of what G and I have been focused on over the course of the last year or so, but sharpening that up and making sure we drive that through.

第二個領域確實在推動這一趨勢——繼續向中端市場和企業低端市場發展。這需要採用不同的方法來銷售、支援、提供專業服務等等，同時將人工智慧的真正創新帶入該領域。因此，我認為這些實際上是 G 和我在過去一年左右的時間裡一直關注的事情的延續，但要加強這一點，並確保我們能夠推動這一點。

I think on the last question, well, I guess I answered it in some respects. Yes, I think macro absolutely is a part of it. And yes, we can absolutely do more there.

我想關於最後一個問題，我想我在某些方面回答了它。是的，我認為宏觀絕對是其中的一部分。是的，我們絕對可以在那裡做得更多。

And just a quick follow-up, Dennis. When you think about that modernization of a digital motion, I mean how long does that take to complete? Is that a 2024 event? Is it going to be complete in the front half? How do you think about the actual timing of it?

丹尼斯，請快速跟進。當您考慮數位運動的現代化時，我的意思是需要多長時間才能完成？那是 2024 年的活動嗎？前半部就完結了嗎？您如何看待實際的時間安排？

It's a '24 event. And the expectation is that we start seeing impact later this year.

這是 24 年的活動。預計我們將在今年稍後開始看到影響。

Our next question comes from the line of Rob Oliver with Baird.

我們的下一個問題來自 Rob Oliver 和 Baird 的對話。

Great. I'll add my congratulations, Dennis, to you, and G, to you as well. Dennis, my question is for you. And I know you commented that it's too early to say that generative AI is the reason for the agent weakness in Q1, but maybe harking back to Scott's question at the outset. You also said that you're seeing early signs of Freddy monetization. So I'd be curious to hear what sort of impact that is having within your accounts in terms of, I guess, seat and agent activity as well as this came up in conjunction with Klarna. Sort of the distinction between Level 1 and Level 2 deflections, I mean we would expect that line to shift. So curious to hear your view on that. And then I have a follow-up for Tyler.

偉大的。丹尼斯，我向你表示祝賀，也向你表示祝賀。丹尼斯，我的問題是問你的。我知道你評論說，現在說生成式人工智慧是智能體在第一季表現疲軟的原因還為時過早，但也許可以回到斯科特一開始的問題。您還說您看到了弗雷迪貨幣化的早期跡象。因此，我很想知道這對您的帳戶產生了什麼樣的影響，我猜是席位和代理活動，以及與 Klarna 一起提出的。關於 1 級和 2 級偏轉之間的區別，我的意思是我們預計該線會發生移動。很想聽聽你對此的看法。然後我有泰勒的後續行動。

Yes. So on AI, every sale or every renewal that we're involved with, AI is at the center. Every customer wants to talk to us about our AI capabilities, our AI road map, how that can help them. They want to see examples. And we have 2 paths to monetize today. We have Freddy Self Service, which is L1, and then we have the Copilot, which assists the agent. Different pricing models, one is consumption, one is price per seat. Both are getting tremendous interest and both are involved in sales in different ways.

是的。因此，在人工智慧方面，我們參與的每一次銷售或每一次更新，人工智慧都是核心。每個客戶都想與我們談論我們的人工智慧能力、我們的人工智慧路線圖，以及這如何幫助他們。他們想看到例子。今天我們有兩個獲利途徑。我們有 Freddy 自助服務，即 L1，然後我們有副駕駛，協助客服人員。不同的定價模式，一種是消費，一種是每座價格。兩者都引起了極大的興趣，並且都以不同的方式參與銷售。

In some cases, we're monetizing directly. People are paying us right up the bat. In other cases, we're using our AI capabilities as an inducement to close the deal. An example that really is Stitch Fix, which bought not just on the core in that case, customer support platform, but it was on the back of copilot and the AI road map.

在某些情況下，我們直接獲利。人們立即付錢給我們。在其他情況下，我們會利用人工智慧功能作為完成交易的誘因。 Stitch Fix 就是一個真正的例子，它不僅購買了核心（在這種情況下）客戶支援平台，還購買了副駕駛和人工智慧路線圖的背面。

And then in other cases, we're using AI as a -- and thinking of it really as an adoption play where we want to get a customer wall-to-wall using AI across all their agents, get them seeing value for it, give it to them for a period of time on a -- for free on a limited basis or a very low cost and then monetize down the road.

