Fastly Inc (FSLY) 2023 Q4 法說會逐字稿

Good afternoon. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Fastly Fourth Quarter 2023 earnings conference call. (Operator Instructions) Thank you. I would now like to turn the conference over to Vern Essi, Investor Relations at Fastly. Vern, Please go ahead.

午安.我叫克里斯塔，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Fastly 2023 年第四季財報電話會議。（操作員指示）謝謝。現在，我想將會議交給 Fastly 投資者關係部的 Vern Essi。弗恩，請繼續。

Thank you, and welcome everyone to our fourth quarter 2023 earnings conference call. We have Fastly CEO, Todd Nightingale; and CFO, Ron Kisling with us today. The webcast of this call can be accessed through our website, fastly.com, will be archived for one year.

謝謝大家，歡迎大家參加我們 2023 年第四季財報電話會議。我們有 Fastly 執行長 Todd Nightingale；和財務長 Ron Kisling 今天也和我們在一起。本次電話會議的網路直播可透過我們的網站 fastly.com 訪問，並將存檔一年。

Also, a replay will be available by dialing 800-770-2030 and referencing conference ID number 7543239 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.

此外，今天電話會議結束後不久，撥打 800-770-2030 並參考會議 ID 號 7543239 即可收聽重播。今天的收益新聞稿、相關財務表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）可在 Fastly 網站的投資者關係部分找到。

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

在本次電話會議中，我們將做出前瞻性陳述，包括與我們業務預期表現、未來財務表現、產品銷售、策略、長期成長和整體未來前景相關的陳述。這些聲明受已知和未知的風險、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。

For further information regarding risk factors for our business, please refer to our filings with the SEC, including our most recent quarterly report filed in Form 10-Q, filed with the SEC, and our fourth quarter 2023 earnings release and supplement for discussion of the factors that could cause our results to differ. Please refer, in particular, to the section entitled Risk Factors. We encourage you to read these documents.

有關我們業務風險因素的更多信息，請參閱我們向美國證券交易委員會提交的文件，包括我們向美國證券交易委員會提交的最新 10-Q 表季度報告以及我們 2023 年第四季度收益報告和補充文件，其中討論了可能導致我們的結果不同的因素。請特別參閱題為「風險因素」的部分。我們鼓勵您閱讀這些文件。

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

另請注意，本次電話會議中的前瞻性陳述是基於我們截至今天所掌握的資訊。除法律要求外，我們不承擔更新任何前瞻性聲明的義務。

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

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，我們今天討論的所有數字（收入除外）都將採用調整後的非 GAAP 基礎。我們的投資者關係網站上的收益報告和補充資料中提供了與最直接可比較的 GAAP 財務指標的對帳表。這些非公認會計準則指標並非旨在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 two conferences in the first quarter, the 2024 Raymond James Institutional Investor Conference in Orlando on March 4 and the Morgan Stanley Technology Media and Telecom Conference in San Francisco on March 6. With that, I’ll turn the call over to Todd. Todd?

在我們開始準備好的評論之前，請注意，我們將在第一季參加兩場會議，即 3 月 4 日在奧蘭多舉行的 2024 年雷蒙詹姆斯機構投資者會議和 3 月 6 日在舊金山舉行的摩根士丹利科技媒體和電信會議。說完這些，我會把電話轉給托德。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 fourth quarter highlights. I will then provide an update on our go-to-market efforts, customer acquisition, and product developments before I hand the call over to Ron to discuss our fourth quarter financial results and guidance in detail.

謝謝，Vern。大家好，非常感謝大家今天加入我們。首先，我將簡要總結我們的財務表現和第四季的亮點。然後，我將介紹我們的行銷工作、客戶獲取和產品開發的最新情況，然後將電話交給羅恩詳細討論我們第四季度的財務業績和指引。

I'm pleased to report that we closed out 2023 with revenue of $506 million, representing 17% year-over-year growth and coming in above the original $495 million to $505 million range we guided to one year ago. We reported record fourth quarter revenue of $137.8 million, which grew 15% year over year and 8% quarter over quarter.

我很高興地報告，我們在 2023 年的收入為 5.06 億美元，年增 17%，高於我們一年前預計的 4.95 億至 5.05 億美元的原定範圍。我們報告第四季營收達到創紀錄的 1.378 億美元，年增 15%，季增 8%。

This result came in at the lower end of our fourth quarter guidance range, driven by weaker than anticipated international traffic, offset by seasonally strong live streaming and gaming activity. Most quarters, we set a new traffic milestone at Fastly, but this quarter was special. For the first time, the Fastly platform handled more than 100 terabits per second on November 8.

這一結果處於我們第四季度預期範圍的低端，原因是國際流量低於預期，但被季節性強勁的直播和遊戲活動所抵消。大多數季度，我們都會在 Fastly 上創下新的流量里程碑，但這個季度很特別。11 月 8 日，Fastly 平台處理速度首次超過每秒 100 TB。

As part of the celebration of hitting this milestone, we've decided to retire the live traffic gauge on our website. Its original intent was to prove the viability of the Fastly platform to prospective customers as Fastly was just starting out. Obviously, we've outgrown the need for this tool and will celebrate its retirement.

為了慶祝達到這一里程碑，我們決定停止網站上的即時流量計量器。其初衷是為了向潛在客戶證明 Fastly 平台的可行性，因為 Fastly 才剛起步。顯然，我們已經不再需要這個工具了，並將慶祝它的退休。

Our customer retention efforts were stable in the fourth quarter with our LTM NRR at 113%, down slightly from Q3's 114%. Our total customer count in the fourth quarter was 3,243, which increased by 141 customers compared to Q3 and increased by 181 customers year over year.

我們的客戶保留工作在第四季度保持穩定，LTM NRR 為 113%，略低於第三季的 114%。我們第四季的客戶總數為 3,243 家，比第三季增加了 141 家，比去年同期增加了 181 家。

Enterprise customers totaled 578 in the quarter, an increase of 31 from Q3, representing the highest level of sequential growth since we acquired Signal Sciences back in 2020. Our new packaging channel program and a renewed demand gen focus are driving a change in the velocity of customer acquisition at Fastly, and this is finally starting to show up in these disclosed customer accounts.

本季企業客戶總數為 578 家，較第三季增加 31 家，創下 2020 年收購 Signal Sciences 以來的最高環比成長水準。我們的新包裝通路計畫和新的需求產生重點正在推動 Fastly 客戶獲取速度的變化，這最終開始在這些公開的客戶帳戶中體現出來。

As these customers grow with Fastly, they will fuel our revenue growth for years to come. This customer growth is also diversifying our revenue among verticals, which helps us optimize traffic across our fleet, yielding higher profitability. Our sales team has been energized by our recent success with large customer wins. Of the 31 new enterprise customers, this quarter 19 were net new to Fastly.

隨著這些客戶與 Fastly 共同成長，他們將在未來幾年推動我們的營收成長。客戶的成長也使我們的收入在垂直領域多樣化，這有助於我們優化整個機隊的流量，從而產生更高的獲利能力。我們最近成功贏得大量客戶，這讓我們的銷售團隊充滿活力。本季度，在 31 家新企業客戶中，有 19 家是 Fastly 的新客戶。

In addition, our average enterprise customer spend was $880,000, up 7% on a year-over-year basis. While these results demonstrate success in expanding wallet share with existing customers and driving customer acquisition, our journey towards expanding these efforts with a focus on product, on marketing, and go-to-market initiatives has just begun.

此外，我們的平均企業客戶支出為 880,000 美元，年增 7%。雖然這些結果表明我們在擴大現有客戶的錢包份額和推動客戶獲取方面取得了成功，但我們以產品、行銷和上市舉措為重點擴大這些努力的旅程才剛剛開始。

Our marketing team is elevating Fastly's brand with an eye towards efficient spend. This involved clever marketing campaigns at trade shows as well as digital ad campaigns to drive demand gen. We are closer than ever to delivering complete platform unification for our customers, allowing a far smoother cross-sell and onboarding with the simplicity of a single click. This will dramatically improve the customer journey in 2024, and we expect to see gains in our customer retention and expansion efforts.

我們的行銷團隊正在提升 Fastly 的品牌，注重高效支出。這包括在貿易展會上進行巧妙的行銷活動以及數位廣告活動來推動需求。我們比以往任何時候都更接近為客戶提供完整的平台統一，只需單擊即可實現更順暢的交叉銷售和入職。這將大大改善 2024 年的客戶旅程，我們預期客戶保留和擴展工作將取得成效。

In the fourth quarter, we continued our momentum in landing key new logo wins in strategic expansion verticals. Our sales teams are winning new logos in these expansion verticals with pre-built use cases. One great example of this is in social media, where we serve some of the largest players in the space and have recently won a handful of follow-on logos in this area.

第四季度，我們繼續保持良好勢頭，在戰略擴張垂直領域獲得關鍵的新標誌。我們的銷售團隊正在利用預先建立的用例在這些擴展垂直領域中贏得新的標誌。一個很好的例子是社交媒體，我們為該領域的一些最大的參與者提供服務，最近我們在該領域贏得了一些後續標誌。

This is highlighted most recently by BeReal, and their new authentic approach to social media. BeReal chose Fastly due to the power of our platform and its unique ability to quickly scale for their low-latency traffic patterns. Members of my senior staff love this platform. We're happy to have them on board. This has also led to the winning of a social media-based shopping application that is rapidly growing, leveraging our expertise in that space as well.

BeReal 最近重點強調了這一點，以及他們對社交媒體的全新而真實的詮釋方式。BeReal 選擇 Fastly 是因為我們平台的強大功能及其快速擴展低延遲流量模式的獨特能力。我的高級職員們都很喜歡這個平台。我們很高興他們能加入我們。這也使我們贏得了一款正在快速增長的基於社交媒體的購物應用程序，並充分利用了我們在該領域的專業知識。

Alongside social media, we added to our list of logos with one of the premier dating apps and are excited to pursue other dynamic traffic opportunities in similar mobile applications. We continue to penetrate new sub-verticals in e-commerce. For example, in live auctions, we recently won Phillips Auctioneers, which was a follow-on win to Sotheby's, making us a strong partner for live auctioning and its unique e-commerce website content requirements.

