Fastly Inc (FSLY) 2023 Q3 法說會逐字稿

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

女士們、先生們，午安。我叫艾比，今天我將擔任你們的會議操作員。在此，我歡迎大家參加 Fastly 2023 年第三季財報電話會議。 （操作員說明）我現在想將會議轉交給 Fastly 投資者關係部門的 Vernon Essi。請繼續。

Thank you, and welcome, everyone, to our Third 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. 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.

謝謝並歡迎大家參加我們的 2023 年第三季財報電話會議。今天，Fastly 的執行長 Todd Nightingale 和財務長 Ron Kisling 與我們一起。本次電話會議的網路直播可透過我們的網站 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。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均在我們今天的 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. 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 third quarter 2023 earnings release and supplement for a discussion of the factors that would cause our results to differ.

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、策略、長期成長和整體未來前景相關的陳述。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有重大差異。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 年第三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是基於截至今天為止我們所掌握的資訊。除法律要求外，我們不承擔更新任何前瞻性聲明的義務。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. Before we begin our prepared comments, please note that we will be attending 3 conferences in the fourth quarter: the RBC Capital Markets 2023, TIMT Conference in New York City on November 15, the D.A. Davidson Technology Summit in New York City on November 16 and the UBS Global Technology Conference in Scottsdale, Arizona, on November 29. With that, I'll turn the call over to Todd. Todd?

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較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。在我們開始準備評論之前，請注意，我們將在第四季度參加 3 場會議：RBC 資本市場 2023、11 月 15 日在紐約市舉行的 TIMT 會議、D.A. 11 月 16 日在紐約市舉行的戴維森技術高峰會以及 11 月 29 日在亞利桑那州斯科茨代爾舉行的瑞銀全球技術會議。接下來，我將把電話轉給托德。托德？

Thanks, Vernon. Hi, everyone, and thanks so much for joining us today. First, I will give a quick summary of our financial results and third quarter highlights, and then I will provide an update on our product strategy, go-to-market an internal transformation, before I hand the call off to Ron to discuss our third quarter financial results and guidance in detail.

謝謝，弗農。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三季度的亮點，然後我將提供有關我們產品策略、上市和內部轉型的最新信息，然後再將電話交給羅恩討論我們的第三季度業績。季度財務業績和指導的詳細資訊。

We reported record third quarter revenue of $127.8 million, which grew 18% year-over-year and 4% quarter-over-quarter. This came in at the very high end of our guidance range, driven by strong international traffic. This demonstrates continued momentum in our enterprise customer motion, as we continue to benefit from vendor consolidation and seasonal strength in streaming activity.

我們公佈的第三季營收達到創紀錄的 1.278 億美元，年增 18%，季增 4%。在強勁的國際流量的推動下，這一數字處於我們指導範圍的非常高端。這表明我們的企業客戶動向持續強勁，因為我們繼續受益於供應商整合和串流媒體活動的季節性優勢。

Our customer retention efforts, a hallmark of our customer satisfaction, were favorable in the third quarter. Our LTM NRR was 114%, down slightly from Q2. Our DBNER was 120% in the third quarter, down from 123% in Q2 and also slightly down from 122% in Q3 of last year. Our DBNER continues to demonstrate healthy wallet share gains in our customers as we continue to cross-sell more functionality and grow with our customers' ongoing edge traffic requirements. We're starting to see some effects of budget tightening by our customers, while we continue to see strength in customer expansion, especially cross-product expansion across the board.

我們的客戶保留工作是我們客戶滿意度的標誌，在第三季表現良好。我們的 LTM NRR 為 114%，比第二季略有下降。第三季我們的 DBNER 為 120%，低於第二季的 123%，也略低於去年第三季的 122%。隨著我們繼續交叉銷售更多功能並隨著客戶持續的邊緣流量需求而成長，我們的 DBNER 繼續在客戶中展示健康的錢包份額成長。我們開始看到客戶預算緊縮的一些影響，同時我們繼續看到客戶擴張的力量，特別是全面的跨產品擴張。

Our total customer count in the third quarter was 3,102, which increased by 30 customers compared to Q2 and 63 year-over-year. Enterprise customers totaled 547 in the quarter, a decrease of 4 from Q2 and an increase of 36 year-over-year. We have 4 new customers make the enterprise $25,000 threshold in the quarter, number dropped to reflect a sequential decline.

第三季我們的客戶總數為 3,102 家，比第二季增加 30 家，較去年同期增加 63 家。本季企業客戶總數為547戶，較第二季減少4戶，較第二季減少36戶。本季我們有 4 個新客戶使企業門檻達到 25,000 美元，數量下降反映了環比下降。

As we discussed during our Q1 earnings, our newer enterprise customer count methodology will be slightly more volatile. Our average enterprise customer spend was $858,000 up $40,000 quarter-over-quarter, representing a 5% increase, as well as an 11% increase year-over-year. These results point to continued wallet share expansion, as we've aligned our customer success teams to be more focused on cross-product adoption.

正如我們在第一季財報中討論的那樣，我們新的企業客戶計數方法將稍微波動一些。我們的企業客戶平均支出為 858,000 美元，季增 40,000 美元，成長 5%，年增 11%。這些結果顯示錢包份額持續擴大，因為我們已經調整了客戶成功團隊，並更加專注於跨產品採用。

Also, as we work towards platform unification, we've begun focusing on our goal of making customer cross-selling and onboarding as simple as a single click for existing customers. This will be a huge shift in the usability and the expandability of our platform and help drive customer retention as well as expansion.

此外，在我們努力實現平台統一的過程中，我們開始專注於讓現有客戶只需單擊即可進行客戶交叉銷售和入職培訓的目標。這將是我們平台的可用性和可擴展性的巨大轉變，有助於推動客戶保留和擴展。

I'm excited to share with you that in the third quarter, we acquired Domainr, a real-time DMS API provider. We've brought on board a small team of highly respected DMS experts and paired with the general availability of certainly our certificate authority, we have the opportunity to greatly simplify onboarding to the Fastly platform with security and simplification.

我很高興與您分享，在第三季度，我們收購了即時 DMS API 提供者 Domainr。我們聘請了一支由備受尊敬的 DMS 專家組成的小團隊，並與我們的證書頒發機構的普遍可用性相結合，我們有機會透過安全性和簡化性極大地簡化 Fastly 平台的註冊過程。

In the third quarter, we landed key new logo wins and highly competitive deals. I'm personally very excited about [Wendy's], a true lighthouse account in a new vertical for Fastly, that opens up a major market opportunity. As our success in e-commerce grows to include more and more adjacent verticals such as food delivery, travel and leisure and consumer brands, we see significant potential to accelerate customer acquisition.

在第三季度，我們贏得了關鍵的新標誌和極具競爭力的交易。我個人對 [Wendy's] 感到非常興奮，它是 Fastly 新垂直領域真正的燈塔帳戶，它開闢了一個重大的市場機會。隨著我們在電子商務領域的成功擴展到越來越多的相鄰垂直領域，例如食品配送、旅遊休閒和消費品牌，我們看到了加速客戶獲取的巨大潛力。

Continuing our success in security and privacy proxy implementations. We are excited that Mozilla adopted Fastly's Oblivious HTTP Relay. Fastly now serves 3 of the top 4 Internet browsers worldwide. On thought leadership, we published our first threat intelligence report, featuring data and insights from Fastly's Network Learning Exchange, as well as continued post on Fastly technical leadership in the constantly evolving world of DDoS experts.

繼續我們在安全和隱私代理實施方面的成功。我們很高興 Mozilla 採用了 Fastly 的 Oblivious HTTP Relay。 Fastly 現在為全球排名前 4 的網路瀏覽器中的 3 個提供服務。在思想領導方面，我們發布了第一份威脅情報報告，其中包含來自 Fastly 網路學習交流的數據和見解，以及關於不斷發展的 DDoS 專家世界中 Fastly 技術領導力的持續貼文。

As some of you are aware, a couple of CDM providers are in the process of winding down their services and have sold their remaining customer contracts to our competition. This has created a disruptive environment that Fastly is poised to capitalize on. Especially as those contracts come up for renewal. Digital Turbine, a leading digital ad provider, is a great example, and there are many others already engaged with Fastly to find higher levels of service and performance at competitive rates.

正如你們中的一些人所知，一些 CDM 提供者正在逐步結束其服務，並將剩餘的客戶合約出售給我們的競爭對手。這創造了一個顛覆性的環境，Fastly 準備充分利用它。尤其是當這些合約需要續約時。 Digital Turbine 是一家領先的數位廣告供應商，就是一個很好的例子，還有許多其他供應商已經與 Fastly 合作，以具有競爭力的價格找到更高水準的服務和效能。

We are committed to helping them find their next strategic partner. If anyone listening, recently had their contracts sold, please feel free to reach out. We're seeing this e-commerce expansion internationally as well, closing a top New Zealand grocer and an omnichannel retail fashion house in the U.K. We saw continued customer acquisition in the travel and leisure segment and in the healthcare life sciences. We anticipate continued momentum in these expansion verticals, as our sales team is now armed with more reference accounts and prebuilt use cases. This momentum significantly tilts the wind probability to Fastly and gives us a considerable edge with new customers.

我們致力於幫助他們找到下一個策略夥伴。如果有人在聽，最近合約已售出，請隨時與我們聯繫。我們也看到了電子商務在國際上的擴張，關閉了紐西蘭一家頂級雜貨店和英國全通路零售時裝店。我們看到旅遊和休閒領域以及醫療保健生命科學領域的客戶持續成長。我們預計這些垂直擴展的勢頭將持續下去，因為我們的銷售團隊現在擁有更多的參考帳戶和預先建置的用例。這種勢頭顯著地使風向快速傾斜的可能性並使我們在新客戶方面具有相當大的優勢。

As these new verticals ramp, a diversified traffic load will provide Fastly with smoother network and compute demand, providing better infrastructure utilization, leading to future margin improvements. Our gross margin was 55.9% for the third quarter, representing a 70 basis point decline quarter-over-quarter, at a 230 basis point increase year-over-year. I am pleased with the team's efforts controlling our variable cost of revenue and continuing to get more from our infrastructure footprint.