然後在其他情況下，我們將人工智慧用作 - 並將其視為一種採用遊戲，我們希望讓客戶在所有代理中使用人工智慧，讓他們看到它的價值，在一段時間內以有限的方式免費或以非常低的成本向他們提供，然後逐漸貨幣化。

So it's very early. Our copilot was -- went into GA just in the middle of Q1. But the interest is there, the usage is there when customers are up and running and the promise is there because the value is ultimately there for the customer.

所以現在還很早。我們的副駕駛在第一季中期進入了通用航空。但當客戶啟動並運行時，興趣就在那裡，使用就在那裡，承諾就在那裡，因為價值最終是為客戶而存在的。

Great. Very helpful. And then, Tyler, I was just wondering if you could give us a little bit more color just on the sort of billings expectations in linearity throughout the year. Obviously, a solid quarter this quarter, it's going to drop off fairly meaningfully. I just wanted to get your sense for kind of the linearity there and what gives you the confidence in the better billings outlook sort of later in the year.

偉大的。很有幫助。然後，泰勒，我只是想知道你是否可以給我們更多關於全年線性比林斯預期的資訊。顯然，本季表現穩定，但將會大幅下降。我只是想了解您對那裡的線性情況的感覺，以及是什麼讓您對今年晚些時候更好的比林斯前景充滿信心。

Sure. Yes, of course. We said normalized billings for Q1, 17%, 14% as reported, and we said 12% for Q2. That's an as-reported number. And our expectation is that would normalize up.

當然。是的當然。我們說第一季的正常化帳單為 17%，據報導為 14%，我們說第二季為 12%。這是一個報道的數字。我們的期望是這種情況將會正常化。

What happens is Q2 of last year, we actually had a pretty decent amount of pull-ins from Q3. We always have pull-ins like early renewals with expansion, and we kind of have an expectation about that, but it's a little bit unpredictable. And so right now, 12% un-normalized and we do expect a little bit of pull-in. But that one again, we'll have a much better view at the end of the quarter.

去年第二季發生的情況是，我們實際上從第三季開始就獲得了相當多的拉動。我們總是會遇到諸如提前續約和擴張之類的拉動，我們對此有所期望，但這有點難以預測。所以現在，12% 是未標準化的，我們確實預計會有一點拉動。但同樣，我們將在本季末看到更好的觀點。

For the year, 16%, yes, the numbers fall out and we can see the billing schedules going out. That's what we expect for the year in line with the guidance that we gave, which does assume there's going to be a little bit of acceleration, but we can already see some of that in the numbers.

今年，16%，是的，數字下降了，我們可以看到帳單時間表已經出來了。這是我們對今年的預期，與我們給出的指導一致，該指導確實假設會有一點加速，但我們已經可以在數字中看到其中的一些。

Our next question comes from the line of Ryan MacWilliams with Barclays.

我們的下一個問題來自巴克萊銀行的瑞安·麥克威廉斯 (Ryan MacWilliams)。

This is (inaudible) on for Ryan MacWilliams. Great to hear about the 30% improvement in productivity from your customers leveraging Freddy AI. But curious if there were any other key takeaways post the Freddy Copilot becoming GA, like how has the process been converting those beta customers, which I think totaled around 2,500 customers in 3Q to paying customers?

這是（聽不清楚）瑞安·麥克威廉斯的發言。很高興聽到您的客戶利用 Freddy AI 將生產力提高了 30%。但我很好奇 Freddy Copilot 成為 GA 後是否還有其他關鍵要點，例如該流程如何將這些測試版客戶（我認為第三季總共有約 2,500 名客戶）轉變為付費客戶？

Thanks for the question. It's Dennis. The -- what's been interesting to see is that the conversion and the interest is across all customer segments, both small and large. So we're seeing a surprising number of SMBs who are new to Freshworks coming in and signing up directly for AI from day one. So they'll try the product for a limited period of time, they'll see the value and they'll pay for it. And the pricing actually is holding up quite well.

