Fastly Inc (FSLY) 2023 Q1 法說會逐字稿

Good afternoon. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fastly First Quarter 2023 Earnings Conference Call. (Operator Instructions) Thank you. I would now like to turn the conference over to Vernon Essi, Investor Relations at Fastly. Please go ahead.

下午好。我叫 Julianne，今天我將擔任你們的會議運營商。在這個時候，我想歡迎大家參加 Fastly 2023 年第一季度收益電話會議。 （操作員說明）謝謝。我現在想把會議轉交給 Fastly 投資者關係部的 Vernon Essi。請繼續。

Thank you, and welcome, everyone, to our first quarter 2023 earnings conference call. We have Fastly's CEO, Todd Nightingale and CFO, Ron Kisling, with us today.

謝謝大家，歡迎大家參加我們 2023 年第一季度的收益電話會議。今天有 Fastly 的首席執行官 Todd Nightingale 和首席財務官 Ron Kisling 與我們一起。

Webcast of this call can be accessed through our website, fastly.com and will be archived for 1 year. Also, a replay will be available by dialing (800) 770-2030, referencing conference ID number 754-3239 shortly after the conclusion of today's call.

可通過我們的網站 fastly.com 訪問本次電話會議的網絡直播，並將存檔 1 年。此外，在今天的電話會議結束後不久，撥打 (800) 770-2030 即可獲得重播，參考會議 ID 號碼 754-3239。

A copy of today's earnings press release, related financial tables and investor supplement, all of which are furnished in our 8-K filing today, can be found in the Investor Relations portion of Fastly's website.

今天的收益新聞稿、相關財務表格和投資者補充的副本，所有這些都在我們今天的 8-K 文件中提供，可以在 Fastly 網站的投資者關係部分找到。

During this call, we will make forward-looking statements, including statements related to the expected performance of our business, future financial results, product sales, strategy, long-term growth and overall future prospects. These statements are subject to known and unknown risks, uncertainties and assumptions that could cause actual results to differ materially from those projected or implied during the call.

在此次電話會議中，我們將做出前瞻性陳述，包括與我們業務的預期業績、未來財務業績、產品銷售、戰略、長期增長和整體未來前景相關的陳述。這些陳述受已知和未知的風險、不確定性和假設的影響，這些風險、不確定性和假設可能導致實際結果與電話會議期間預測或暗示的結果大不相同。

Further information regarding risk factors for our business, please refer to our most recent Form 10-K and Form 10-Q filed with the SEC and our first quarter 2023 earnings release and supplement for a discussion of the factors that could cause our results to differ. Please refer, in particular, the sections entitled Risk Factors. We encourage you to read these documents.

有關我們業務風險因素的更多信息，請參閱我們最近向美國證券交易委員會提交的 10-K 表格和 10-Q 表格以及我們 2023 年第一季度的收益發布和補充文件，以討論可能導致我們結果不同的因素.請特別參閱標題為“風險因素”的部分。我們鼓勵您閱讀這些文檔。

Also, note that the forward-looking statements on this call are based on information available to us as of today's date. We undertake no obligation to update any forward-looking statements, except as required by law.

另請注意，本次電話會議的前瞻性陳述是基於截至今天我們可獲得的信息。除非法律要求，否則我們不承擔更新任何前瞻性陳述的義務。

Also during this call, we will discuss certain non-GAAP financial measures. Unless otherwise noted, all numbers we discuss today other than revenue will be on an adjusted non-GAAP basis. Reconciliations to the most directly comparable GAAP financial measures are provided in the earnings release and supplement on our Investor Relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results.

同樣在本次電話會議中，我們將討論某些非 GAAP 財務措施。除非另有說明，否則我們今天討論的所有數字（收入除外）都將基於調整後的非 GAAP 基礎。在我們的投資者關係網站上的收益發布和補充中提供了與最直接可比的 GAAP 財務指標的調節。這些非 GAAP 措施無意替代我們的 GAAP 結果。

Before we begin our prepared comments, please note that we will be attending 2 conferences in the second quarter: the William Blair 43rd Annual Growth Conference in Chicago on June 6, and the BofA Global Technology Conference in San Francisco on June 8. Also, we will be hosting our Investor Day on June 22 at the New York Stock Exchange.

在開始我們準備好的評論之前，請注意我們將在第二季度參加 2 場會議：6 月 6 日在芝加哥舉行的 William Blair 第 43 屆年度增長會議和 6 月 8 日在舊金山舉行的美國銀行全球技術會議。此外，我們將於 6 月 22 日在紐約證券交易所舉辦我們的投資者日。

With that, I'll turn the call over to Todd. Todd?

有了這個，我會把電話轉給托德。托德？

Thanks, Vern. Hi, everyone, and thank you so much for joining us today. First, I'd like to give a quick summary of our financial results and first quarter highlights, then I will provide a brief update on our product strategy and go-to-market motion before I hand the call over to Ron to discuss the first quarter financial results and guidance in detail.

謝謝，弗恩。大家好，非常感謝你們今天加入我們。首先，我想快速總結一下我們的財務業績和第一季度的亮點，然後我將簡要介紹一下我們的產品戰略和上市動議，然後再將電話交給羅恩討論第一個問題詳細的季度財務業績和指導。

We reported record first quarter revenue with $117.6 million, which grew 15% year-over-year and declined 1% quarter-over-quarter. I'm pleased that we exceeded our guidance range, and we're able to maintain healthy revenue in a typically weaker quarter due to seasonality. I'd like to congratulate the Fastly team on closing out a solid Q1. However, as I said last quarter, I still believe there remains an opportunity for us to outperform this level in 2023 and beyond.

我們報告第一季度收入達到創紀錄的 1.176 億美元，同比增長 15%，環比下降 1%。我很高興我們超出了我們的指導範圍，並且由於季節性，我們能夠在通常較弱的季度保持健康的收入。我要祝賀 Fastly 團隊完成了穩定的 Q1。然而，正如我上個季度所說，我仍然相信我們仍有機會在 2023 年及以後超越這一水平。

Our customer retention and growth engine remains strong. Our LTM NRR was 116% in the first quarter, down from 119% in Q4, however, it gained ground compared to 115% in the year ago quarter. Our DBNER was 121% in the first quarter, down from 123% in Q4 but expanded compared to 118% in Q1 of last year. Both of these metrics have shown seasonal headwinds in prior years. And despite the declines, they continue to indicate healthy expansion efforts within our existing customers.

我們的客戶保留和增長引擎依然強勁。我們的 LTM NRR 在第一季度為 116%，低於第四季度的 119%，但與去年同期的 115% 相比有所上升。我們的 DBNER 在第一季度為 121%，低於第四季度的 123%，但與去年第一季度的 118% 相比有所擴大。這兩個指標在前幾年都顯示出季節性逆風。儘管有所下降，但它們繼續表明我們現有客戶的健康擴張努力。

In an effort to provide more visibility to our current performance, we've changed some of our metrics definitions. Our new total customer count methodology calculates the number of customers based on quarter-end revenue instead of month-end revenue. Our new enterprise customer count is now based on customers spending $25,000 in revenue during the quarter instead of revenue in excess of $100,000 over the trailing 12 months. Accordingly, our average enterprise spend is based on this newer annualized approach. Ron will have more detail on all of these changes, and we will provide legacy metrics for the next 12 months.

為了讓我們更清楚地了解我們當前的表現，我們更改了一些指標定義。我們新的客戶總數計算方法根據季度末收入而不是月末收入來計算客戶數量。我們新的企業客戶數量現在基於客戶在本季度花費 25,000 美元的收入，而不是過去 12 個月超過 100,000 美元的收入。因此，我們的平均企業支出是基於這種較新的年度化方法。 Ron 將提供所有這些更改的更多詳細信息，我們將提供未來 12 個月的舊指標。

Our average enterprise customer spend was $795,000, representing a 3% quarter-over-quarter decline, but was up 5% from $758,000 compared to Q1 of last year. We've seen continued success in expanding our wallet share with customers as we've aligned our teams to be more focused on customer success on customer voice and journey as they grow into our complete product portfolio.

我們的企業客戶平均支出為 795,000 美元，環比下降 3%，但與去年第一季度的 758,000 美元相比增長了 5%。我們已經看到我們在擴大與客戶的錢包份額方面取得了持續的成功，因為我們已經調整了我們的團隊，以便在他們成長為我們完整的產品組合時更加關注客戶在客戶聲音和旅程方面的成功。

Similar to last quarter, we saw continued strong momentum in our Next-Gen WAF portfolio. We've seen both upsell success and new logo wins as a stand-alone sale. Of course, we anticipate over time having the opportunity to sell these new customers, our network service delivery as well as Compute@Edge and observability modules.

與上一季度類似，我們看到了下一代 WAF 產品組合的持續強勁勢頭。作為獨立的銷售，我們已經看到追加銷售的成功和新標識的成功。當然，我們預計隨著時間的推移，有機會向這些新客戶銷售我們的網絡服務交付以及 Compute@Edge 和可觀察性模塊。

I'm excited to share some important new strategic wins and key expansion verticals for us. We saw our first win at Frontier Airlines, continuing our momentum in travel and leisure. The first quarter marked 5 new logo wins in health care and life sciences, highlighted by our first win at CareRev, a staffing platform for health care professionals and also HealthSherpa, a solution that helps individuals connect with the appropriate health care coverage. We're also seeing momentum in the privacy and cybersecurity vertical with 4 new logo wins, most notably with Google for their private browsing solution.

我很高興為我們分享一些重要的新戰略勝利和關鍵的垂直擴張。我們在 Frontier Airlines 取得了第一場胜利，繼續我們在旅遊和休閒方面的勢頭。第一季度在醫療保健和生命科學領域贏得了 5 個新標識，其中我們在 CareRev（一個面向醫療保健專業人員的人員配置平台）和 HealthSherpa（一個幫助個人獲得適當的醫療保健覆蓋範圍的解決方案）上的第一個勝利凸顯了這一點。我們還看到了隱私和網絡安全垂直領域的發展勢頭，贏得了 4 個新徽標，其中最著名的是谷歌的隱私瀏覽解決方案。

Our total customer count in the first quarter was 3,100, which increased by 38 customers compared to Q4 and 135 year-over-year. Enterprise customers totaled 540 in the quarter, an increase of 7 compared to Q4 and 52 year-over-year.

我們第一季度的客戶總數為 3,100 人，與第四季度相比增加了 38 人，同比增加了 135 人。本季度企業客戶總數為 540 家，環比增加 7 家，同比增加 52 家。

Our gross margin was 55.6% for the first quarter, representing a 140 basis point decline quarter-over-quarter but a 300-basis-point increase year-over-year. I'm pleased with this result as a large amount of our fixed cost have to be sized for our peak traffic, but we continue to work rigorously on our cost of revenue and are finding savings with increased peering, network optimization and other initiatives that will continue through 2023.