隨著這些新垂直領域的發展，多樣化的流量負載將為 Fastly 提供更順暢的網路和運算需求，提供更好的基礎設施利用率，從而提高未來的利潤率。第三季毛利率為 55.9%，季減 70 個基點，年增 230 個基點。我很高興團隊努力控制我們的可變收入成本，並繼續從我們的基礎設施足跡中獲得更多收益。

For the second quarter in a row, we saw outsized increases in international traffic, which did cause a short-term margin headwind. As with last quarter, these will open up opportunities for us to peer more and negotiate our bandwidth costs to lower our total cost of revenue for the future. Our operating expenses were $84 million in the quarter, coming in lower than anticipated. Financial discipline and rigor continue to have [favorable] results here.

我們連續第二季看到國際流量大幅成長，這確實導致了短期利潤率下降。與上個季度一樣，這些將為我們提供更多的機會，並協商我們的頻寬成本，以降低未來的總收入成本。本季我們的營運支出為 8,400 萬美元，低於預期。財務紀律和嚴謹在這裡繼續產生[有利的]結果。

Note, this result also reflects heavy sales and marketing spend due to onetime events and fees. I'm also pleased that we posted another positive adjusted EBITDA quarter, making this our second quarter in a row. Positive EBITDA should be a normal occurrence moving forward, but you'll excuse my enthusiasm just this one last time. Ron will explain our outlook and guidance in more detail. But as you can tell from our OpEx spend, we are readying our model to leverage revenue growth and improve our cash flow for next year.

請注意，此結果也反映出由於一次性活動和費用而導致的大量銷售和行銷支出。我還很高興我們發布了另一個積極的調整後 EBITDA 季度，這使這成為我們連續第二個季度。積極的 EBITDA 應該是未來的正常現象，但請原諒我最後一次的熱情。羅恩將更詳細地解釋我們的前景和指導。但正如您從我們的營運支出支出中可以看出的那樣，我們正在準備我們的模型，以利用收入成長並改善明年的現金流。

During the quarter, we continued to drive our durable innovation engine strategy and have delivered several key pieces of functionality in the market. You can see these in our supplement, including KV Store shipping GA, which enables more powerful edge applications through very high performance of reason rights of key data at the edge. GraphQL inspection expands Fastly as API security offering.

在本季度，我們繼續推動持久的創新引擎策略，並在市場上提供了多項關鍵功能。您可以在我們的補充中看到這些，包括 KV Store 交付 GA，它透過邊緣關鍵數據的推理權的高性能來實現更強大的邊緣應用程式。 GraphQL 檢查作為 API 安全產品快速擴展。

Certainly, going GA establishes a Fastly certificate authority to provide domain validated TLS certificates and improve the security and reliability of our customer sites. And our Go Compiler SDK provides edge compute developers with a key capability for a highly requested language.

當然，GA 會建立一個 Fastly 證書頒發機構來提供經過網域驗證的 TLS 證書，並提高我們客戶網站的安全性和可靠性。我們的 Go 編譯器 SDK 為邊緣運算開發人員提供了高要求語言的關鍵功能。

During the quarter, we hosted Altitude. Our user conference in New York City drawing hundreds of worldwide attendees. Most attendees were customers and prospects, but there were also industry and investor analysts in attendance. I was extremely pleased with the event. It was very well received. Some of the sessions have been viewed thousands of times online, following our social media coverage.

在本季度，我們託管了 Altitude。我們在紐約市舉行的用戶會議吸引了全球數百名與會者。大多數與會者是客戶和潛在客戶，但也有產業和投資者分析師出席。我對這次活動感到非常滿意。非常受歡迎。根據我們的社群媒體報道，有些會議已在網路上被瀏覽了數千次。

One of the highlights was a demo of simplified service creation, our new onboarding workflow and dashboard. This demo was so powerful because it showcased Fastly's new ability to provision a global website for best-in-class low-latency user experience worldwide, all in 90 seconds.

其中的亮點之一是簡化服務建立、我們新的入職工作流程和儀表板的演示。該演示非常強大，因為它展示了 Fastly 的新能力，即在 90 秒內為全球提供一流的低延遲用戶體驗的全球網站。

This combination of power and simplicity is near and dear to my heart. And I believe it's key to rapidly increasing customer acquisition of Fastly. Please give it a look if you have a chance, it's bookmarked in our Events page and in our supplement.

這種力量與簡單的結合是我所喜愛的。我相信這是快速增加 Fastly 客戶獲取量的關鍵。如果有機會請看一下，它已在我們的“活動”頁面和我們的補充中添加了書籤。

There's also been great progress with our Packaging motion. We initiated this motion a little less than a year ago and post our first handful of Packaging customers in the first quarter of 2023. Since then, the growth has accelerated. In the third quarter, the number of customers that signed Packaging deals more than doubled quarter-over-quarter. Almost half the package is sold to date, have been computing related with almost 1/3 of the customers buying a stand-alone compute-only package.

我們的包裝動議也取得了巨大進展。我們在不到一年前發起了這項動議，並於 2023 年第一季發布了我們的第一批包裝客戶。從那時起，成長加速了。第三季度，簽署包裝協議的客戶數量較上季增加了一倍以上。迄今為止，幾乎一半的軟體包已售出，其中幾乎有 1/3 的客戶購買了獨立的計算軟體包。

In terms of the overall number of packages sold more than 25% of our package deals are platform wins with multiple product lines included, demonstrating the ability for Packaging to help us drive our platform strategy and expand our offerings beyond CDM. This data gives us great insight into where we can see our efforts and we plan to continue to drive a single platform, cross-selling motion across our customer base.

就銷售的包裝總數而言，我們超過 25% 的包裝交易是平台勝利，其中包括多個產品線，這表明 Packaging 有能力幫助我們推動平台策略並將我們的產品擴展到 CDM 之外。這些數據使我們能夠深入了解我們在哪裡可以看到我們的努力，並且我們計劃繼續在我們的客戶群中推動單一平台的交叉銷售運動。

I'm very excited about this opportunity. As Ron will explain in just a moment, this is having a favorable impact on our RPO as well. Moving on to our channel partner development. We are seeing great progress here. Our 2023 deal registration is already triple that of 2022. You'll recall that during our Investor Day in late June, Brett shared with you that we had 33 partners globally engaged. Today that number totals 55. Our revenue contribution has grown more than 50% in 2023 year-to-date, when compared to all of 2022, and we expect to see this trend continue into 2024.

我對這個機會感到非常興奮。正如 Ron 稍後將解釋的那樣，這也對我們的 RPO 產生了有利的影響。繼續我們的通路合作夥伴發展。我們在這裡看到了巨大的進步。我們 2023 年的交易登記量已經是 2022 年的三倍。您可能還記得，在 6 月底的投資者日期間，Brett 與您分享了我們在全球有 33 個合作夥伴的參與。如今，這一數字已達 55 個。與 2022 年全年相比，2023 年迄今為止，我們的收入貢獻增長了 50% 以上，我們預計這一趨勢將持續到 2024 年。

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 margin, 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 年的進展感到滿意。這反映在我們今年的更新預測中。我們提高了對收入和營業利潤率的年度指導，我們將努力尋找方法，透過強勁的創新速度、策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。

Fastly partners with our customers to deliver the best possible end user experience. This focus uniquely positions us where these market needs intersect the edge cloud. And there is an enormous opportunity in that intersection. The future user experience is fast, safe and engaging without compromise. Organizations spent too much time building best-in-class digital experiences, only to see the value of that effort lost by having to compromise between performance, safety and personalization.

快速與我們的客戶合作，提供最佳的最終用戶體驗。這種關注使我們在這些市場需求與邊緣雲的交叉點上處於獨特的位置。這個交叉點蘊藏著巨大的機會。未來的用戶體驗將是快速、安全且引人入勝且毫不妥協的。組織花了太多時間來建立一流的數位體驗，結果卻發現由於必須在性能、安全性和個性化之間做出妥協而損失了這些努力的價值。

This represents a clear architectural opportunity for Fastly. The solution has to be built on the edge, and it has to leverage all the benefits of a best-in-class edge cloud platform. Fast, safe and engaging without compromise. This is Fastly. Thank you so much. And now to discuss the financial details of the quarter and guidance, I'll turn the call over to Ron. Ron?

這對 Fastly 來說是一個明顯的架構機會。該解決方案必須建構在邊緣上，並且必須利用一流邊緣雲端平台的所有優勢。快速、安全、引人入勝，毫不妥協。這是快。太感謝了。現在，為了討論本季的財務細節和指導，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 third quarter increased 18% year-over-year to $127.8 million, coming in at the top end of our guidance of $125 million to $128 million. Revenue from Signal Sciences products was 14% of revenue, a 33% year-over-year increase or a 31% increase, excluding the impact of purchase price adjustments related to deferred revenue.

第三季總營收年增 18%，達到 1.278 億美元，位於我們指引的 1.25 億美元至 1.28 億美元的上限。訊號科學產品收入佔營收的14%，年增33%，若剔除與遞延收入相關的採購價格調整的影響，則成長31%。

Also note that we calculate growth rates off of the actual results with the percentage of revenue rounded to the nearest whole percent. In the third quarter, we saw traffic expansion at our major customers as well as strong upsell and cross-sell activity. Our trailing 12-month net retention rate was 114%, down from 116% in the prior quarter and 118% in the year ago quarter.

