Fastly Inc (FSLY) 2023 Q2 法說會逐字稿

Hello, good afternoon. My name is Jeremy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fastly's Second Quarter 2023 Earnings Conference Call. (Operator Instructions) I'd now like to turn the conference over to Vernon Essi, Investor Relations and Fastly. Please go ahead.

你好，下午好。我叫傑里米，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Fastly 2023 年第二季度收益電話會議。 （操作員說明）我現在想將會議轉交給投資者關係部和 Fastly 的 Vernon Essi。請繼續。

Thank you, and welcome, everyone, to our Second Quarter 2023 Earnings Conference Call. We have Fastly's CEO, Todd Nightingale and CFO, Ron Kisling, with us today. The 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 and referencing conference ID number 754-3239 shortly after the conclusion of today's call.

謝謝並歡迎大家參加我們的 2023 年第二季度收益電話會議。今天，Fastly 的首席執行官托德·南丁格爾 (Todd Nightingale) 和首席財務官羅恩·基斯林 (Ron Kisling) 與我們一起。本次電話會議的網絡直播可通過我們的網站 fastly.com 訪問，並將存檔 1 年。此外，在今天的電話會議結束後不久，您可以撥打 800-770-2030 並輸入會議 ID 號碼 754-3239 來重播。

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. 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.

今天的收益新聞稿、相關財務表格和投資者補充資料的副本都包含在我們今天的 8-K 文件中，可以在 Fastly 網站的投資者關係部分找到。在本次電話會議中，我們將做出前瞻性陳述，包括與我們的業務預期業績、未來財務業績、產品銷售、戰略、長期增長和總體未來前景相關的陳述。

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. For 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 second quarter 2023 earnings release and supplement for a discussion of the factors that could cause our results to differ.

這些陳述受到已知和未知的風險、不確定性和假設的影響，可能導致實際結果與電話會議期間預測或暗示的結果存在重大差異。有關我們業務風險因素的更多信息，請參閱我們最近向SEC 提交的10-K 表格和10-Q 表格以及我們的2023 年第二季度收益發布和補充材料，以討論可能導致我們的業績出現變化的因素。不同。

Please refer in particular to the sections entitled Risk Factors. We encourage you to read these documents. 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. 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.

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件。另請注意，本次電話會議的前瞻性陳述基於截至今天為止我們掌握的信息。除法律要求外，我們不承擔更新任何前瞻性陳述的義務。此外，在本次電話會議中，我們還將討論某些非公認會計準則財務指標。除非另有說明，我們今天討論的除收入之外的所有數字都將基於調整後的非公認會計準則基礎。

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.

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公認會計準則財務指標的調節。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。

Before we begin our prepared comments, please note that we will be attending 2 conferences in the third quarter, the KeyBanc Technology Leadership Forum in Vail, Colorado on August 7 and the Piper Sandler Growth Frontiers conference in Nashville, Tennessee on September 13.

在我們開始準備評論之前，請注意，我們將在第三季度參加2 場會議，即8 月7 日在科羅拉多州韋爾舉行的KeyBanc 技術領導力論壇和9 月13 日在田納西州納什維爾舉行的Piper Sandler 增長前沿會議。

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

這樣，我會將電話轉給托德。托德？

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

謝謝，弗恩。大家好，非常感謝您今天加入我們。首先，我將快速總結我們的財務業績和第二季度的亮點，然後我將簡要介紹我們的產品戰略和上市動議方面取得的進展，然後再將電話轉交給羅恩討論第二季度財務業績和指導的詳細信息。

We reported second quarter revenue of $122.8 million, which grew 20% year-over-year and 4% quarter-over-quarter. This represents a significant increase in our year-over-year growth rate of 15% last quarter. I'm glad to see new enterprise customers draw on the fastest platform and a growing momentum within our go-to-market teams. I'm pleased that we exceeded our guidance range as we saw upside during the quarter from some of our larger customers and expect to see that strength carry into the rest of 2023.

我們報告第二季度收入為 1.228 億美元，同比增長 20%，環比增長 4%。這意味著我們上季度的同比增長率為 15%，顯著提高。我很高興看到新的企業客戶利用最快的平台以及我們的市場推廣團隊不斷增長的勢頭。我很高興我們超出了我們的指導範圍，因為我們在本季度看到了一些較大客戶的增長，並預計這種優勢將延續到 2023 年剩餘時間。

I'd like to congratulate the Fastly team and pulling together new initiatives in our go-to-market strategy and delivering a strong Q2. I look forward to executing to and possibly exceeding plan for the remainder of 2023.

我要祝賀 Fastly 團隊，他們在我們的上市戰略中整合了新舉措，並在第二季度取得了強勁的業績。我期待在 2023 年剩餘時間內執行並可能超出計劃。

Our customer retention and growth engine remains strong. Our LTM NRR was 116% in the second quarter, flat from Q1 and slightly down from 117% in the year ago quarter. Our DBNER was 123% in the second quarter, up from 121% in Q1 and also from 120% in Q2 of last year.

我們的客戶保留和增長引擎仍然強勁。我們第二季度的 LTM NRR 為 116%，與第一季度持平，略低於去年同期的 117%。第二季度我們的 DBNER 為 123%，高於第一季度的 121%，也高於去年第二季度的 120%。

Both of these metrics are indicative of healthy wallet share gains with existing customers. Thanks to our platform's expansion, we continue to cross-sell more functionality and more traffic to our existing customers. Our total customer count in the second quarter was 3,072, which decreased by 28 customers compared to Q1 but increased 47 year-over-year.

這兩個指標都表明現有客戶的錢包份額得到了健康的增長。由於我們平台的擴展，我們繼續向現有客戶交叉銷售更多功能和更多流量。第二季度我們的客戶總數為 3,072 家，比第一季度減少 28 家，但同比增加 47 家。

About 1/3 of this quarter-over-quarter decline was due to customer consolidations. It's also worth noting that most of these customers were relatively small in ARR. We did see good momentum in enterprise customers totaling 551 in the quarter, an increase from 11 from Q1 and 52 year-over-year.

本季度環比下降的約 1/3 是由於客戶整合造成的。還值得注意的是，這些客戶中的大多數的 ARR 相對較小。我們確實看到了本季度企業客戶總數 551 家的良好勢頭，比第一季度的 11 家和去年同期的 52 家有所增加。

Our average enterprise customer spend was $818,000, representing a 3% quarter-over-quarter increase as well as a 10% increase from Q2 of last year. We've seen continued wallet share expansion with customers as we've aligned our teams to be more focused on customer success and expansion.

我們的企業客戶平均支出為 818,000 美元，環比增長 3%，比去年第二季度增長 10%。我們已經看到客戶的錢包份額持續擴大，因為我們調整了我們的團隊，更加關注客戶的成功和擴張。

Our portfolio expansion strategy continues to yield strong cross-selling activity. We've seen strength in security, our growth product line, especially in Next-Gen WAF technology, augmenting our core network services offerings. This has been especially true as our Edge WAF has reached feature parity and are now easier than ever to enable for existing Fastly and CDN customers.

我們的投資組合擴張策略繼續產生強勁的交叉銷售活動。我們看到了安全方面的實力、我們不斷增長的產品線，尤其是下一代 WAF 技術，增強了我們的核心網絡服務產品。尤其如此，因為我們的 Edge WAF 已經達到了同等功能，並且現在比以往任何時候都更容易為現有的 Fastly 和 CDN 客戶啟用。

In WAF, we've seen both upsell success and new logo wins as stand-alone sales. We've also seen good momentum in our incubation businesses, compute and observability. We saw success in the second quarter in selling existing customers computed edge and observability modules. I'm excited to share some important new strategic wins and key expansion verticals for us.

在 WAF 中，我們看到追加銷售的成功和新徽標作為獨立銷售的成功。我們在孵化業務、計算和可觀察性方面也看到了良好的勢頭。我們在第二季度看到了向現有客戶銷售計算邊緣和可觀測性模塊的成功。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展。

We saw our first win at Abercrombie & Fitch, a well-established brand with an innovative focus on omnichannel selling. I'm really proud of our team here, unseating an incumbent in a very competitive win and leveraging our new packaging model. You can refer to June's press release here for more information.

我們在 Abercrombie & Fitch 取得了第一場胜利，這是一個專注於全渠道銷售創新的知名品牌。我為我們的團隊感到非常自豪，他們在一場極具競爭力的勝利中取代了現任者，並利用了我們新的包裝模式。您可以在此處參閱 June 的新聞稿以了解更多信息。

It's also worth noting that this is one of several new logo wins in the retail vertical. During the quarter, we closed 9 new retail customers, many of them enhancing their digital experience closely tied to their brick-and-mortar presence. They include luxury brands like David Yurman and (inaudible), major European home improvement chain Hornbach and specialized woodworking supplier Rockler.