除了社交媒體外，我們還將其中一款頂級約會應用程式添加到我們的徽標列表中，並且很高興在類似的行動應用程式中尋求其他動態流量機會。我們繼續滲透電子商務的新垂直領域。例如，在現場拍賣方面，我們最近贏得了菲利普斯拍賣行的青睞，這是繼蘇富比之後的又一次勝利，這使我們成為現場拍賣及其獨特的電子商務網站內容要求的強大合作夥伴。

In the travel and leisure space, we continue to penetrate the gaming sub-vertical. In addition to Bally's, we added another major player in this space. And these newer verticals serve more than just grow our top line. They diversify our traffic load and provide Fastly with a smoother network and compute demand. This leads to higher infrastructure utilization and ultimately gross margin improvement.

在旅遊和休閒領域，我們繼續滲透遊戲子垂直領域。除了 Bally's 之外，我們還在該領域增加了另一個主要參與者。這些新的垂直行業不僅能增加我們的營業收入。它們分散了我們的流量負載，並為 Fastly 提供了更順暢的網路和運算需求。這將提高基礎設施利用率並最終提高毛利率。

We continue to see a tailwind from vendors who exited the space. MoxiWorks, a tech platform for real estate agents and brokers, is a great example of how we capitalize on this disruptive environment. We recently published our new annual global cybersecurity report, The Race to Adapt, uncovering the impacts of cyber-attacks on leading businesses across the globe and how 76% of businesses surveyed are planning to increase their cybersecurity budget in 2024.

我們繼續看到退出該領域的供應商帶來的順風。MoxiWorks 是一個為房地產經紀人和經紀商提供的技術平台，它是我們如何利用這種顛覆性環境的一個很好的例子。我們最近發布了新的年度全球網路安全報告《適應的競賽》，揭示了網路攻擊對全球領先企業的影響，以及 76% 的受訪企業計劃在 2024 年增加網路安全預算。

We continue to expand our security offerings to help customers counter these new threats and meet this growing demand. Fastly was also named a leader in the Forrester Wave Edge Development Platform's Q4 2023 report, highlighted by Fastly's compute platform receiving the highest possible of five out of five in 22 criteria, including vision, innovation, roadmap, pricing flexibility, and transparency.

我們將繼續擴展我們的安全產品，以幫助客戶應對這些新威脅並滿足日益增長的需求。Fastly 也在 Forrester Wave Edge 開發平台 2023 年第四季報告中被評為領導者，重點指出的是，Fastly 的計算平台在願景、創新、路線圖、定價靈活性和透明度等 22 項標準中獲得了五分滿分的最高評分。

It warms my heart that Forrester stated in its report, Fastly is an excellent fit for enterprises seeking to extend their capabilities from the public cloud with a highly performant and secure edge platform. This is exactly what Fastly can deliver. And if any enterprises out there are listening and want to extend their capabilities to the edge, please give us a call.

Forrester 在報告中指出，Fastly 非常適合那些希望透過高效能、安全的邊緣平台擴展公有雲功能的企業，這讓我感到很欣慰。這正是 Fastly 所能提供的。如果有任何企業正在傾聽並希望將其能力擴展到邊緣，請給我們打電話。

We continue to make strong improvements in our gross margins, which was 56.9% in 2023, up 330 basis points over 2022. In the fourth quarter, our gross margin was 59.2%, a 220 basis point increase year over year. And note that we recognize a one-time $2.8 million true up payment that benefited the quarter. Ron will share more details with you in a minute, but I'm extremely pleased with this result, as our gross margin with or without the true up payment hasn't been this high in almost three years.

我們的毛利率持續強勁提升，2023 年為 56.9%，比 2022 年上升 330 個基點。第四季度，我們的毛利率為59.2%，年增220個基點。請注意，我們確認了一次性 280 萬美元的實際付款，該付款使本季受益。羅恩稍後會與您分享更多細節，但我對這個結果非常滿意，因為無論是否有實際付款，我們的毛利率在近三年內都沒有這麼高過。

And while we were within striking distance of 60% in the quarter, we do hope to produce direct hits above 60% in 2024. Our team executed on controlling our variable cost of revenue especially with lower bandwidth costs compared to the third quarter on a relatively healthy traffic mix.

雖然本季我們已接近 60%，但我們確實希望在 2024 年實現 60% 以上的直接命中率。我們的團隊致力於控制我們的變動收入成本，特別是在流量組合相對健康的情況下，與第三季相比，頻寬成本較低。

Our operating loss was $37 million in 2023, less than half of the $76 million operating loss in 2022, and better than the original $53 million to $47 million operating loss guidance provided a year ago. In the fourth quarter, our operating loss was only $2.3 million, coming in better than our guidance of $10 million to $6 million.

2023 年我們的營運虧損為 3,700 萬美元，不到 2022 年 7,600 萬美元營運虧損的一半，並且好於一年前提供的 5,300 萬美元至 4,700 萬美元的原始營運虧損指引。第四季度，我們的營業虧損僅 230 萬美元，優於我們預期的 1,000 萬美元至 600 萬美元。

Additionally, we posted positive net income in the fourth quarter for the first time since Q2, 2020. Financial discipline and rigor continues at Fastly, and this quarter showcases what is possible as we stay focused on this.

此外，我們自 2020 年第二季以來首次在第四季度實現了正淨收入。Fastly 繼續堅持財務紀律和嚴謹性，本季展現了我們專注於此所能取得的成果。

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 in 2024. At the end of the fourth quarter, we brought on Kip Compton, our new Chief Product Officer. Kip brings to Fastly 25 years of senior leadership experience driving innovation, most recently as the SVP of Strategy at Cisco Networking.

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中看到的那樣，我們正在準備我們的模型來利用收入成長並在 2024 年改善我們的現金流。在第四季末，我們任命了新任首席產品長 Kip Compton。Kip 為 Fastly 帶來了 25 年推動創新的高階領導經驗，最近擔任思科網路策略資深副總裁。

In his various roles, Kip has directed strategy, technology, and investment, and has even at a prior company built a CDN for a large media organization. Under Kip's leadership, we will continue to move our product roadmap towards a more complete platform strategy, focusing on unifying, strengthening, simplifying, and always expanding Fastly's edge platform.

在擔任各種職務期間，Kip 指導過策略、技術和投資，甚至在先前的公司為大型媒體組織建立了 CDN。在 Kip 的領導下，我們將繼續推動我們的產品路線圖朝著更完整的平台策略發展，專注於統一、加強、簡化和不斷擴展 Fastly 的邊緣平台。

In the fourth quarter, we introduced multiple new features on our WAF, including agent auto-update, a simulator for debugging and testing, an anomaly signal to detect out-of-band domain requests, and simplified attack signal thresholds.

在第四季度，我們在 WAF 上引入了多項新功能，包括代理自動更新、用於調試和測試的模擬器、用於檢測帶外域請求的異常信號以及簡化的攻擊信號閾值。

One feature I want to highlight is our plugin for Hashicorp Vault. Specifically, the plugin allows customers to seamlessly access Hashicorp's Vault to store keys for customers' sites and rotate or place from Vault when needed.

我想強調的一個功能是我們的 Hashicorp Vault 插件。具體來說，該插件允許客戶無縫存取 Hashicorp 的 Vault 來儲存客戶網站的金鑰，並在需要時從 Vault 進行輪換或放置。

We released our observability page, which allows customers to monitor Fastly delivery and compute services via collections of metrics and logs. All of this can be viewed in customizable dashboard to give our customers more insight into their inventory of products and features with Fastly and those that are available for them to buy.

我們發布了可觀察性頁面，讓客戶可以透過指標和日誌集合監控 Fastly 交付和運算服務。所有這些都可以在可自訂的儀表板中查看，以便我們的客戶更深入地了解他們的產品庫存和 Fastly 的功能以及可供購買的產品和功能。

We introduced our bot mitigation solution in limited availability to select customers, and we were very encouraged by the response and the potential. We'll discuss this further with the investment community next quarter. Our new packaging motion gained momentum in 2023 and sets us up well for customer acquisition in 2024.

我們向特定客戶有限地推出了我們的機器人緩解解決方案，其反應和潛力令我們非常鼓舞。我們將在下個季度與投資界進一步討論此事。我們的新包裝動向在 2023 年獲得了發展勢頭，為我們在 2024 年獲取客戶做好了準備。

I'm pleased to share with you that more customers purchased packages from Fastly in the fourth quarter than the first nine months of 2023 combined. The success of packages gives customers reliable billing and shows their customers' reliable billing and shows their confidence in Fastly by signing up for longer term commitments.

我很高興地與大家分享，第四季度從 Fastly 購買套餐的客戶數量比 2023 年前九個月的總和還要多。套餐的成功為客戶提供了可靠的帳單，並透過簽署更長期的承諾表明了客戶的可靠帳單以及對 Fastly 的信心。

Moving on to our channel partner development, our growth continues. In 2023, deal registration more than tripled that of 2022, and we grew our partner engagement by over 65%. These partners include WWT, Presidio, GuidePoint Security, and FHI.

隨著我們的通路合作夥伴不斷發展，我們的成長仍在繼續。2023 年，交易註冊量是 2022 年的三倍多，合作夥伴參與度增加了 65% 以上。這些合作夥伴包括 WWT、Presidio、GuidePoint Security 和 FHI。

I'm very pleased with the 2023 results, but I'm even more excited about the opportunities in 2024. We established our annual guidance of 16% growth to incorporate macro uncertainties that are of course targeting to outperform that guidance with continued financial rigor, strong innovation velocity, strategically lowering the friction of our go-to-market efforts, and streamlining both our employee experience and our customer experience.