另請注意，我們根據實際結果計算成長率，並將收入百分比四捨五入到最接近的整數百分比。在第三季度，我們看到主要客戶的流量成長以及強勁的追加銷售和交叉銷售活動。我們過去 12 個月的淨保留率為 114%，低於上一季的 116% 和去年同期的 118%。

We continue to experience very low churn and our customer retention dynamics remain strong. Turning to RPO. As I discussed last quarter, our consumption-based revenue model is now being augmented with predictable revenue packages. For the third quarter, our RPO was $248 million, up 7% from $231 million in the second quarter of 2023 and up 43% from $173 million in the third quarter of 2022.

我們的客戶流失率仍然非常低，我們的客戶保留動力仍然強勁。轉向 RPO。正如我上季度所討論的，我們基於消費的收入模式現在正在透過可預測的收入套餐而增強。第三季度，我們的 RPO 為 2.48 億美元，比 2023 年第二季的 2.31 億美元成長 7%，比 2022 年第三季的 1.73 億美元成長 43%。

As Todd shared, we had 3,102 customers at the end of Q3, of which 547 were classified as enterprise, a net decrease of 4 compared to an increase of 11 in the second quarter. As a reminder, we changed our calculation of enterprise customers this year, to customers with an annualized revenue run rate of $100,000 or $25,000 in the current quarter, which results in more quarter-to-quarter volatility than in the previous 12-month trailing $100,000 definition.

正如托德分享的那樣，截至第三季末，我們擁有 3,102 家客戶，其中 547 家屬於企業客戶，與第二季增加 11 家相比，淨減少 4 家。提醒一下，我們今年更改了企業客戶的計算方式，將當前季度的年化收入運行率為 100,000 美元或 25,000 美元的客戶，這導致比前 12 個月追蹤 100,000 美元的季度波動更大定義。

Using our prior methodology, Enterprise customer count increased by 10 customers in the third quarter to 530 compared to an increase of 6 in the prior quarter. Enterprise customers accounted for 92% of total revenue on an annualized basis in both Q3 and Q2. And Enterprise customer average spend was $858,000, up 5% from $818,000 in the previous quarter and up 11% from $771,000 in Q3 of last year. Our top 10 customers comprised 40% of our total revenues in the third quarter of 2023, an increase for the 37% contribution in Q2 2023, reflecting in part the impact of vendor consolidation and expansion of our traffic at some of our largest customers. Which also drove 1 customer to account for 12% of revenue in the third quarter. I'll now turn to the rest of our financial results for the third quarter.

使用我們先前的方法，企業客戶數量在第三季增加了 10 個客戶，達到 530 個，而上一季增加了 6 個。以年化計算，企業客戶在第三季和第二季均佔總營收的 92%。企業客戶平均支出為 858,000 美元，比上一季的 818,000 美元增長 5%，比去年第三季的 771,000 美元增長 11%。我們的十大客戶佔 2023 年第三季總營收的 40%，比 2023 年第二季的 37% 貢獻有所增加，部分反映了供應商整合和我們一些最大客戶流量擴大的影響。這也促使 1 個客戶佔第三季營收的 12%。現在我將談談第三季的其餘財務表現。

Our gross margin was 55.9% compared to 56.6% in the second quarter of 2023, slightly above our expectation of a 100 basis point sequential decline. We saw increased bandwidth costs from higher-than-expected growth in traffic, from customers outside the U.S. and EU, which was partially offset by a reduction in our other variable and fixed cost of revenue.

我們的毛利率為 55.9%，而 2023 年第二季為 56.6%，略高於我們連續下降 100 個基點的預期。我們看到美國和歐盟以外的客戶流量成長高於預期導致頻寬成本增加，但我們其他可變和固定收入成本的減少部分抵消了頻寬成本的增加。

As we've discussed, in 2022, we implemented new and more robust network capacity planning to better align network capacity investments with our expected traffic demand. These steps have driven significant reductions to our cash CapEx investment, as a percentage of revenue, which declined from 14% in 2021 to a current range of 6% to 8%. As part of this capacity planning, we identified approximately $4.3 million of hardware, software and related commitments, primarily acquired or committed to in 2021, that are in excess of our requirements.

正如我們所討論的，我們在 2022 年實施了新的、更強大的網路容量規劃，以更好地使網路容量投資與我們的預期流量需求保持一致。這些措施導致我們的現金資本支出佔收入的百分比大幅下降，從 2021 年的 14% 下降到目前的 6% 至 8%。作為該容量規劃的一部分，我們確定了約 430 萬美元的硬體、軟體和相關承諾，這些承諾主要在 2021 年購買或承諾，超出了我們的需求。

We recorded an impairment charge for $4.3 million in Q3 to reserve for this excess equipment and commitments. We excluded the impact of this charge in our non-GAAP results. Operating expenses were $84 million in the third quarter, an 8% increase compared to Q3 2022 and up 9% sequentially from the second quarter. A portion of this growth was a tax benefit of $3.4 million recorded in the second quarter that did not recur in Q3. And onetime marketing expenses related to events and fees in addition to our normal investments in R&D and sales and marketing.

我們在第三季記錄了 430 萬美元的減損費用，以預留多餘的設備和承諾。我們在非公認會計準則績效中排除了這項費用的影響。第三季營運費用為 8,400 萬美元，較 2022 年第三季成長 8%，較第二季較上季成長 9%。這一增長的一部分是第二季度記錄的 340 萬美元的稅收優惠，該稅收優惠在第三季度沒有重複出現。除了我們在研發、銷售和行銷方面的正常投資之外，還包括與活動和費用相關的一次性營運費用。

The benefits from our continued focus on cost discipline and financial rigor offset these investments, resulting in OpEx coming in slightly below our expectations. This favorability, combined with revenue at the upper end of our guidance range, and gross margin slightly ahead of expectations, resulted in an operating loss of $12.6 million, exceeding the high end of our operating loss guidance range of $15 million to $13 million.

我們持續關注成本紀律和財務嚴謹性所帶來的好處抵消了這些投資，導致營運支出略低於我們的預期。這種優惠，加上我們的指導範圍上限的收入和略高於預期的毛利率，導致營運虧損 1,260 萬美元，超過了我們營運虧損指引範圍的上限 1,500 萬美元至 1,300 萬美元。

Our net loss in the third quarter was $8 million or a $0.06 loss per basic and diluted share, compared to a net loss of $16.8 million and a $0.14 loss per basic and diluted share in Q3 2022. I'm pleased to report that our adjusted EBITDA was positive in the third quarter, coming in at $0.7 million, compared to negative $9.1 million in Q3 2022.

我們第三季的淨虧損為800 萬美元，即每股基本股和稀釋股虧損0.06 美元，而2022 年第三季的淨虧損為1,680 萬美元，每股基本股和稀釋股虧損0.14 美元。我很高興地報告說，我們調整後的第三季 EBITDA 為正，為 70 萬美元，而 2022 年第三季為負 910 萬美元。

Turning to the balance sheet. We ended the quarter with approximately $461 million in cash, cash equivalents, marketable securities and investments, including those classified as long-term. Our free cash flow for the third quarter was negative $19.7 million, a $27 million sequential decrease from positive $7.8 million in the second quarter.

轉向資產負債表。截至本季末，我們擁有約 4.61 億美元的現金、現金等價物、有價證券和投資，包括長期投資。我們第三季的自由現金流為負 1,970 萬美元，比第二季的正 780 萬美元減少了 2,700 萬美元。

This decrease was primarily driven by changes in working capital and lower operating margins as compared to Q2, which benefited from the aforementioned nonrecurring sales and use tax refund of $3.4 million. Our cash capital expenditures were approximately 4% of revenue in the third quarter, below the low end of our outlook of 6% to 8% of revenue for 2023.

這一下降主要是由於營運資金的變化以及與第二季度相比營業利潤率的下降，這得益於上述 340 萬美元的非經常性銷售和使用稅退稅。第三季我們的現金資本支出約佔營收的 4%，低於我們對 2023 年營收 6% 至 8% 的預期下限。

We expect to accelerate the purchase of certain hardware in the fourth quarter for deployment in 2024, which will drive our annual CapEx for 2023, as a percentage of revenue to the high end of our 6% to 8% range. As this demonstrates, we expect to continue to see quarterly fluctuations in the timing of our capital expenditures, but for them to align with our range on an annual basis.

我們預計將在第四季度加速購買某些硬件，以便在 2024 年進行部署，這將推動我們 2023 年的年度資本支出（佔收入的百分比）達到 6% 至 8% 範圍的高端。正如這表明的那樣，我們預計資本支出的時間安排將繼續出現季度波動，但與我們的年度範圍保持一致。

As a reminder, our cash capital expenditures include capitalized internal use software. I will now discuss our outlook for the fourth 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. We undertake no obligation to update these forward-looking statements in the future, except as required by law.

提醒一下，我們的現金資本支出包括資本化的內部使用軟體。我現在將討論我們對 2023 年第四季和全年的展望。我想再次提醒大家，以下陳述是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。除非法律要求，我們不承擔將來更新這些前瞻性聲明的義務。

Our fourth quarter and full year 2023 outlook, reflect our continued ability to deliver strong top line growth via improved customer acquisition, 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 年第四季和全年的展望反映了我們透過改善現有客戶的客戶獲取、追加銷售和交叉銷售擴張，持續實現強勁營收成長的能力，這在一定程度上是由新產品和增強型產品所推動的。我們的收入指導是基於我們今天的可見性。

Historically, our revenue experienced a sequential growth in the second half, that accelerates into the fourth quarter. For the fourth quarter, we expect revenue in the range of $137 million to $141 million, representing 16% annual growth and 9% sequential growth at the midpoint. As we shared on our previous call, we saw some increase in price declines in the first half as a result of winning additional traffic from a major customer. As we entered the second half of 2023, we experienced increased traffic in international markets where we saw favorable pricing. As a result, our pricing trajectory was more favorable than its normal course, and we expect that to continue for the remainder of 2023. And recall that normal reductions in our bandwidth costs and ongoing network optimization, combined with increasing traffic into our fixed cost base, typically offset our pricing decline.