還值得注意的是，這是零售垂直領域的幾個新標誌勝利之一。本季度，我們關閉了 9 個新零售客戶，其中許多客戶增強了與其實體業務密切相關的數字體驗。其中包括 David Yurman 和（聽不清）等奢侈品牌、歐洲主要家居裝修連鎖店 Hornbach 和專業木工供應商 Rockler。

We also extended our travel and leisure presence with the addition of Valley's Interactive. We also saw great interest from hi-tech, closing 9 new logos in the developer tooling and cybersecurity categories during the quarter. including Bugcrowd, a crowd-sourced ML matching cybersecurity platform.

我們還通過收購 Valley's Interactive 擴大了我們的旅遊和休閒業務。我們還看到了高科技行業的濃厚興趣，本季度在開發人員工具和網絡安全類別中關閉了 9 個新徽標。包括 Bugcrowd，一個眾包的 ML 匹配網絡安全平台。

Our media vertical continues to expand with the addition of Bonnier News, serving the Nordic region as well as Tango, a live streaming social media platform. You can refer to our investor supplement for more information.

隨著服務北歐地區的 Bonnier News 以及實時流媒體社交媒體平台 Tango 的加入，我們的媒體垂直領域繼續擴大。您可以參閱我們的投資者補充資料以獲取更多信息。

Our gross margin was 56.6% for the second quarter, representing a 100 basis point expansion quarter-over-quarter and a 620 basis increase year-over-year. I'm incredibly pleased with this result as our continued efforts to work rigorously on our cost of revenue and fixed cost footprint are yielding real results.

第二季度毛利率為 56.6%，環比增長 100 個基點，同比增長 620 個基點。我對這一結果感到非常滿意，因為我們持續努力嚴格控制收入成本和固定成本足跡，正在取得實際成果。

Our operating expenses were $77 million in the quarter, coming in lower than anticipated by approximately $6 million. While our rigorous cost controls drove about half of this decline, the other half was due to the timing of marketing expenses and an increase in capitalization of internally software.

本季度我們的運營費用為 7700 萬美元，比預期低約 600 萬美元。雖然我們嚴格的成本控制推動了這一下降的大約一半，但另一半是由於營銷費用的時機和內部軟件資本的增加。

Also, please recall that we took a $3.4 million benefit in G&A due to a tax refund that won't occur in future quarters. Ron will explain in more detail, but as you can see from our guidance, 2023 spending is favorable, and we are now looking to improve on our prior 10% operating loss target for the year.

另外，請記住，由於未來幾個季度不會發生退稅，我們在 G&A 中獲得了 340 萬美元的收益。 Ron 將進行更詳細的解釋，但正如您從我們的指導中看到的那樣，2023 年的支出是有利的，我們現在正在尋求改善之前的 10% 營業虧損目標。

During the quarter, our durable innovation engine continued to deliver new developments to our feature set. There were several new technology releases, you can see in our supplement, such as -- in the second quarter, we released support for Mutual TLS, bidirectional authentication for our customers' origin. This trusted digital certificate feature will save time and resources around MTLS setup and management for our customers.

在本季度，我們持久的創新引擎繼續為我們的功能集帶來新的發展。您可以在我們的補充中看到一些新技術的發布，例如，在第二季度，我們發布了對相互 TLS 的支持，即對客戶來源的雙向身份驗證。這種受信任的數字證書功能將為我們的客戶節省有關 MTLS 設置和管理的時間和資源。

Focusing on the automation power of the Fastly platform, we released dynamic back end, enabling customers to create new back-end server definitions even more seamlessly. Our new core cash API allows developers to extend their code on our Edge Compute platform with access to our powerful globally distributed cash network. We're excited about the future launches in our Next-Gen WAF solution like advanced rate limiting and site flagging IP signal. This caps off a migration of our WAF security technology to our native edge platform.

專注於 Fastly 平台的自動化能力，我們發布了動態後端，使客戶能夠更加無縫地創建新的後端服務器定義。我們新的核心現金 API 允許開發人員在我們的邊緣計算平台上擴展他們的代碼，並訪問我們強大的全球分佈式現金網絡。我們對未來推出的下一代 WAF 解決方案（例如高級速率限制和站點標記 IP 信號）感到興奮。這使得我們的 WAF 安全技術遷移到我們的本地邊緣平台成為了最終的目標。

And lastly, we released into limited availability Certainly, which provides domain validated TLS certificates that are fully automated in our Fastly managed TLS services. This will enable trusted identification of websites for our customers, improving security and reliability. Expect to hear a lot more about this and website authentication capacity in the coming quarters.

最後，我們發布了有限可用性的 Coursely，它提供了經過域驗證的 TLS 證書，這些證書在我們的 Fastly 管理的 TLS 服務中完全自動化。這將為我們的客戶提供可信的網站識別，提高安全性和可靠性。預計在未來幾個季度會聽到更多有關此功能和網站身份驗證功能的信息。

Let me take a moment to discuss AI. We've gotten a lot of questions on this from the investor community, and I really like to share our thoughts. As we've indicated in the past, we'll be using our edge cloud to run inference for AI, and we would expect the generative learning models to be mostly running in the central cloud.

讓我花點時間討論一下人工智能。我們從投資者社區收到了很多關於此問題的問題，我真的很想分享我們的想法。正如我們過去所指出的，我們將使用邊緣雲來運行人工智能推理，並且我們預計生成學習模型主要在中央雲中運行。

We have engagement from customers across many industries grappling of how AI is going to affect them. What the risks are and what advantages they might be able to gain from this technology. In the case of e-commerce, we see very low latency and more personalized and more accurate recommendations coming from AI.

我們吸引了許多行業的客戶參與討論人工智能將如何影響他們。風險是什麼以及他們可以從這項技術中獲得什麼優勢。就電子商務而言，我們看到人工智能帶來了非常低的延遲以及更個性化和更準確的推薦。

For media and new media, we see sentiment, span language detection and toxicity analysis for user-generated content. Others might be interested more in computer vision, AI to help identify the cost and images uploaded by the users or even provide more friendly and smoother user experiences via speech recognition.

對於媒體和新媒體，我們看到了用戶生成內容的情緒、跨語言檢測和毒性分析。其他人可能對計算機視覺、人工智能更感興趣，以幫助識別成本和用戶上傳的圖像，甚至通過語音識別提供更友好、更流暢的用戶體驗。

We feel incredibly good about our position as a platform on which to build the next generation of user experiences via AI, experiences that are fast, safe and engaging.

我們對自己作為一個通過人工智能構建下一代用戶體驗的平台的地位感到非常滿意，這些體驗是快速、安全和引人入勝的。

Moving on to our go-to-market development. I'm excited to share with you that during the quarter, we introduced our new pricing and packages to Fastly's portfolio, including flat rate pricing and tiered packages, making it easier for customers of all sizes to try buy and use Fastly's platform.

繼續我們的市場開發。我很高興與您分享，在本季度，我們在Fastly 的產品組合中引入了新的定價和套餐，包括統一費率定價和分層套餐，使各種規模的客戶可以更輕鬆地嘗試購買和使用Fastly 的平台。

The reception from our customers has been incredibly favorable so far. Peter Alexander joined Fastly as our new CMO, bringing his expertise as CMO of Check Point and Harmonic as well as marketing leadership roles at Cisco. Peter is a passionate, creative expert in demand generation and shaping the voice of technology companies.

到目前為止，我們客戶的反響非常好。 Peter Alexander 加入 Fastly 擔任我們的新首席營銷官，帶來了他在 Check Point 和 Harmonic 首席營銷官以及思科營銷領導職務方面的專業知識。 Peter 是一位充滿熱情、富有創造力的需求生成和塑造科技公司聲音方面的專家。

Marshal Erwin joined Fastly as our CISO, bringing this expertise from Mozilla as their CSO in addition to roles in the U.S. intelligence community. And Karen Greenstein was promoted to General Counsel. She joined Fastly in 2019 and has been serving as our interim GC.

Marshal Erwin 加入 Fastly 擔任我們的 CISO，除了在美國情報界擔任職務之外，還帶來了 Mozilla 的 CSO 專業知識。凱倫·格林斯坦 (Karen Greenstein) 晉升為總法律顧問。她於 2019 年加入 Fastly，並一直擔任我們的臨時 GC。

I'm incredibly excited about the evolution of our senior leadership team. I believe Peter, Marshal and Karen will bring enormous contributions to our business and driving durable innovation, a lower friction employee experience and most importantly, a huge focus on new logo acquisition and revenue growth.

我對我們高級領導團隊的發展感到非常興奮。我相信 Peter、Marshal 和 Karen 將為我們的業務帶來巨大貢獻，推動持久創新、降低員工摩擦體驗，最重要的是，大力關注新徽標的獲取和收入增長。

During the third quarter, I'm very excited to share with you that we'll be hosting our annual user conference, Altitude in New York on September 26. We will invite the investor community to join our webcast as customers share their experiences using Fastly's platform.

在第三季度，我很高興與您分享，我們將於 9 月 26 日在紐約舉辦年度用戶大會 Altitude。我們將邀請投資者社區加入我們的網絡廣播，客戶將分享他們使用 Fastly 的體驗平台。

On the financial front, we repurchased $236 million in aggregate principal amount of our convertible debt for $196 million, which reflected a 17% discount to par. This resulted in recording a $37 million net gain in the second quarter.