我們第一季度的毛利率為 55.6%，環比下降 140 個基點，但同比增長 300 個基點。我對這個結果感到滿意，因為我們的大量固定成本必鬚根據峰值流量進行調整，但我們繼續嚴格控制收入成本，並通過增加對等、網絡優化和其他舉措來節省開支持續到 2023 年。

Also, let me take a quick moment to talk about our spending pattern. As you can see from our Q1 operating margin, the operating expenses were lower than anticipated by about $2 million. I was happy to see the effects of rigorous cost control, keeping our teams on budget. Of the $2 million under spend, roughly half was due to cost controls and cost management. The other half was due to the timing of certain expenses, and we anticipate that those will push into the second quarter.

另外，讓我花點時間談談我們的支出模式。從我們第一季度的營業利潤率可以看出，營業費用比預期低了約 200 萬美元。我很高興看到嚴格的成本控制的效果，使我們的團隊保持在預算之內。在支出不足的 200 萬美元中，大約一半是由於成本控制和成本管理。另一半是由於某些費用的時間安排，我們預計這些費用將推遲到第二季度。

In Q2, we do expect to have some other OpEx headwinds, merit increases and some seasonal marketing event expenses, but we also expect to see a onetime credit to OpEx from a sales tax refund, a product of the financial rigor and diligence our teams have been adding to our processes in the past few months. Regardless, the first half of 2023 is coming in as expected, as Ron will discuss in detail later on the call.

在第二季度，我們確實預計會有一些其他的 OpEx 逆風、業績增長和一些季節性營銷活動費用，但我們也預計會看到銷售稅退稅一次性記入 OpEx，這是我們團隊財務嚴謹和勤奮的產物在過去幾個月中一直在增加我們的流程。無論如何，2023 年上半年如期而至，Ron 稍後將在電話會議上詳細討論。

As you will see in the detailed guide even excluding our onetime tax benefit, our OpEx is growing far slower than the top line as we reconfigure our business for sustainable long-term growth, and we plan to continue that trend into the second half.

正如您在詳細指南中看到的那樣，即使不包括我們的一次性稅收優惠，我們的運營支出增長速度也遠低於收入增長，因為我們重新配置我們的業務以實現可持續的長期增長，我們計劃將這一趨勢延續到下半年。

Now on to our business highlights. During the quarter, our durable innovation engine shifted into gears, we expanded our product road map and feature set. There were several new technology releases, you can see in our supplement such as, in the first quarter, we introduced Config Store, giving developers the ability to create even more responsive, more personalized experiences. I'm excited about how this will help us accelerate our Compute@Edge business. We launched the beta Fastly's Oblivious HTTP Relay. This is a component of the Oblivious HTTP architecture that allows receipt of critical request data from end users without any of the identifying metadata, ensuring user privacy.

現在介紹我們的業務亮點。在本季度，我們的耐用創新引擎開始運轉，我們擴展了產品路線圖和功能集。有幾項新技術發布，您可以在我們的補充中看到，例如，在第一季度，我們推出了 Config Store，使開發人員能夠創建響應速度更快、更個性化的體驗。我很高興這將如何幫助我們加速我們的 Compute@Edge 業務。我們推出了 Fastly 的 Oblivious HTTP Relay 測試版。這是 Oblivious HTTP 架構的一個組件，它允許在沒有任何識別元數據的情況下從最終用戶接收關鍵請求數據，從而確保用戶隱私。

In the first quarter we launched and managed security service to protect our enterprise customers from rising web application attacks. This 24/7 service gives our customers direct access to the security monitoring our teams are already performing to secure our existing infrastructure. We're also anticipating our new simplified packaging launch later this quarter, but in early availability, there have already been 3 customer wins.

在第一季度，我們推出並管理了安全服務，以保護我們的企業客戶免受不斷增加的 Web 應用程序攻擊。這項 24/7 服務讓我們的客戶可以直接訪問我們的團隊已經在執行的安全監控，以保護我們現有的基礎設施。我們還預計本季度晚些時候將推出新的簡化包裝，但在早期可用性方面，已經贏得了 3 個客戶。

Moving on to our go-to-market developments. I'm excited to share with you a few milestone announcements that occurred during the first quarter. We introduced a new partner program to deliver greater value for customers and partners in our Fastly global partner network and give those partners access to Fastly's entire portfolio. This program features a new tiered model with simplified pricing and discounting, which we expect will help not only streamline our customers' onboarding but also greatly simplify our quoting and discounting process. The new program received CRN 5-star rating. I'm super excited about that.

繼續我們的上市發展。我很高興與您分享第一季度發生的一些里程碑式的公告。我們推出了一項新的合作夥伴計劃，旨在為 Fastly 全球合作夥伴網絡中的客戶和合作夥伴提供更大的價值，並讓這些合作夥伴能夠訪問 Fastly 的整個產品組合。該計劃採用新的分層模型，簡化了定價和折扣，我們希望這不僅有助於簡化客戶的入職流程，還可以大大簡化我們的報價和折扣流程。新節目獲得 CRN 5 星評級。我對此非常興奮。

Our first quarter is also exciting at Fastly since we live streamed the Super Bowl, and it gave us an opportunity to showcase some of our most powerful differentiated capabilities. During the event, our streaming bandwidth reached a record 81.9 terabits per second, supported by our automated traffic routing systems, autopilot and precision path. The event was done with less human involvement and utilizing our infrastructure far more efficiently than in prior years and in prior events.

自從我們直播了超級碗以來，我們的第一季度在 Fastly 也很令人興奮，這讓我們有機會展示我們一些最強大的差異化能力。在活動期間，在我們的自動交通路由系統、自動駕駛儀和精確路徑的支持下，我們的流媒體帶寬達到了創紀錄的每秒 81.9 太比特。與往年和之前的活動相比，此次活動的參與較少，並且對我們的基礎設施的利用效率更高。

Marquee live events have always been a strength at Fastly, backed by our live event monitoring service, which offers realtime observability and telemetry capabilities. And we've been engaging with other major sporting event opportunities in the international markets, thanks to the success of the Super Bowl.

Marquee 直播活動一直是 Fastly 的強項，由我們的直播活動監控服務提供支持，該服務提供實時可觀察性和遙測功能。由於超級碗的成功，我們一直在參與國際市場上的其他重大體育賽事機會。

As I mentioned earlier, Google selected Fastly's Oblivious HTTP Relay for its privacy sandbox initiative, FLEDGE. This solution was designed to enhance online privacy for billions of Chrome users by protecting user privacy with respect to third-party online tracking. To date, we are the only partner in this effort and we will continue to innovate in the browser, security and privacy space.

正如我之前提到的，谷歌為其隱私沙盒計劃 FLEDGE 選擇了 Fastly 的 Oblivious HTTP Relay。該解決方案旨在通過保護用戶在第三方在線跟踪方面的隱私來增強數十億 Chrome 用戶的在線隱私。迄今為止，我們是這項工作的唯一合作夥伴，我們將繼續在瀏覽器、安全和隱私領域進行創新。

We've put in place structural changes to our processes and realigned our departmental teams into functional groups. This has yielded success across our strategic initiatives, as I just discussed, but most importantly to this audience, it has yielded success in our financial results.

我們已經對我們的流程進行了結構性改變，並將我們的部門團隊重新調整為職能組。正如我剛才所討論的那樣，這在我們的戰略計劃中取得了成功，但對這些聽眾來說最重要的是，它在我們的財務業績上取得了成功。

So far I'm pleased with the progress we're making in 2023. I'm glad to see that our projections have been holding and the diligence of our planning is yielding accurate projections. We expect to hold our annual guidance both above and below the line and hope to find ways to outperform that guidance through strong innovation velocity, strategically lowering the friction of our go-to-market efforts and streamlining our employee experience.

到目前為止，我對我們在 2023 年取得的進展感到滿意。我很高興看到我們的預測一直有效，我們的規劃努力產生了準確的預測。我們希望在線上和線下都保持我們的年度指導，並希望通過強大的創新速度找到超越該指導的方法，從戰略上降低我們進入市場的努力的摩擦並簡化我們的員工體驗。

Last quarter, I gave an update on my first 6 months at Fastly. The excitement I shared for this team and its potential event has only increased. I believe there is an enormous opportunity to simplify our ordering to make it easier to deploy amazing web technology around the world, to reach a larger segment of the mid-market, to acquire customers at a faster rate with a motivated, empowered channel and to bring the best talent from across the cloud community to Fastly. Our customers have a real passion for Fastly solutions, and our employees have a real enthusiasm for Fastly's mission to make the Internet a better place where all experiences are fast, safe and engaging.

上個季度，我更新了我在 Fastly 的前 6 個月的情況。我為這支球隊和它的潛在事件所分享的興奮只增不減。我相信有一個巨大的機會來簡化我們的訂購，以便更容易地在世界範圍內部署令人驚嘆的網絡技術，進入更大的中端市場，以更快的速度獲得客戶，並通過有動力、有能力的渠道和將整個雲社區中最優秀的人才帶到 Fastly。我們的客戶對 Fastly 解決方案充滿熱情，我們的員工對 Fastly 的使命充滿熱情，即讓互聯網成為一個更美好的地方，讓所有體驗都快速、安全和引人入勝。

Let me close by saying how excited I am about the road ahead. Of course, there is plenty of work to do but I believe digital experiences will drive the mission and define the success of almost every organization everywhere and Fastly will have a significant impact on the way those digital experiences are built and delivered around the world.

最後，讓我說一下我對前面的道路有多興奮。當然，還有很多工作要做，但我相信數字體驗將推動使命並定義幾乎所有地方的每個組織的成功，而 Fastly 將對這些數字體驗在全球範圍內的構建和交付方式產生重大影響。

I look forward to sharing more with you regarding our progress, our focus on fueling growth, our customer acquisition and our velocity of innovation in the coming quarters and at our investor conference in June.

我期待在未來幾個季度以及 6 月的投資者會議上與您分享更多關於我們的進展、我們對推動增長的關注、我們的客戶獲取和我們的創新速度。

And now to discuss the financial details of the quarter and guidance, I'll turn the call over to Ron. Ron?

現在討論本季度的財務細節和指導，我會把電話轉給羅恩。羅恩？

Thank you, Todd, and thanks, everyone, for joining us today. I will discuss our business metrics and financial results and then review our forward guidance. Note, unless otherwise stated, all financial results in my discussions are non-GAAP based.

謝謝托德，也謝謝大家今天加入我們。我將討論我們的業務指標和財務結果，然後回顧我們的前瞻性指引。請注意，除非另有說明，否則我討論的所有財務結果均基於非 GAAP。

Total revenue for the first quarter increased 15% year-over-year to $117.6 million, exceeding the top end of our guidance of $114 million to $117 million. In the first quarter, revenue from Signal Sciences products was 13% of revenue, a 24% year-over-year increase or a 20% increase, excluding the impact of purchase price adjustments related to deferred revenue. Be aware that we calculate growth rates off the actual figures and the percentage of revenue is rounded to the nearest whole percent.