從歷史上看，我們的收入在下半年經歷了連續成長，並在第四季度加速成長。對於第四季度，我們預計營收在 1.37 億美元至 1.41 億美元之間，年增長率為 16%，環比成長率中點為 9%。正如我們在先前的電話會議中分享的那樣，由於從主要客戶那裡贏得了額外的流量，我們看到上半年價格下降幅度有所增加。進入 2023 年下半年，我們看到國際市場的流量增加，價格也很優惠。因此，我們的定價軌跡比正常路線更有利，我們預計這種情況將在2023 年剩餘時間內持續下去。回想一下，我們頻寬成本的正常降低和持續的網路優化，加上我們固定成本基礎的流量增加，通常抵消了我們的定價下降。

Looking more closely into these dynamics on the cost side, in the second half of 2023, we saw a larger increase than previously expected in traffic from customers outside the U.S. and EU markets. Within these markets, our bandwidth costs today are higher than those in the U.S. and EU markets and have had a modest adverse impact on our gross margins. While this increased traffic gives us the opportunity to renegotiate our bandwidth rate and increase (inaudible), reducing costs for all customers in these regions, it will have a modest near-term impact on gross margins while we complete these negotiations.

更仔細地觀察成本方面的這些動態，我們發現 2023 年下半年，來自美國和歐盟市場以外的客戶的流量增長幅度超出了先前的預期。在這些市場中，我們目前的頻寬成本高於美國和歐盟市場，並對我們的毛利率產生了輕微的不利影響。雖然流量的增加使我們有機會重新協商頻寬速率並增加（聽不清楚），從而降低這些地區所有客戶的成本，但在我們完成這些協商期間，它將對毛利率產生適度的短期影響。

We continue to be very disciplined in our network investment and cost of revenues, which contributed to our third quarter gross margins being approximately 30 basis points better than we initially expected. For the fourth quarter, we now anticipate our gross margins will increase approximately 100 basis points, relative to the third quarter, plus or minus 50 basis points.

我們繼續嚴格控制網路投資和收入成本，這使得我們第三季的毛利率比我們最初的預期高出約 30 個基點。對於第四季度，我們現在預計毛利率將比第三季增加約 100 個基點，上下浮動 50 個基點。

As we mentioned previously, our Q3 operating loss was moderately better than our earlier expectations. As our continued cost controls offset increased seasonal spending and marketing. For the fourth quarter, we will see the benefit of increased revenue as we continue our cost control efforts. As a result, for the fourth quarter, we expect our non-GAAP operating loss to decrease by approximately $3 million to $7 million to $10 million to $6 million and our non-GAAP loss to be $0.05 to $0.01 per share.

正如我們之前提到的，我們第三季的經營虧損略好於我們先前的預期。由於我們持續的成本控制抵消了季節性支出和行銷的增加。在第四季度，隨著我們繼續努力控製成本，我們將看到收入增加的好處。因此，我們預計第四季度的非 GAAP 營運虧損將減少約 300 萬至 700 萬美元至 1,000 萬至 600 萬美元，非 GAAP 每股虧損為 0.05 至 0.01 美元。

We reported nominally positive EBITDA in our third quarter and expect our adjusted EBITDA to remain positive and to improve materially in the fourth quarter. For calendar year 2023, we are raising the midpoint of our revenue guidance from a range of $500 million to $510 million, to a range of $505 million to $509 million. This increase represents 17% annual growth at the midpoint. We expect our non-GAAP operating loss to improve to a range of $44 million to $40 million, reflecting an operating margin of negative 8% at the midpoint, which compares favorably to our prior guide of negative 9% at the midpoint and our operating margin of negative 18% in 2022.

我們第三季的 EBITDA 名義上為正值，預計調整後的 EBITDA 將保持為正值，並在第四季度大幅改善。對於 2023 日曆年，我們將收入指引的中點從 5 億美元至 5.1 億美元提高到 5.05 億美元至 5.09 億美元。這一增幅相當於年增率中位數 17%。我們預計我們的非GAAP 營業虧損將改善至4,400 萬美元至4,000 萬美元的範圍，反映出中點營業利潤率為負8%，這與我們先前的中點負9% 的指導和我們的營業利潤率相比是有利的2022 年負 18%。

We expect our non-GAAP net loss per share to improve to $0.23 to $0.19, reflecting the improvement in our operating loss expectations, compared to our prior range of a net loss per share of $0.27 to $0.21. And we expect our adjusted EBITDA for calendar year 2023 to be positive compared to negative $32.9 million in 2022.

我們預計非 GAAP 每股淨虧損將改善至 0.23 美元至 0.19 美元，反映出我們營運虧損預期的改善，而先前的每股淨虧損範圍為 0.27 美元至 0.21 美元。我們預計 2023 年的調整後 EBITDA 將為正值，而 2022 年為負值 3,290 萬美元。

Before we open the line for questions, we'd 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) We will take our first question from Frank Louthan with Raymond James.

（操作員說明）我們將接受 Frank Louthan 和 Raymond James 提出的第一個問題。

Just following up on the guidance. Any change in the longer-term metrics you gave at the Analyst Day, particularly the free cash flow guide from 2024? And then to follow up on the OpEx declines, how much further can that -- can we see that decline? And what's sort of a good run rate for that, going forward?

只是按照指導進行跟進。您在分析師日提供的長期指標（尤其是 2024 年的自由現金流指南）有何變化？然後，為了跟進營運支出的下降，我們能看到下降的程度嗎？未來的良好運作率是多少？

Yes. I think if you look at the sort of outlook, particularly with respect to cash flow that we gave back on the Investor Day, I think that is still intact, if we look towards 2024 on our cash flow basis, we would love to be breakeven-ish on a cash basis.

是的。我認為，如果你看看這種前景，特別是我們在投資者日返還的現金流方面，我認為這仍然完好無損，如果我們以現金流為基礎展望 2024 年，我們希望能夠實現收支平衡-以現金為基礎。

On the OpEx side, I'm pretty happy with the cost control across the company right now. But I'll tell you, we've got -- we still have some significant benefits here. I mean it takes a while to unravel, long-term SaaS contracts and commitments. And we're still seeing that. We're still reaping benefits there. And we've done -- I think a pretty good job of putting business model, rubrics in place to control the head count and control the operating models for our teams. So that going forward, we don't expect OpEx to grow nearly as fast as the top line. And I think that's going to be the key for us.

在營運支出方面，我對目前整個公司的成本控制非常滿意。但我會告訴你，我們仍然有一些顯著的好處。我的意思是，需要一段時間才能解除長期 SaaS 合約和承諾。我們仍然看到這一點。我們仍然在那裡獲得好處。我認為我們已經完成了很好的工作，建立了商業模式，並制定了控制人員數量和團隊運作模式的規則。因此，展望未來，我們預期營運支出的成長速度不會與收入成長速度一樣快。我認為這將是我們的關鍵。

We will take our next question from Jonathan Ho with William Blair.

我們將回答 Jonathan Ho 和 William Blair 提出的下一個問題。

Just wanted to get a little bit more color on what you're seeing, in terms of the spending environment and some of the budget tightening? That's the first question.

只是想對您所看到的支出環境和預算緊縮的情況有更多了解嗎？這是第一個問題。

Yes. It's super interesting. We're seeing budget tightening in some of our accounts that leads to -- that can lead to vendor consolidation. They don't want to manage as many vendors. That tends to be good news for us because as the performance leader in almost all of those deals, they tend to want Fastly to be part of their solution, even if they stick with a multi-vendor play.

是的。超有趣。我們看到一些帳戶的預算緊縮，這可能會導致供應商整合。他們不想管理那麼多供應商。這對我們來說往往是個好消息，因為作為幾乎所有這些交易中的績效領導者，他們往往希望 Fastly 成為他們解決方案的一部分，即使他們堅持多供應商合作。

There are some cases where we've seen deals taking a little longer to close as more approvals are needed. I think that might be the nature of the current economic environment that we're in. And we haven't seen those deals dissolve. We've seen them take us slightly longer than usual, but we're tracking that very carefully, kind of -- I might have a little bit more interesting information next quarter on it. But we haven't really been too worried about it so far, but we're noticing something.

在某些情況下，我們發現交易需要更長的時間才能完成，因為需要更多的批准。我認為這可能是我們目前所處經濟環境的本質。而且我們還沒有看到這些交易消失。我們發現它們花費的時間比平常稍長，但我們正在非常仔細地跟踪，下個季度我可能會得到更多有趣的資訊。但到目前為止我們還沒有真正太擔心它，但我們注意到了一些事情。

Got it. And just as a follow-up, how should we think about where you're growing in terms of the international markets? Is there a way for you to maybe help us understand what markets these are? Is there a specific vertical that you're seeing traction internationally? And how long does it sort of take for some of these contract renegotiations to take?

知道了。作為後續問題，我們該如何考慮你們在國際市場的成長？您有什麼方法可以幫助我們了解這些市場是什麼？您在國際上看到了哪些特定的垂直領域的吸引力？其中一些合約重新談判需要多長時間？

Sure. We see -- we've been pushing on our international go-to-market for sure, and that drives local business with local traffic in those expanding regions for us. But what is interesting and what is causing some of our models to shift a tiny bit is, we've got large multinationals who are successfully penetrating new regions themselves. And they're using Fastly to partner to deliver that content.

當然。我們看到 - 我們肯定一直在推動我們的國際市場進入，這為我們在這些不斷擴張的地區推動了本地業務和本地流量。但有趣的是，導致我們的一些模式發生微小變化的是，我們有一些大型跨國公司本身正在成功地滲透到新的地區。他們正在使用 Fastly 來合作交付該內容。

We see it in media largely. And I think it's really good news. It's helping us grow into those markets and modernize our Infrastructure and our -- or I should say, mature our Infrastructure. And that's what leads to those contract negotiations because with more traffic, we're able to negotiate and peer more effectively in those regions, and that improves the margin for all of our traffic in that region, not just the multinationals but the local traffic as well. It can take us a little bit a quarter, but more likely probably 6 months. It doesn't take a full year, generally speaking, because those contracts have a much tighter turn on renegotiation.