我對 2023 年的結果非常滿意，但我對 2024 年的機會感到更加興奮。我們制定了 16% 的年度成長預期，以考慮宏觀不確定性，當然我們的目標是透過持續的財務嚴謹性、強勁的創新速度、策略性地降低我們進入市場的努力中的摩擦以及簡化我們的員工體驗和客戶體驗來超越這一預期。

Organizations around the world invest incredible amounts of time and resources, building best-in-class digital experiences, only to see the value of them lost by having to compromise between performance, safety, and personalization. The solution to this has to be built on the edge, and it has to leverage all of the benefits that a best-in-class edge cloud platform brings.

世界各地的組織投入了大量的時間和資源，打造一流的數位體驗，但卻發現由於必須在性能、安全性和個性化之間做出妥協，所以它們的價值有所損失。解決此問題的方案必須建立在邊緣之上，並且必須充分利用一流邊緣雲端平台帶來的所有優勢。

At Fastly, we deliver that platform. We partner with our customers to deliver the best possible end user experience, fast, safe, and engaging without compromise. And now to discuss the financial details of the quarter and guidance, I will turn the call over to Ron. Ron?

在 Fastly，我們提供該平台。我們與客戶合作，提供最佳的終端使用者體驗：快速、安全、引人入勝且毫不妥協。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 first discuss some housekeeping items. Then I'll discuss our business metrics and financial results. And lastly, I will review our forward guidance. Note that unless otherwise stated, all financial results in my discussion are non-GAAP based. We are always focused on providing the most useful business metrics that help investors understand the fundamentals of our business and our progress toward our goals.

謝謝你，托德。感謝大家今天的出席。我首先來討論一些日常事務。然後我將討論我們的業務指標和財務結果。最後，我將回顧我們的前瞻性指引。請注意，除非另有說明，我討論的所有財務結果均非基於 GAAP。我們始終專注於提供最有用的業務指標，幫助投資者了解我們業務的基本面和我們實現目標的進展。

Beginning with the first quarter of 2024, we will discontinue disclosing quarterly NRR and DBNER, as well as our market, countries, and bandwidth statistics. We believe these were used infrequently by the investment community and candidly weren't particularly helpful in understanding our business.

從 2024 年第一季開始，我們將停止揭露季度 NRR 和 DBNER 以及我們的市場、國家和頻寬統計數據。我們認為投資界很少使用這些訊息，坦白說，這些資訊對於了解我們的業務並沒有特別的幫助。

Finally, we will begin disclosing revenue by product area, split between core, growth, and emerging products. Specifically, the core segment includes our delivery and network services. The growth segment includes our security offering. And the emerging segment includes our compute and observability offerings. And again, these will commence with our next quarter earnings release and we'll provide further details at that time.

最後，我們將開始揭露按產品領域劃分的收入，分為核心產品、成長產品和新興產品。具體來說，核心部分包括我們的配送和網路服務。成長部分包括我們的安全產品。新興領域包括我們的計算和可觀察性產品。再次強調，這些將從我們下一季的收益發布開始，屆時我們將提供更多詳細資訊。

Turning to our financial results, revenue for the fourth quarter increased 15% year over year to $137.8 million. Coming in at the lower end of our guidance range of $137 million to $141 million. Revenue from Signal Sciences products was 13% of revenue, a 25% year-over-year increase, or 24% increase excluding the impact of purchase price adjustments related to deferred revenue. Also, note that we calculate growth rates off the actual results with the percentage of revenue rounded to the nearest whole percent.

談到我們的財務業績，第四季的營收年增 15% 至 1.378 億美元。處於我們 1.37 億美元至 1.41 億美元的指導範圍的低端。Signal Sciences 產品的營收佔總營收的 13%，比去年同期成長 25%，若不計與遞延收入相關的購買價格調整的影響則成長 24%。另請注意，我們根據實際結果計算成長率，將收入百分比四捨五入到最接近的整數百分比。

In the fourth quarter, we saw traffic expansion at our major customers, coupled with healthy upsell and cross-selling activity. However, we saw weaker international traffic in the fourth quarter, a reversal from what we saw in the third quarter, resulting in lower revenue growth, but higher gross margins, which I'll touch on in a moment. Our annual revenue was $506 million, representing 17% growth over 2022, and coming in above our original guidance range of $495 million to $505 million provided one year ago.

在第四季度，我們看到主要客戶的流量擴大，同時追加銷售和交叉銷售活動也表現健康。然而，我們發現第四季的國際客流量較弱，與第三季的情況相反，導致收入成長下降，但毛利率上升，稍後我將談到這一點。我們的年收入為 5.06 億美元，比 2022 年成長 17%，高於我們一年前給出的 4.95 億美元至 5.05 億美元的原始指引範圍。

For the fourth quarter, RPO was $245 million, down 1% from $248 million in the third quarter of 2023, and up 24% from $198 million in the fourth quarter of 2022. As our consumption-based revenue model is now being augmented with predictable revenue packages, we believe that RPO will become a more meaningful indicator to the health of our business in 2024.

第四季度，RPO 為 2.45 億美元，較 2023 年第三季的 2.48 億美元下降 1%，較 2022 年第四季的 1.98 億美元成長 24%。隨著我們基於消費的收入模式現在透過可預測的收入方案得到增強，我們相信 RPO 將成為 2024 年我們業務健康狀況的更有意義的指標。

As Todd shared earlier, we had 3,243 customers at the end of the fourth quarter, of which 578 were classified as enterprise, a net increase of 31, compared to a decrease of four in the third quarter, and an increase of 22 in the fourth quarter of 2022.

正如 Todd 先前分享的，我們在第四季末擁有 3,243 名客戶，其中 578 名被歸類為企業客戶，淨增 31 名，而第三季減少了 4 名，2022 年第四季增加了 22 名。

Our trailing 12-month net retention rate was 113%, down from 114% in the prior quarter, and 119% in the year ago quarter. Our annual revenue retention rate, which we reported at fiscal year-end, was 99.2% for 2023, up from 98.9% in 2022. These figures continue to reflect our very low churn and healthy customer retention dynamic.

我們過去 12 個月的淨留存率為 113%，低於上一季的 114% 和去年同期的 119%。我們在財政年度結束時報告的年度收入保留率為 2023 年的 99.2%，高於 2022 年的 98.9%。這些數字繼續反映出我們非常低的客戶流失率和健康的客戶保留動態。

Enterprise customers accounted for 92% of total revenue on an annualized basis in both Q4 and Q3, with average enterprise customer spend of $880,000, up 3% from $858,000 in the previous quarter, and up 7% from $822,000 in Q4 of last year. Our top 10 customers comprised 40% of our total revenues in the fourth quarter of 2023, flat with their contribution in Q3, reflecting in part the impact of vendor consolidation and expansion of traffic in some of our largest customers, which also drove one customer to account for more than 10% of revenue in the fourth quarter.

以年率計算，企業客戶在第四季和第三季佔總營收的 92%，平均企業客戶支出為 88 萬美元，較上一季的 858,000 美元成長 3%，較去年第四季的 82.2 萬美元成長 7%。我們前十大客戶在 2023 年第四季占我們總收入的 40%，與第三季的貢獻持平，部分反映了供應商整合和一些最大客戶的流量擴張的影響，這也導致一家客戶在第四季度貢獻了超過 10% 的收入。

I will now turn to the rest of our financial results for the fourth quarter. Our gross margin was 59.2% in Q4, compared to 55.9% in Q3 of 2023, well above our expectations of a 100 basis point sequential increase. As I noted in my discussion of fourth quarter revenue, we saw weaker international traffic in the fourth quarter, a reversal from the stronger international traffic we saw in the third quarter, which resulted in lower revenue growth, but had a positive impact on our gross margins.

現在我將介紹我們第四季的其他財務表現。我們第四季的毛利率為 59.2%，而 2023 年第三季為 55.9%，遠高於我們預期的季增 100 個基點。正如我在討論第四季營收時所指出的那樣，第四季度國際流量較弱，與第三季強勁的國際流量形成逆轉，導致營收成長下降，但對我們的毛利率產生了積極影響。

Our team also executed on controlling our variable cost of revenue, especially with lower transit costs, with successful renegotiation of our transit rates in several international markets.

我們的團隊也控制了我們的變動收入成本，特別是降低了運輸成本，並成功地重新協商了幾個國際市場的運輸費率。

As Todd explained, we recognized the one-time $2.8 million take or pay true up payment that benefited gross margins in the quarter. Had this benefit not been reflected, gross margin would have been 58.3% in the fourth quarter. Our 2023 annual gross margin was 56.9%, up 330 basis point over 2022's gross margin of 53.6%.

正如托德所解釋的那樣，我們確認了一次性 280 萬美元的照付不議付款，這對本季的毛利率有利。如果不反映這一好處，第四季的毛利率將為 58.3%。我們的 2023 年年度毛利率為 56.9%，比 2022 年的 53.6% 毛利率上升了 330 個基點。

Discounting the benefit of the $2.8 million true up in the fourth quarter of 2023 and the $3.3 million true up in the fourth quarter of 2022, the gross margin improvement would have been 350 basis points year over year.

扣除 2023 年第四季的 280 萬美元實際收益和 2022 年第四季的 330 萬美元實際收益，毛利率年將增加 350 個基點。

I'm very pleased with the cross-functional work that took place in aligning our network capacity investments with expected traffic demand, our cost control efforts in bandwidth transit costs, and our progress in pursuing beneficial peering relationships.

我對跨職能工作感到非常滿意，這些工作使我們的網路容量投資與預期的流量需求保持一致，使我們在頻寬傳輸成本方面取得了成本控製成果，並且在追求互利對等關係方面取得了進展。

While we have made significant gains in our cost of sales, there is still room for further improvement as we scale, and we remain committed to demonstrating an 80% incremental gross margin in our financial model going forward.