第一季度的總收入同比增長 15% 至 1.176 億美元，超過了我們 1.14 億美元至 1.17 億美元的指引上限。第一季度，Signal Sciences 產品收入佔收入的 13%，同比增長 24%，增幅為 20%，不包括與遞延收入相關的採購價格調整的影響。請注意，我們根據實際數字計算增長率，收入百分比四捨五入到最接近的整數百分比。

We continue to see healthy traffic expansion from our enterprise customers. And as we've shared in the past, given our relatively smaller market share, we continue to benefit from share gains in what is typically a seasonally weak quarter relative to the fourth quarter. This, coupled with the launch of our partner program, simplified packaging offerings and investments in our go-to-market efforts give us confidence in our 2023 revenue guidance.

我們繼續看到來自企業客戶的健康流量增長。正如我們過去分享的那樣，鑑於我們相對較小的市場份額，我們繼續受益於與第四季度相比通常是季節性疲軟的季度的份額增長。這一點，再加上我們合作夥伴計劃的啟動、簡化的包裝產品和對我們上市工作的投資，使我們對 2023 年的收入指導充滿信心。

Our trailing 12-month net retention rate was 116%, down slightly from 119% in the prior quarter but up from 115% in the year ago quarter. We continue to experience very low churn of less than 1%, and our customer retention dynamics remain strong.

我們過去 12 個月的淨保留率為 116%，略低於上一季度的 119%，但高於去年同期的 115%。我們繼續保持低於 1% 的極低流失率，並且我們的客戶保留動力依然強勁。

As Todd stated, we had 3,100 customers at the end of Q1, of which 540 were classified as enterprise.

正如托德所說，我們在第一季度末擁有 3,100 個客戶，其中 540 個被歸類為企業。

Let me now take a moment to discuss the changes we are implementing in our customer count metrics to provide more realtime visibility to the investment community.

現在讓我花點時間討論一下我們在客戶數量指標中實施的更改，以便為投資界提供更多實時可見性。

As Todd previously indicated, going forward, we will count as an enterprise customer any customer with $25,000 or more in revenue during the quarter, which equates to $100,000 or more in annual revenue. Previously, we reported our enterprise customer count based on LTM revenue, using trailing 12 months revenue of $100,000 or more to identify enterprise customers.

正如托德先前指出的那樣，展望未來，我們將把本季度收入達到或超過 25,000 美元的任何客戶都視為企業客戶，這相當於年收入達到或超過 100,000 美元。以前，我們根據 LTM 收入報告我們的企業客戶數量，使用 100,000 美元或更多的過去 12 個月收入來識別企業客戶。

Because our new approach provides information with respect to enterprise customer counts for the most recent quarter, we expect to see more seasonality in new customer enterprise additions than we saw in our LTM enterprise customer count. Additionally, we have simplified our methodology for total customer count and now count customers with revenue in the quarter as active customers.

因為我們的新方法提供了有關最近一個季度的企業客戶數量的信息，所以我們預計新客戶企業增加的季節性比我們在 LTM 企業客戶數量中看到的更多。此外，我們簡化了計算客戶總數的方法，現在將本季度有收入的客戶計為活躍客戶。

Previously, we counted customers with revenue in the last month of the quarter to be an active customer. This simplifies our calculation by eliminating credits or other adjustments made in a single month on an otherwise active customer. To provide transparency, we will continue to report both the new and prior methodology for both metrics on a trended basis in our periodic reports filed with the SEC and our investor supplement for all of our fiscal year 2023 reporting and intend to discontinue the use of the prior methodologies for 2024.

以前，我們將本季度最後一個月有收入的客戶計算為活躍客戶。這通過消除單月內對其他活躍客戶所做的信用或其他調整來簡化我們的計算。為了提供透明度，我們將繼續在向美國證券交易委員會提交的定期報告和我們所有 2023 財年報告的投資者補充報告中以趨勢為基礎報告這兩個指標的新方法和先前方法，並打算停止使用2024 年的先前方法。

Enterprise customers using our new methodology, accounted for 91% of total revenue on an annualized basis, down from 92% in Q4. Our enterprise customer average spend was $795,000, down 3% from $822,000 in the previous quarter and up 5% from $758,000 compared to Q1 of last year.

使用我們新方法的企業客戶佔年化總收入的 91%，低於第四季度的 92%。我們的企業客戶平均支出為 795,000 美元，比上一季度的 822,000 美元下降 3%，比去年第一季度的 758,000 美元增長 5%。

Our top 10 customers comprised 35% of our total revenues in the first quarter of 2023, a slight decrease from the 37% contribution in Q4 2022.

2023 年第一季度，我們的前 10 大客戶占我們總收入的 35%，略低於 2022 年第四季度的 37%。

I will now turn to the rest of our financial results for the first quarter.

我現在將談談我們第一季度的其他財務業績。

Our gross margin was 55.6% for the first quarter compared to 57% in the fourth quarter of 2022, excluding the onetime adjustments in the fourth quarter. This sequential decline in gross margin reflects our prior expectations that it would decline 100 to 200 basis points due to seasonality from holiday shopping patterns and live sports streaming viewership.

我們第一季度的毛利率為 55.6%，而 2022 年第四季度為 57%，不包括第四季度的一次性調整。毛利率的連續下降反映了我們之前的預期，即由於假日購物模式和體育直播收視率的季節性，毛利率將下降 100 至 200 個基點。

As Todd mentioned, a large amount of our fixed cost has to be sized for our peak traffic, which results in improving gross margin as traffic ramps. I will expand on this in a moment.

正如托德所提到的，我們的大量固定成本必鬚根據我們的高峰流量進行調整，這會隨著流量的增加而提高毛利率。稍後我將對此進行擴展。

Operating expense was $79.5 million in the first quarter, up 11% compared to Q1 2022 and down 1% sequentially from the fourth quarter. We saw approximately $2 million in favorability in operating expenses relative to our expectations. About half of this was due to expense control measures with the remainder of the result of certain marketing expenses that will slip into the second quarter.

第一季度的運營費用為 7950 萬美元，比 2022 年第一季度增長 11%，比第四季度下降 1%。相對於我們的預期，我們在運營費用方面看到了大約 200 萬美元的優惠。其中約一半是由於費用控制措施，其餘部分是將滑入第二季度的某些營銷費用。

This favorability, combined with revenue above the high end of our guidance and gross margins in line with expectations, resulted in an operating loss of $14.1 million, exceeding the high end of our operating loss guidance range of $18 million to $16 million.

這種青睞，加上高於我們指導上限的收入和符合預期的毛利率，導致運營虧損 1,410 萬美元，超過了我們 1,800 萬至 1,600 萬美元的運營虧損指導範圍的上限。

Our net loss in the first quarter was $10.8 million or a $0.09 loss per basic and diluted share compared to a net loss of $18 million or a $0.15 loss per basic and diluted share in Q1 2022.

我們在第一季度的淨虧損為 1080 萬美元，即基本股和稀釋後每股虧損 0.09 美元，而 2022 年第一季度的淨虧損為 1800 萬美元，即基本股和稀釋後每股虧損 0.15 美元。

Our adjusted EBITDA for the first quarter was negative $1.9 million compared to negative $7.8 million in Q1 2022.

我們第一季度調整後的 EBITDA 為負 190 萬美元，而 2022 年第一季度為負 780 萬美元。

Turning to the balance sheet. We ended the quarter with approximately $664 million in cash, cash equivalents, marketable securities and investments including those classified as long term.

轉向資產負債表。本季度結束時，我們擁有約 6.64 億美元的現金、現金等價物、有價證券和投資，包括那些被歸類為長期的投資。

Our free cash flow of negative $25 million was reduced sequentially by $15 million from the fourth quarter's negative $40 million. A majority of this $15 million improvement was due to a decrease in advanced prepayments for property and equipment commitments. We do not anticipate any material advanced prepayments for equipment commitments in future quarters.

我們的自由現金流為負 2500 萬美元，比第四季度的負 4000 萬美元減少了 1500 萬美元。這 1500 萬美元的改善中的大部分是由於財產和設備承諾的預付款減少。我們預計未來幾個季度不會對設備承諾進行任何重大預付款。

Our cash capital expenditures were approximately 8% of revenue in the first quarter at the high end of our outlook of capital expenditures of 6% to 8% of revenue for 2023. We expect quarterly capital expenditures to vary due to the timing of deployment but expect to be in line with our outlook for the full year. As a reminder, our cash capital expenditures include capitalized internal use software.

我們的現金資本支出在第一季度約為收入的 8%，處於我們 2023 年資本支出佔收入 6% 至 8% 的預期上限。我們預計季度資本支出會因部署時間而有所不同，但預計以符合我們對全年的展望。提醒一下，我們的現金資本支出包括資本化的內部使用軟件。

I will now turn to discuss our outlook for the second quarter and full year 2023. I'd like to remind everyone again that the following statements are based on current expectations as of today and include forward-looking statements. Actual results may differ materially, and we undertake no obligation to update these forward-looking statements in the future, except as required by law.

我現在將討論我們對 2023 年第二季度和全年的展望。我想再次提醒大家，以下陳述基於截至今天的當前預期，包括前瞻性陳述。實際結果可能存在重大差異，除法律要求外，我們不承擔在未來更新這些前瞻性陳述的義務。

Our second quarter and full year 2023 outlook reflect our continued ability to deliver strong top line growth via improved customer acquisition and expansion within our enterprise customers, driven in part by new and enhanced products. Our revenue guidance is based on the visibility that we have today.

我們的第二季度和 2023 年全年展望反映了我們通過改善客戶獲取和在企業客戶中的擴展來持續實現強勁的收入增長的能力，這在一定程度上受到了新產品和增強型產品的推動。我們的收入指導基於我們今天的知名度。

We expect expense growth for the year to continue to lag revenue growth and expect a meaningful improvement in our operating losses in 2023 over 2022.

我們預計今年的費用增長將繼續落後於收入增長，並預計 2023 年我們的經營虧損將比 2022 年有顯著改善。

As we stated last quarter, we are investing in our go-to-market efforts as part of our revenue growth initiatives to continue our expansion in our existing customers and to accelerate new customer acquisition. We will continue our investments in products and R&D, and we see meaningful opportunities to drive greater efficiencies in our operations, especially across G&A and expect to see meaningful leverage in our G&A costs in 2023 and for these costs to decrease as a percentage of revenue.

正如我們上個季度所述，作為收入增長計劃的一部分，我們正在投資進入市場的努力，以繼續擴大現有客戶並加速新客戶的獲取。我們將繼續對產品和研發進行投資，我們看到了提高運營效率的重要機會，尤其是在 G&A 方面，我們預計到 2023 年我們的 G&A 成本將得到有意義的槓桿作用，並且這些成本佔收入的百分比將下降。

Historically, second quarter revenue was sequentially flat with the first quarter. In 2023, we expect to see a slightly better revenue trajectory into the second quarter. For the second quarter, we expect revenue in the range of $117 million to $120 million, representing 16% annual growth and 1% sequential growth at the midpoint.

從歷史上看，第二季度收入與第一季度持平。到 2023 年，我們預計第二季度的收入軌跡會略有好轉。對於第二季度，我們預計收入在 1.17 億美元至 1.2 億美元之間，年增長率為 16%，中點環比增長率為 1%。

As we have discussed, we are managing our network capacity for higher traffic and revenue that we expect in the second half of 2023. In the second quarter, we anticipate our gross margins to generally be in line with our first quarter gross margin, plus or minus 100 basis points. For the full year, we expect to see continued gross margin accretion in the second half and to exit the year with gross margins within striking distance of 60%.