我們主要在媒體上看到它。我認為這確實是個好消息。它正在幫助我們進入這些市場，並使我們的基礎設施現代化，或者我應該說，使我們的基礎設施更加成熟。這就是導致合約談判的原因，因為有了更多的流量，我們就能夠在這些地區更有效地進行談判和同行，這提高了我們在該地區所有流量的利潤率，不僅是跨國公司，還包括本地流量優異地。我們可能需要一個季度的時間，但更可能需要 6 個月的時間。一般來說，不需要一整年，因為這些合約的重新談判難度更高。

We will take our next question from James Fish with Piper Sandler.

我們將回答詹姆斯·菲什和派珀·桑德勒提出的下一個問題。

Nice quarter here. Todd, maybe for you. Channel partner deal registration up 3x year-to-date. Can you just talk about what those channel partners are leading with between delivery, that tends to be more self-serve versus security understanding you gave some of those metrics there. And really, the crux is kind of what kind of economics you're seeing versus the traditional Fastly model? And then I've got a follow-up for Ron.

這裡不錯。托德，也許適合你。今年迄今為止，通路合作夥伴交易登記數量增加了 3 倍。您能否談談這些通路合作夥伴在交付之間領先的情況，這往往更加自助，而不是您在那裡提供的一些指標的安全理解。事實上，關鍵在於與傳統的 Fastly 模型相比，您所看到的經濟效益如何？然後我有羅恩的後續行動。

Yes, no worries. Our partner community is largely -- it historically been around the security business. And we're starting to see that branch out from just security to them being able to operate across the portfolio, which is awesome. And that's been a big help, especially new partners that we're bringing on board, they're capable of operating and in some cases, have a much broader expertise.

是的，不用擔心。我們的合作夥伴社群主要是－歷史上一直圍繞著安全業務。我們開始看到從安全性擴展到能夠在整個產品組合中進行操作，這真是太棒了。這是一個很大的幫助，特別是我們引入的新合作夥伴，他們有能力運營，在某些情況下，擁有更廣泛的專業知識。

And that's why for me, the jump of partners in the program up to 55 really matters. I think that is a broadening of the expertise of our partner community. And I think we'll also help customers, who engage with those partners on board faster, which is an important metric to our business.

這就是為什麼對我來說，該計劃中的合作夥伴數量增加到 55 名確實很重要。我認為這擴大了我們合作夥伴社群的專業知識。我認為我們還將幫助客戶更快地與這些合作夥伴互動，這是我們業務的重要指標。

And the other thing is just on the geographic side. We've got our traditional partner program, before the revamp was really heavily focused in the U.S. We're seeing it start to ramp up outside of the U.S., and that's helping quite a bit. And I should say the partnership with the cloud providers helps that move a little faster. In some cases, it's easier for partners to onboard because they're already operating through a cloud marketplace, and that is a nice synergy for them and it's valuable for us as well. It lowers our operating costs.

另一件事只是在地理方面。我們有傳統的合作夥伴計劃，在改革之前主要集中在美國。我們看到它開始在美國以外的地區增加，這很有幫助。我應該說，與雲端供應商的合作有助於加快這一進程。在某些情況下，合作夥伴更容易加入，因為他們已經透過雲端市場進行運營，這對他們來說是一個很好的協同效應，對我們來說也很有價值。它降低了我們的營運成本。

Got it. And not surprised to see the top 10 up, just you guys own the relationships with those top 10 customers, and it's a bit of a double-edged sword, especially as you think about the history of this space. So I guess, how are you guys trying to mitigate some of that risk around those top 10 customers? Are you looking to sign those customers for longer contracts? And also, Ron, any puts and takes on '24 to think about understanding you're not going to guide here for it specifically, but especially as we start to think about how this Packaging can kind of impact growth rates moving forward?

知道了。看到前 10 名的上升並不奇怪，只有你們擁有與前 10 名客戶的關係，這是一把雙刃劍，特別是當你考慮這個領域的歷史時。所以我想，你們是如何努力減輕前 10 名客戶的一些風險的呢？您是否希望與這些客戶簽訂更長的合約？另外，羅恩，關於 24 的任何投入和承擔都需要考慮一下，您不會在這裡專門進行指導，但特別是當我們開始考慮這種包裝如何影響未來的增長率時？

I'll tell you, I'm proud of the growth in the top 10 accounts. And we take that very seriously at Fastly. The largest, the most sophisticated users of this tech, they trust Fastly, and they're leaning into the platform more and more strategically, which is a good thing.

我告訴你，我對前 10 名帳戶的成長感到自豪。 Fastly 非常重視這一點。這項技術最大、最成熟的用戶信任 Fastly，並且越來越有策略地傾向於該平台，這是一件好事。

The only way that I look to combat that is through enterprise customer acquisition, especially large strategic customers. I have -- we love engaging with those large customers. I have no interest in doing anything but growing those accounts as fast as we can and adding more and more technology to those partnerships. But it's a long-term mitigation that has to come through customer acquisition, especially differentiated vertical customer acquisition. And that's why we're so focused on that. That's why we mentioned some of the expansion verticals, especially e-commerce expansion verticals that we're focused on.

我認為解決這個問題的唯一方法是透過企業客戶獲取，尤其是大型策略客戶。我有—我們喜歡與那些大客戶打交道。我沒有興趣做任何事情，只是盡可能快地增加這些帳戶，並為這些合作夥伴關係添加越來越多的技術。但這是一種長期的緩解措施，必須透過客戶獲取來實現，尤其是差異化的垂直客戶獲取。這就是為什麼我們如此關注這一點。這就是為什麼我們提到了一些垂直擴展，尤其是我們關注的電子商務擴展垂直。

I think looking to '24, and we haven't really shared our '24 guidance. We talked a little bit about some of the cash flow expectations at our Investor Day. We will share that as we've historically done on our Q4 call in February. I think what I would say is I think we're excited about the progress to date. We continue to believe in our ability to outperform the market continuing into 2024.

我認為展望 24 年，我們還沒有真正分享我們的 24 年指導。我們在投資者日討論了一些現金流預期。我們將像往常一樣在 2 月的第四季電話會議上分享這一點。我想我想說的是，我們對迄今為止的進展感到興奮。我們仍然相信我們有能力在 2024 年繼續跑贏大盤。

We will take our next question from Rishi Jaluria with RBC Capital Markets.

我們將回答 RBC 資本市場 Rishi Jaluria 提出的下一個問題。

This is Richard Poland on for Rishi Jaluria. So I guess first one, just -- any sense for how much of that top 10 account expansion was on the traffic side versus a cross-sell of the broader portfolio, maybe getting more security products in there? Just any color around kind of the breakdown of that?

我是里希·賈魯裡亞 (Rishi Jaluria) 的理查德·波蘭 (Richard Polish)。所以我想第一個，只是- 與更廣泛的產品組合的交叉銷售相比，排名前10 的帳戶擴展中有多少是在流量方面，也許會在那裡獲得更多的安全產品，這有什麼意義嗎？只是任何圍繞該故障的顏色嗎？

It is a good question. We don't disclose it, although we do track it. The peak in international traffic that came from the large multinationals, that's largely traffic expansion. But there are new use cases being added with those folks all the time. It's hard for us to disclose details on that. Maybe we'll look and see if there's something that we can share in the longer term. Anything you'd add there?

這是一個好問題。儘管我們確實跟踪它，但我們不會透露它。來自大型跨國公司的國際流量高峰主要是流量擴張。但這些人一直在添加新的用例。我們很難透露這方面的細節。也許我們會看看是否有一些可以長期分享的東西。您有什麼要補充的嗎？

I mean the only thing I'd add, I think as you look at that growth, I mean vendor consolidation that we saw at one of our largest customers, clearly was a contributor in that concentration. I think as Todd said earlier, I think as we look forward, to the benefit from some of the sales and marketing, the Packaging and the Channel, if that accelerates new customer acquisition. That should be a countermotion to the expansion we're going to continue to see, particularly in our largest customers. That you see in that top 10 number.

我的意思是我要補充的唯一一點，我認為當你看到這種成長時，我的意思是我們在最大的客戶之一看到的供應商整合顯然是這種集中的貢獻者。我認為正如托德之前所說，我認為我們期待從一些銷售和行銷、包裝和管道中受益，如果這能加速新客戶的獲取。這應該是我們將繼續看到的擴張的反作用，特別是在我們最大的客戶中。你在前 10 名中看到的。

That's very helpful. And then just a quick follow-up. On the security portfolio. I think if I recall correctly, the bot management solution was still in beta as of last quarter. So any update there and just kind of how the progress of the expansion of the security portfolio has gone?

這非常有幫助。然後進行快速跟進。關於安全投資組合。我想如果我沒記錯的話，機器人管理解決方案截至上個季度仍處於測試階段。那麼有什麼更新嗎？安全產品組合的擴展進度如何？

Yes, that's great. Our bot product is -- we have like a very large number of folks on the beta, it's going limited availability this quarter. I hope to actually be able to close some deals on it this quarter, and then GA in the first half. We've had amazing success. I've been really happy with how many customers have leaned in to the beta and are helping us really codevelop that solution and got one more feature to check off and it will become available to customers and to our sales team to start closing deals.

是的，那太好了。我們的機器人產品是－我們有很多人在測試，本季它的可用性有限。我希望本季能夠真正完成一些交易，然後在上半年正式上市。我們取得了驚人的成功。我非常高興有這麼多客戶選擇了測試版，並幫助我們真正共同開發該解決方案，並獲得了一項可供檢查的功能，它將可供客戶和我們的銷售團隊開始完成交易。

So I'm super excited about that. We're also looking at a couple of other important areas on the security side. Productization of the -- potential productization, I should say, deeper DDoS analytics, visualization and services, as well as a deeper feature set in API security, it's become really clear to us that the buyer in this space that's looking for strategic edge partner and CDN, security, edge compute, et cetera, they're looking for a suite, a security suite that includes Bot, DDoS, next-gen WAF and API security. And we plan on pushing hard on all of those components.