在財務方面，我們以 1.96 億美元回購了本金總額為 2.36 億美元的可轉換債務，較面值折讓 17%。這導致第二季度淨收益達到 3700 萬美元。

Our finance team is actively monitoring the capital markets for our liquidity needs while optimizing our cost of capital in an effort to give shareholders the best possible return.

我們的財務團隊積極監控資本市場的流動性需求，同時優化資本成本，努力為股東提供最佳回報。

And last but not least, we held our first ever Investor Day in late June at the New York Stock Exchange. I want to thank the New York Stock Exchange and all of you who joined us. We greatly appreciate the level of engagement you brought both in person and virtually to this milestone event. For those of you who may not have seen it, I encourage you to visit our IR website.

最後但並非最不重要的一點是，我們於六月底在紐約證券交易所舉辦了首個投資者日。我要感謝紐約證券交易所和所有加入我們的人。我們非常感謝您親自和虛擬地參與這一里程碑式的活動。對於那些可能還沒有看過的人，我鼓勵您訪問我們的 IR 網站。

Now let me take a moment to discuss the internal transformation taking place at Fastly. As I mentioned before, we've put in place structural changes to our processes and realigned our departmental teams into functional groups. We are seeing the positive outcomes this has brought to strategic initiatives and our financial results.

現在讓我花點時間討論一下 Fastly 正在發生的內部轉型。正如我之前提到的，我們對流程進行了結構性變革，並將部門團隊重新調整為職能小組。我們看到這給戰略舉措和我們的財務業績帶來了積極成果。

So far, I'm pleased with the progress we're making in 2023, and this is reflected in our updated projections for the year. We raised our annual guidance for both revenue and operating loss and we'll strive 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，這也反映在我們今年的更新預測中。我們提高了對收入和營業虧損的年度指導，我們將努力尋找方法，通過強勁的創新速度、戰略性地降低我們進入市場的摩擦並簡化我們的員工體驗來超越該指導。

Longer term, I believe, following our vision of the best end-user experience will guide us to where those market needs intersect with the edge cloud. And there is an enormous opportunity within that intersection. As we simplify our offering and make it easier to deploy amazing web technology around the world, we will find new customers.

從長遠來看，我相信，遵循我們對最佳最終用戶體驗的願景將引導我們找到這些市場需求與邊緣雲的交叉點。這個交叉點蘊藏著巨大的機遇。隨著我們簡化我們的產品並使在世界各地部署令人驚嘆的網絡技術變得更加容易，我們將找到新客戶。

As we drive to reach a larger segment of the mid-market, to acquire customers at a faster rate with a motivated empower channel and to bring the best talent from across the cloud community to Fastly, we will be monetizing the edge cloud and providing favorable impactful returns to our shareholders.

隨著我們努力進入更大的中端市場，通過積極的授權渠道以更快的速度獲取客戶，並將雲社區中最優秀的人才引入Fastly，我們將通過邊緣雲實現貨幣化，並提供有利的服務為我們的股東帶來有影響力的回報。

Our customers have a real passion for Fastly's 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.

我們的客戶對 Fastly 的解決方案充滿熱情，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、安全且引人入勝。

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 around the world and Fastly will have a significant impact on the way digital experiences are built and delivered.

最後，我要說的是我對未來的道路感到多麼興奮。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世界各地幾乎每個組織的成功，而 Fastly 將對數字體驗的構建和交付方式產生重大影響。

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

現在，為了討論本季度的財務細節和指導，我將把電話轉給羅恩。羅恩？

Thank you, Todd, and thanks, everyone, for joining us today. I'll discuss our business metrics and financial results and then review our forward guidance. Note that unless otherwise stated, all financial results in my discussion 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業績，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不基於公認會計準則。

Total revenue for the second quarter increased 20% year-over-year to $122.8 million, exceeding the top end of our guidance of $117 million to $120 million. Revenue from Signal Sciences products was 14% of revenue, a 32% year-over-year increase or a 27% increase, excluding the impact of purchase price adjustments related to deferred revenue.

第二季度總收入同比增長 20%，達到 1.228 億美元，超出了我們指導上限 1.17 億美元至 1.2 億美元。信號科學產品收入佔收入的14%，同比增長32%，若剔除與遞延收入相關的採購價格調整的影響，則增長27%。

Also, note that we calculate growth rates off of the actual results with the percentage of revenue rounded to the nearest total percent. As Todd shared, in the second quarter, we saw traffic expansion in major customers as well as strong upsell and cross-selling activity. This led to a better than typical seasonal growth pattern in the second quarter relative to the first, which is usually relatively flat sequentially.

另請注意，我們根據實際結果計算增長率，並將收入百分比四捨五入到最接近的總百分比。正如托德分享的那樣，在第二季度，我們看到主要客戶的流量增長以及強勁的追加銷售和交叉銷售活動。這導致第二季度的季節性增長模式優於第一季度，而第一季度通常相對持平。

We have a number of initiatives focused on increasing demand generation, motions to simplify our pricing and packaging, partnership programs and marketing activities that give us confidence in our 2023 revenue guidance. Our trailing 12-month net retention rate was 116%, flat with the prior quarter and slightly lower than the 117% in the year ago quarter.

我們採取了許多旨在增加需求的舉措、簡化定價和包裝的動議、合作夥伴計劃和營銷活動，這些舉措讓我們對 2023 年的收入指導充滿信心。我們過去 12 個月的淨保留率為 116%，與上一季度持平，略低於去年同期的 117%。

We continue to experience very low churn and our customer retention dynamics remain strong. As Todd shared, we had 3,072 customers at the end of Q2, of which 551 were classified as enterprise, an increase of 11 compared to an increase of 7 in the first quarter.

我們的客戶流失率仍然非常低，並且我們的客戶保留動力仍然強勁。正如托德分享的那樣，截至第二季度末，我們擁有 3,072 家客戶，其中 551 家屬於企業客戶，比第一季度增加 7 家增加了 11 家。

Enterprise customers accounted for 92% of total revenue on an annualized basis, up from 91% in Q1. Our enterprise customer average spend was $818,000, up 3% from $795,000 in the previous quarter and up 10% from $742,000 compared to Q2 of last year.

按年化計算，企業客戶佔總收入的 92%，高於第一季度的 91%。我們的企業客戶平均支出為 818,000 美元，比上一季度的 795,000 美元增長 3%，比去年第二季度的 742,000 美元增長 10%。

Our top 10 customers comprised 37% of our total revenues in the second quarter, an increase from the 35% contribution in Q1 2023. Let me take a moment to discuss our RPO, or remaining performance obligations. Our RPO reflects future committed revenue from current customer contracts and deferred revenue. As we augment our primarily consumption-based revenue model with predictable revenue packages, we anticipate our RPO will become more meaningful to the investor community.

我們的十大客戶佔第二季度總收入的 37%，比 2023 年第一季度的 35% 有所增加。讓我花點時間討論一下我們的 RPO（剩餘履約義務）。我們的 RPO 反映了當前客戶合同的未來承諾收入和遞延收入。隨著我們通過可預測的收入方案增強主要基於消費的收入模式，我們預計我們的 RPO 對投資者群體將變得更有意義。

Also, our RPO will fluctuate on a quarter-to-quarter basis due to the timing and the seasonality of customer contract renewals. So looking at the year-over-year change is a meaningful way to evaluate the changes in our RPO.

此外，由於客戶合同續籤的時間和季節性，我們的 RPO 將按季度波動。因此，查看同比變化是評估 RPO 變化的一種有意義的方式。

For the second quarter, our RPO was $231 million, down 5% from $242 million in the first quarter of 2023 and up 33% and from $173 million in the second quarter of 2022. I will now turn to the rest of our financial results for the second quarter.

第二季度，我們的 RPO 為 2.31 億美元，比 2023 年第一季度的 2.42 億美元下降 5%，比 2022 年第二季度的 1.73 億美元增長 33%。我現在將轉向我們的其餘財務業績第二季度。

Our gross margin was 56.6% for the second quarter compared to 55.6% in the first quarter of 2023. As Todd discussed, we are seeing the results from our continuing efforts to manage our cost of revenue and fixed cost footprint. Operating expenses were $77.3 million in the second quarter, a 2% decline compared to Q2 2022 and down 3% sequentially from the first quarter.

我們第二季度的毛利率為 56.6%，而 2023 年第一季度為 55.6%。正如托德所討論的，我們看到了我們不斷努力管理收入成本和固定成本足跡所取得的成果。第二季度運營費用為 7730 萬美元，比 2022 年第二季度下降 2%，比第一季度連續下降 3%。

This reflects the favorable impact of a $3.4 million sales and use tax refund we discussed on our Q1 call as well as approximately $6 million in favorability in operating expenses relative to our expectations. About half of this was due to expense control measures with the remainder due to the timing of marketing expenses, where we see certain programs and related costs moving to the second half from the first half and an increase in the capitalization of internal use software.