正如我們所討論的，我們正在管理我們的網絡容量，以實現我們預計在 2023 年下半年實現更高的流量和收入。在第二季度，我們預計我們的毛利率將與第一季度的毛利率基本持平，加上或負 100 個基點。對於全年，我們預計下半年毛利率將持續增長，並以接近 60% 的驚人毛利率結束這一年。

We did not see any meaningful changes, positive or negative to our pricing trajectory in the first quarter as compared to the prior quarter. We anticipate our pricing to be lower in the second quarter than its consistent trajectory over the past 4 quarters but expect it to return to its normal trajectory in the back half of 2023. This is a result of winning further delivery revenue from a major customer, and we will be ramping that traffic in the second quarter into our fixed cost base size for peak traffic. However, reductions in our bandwidth costs and ongoing network optimization should offset any pricing changes. And as I previously mentioned, we expect 2023 gross margins to remain in line with our existing expectations.

與上一季度相比，我們在第一季度的定價軌跡沒有看到任何有意義的變化，無論是積極的還是消極的。我們預計我們第二季度的定價將低於過去 4 個季度的一致軌跡，但預計它將在 2023 年下半年恢復正常軌跡。這是從主要客戶那裡贏得更多交付收入的結果，我們將在第二季度將該流量增加到峰值流量的固定成本基礎規模。但是，我們帶寬成本的降低和持續的網絡優化應該會抵消任何價格變化。正如我之前提到的，我們預計 2023 年的毛利率將與我們現有的預期保持一致。

Historically, we have experienced a significant increase in our operating expenses from Q1 to Q2 due to the continued impact of employer payroll taxes, annual salary increases at the beginning of the second quarter and a concentration of sales and marketing events. We then typically see substantially smaller increases in the second half of the year as the impact of employer payroll taxes begin to diminish in the third quarter and the concentration of sales and marketing events is less than we see in the second quarter.

從歷史上看，由於雇主工資稅的持續影響、第二季度初的年薪增長以及銷售和營銷活動的集中，我們從第一季度到第二季度的運營費用大幅增加。然後，隨著雇主工資稅的影響在第三季度開始減弱，並且銷售和營銷活動的集中度低於我們在第二季度看到的水平，我們通常會在下半年看到大幅減少的增幅。

Additionally, as I mentioned previously, our Q1 operating results were approximately $2 million below our earlier projections with half of this due to expense control measures we put in place around hiring and spending and the other half due to certain marketing spend slipped into the second quarter.

此外，正如我之前提到的，我們第一季度的經營業績比我們之前的預測低約 200 萬美元，其中一半是由於我們在招聘和支出方面採取了費用控制措施，另一半是由於某些營銷支出滑入了第二季度.

We expect this trend to continue and for operating expenses to increase in Q2 relative to Q1. This increase will, however, be partially mitigated by a refund of approximately $3.4 million related to an overpayment of sales and used taxes in prior years. Excluding the impact of this refund, Q2 operating expenses are expected to increase year-over-year by less than 10%. This lags our revenue growth in the quarter and sets us on a course towards a 10% operating loss margin for 2023.

我們預計這一趨勢將持續下去，並且第二季度的運營費用將比第一季度有所增加。然而，這一增長將被與前幾年多繳的銷售稅和使用稅相關的大約 340 萬美元的退款部分抵消。排除此次退款的影響，預計第二季度運營費用同比增長不到 10%。這落後於我們本季度的收入增長，並使我們朝著 2023 年 10% 的營業虧損率邁進。

As a result, in the second quarter, we expect a non-GAAP operating loss of $18 million to $16 million and a non-GAAP loss of $0.11 to $0.09 per share. For calendar year 2023, we are maintaining our prior guidance and expect revenue in the range of $495 million to $505 million, representing 16% annual growth at the midpoint.

因此，在第二季度，我們預計非 GAAP 運營虧損為 1800 萬至 1600 萬美元，非 GAAP 每股虧損為 0.11 至 0.09 美元。對於 2023 日曆年，我們維持之前的指導，預計收入在 4.95 億美元至 5.05 億美元之間，中點年增長率為 16%。

We expect a non-GAAP operating loss of $53 million to $47 million, reflecting an operating margin of negative 10% at the midpoint compared to an operating margin of negative 18% in 2022. We expect a non-GAAP loss of $0.27 to $0.21 per share.

我們預計非 GAAP 營業虧損為 5300 萬至 4700 萬美元，反映中點營業利潤率為負 10%，而 2022 年營業利潤率為負 18%。我們預計非 GAAP 營業虧損為 0.27 至 0.21 美元分享。

I'd also like to call out that the recent increase in interest rates is resulting in a meaningful increase in interest income on our cash and investments, and we are currently expected to earn approximately $20 million in interest income in 2023.

我還想指出，最近利率的上升導致我們現金和投資的利息收入顯著增加，目前預計我們將在 2023 年獲得約 2000 萬美元的利息收入。

Before we open the line for questions, we would like to thank you for your interest and your support in Fastly. Operator?

在我們打開問題熱線之前，我們要感謝您對 Fastly 的關注和支持。操作員？

(Operator Instructions) Our first question comes from Fatima Boolani from Citi.

（操作員說明）我們的第一個問題來自花旗銀行的 Fatima Boolani。

Todd, I'll start with you on the Google win. It seems like a really important beachhead in a very marquee customer. And so I was hoping you can share with us some of the contours of the win, some of the mechanics of why you are the sole source provider of the Private Relay around the browser security. And if you could just give us -- Ron, maybe you can give us some complexion on what the contract looks like and some of the financial implications, both near term and medium term? And then I'll have a quick follow-up, please.

托德，我將從你開始談起谷歌的勝利。對於一個非常重要的客戶來說，這似乎是一個非常重要的灘頭陣地。因此，我希望您能與我們分享一些勝利的輪廓，一些關於為什麼您是圍繞瀏覽器安全性的專用中繼的唯一來源提供商的一些機制。如果你能給我們 - 羅恩，也許你可以給我們一些關於合同的外觀和一些財務影響的情況，包括短期和中期？然後我會進行快速跟進，請。

Sure. Thanks for the call -- thanks for the question. Yes, it's a great deal. I think it was really a product of a great partnership between the Fastly team and the Google team and it helped, I think, that the missions are so aligned adding privacy to the browsing experience, making that web experience not just faster, but safer. It's really close to kind of our core.

當然。感謝您的來電——感謝您的提問。是的，這很重要。我認為這確實是 Fastly 團隊和谷歌團隊之間良好合作的產物，我認為它幫助任務如此一致，為瀏覽體驗增加了隱私，使網絡體驗不僅更快，而且更安全。它真的很接近我們的核心。

I think it helps that the infrastructure that we needed was really in place. The technology has been built out, had some experience in private browsing technology with other partners. And in a lot of ways, I think, Fastly made the best proposal and really was the obvious partner for this stuff.

我認為我們需要的基礎設施真正到位會有所幫助。該技術已經建成，與其他合作夥伴在隱私瀏覽技術方面有一些經驗。我認為，在很多方面，Fastly 提出了最好的建議，並且確實是這方面顯而易見的合作夥伴。

We've been incredibly focused on security over the past couple of years. And in this case, it was a -- I think it was a real landmark win for the team.

在過去的幾年裡，我們一直非常關注安全性。在這種情況下，這是——我認為這對球隊來說是一次真正具有里程碑意義的勝利。

I'm super excited to be sole-source for the Google architecture here. And I think that's really just a product of performance, the ease with which onboarding the technology was built out and the way the teams partnered together. Ron?

我非常高興能在這裡成為 Google 架構的獨家來源。而且我認為這真的只是性能的產物，構建技術的容易程度以及團隊合作的方式。羅恩？

Yes. I think on the deal side, I mean, we've done a couple of these sort of privacy, browser privacy engagements that leverages our technology really well. They are high-margin business.

是的。我認為在交易方面，我的意思是，我們已經完成了一些此類隱私、瀏覽器隱私約定，這些約定很好地利用了我們的技術。他們是高利潤業務。

I think from a revenue opportunity, while the nice contributions to the overall revenue. I think, as you said, one, it gives us really an opportunity to sort of expand sort of within those customers into other opportunities to grow to from what I would say is a nice contributor to revenue to potentially meaningful revenues over time with those customers.

我認為從收入機會來看，同時對整體收入做出了很好的貢獻。我認為，正如你所說，第一，它確實為我們提供了一個機會，可以在這些客戶中擴展到其他機會，從我所說的對收入的良好貢獻到隨著時間的推移與這些客戶的潛在有意義的收入增長.

Hello. I think I lost you there.

你好。我想我在那裡失去了你。

Any other questions?

還有其他問題嗎？

Yes. I thought I lost you there. Ron, just on some of the pricing commentary you mentioned a very specific instance of a particular transaction that's bringing some pricing fluctuations that are going to put pressure in the interim period. I'm curious if you can comment on any large renewals within the base that might be coming up that might be subject to maybe similar interim downward pressure? Just thinking back to some of your customer concentration commentary that did come down a little bit. But just curious if this is just sort of a one-off large customer with whom you've transacted for larger delivery revenues at that lower pricing or if there's kind of any more down the pipe that we should be mindful of from just a regular standpoint.

是的。我以為我在那裡失去了你。羅恩，就一些定價評論而言，你提到了特定交易的一個非常具體的實例，它帶來了一些定價波動，這將在過渡時期施加壓力。我很好奇你是否可以評論基地內可能即將出現的任何可能受到類似臨時下行壓力的大型更新？回想一下您的一些客戶集中度評論確實有所下降。但只是想知道這是否只是一個一次性的大客戶，您與他們進行交易以較低的價格獲得更大的交付收入，或者是否還有其他我們應該從常規角度注意的管道.

So that's a good question. I think the one we mentioned, I think it was sort of a unique situation where there was a consolidation of suppliers, and so our traffic levels increased materially. And so less impacted really by sort of the, what you would say, is sort of the annual renewal price discounts but more impacted by just the volume of traffic, driving an impact from this particular customer in terms of pricing per volume.

所以這是一個很好的問題。我認為我們提到的那個，我認為這是一種獨特的情況，供應商合併，因此我們的流量水平大幅增加。因此，您會說，每年續訂價格折扣的影響較小，但僅受流量的影響更大，從而推動了該特定客戶在每卷定價方面的影響。

I think one of the things, though, as this -- as we sort of see this and we talked a little bit about the impact on gross margins, is the efficiency we're seeing across our network, the increased peering allows us to take this additional traffic on with no adverse impact really to our gross margin expectations.

不過，我認為其中一件事——正如我們看到的那樣，我們談到了對毛利率的影響，就是我們在整個網絡中看到的效率，增加的對等允許我們採取這種額外的流量對我們的毛利率預期沒有任何不利影響。

I think more broadly, and I think one of the reasons we called this out into Q2 is, we've been -- it's been really great to see a couple of quarters where we've really seen lower, if you want to call it, rerates or discounts on an annual basis than maybe we saw historically.