雖然我們的銷售成本取得了顯著的成長，但隨著規模的擴大，仍有進一步改進的空間，我們仍然致力於在未來的財務模型中實現 80% 的增量毛利率。

Moreover, the 330 basis point improvement in gross margin year over year, coupled with 17% revenue growth, resulted in gross profit growing by $56 million, or 24% over 2022. Operating expenses were $84 million in the fourth quarter, a 5% increase compared to Q4 2022, and sequentially flat with the third quarter. Our operating expenses were lower than expected due to continued cost management efforts and fourth quarter hiring coming in slightly below our expectations.

此外，毛利率年增 330 個基點，加上營收成長 17%，導致毛利成長 5,600 萬美元，比 2022 年成長 24%。第四季營運費用為 8,400 萬美元，較 2022 年第四季成長 5%，與第三季持平。由於持續的成本管理努力和第四季度的招聘略低於我們的預期，我們的營運費用低於預期。

Recall that our sales and marketing expenses in the third quarter were impacted by one-time marketing expenses related to events and fees, which benefited the sequential comparisons and OpEx. This favorability, combined with gross profit ahead of expectations, resulted in an operating loss of $2.3 million in the fourth quarter, exceeding the high end of our operating loss guidance range of $10 million to $6 million.

回想一下，我們第三季的銷售和行銷費用受到與活動和費用相關的一次性營運費用的影響，這有利於連續比較和營運支出。這種有利因素加上超出預期的毛利，導致第四季度的營業虧損為 230 萬美元，超過了我們預計的 1,000 萬美元至 600 萬美元營業虧損範圍的上限。

For 2023, our total operating expenses were $325 million, up 5% from $308 million in 2022. Given our revenue and gross profit growth rates of 17% and 24%, respectively, we were able to leverage our lower OpEx growth to reduce our operating loss margin by more than half, from 17.7% in 2022 to 7.2%.

2023 年，我們的總營運費用為 3.25 億美元，比 2022 年的 3.08 億美元成長 5%。鑑於我們的營收和毛利成長率分別為 17% 和 24%，我們能夠利用較低的營運支出成長將營運虧損率降低一半以上，從 2022 年的 17.7% 降至 7.2%。

The majority of our OpEx progress was due to company-wide financial rigor we've discussed over the course of the year, including notable larger items, such as reducing duplicative or unnecessary SaaS and IT tools in our organization.

我們的大部分營運支出進展歸功於我們在今年討論的全公司範圍的財務嚴謹性，其中包括值得注意的較大項目，例如減少組織中重複或不必要的 SaaS 和 IT 工具。

In the fourth quarter, we reported a net profit of $1.7 million, or $0.01, per diluted share, compared to a net loss of $9.5 million, or an $0.08 loss per basic and diluted share in Q4 2022, demonstrating our ability to drive towards sustainable profit in our business.

第四季度，我們報告的淨利潤為 170 萬美元，即每股攤薄利潤 0.01 美元，而 2022 年第四季度的淨虧損為 950 萬美元，即每股基本虧損和攤薄虧損 0.08 美元，這表明我們有能力推動業務實現可持續盈利。

Our adjusted EBITDA was positive in the fourth quarter, coming in at $11.5 million, compared to negative $0.1 million in Q4 2022. I'm pleased to report that our 2023 full-year EBITDA was positive $15.5 million, compared to negative $32.9 million in 2022.

我們第四季的調整後 EBITDA 為正值，達到 1,150 萬美元，而 2022 年第四季為負 10 萬美元。我很高興地報告，我們 2023 年全年 EBITDA 為正 1550 萬美元，而 2022 年為負 3290 萬美元。

Turning to the balance sheet, we ended the quarter with approximately $329 million in cash equivalent, marketable securities and investments, including those classified as long term. We continued our repurchase of convertible debt principle in the fourth quarter, resulting in a reduction of our convertible debt principle balance by more than 50% from $713.8 million at the end of 2022 to $346.5 million at the end of 2023. And specifically in the fourth quarter, we repurchased $130.9 million in principal amount of our convertible notes for $113.6 million in cash or approximately $0.87 on the dollar.

談到資產負債表，截至本季末，我們擁有約 3.29 億美元的現金等價物、有價證券和投資，包括歸類為長期的投資。我們在第四季繼續回購可轉換債務本金，導致我們的可轉換債務本金餘額從 2022 年底的 7.138 億美元減少 50% 以上至 2023 年底的 3.465 億美元。具體來說，在第四季度，我們以 1.136 億美元現金或約 0.87 美元回購了 1.309 億美元的可轉換票據本金。

Coupled with a larger repurchase back in May, our 2023 repurchases totaled $367.3 million in principal for $310.5 million in cash or approximately $0.85 on the dollar. Our free cash flow for the fourth quarter was negative $21.9 million, a $2 million sequential decline from negative $19.7 million in the third quarter. This decline was primarily driven by an increase in our capital expenditure compared to the third quarter.

加上 5 月更大規模的回購，我們 2023 年的回購總額為 3.673 億美元本金，現金回購金額為 3.105 億美元，約 0.85 美元。我們第四季的自由現金流為負 2,190 萬美元，較第三季的負 1,970 萬美元環比下降 200 萬美元。這一下降主要是由於與第三季相比我們的資本支出增加。

Our 2023 free cash flow improved by $113 million over the prior year to negative $59 million from negative $172 million in 2022. This year-over-year improvement was driven by approximately a $70 million increase in cash from operations and a $42 million reduction in advanced payments for equipment.

我們的 2023 年自由現金流比前一年增加了 1.13 億美元，從 2022 年的負 1.72 億美元降至負 5,900 萬美元。與去年同期相比，這項改善主要得益於經營活動現金增加約 7,000 萬美元以及設備預付款減少 4,200 萬美元。

Our cash capital expenditures were approximately 11% of revenue in the fourth quarter and totaled 8% for 2023, coming in at the high end of our guidance of 6% to 8% of revenue. As we shared on our Q3 call, we accelerated certain 2024 deployments into late 2023. As a reminder, our cash capital expenditures include capitalized internal use software.

我們的現金資本支出在第四季度約佔收入的 11%，2023 年總計佔 8%，達到我們預期的 6% 至 8% 的收入上限。正如我們在第三季電話會議上所分享的那樣，我們將某些 2024 年的部署加速到 2023 年底。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。

For 2024, we anticipate our cash CapEx will be in the 6% to 8% range with deployments to be weighted toward the first half of the year. I will now discuss our outlook for the first quarter and full year 2024. 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.

到 2024 年，我們預計現金資本支出將在 6% 至 8% 之間，部署將集中在上半年。我現在將討論我們對 2024 年第一季和全年的展望。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，否則我們不承擔將來更新這些前瞻性聲明的義務。

Our first quarter and full year 2024 outlook reflect 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 2024 年第一季和全年的展望反映了我們繼續透過提高客戶獲取率以及在現有客戶中擴大追加銷售和交叉銷售來實現強勁營收成長的能力，這在一定程度上得益於新產品和增強型產品的推動。我們的收入預期是基於我們今天的可見性。

Similar to Q1 2023, we expect revenues to decline sequentially from our seasonally high Q4 results due to lower traffic patterns and the absence of the $2.8 million take or pay true up recognized in the fourth quarter. For the first quarter, we expect revenue in the range of $131million to $135 million, representing 13% annual growth at the midpoint.

與 2023 年第一季類似，由於客流量減少，以及第四季度確認的 280 萬美元的承付款實際金額缺失，我們預計營收將較季節性第四季高點業績環比下降。我們預計第一季的營收將在 1.31 億美元至 1.35 億美元之間，中間值年增率為 13%。

We continue to be very disciplined in our network investment and cost of revenues, which contributed to our fourth quarter gross margins being approximately 200 basis points better than we initially expected. We typically see a seasonal decline in gross margins in the first quarter with improvement in the second half as we build capacity for peak traffic. For the first quarter, we anticipate our gross margins will decrease approximately 100 basis points relative to the fourth quarter, plus or minus 50 basis points.

我們繼續嚴格控制網路投資和收入成本，這使得我們第四季的毛利率比最初預期高出約 200 個基點。我們通常會在第一季看到毛利率的季節性下降，而隨著我們為尖峰流量建設產能，下半年毛利率會有所改善。我們預計第一季的毛利率將較第四季下降約 100 個基點，上下浮動 50 個基點。

As we mentioned previously, our Q4 operating loss was moderately better than our earlier expectations on continued cost management and slightly slower hiring. Our first quarter operating results will reflect the impact of the seasonal decrease in gross margins and the impact to our operating expenses, the first half employer payroll tax increases. As a result, for the first quarter, we expect our non-GAAP operating loss to increase to a loss of $14 million to $10 million and our non-GAAP net loss to be $0.09 to $0.05 per share.

正如我們之前提到的，由於持續的成本管理和略微放緩的招募速度，我們第四季的營運虧損略好於我們先前的預期。我們第一季的經營業績將反映毛利率季節性下降以及上半年雇主工資稅增加對我們的經營費用的影響。因此，我們預計第一季非 GAAP 營業虧損將增至 1,400 萬美元至 1,000 萬美元，非 GAAP 淨虧損為每股 0.09 美元至 0.05 美元。

For calendar year 2024, we expect revenue in the range of $580 million to $590 million, an annual growth rate of 16% at the midpoint. This guidance reflects our expectation for quarter-on-quarter acceleration in revenue growth through the year driven by new customer acquisition and continued expansion of existing customers.

對於 2024 日曆年，我們預計營收在 5.8 億美元至 5.9 億美元之間，中間年增長率為 16%。該預期反映了我們對全年營收環比成長加速的預期，而這項成長主要得益於新客戶的獲取和現有客戶的持續擴張。

We expect to continue to see gross margin improvement in 2024 and to continue our spending discipline while increasing our investment in go-to-market and product development. We anticipate our 2024 gross margins will improve by approximately 200 basis points, plus or minus 100 basis points relative to 2023, and to exit the year with gross margins at 60% or better.