這反映了我們在第一季度電話會議上討論的 340 萬美元銷售和使用稅退稅的有利影響，以及相對於我們預期的約 600 萬美元的運營費用優惠。其中大約一半是由於費用控制措施，其餘是由於營銷費用的時間安排，我們看到某些計劃和相關成本從上半年轉移到下半年，以及內部使用軟件資本化的增加。

This favorability, combined with revenue above the high end of our guidance, and better-than-expected gross margins resulted in an operating loss of $7.8 million, exceeding the high end of our operating loss guidance range of $18 million to $16 million. Our net loss in the second quarter was $4.6 million or a $0.04 loss per basic and diluted share compared to a net loss of $28 million and a $0.23 loss per basic and diluted share in Q2 2022.

這種優惠，加上高於我們指導上限的收入以及好於預期的毛利率，導致運營虧損 780 萬美元，超出了我們運營虧損指導範圍上限 1800 萬美元至 1600 萬美元。我們第二季度的淨虧損為 460 萬美元，即每股基本股和稀釋股虧損 0.04 美元，而 2022 年第二季度的淨虧損為 2800 萬美元，每股基本股和稀釋股虧損 0.23 美元。

I'm pleased to report that our adjusted EBITDA turned positive in the second quarter, coming in at $5.2 million compared to negative $16 million in Q2 2022.

我很高興地報告，我們的調整後 EBITDA 在第二季度轉正，達到 520 萬美元，而 2022 年第二季度為負 1600 萬美元。

Turning to the balance sheet. We ended the quarter with approximately $475 million in cash, cash equivalents, marketable securities and investments including those classified as long term. During the quarter, we repurchased $236 million in aggregate principal amount of convertible debt for $196 million which reflected a 17% discount to par value and resulted in our recording a $37 million GAAP net gain.

轉向資產負債表。本季度末，我們擁有約 4.75 億美元的現金、現金等價物、有價證券和投資，包括長期投資。在本季度，我們以 1.96 億美元的價格回購了總本金額為 2.36 億美元的可轉換債務，這反映了面值 17% 的折扣，並導致我們錄得 3700 萬美元的 GAAP 淨收益。

We will continue to monitor the capital markets and are focused on improving our liquidity and cost of capital, and we'll continue to evaluate buybacks of our convertible debt at appropriate discount levels. Our free cash flow for the second quarter was positive $7.8 million, a $33 million sequential increase from negative $25.2 million in the first quarter. This improvement was primarily driven by an improvement in working capital and expanded operating margins.

我們將繼續監控資本市場，並專注於改善我們的流動性和資本成本，我們將繼續以適當的折扣水平評估可轉換債券的回購。我們第二季度的自由現金流為正 780 萬美元，比第一季度的負 2520 萬美元增加了 3300 萬美元。這一改善主要是由於營運資本的改善和營業利潤率的擴大所致。

Our cash capital expenditures were approximately 9% of revenue in the second quarter above the high end of our outlook of capital expenditures of 6% to 8% of revenue for 2023. We expect quarterly cash capital expenditures to decline in the second half of 2023, and to be in line with our outlook for the full year. As a reminder, our cash capital expenditures include capitalized internal use software.

我們第二季度的現金資本支出約佔收入的 9%，高於我們對 2023 年資本支出佔收入 6% 至 8% 的預期上限。我們預計 2023 年下半年季度現金資本支出將下降，並與我們對全年的展望保持一致。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 third 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 年第三季度和全年的展望。我想再次提醒大家，以下陳述基於截至今天的當前預期，並包含前瞻性陳述。實際結果可能存在重大差異，我們不承擔將來更新這些前瞻性陳述的義務，除非法律要求。

Our third quarter and full year 2023 outlook reflects our continued ability to deliver strong top line growth via improved customer acquisition and upsell and cross-sell expansion in our existing customers, driven in part by new and enhanced products. Our revenue guidance is based on the visibility that we have today.

我們對2023 年第三季度和全年的展望反映了我們通過改進客戶獲取以及現有客戶的追加銷售和交叉銷售擴張，持續實現強勁營收增長的能力，這在一定程度上是由新產品和增強型產品推動的。我們的收入指導基於我們今天的可見性。

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

我們仍然預計今年的費用增長將落後於同比收入增長，並預計 2023 年的運營虧損將比 2022 年大幅改善。正如我們上季度所述，我們正在投資於進入市場的努力，因為作為我們收入增長計劃的一部分，我們將繼續擴大現有客戶並加速新客戶的獲取。

We will continue our investments in product 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 percent of revenue.

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有意義的機會，特別是在一般管理費用方面，並預計到2023 年我們的一般管理費用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, third quarter revenue experiences sequential growth that accelerates into the fourth quarter. For the third quarter, we expect revenue in the range of $125 million to $128 million representing 17% annual growth and 3% sequential growth at the midpoint. As we've discussed, we are managing our capacity for higher traffic and revenue expected in the second half of 2023.

從歷史上看，第三季度收入經歷連續增長，並在第四季度加速。對於第三季度，我們預計收入在 1.25 億美元至 1.28 億美元之間，年增長率為 17%，環比增長率中點為 3%。正如我們所討論的，我們正在管理我們的容量，以期在 2023 年下半年實現更高的流量和收入。

While we continue to be very disciplined in our network investment and cost of revenues, which contributed to our second quarter gross margins being approximately 100 basis points better than we initially expected, we have onboarded newer traffic patterns that have a modest adverse impact to our variable bandwidth cost. As a result, in the third quarter, we anticipate our gross margins will decline approximately 100 basis points relative to the second quarter, plus or minus 100 basis points. And we expect to see gross margin accretion in the fourth quarter of at least 150 basis points above Q2 levels.

雖然我們在網絡投資和收入成本方面繼續非常嚴格，這導致我們第二季度的毛利率比我們最初預期的高出約100 個基點，但我們採用了新的流量模式，這對我們的變量產生了適度的不利影響帶寬成本。因此，我們預計第三季度毛利率將較第二季度下降約100個基點，上下浮動100個基點。我們預計第四季度毛利率將比第二季度水平至少增加 150 個基點。

As we shared on our first quarter call, we saw some increase in price declines in the second quarter as a result of winning additional delivery traffic from a major customer. We expect our pricing trajectory to return to its normal trajectory in the second half of 2023. Normal reductions in our bandwidth cost and ongoing network optimization, combined with increasing traffic into our fixed cost base in the second half are expected to offset any pricing changes.

正如我們在第一季度電話會議上分享的那樣，由於從主要客戶那裡贏得了額外的送貨流量，我們看到第二季度的價格下降有所增加。我們預計我們的定價軌跡將在 2023 年下半年恢復到正常軌跡。帶寬成本的正常降低和持續的網絡優化，加上下半年固定成本基礎流量的增加，預計將抵消任何定價變化。

As we mentioned previously, our Q2 operating loss was approximately $6 million better than our earlier projections with half of this improvement due to the timing of marketing expenses and an increase in capitalization of internal use software. Our Q2 operating loss also reflected the expected benefit of $3.4 million from a sales and use tax refund.

正如我們之前提到的，我們第二季度的運營虧損比我們之前的預測好約 600 萬美元，其中一半的改善是由於營銷費用的時機和內部使用軟件資本化的增加。我們第二季度的運營虧損也反映了銷售和使用稅退稅帶來的 340 萬美元的預期收益。

For the third quarter, we will continue our cost control effort. However, we will see a reversal in both the marketing expense benefit and the nonrecurring sales and use tax benefit experienced in the second quarter. As a result, for the third quarter, we expect our non-GAAP operating loss to increase by $5 million to $7 million to a loss of $15 million to $13 million and a non-GAAP loss of $0.09 to $0.07 per share.

第三季度，我們將繼續努力控製成本。然而，我們將看到第二季度的營銷費用收益以及非經常性銷售和使用稅收益都出現逆轉。因此，我們預計第三季度的非 GAAP 運營虧損將增加 500 萬至 700 萬美元，達到虧損 1500 萬至 1300 萬美元，非 GAAP 每股虧損 0.09 至 0.07 美元。

Given these results and our working capital expectations, we also expect our free cash flow to be negative for the third quarter. For calendar year 2023, we are raising our revenue guidance or a range of $495 million to $505 million to a range of $500 million to $510 million. This increase represents 17% annual growth at the midpoint.

鑑於這些結果和我們的營運資本預期，我們還預計第三季度的自由現金流為負。對於 2023 日曆年，我們將收入指導範圍從 4.95 億美元至 5.05 億美元上調至 5 億美元至 5.1 億美元。這一增幅相當於年增長率中值 17%。

We expect our non-GAAP operating loss to improve to a range of $49 million to $43 million, reflecting an operating margin of negative 9% at the midpoint compared to an operating margin of negative 18% in 2022.