我認為更廣泛，我認為我們將其稱為第二季度的原因之一是，我們已經 - 看到幾個季度我們真的看到了較低的情況真是太好了，如果你想稱之為，每年的重新評級或折扣可能比我們歷史上看到的要多。

I think as we go forward, there's nothing in particular I would call out other than, I think, an element of the market is -- as customers are looking for efficiency. I think that trajectory could see some increase over time, but we don't see that being a material issue. And again, the one we spoke about was specifically more tried to volume than what you would characterize as an annual renewal and a price down.

我認為在我們前進的過程中，除了我認為市場的一個要素是——因為客戶正在尋求效率之外，我沒有什麼特別要說的。我認為隨著時間的推移，該軌跡可能會有所增加，但我們認為這不是一個實質性問題。再一次，我們談到的那個比你所說的年度更新和降價更具體地嘗試了數量。

Our next question comes from Frank Louthan from Raymond James.

我們的下一個問題來自 Raymond James 的 Frank Louthan。

Great. And just to kind of follow up, how are you thinking about those larger deals as far as being more price disciplined? What is that changing now that you're able to keep those margins there? And are there any other, is there any capabilities or things you're doing for these customers that you think you could leverage to some other larger streaming or web players?

偉大的。只是為了跟進，你如何看待那些更大的交易，因為價格更加嚴格？現在您能夠將這些利潤率保持在那裡，這會發生什麼變化？還有沒有其他的，你認為你可以為這些客戶做的任何其他能力或事情可以用於其他一些更大的流媒體或網絡播放器？

Yes. Great question. And it's something we've been looking at a lot lately when we analyze LTM NRR, and we think about growth of the existing customers.

是的。很好的問題。這是我們最近在分析 LTM NRR 時一直關注的問題，我們考慮現有客戶的增長。

To be honest, one thing that's really helping here is the portfolio expansion, seeing the velocity within the security portfolio, the compute portfolio and even observability. We're seeing customers at renewal time, sometimes taking the opportunity to explore the rest of our portfolio as part of that renewal, which has been helping. And that success, I think, in some ways, changes that negotiation to a degree and also I think puts us in a stronger position as a strategic partner.

老實說，真正有幫助的一件事是產品組合的擴展，看到安全產品組合、計算產品組合甚至可觀察性的速度。我們在續訂時間看到客戶，有時會藉此機會探索我們的其餘產品組合，作為續訂的一部分，這一直在提供幫助。我認為，這種成功在某種程度上改變了談判，而且我認為使我們作為戰略合作夥伴處於更有利的地位。

I think there's always going to be a natural amount of movement here. There's more bandwidth on the Internet every year, and that bandwidth costs a little bit less every year. We're going to -- we're always going to see that. But by expanding the portfolio and using these renewals as an opportunity to become a more significant part of the customer's infrastructure, we've seen lately, I think some real success there in driving molecular expansion and more of a strategic partner status within those customers. Anything to add?

我認為這裡總會有自然的運動量。互聯網上的帶寬每年都在增加，而帶寬成本每年都在減少一點。我們將——我們總是會看到這一點。但通過擴大產品組合併將這些更新作為成為客戶基礎設施更重要部分的機會，我們最近看到，我認為在推動分子擴張方面取得了一些真正的成功，並在這些客戶中獲得了更多的戰略合作夥伴地位。有什麼要補充的嗎？

The only thing I would add is, I think that renewal cycle, what we typically see is that really is one of the opportunities when we see that expansion most. So (inaudible) a lot of times these renewals come up. And it's not just a kind of that annual pricing, you'd see change relative to the market, but it's also tied to either increasing the product portfolio that the customer is adopting or increasing traffic levels. And so we get that expansion motion.

我唯一要補充的是，我認為我們通常看到的更新周期確實是我們看到擴張最多的機會之一。所以（聽不清）很多時候這些續約都會出現。這不僅僅是一種年度定價，你會看到相對於市場的變化，但它也與增加客戶採用的產品組合或增加流量水平有關。所以我們得到了擴張運動。

And then I think the efficiencies that over the last year that we've really built into our network, which allow us to take advantage of that continuing dropping cost of bandwidth, the efficiency of their network and increased server efficiency, allow us to kind of absorb that additional traffic very efficiently. So these renewals, while there's maybe a pricing component, also an opportunity for us to expand within that customer.

然後我認為，在過去的一年裡，我們真正建立在網絡中的效率，使我們能夠利用持續下降的帶寬成本、他們的網絡效率和提高的服務器效率，讓我們能夠非常有效地吸收額外的流量。因此，這些續訂，雖然可能有定價成分，但也是我們在該客戶中擴展的機會。

Our next question comes from Jonathan Ho from William Blair.

我們的下一個問題來自 William Blair 的 Jonathan Ho。

So one thing I wanted to understand a little bit better was, what are you seeing out in the macro environment? And is there anything that's maybe changing either, I guess, the term or length of some of these sales cycles or customers willing to commit just given what's happening out there?

所以我想更好地理解一件事是，你在宏觀環境中看到了什麼？有沒有什麼可能會改變，我猜，這些銷售週期中的一些的期限或長度，或者僅僅考慮到那裡發生的事情，客戶願意承諾嗎？

I'll start. We've been trying to read as much of the analyst work and sort of trying to see how the macro effects might -- might affect our business. We don't have a lot of exposure to financials -- financial companies or service providers, telco/service provider. I'd like to have a little more exposure to the SMB space, but we don't today. So the macro effects that might be slowing down that, those parts of the market really don't affect us.

我會開始。我們一直在嘗試閱讀盡可能多的分析師工作，並試圖了解宏觀影響可能如何影響我們的業務。我們沒有太多接觸金融——金融公司或服務提供商、電信/服務提供商。我想更多地接觸 SMB 領域，但我們今天沒有。因此，可能放緩的宏觀影響，市場的那些部分確實不會影響我們。

As far as the deal cycles go, so there's puts and takes here, but we haven't seen a significant shift. We do see some of our large strategic customers looking at vendor consolidation, they want to manage fewer vendors. That tends to be good for us as the performance leader, being price competitive, puts us in a good negotiating position around better consolidation. And I understand why teams are looking to do that to simplify their operation, make their teams more efficient. But from a deal cycle point of view, maybe there's some puts and takes, but we haven't seen are prevailing trends there.

就交易週期而言，這裡有看跌期權，但我們沒有看到重大轉變。我們確實看到我們的一些大型戰略客戶正在考慮供應商整合，他們希望管理更少的供應商。這往往對我們有利，因為性能領導者俱有價格競爭力，使我們在更好的整合方面處於有利的談判地位。我理解為什麼團隊希望這樣做來簡化他們的操作，使他們的團隊更有效率。但從交易週期的角度來看，也許有一些看跌期權，但我們還沒有看到那裡的普遍趨勢。

Yes, I don't think I'd add anything. I think we're -- as providing the service, we're kind of core to the company, so it's not on the list of where companies are looking to necessarily cut. They are looking to drive efficiency that has played out well for us in terms of expansion. But we haven't seen any real change. Like I said, I think there's puts and takes on the deal cycle. Some of these dynamics trying to drive efficiency have actually accelerated some cycles, and I'm sure some cycles are taking longer, but...

是的，我不認為我會添加任何東西。我認為我們 - 作為提供服務，我們是公司的核心，所以它不在公司希望削減的清單上。他們正在尋求提高效率，這在我們的擴張方面發揮了很好的作用。但我們還沒有看到任何真正的變化。就像我說的，我認為在交易週期中存在看跌期權和接受看跌期權。其中一些試圖提高效率的動力實際上加速了一些週期，我敢肯定有些週期需要更長的時間，但是......

Anecdotally, some of our largest deals have gone incredibly quickly. Yes.

有趣的是，我們一些最大的交易進行得非常快。是的。

Excellent, excellent. And I guess, I also wanted to understand a little bit better why the decision now to change your enterprise customer count and enterprise -- I think it's revenue as well. I guess like what were you maybe not capturing with the prior methodology that maybe is a little bit more accurate with the current methodology?

優秀，優秀。而且我想，我也想更好地理解為什麼現在決定改變您的企業客戶數量和企業——我認為這也是收入。我想你可能沒有用以前的方法捕捉到什麼，而用當前的方法可能更準確一些？

It's something we've talked about for a while. We've actually have heard some input from investors that the historical way we did it was very backward looking. And so it didn't give a real contemporaneous view in terms of the progress we're making in terms of adding enterprise customers by looking at a 12-month trailing average. And so the view was -- and we've been starting to look at this internally really over the last 12 to 18 months in terms of what is our enterprise level customer acquisitions in the current quarter look like. And we think this provides better realtime information of the progress we're making in customer acquisition and definitely reflects better on how the business is doing.

這是我們已經討論了一段時間的事情。實際上，我們已經從投資者那裡聽到了一些意見，即我們這樣做的歷史方式非常落後。因此，就我們通過查看 12 個月的追踪平均值在增加企業客戶方面取得的進展而言，它並沒有給出真正的同期觀點。所以觀點是——在過去的 12 到 18 個月裡，我們已經開始在內部真正地研究這個問題，看看我們在本季度的企業級客戶收購是什麼樣子的。我們認為這提供了我們在客戶獲取方面取得的進展的更好的實時信息，並且肯定更好地反映了業務的運作方式。

As we did this, we want to make sure that for the next -- for this quarter and the next 3 quarters, we are going to share both numbers. I want to be fully transparent. But we think this is a much more timely metric to understand how we're doing in the business.

當我們這樣做時，我們希望確保在下一個季度 - 本季度和接下來的 3 個季度，我們將分享這兩個數字。我想完全透明。但我們認為這是一個更及時的指標，可以了解我們在業務中的表現。

I'll just add. That 100%, the motivation is just trying to be more transparent about what's happening now and making the data more relevant. It also helps within the way we're managing our business, we're always looking for leading indicators. And so we're tracking these numbers internally with our teams much more in line with these new metrics. So I think that helps as well.

我補充一下。那個 100% 的動機只是試圖讓現在發生的事情更加透明，並使數據更具相關性。它還有助於我們管理業務的方式，我們一直在尋找領先指標。因此，我們正在與我們的團隊內部跟踪這些數字，以更加符合這些新指標。所以我認為這也有幫助。

Our next question comes from James Fish from Piper Sandler.

我們的下一個問題來自 Piper Sandler 的 James Fish。

Todd, you talked there about the new packaging and pricing, a little bit of details before. But can you walk us through how that is different versus what you had before, remind us on that? And what the adoption kind of feedback has been so far? How many kind of partners you have signed up at this point with the kind of the new program and how long until we could get the majority of customers on kind of the new packaging modules?