謝謝你的提問。是丹尼斯。有趣的是，所有客戶群（無論大小）的轉換和興趣都得到了體現。因此，我們看到數量驚人的剛接觸 Freshworks 的中小型企業從第一天起就直接註冊了 AI。因此，他們會在有限的時間內試用產品，他們會看到其價值，並會為此付費。而且定價實際上保持得很好。

So the SMB side, I think, has been surprisingly strong. I think when you get into larger customers, different customers are at different points in their adoption phase. Some are leaning in and going all in from day 1. Others want to really understand the data implications, security implications, there's a long review process that takes a bit longer. But every single customer wants to talk about it, which I think is the exciting part, and that gives us a lot to talk about at renewal with existing customers. And certainly, every new prospect that we talk to, AI is at the centerpiece of the pitch.

因此，我認為中小企業方面的實力出乎意料地強大。我認為當你接觸到更大的客戶時，不同的客戶在採用階段處於不同的階段。有些人從第一天開始就全力以赴。但每個客戶都想談論它，我認為這是令人興奮的部分，這讓我們在與現有客戶續約時有很多話題可以討論。當然，在我們交談的每一個新的潛在客戶中，人工智慧都是討論的核心。

Right. Understood. And how does the trajectory for rent retention look like here? Anything to call out from upsells, churn or seat that's worth noting, maybe what's implied for the 105%, 106% guide for 2Q?

正確的。明白了。租金保留的軌跡如何？追加銷售、客戶流失或席位方面有什麼值得注意的地方，也許第二季 105%、106% 的指導意味著什麼？

Nothing is implied there. I think what we're seeing there is very similar to what we saw in Q1, so kind of what said, 106%. It came in at 106%. Churn, we said ticked up slightly but not materially enough to round to anything. And we've already done a really, really good job at bringing down kind of our gross churn over the past couple of years.

那裡沒有暗示什麼。我認為我們看到的情況與我們在第一季看到的情況非常相似，所以說，106%。其得分為 106%。我們說客戶流失率略有上升，但不足以四捨五入到任何數字。過去幾年，我們在降低總客戶流失率方面已經做得非常非常好。

The expansion motion, as we've talked about in the past, we're very, very focused on how we're expanding with our customers outside of agent addition. Agent addition is still the #1 expansion motion for us, and a lot of that is organic. But as we've talked about that, that rate has decreased over the last couple of years.

正如我們過去所討論的那樣，擴張動議非常非常關注如何在增加代理之外與客戶一起擴張。對我們來說，增加代理商仍然是第一大擴張計劃，其中許多都是有機的。但正如我們所討論的，該比率在過去幾年中有所下降。

What we are seeing is a good pickup of some of our newer products. And then Freddy Copilot, in particular, there is actually some good add-on business there. But nothing that is going to move the needle higher than the 105%, 106% for Q2. For the year, we expect it to be roughly the same, in that 106% range.

我們看到我們的一些新產品銷售良好。然後尤其是弗雷迪·副駕駛，那裡實際上有一些很好的附加業務。但沒有什麼比第二季的 105%、106% 更能推動這股趨勢了。今年，我們預計這一數字將大致相同，即 106% 的範圍內。

Our next question comes from the line of Dan Reagan with Canaccord Genuity.

我們的下一個問題來自 Dan Reagan 與 Canaccord Genuity 的對話。

This is Dan Reagan on for DJ. First, I just wanted to ask if you could elaborate on the expected synergies from the Device42 acquisition. So you've historically partnered with Device42 on large enterprise opportunities. So I'm just wondering how you're thinking about the go-to-market synergies from here beyond what you've been seeing. And then sort of how it positions Freshworks with your upmarket ambitions. Maybe any nice cross-sell opportunities with its 800 customer base? Any color there would be awesome.

我是 DJ 丹‧雷根 (Dan Reagan)。首先，我只是想問您是否可以詳細說明收購 Device42 所帶來的預期綜效。因此，您一直以來都與 Device42 就大型企業機會進行過合作。所以我只是想知道，除了您所看到的之外，您如何看待這裡的進入市場協同效應。然後是它如何定位 Freshworks 以滿足您的高端市場野心。也許有什麼好的交叉銷售機會與 800 位客戶群？任何顏色都會很棒。

Thanks for the question. So we see Device42 in a couple of ways. First of all, we've been partnering with them for the last 18 months. So we have a product integration that allows an ITSM customer to easily flip into the Device42 environment. We've been co-selling with them to large customers. We called out one of the customers last quarter was a large apparel retailer. Device42 was integral to that sale. I was in Europe earlier last week and one of our larger customers, we are now up-selling Device42 in. And so we know that the product works. We know that our customers, especially these larger customers, they want to buy ITSM alongside a sophisticated ITAM solution. And we've seen the product in action. So we feel like we've derisked product market fit. They have 800 customers worldwide, like most of those customers do not use Freshservice as their ITSM.