我們預計我們的非 GAAP 運營虧損將改善至 4900 萬美元至 4300 萬美元之間，反映出中點運營利潤率為負 9%，而 2022 年運營利潤率為負 18%。

We expect our non-GAAP net loss per share to remain at $0.27 to $0.21 per basic and diluted share, reflecting the improvement in our operating loss expectations, offset by lower interest income in the second half resulting from the $196 million spent on our convertible debt repurchase in the second quarter.

我們預計我們的非公認會計準則每股淨虧損將保持在每股基本股和稀釋股0.27 美元至0.21 美元之間，這反映了我們經營虧損預期的改善，但下半年因可轉換債務支出1.96 億美元而導致的利息收入下降所抵消第二季度回購。

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

在我們開始提問之前，我們要感謝您對 Fastly 的興趣和支持。操作員？

(Operator Instructions) Our first question comes from the line of James Fish.

（操作員說明）我們的第一個問題來自 James Fish。

A couple of questions for you guys. Just first, if I look at your net retention rates, it's nice to see that trailing 12 months stabilize, but you're about to come off some high numbers kind of next quarter. I guess what's given the confidence that we can see the number move higher?

有幾個問題要問你們。首先，如果我看一下你們的淨留存率，很高興看到過去 12 個月的情況穩定下來，但下個季度你們將出現一些較高的數字。我想是什麼讓我們有信心看到這個數字上升？

How should we think about net retention rates in the back half of the year, especially given you did shed some customers, what you did sound like you landed some increased traffic at one of your larger customers and Ron, can you help us understand the gross number of new adds this quarter as just trying to -- and quality underneath as it looked like new business was quite good here?

我們應該如何考慮下半年的淨保留率，特別是考慮到您確實流失了一些客戶，您所做的聽起來像是您為您的一位大客戶帶來了一些增加的流量，羅恩，您能幫助我們了解毛利率嗎？本季度新增加的數量只是嘗試——而質量卻看起來像是這裡的新業務相當不錯？

When we look at net retention rate, there is some organic growth in terms of usage of the platform, and that has a strong seasonal effect. But I think our biggest lever here and the reason we're seeing confidence from our teams in that retention rate is really about the cross-sell.

當我們觀察淨保留率時，平台的使用量出現了一些有機增長，並且具有很強的季節性效應。但我認為我們最大的槓桿以及我們看到團隊對保留率充滿信心的原因實際上是交叉銷售。

We've made a lot of progress with platform unification and simplifying that sales motion. More and more of our largest deals are platform wins, even on the new logo side, meaning multi-portfolio wins. And our cross-sell motion is just getting really I think, gaining a lot of momentum.

我們在平台統一和簡化銷售流程方面取得了很大進展。我們越來越多的最大交易都是平台勝利，甚至在新標識方面也是如此，這意味著多投資組合勝利。我認為，我們的交叉銷售行動正在變得真正，獲得了很大的動力。

And so that's, I think, really why we see confidence there on the net retention rate.

我認為，這就是我們對淨保留率充滿信心的真正原因。

And looking at total customers, I think, one, as you saw, our enterprise customers actually accelerated a little bit from plus 6% to plus 11%. When you look at the aggregate number of customers, if you exclude customers at the low end, we actually did see a net add.

看看客戶總數，我認為，第一，正如您所看到的，我們的企業客戶實際上略有加速，從+ 6％上升到+ 11％。當你查看客戶總數時，如果排除低端客戶，我們實際上確實看到了淨增加。

If you take customers under 1,000 ARR, you would have seen some increase in the total customer number on a quarter-on-quarter basis. So at the medium and high end, we're seeing good customer quality it adds.

如果您的客戶 ARR 低於 1,000，您會發現客戶總數環比有所增加。因此，在中高端市場，我們看到它增加了良好的客戶質量。

Got it. And Todd, maybe for you, sales incentives mainly have aligned for kind of new use cases today. But at the Analyst Day, we all talked about the big security opportunity, both as a spear for new logos and for expansion in the existing base.

知道了。托德，也許對您來說，銷售激勵主要針對當今的新用例。但在分析師日，我們都談到了巨大的安全機遇，既可以作為新標識的矛頭，也可以作為現有基地擴張的矛頭。

I guess what's going to be the differentiation and ability to replace your competitors and a lot of these overlapping and major customer accounts?

我想取代你的競爭對手以及許多重疊的主要客戶帳戶的差異化和能力是什麼？

And additionally, do you feel a need to potentially change sales incentives to align more with security cross-sell rather than new logos at all?

此外，您是否認為有必要改變銷售激勵措施，以更多地與安全交叉銷售而不是新徽標保持一致？

We are primarily focusing sales incentives around new logo growth, of course, total revenue growth, but new logo growth, especially when we look at (inaudible) or special incentives. The security cross-sell, I think, in a lot of ways, is -- it's a natural extension of the sales motion relationship, customers with whom we have a great relationship and really best-in-class offering, especially in Next-Gen WAF.

我們主要關注新標誌增長的銷售激勵，當然，總收入增長，但新標誌的增長，特別是當我們考慮（聽不清）或特殊激勵時。我認為，安全交叉銷售在很多方面都是——它是銷售動向關係的自然延伸，我們與客戶有著良好的關係，並且提供真正一流的產品，特別是在下一代領域WAF。

The -- I think the last piece to that puzzle is really completing the platform unification play. This past quarter, we saw future parity on our Edge WAP, or on Fastly platform Next-Gen WAF solution with the traditional SigSci solution, which is a big, big step in making that cross-sell smoother and the platform unification for management claim, which we hope to have in the market by the end of the year, we'll really, I think, complete that story. I'm not really anticipating that we're going to need special sales incentives around the cross-sell. I would expect new customer acquisition primarily.

我認為這個難題的最後一部分是真正完成平台統一遊戲。上個季度，我們看到了 Edge WAP 或 Fastly 平台下一代 WAF 解決方案與傳統 SigSci 解決方案的未來平價，這是使交叉銷售更加順暢和管理層聲明的平台統一的一大步，我們希望在今年年底前將其推向市場，我認為我們將真正完成這個故事。我並不是真的預計我們需要針對交叉銷售的特殊銷售激勵措施。我主要希望獲得新客戶。

Our next question comes from the line of Frank Louthan. Frank, are you there? You might be on mute?

我們的下一個問題來自弗蘭克·勞森（Frank Louthan）。弗蘭克，你在嗎？你可能處於靜音狀態？

Can you walk us through the status of the channel program, kind of when does that begin? And where are you seeing that there? And then maybe a little more details on your cross-sell efforts here with Signal Sciences and delivery, where are you on being able to roll that out with customers and with the response?

您能否向我們介紹一下該頻道計劃的狀態，大概什麼時候開始？你在哪裡看到的？然後也許是關於您在信號科學和交付方面的交叉銷售工作的更多細節，您在哪些方面能夠向客戶推出並獲得響應？

Yes. The channel program was launched I think, 2 quarters ago. And we've had, I think, a pretty good uptick. We're seeing significant increase in deal registration, which for me, is kind of the leading indicator here in terms of a healthy channel launch.

是的。我認為該頻道計劃是在兩個季度前啟動的。我認為我們已經有了相當好的增長。我們看到交易註冊量顯著增加，對我來說，這是渠道健康推出的領先指標。

And deal registration also drives new logo acquisition, which obviously is a huge focus of ours across the board. We've seen some really creative partnerships as well. Traditional systems integrators, especially on the security side, incredibly strong. but folks who actually embedded Fastly technology onto their platforms and have been able to resell it that way, like A10 that's been incredibly successful so far, too.

交易註冊也推動了新徽標的獲取，這顯然是我們全面關注的重點。我們也看到了一些非常有創意的合作夥伴關係。傳統的系統集成商，尤其是在安全方面，非常強大。但是那些真正將 Fastly 技術嵌入到他們的平台上並能夠以這種方式轉售的人，比如迄今為止也取得了令人難以置信的成功的 A10。

So -- right now, we're feeling pretty bullish about where the channel program lies. There's one interesting piece, which is the channel that we sort of have been incubating for the last year before the big channel launch started with the Signal Sciences business. And because of that, the Signal Sciences business had historically been primarily North American based. So our channel has a little bit more maturity in the -- in North America.

所以，現在，我們對頻道計劃的定位非常樂觀。有一個有趣的部分，這是我們去年在信號科學業務開始推出大型頻道之前一直在孵化的頻道。正因為如此，信號科學業務歷來主要位於北美。因此，我們的渠道在北美更加成熟。

We're working hard to build out a comparable channel in the EU, but certainly, it lags, and we see that. We're investing there. to make sure that we've got good channel coverage in at least both of those primary markets.

我們正在努力在歐盟建立一個類似的渠道，但當然，它是滯後的，我們也看到了這一點。我們在那裡投資。確保我們至少在這兩個主要市場都有良好的渠道覆蓋。

Great. And with that on the channel side, can you give us -- what sort of percentage of your sales came from channel in the quarter? Or where do you expect that to end up by year-end?

偉大的。在渠道方面，您能否告訴我們，本季度您的銷售額中來自渠道的百分比是多少？或者您預計到年底會怎樣？

Yes. So the channel launch, particularly the security side coming from Signal Sciences has been a heavily channel-led business. And that business, in the aggregate, was 13% in the quarter or 14% of revenue in the quarter.