托德，你之前談到了新包裝和定價，以及一些細節。但是你能告訴我們這與你以前有什麼不同，提醒我們嗎？到目前為止，採用什麼樣的反饋是什麼？在這一點上，您已經與多少種合作夥伴簽署了這種新計劃？我們需要多長時間才能讓大多數客戶使用這種新的包裝模塊？

Sure. Yes. So traditionally, Fastly has been largely sold on a utility model, really like, I think, what I'd call a pure utility model. And that model for a lot of customers is kind of a la carte, you buy and pay for things a feature at a time. And for large strategic customers, that looks great. They want to do that type of tuning and they want to analyze their cost with that level of sophistication. For them, nothing will change. Our existing models continue and we'll continue to run that motion.

當然。是的。因此，傳統上，Fastly 主要以實用新型為基礎進行銷售，我認為這真的很像我所說的純實用新型。對於很多客戶來說，這種模式有點像點菜，你一次購買並支付一個功能。對於大型戰略客戶來說，這看起來很棒。他們想要進行那種類型的調整，他們想要以那種複雜程度分析他們的成本。對他們來說，什麼都不會改變。我們現有的模型繼續存在，我們將繼續運行該動議。

But in order to simplify our offering for the rest of the market, really looking at ways to give them a solution that feels more comfortable in that initial buying motion in that customer acquisition motion. And so our package is, #1, its product line base. So it gives you all the basic actions that you would need within a product line and that those product lines are content delivery, security, observability and edge compute. And so you buy one of those packages and you get everything new. You need -- there's 3 tiers of those packages, kind of like a small, medium and large, and customers can choose the one that works best for them.

但為了簡化我們為其他市場提供的產品，真正想辦法為他們提供一種解決方案，讓他們在最初的購買動作和客戶獲取動作中感覺更舒服。所以我們的包裝是，#1，它的產品線基礎。因此，它為您提供了產品線中所需的所有基本操作，這些產品線是內容交付、安全性、可觀察性和邊緣計算。所以你買了其中一個包，你得到了所有新的東西。你需要——這些包有 3 層，有點像小型、中型和大型，客戶可以選擇最適合他們的。

And it gives the benefit, and we've heard a lot of positive feedback on this of predictable billing. They buy the package to their size. They get built the same amount every month. And that takes a little bit of the risk and concern off the customer, knowing what they're going to be built, not having to guess and get surprised by a [billing that] -- we're starting to hear some feedback. We believe that will lower some of the friction, especially for new customers onboarding to the platform.

它帶來了好處，我們聽到了很多關於可預測計費的積極反饋。他們根據自己的尺寸購買包裹。他們每個月建造的數量相同。這減少了客戶的一些風險和擔憂，他們知道他們將要建造什麼，而不必猜測和對 [billing that] 感到驚訝——我們開始聽到一些反饋。我們相信這會減少一些摩擦，特別是對於新客戶加入該平台。

So that's the reason -- those are the primary motivations are moving to all-in-one predictable billing package model. And are super excited about -- we're starting to see starting to get some good feedback. We've got a big launch coming up this quarter on it and are excited to bring that out to customers. I was super excited to see that a couple of deals even close early, which is great.

這就是原因——這些是轉向多合一可預測計費包模型的主要動機。並且非常興奮 - 我們開始看到開始獲得一些好的反饋。本季度我們將推出一款大型產品，很高興能將其帶給客戶。我非常興奮地看到幾筆交易甚至提前結束，這太棒了。

As far as the partner program goes, really, we're excited to bring the whole portfolio to our partner network, bars, resellers, MSPs, service provider partners have been an amazing channel for our security business in the past, and this new program brings our entire portfolio to bear through that channel, which is great.

就合作夥伴計劃而言，真的，我們很高興將整個產品組合引入我們的合作夥伴網絡，酒吧、經銷商、MSP、服務提供商合作夥伴過去一直是我們安全業務的絕佳渠道，而這個新計劃通過該渠道帶來我們的整個產品組合，這很棒。

We believe that the packages will also be easier to transact through the channel because they're inclusive because there's fewer SKUs to buy and because of this reliable, predictable billing piece. And so we're kind of bullish on that.

我們相信，包裹也將更容易通過渠道進行交易，因為它們具有包容性，因為需要購買的 SKU 更少，而且由於這種可靠、可預測的計費方式。所以我們有點看好這一點。

The partner program also just kicked off. So we're really getting started. We're tracking -- of course, we're tracking partner activations, but deal registration, especially to see how the motion is working and how we're driving new customer acquisition through the partner community.

合作夥伴計劃也剛剛啟動。所以我們真的開始了。我們正在跟踪——當然，我們正在跟踪合作夥伴激活，但交易註冊，尤其是為了了解動議是如何運作的，以及我們如何通過合作夥伴社區推動新客戶的獲取。

I expect and I hope to see some real movement and see the starting to affect the pipeline later this year and to start affecting the revenue numbers in a big way, maybe by the end of the year, but definitely next.

我期待並希望看到一些真正的變化，並看到今年晚些時候開始影響管道，並開始對收入數字產生重大影響，也許到今年年底，但肯定是明年。

That's helpful detail. Just a follow-up there. Really with the packaging, it sounds as if it's kind of, let's call it, subscription based as opposed to the utility or usage base. Ron, does that kind of act a little bit as a near-term headwind to growth artificially this year, just given kind of that movement away near term? And if so, is there a way to think about kind of the quantitative impact unless you really start accelerating kind of customer count?

這是有用的細節。只是那裡的後續行動。就包裝而言，聽起來好像有點，讓我們稱之為基於訂閱，而不是實用程序或使用基礎。羅恩，這種情況是否會人為地成為今年增長的近期逆風，只是考慮到短期內的這種走勢？如果是這樣，除非您真正開始加速某種客戶數量，否則有沒有辦法考慮某種定量影響？

Yes. I mean I don't think it really impacts kind of our current trajectory in that -- most of the customers who are going to be adopting this are going to be new customers and [increment] business are from a segment that we really haven't penetrated deeply in the past.

是的。我的意思是，我認為這不會真正影響我們目前的發展軌跡——大多數將要採用它的客戶將成為新客戶，[增量]業務來自我們真正沒有的細分市場”深入過去。

I think our larger customers, the enterprise customers, I mean, most of those are going to continue to buy on the current model, so I don't anticipate it having an impact. The impact that it will have as it becomes a bigger piece of revenue is it's going to reduce a lot of the volatility. It's going to improve the predictability of our revenue as we build up a bigger base of these packaging and sort of recurring revenue streams.

我認為我們的大客戶，企業客戶，我的意思是，其中大多數將繼續購買當前模型，所以我預計它不會產生影響。隨著它成為更大的收入部分，它將產生的影響是它將減少很多波動性。隨著我們建立更大的這些包裝基礎和經常性收入流，它將提高我們收入的可預測性。

Our next question comes from Sanjit Singh from Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Sanjit Singh。

It's Matt Wilson on for Sanjit. Congrats on the solid quarter. I wanted to circle back to the customer consolidation efforts, the commentary you made there. It's the theme we've heard more of lately across software and then our Fastly checks. But when a customer that has a multi-CDN strategy decides to consolidate vendors, what does this conversation look like in terms of how many vendors they consolidate down to? How much traffic share can Fastly gain in these efforts? And kind of like the new pricing and packaging, does that kind of accelerate these consolidation efforts in the customer base?

Sanjit 是 Matt Wilson。祝賀這個穩定的季度。我想回到客戶整合的努力，你在那裡發表的評論。這是我們最近在軟件和 Fastly 測試中聽到更多的主題。但是，當擁有多 CDN 策略的客戶決定整合供應商時，就他們整合到多少供應商而言，這種對話是什麼樣的？在這些努力中，Fastly 能獲得多少流量份額？有點像新的定價和包裝，這是否會加速客戶群中的這些整合工作？

Yes. I can give you my sense on that. It's a great question. The vendor consolidation tends to happen -- is really solely for multi-CDN customers. And the packaging largely isn't designed for those folks. People who are running a multi-CDN architecture would fall into that category, I think of like large sophisticated customers who really want utility building, and so I'm not expecting that to have an effect there.

是的。我可以告訴你我的看法。這是一個很好的問題。供應商整合往往會發生——實際上只針對多 CDN 客戶。而且包裝很大程度上不是為那些人設計的。運行多 CDN 架構的人會屬於這一類，我認為像真正想要實用程序構建的大型老練客戶，所以我不期望這會在那裡產生影響。

But what it looks like generally is a discussion about the metrics that matter, what that customer's metric of success is, whether it's a total latency time to interactivity on their application or their website, whether it's the load on their origin, whether it's total cost and can sometimes feel, and total performance in a whole host of different ways get measured by our customers. Our tools are largely designed to give our customers those metrics right off the Fastly system. And then there's a discussion about trimming the vendors who either aren't delivering on the metrics that matter or are overpriced or difficult to work with, et cetera.

但它看起來通常是關於重要指標的討論，客戶的成功指標是什麼，無論是在他們的應用程序或他們的網站上進行交互的總延遲時間，是否是他們來源的負載，是否是總成本有時，我們的客戶可以通過多種不同方式感受和衡量總體績效。我們的工具主要旨在為我們的客戶提供 Fastly 系統上的這些指標。然後是關於削減供應商的討論，這些供應商要么沒有提供重要的指標，要么定價過高或難以合作，等等。

And so, for us, I think we've seen success here because we are a performance leader. We have a ton of focus on customer set and customer success. Our services team is extremely, extremely active in working with our customer base to ensure real -- the real kind of success that they care about, which is their user experience, their end-user experience. And so it's largely, I think, been a headwind for us for those reasons.

因此，對我們來說，我認為我們在這裡取得了成功，因為我們是績效領導者。我們非常關注客戶群和客戶成功。我們的服務團隊非常非常積極地與我們的客戶群合作，以確保他們真正關心的真正成功，即他們的用戶體驗，他們的最終用戶體驗。因此，我認為，由於這些原因，這在很大程度上對我們來說是一個不利因素。

Excellent. And one more on gross margins. As Fastly exits the year within striking distance, like what are the efforts to get gross margins above that 60%? Is there still peering and network optimization work that can be done in '24? Are there kind of like other levers on the cost side to help gross margins?

出色的。還有一個關於毛利率。隨著 Fastly 以驚人的距離退出這一年，比如為了使毛利率超過 60% 而做出的努力？在 24 世紀是否還有可以完成的對等互連和網絡優化工作？在成本方面是否有其他類似的槓桿來幫助提高毛利率？

Yes. [Since we have] had this call this week. So I've been tracking this stuff pretty closely. It's amazing the efficiency work that's being done. On the network engineering side, for sure, there's peering, network engineering work that we're looking at and there's contract negotiation. Yes. As our network continues to reach new record levels of traffic and we become a bigger buyer of bandwidth, and so we're able to negotiate better rates, which is great.

是的。 [因為我們] 本週接到了這個電話。所以我一直在密切跟踪這些東西。正在進行的效率工作令人驚訝。在網絡工程方面，當然有我們正在研究的對等網絡工程工作以及合同談判。是的。隨著我們的網絡繼續達到新的流量記錄水平，我們成為帶寬的更大買家，因此我們能夠協商更好的費率，這很棒。

There's another side to it, which is the hardware infrastructure side. And our teams have been doing a really amazing work, making our existing infrastructure more and more efficient. There's even a guy with a hat that reads fully depreciated, it's still in use. And I think that's a great mantra for the team.