我們預計 2024 年毛利率將繼續改善，並將繼續嚴格控制支出，同時增加對市場進入和產品開發的投資。我們預計 2024 年的毛利率將提高約 200 個基點，相對於 2023 年上下浮動 100 個基點，年底的毛利率將達到 60% 或更高。

As a result, we expect our non-GAAP operating loss to improve to a range of $20 million to $14 million, reflecting an operating margin of negative 3% at the midpoint, an improvement of over 50% over 2023's operating loss margin of 7.2%, and by over 80%, over 2022's operating loss of 17.7%.

因此，我們預期非公認會計準則下的營業虧損將改善至 2,000 萬美元至 1,400 萬美元的範圍，反映出中間值的營業利潤率為負 3%，比 2023 年 7.2% 的營業虧損率改善超過 50%，比 2022 年 17.7% 的營業虧損率改善超過 50%，比 2022 年 17.7% 的營業虧損率改善超過 80%。

We expect our non-GAAP net loss per share to improve to $0.06 to break even, reflecting the improvement in our operating loss expectation. And we expect free cash flow to be break even in 2024, compared to negative $59 million in 2023. Before we open the line for questions, we'd like to thank you for your interest and your support in Fastly. Operator?

我們預計非公認會計準則每股淨虧損將改善至 0.06 美元，以實現收支平衡，這反映了我們營運虧損預期的改善。我們預計 2024 年自由現金流將達到收支平衡，而 2023 年為負 5,900 萬美元。在我們開始提問之前，我們想感謝您對 Fastly 的關注和支持。操作員？

(Operator Instructions) Fatima Boolani, Citi.

(操作員指示) Fatima Boolani，花旗。

Good afternoon. Thank you for taking my question. I wanted to ask about the backlog performance in the quarter. You did have some prepared remarks around it. But it really isn't typical to see a sequential decline in backlog. And certainly, we couldn't find an instance of this in our model going back several years. So I was hoping if you could unpack with a little bit more detail as to that sequential decline. And to the extent some of the package momentum, how is that really going to help blunt some of these impacts? And then I have a quick follow-up as well, please. Thank you.

午安.感謝您回答我的問題。我想詢問一下本季的積壓訂單表現。您確實就此準備好了一些發言。但積壓訂單連續下降的情況並不常見。當然，我們在過去幾年的模型中找不到這種情況的例子。因此我希望您能更詳細地解釋一下這種連續下降的情況。就一攬子計劃的部分力量而言，它如何真正有助於減輕其中的一些影響？然後我還想快速跟進。謝謝。

Yes, on the RPO, what we have seen at the beginning of the year was a pretty big increase. We've been focusing on building multi-year commitments. What that drove was when you do a one or two year commitment, larger amounts, and so those were with some of our largest customers, and so as those burned down, you're going to see a little more quarter to quarter, I guess, fluctuation as they come down.

是的，就 RPO 而言，我們在年初看到了相當大的成長。我們一直致力於建立多年期承諾。其驅動因素是，當你做出一到兩年的承諾時，金額會更大，而且這些承諾是與我們的一些最大客戶一起做出的，因此，隨著這些金額的減少，我想你會看到季度間波動會更大一些。

And over time, I think looking at it on a year-over-year basis is probably going to be important, particularly given that Q4 being our highest quarter, you're going to see some of the biggest usage of those commitments during the fourth quarter.

隨著時間的推移，我認為以同比為基礎進行觀察可能會很重要，特別是考慮到第四季度是我們業績最高的季度，你會看到這些承諾在第四季度的使用情況最為顯著。

Yeah, Fatima, I think it's a great question. I think the point on RPO is right. I think we're going to see some choppiness in that number. But the package momentum has been great. The packaging is just one way that we drive RPO. Large annual contracts with an annual commit, like the one that we had a true up payment for in Q4, that's the other way that we see RPO driven up.

是的，法蒂瑪，我認為這是一個很好的問題。我認為關於 RPO 的觀點是正確的。我認為我們會看到該數字有些波動。但該計劃的勢頭一直很好。包裝只是我們推動 RPO 的一種方式。大型年度合約具有年度承諾，例如我們在第四季度實際支付的合同，這是我們看到 RPO 上升的另一種方式。

But on packaging, it really -- it was an amazing result in Q4, which gives us a ton of confidence, not just in the mid-market side of the house, but even in large enterprise accounts. And I think that really demonstrates that there's a desire in the market for reliable pricing and a simpler, all-in construct for edge cloud that resonates up and down the market. So we're going to continue to invest there for sure.

但就包裝而言，第四季的業績確實令人驚嘆，這給了我們極大的信心，不僅是在中端市場，甚至在大型企業客戶中也是如此。我認為這確實表明市場渴望可靠的定價和更簡單、更全面的邊緣雲構造，以引起市場的共鳴。所以我們肯定會繼續在那裡投資。

I appreciate that. And Todd, since I have you, can you speak to any succession in planning or any updated thought processes in play with regards to the Chief Revenue Officer seat. I understand now Brett had left the company later in the quarter. So just wanted to get a sense of where the management team is at with respect to filling that vacancy, and to the extent that maybe had an impact on the quarter as well, if you can speak to that. Thank you very much.

我很感激。托德，既然您參加了這次採訪，您能否談談關於首席營收官職位的繼任計劃或最新的思考過程？我現在了解到布雷特已於本季晚些時候離開了公司。所以只是想了解管理團隊在填補空缺方面的進展，以及這可能對本季產生多大影響，如果你可以談談的話。非常感謝。

Sure. Yeah, absolutely. I really don't think it had any impact on the quarter. Remembering that Brett left the company very late in the quarter. And to be honest, he left an extremely strong sales team, both on the regional and account side, but also on the sales ops front. So we've been super happy with the team operating as it is.

當然。是的，絕對是如此。我確實不認為它對本季產生任何影響。記得布雷特在本季末才離開公司。老實說，他留下了一支非常強大的銷售團隊，不僅在區域和客戶方面，而且在銷售營運方面。因此我們對團隊目前的運作感到非常滿意。

That being said, we realize this is an incredibly important role for the company, especially as we run a true CRO model at Fastly, both on -- as the role covers both the sales side of the house as well as the customer success side of the house. We're going to be very, very methodical in choosing the absolute best candidate for that role to that end, or in the process of retaining one of the top recruiting agencies in the world for CRO roles. And we've already, even before that, begun discussions with key candidates as we speak.

話雖如此，我們意識到這對公司來說是一個非常重要的角色，特別是當我們在 Fastly 運行真正的 CRO 模型時，因為這個角色既涵蓋了公司的銷售方面，也涵蓋了公司的客戶成功方面。為此，我們將非常非常有條不紊地選擇最適合該職位的候選人，或者在保留世界上最頂尖的招聘機構之一來擔任 CRO 職位的過程中。甚至在此之前，我們就已經開始與主要候選人進行討論。

Thank you.

謝謝。

Madeline Brook, Bank of America.

美國銀行的瑪德琳布魯克 (Madeline Brook)。

Hey, team, can you hear me?

嘿，隊員們，你們聽得到我的聲音嗎？

Yeah.

是的。

Okay, perfect. Sorry about that. I guess I just want to dig a little bit into expectations and visibility for next year. I think, candidly the guidance came in a little bit late versus a street expectation. So just want to hear, where you're seeing both strength for this coming year. Is it in security, compute, and maybe where is the weakness coming from, of course, outside of the macro comments and just more specific to Fastly?

好的，完美。很抱歉。我想我只是想深入了解對明年的期望和前景。我認為，坦白說，該指引與華爾街的預期相比有點晚了。所以只是想聽聽，您認為來年雙方的實力如何。是在安全性、計算方面嗎？

Yeah, totally. From a portfolio point of view, pretty happy, actually. The way the mix is evolving and the excitement around compute continues to build. And so from that point of view, we've been, pretty steady. And I think the progress is really good. I think the macro is a big deal for us for sure. And we want to make sure that we are being conservative and taking into account that uncertainty. We, of course, have a desire to overachieve on that guide, but we know that there is macro risk, just like all of you do.

是的，完全正確。從投資組合的角度來看，其實相當令人高興。混合方式不斷發展，圍繞計算的興奮感也不斷增強。從這個角度來看，我們一直相當穩定。我認為進展確實很好。我認為宏觀對我們來說肯定是一件大事。我們希望確保我們採取保守態度，並考慮到這種不確定性。當然，我們希望超額完成該指南，但我們和你們所有人一樣，知道存在宏觀風險。

That being said, the new customer acquisition motion and the engine that we've been building here, not just with packaging, but with the efforts in channel, the focus on demand gen, and especially really creative demand gen engine being built right now in marketing team. We are really happy to see the indicator that that trajectory is changing. And I believe that is the real key to moving the needle and driving up that guidance in future reports. So that's what we'll be focusing on.

話雖如此，我們在這裡建立的新客戶獲取動力和引擎不僅僅是透過包裝，還包括管道方面的努力、對需求生成的關注，尤其是行銷團隊目前正在建立的真正有創意的需求產生引擎。我們非常高興看到這一軌跡正在改變。我相信，這是推動未來報告發展並提升指​​導水準的真正關鍵。這正是我們要關注的重點。

And just some follow-up questions for you, Todd, on the macro commentary. Did anything get worse in last quarter versus 3Q? I mean 3Q is really the first quarter we heard from you guys, macro, a lot of your competitors and the rest of software started talking about macro much earlier. So just wondering if we should view this as hitting Fastly a little bit behind the ball compared to the industry, or if something has materially changed from your perspective?

托德，我只想問您一些關於宏觀評論的後續問題。與第三季相比，上個季度的情況有變得更糟嗎？我的意思是，第三季度實際上是我們從你們那裡聽到宏觀消息的第一個季度，你們的許多競爭對手和其他軟體公司很早就開始談論宏觀消息了。所以我想知道，我們是否應該將此視為 Fastly 與行業相比稍微落後了一點，或者從您的角度來看是否發生了實質性的變化？

No, I think it was pretty much as we saw it last quarter. A handful of deals may be taking a little longer than we thought, a little bit of deals elongation. But now that we are seeing some of it, just like we saw last quarter, we saw this quarter again, we wanted to make sure we built it into the guide and not get ahead of our SKUs for 2024.