是的。因此，渠道的推出，特別是來自 Signal Sciences 的安全方面，一直是一項很大程度上由渠道主導的業務。該業務總計佔本季度的 13%，即佔本季度收入的 14%。

The big piece of that is channel led. The channel delivery, which we've launched 2 months ago is we're starting to see some early traction. But in terms of a percentage, it's still a fairly nominal percentage at this point. We should start to see that ramp more in the second half and more of the business outside of Signal Sciences being sold through the channel partners.

其中很大一部分是渠道主導的。我們兩個月前推出的渠道交付已經開始看到一些早期的吸引力。但就百分比而言，目前它仍然是一個相當名義上的百分比。我們應該開始看到下半年增長更多，信號科學以外的更多業務通過渠道合作夥伴出售。

I try to highlight more of the channel deals and get the clearance to share more of that in the future. But it was nice to see, and I thought it mattered a handful of our biggest deals, some of the top 5 deals in the quarter went through the channel and were sourced there. And that means -- actually makes a big difference. Internally, it signals to our sales team that you can find success in the channel. And that helps us continue that momentum there.

我嘗試強調更多的渠道交易，並獲得許可在未來分享更多內容。但很高興看到這一點，我認為我們的一些最大的交易很重要，本季度排名前 5 的交易中有一些是通過該渠道並在那裡採購的。這意味著——實際上有很大的不同。在內部，它向我們的銷售團隊發出信號，表明您可以在該渠道中取得成功。這有助於我們繼續保持這一勢頭。

Our next question comes from the line of Sanjit Singh.

我們的下一個問題來自桑吉特·辛格。

Congrats on the quarter and regaining that 20% growth threshold. I want to get a sense of, Todd, from your perspective, as you guys sort of expand into new industries and you guys called out tech, how is the composition of traffic on the network changing?

恭喜本季度恢復 20% 的增長閾值。托德，我想從你的角度了解一下，當你們擴展到新行業並且你們呼籲科技時，網絡上的流量構成如何變化？

And does that have any sort of impact or mix effect on sort of your -- the gross margins that you expect that you still saw a lot this current quarter and what you sort of expect going forward?

這是否會對您預計本季度仍然看到很多的毛利率以及您對未來的預期產生任何影響或混合效應？

You know what, that is a really great question because we have some of that conversation internally. So the mix shift by vertical, it matters actually a lot when it comes to time of day loading. Our infrastructure tends to be highest -- under highest load in the evenings when people are streaming entertainment, most commonly.

你知道嗎，這是一個非常好的問題，因為我們內部進行了一些對話。因此，垂直方向的混合變化對於一天中的加載時間來說實際上非常重要。我們的基礎設施往往是最高的——最常見的是在晚上人們觀看流媒體娛樂時負載最高。

And so things like tech that tend to have a more balanced workload tends to be a good margin tailwind to us. And you can imagine other types of verticals that have that shape will -- that type of time of day mix is a margin tailwind for us for sure.

因此，像科技這樣的工作負載往往更加平衡的事物往往對我們來說是一個很好的利潤推動力。你可以想像具有這種形狀的其他類型的垂直行業 - 這種一天中的時間組合對我們來說肯定是一個利潤順風。

It's also the case that tech hospitality people with large personalization requirements, e-commerce, retail, they tend to be pretty interested in the compute platform. And that, again, is a mix that will tend to be a tailwind to our margins. So those things have been helpful, and I think we're going to start to see more of that effect in the coming 24 months.

同樣的情況是，具有大量個性化需求的科技接待人員、電子商務、零售人員往往對計算平台非常感興趣。再說一次，這種組合往往會成為我們利潤的順風車。所以這些事情很有幫助，我認為我們將在未來 24 個月內開始看到更多這種效果。

And just sort of a broader question sort of picking up on some of the themes from the Investor Day, the sort of one Fastly kind of unifying go-to-market product engineering, sort of customer advocacy.

這只是一個更廣泛的問題，涉及投資者日的一些主題，一種快速統一的上市產品工程，一種客戶宣傳。

What inning do you think we're in? I mean you sort of launched the channel program, which you talked about a couple of minutes ago, but what's more coming down the pipe over the next 3 to 4 quarters that we should be paying attention to?

你認為我們現在處於第幾局？我的意思是，您啟動了渠道計劃，您在幾分鐘前談到過該計劃，但在接下來的 3 到 4 個季度中，還有什麼是我們應該關注的呢？

When we think about one Fastly, the biggest piece that's coming is the full platform unification and what that means is all of the product offerings can be managed from a single management suite, no swivel chair management, regardless of which type of Next-Gen WAF deployment you're using, if you have Next-Gen WAF and you add content delivery, if you expand the compute, if you deploy observability, there's 1 platform, meaning 1 management plane, 1 API and importantly, 1 set of infrastructure.

當我們考慮 Fastly 時，即將到來的最重要的部分是完整的平台統一，這意味著所有產品都可以通過單個管理套件進行管理，無需轉椅管理，無論哪種類型的下一代 WAF如果您使用下一代WAF 並添加內容交付，如果您擴展計算，如果您部署可觀察性，則有1 個平台，意味著1 個管理平面、1 個API，重要的是，還有1 套基礎設施。

And what that means is a benefit for the user experience because they don't have that swivel chair, it's easier for them to operate and expand from one portfolio to the next. It makes our sales team's job in that land and expand easier for sure.

這意味著對用戶體驗的好處，因為他們沒有轉椅，他們可以更輕鬆地操作和從一個產品組合擴展到下一個產品組合。這無疑使我們的銷售團隊在這片土地上的工作和擴張變得更加容易。

And of course, it drives a real simplicity in our operation. We don't have to run multiple -- different types of infrastructure. We don't have a completely different infrastructure for compute. We have one set of infrastructure where all of our services run, 1 management plane, 1 API. And I think there's benefit from the ops and sales and certainly in the customer experience. You asked for inning. I'm saying we're in the fourth.

當然，它使我們的操作變得真正簡單。我們不必運行多種不同類型的基礎設施。我們沒有完全不同的計算基礎設施。我們擁有一套運行所有服務的基礎設施、1 個管理平面、1 個 API。我認為運營和銷售都有好處，當然還有客戶體驗。你要求局。我是說我們排在第四位。

Our next question comes from the line of Jonathan Ho.

我們的下一個問題來自Jonathan Ho。

Congrats on the strong results. Can you give us a little bit more color on sort of the AI opportunity that you described? And maybe what some of the specific use cases are, what the potential for revenue is? And how soon should we sort of expect this to become -- or will it even become sort of a meaningful driver?

祝賀取得的強勁成果。您能否為我們介紹一下您所描述的人工智能機會？也許一些具體的用例是什麼，收入的潛力是什麼？我們應該多久才能期望它成為——或者它甚至會成為一種有意義的驅動因素？

Yes. I mean I think it's a good question when it will become a meaningful driver. You should know we're not planning for it to be a meaningful driver for the remainder of this year.

是的。我的意思是，我認為這是一個很好的問題，它何時會成為一個有意義的驅動程序。您應該知道，我們並不打算讓它在今年剩餘時間內成為有意義的驅動因素。

But the use cases are incredibly interesting. We see AI and especially inference-based algorithms that are being used for deep personalization, content recommendation, product recommendation, et cetera. And the sophistication of that algorithm truly matters directly to the ROI of some of our customers, especially in e-commerce and media, et cetera.

但用例非常有趣。我們看到人工智能，尤其是基於推理的算法被用於深度個性化、內容推薦、產品推薦等。該算法的複雜性確實直接關係到我們一些客戶的投資回報率，特別是在電子商務和媒體等領域。

And I think those folks are experimenting with it right now. But this is a very interesting intersection for us, where personalization matters and user experience matters. And where there's a strong ability for those 2 things intersect, I feel like that's where we're going to see AI at the edge.

我認為那些人現在正在嘗試它。但這對我們來說是一個非常有趣的交叉點，個性化很重要，用戶體驗也很重要。當這兩件事有很強的交叉能力時，我覺得那就是我們將看到人工智能的邊緣。

And this is a great example of the kind of multi-cloud strategy that we talked about at Investor Day. We know these models are going to be trained in central cloud on AWS and GCP and then deployed to the edge in order to make those real-time decisions. And I think that's good. I think that's the way developers want to operate, and that puts the central cloud and the Edge in a place where they can both shine.

這是我們在投資者日討論的多雲策略的一個很好的例子。我們知道這些模型將在 AWS 和 GCP 的中央雲中進行訓練，然後部署到邊緣以做出實時決策。我認為這很好。我認為這就是開發人員想要的操作方式，這使得中央雲和邊緣能夠同時發揮作用。

Excellent. And then just in terms of the new traffic patterns that you described that potentially impact gross margins. Is there any additional detail that you can provide? And do you expect this to be a continued trend over time?