它還有另一面，即硬件基礎設施方面。我們的團隊一直在做一項非常了不起的工作，使我們現有的基礎設施越來越高效。甚至還有一個人戴著一頂寫著已經完全折舊的帽子，它還在使用。我認為這對團隊來說是一個很好的口頭禪。

And so by making our infrastructure more efficient, both compute, but also making our cash more efficient, our stores more efficient, we're able to deploy less hardware. And in doing so, increase obviously how much we depreciate every month.

因此，通過讓我們的基礎設施更高效，既可以計算，也可以讓我們的現金更有效率，我們的商店更有效率，我們能夠部署更少的硬件。在這樣做的過程中，明顯增加了我們每個月的貶值幅度。

That's helping on the gross margin side, but I'll also mention really helps on the cash flow side in a more immediate way. And I think you'll see that. You've seen it in the last quarter or so, but you'll see it in the next 4 quarters, just the amount of cash out the door to buy hardware and infrastructure is dropping precipitously because of that efficiency work.

這對毛利率方面有幫助，但我也會以更直接的方式提到對現金流方面的真正幫助。我想你會看到的。你在上個季度左右看到了它，但你會在接下來的 4 個季度看到它，由於效率工作，購買硬件和基礎設施的現金數量急劇下降。

Our next question comes from Tal Liani from Bank of America.

我們的下一個問題來自美國銀行的 Tal Liani。

This is Madeline for Tali today. Just one quick one on packaging and then I have a follow-up pivot on product. But on packaging, if we take a customer like-for-like, it would be a good candidate for the new packaging. Do you expect to see any uplift at all?

這是今天塔利的瑪德琳。只是關於包裝的一個快速的，然後我有一個關於產品的後續支點。但在包裝上，如果我們對客戶進行比較，那麼新包裝將是一個不錯的選擇。您希望看到任何提升嗎？

Yes, a great question. And I'll tell you our intention is that it would be about breakeven. I'm sure that for some customers it will be puts and takes here, too, for some customers, maybe there'll be a little more spend and for others a little less. But the benefit that we're really trying to drive here is a better user experience, an easier onboarding experience and to lower the friction of that onboarding motions that we can reach new customers faster and making it easier for them to buy, making it easier for them to onboard.

是的，一個很好的問題。我會告訴你，我們的意圖是實現收支平衡。我敢肯定，對於某些客戶來說，它也會在這裡放置和取走，對於某些客戶來說，可能會多花一點錢，而其他人則少花一點錢。但我們真正想要推動的好處是更好的用戶體驗，更輕鬆的入職體驗，以及降低入職流程中的摩擦，我們可以更快地接觸到新客戶，讓他們更容易購買，更容易讓他們上船。

And the 3 tiers really help with that by having kind of a starter pack mid-level and high-end package, that starter pack gives an entry point that can give new customers a lot of confidence that they won't have surprises as they learn more about the platform. And then, of course, our customer success team can work with them over time to rightsize the package of their usage. So that's the goal. That's really the benefit we're looking to drive. I don't expect it to be a headwind or a tailwind. If it was, we would adjust.

3 層通過提供入門包中級和高端包來真正幫助解決這個問題，該入門包提供了一個切入點，可以讓新客戶充滿信心，相信他們在學習過程中不會有驚喜更多關於平台。然後，當然，我們的客戶成功團隊可以隨著時間的推移與他們合作，以調整他們的使用包。這就是目標。這確實是我們想要推動的好處。我不希望它成為逆風或順風。如果是這樣，我們會進行調整。

Got it. And then just to pivot on the product side. Any chance you could just talk to how edge compute has been going as well as any security priorities for this year in terms of product development. And on top of that, too, could we potentially see some uplift on the growth side from either of these categories.

知道了。然後只是轉向產品方面。如果有機會，您可以談談邊緣計算的進展情況以及今年在產品開發方面的任何安全優先事項。最重要的是，我們是否也有可能看到這兩個類別中的任何一個在增長方面有所提升。

Yes, great. On the compute side, part of our incubation portfolio category. So I'll tell you, we're really focused on customer acquisition. That is our driving force. And we're tracking a lot of things in that incubation zone, like how quickly our customers are able to ramp their load onto the Fastly platform, how using the developer experiences, what kind of additional features that they need so that we can bring those to the platform and drive a broader and broader motion and compute.

對，很好。在計算方面，我們的孵化產品組合類別的一部分。所以我會告訴你，我們真的專注於客戶獲取。這是我們的動力。我們正在該孵化區跟踪很多事情，比如我們的客戶能夠以多快的速度將他們的負載加載到 Fastly 平台上，如何使用開發人員體驗，他們需要什麼樣的附加功能以便我們可以帶來這些到平台並推動越來越廣泛的運動和計算。

I expect us to stay focused on that at least through this year and maybe start to see some real revenue tailwinds from compute next. But optimistically, I'd love to see something in Q4 there that has significant uplift, but it has been going pretty well. And we are finding new use cases and customers there in some really interesting ways, especially in tech.

我希望我們至少在今年繼續專注於此，並可能在接下來開始看到來自計算的一些真正的收入順風。但樂觀地說，我很樂意在第四季度看到一些有顯著提升的東西，但它一直進展順利。我們正在以一些非常有趣的方式在那裡尋找新的用例和客戶，尤其是在技術領域。

From a security point of view, it was just RSA a couple of weeks ago. We had a great experience there and a really great showing with tons of interest, tons of demand gen and lead gen from the teams at that conference.

從安全的角度來看，它只是幾週前的 RSA。我們在那裡有一段很棒的經歷，並且展示了非常棒的表現，在那次會議上來自團隊的大量興趣、大量需求和潛在客戶。

There's a ton of interest in the work that's being done around bot protection, tons of interest on the new DDoS visibility that's being introduced onto the platform. And it's interesting because we've always run a SOC motion, Security Operations Center motion that's doing real-time monitoring the security of our system, monitoring DDoS tech around the world, et cetera. And for the first time, we've opened that up as a paid service, managed security service and let our customers sort of enjoy the benefits of that. And we're getting a ton of interest there, which is great. It's very cost efficient for us. It's 3 sources, and a service we already run internally. And yes, I'm pretty bullish on that and hoping to see some significant deals in the second half.

人們對圍繞機器人保護所做的工作很感興趣，對平台上引入的新 DDoS 可見性也很感興趣。這很有趣，因為我們一直在運行 SOC 動議，安全運營中心動議，實時監控我們系統的安全性，監控全球的 DDoS 技術，等等。這是我們第一次將其作為付費服務、託管安全服務開放，讓我們的客戶從某種程度上享受其中的好處。我們在那裡獲得了很多興趣，這很棒。這對我們來說非常划算。它有 3 個來源，並且是我們已經在內部運行的服務。是的，我非常看好這一點，並希望在下半年看到一些重大交易。

Our next question comes from Rishi Jaluria from RBC Capital Markets.

我們的下一個問題來自 RBC Capital Markets 的 Rishi Jaluria。

This is Richard Poland on for Rishi Jaluria. Just kind of a follow-up on the security road map. It was nice to see the managed security service rollout in the quarter. But just as you think about different areas of the product portfolio on the security side, are there any maybe features or capabilities that you think are kind of a key focus for you as we head into the rest of 2023 or anything that you've identified that customers really want that maybe Fastly could start to roll out? And then I have a follow-up.

這是 Richard Poland 的 Rishi Jaluria。只是對安全路線圖的跟進。很高興看到本季度託管安全服務的推出。但是，正如您在安全方面考慮產品組合的不同領域一樣，在我們進入 2023 年剩餘時間或您確定的任何事情時，是否有您認為可能是您重點關注的特性或功能客戶真的希望 Fastly 可以開始推出嗎？然後我有一個後續行動。

Sure. Yes. It's an area that we are -- that's very top of mind for us. As it is for our customers, we've just seen a ton of interest here. The private browsing stuff has been super interesting in thinking about different types of anonymous proxy work that have use cases across that space has been great.

當然。是的。這是我們所在的領域——這是我們最關心的問題。對於我們的客戶來說，我們剛剛在這裡看到了很多興趣。私人瀏覽的東西在思考不同類型的匿名代理工作時非常有趣，這些工作在該領域都有很好的用例。

But I think for the bulk of our customers, bot protection is very top of mind, especially in e-commerce, it's just incredibly top of mind. It's a really interesting area with the technology, the state of the art is constantly changing and the methods being used and the signals that we use to send bot information back to the origins are changing, and we are investing a ton here to really understand what is going to be best-in-class for the next 5, 10 years.

但我認為對於我們的大部分客戶來說，機器人保護是最重要的，尤其是在電子商務中，這是令人難以置信的首要考慮。這是一個非常有趣的技術領域，技術水平在不斷變化，使用的方法和我們用來將機器人信息發送回原點的信號也在發生變化，我們在這裡投入大量資金以真正了解什麼將在未來 5 年、10 年成為同類最佳。

There are some interesting early work and early -- and sort of early discussion around technology that can be used specifically in the streaming space around Security 2. But I would say, across the board, of protection, new types of visibility for DDoS and a real managed security service, those 3 areas, you've got just a ton of interest right now and ton of focus and R&D going on.

有一些有趣的早期工作和早期 - 以及圍繞安全 2 專門用於流媒體空間的技術的早期討論。但我要說的是，全面的保護，DDoS 的新型可見性和真正的託管安全服務，這 3 個領域，你現在有大量的興趣，大量的關注和研發正在進行中。

But on the streaming side, privacy protection and providing different levels of controls for compliance, especially geo compliance and statistics and analysis on that stuff, I'm not sure if the compliance stuff would technically be considered security, but our customers look at it that way, and we focus on it that way, too. So there's some early work and early discussions going on in that space as well. Piracy.

但在流媒體方面，隱私保護和提供不同級別的合規性控制，尤其是地理合規性以及對這些東西的統計和分析，我不確定合規性的東西在技術上是否會被認為是安全的，但我們的客戶認為方式，我們也以這種方式關注它。因此，該領域也進行了一些早期工作和早期討論。海盜行為。

Got it. And then as we just think about the rollout of the new pricing and packaging and some of the more, I guess, I don't want to develop a product-led growth initiative, how should we think about the mix of SMB versus enterprise? I know you didn't necessarily reference a number as where you're at today, but it would be great to get a better understanding of just kind of where you're at today and where you expect the business to go long term?

知道了。然後，當我們考慮新定價和包裝的推出時，我想，我不想制定以產品為主導的增長計劃，我們應該如何考慮 SMB 與企業的組合？我知道您不一定會引用一個數字來表示您今天所處的位置，但是如果能更好地了解您今天所處的位置以及您期望業務長期發展的位置會很棒嗎？

Yes. No, it's a great question. And today, our business is largely, I think, what anyone would refer to as enterprise base. With the real enterprise sales motion, a high-touch sales motion with not just an account executive and sales team but a customer success team as well. And that's been very successful for us.