謝謝你的提問。所以我們可以透過多種方式來看待 Device42。首先，我們在過去 18 個月裡一直與他們合作。因此，我們有一個產品集成，可以讓 ITSM 客戶輕鬆切換到 Device42 環境。我們一直與他們共同向大客戶銷售。上個季度我們提到的一位顧客是一家大型服飾零售商。 Device42 是此次銷售的一部分。上週早些時候我在歐洲，我們的一個大客戶，我們現在正在追加銷售 Device42。我們知道我們的客戶，尤其是這些大客戶，他們希望在購買 ITSM 的同時購買複雜的 ITAM 解決方案。我們已經看到了該產品的實際應用。所以我們覺得我們已經消除了產品市場契合度的風險。他們在全球擁有 800 個客戶，其中大多數客戶並不使用 Freshservice 作為他們的 ITSM。

So we see synergies in a couple of different ways. As those ITSMs come up for renewal, we will know that they're up for renewal. We'll be able to get in front of those decision-makers and make a pitch and win some business there. And then amongst our thousands of customers, most of them don't use an advanced ITAM solution from Device42. So we will have a programmatic approach to selling advanced ITAM into our existing base.

因此，我們透過幾種不同的方式看到協同效應。當這些 ITSM 需要更新時，我們就知道它們需要更新。我們將能夠在這些決策者面前進行宣傳並贏得一些業務。然後，在我們的數千名客戶中，大多數都沒有使用 Device42 的高級 ITAM 解決方案。因此，我們將採用程序化方法將先進的 ITAM 銷售到我們現有的基地。

So I think those are 2 areas. And we definitely see a need for more advanced capability than we currently have among larger customers. So for us, it eases this move upmarket. It puts us in a better position vis-a-vis ServiceNow and Atlassian in particular, which have more in-depth ITAM solutions than we did natively, which is why we pursued the acquisition.

所以我認為這是兩個領域。我們確實看到大客戶需要比目前更先進的功能。所以對我們來說，它簡化了向高端市場的轉移。它使我們在與 ServiceNow 和 Atlassian 相比時處於更有利的地位，尤其是它們擁有比我們本身更深入的 ITAM 解決方案，這就是我們尋求收購的原因。

Excellent. Super helpful. And then just one follow-up. With the transition of Girish EC and Dennis assuming the CEO position, congrats there. You've already provided a bit of color on this, but could you dive a little bit deeper into any changes in strategic initiatives and operational focus? You've -- you're focused on the low end, improving SMB conversion that's been discussed. At the high end, you have momentum, but now a newer focus with opportunities around Device42. Any color there on initiatives and any changes would be awesome.

出色的。超有幫助。然後只有一個後續行動。隨著 Girish EC 的過渡和 Dennis 擔任執行長職位，恭喜您。您已經對此進行了一些闡述，但是您能否更深入地探討戰略計劃和營運重點方面的任何變化？您專注於低階、改進已討論過的 SMB 轉換。在高端市場，你有動力，但現在有了圍繞 Device42 的新的焦點。倡議上的任何顏色和任何變化都會很棒。

Yes. So no changes from what we said before. Really focused on that SMB opportunity in getting that business back to healthy growth. Focused on continuing to drive upmarket, which is primarily IT. Focused on the AI opportunity, which is across all of our products. Those are the things that are really driving our business now. And then lastly, just focused on continuing our expansion motion, expansion, cross-sell, upsell as we have more products. Now we have Device42, that's another product that we can cross-sell into our existing base.