不，我認為這和我們上個季度看到的情況差不多。少數交易可能要比我們想像的花費更長的時間，交易時間會稍微延長一些。但現在我們已經看到了其中的一些，就像我們上個季度看到的那樣，我們在本季度再次看到了它，我們希望確保將其納入指南中，而不是領先於 2024 年的 SKU。

Got it. Thank you so much.

知道了。太感謝了。

Sure.

當然。

Frank Louthan, Raymond James.

法蘭克洛森、雷蒙詹姆斯。

New firm, be a household name any day. So you've talked about bringing on some products that are more recurring revenue in nature, maybe walk us through those and how that's going to fit into the revenue mix going forward. And then a follow up, where are you with the converged -- ability to sell the converged both delivery and Signal Sciences with the sales team? Thanks.

新公司，隨時都會成為家喻戶曉的名字。所以您談到了推出一些本質上更具經常性收入的產品，也許可以向我們介紹一下這些產品，以及它們將如何融入未來的收入組合。然後是後續問題，您在融合方面處於什麼水平——與銷售團隊一起銷售融合交付和信號科學的能力？謝謝。

Yeah, great. We should mention all of our portfolio, it's recurring revenue. It's just on a utility building motion, largely, and -- or it has traditionally been on a utility billed motion, which is, I think, amazing for large and especially particularly sophisticated users who want to lean in and control their usage byte per bite.

是的，很棒。我們應該提到我們所有的投資組合，這是經常性收入。它在很大程度上只是一項公用事業建設動議，或者傳統上是一項公用事業計費動議，我認為這對於想要控制每次使用字節數的大型用戶和特別複雜的用戶來說，是令人驚訝的。

But for folks who are looking for a more turnkey solution and perhaps a more holistic strategic partner, it can be a great opportunity just to buy edge solutions like ours as a SaaS product, a straight cash style build with predictable regular recurring revenue and that's what our packages are. So all the discussion also mentioned in the report here on the new packaging model, it's built around that model, predictable billing, monthly commit, regular recurring revenue.

但對於那些尋求更交鑰匙解決方案和更全面的戰略合作夥伴的人來說，這是一個很好的機會，只需購買像我們這樣的邊緣解決方案作為 SaaS 產品，以直接現金方式構建可預測的定期經常性收入，這就是我們的套餐。因此，報告中提到的有關新包裝模型的所有討論都是圍繞該模型構建的，包括可預測的計費、每月承諾和定期經常性收入。

It gives our sales team the opportunity to easily cross-sell from one product line to the next to continue to land and expand and grow the customer over time, but it gives the customer the ease of use financially of knowing what their bill will be every month. And so that's been very successful for us so far. They've been in the market for about a year, and we're pretty happy with that result.

它使我們的銷售團隊有機會輕鬆地從一條產品線交叉銷售到下一條產品線，從而隨著時間的推移繼續吸引、擴大和發展客戶，但它也使客戶在財務上輕鬆了解他們每個月的賬單金額。到目前為止，這對我們來說非常成功。它們已經進入市場大約一年了，我們對這個結果非常滿意。

All right, great. Thank you.

好的，太好了。謝謝。

Sorry, Frank, Did I miss the second part of your question. I just want to make sure I got the second part.

抱歉，弗蘭克，我是否錯過了你問題的第二部分。我只是想確保我得到了第二部分。

Frank, can you press star one again, please?

法蘭克，你能再按一下星星嗎？

Sorry, man.

抱歉，哥們。

Being able to sell the consolidated security.

能夠出售合併後的證券。

Oh, sorry. You asked about product unification and being able to sell Single Sciences and the traditional Fastly portfolio as well. We've made amazing progress actually. And our customers are seeing that. There's amazing unification in the UI and a panel that allows you to simply flip between the two. We're not done yet. We've got a full single sign-on offering that's going live this week or next week, rather.

噢，對不起。您詢問了產品統一以及能夠銷售 Single Sciences 和傳統的 Fastly 產品組合的問題。事實上我們已經取得了驚人的進步。我們的客戶也看到了這一點。使用者介面 (UI) 和麵板具有令人驚嘆的統一性，可讓您在兩者之間輕鬆切換。我們還沒完成。我們提供了完整的單一登入服務，將於本週或下週上線。

And then a new navigation, which will be really a super seamless user experience which will be coming out at the end of the quarter, which I'm super excited about. And I think at that point, we'll have a really best-in-class unified edge platform for delivery, network services, compute, security, and observability, which to me is really where we want to be. That's a cutting-edge edge cloud platform with a suite of solutions that allows just about any organization to move to a Fastly edge for the best possible user experience.

然後是新的導航，這將是一種真正超級無縫的用戶體驗，它將在本季末推出，我對此感到非常興奮。我認為到那時，我們將擁有一個真正一流的統一邊緣平台，用於交付、網路服務、運算、安全性和可觀察性，對我來說，這才是我們真正想要的。這是一個尖端的邊緣雲端平台，擁有一套解決方案，允許幾乎任何組織轉移到 Fastly 邊緣，以獲得最佳的使用者體驗。

Jonathan Ho, William Blair.

喬納森·何、威廉·布萊爾。

Hi, good afternoon. I just wanted to get a little bit of additional color on what happened with international. And can you maybe help us understand what changed relative to your expectations? And what do you expect to persist? I know there was some macro commentary, but what do you expect to persist on international into 2024?

嗨，下午好。我只是想進一步了解國際上發生的事情。您能否幫助我們了解與您的預期相比發生了哪些變化？你期望什麼能夠持續下去？我知道有一些宏觀評論，但您預計到 2024 年國際上會持續出現什麼？

Yeah. It's important to note the difference between the mix of international business versus what shows up as international traffic on our platform. So our mix of international business was pretty much as we predicted. We ran 27% of our revenue international this year, up from 26% in '22. We expect that trend to continue a slow increase, a slow balancing of our revenue globally.

是的。需要注意的是，國際業務組合與我們平台上顯示的國際流量之間的差異。因此，我們的國際業務組合與我們的預測基本一致。今年，我們的國際營收佔比為 27%，高於 22 年的 26%。我們預計這一趨勢將繼續緩慢增長，並緩慢平衡我們全球的收入。

But this particular quarter, what happened was that some of our traffic mix from -- really, to be honest, one particular country with a very high rate slowed down that traffic wind up landing in other regions. And because of that traffic change, we wound up with a little bit of headwind to revenue, as Ron said earlier, but a little bit of tailwind to gross margin.

但在這個特定季度，發生的情況是，我們的部分流量組合——實際上，老實說，來自某個特定國家/地區的流量速度非常高，導致流量最終流向其他地區。正如羅恩之前所說，由於流量的變化，我們的收入略有下降，但毛利率卻略有上升。

And what I mean by that is traffic that lands in that particular country tends to be billed at a high rate, but it is less profitable for us. And so we see that in the numbers, and that is a reality that showed up in our numbers this quarter. So you'll see better profitability because of that traffic shift, but a little headwind to the top line.

我的意思是，到達特定國家的流量往往會收取高額費用，但對我們來說利潤卻較低。我們在數字中看到了這一點，這也是本季數據所體現的現實。因此，由於流量的轉變，你會看到更好的獲利能力，但對營收來說會有點阻力。

Great. And just one additional question in terms of net retention and the DBNER trends over time. Can you give us a sense of -- you signed this large cohort of new enterprise customers, are they fully contributing out of the gate? Or would you expect this group to maybe increase spend over time and maybe start helping those trends out? Thank you.

偉大的。關於淨保留率和 DBNER 隨時間的變化趨勢，還有一個問題。您能否讓我們了解一下—您簽約了這一大批新的企業客戶，他們是否做出了充分的貢獻？或者您是否預期該群體可能會隨著時間的推移增加支出並開始幫助推動這些趨勢？謝謝。

Yeah, I 100% expect the new enterprise customers and really all new customers be helping that trend out over time. In fact, and this is an interesting reality to Fastly's business, and I think most SaaS utility build businesses is LTM, NRR, even DBNER, is actually highly dependent on new customer acquisition because customers ramp their spend pretty hard over the first 3 years -- 2.5 years, 3 years, and then that ramp tends to tail off. It continues to grow but at a slower rate.

是的，我百分之百地希望新的企業客戶以及所有新客戶能夠隨著時間的推移幫助這一趨勢。事實上，這對 Fastly 的業務來說是一個有趣的現實，我認為大多數 SaaS 實用程式建立業務是 LTM、NRR，甚至 DBNER，實際上高度依賴新客戶的獲取，因為客戶在前 3 年（2.5 年、3 年）內非常努力地增加他們的支出，然後這種增長趨於逐漸減弱。它仍在繼續增長，但速度有所放緩。

And you could get pretty good data on those trends if you looked at our disclosures from Investor Day earlier in 2023. We presented a graph on exactly that phenomenon. And so yeah, I think your point -- your question is the right one. That surge in new customer acquisition will absolutely help us drive better LTM, NRR rates in the next 2 years.

如果您查看我們 2023 年早些時候的投資者日披露內容，您就可以獲得有關這些趨勢的相當不錯的數據。我們繪製了一張圖表來準確描述這個現象。是的，我認為你的觀點——你的問題是正確的。新客戶數量的激增絕對會幫助我們在未來兩年內實現更好的 LTM 和 NRR 比率。

Thank you.

謝謝。

Sure.

當然。

Tim Horan, Oppenheimer.

提姆霍蘭、奧本海默。

Thanks, guys. Can you talk a little bit more about the distribution business? Or how does your quality compare to your peers out there and maybe pricing? And are you picking up more major sporting events because of the improvement in quality?

謝謝大家。您能否再多談談分銷業務？或您的品質與同業相比如何？您是否因為品質的提升而選擇了更多大型體育賽事？

When you say distribution, you mean like CDN content distribution right?

當您說分發時，您的意思是像 CDN 內容分發那樣，對嗎？

Yeah.