是的。不，這是一個很好的問題。今天，我認為，我們的業務在很大程度上是任何人都稱之為企業基地的東西。通過真正的企業銷售動議，高接觸銷售動議不僅涉及客戶主管和銷售團隊，還涉及客戶成功團隊。這對我們來說非常成功。

And right now, when we look at how we think about product assisted sales motion, product-led sales motion product line growth, our first step is really focusing on the product assisted enterprise sales motion. So that's our first step, and we've made some amazing strides here with full automation and sort of full of free trial management for our sales team, new types of visibility, new types of visibility for our customers and sales folks around entitlements and service billing, et cetera. That's been helping us lower the friction of that sales motion again.

現在，當我們審視我們如何看待產品輔助銷售活動、以產品為主導的銷售活動產品線增長時，我們的第一步實際上是關注產品輔助企業銷售活動。所以這是我們的第一步，我們在這裡取得了一些驚人的進步，完全自動化和對我們的銷售團隊的完全免費試用管理，新型可見性，我們的客戶和銷售人員圍繞權利和服務的新型可見性計費等。這一直在幫助我們再次降低銷售動議的摩擦。

All of that work will apply to a pure kind of product-led growth motion in the future that will I think help us attract and really lower the friction for smaller customers on board, and really thinking about the true developer community, student community to get more and more comfortable with our platform, especially our compute platform earlier and earlier on in the cycle.

所有這些工作都將在未來應用於一種純粹的以產品為導向的增長運動，我認為這將有助於我們吸引並真正減少船上較小客戶的摩擦，並真正考慮真正的開發者社區、學生社區以獲得對我們的平台越來越滿意，尤其是我們在周期中越來越早的計算平台。

I think it's a little bit help for us. To be really honest, we're focused on product supported enterprise sales motion this year. And next year, I think we'll be starting to look at the pure PLG motion.

我認為這對我們有一點幫助。老實說，今年我們專注於產品支持的企業銷售活動。明年，我想我們將開始研究純 PLG 運動。

Next question comes from Will Power from Baird.

下一個問題來自 Baird 的 Will Power。

Okay. Great. I guess maybe, Todd, maybe sticking with the security theme for just a second. I'd love to get the latest thoughts on your Next-Generation WAF. Maybe just if you could help remind us what some of the key differentiators are there, what the trend lines look like? And then I guess the other element that I'm not sure we've touched on much on the product side as servability. Maybe just any kind of update on trends you're seeing on that front.

好的。偉大的。我想也許，托德，也許只停留一秒鐘的安全主題。我很想了解有關您的下一代 WAF 的最新想法。也許只是如果你能幫助提醒我們有哪些關鍵的差異化因素，趨勢線是什麼樣的？然後我想另一個我不確定的元素是我們在產品方面已經觸及很多的可維護性。也許只是您在這方面看到的趨勢的任何更新。

Sure. Yes, Next-Gen WAF really the, I think it's the crown jewel of our security portfolio. And in so many ways, it's the most important part of application security stack. The Next-Gen WAF technology passing comes from the Signal Sciences acquisition. It's a remarkable market-leading technology. And the real differentiation is accuracy. And we see it in the market every day. An enormous percentage, almost 90% of our customers run our Next-Gen WAF in full blocking mode, which means that the trust and the faith that the accuracy is going to be so solid that they won't be [Fastly] blocking their users and customers but instead blocking attacks and malicious usage only.

當然。是的，下一代 WAF 真的是，我認為它是我們安全產品組合中的皇冠上的明珠。在很多方面，它是應用程序安全堆棧中最重要的部分。下一代 WAF 技術的通過來自對 Signal Sciences 的收購。這是一項卓越的市場領先技術。真正的區別在於準確性。我們每天都在市場上看到它。很大一部分客戶，幾乎 90% 的客戶在完全阻塞模式下運行我們的下一代 WAF，這意味著他們對準確性的信任和信念將如此穩固，以至於他們不會 [快速] 阻塞他們的用戶和客戶，而是僅阻止攻擊和惡意使用。

And that differentiation is just enormously important. It's the #1 thing that I found myself talking to customers about it at RSA this year. And really, I think it is the crown jewel of our security portfolio. We're incredibly proud of it. That Single Science technology, it's remarkable. It really is.

這種差異化非常重要。這是今年我發現自己在 RSA 上與客戶談論的第一件事。實際上，我認為它是我們安全產品組合中的皇冠上的明珠。我們為此感到無比自豪。那單科技術，很了不起。確實如此。

On the observability front, it's very early days, but we've seen some really interesting kind of early customer use cases. We are deeply focused on this Compute@Edge observability. We're not looking to compete in the complete kind of FSO full factorial space, but instead really focus on edge observability and the ability to give the signals, the kind of rolled-up and analyzed log content that's needed for people who are running a full stack observability solution and building the most resilient, most reliable applications and websites in the world to get this new type of sort of observability right from the edge as close to the users as possible. So they can be tracking not just reachability of their users, but the performance that those users are experiencing.

在可觀察性方面，現在還很早，但我們已經看到了一些非常有趣的早期客戶用例。我們非常關注這種 Compute@Edge 的可觀察性。我們不希望在完整類型的 FSO 全階乘空間中競爭，而是真正關注邊緣可觀察性和發出信號的能力，即運行人員所需的匯總和分析日誌內容全棧可觀察性解決方案，並構建世界上最具彈性、最可靠的應用程序和網站，以從盡可能靠近用戶的邊緣獲得這種新型可觀察性。因此，他們不僅可以跟踪用戶的可達性，還可以跟踪這些用戶的體驗。

We're starting to get some really early traction. I'd love to get the question a quarter or 2 from now, and I think we'll know a little bit more. It's very early days for us.

我們開始獲得一些真正早期的牽引力。我很想在一兩個季度後回答這個問題，我想我們會知道更多。這對我們來說還為時尚早。

Our last question will come from Jeff Van Rhee from Craig-Hallum.

我們的最後一個問題將來自 Craig-Hallum 的 Jeff Van Rhee。

This is Daniel Hibshman on for Jeff. Just on the channels and the push to the channels, anything that we can quantify there in terms of the goals, either in terms of number of channel partner as a percent of revenue? Or just what would be success in terms of the channel push?

這是 Jeff 的 Daniel Hibshman。就渠道和對渠道的推動而言，我們可以根據目標量化任何東西，或者根據渠道合作夥伴的數量佔收入的百分比？或者就渠道推送而言，什麼才是成功的？

That's a great question. We aren't disclosing our data slice by channel and not channel, but I'd be happy to give you some thoughts in terms of internal goals that I'd like to see. I believe in the fullest of time we should be seeing 50% or more of our total business going through the channel, both the reseller of our service provider managed service channel as well as our cloud marketplace channels.

這是一個很好的問題。我們不會按渠道而不是渠道披露我們的數據切片，但我很樂意就我希望看到的內部目標向您提供一些想法。我相信在最充分的時間內，我們應該看到我們總業務的 50% 或更多通過該渠道，包括我們的服務提供商託管服務渠道的經銷商以及我們的雲市場渠道。

And I think that would show a healthy, a really healthy vibrant partner community, which largely will not just help us reach more customers but also help our customers onboard this technology more easily.

我認為這將展示一個健康的、真正健康的、充滿活力的合作夥伴社區，這在很大程度上不僅會幫助我們吸引更多的客戶，還會幫助我們的客戶更輕鬆地使用這項技術。

A big part of the goal here is that the software expertise at those systems integrators shops can be brought to bear to help integrate faster technology and leverage the power fast faster and more effectively, lower the barrier to entry and increase the speed of adoption.

這裡目標的很大一部分是可以利用這些系統集成商商店的軟件專業知識來幫助集成更快的技術並更快、更有效地利用強大的功能，降低進入門檻並提高采用速度。

And I think at 50%, we would be in a position where we'd really be seeing the expertise of those systems integrators, being brought to bear enough that it would be worth their investment. And that's a big part of it for us is making sure that this is -- that our partner program is profitable enough for those trusted partners that they want to invest and that it makes sense for them. And for me, that's kind of -- that's what success would look like.

我認為在 50% 時，我們將真正看到這些系統集成商的專業知識，並承擔足夠的責任，這將值得他們的投資。對我們來說，其中很大一部分是確保這是 - 我們的合作夥伴計劃對於他們想要投資的那些值得信賴的合作夥伴來說足夠有利可圖，並且對他們來說有意義。對我來說，這有點——這就是成功的樣子。

And then just one more for me. Any thoughts on the trend line in terms of the customer adds in the next several quarters, that's been trending in a decelerating pattern. Just looking at the pipe, how are you guys thinking about customer adds over the next year or so?

然後再給我一個。任何關於未來幾個季度客戶增加趨勢線的想法，都呈減速趨勢。看看管道，你們如何看待未來一年左右的客戶增加？

Yes. I track that very closely. So I appreciate that question. I think we have a lot of opportunity to tune the motion here to be access in an area where we can improve. The registration of the partner is a huge part of it, and that's why we're really focused there. I think our partner to me has a huge opportunity to contribute on that sort of bringing customers to the platform.

是的。我非常密切地跟踪。所以我很欣賞這個問題。我認為我們有很多機會調整這裡的議案，以便進入我們可以改進的領域。合作夥伴的註冊是其中很大一部分，這就是我們真正專注於此的原因。我認為我們的合作夥伴對我來說有很大的機會為將客戶帶到平台做出貢獻。

Lowering the friction of the onboarding motion with what we talked about in terms of optimizing and lowering the friction on free trials we believe we can bring smaller customers more efficiently in the platform to do that. And of course, deeply focused on demand gen, like I mentioned, on the RSA event, et cetera. I think that I see the trend you see, and I believe we can turn that around. So we're going to be super focused on it in the next year.

通過我們在優化和降低免費試用方面的摩擦來降低入職運動的摩擦，我們相信我們可以在平台中更有效地吸引較小的客戶來做到這一點。當然，就像我提到的那樣，深入關注 RSA 事件等方面的需求生成。我想我看到了你看到的趨勢，我相信我們可以扭轉這種局面。所以明年我們將非常關注它。

We have no further questions. I would like to turn the call back over to Todd Nightingale for closing remarks.

我們沒有其他問題了。我想將電話轉回 Todd Nightingale 以作結束語。

Amazing. Thanks so much. Before we close the call, I do want to take this opportunity to thank our employees, our customers, our partners and of course, our investors. We remain as committed as ever to make the Internet a better place where all experiences are fast, safe and engaging. Moving forward, we remain focused on execution, bringing lasting growth to our business and delivering value to our shareholders. Thank you all so much for the time today. Thank you.

驚人的。非常感謝。在我們結束電話會議之前，我想藉此機會感謝我們的員工、我們的客戶、我們的合作夥伴，當然還有我們的投資者。我們一如既往地致力於讓互聯網成為一個更美好的地方，讓所有體驗都快速、安全和引人入勝。展望未來，我們將繼續專注於執行，為我們的業務帶來持久的增長，並為我們的股東創造價值。非常感謝大家今天抽出時間來。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。