所以我對此感到非常興奮。我們也正在研究安全方面的其他幾個重要領域。我應該說，潛在的產品化，更深入的 DDoS 分析、視覺化和服務，以及 API 安全方面更深入的功能集，我們非常清楚，這個領域的買家正在尋找戰略優勢合作夥伴和CDN、安全性、邊緣運算等等，他們正在尋找一個套件，一個包含Bot、DDoS、下一代WAF 和API 安全性的安全套件。我們計劃大力推動所有這些組件。

We will take our next question from Will Power with Baird.

我們將接受貝爾德意志力的下一個問題。

I guess a couple. Maybe just starting on competition. I mean you kind of noted, and I guess we've seen a couple of smaller players selling off contracts and I guess, exiting the business. I just wondered more broadly kind of what you're seeing from a pricing environment, at least in the U.S., it sounds like international pricing is helping probably overall. But just any kind of color as to kind of how the competitive environment is looking today?

我猜是一對。也許才剛開始參加比賽。我的意思是你有點注意到了，我想我們已經看到一些較小的參與者出售合同，我想，退出該業務。我只是想知道您從定價環境中看到的更廣泛的情況，至少在美國，聽起來國際定價可能總體上有所幫助。但今天的競爭環境是什麼樣子的呢？

Yes. I think from a pricing perspective, as we said, the international mix, we do have slightly favorable pricing relative to kind of the major markets in the U.S. and EU. And that really provided, if you will, some strength kind of in the quarter-to-quarter pricing. I'd say generally in the U.S., the trends has been generally in line with our long-term trend.

是的。我認為從定價的角度來看，正如我們所說，國際組合相對於美國和歐盟的主要市場，我們的定價確實稍微有利。如果你願意的話，這確實為季度定價提供了一些優勢。我想說，整體而言，在美國，趨勢與我們的長期趨勢基本一致。

We did have some deceleration in the first half from some of the vendor consolidation. And I would say outside of that international or if you look at it by market, it's generally been returned to more of those long-term trends. We haven't seen any acceleration, and we still see a good pricing environment, I think, displaying across the industry.

上半年，由於一些供應商整合，我們確實出現了一些減速。我想說的是，在國際市場之外，或者如果你從市場角度來看，它通常會回歸到更多的長期趨勢。我們沒有看到任何加速，但我認為，我們仍然看到整個行業都呈現出良好的定價環境。

Okay. And then I guess, Ron, just on the gross margin comments, it sounds like some headwinds just given international traffic in Q4. But how would you kind of frame up how to think about gross margin progression next year? I mean, I know you've generally been expecting it to rise, but how quickly do you get kind of international kind of behind you and back kind of maybe on the targets where you were?

好的。然後我想，羅恩，就毛利率而言，考慮到第四季度的國際流量，這聽起來像是一些逆風。但您會如何思考明年的毛利率成長？我的意思是，我知道你普遍預期它會上升，但是你多久能得到某種國際性的支持，並支持你所在的目標？

Yes. I think if you look at kind of that time line, I mean, I think the medium- to long-term gross margin dynamics are still intact. And I think the 80% gross margin, that we had mentioned at the Investor Day, in that medium- to long-term, our incremental gross margins are intact.

是的。我認為，如果你看看那個時間線，我的意思是，我認為中長期毛利率動態仍然完好無損。我認為，我們在投資者日提到的 80% 毛利率，從中長期來看，我們的增量毛利率是完好無損的。

I think if you look at that gross -- incremental gross margins that we've seen the last 4 quarters have been above 60%, compared to the teens kind of early 2020. I think as we go through that contract negotiations, that's probably a couple of quarters work. I think we generally, in 2024, address most of those headwinds and get back to that medium to long-term market targets that we've laid out previously.

我認為，如果你看看過去 4 個季度的毛利率增量，與 2020 年初的十幾歲相比，毛利率已經超過 60%。我認為，當我們進行合約談判時，這可能是幾個季度的工作。我認為，我們總體上會在 2024 年解決大部分不利因素，並回到我們先前製定的中長期市場目標。

We will take our next question from Tim Horan with Oppenheimer.

我們將回答蒂姆·霍蘭和奧本海默提出的下一個問題。

Can you talk a little bit about the compute products, what customers are using it for? And why are they using you? And any color when that kind of starts to move the revenue needle?

您能談談計算產品以及客戶使用它的用途嗎？他們為什麼要利用你？當這種類型開始推動收入時，有什麼顏色嗎？

We missed the first part of that. Could you repeat the question?

我們錯過了第一部分。你能重複一下這個問題嗎？

Yes, I apologize. Can you talk about which compute products your customers are using? What are they using it for? And why are they using you guys? And when do you might move the needle?

是的，我道歉。您能談談您的客戶正在使用哪些運算產品嗎？他們用它做什麼？他們為什麼要利用你們？什麼時候可以採取行動？

Yes. Great question. The customer -- we track our compute business on customer acquisition, people tend to come to Fastly because we are really delivering freedom to developers, especially with a technology called (inaudible) that allows them to compile their own language and run it on the Fastly platform.

是的。很好的問題。客戶－我們在客戶獲取方面追蹤我們的運算業務，人們傾向於使用Fastly，因為我們確實為開發人員提供了自由，特別是使用一種名為（聽不清楚）的技術，該技術允許他們編譯自己的語言並在Fastly 上運行它平台。

You saw there was a release, I think it's in the supplement of our Go SDK. And I think that gives you a real sense of supporting languages that developers are -- that are top of mind for developers, that give them the freedom to go and build server-less components at the edge.

你看到有一個版本，我認為它是在我們的 Go SDK 的補充中。我認為這讓您真正感受到支援開發人員所使用的語言——這是開發人員最關心的，這讓他們可以自由地在邊緣建立無伺服器元件。

The second thing is people come in the Fastly to deliver use cases that are already proven out, and that's a big deal, especially around personalization, shopping cart management, content recommendation, et cetera. That's been really a big push there. And from a vertical point of view, there's a very strong focus from high-tech companies who are -- they tend to be the most sophisticated, they tend to get -- be able to get a lot out of it very quickly, especially with pretty mature documentation and developer enablement from Fastly, in part thanks to the Glitch acquisition.

第二件事是人們進入 Fastly 來交付已經被證明的用例，這是一件大事，特別是在個人化、購物車管理、內容推薦等方面。這確實是一個很大的推動力。從垂直的角度來看，高科技公司非常關注這些公司——它們往往是最先進的，他們往往能夠——能夠很快地從中獲得很多成果，特別是在Fastly 相當成熟的文檔和開發人員支持，部分歸功於Glitch 的收購。

And I think that's what brings folks to the Fastly program. It's really an organic developer-first motion. I plan on tracking this business largely in customer acquisition through next year. As it's still truly in incubation, but I think we're going to start to see it hit the -- in some material way hit the revenue line. And I hope by the tail end of '24 and '25, but we'll see.

我認為這就是人們加入 Fastly 計劃的原因。這確實是一個有機的開發者優先動議。我計劃明年主要在客戶獲取方面追蹤這項業務。因為它仍然處於真正的孵化階段，但我認為我們將開始看到它以某種實質的方式達到收入線。我希望到 24 和 25 年底，但我們拭目以待。

Great. And can you just give us some kind of revenue breakdown now, if possible, like on media delivery or application delivery? Or any other color would be great.

偉大的。如果可能的話，您現在能否給我們某種收入細分，例如媒體交付或應用程式交付？或者任何其他顏色都會很棒。

Yes. We haven't provided that breakdown between media and other delivery across the verticals in our revenue breakdown. Sorry about that.

是的。我們沒有在收入細分中提供跨垂直行業的媒體和其他交付之間的細分。對於那個很抱歉。

We will take our next question from Rudy Kessinger with D.A. Davidson.

我們將回答魯迪·凱辛格和 D.A. 提出的下一個問題。戴維森。

I guess just with those smaller CDN players exiting the business in the quarter, did you pick up any material business from these smaller players that exited?

我想隨著那些較小的 CDN 玩家在本季度退出該業務，您是否從這些退出的較小玩家那裡獲得了任何實質業務？

We do pick up -- we've seen a few already move over, and we've got quite a few additionally already in the pipeline. Those folks have contracts. And so, what really I think -- I think the real pattern here is that as their contracts come due, they tend to stick their head up and make a new vendor selection, that's really good news for us. We saw with Digital Turbine, those guys -- pretty sophisticated group, they were able to move quickly. I'm hoping that we're going to see more of that, really Q4 and Q1 on the new customer acquisition side.

我們確實開始行動了——我們已經看到一些已經轉移，而且我們還有很多已經在準備中。這些人都有合約。所以，我真正的想法是——我認為真正的模式是，當他們的合約到期時，他們往往會昂首闊步，選擇新的供應商，這對我們來說確實是個好消息。我們在數位渦輪機中看到，這些人——相當複雜的群體，他們能夠快速行動。我希望我們能在第四季和第一季看到更多這樣的情況，尤其是在新客戶獲取方面。

Got it. And then just general traffic growth trends across the board? Anything to call out any material changes? Or just how is general traffic trend -- traffic growth trending?

知道了。然後只是全面的整體流量成長趨勢？有什麼需要指出的重大變化嗎？或整體流量趨勢－流量成長趨勢如何？

Yes. Traffic trends pretty -- had been sort of interesting. There have been a lot of interesting events. We're starting to see the seasonal sporting event trends. We even saw some peaks from content drops, on some of the streaming platforms. I think it's fairly close to what we were expecting with the addition of some of the international -- some additional volume on the international side. Yes.