是的。所以我們之前所說的沒有變化。真正專注於中小企業的機會，讓該業務恢復健康成長。專注於繼續推動高端市場，主要是 IT。專注於我們所有產品中的人工智慧機會。這些才是現在真正推動我們業務發展的因素。最後，隨著我們擁有更多產品，我們只專注於繼續我們的擴張行動、擴張、交叉銷售、追加銷售。現在我們有了 Device42，這是我們可以交叉銷售到現有基礎的另一種產品。

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

我們的下一個問題來自 Pat Walravens 與 Citizens JMP 的連結。

Great. Dennis, it's actually -- it's Pat Walravens. So I would love to go back to the agent replacement conversation. And let me share a quick anecdote with you and then I would love to hear how things might be different or similar for Freshworks. So I spoke to a large company and another vendor that has a couple of thousand agents. They're adding the AI option from this other vendor and they'll reduce the number of agents by a lot, maybe in half. And so I said, okay, great. So your contract value is going to go down, right? And the answer was, "Oh no, the total contract value is going up." This other vendor is already moving to consumption pricing and they baked that in. And we really don't mind that much because we're saving so much on the labor that the marginal increase in the software cost is just a much smaller amount than the labor savings. So does that dynamic work for Freshworks? Or is there something different?

偉大的。丹尼斯，實際上是帕特·沃爾拉文斯。所以我很想回到代理更換的話題。讓我與您分享一個簡短的軼事，然後我很想聽聽 Freshworks 的情況有何不同或相似。因此，我與一家大公司和另一家擁有數千名代理商的供應商進行了交談。他們正在添加來自其他供應商的人工智慧選項，他們將大大減少代理的數量，也許減少一半。所以我說，好吧，太好了。那麼你的合約價值將會下降，對嗎？答案是：“哦不，合約總價值正在上漲。”這家其他供應商已經轉向消費定價，他們已經考慮到了這一點。那麼這種動態對 Freshworks 有用嗎？或有什麼不同嗎？

Pat, this is Girish. So this is exactly the same dynamic, and we had already also explained it earlier. So see, we all know that customer service automation is something that businesses want and it's not today after gen AI, it's been something that businesses want right from the day they started putting in IVRs and call centers, right?

帕特，這是吉里什。所以這是完全相同的動態，我們之前也已經解釋過。所以看，我們都知道客戶服務自動化是企業想要的東西，這並不是在人工智慧時代之後的今天，從企業開始引入IVR 和呼叫中心的那一天起，這就是企業想要的東西，對嗎？

So this has been a journey for us. And of course, gen AI is accelerating that and our Freddy Self Service is also built to capture and leverage that. And as you clearly stated, for the customer, it's a win-win because by investing in technology, they are saving a lot more in terms of overall not having to hire so many people. And that translates into a better revenue realization potential for Freshworks also. That's exactly true.

所以這對我們來說是一段旅程。當然，gen AI 正在加速這一點，我們的 Freddy 自助服務也是為了捕捉和利用這一點而建構的。正如您明確指出的那樣，對於客戶來說，這是雙贏的，因為透過投資技術，他們可以節省更多，整體上不必僱用那麼多人。這也為 Freshworks 帶來了更好的收入實現潛力。確實如此。

And so are you able to increase the size of the contracts overall on the renewals?

那麼，你們能夠增加續約合約的整體規模嗎？

Yes.

是的。

Yes. So again, it's early days, but what you're describing is exactly what we're pursuing. And that's what you're talking about with respect to reduced agent count. Where that happens, we're basically replacing human costs with software costs. And so our customers are on that exact same wavelength. Not all of them are looking to reduce staff. But for those who are, there's absolutely a business case to be made for spending more on the software.

是的。再說一次，現在還為時過早，但你所描述的正是我們所追求的。這就是您所說的減少代理數量的問題。當這種情況發生時，我們基本上用軟體成本取代人力成本。所以我們的客戶也有同樣的想法。並非所有公司都在尋求裁員。但對於那些願意的人來說，在軟體上投入更多資金絕對是有商業理由的。

Remember, we have a consumption product. That's what Freddy Self Service is. You pay by session, which is basically the equivalent of a ticket. And they understand that language, they understand how to monetize the ticket or how -- what the ticket costs them, so they're willing to pay on a consumption basis for avoiding that human interaction.

請記住，我們有一種消費產品。這就是 Freddy 自助服務。您按時段付費，基本上相當於門票。他們理解這種語言，他們理解如何將門票貨幣化，或者如何——門票的成本是多少，所以他們願意在消費的基礎上付費，以避免這種人際互動。

Our next question comes from the line of Elizabeth Porter with Morgan Stanley.

我們的下一個問題來自伊麗莎白·波特與摩根士丹利的對話。

Great. I wanted to ask a bit more of a macro question. The macro headwinds deal hesitancy has been an impact really across software. So I wanted to get your view on how customer conversations are trending with customers as it relates to just how long deals can be pushed off. And how does that balance with this rush to invest in AI and not wanting to be left behind? Kind of any sort of view on kind of when that pendulum and shift back to customers being more willing to engage in deals would be super helpful for your view.