是的。

Yeah, sorry about that. Sometimes we call it delivery distribution. Yeah, look, I think this is an area where we believe we've got a very strong competitive advantage from a performance point of view and in many major markets, a capacity point of view. But one whole, I think that we are continuing to grow into is that true, like longest tail of global coverage and we're continuing to evolve there. But competitively in major markets, we feel extremely strong about our performance advantage.

是的，很抱歉。有時我們稱之為配送分配。是的，我認為從性能的角度以及在許多主要市場和容量的角度來看，我們相信我們在這個領域具有非常強大的競爭優勢。但總體而言，我認為我們正在繼續成長，就像全球覆蓋的最長尾巴一樣，我們正在繼續發展。但在主要市場的競爭中，我們對我們的性能優勢感到非常強大。

We also are extremely proud of the feature completeness. The fact that our security and our compute portfolio is available on every single node that delivery is available on. There's our customer never have to trade those things off. Our edge is fully capable everywhere that it exists around the world, and that gives us a boost when it comes to content delivery as well. So we are feeling pretty good about that.

我們也對功能的完整性感到非常自豪。事實上，我們的安全性和運算產品組合在每個可以進行交付的節點上都可用。我們的客戶永遠不需要犧牲這些東西。我們的優勢在世界各地都充分發揮作用，這也為我們的內容交付提供了助力。因此我們對此感覺非常好。

Live sporting events or any live events, we're starting to see some interest in other kinds of live events as well is, I think, a huge win for us. And that continued trend towards more live events can only help Fastly. It's an area where our differentiation just continues to be [a priority].

無論是現場體育賽事還是任何現場活動，我們都開始看到人們對其他類型的現場活動的興趣，我認為這對我們來說是一個巨大的勝利。而持續舉辦更多現場活動的趨勢只會對 Fastly 有所幫助。這是我們差異化持續存在的領域[優先事項]。

And is your own offering improving over the last couple of years in terms of lower latency, more capacity, lower jitter, et cetera?

過去幾年裡，你們的產品在降低延遲、增加容量、降低抖動等方面是否有所改善？

Absolutely. Both performance, like you said, lower latency, greater capacity, closer distributing, our nodes closer and closer to the user, but also just the completeness of the platform, the feature set, the flexibility that it gives.

絕對地。正如您所說，效能包括更低的延遲、更大的容量、更緊密的分佈、我們的節點越來越接近用戶，而且平台的完整性、功能集和它提供的靈活性。

One thing I think we're going to start to see in live events is an increase in broadcasters trying to combat piracy and advanced feature set at the edge really matters there, and advanced focused more personalization, not just on the ad flow, but other parts of the experience. Again, advanced feature set is going to matter there. We are very proud of the performance of our infrastructure, especially in terms of live events, but the feature set is just as important.

我認為我們將在現場活動中開始看到的一件事是，越來越多的廣播公司試圖打擊盜版，而邊緣的高級功能集確實很重要，並且高級功能更加註重個性化，不僅僅是廣告流，還包括體驗的其他部分。再次強調，高級功能集在這裡很重要。我們對我們的基礎設施的表現感到非常自豪，特別是在現場活動方面，但功能集也同樣重要。

Very helpful, thank you.

非常有幫助，謝謝。

Sure.

當然。

Jeff Van Rhee, Craig-Hallum.

傑夫·範·裡、克雷格·哈勒姆。

Great. Thanks for taking the questions. I've got a few. Just on the new customer numbers, good to see the enterprise capture number strong. It didn't transition or translate to the RPO acceleration. Were the initial landing size of these customers as large as expected? Were they potentially smaller deals? That's one. And two, just in terms of the pipeline, have you turned the corner and is this a new repeatable level of enterprise adds quarterly?

偉大的。感謝您回答這些問題。我有幾個。僅從新客戶數量來看，很高興看到企業捕獲量強勁。它並沒有轉變或轉化為 RPO 加速。這些客戶的初始登陸規模是否如預期的那樣大？這些交易可能規模較小嗎？那是一個。第二，僅從通路方面來看，您是否已經渡過了難關，這是否是企業季度新增的可重複水準？

Yeah, great question. As far as the new customer ads and like their average size, I can't -- and we don't disclose the size of new enterprise customers, but the average enterprise customer size increased and I think those new customers -- enterprise customers, I would call typical, we don't have --

是的，很好的問題。至於新客戶廣告及其平均規模，我無法透露，我們也不會透露新企業客戶的規模，但平均企業客戶規模有所增加，我認為那些新客戶——我稱之為典型的企業客戶，我們沒有--

I missed that you'd call them what, what was that?

我錯過了你該如何稱呼他們，那是什麼？

They are typical of our other enterprise customers. They're not smaller, they're not bigger. As far as the trajectory goes, it's absolutely our intention to maintain that level. We'll be pushing hard to do so. I'm sure, of course, there will be fluctuation as there always is, but I believe we have an opportunity to achieve levels like that moving forward, and we're going to keep that.

他們是我們其他企業客戶的典型代表。它們既不更小，也不更大。就軌跡而言，我們絕對有意保持這一水準。我們將盡力實現這一目標。當然，我確信總是會有波動，但我相信我們有機會在未來達到這樣的水平，而且我們也會保持這種狀態。

Okay. And then if I look at the (multiple speakers) --

好的。然後如果我看看（多位發言者）——

I'm just going to add on the RPO, the mix of which of those customers when we sign new enterprise customers that actually have a commit, not all of our customers have a commit. To the extent they do a consumption-based deal with no commit, it's not going to show up in the RPO. So that is also something to think about that there's not 100% translation for new customers into the RPO.

我只是想補充 RPO，當我們簽約新的企業客戶時，這些客戶中哪些人實際上有承諾，但並不是所有客戶都有承諾。如果他們達成的是基於消費的交易沒有做出任何承諾，那麼它將不會出現在 RPO 中。因此，需要考慮的是，新客戶並沒有 100% 融入 RPO。

Yeah, got it. And then if I look at the overall guide, just the acceleration that you're looking for throughout year. The quarter was a bit below, Q1 looks a bit below, but the year brackets the consensus on top line and it implies acceleration. What's the visibility to that? What do you have to assume there?

嗯，明白了。然後，如果我看一下總體指南，您會發現您全年都在尋找加速度。本季的營收略低於預期，第一季的營收看起來也略低於預期，但全年營收達到了共識，這意味著營收將加速成長。那個可見性怎麼樣？您對此有何假設？

What are you assuming in terms of like the international weakness thus far? Does that have to improve materially? Do you assume continued international weakness to hit that back half of the year? Just give us maybe a little more comfort where you're getting your conviction later in the year.

您對迄今為止的國際疲軟狀況有何假設？這種情況是否必須實質改善？您是否認為持續的國際經濟疲軟將對今年下半年造成影響？請給我們多一點安慰，您將在今年稍後得到定罪。

Yeah. That's a great question. And we looked at that very carefully because I guess we knew we'd have this question. We project the revenue down to the account level for a very large number of accounts and look at the trend across the board. And this is the best projection we've got. I feel very, very confident in it.

是的。這是一個很好的問題。我們非常仔細地研究了這個問題，因為我想我們知道我們會有這個問題。我們將大量帳戶的收入預測到帳戶級別，並全面觀察趨勢。這是我們得到的最佳預測。我對此非常非常有信心。

As far as the international traffic goes, if we saw another surge in one of those more high-priced regions, you'd expect that to be to a tailwind to revenue in any quarter that had happened. If we saw a particular large strategic new customer come on board, we could again see a tailwind. As far as the Q1 number versus the rest of the year number, our projection is for the full year, and we're trying to track it very, very carefully.

就國際流量而言，如果我們看到某個高價格地區再次出現激增，那麼我們就會預期這將為任何一個季度的收入帶來順風。如果我們看到一個特定的大型策略新客戶加入，我們會再次看到順風。就第一季的數據與今年剩餘時間的數據相比，我們的預測是針對全年的，而且我們正非常非常仔細地追蹤它。

The biggest thing you're seeing in Q1, I think, is the step down from the one-time true-up payments from Q4 to Q1, which our model obviously takes into account, and so we see that. But the driving the continued growth rate through the rest of the year, I think it is, in fact, like the baseline for our projection.

我認為，您在第一季看到的最大變化是從第四季度到第一季的一次性實際付款的下降，我們的模型顯然考慮到了這一點，所以我們看到了這一點。但推動今年剩餘時間的持續成長率，我認為這實際上就像是我們預測的基準。

Okay. And maybe, sorry, just to go back, if I could, one more on international, just to understand. It sounded like you were -- I guess, I'm a little confused. You're saying some of the revenue shifted from one country to another, it sounded like it might be very concentrated. Were you suggesting it was concentrated to a specific customer? Just indulge me there and maybe just explain that one more time.

好的。也許，抱歉，如果可以的話，我再回過頭來談談國際議題，只是為了了解一下。聽起來你好像——我想，我有點困惑。您說部分收入從一個國家轉移到了另一個國家，這聽起來可能非常集中。您是否認為它集中針對特定客戶？請容許我再解釋一次。

Yeah, some traffic moved out of one country. So there's a handful of countries in the world where delivery services are just very expensive because of the way Internet service providers and technology vendors operate in that country, and the rate is very high.

是的，有些流量已經移出了一個國家。因此，世界上有少數國家的送貨服務非常昂貴，這是因為這些國家的網路服務供應商和技術供應商的運作方式，而且費率非常高。

And we don't pass all of that cost on to our customers. So because of that, the margins tend to be very low. When we see a spike of traffic in a region like that, we see an increase in the top line, but a headwind to gross margin. And we saw that in Q3, and we saw it come down in Q4, which was the headwind on the top line and the tailwind on gross margin. We try our best to predict and project that, but that is what happened.

我們不會將所有成本轉嫁給客戶。因此，利潤率往往非常低。當我們看到這類地區的流量激增時，我們會看到營業額增加，但毛利率卻受到阻力。我們在第三季看到了這一點，並且在第四季度看到了下降，這是營收的逆風和毛利率的順風。我們盡力預測和推測這一點，但事實就是這樣的。

Rudy Kessinger, D.A. Davidson.