出色的。然後就您所描述的可能影響毛利率的新流量模式而言。您可以提供任何其他詳細信息嗎？您預計這種趨勢會隨著時間的推移而持續嗎？

We -- I do expect it to be a trend. I think any vertical -- we are obviously focusing on vertical differentiation in the customer base and new logo acquisition in nonmedia, nonpublishing verticals. And that differentiation, it matters -- it does matter because of the time of day. But also, it does matter because of the type of workloads that they have. Compute and security workloads tend to be a tailwind to our gross margin.

我們——我確實希望這會成為一種趨勢。我認為任何垂直領域——我們顯然都專注於客戶群的垂直差異化以及非媒體、非出版垂直領域的新徽標獲取。這種差異化很重要——因為一天中的不同時間，它確實很重要。而且，由於他們所承擔的工作負載類型，這確實很重要。計算和安全工作負載往往是我們毛利率的推動力。

We'll have to give it some thought. I don't have any other data points that I could disclose right now there, but I definitely do expect it to be a tailwind as we continue to differentiate the customer base.

我們得考慮一下。我現在沒有任何其他數據點可以透露，但我確實希望隨著我們繼續區分客戶群，這將成為一個順風車。

Our next question comes from the line of Madelin Brooks.

我們的下一個問題來自瑪德琳·布魯克斯。

Congrats on the strong quarter. Just 2 quick follow-ups from me. I guess, first, it's the environment. From a guidance perspective, it looks like the most of the raise is really coming from the beat this quarter. So how are you feeling about the environment going into the back half of the year? And then just 1 quick follow-up on AI after that.

祝賀季度表現強勁。我只有 2 個快速跟進。我想，首先是環境。從指導的角度來看，大部分加薪似乎確實來自本季度的表現。那麼您對下半年的環境有何看法？之後只是對人工智能進行 1 次快速跟進。

Sure. As far as the environment goes, I think we are actually pretty bullish. We've seen some of our -- some other folks in the market be a little bit concerned about the growth in their user base. And I think maybe there's some of that down market, but we have very little exposure to it.

當然。就環境而言，我認為我們實際上非常樂觀。我們看到市場上的一些其他人有點擔心他們的用戶群的增長。我認為也許存在一些低端市場，但我們對此的接觸很少。

Maybe some in service provider or banking, again, we don't have a lot of exposure there. I'd like more, we don't have any. Look, I think as far as the guidance goes, and I think you make a good call out. We want to be very clear that we are being responsible about the guidance, so we have very high confidence in hitting those numbers.

也許是服務提供商或銀行業的一些人，同樣，我們在那裡沒有太多的曝光度。我想要更多，我們沒有。聽著，我認為就指導而言，我認為你做出了很好的呼籲。我們希望非常清楚地表明，我們對指導負有責任，因此我們對達到這些數字非常有信心。

I was proud of the fact that the team was able to get real clarity and pull up the annual guide here. I hope to do it again.

我感到自豪的是，團隊能夠獲得真正的清晰度並在此處提取年度指南。我希望能再做一次。

And then on AI, understand training the model at the core and then really doing everything on the edge. From a SaaS perspective, do you see increasing and doing storage on the edge, be something that will require more CapEx than you're already planning for when it does become an opportunity? Or do you feel confident that the CapEx that you have spent so far is sufficient for that storage at the edge?

然後在人工智能方面，了解在核心訓練模型，然後真正在邊緣做所有事情。從 SaaS 的角度來看，您是否認為在邊緣增加和進行存儲，當它確實成為一個機會時，需要比您已經計劃的更多的資本支出？或者您是否確信迄今為止花費的資本支出足以用於邊緣存儲？

No. We have absolutely deployed for this. And you see it in the feature releases over the last few quarters. We launched big store as well as KV store, key value pair store, which is -- which can absolutely be used in order to deliver outcomes using an inference-based model.

不，我們已經為此做好了充分的部署。您可以在過去幾個季度的功能發布中看到這一點。我們推出了大型存儲以及 KV 存儲、鍵值對存儲，這絕對可以用於使用基於推理的模型來交付結果。

And you're going to see more storage features from us as we go forward. But this has been in the plan. And edge storage as part of our compute platform is absolutely part of what we have already built out for. We're not expecting a significant change to our build plan because of that.

隨著我們的不斷發展，您將看到我們提供更多存儲功能。但這已經在計劃之中了。邊緣存儲作為我們計算平台的一部分，絕對是我們已經構建的一部分。我們預計我們的構建計劃不會因此而發生重大變化。

Our next question comes from the line of Will Power.

我們的下一個問題來自意志力。

(inaudible) here on for Will. Just on pricing and packaging. I think you mentioned that you started to introduce it this quarter. Kind of where would you say you are in that journey right now? And when do you expect to finish the transition? And when do you expect the bulk of the benefits to kind of kick in there? Any color would be great.

（聽不清）這裡是威爾的。只是定價和包裝。我想你提到過你本季度開始推出它。您認為您現在正處於這段旅程的哪個階段？您預計什麼時候完成過渡？您預計什麼時候才能看到大部分好處？任何顏色都會很棒。

Yes. I think it's going to be a relatively long transition in part because we're not trying to force it. We have lots of customers that want to run a true utility motion. And especially customers in media, entertainment, back promotion, they want to run. We have no intention of making any changes there.

是的。我認為這將是一個相對較長的過渡，部分原因是我們並不想強迫它。我們有很多客戶想要運行真正的實用程序。尤其是媒體、娛樂、後台促銷領域的客戶，他們想要運行。我們無意在那裡做出任何改變。

But there's a huge chunk of the enterprise market that wants an all-in-1 package and especially, they want reliable billing. And that's something that I think is good for us and that it makes our revenue a little bit more reliable, gives us a strong sort of monthly renewing or monthly commit and revenue.

但有很大一部分企業市場需要一體化套餐，尤其是可靠的計費。我認為這對我們有好處，它使我們的收入更加可靠，為我們提供了強大的每月更新或每月承諾和收入。

We're seeing the improvement in things like the RPO, which run out into the disclosure this time around. And in part, I think, so that you can track the progress here. I would say our sales motion, I hope to be kind of transition maybe in another 12 months. But I think the customer base will shift towards this, maybe over the next 2 years until we hit kind of a steady state.

我們看到 RPO 等方面的改進，這一次已在披露中體現出來。我認為，部分原因是為了讓您可以在這裡跟踪進展情況。我想說的是，我們的銷售動議可能會在接下來的 12 個月內實現某種過渡。但我認為客戶群可能會在未來兩年內轉向這一點，直到我們達到穩定狀態。

It was nice to see that, again, some of the big deals that we called out and named we're using packages and that new packaging system was a reason why some of them made the change from a deeply entrenched incumbent. Flat rate packaging, no overages all-in-1 feature set. That was nice to see.

很高興看到我們再次呼籲並命名的一些大交易正在使用軟件包，而新的打包系統是其中一些人從根深蒂固的現任者做出改變的原因。統一費率包裝，無超額多合一功能集。很高興看到。

And then just quickly on the competitive environment. What are you seeing in the core CDN , the business there? Any changes on the competitive environment?

然後快速進入競爭環境。您在核心 CDN 以及那裡的業務中看到了什麼？競爭環境有什麼變化嗎？

We have seen some consolidation in the market and some interest. But largely, the 2 big trends we see is -- there are large customers with a multi-CDN that are looking at vendor consolidation, and that tends to be good for us when we see that, because they tend to choose the performance leader as one of their down selected vendors.

我們看到了市場的一些整合和一些興趣。但在很大程度上，我們看到的兩大趨勢是——擁有多CDN 的大客戶正在考慮供應商整合，當我們看到這一點時，這往往對我們有利，因為他們傾向於選擇性能領先者作為他們選擇的供應商之一。

And I think what we're seeing is that CDN more and more is being bought as part of an edge cloud solution. And so having the complete platform is an enormous tool. And we see some of our large competitors targeting that same kind of motion. And I think it's good for the industry that this is becoming much more of a platform play instead of a point solution.

我認為我們看到越來越多的 CDN 被購買作為邊緣雲解決方案的一部分。因此，擁有完整的平台是一個巨大的工具。我們看到一些大型競爭對手也瞄準了同樣的目標。我認為這對行業來說是件好事，因為這越來越成為一種平台遊戲而不是單點解決方案。

Our next question comes from the line of Rudy Kessinger.

我們的下一個問題來自魯迪·凱辛格。

(inaudible) on for Rudy. I just have 2 quick ones for you. First off, I know you guys had said at the Analyst Day that revenue per server in Q2 was roughly -- I'm sorry, in Q1 was roughly 12% below the peak. And I was just curious if you guys saw any further improvement in Q2?

（聽不清）魯迪上場。我只有 2 個快速的給你。首先，我知道你們在分析師日說過，第二季度每台服務器的收入大約是——抱歉，第一季度比峰值低了大約 12%。我只是好奇你們是否看到第二季度有任何進一步的改進？

That's a great question. We don't track revenue per server every quarter. I guess what I can tell you is we did not have to deploy any significant additional hardware in this quarter and the revenue went up. So I feel like we had a good chance that the revenue per server increased.