是的。交通趨勢相當漂亮——有點有趣。發生了很多有趣的事件。我們開始看到季節性體育賽事的趨勢。我們甚至在一些串流媒體平台上看到了內容下降的一些高峰。我認為這與我們的預期相當接近，增加了一些國際業務——國際方面的一些額外數量。是的。

Yes. I think it's the normal seasonal uptick we start to see as we exit Q3, we're continuing to see this year.

是的。我認為這是我們在第三季結束時開始看到的正常季節性上升，今年我們將繼續看到這種情況。

We will take our next question from Fatima Boolani with Citi.

我們將接受花旗銀行法蒂瑪·布爾尼 (Fatima Boolani) 提出的下一個問題。

Ron, maybe these are for you. First thing, over the course of this year, you all have been very intentional about managing your installed base and sort of pruning the less economical or lower LTV type customers in your base, and that's been pretty obvious. I'm curious if you can comment on if you're sort of through the halfway point or towards the end of that process, such that we can start seeing some of the robust growth in that metric? And then just a quick follow-up, on some of the contract negotiations that you are foreshadowing for next year.

榮恩，也許這些是給你的。首先，在今年的過程中，您都非常有意識地管理您的安裝基礎，並在某種程度上修剪您的基礎中不太經濟或較低 LTV 類型的客戶，這是非常明顯的。我很好奇您是否可以評論一下您是否已完成該過程的一半或即將結束，以便我們可以開始看到該指標的一些強勁增長？然後是您為明年預示的一些合約談判的快速跟進。

Sorry, just to clarify, when you say pruning customers in the LTV space, what do you mean?

抱歉，我想澄清一下，當您說在 LTV 領域削減客戶時，您的意思是什麼？

Just in terms of managing the installed base for higher-quality customers. Just wanted to get a sense of how far down the path are you that your current installed base is high-value, high penetration opportunity versus some of the customers that you might have parted ways with over the course of the year. Just wanted to get a sense of where you are in that process? And is it mostly sort of done or you done with pruning?

只是在管理更高品質客戶的安裝基礎方面。只是想了解一下，與您在一年中可能已經分手的一些客戶相比，您當前的安裝基礎是高價值、高滲透機會，您的發展之路有多遠。只是想了解您在過程中所處的位置？是大部分都完成了還是修剪完成了？

Got it. I'll just clarify that. We haven't pruned any customers intentionally. And largely, the way that our business runs and the way our infrastructure is built and is able to organically serve customers, I think it's pretty hard. I mean it's very rare that we would find a customer that would be not a great fit.

知道了。我只是澄清一下。我們沒有刻意削減任何客戶。在很大程度上，我們的業務運作方式、基礎設施建設方式以及能夠有機地為客戶提供服務的方式，我認為這非常困難。我的意思是，我們很少會找到不合適的客戶。

When we occasionally have a need for a customer, the only time I can think of that happening are on terms of use and community guidelines. The Infrastructure at Fastly allows for us to have very efficient delivery, especially very efficient delivery of incremental traffic. And so we don't -- we haven't done any pruning. I absolutely don't intend to.

當我們偶爾需要客戶時，我唯一能想到的就是使用條款和社群準則。 Fastly 的基礎設施使我們能夠非常有效率地交付，尤其是增量流量的非常有效率的交付。所以我們沒有——我們沒有進行任何修剪。我絕對不打算這麼做。

I do believe we have an opportunity to increase the margin by changing the traffic signature of our total customer base. But the only way that we're -- the only thing we're pursuing to do that is focusing on differentiating the verticals, that we serve, so that the traffic load will be more balanced across type of day as well as the type of traffic load. And working hard to drive our customer acquisition motion into regions where we have good infrastructure to be able to serve. And so as far as improving the traffic mix on the platform, we certainly do that. We certainly have shifted our focus, but it's -- all of that focus is on the customer acquisition side, not on the pruning side.

我確實相信我們有機會透過改變整個客戶群的流量特徵來增加利潤。但我們唯一追求的方法是專注於差異化我們所服務的垂直領域，以便流量負載在不同的日期和時間類型之間更加平衡。交通負荷。並努力推動我們的客戶獲取活動進入我們擁有良好基礎設施能夠提供服務的地區。就改善平台上的流量組合而言，我們當然會這樣做。我們當然已經轉移了我們的焦點，但所有這些焦點都集中在客戶獲取方面，而不是修剪方面。

Understood. I appreciate that. And Ron, I appreciate you're in the planning phases of 2024 right now. But some of the contract negotiations, that you're again, foreshadowing for 2024 that you're going to be addressing. Can you give us a little bit of a flavor, as to how big these body of contracts are going to be, any high-level thoughts on if these contracts may be concentrated with some of your largest customers? And any seasonality commentary at high level you can share with us, that would be really great as we think about the next 12 months.

明白了。我很感激。 Ron，我很高興您現在正處於 2024 年的規劃階段。但你再次提到的一些合約談判預示著你將在 2024 年解決這些問題。您能給我們介紹一下這些合約的規模有多大嗎？對於這些合約是否可能集中在您的一些最大客戶身上，您有什麼高層想法嗎？如果您能與我們分享任何高層次的季節性評論，當我們思考未來 12 個月時，這將非常有用。

Yes. I mean, I think starting with the seasonality, I think what we're certainly seeing this year is fairly consistent seasonal patterns. As we work through Q3, we started to see an increase in traffic. We expect us to continue to see that accelerate in Q4. I think it's reflected in our guidance. I think as you look to 2024 from seasonality, I think, again, we expect the typical seasonal patterns to continue. Q1 typically is flat to down a few percentage points.

是的。我的意思是，我認為從季節性開始，我認為今年我們肯定會看到相當一致的季節性模式。當我們進入第三季時，我們開始看到流量增加。我們預計第四季將繼續加速。我認為這反映在我們的指導上。我認為，當你從季節性角度展望 2024 年時，我認為，我們預計典型的季節性模式將繼續下去。第一季通常持平或下降幾個百分點。

We would expect that to continue into 2024. I think as you look to kind of customer acquisition, I think, again, there's really 2 motions, that we have that are driving that. There is the expansion and the cross-selling opportunity in our largest customers. And we continue to be really successful at that, particularly when we see vendor consolidation and we're -- there's multiple vendors, we because of our performance, gain share and are able to cross-sell additional products into those customers.

我們預計這種情況將持續到 2024 年。我認為，當你考慮如何獲取客戶時，我認為，我們確實有 2 個動議正在推動這一趨勢。我們最大的客戶有擴張和交叉銷售的機會。我們在這方面繼續取得真正的成功，特別是當我們看到供應商整合並且我們有多個供應商時，我們由於我們的業績而獲得了份額，並且能夠向這些客戶交叉銷售其他產品。

And then our new customer acquisition engine with a lot of the work we're doing across packages, as well as the channel. We really expect that to sort of drive an acceleration in new customers in 2024. So I think you're going to see both of those motions driving the performance in 2024, both the expansion motion, which we've consistently done well and the new activity is really driving acceleration of new customer.

然後是我們新的客戶獲取引擎，其中包括我們跨套餐和管道所做的大量工作。我們確實預計這將在 2024 年推動新客戶的加速成長。因此，我認為您將看到這兩項舉措都將推動 2024 年的業績，包括我們一直做得很好的擴張舉措和新的舉措。活動確實推動了新客戶的加速成長。

We will take our next question from Tom Blakey with KeyBanc Capital Markets.

我們將回答 KeyBanc Capital Markets 的 Tom Blakey 提出的下一個問題。

I just -- perfect setup there, Ron, in terms of the channel, you discussed some highlights in your press release this morning -- this afternoon. Any color, Todd, you want to provide for us so you can check the sustainability here? What are the biggest changes that you've implemented, in terms of this dynamic growth you're seeing of late? And I have a follow-up for Ron.

我只是——完美的設置，羅恩，就頻道而言，你在今天早上——今天下午的新聞稿中討論了一些亮點。托德，您想為我們提供任何顏色，以便您可以在這裡檢查可持續性嗎？就您最近看到的動態成長而言，您實施的最大變更是什麼？我還有羅恩的後續行動。

Yes. I think -- look, it is still early. I hope to have hundreds of partners driving business for Fastly. And more importantly, delivering services that allow our customers to move more quickly to adopt Fastly technology more rapidly. .

是的。我想——看，現在還早。我希望有數百個合作夥伴為 Fastly 推動業務。更重要的是，提供的服務使我們的客戶能夠更快地採用 Fastly 技術。 。

I'd say from a trend point of view, I just think it's an underserved space. There's a lot of systems integrators with high software specialty. They're working very closely with teams that are building out digital experiences and they haven't had the ability to partner closely with an edge cloud provider, especially a performance leader in CDN. And so we've had good reception to this new partner program. We'll be looking and viewing it for next year to see a way to make it better. But so far for me, the trends are what I want to see. This is moving in the right direction, but I would say, for sure, partner acquisition and deal rate philosophy are trending in the right direction, but for sure, we're planning to ramp them hard in 2024.

我想說，從趨勢的角度來看，我只是認為這是一個服務不足的領域。有很多具有較高軟體專業性的系統整合商。他們正在與建立數位體驗的團隊密切合作，但他們沒有能力與邊緣雲端供應商密切合作，尤其是 CDN 領域的效能領導者。因此，我們對這個新的合作夥伴計劃反應良好。我們將在明年對其進行研究和觀察，以找到使其變得更好的方法。但到目前為止對我來說，趨勢就是我想看到的。這正在朝著正確的方向發展，但我想說，可以肯定的是，合作夥伴收購和交易率理念正朝著正確的方向發展，但可以肯定的是，我們計劃在 2024 年大力推動它們。

Does that include -- just a quick follow-up before I ask Ron the question. Does that include like enterprise caliber customers? And what are the -- why is this kind of growth unique to Fastly. And what are the incentives on -- Sorry, just a lot of growth here and a big opportunity. And typically, CDN doesn't benefit from the channel.