偉大的。我想問一些宏觀問題。宏觀逆風交易猶豫確實對整個軟體產生了影響。因此，我想了解您對客戶對話趨勢的看法，因為這關係到交易可以推遲多長時間。如何與人工智慧投資熱潮和不想落後之間取得平衡？關於何時鐘擺並轉向客戶更願意參與交易的任何觀點都會對您的觀點非常有幫助。

Well, as I said earlier, that we're seeing 2 different trends. In the larger account space, which for us is in that $500 and up cohort, we're seeing good momentum. We're seeing a lot of interest. We're seeing a lot of deals, and you're seeing that in our numbers overall. As our customer base continues to shift into larger relationships with us, higher ARPA, that tends to be on the IT side of the house, but not exclusively. Because some of the deals that we talked about this quarter like Stitch Fix are customer support deals.

嗯，正如我之前所說，我們看到了兩種不同的趨勢。在更大的帳戶空間中，對我們來說是 500 美元及以上的帳戶，我們看到了良好的動力。我們看到了很多興趣。我們看到了很多交易，您可以從我們的整體數據中看到這一點。隨著我們的客戶群不斷轉變為與我們建立更大的關係，更高的 ARPA，這往往是在公司的 IT 方面，但不僅限於此。因為我們本季討論的一些交易（例如 Stitch Fix）是客戶支援交易。

It's SMB, where, at least for us, we're seeing the kind of headwinds that you're talking about, the prolonged decision-making, the no decision, et cetera.

這是中小型企業，至少對我們來說，我們看到了你所說的那種逆風，長時間的決策，沒有決定，等等。

Got it. And then for the Device42 acquisition, kind of wondering if you could give us any sort of additional color on how the deal sizes might compare relative to your current ITSM deals? Any sort of revenue or growth that we could think about as it relates to the assets that you're willing to share?

知道了。然後，對於 Device42 的收購，您是否可以向我們提供任何額外的信息，說明交易規模與您當前的 ITSM 交易相比如何？我們可以考慮與您願意分享的資產相關的任何類型的收入或成長？

I'll take the back part of that. So as we mentioned, we've been a partner with Device42 for a while. We've actually been reselling their product, but it's really more on a limited basis. But we do know that it works with our customers and it's integrated.

我將採取後面的部分。正如我們所提到的，我們與 Device42 的合作夥伴已經有一段時間了。我們實際上一直在轉售他們的產品，但實際上是在有限的基礎上進行的。但我們確實知道它與我們的客戶合作並且是整合的。

We've got -- we said at our Investor Day, we've got over 8,600 Freshservice customers paying us greater than $5,000 a year, and Device42 has about 800 customers. And the 8,600, very few of them actually are using Device42. So we think there's going to be great synergies there, and that's the purpose of this deal.

我們在投資者日說過，我們有超過 8,600 名 Freshservice 客戶每年向我們支付超過 5,000 美元，而 Device42 擁有大約 800 名客戶。而這 8,600 人中，其實很少人使用 Device42。因此，我們認為這將產生巨大的協同效應，這就是這筆交易的目的。

We really think this is an investment in Freshservice, which that product has been doing really, really well and positioned really well. But we also know that this is, not having the capabilities of like Device42 has made us less competitive in the upper enterprise. And so our expectation is that this is going to fill that gap that we know that there's deals that we've lost because we haven't had that. And so our expectation is that this is going to be revenue accretive. We don't have the numbers yet to share. We'll do that after we close the deal. But we did say in the script that revenue accretive for the year, and also we think it's going to be cash flow neutral.

我們確實認為這是對 Freshservice 的投資，該產品一直做得非常非常好並且定位非常好。但我們也知道，這一點是，沒有像Device42這樣的能力，讓我們在上游企業的競爭力下降。因此，我們的期望是，這將填補我們知道有些交易因為我們沒有這樣做而失去的空白。因此，我們的期望是這將增加收入。我們還沒有可以分享的數字。我們將在交易完成後這樣做。但我們確實在劇本中說過，今年的收入會增加，而且我們認為現金流將是中性的。

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

謝謝。今天的會議到此結束。感謝您的參與。您現在可以斷開連線。