這是一個很好的問題。我們不會每季度跟踪每台服務器的收入。我想我可以告訴您的是，我們在本季度無需部署任何重要的額外硬件，並且收入有所增加。所以我覺得我們很有機會增加每台服務器的收入。

But to be honest, it's not a figure we track every single quarter. It was disclosed during Investor Day because the trend was interesting and certainly in hindsight, I think painted the picture, but it's really the cost of revenue that we are tracking most carefully.

但說實話，這並不是我們每個季度都會追踪的數字。它是在投資者日期間披露的，因為這一趨勢很有趣，而且事後看來，我認為描繪了這幅圖景，但我們最仔細跟踪的實際上是收入成本。

If I can optimize cost of revenue by adding a few servers and reducing other types of costs, we'll take that trade-off all day long. I don't want my ops team chasing down a goal around revenue per server instead of just optimizing for gross margin overall.

如果我可以通過添加一些服務器並減少其他類型的成本來優化收入成本，我們將整天進行這種權衡。我不希望我的運營團隊追求每台服務器收入的目標，而不是僅僅優化整體毛利率。

And then just second one, just any early feedback you've gotten from the Bot mitigation beta? And then when will Bot and DDoS products go GA?

然後是第二個問題，您從機器人緩解測試版中獲得的任何早期反饋嗎？那麼 Bot 和 DDoS 產品何時會正式發布？

That's a great question. My security team will be so excited. No, we've had a great response on the Bot mitigation, and we have a bunch of beta deployments out in the -- in customers' hands right now. It's been going great, and we're really excited about that play.

這是一個很好的問題。我的安全團隊會非常興奮。不，我們在 Bot 緩解方面得到了很好的響應，並且我們現在有大量測試版部署在客戶手中。一切進展順利，我們對這場比賽感到非常興奮。

On the DDoS side, obviously, we've had lots of DDoS technology available from Fastly for years and years, but getting more DDoS visibility has been a win. The most interesting part of that has been an enormous amount of customer interest in the full managed security service, which includes the DDoS mitigation there.

顯然，在 DDoS 方面，多年來我們已經從 Fastly 獲得了大量 DDoS 技術，但獲得更多 DDoS 可見性是一個勝利。其中最有趣的部分是大量客戶對全面託管安全服務（其中包括 DDoS 緩解）的興趣。

And that's been a nice tailwind. And to be honest, I think a really attractive service. It's something some of our competitors have had in the past, gives a direct access to our security operations team, really in-depth threat mitigation. And those 2, the security MSS and the Bot mitigation, we're incredibly confident in, and I think we're seeing a really healthy pipeline growth right now.

這是一個很好的順風。說實話，我認為這是一項非常有吸引力的服務。這是我們的一些競爭對手過去擁有的東西，可以直接訪問我們的安全運營團隊，真正深入地緩解威脅。對於這兩點，安全 MSS 和機器人緩解，我們非常有信心，而且我認為我們現在看到了真正健康的管道增長。

(Operator Instructions) Our next question comes from the line of Rishi Jaluria.

（操作員說明）我們的下一個問題來自 Rishi Jaluria 的線路。

This is Rich Poland on for Rishi. First one is, just on the pricing and packaging, you mentioned it's good for some of those new industry wins and use cases, I think you called out retail and hi-tech in particular.

這是 Rishi 的富裕波蘭。第一個是，就定價和包裝而言，您提到這對一些新行業的勝利和用例有好處，我認為您特別提到了零售和高科技。

Is there anything else besides the pricing and packaging that you've done over the past couple of quarters to help be more suitable for those types of use cases? And just anything new that you could expand on a little bit.

除了過去幾個季度您所做的定價和包裝之外，還有其他什麼可以幫助您更適合這些類型的用例嗎？以及任何可以擴展的新內容。

Sure. I mean, we've pushed really hard on automation. You saw in the supplement, there's details on dynamic back end, which helps automate Fastly management. We pushed on the security side of the house with mutual TLS.

當然。我的意思是，我們非常努力地推動自動化。您在補充中看到了有關動態後端的詳細信息，這有助於實現 Fastly 管理的自動化。我們通過相互 TLS 推動了安全方面的工作。

There's a bunch of work that we're doing to make the platform itself more powerful and, to be honest, easier to use and automate. And I think there's a lot more work we have here on just simplifying our customer experience, making Fastly not just the most powerful as cloud platform, but the easiest to use and the easiest to develop for, and we're working hard at that.

我們正在做大量工作來使平臺本身更強大，而且說實話，更易於使用和自動化。我認為我們在簡化客戶體驗方面還有很多工作要做，使 Fastly 不僅是最強大的雲平台，而且是最容易使用和最容易開發的，我們正在為此努力。

The strength of the platform has been, I think, really steadily increasing. We're very excited about. Certainly, we're very excited about some of the security efficacy improvements we've seen. But if there was one thing that I could say that we're really pushing on hard where we've already seen benefits and we hope to see a lot more, it's real platform unification. Because -- while the media vertical, I think, is very focused on direct content delivery, most other enterprise verticals really need a complete edge suite. They want a single platform, a single strategic vendor and they want that to be as easy to onboard as possible.

我認為，該平台的實力確實在穩步增強。我們非常興奮。當然，我們對所看到的一些安全效率改進感到非常興奮。但如果有一件事我可以說，我們確實在努力推進，我們已經看到了好處，並且希望看到更多，那就是真正的平台統一。因為，我認為，雖然媒體垂直行業非常注重直接內容交付，但大多數其他企業垂直行業確實需要完整的邊緣套件。他們想要一個單一的平台、一個單一的戰略供應商，並且希望盡可能容易上手。

So we've seen improvements in our account linking and UI consolidation. But as we get the full platform unification story, I think that's really going to help us knock down a lot of new logos in some of these expansion verticals.

因此，我們看到了帳戶鏈接和 UI 整合方面的改進。但當我們了解完整的平台統一故事時，我認為這確實會幫助我們在某些擴展垂直領域中消除許多新徽標。

And then just a follow-up on some of the security products that are rolling out. How should we think about just in terms of like monetization for some of those products? And how does that kind of flow into the model as we think about maybe just generally speaking, but then also as it applies to the pricing and packaging changes.

然後是一些正在推出的安全產品的後續行動。我們應該如何考慮其中一些產品的類似貨幣化？正如我們所考慮的，這種情況如何流入模型，也許只是一般而言，但也適用於定價和包裝的變化。

Sure. So the security -- the web application security solution, we kind of try to sell that as on unified package, especially in our new modern packaging solutions. So think DDoS, anti-bot, mitigation Next-Gen WAF. That has 1 consistent package. I think that will be our primary motion more and more.

當然。因此，安全性——網絡應用程序安全解決方案，我們嘗試將其作為統一包裝進行銷售，特別是在我們新的現代包裝解決方案中。因此，請考慮 DDoS、反機器人、緩解下一代 WAF。那有 1 個一致的包。我認為這將越來越成為我們的主要動議。

We obviously sell them a la carte, but you're going to see -- I think we're going to see more and more of that and that is sold as a package web application security. The TLS and the certificate solution usually gets sold kind of in conjunction with the CDN and certainly is really going to make that a lot easier, especially for a platform, what we call platform (inaudible), that support a lot of URLs that have a lot of different web presences and certainly is going to help us make that radically simpler for them. But I do think that will be sold separately.

顯然，我們按菜單出售它們，但你會看到——我認為我們會看到越來越多的此類產品作為 Web 應用程序安全包出售。 TLS 和證書解決方案通常與 CDN 一起出售，這確實會讓事情變得更加容易，特別是對於一個平台，我們稱之為平台（聽不清），它支持許多具有以下功能的 URL：許多不同的網絡存在，當然會幫助我們讓他們變得更加簡單。但我確實認為它將單獨出售。

So there's a little bit of a different motion there. Yes, I guess that's sort of how we see it. Largely, the core security solution being sold as a package and things like TLS, certificate management, et cetera, being sold ala carte.

所以那裡有一點不同的運動。是的，我想我們也是這麼看的。很大程度上，核心安全解決方案作為套餐出售，而 TLS、證書管理等則按單出售。

And that looks like all of our questions. I would now like to turn it back over to Todd and the team.

這看起來像是我們所有的問題。我現在想把它轉回給托德和團隊。

Thanks so much. Before we close the call, I want to thank our employees, our customers, our partners and our investors. We remain as committed as ever to make the Internet a better place where all experiences are fast, safe and engaging.

非常感謝。在結束通話之前，我要感謝我們的員工、客戶、合作夥伴和投資者。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、安全且引人入勝。

Moving forward, we remain focused on execution and bringing lasting growth to our business and delivering value to all of our shareholders. Thank you so much for your time today.

展望未來，我們將繼續專注於執行力，為我們的業務帶來持久增長，並為所有股東創造價值。非常感謝您今天抽出時間。

That concludes today's call. Have a pleasant day.

今天的電話會議到此結束。祝你有愉快的一天。