這是否包括——在我問羅恩這個問題之前，快速跟進一下。這包括類似企業級的客戶嗎？為什麼這種成長是 Fastly 所獨有的？激勵措施是什麼——抱歉，這裡有很大的成長和巨大的機會。通常情況下，CDN 不會從該管道中受益。

Yes. And I really think that artifact of just the way the first few entrants in to this product space have operated. I think looking at the market now, there's so much software spend that's already going through the cloud marketplaces.

是的。我真的認為這個產品正是最初進入這個產品領域的幾個人的運作方式的產物。我認為看看現在的市場，有大量的軟體支出已經通過雲端市場。

Systems integration know how to operate that and operationalize deals, big and small. Through those systems and direct to vendors, we offer both options. For me, there's one other twist, which is the ability. The flexibility in that channel program matters. These -- our channel partners can operate in a traditional channel sales motion, but also in an agency model, that flexibility matters.

系統整合知道如何操作並實施大大小小的交易。透過這些系統並直接面向供應商，我們提供這兩種選擇。對我來說，還有另一個轉捩點，那就是能力。此通路計畫的靈活性很重要。這些－我們的通路夥伴可以以傳統的通路銷售方式運作，也可以以代理模式運作，靈活性很重要。

And the way that we've operationalized that, I think, is important. We're also engaging with partners who are really on the technology consulting side for the first time. And those engagements, although it's early days, I think, have a lot of potential upside as well. And those are like technology consultants largely. But I guess my point of view, and I think this will play out in the next 12 months, is that this has just been an underserved part of the market. And by focusing here, we have an opportunity to gain the attention of the channel community.

我認為，我們的運作方式很重要。我們也首次與真正從事技術諮詢的合作夥伴進行合作。我認為，這些合作雖然還處於早期階段，但也有很多潛在的好處。這些人很大程度就像是技術顧問。但我想我的觀點是，這只是市場中服務不足的部分，我認為這將在未來 12 個月內發揮作用。透過專注於此，我們有機會獲得通路社群的關注。

Very helpful. And then Ron, on the 50% channel revenue growth, just all the requisite questions there over what period of time, what percentage of revenue here, even if it's a range and where you kind of expect that to head in the coming year or 2? That would be helpful.

很有幫助。然後羅恩，關於 50% 的頻道收入增長，只是所有必要的問題，在什麼時期內，這裡的收入百分比是多少，即使它是一個範圍，以及您預計未來一兩年的發展方向？那會有幫助的。

The 50% channel growth ?

50% 的通路成長？

You talked about revenue channel growth, just over what period of time is that?

您談到了收入管道的成長，那是在什麼時期？

It's program to date year-over-year.

這是逐年更新的計畫。

Okay. And where are we in terms of a percentage of revenue, where do you expect that to go? Todd kind of spoke positively there. Is that obviously going to increase -- just to give us some like level set here would be helpful.

好的。就收入百分比而言，我們處於什麼位置，您預計會走向何方？托德在那裡發表了積極的演講。這顯然會增加嗎？只要給我們一些類似的水平設定就會很有幫助。

So I think what I would say is, we haven't given the specific percentage of revenue but we do expect it to continue to grow as a percentage of revenue. I think, in terms of really gaining traction and being a contributor, we see that really gaining traction in 2024.

所以我想我想說的是，我們沒有給出具體的收入百分比，但我們確實預計它佔收入的百分比將繼續增長。我認為，就真正獲得吸引力和成為貢獻者而言，我們看到 2024 年才真正獲得吸引力。

A lot of the work signed up and (inaudible) happened this year, and we expect to see that grow as a contributor to our overall revenue in 2024.

今年簽署並（聽不清楚）進行了大量工作，我們預計這些工作將在 2024 年為我們的整體收入做出貢獻。

And we will take our final question from Madeline Brooks with Bank of America.

我們將接受美國銀行馬德琳布魯克斯的最後一個問題。

Just a quick one for me here. It looks like from an edge compute standpoint about a lot of positive signals at the Packaging motion. So just want to marry that quickly to the budget comments and the landscape you guys are seeing with the slight weakness. And I just want to know, and I apologize if this has been asked, I think there are a few calls, but -- why do you think it's hitting Fastly now versus other companies earlier? And can you call out any specific area that's impacted more versus less?

我在這裡簡單介紹一下。從邊緣運算的角度來看，包裝運動似乎有很多正面的訊號。因此，我只想盡快將其與預算評論和你們所看到的略有弱點的情況結合起來。我只是想知道，如果有人問這個問題，我很抱歉，我認為有一些電話，但是 - 為什麼你認為它現在比其他公司更早地衝擊 Fastly？您能否指出受影響較大或受影響較小的任何特定領域？

Sure. On the compute side, I feel like the momentum is really good for us right now. I feel like -- you do need a critical amount of feature set and functionality, before developers can really reach the kind of outcomes that they care about, running their services at higher cost, dramatically improving performance and user experience, being able to build sustainable solutions and pull the appropriate workloads from their core into an edge service environment, that will have the kind of performance of kind of user experience improvement that they want.

當然。在計算方面，我覺得現在的勢頭對我們來說真的很好。我覺得——在開發人員能夠真正達到他們關心的結果、以更高的成本運行他們的服務、顯著提高性能和用戶體驗、能夠構建可持續發展之前，你確實需要大量的特性集和功能。解決方案並將適當的工作負載從其核心拉入邊緣服務環境，這將具有他們想要的使用者體驗改進的效能。

And I think we're getting -- we're starting to hit our stride, which is great. I think we have opportunity here on the product side as well, not to (inaudible) but think we can simplify our offering and make it even easier for our customers to onboard and understand all the components there. So not to say that we've arrived. We're going to be on this journey for quite a while. Your second question was around the belt tightening comment in the opening. Is that correct?

我認為我們正在開始大步前進，這很棒。我認為我們在產品方面也有機會，不是（聽不清楚），而是認為我們可以簡化我們的產品，讓我們的客戶更容易上手並理解那裡的所有組件。所以並不是說我們已經到達了。我們將在這段旅程中度過相當長的一段時間。你的第二個問題是圍繞著開場的勒緊褲腰帶的評論。那是對的嗎？

Yes, that's correct.

對，那是正確的。

Yes, I guess we may have briefly mentioned it already. I think what we're seeing as our customers' budgets, feel a little pinch to them. That certainly drives vendor consolidation. That tends to be a good thing for us as the performance leader, we tend to fare well in those engagements.

是的，我想我們可能已經簡單地提到過了。我認為我們所看到的客戶預算對他們來說有點緊張。這無疑會推動供應商整合。對於我們身為績效領導者來說，這往往是一件好事，我們往往在這些活動中表現良好。

We do see a little bit of slowness in the deals as vendor changes, when customers are leaving some of our competitors have come in to Fastly, changes in contracts are just getting more scrutiny requiring more sign-offs and that can delay some deals. So we've seen a few deals that have taking a little longer to close than we'd like. But we'll see, I think I mentioned this earlier, like, I think we might have more of a complete perspective of that next quarter. Yes.

隨著供應商的變化，我們確實看到交易有點緩慢，當客戶離開我們的一些競爭對手已經進入Fastly 時，合約的變化只會受到更多的審查，需要更多的簽署，這可能會延遲一些交易。因此，我們發現有些交易的完成時間比我們預期的要長一些。但我們會看到，我想我之前提到過這一點，我想我們可能會對下個季度有更完整的看法。是的。

Got it. And sorry, just to quickly clarify that, Todd. So is it fair to say the deals have you launched it, but close rates have remained stable throughout this quarter?

知道了。抱歉，托德，我只是想快速澄清一下。那麼，可以公平地說，這些交易是你們發起的，但成交率在整個季度保持穩定嗎？

Yes. Well, we track a few -- we track very carefully key deals in the quarter. And we saw a few of them slip a few weeks, nothing material. I mean, some of these are 6-month engagement, and we saw them slip a few weeks. And that -- yes, that slip is largely due to additional approvals that are needed. I'd say it's anecdotal, but we'll be tracking it closely. So I might have better data for you next year -- next quarter.

是的。嗯，我們跟踪了一些——我們非常仔細地跟踪本季度的關鍵交易。我們看到其中一些滑落了幾週，沒有任何實質內容。我的意思是，其中一些是 6 個月的訂婚期，我們看到它們推遲了幾週。是的，這種失誤很大程度是由於需要額外的批准。我想說這是軼事，但我們會密切關注。因此，明年、下個季度我可能會為您提供更好的數據。

And that concludes our question-and-answer session. I will now turn the call back to Mr. Todd Nightingale for closing remarks.

我們的問答環節到此結束。現在我將把電話轉回給托德·南丁格爾先生做總結發言。

Thank you so much. I do want to take a minute to thank our employees, our customers, partners and investors. Moving forward, we will continue to remain focused on execution, bringing lasting growth to our business and delivering value to our shareholders. I'd like to close by saying how excited I am about the road ahead.

太感謝了。我確實想花一點時間感謝我們的員工、客戶、合作夥伴和投資者。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成長，並為股東創造價值。最後我想表達的是我對未來的道路感到多麼興奮。

Of course, there's 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 digital experiences are built and delivered around the world. Our customers have a real passion for Fastly solutions and employees have a real enthusiasm for our mission to make the Internet a better place, where all experiences are fast, safe and engaging. Thank you so much for the time today.

當然，還有很多工作要做，但我相信數位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 將對全球數位體驗的建構和交付方式產生重大影響。我們的客戶對 Fastly 解決方案充滿熱情，員工對我們的使命充滿熱情，即讓網路變得更美好，讓所有體驗都快速、安全且引人入勝。非常感謝您今天抽出時間。

Ladies and gentlemen, this concludes today's call, and we thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束，我們感謝你們的參與。您現在可以斷開連線。