凱辛格（Rudy Kessinger），地方檢察官戴維森。

Hey thanks for taking my questions. Just to follow on to that. I mean just with this traffic being lower in this one country, was that from your largest customer that's over 10%. And secondly, what was the reason for the lower traffic in that one country? Did you lose share to another provider? Was it not enough new content in the quarter? Was it live sporting event related, not as much viewership? What was the reason for the lower traffic in that one country?

嘿，謝謝你回答我的問題。只是為了繼續關注這件事。我的意思是，光是這個國家的流量較低，來自您最大客戶的流量就超過 10%。其次，該國流量較低的原因是什麼？您的市佔率是否被其他供應商搶走了？本季的新內容是否還不夠？這是否與現場體育賽事有關，收視率沒那麼高？那個國家的流量較低的原因是什麼？

Sure. I can't comment on which customer it was from. But it's just a natural variability, like you said, how much new content or what types of content being published in a particular region for streamers has volatility. When it comes down to the granularity of a single country in the world, you get volatility in that space. And so that's what we saw. We tried to make sure that our 2024 projections are really the baseline traffic in countries like that. And if we see surges, then they'll show up as a tailwind moving forward.

當然。我無法評論它是來自哪位顧客。但這只是一種自然的變化，就像你說的，特定地區為串流媒體發布的新內容或內容類型具有波動性。當我們將目光集中到世界上某個國家時，就會發現這個領域的波動性。這就是我們所看到的。我們試圖確保我們對 2024 年的預測確實是這些國家的基準流量。如果我們看到浪潮，那麼它們就會表現為向前的順風。

Okay. Ron, and two just kind of housekeeping keeping clarification questions. Revenue acceleration on a year-over-year growth basis every quarter. So Q2 growth should accelerate from Q1. And then on gross margins, you said Q1 down about 100 basis points versus Q4. Is that versus the reported 59.2% or the adjusted 58.3%?

好的。羅恩，還有兩個關於家務事的澄清問題。每季度的營收都年增。因此第二季的成長應該會比第一季加速。然後就毛利率而言，您說第一季比第四季下降了約 100 個基點。這是相對於報告的 59.2% 還是調整後的 58.3%？

Yeah. So I'll get on the latter one, just to clarify, that's against the reported 59.2%, so it's 100 basis points plus or minus against what we actually reported. In terms of the acceleration, I mean, I think you will see it across the course of the year. I think I expect that to be generally in line with what we've seen historically from a seasonality and some acceleration across the year.

是的。因此，我將討論後者，只是為了澄清，這是相對於報告的 59.2% 而言的，因此與我們實際報告的數字相比，是加減 100 個基點。就加速而言，我的意思是，我認為你會在今年內看到它。我認為，我預計這將與我們歷史上看到的季節性和全年的加速趨勢大致一致。

Angie Song, Morgan Stanley.

摩根士丹利的 Angie Song。

Hi, can you guys hear me?

嗨，你們聽得到我說話嗎？

Yes.

是的。

Perfect. Thanks so much for taking my question today. So just wanted to dig in on gross margins. You mentioned the 80% incremental gross margin, could you just speak to what drives this? And on the 60% margin, is it somewhat more aspirational? Or is this something that you have a line of sight on?

完美的。非常感謝您今天回答我的問題。所以只是想深入了解毛利率。您提到了 80% 的增量毛利率，能不能講講推動這成長的因素是什麼？而 60% 的利潤率是否更具抱負呢？還是這是您關注的事情？

Yeah, I think on the latter question, in terms of our outlook for gross margins for 2024 and achieving by year-end margins at the 60% or a little above that is -- it's really our plan. We have a line of sight to it. It is continued rigor in our investment in capacity. It's continuing to improve our bandwidth or transit costs through both negotiations and increasing our peering. It's network efficiency.

是的，我認為關於後一個問題，就我們對 2024 年毛利率的展望以及到年底實現 60% 或略高於 60% 的利潤率而言——這確實是我們的計劃。我們可以看到它。我們對產能的投資持續嚴格。它會透過談判和增加對等來繼續改善我們的頻寬或傳輸成本。這是網路效率。

And then as we just continue to grow, it allows us, particularly international to improve our cost structure. And so those are the big drivers that give us line of sight to that improvement that we expect to continue to see that improvement across 2024.

隨著我們不斷發展，它使我們能夠改善成本結構，特別是國際業務。這些都是讓我們看到這種改善的主要驅動因素，我們預計這種改善將在 2024 年繼續出現。

Rishi Jaluria, RBC Capital Markets.

Rishi Jaluria，加拿大皇家銀行資本市場。

Wonderful. That’s a new way to pronounce my name. This is Rishi Jaluria from RBC. Thanks so much for taking my question. Maybe I want to start with just looking a little bit closer at Signal Sciences, we saw a little bit of a slowdown after a few quarters of acceleration. I know there's obviously comps and scale and everything like that. But just any color on what drove that and how we should be thinking about that growth going forward? And then I've got a quick follow-up.

精彩的。這是我名字的新發音方式。我是 RBC 的 Rishi Jaluria。非常感謝您回答我的問題。也許我首先想更仔細地觀察一下 Signal Sciences，我們發現在經歷了幾個季度的加速之後，出現了一些放緩。我知道顯然存在補償、規模和諸如此類的一切。但是，對於推動這一成長的因素以及我們應該如何看待未來的成長，您有何看法？然後我會快速跟進。

Yeah, it's a great question. We see a little bit of a -- we always see a little bit of a surge in delivery in Q4. And so the security growth can tend to slow down a little bit. But I'll check into it, but it hasn't been a huge shift there. The sales [promotion] seems to be running pretty smoothly. There could be that we have a little bit of a backup on folks who are waiting for that unified experience coming out this quarter, which will be exciting, but we've been pretty confident in that security side of the business this quarter.

是的，這是一個很好的問題。我們看到——我們總是看到第四季度的交付量略有激增。因此安全成長可能會有所放緩。但我會檢查一下，但並沒有發生巨大的轉變。銷售[促銷]似乎進行得相當順利。對於那些等待本季度推出統一體驗的人來說，我們可能會有一些備份，這將是令人興奮的，但我們對本季業務的安全性方面非常有信心。

Okay. Got it. That's helpful. And then maybe just sticking with security. As you have the new bot management product out there, what sort of early feedback have you gotten from select customers that are actively using it in production today? Thanks.

好的。知道了。這很有幫助。然後也許只是堅持安全。由於您推出了新的機器人管理產品，您從目前在生產中積極使用它的選定客戶那裡得到了什麼樣的早期回饋？謝謝。

Yeah. We've had some really solid feedback. In fact, we had a couple of customers actually make purchases in Q4 even though it was just an early availability. That was a nice confidence. I think it showed a maturity in our beta motion.

是的。我們收到了一些非常可靠的回饋。事實上，儘管產品還處於早期階段，但我們確實有幾位客戶在第四季度進行了購買。這是一種很好的自信。我認為這表明我們的測試版運動已經成熟。

I'll tell you the biggest piece of feedback that I've heard is just a very broad interest in this technology, and that's been great and a ton of interest in expanded feature sets. We are starting to look at productizing some private access tokens as part of that solution as well because we've gotten just so much interest in that side of the house. I think there's a ton of revenue opportunity here for our security portfolio on the box side, and we're going to be pushing that.

我會告訴你，我聽到的最多的回饋就是對這項技術的廣泛興趣，這非常好，並且對擴展的功能集非常感興趣。我們開始考慮將一些私人訪問令牌產品化作為該解決方案的一部分，因為我們對這方面非常感興趣。我認為，在盒子方面，我們的安全產品組合存在大量的獲利機會，我們將大力推動這一成長。

I think it's easy to imagine that the only people who would be super motivated around bot management might be like big, incredibly verse retailers that do big product drops, but it's not -- it's a pretty broad, broadly applicable product with a bunch of use cases, some as simple as customers who don't want their competitors scraping their data off their websites.

我認為很容易想像，唯一對機器人管理非常積極的人可能是像大型、令人難以置信的零售商那樣進行大規模的產品投放，但事實並非如此——它是一種非常廣泛、適用的產品，具有一系列用例，有些用例很簡單，例如客戶不希望他們的競爭對手從他們的網站上抓取他們的數據。

And that's super interesting, and it's something we're going to be pushing hard at and continuing to invest in. I think even as we go GA this quarter, we're going to continue to add functionality here probably for years to come. There's a ton of interest and a ton of innovation here.

這是非常有趣的，我們會努力推動並繼續投資。我認為，即使我們本季推出 GA，我們仍可能在未來幾年繼續添加功能。這裡有大量的興趣和創新。

Wonderful. Thank you so much.

精彩的。太感謝了。

Welcome.

歡迎。

That concludes our question-and-answer session. I will now turn the call back Chief Executive Officer, Todd Nightingale, for closing remarks.

我們的問答環節到此結束。現在我將請執行長 Todd Nightingale 作最後發言。

Thanks, everyone, for joining us on Valentine's Day. I want to thank our employees, customers, partners, and investors. We remain focused on execution, bringing lasting growth to our business and delivering value to our shareholders.

感謝大家與我們一起度過情人節。我要感謝我們的員工、客戶、合作夥伴和投資者。我們將繼續專注於執行，為我們的業務帶來持久的成長並為我們的股東創造價值。

Let me close by saying, 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 our employees have real enthusiasm for Fastly's mission to make the Internet a better place where all experiences are fast, safe, and engaging. Thank you so much.

最後，我想說，我相信數位體驗將推動幾乎每個組織在全球各地的使命並決定其成功。Fastly 將對全球數位體驗的建構和傳遞方式產生重大影響。我們的客戶對 Fastly 解決方案充滿熱情，我們的員工對 Fastly 的使命充滿熱情，即讓互聯網成為一個更好的地方，讓所有的體驗都快速、安全且引人入勝。太感謝了。

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

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。