Cloudflare Inc (NET) 2022 Q4 法說會逐字稿

Hello, everyone, and welcome to the Cloudflare Q4 2022 Earnings Call. (Operator Instructions)

大家好，歡迎來到 Cloudflare 2022 年第四季度財報電話會議。 （操作員說明）

I would now like to hand the conference over to Mr. Phil Winslow, VP of Strategic Finance. Please go ahead, sir.

我現在想將會議交給戰略財務副總裁 Phil Winslow 先生。請繼續，先生。

Thank you for joining us to discuss Cloudflare's financial results for the fourth quarter of 2022. With me on the call, we have Matthew Prince, our Co-Founder and CEO; and Thomas Seifert, our CFO. Michelle Zatlyn, our Co-Founder, President and COO, is unable to join us on the call today as she is in Asia meeting with prospects and customers.

感謝您加入我們討論 Cloudflare 2022 年第四季度的財務業績。與我通話的還有我們的聯合創始人兼首席執行官 Matthew Prince；和我們的首席財務官 Thomas Seifert。我們的聯合創始人、總裁兼首席運營官 Michelle Zatlyn 今天無法加入我們的電話會議，因為她正在亞洲會見潛在客戶和客戶。

By now, everyone should have access to our earnings announcement. This announcement as well as our supplemental financial information may be found on our Investor Relations website. As a reminder, we'll be making forward-looking statements during today's discussion, including, but not limited to, our customers, vendors, partners, operations and future financial performance, our anticipated product launches and the timing and market potential of those products, and our anticipated future financial and operating performance.

到現在為止，每個人都應該可以看到我們的收益公告。本公告以及我們的補充財務信息可在我們的投資者關係網站上找到。提醒一下，我們將在今天的討論中做出前瞻性陳述，包括但不限於我們的客戶、供應商、合作夥伴、運營和未來財務業績、我們預期的產品發布以及這些產品的時間和市場潛力，以及我們預期的未來財務和經營業績。

These statements and other comments are not guarantees of future performance and are subject to risks and uncertainties, much of which are beyond our control. Our actual results may differ significantly from those projected or suggested in any of our forward-looking statements. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future.

這些陳述和其他評論不是對未來業績的保證，並受風險和不確定性的影響，其中大部分是我們無法控制的。我們的實際結果可能與我們任何前瞻性陳述中預測或建議的結果大不相同。這些前瞻性陳述適用於今天，您不應依賴它們代表我們未來的觀點。

We undertake no obligation to update these statements after this call. For a more complete discussion of the risks and uncertainties that could impact our future operating results and financial condition, please see our filings with the SEC as well as in today's earnings press release.

我們沒有義務在本次電話會議後更新這些聲明。有關可能影響我們未來經營業績和財務狀況的風險和不確定性的更完整討論，請參閱我們向美國證券交易委員會提交的文件以及今天的收益新聞稿。

Unless otherwise noted, all numbers we talk about today other than revenue will be on an adjusted non-GAAP basis. You may find a reconciliation of GAAP to non-GAAP financial measures that are included in our earnings release on our Investor Relations website. For historical periods, a GAAP to non-GAAP reconciliation can be found in the supplemental financial information referenced a few moments ago.

除非另有說明，否則我們今天談論的除收入以外的所有數字都將基於調整後的非 GAAP 基礎。您可能會在我們的投資者關係網站上的收益發布中找到 GAAP 與非 GAAP 財務指標的對賬。對於歷史時期，可以在剛才引用的補充財務信息中找到 GAAP 與非 GAAP 對賬。

We'd also like to inform you that we will be participating in Barry's 2023 Silicon Slopes event on March 2, the Morgan Stanley Technology Media and Telecom Conference on March 8 and William Blair's seventh Annual Tech Innovators Conference on March 14.

我們還想通知您，我們將參加 3 月 2 日的 Barry's 2023 Silicon Slopes 活動、3 月 8 日的摩根士丹利技術媒體和電信大會以及 3 月 14 日的 William Blair 第七屆年度技術創新者大會。

Now before wrapping up, I would also like to invite you to join us for our Investor Day on Thursday, May 4, which is being held in conjunction with our user conference, CloudFlare Connect in New York City. A live webcast will also be accessible from our Investor Relations website.

在結束之前，我還想邀請您參加 5 月 4 日星期四的投資者日，該日與我們在紐約市舉行的用戶會議 CloudFlare Connect 一起舉行。還可以從我們的投資者關係網站訪問實時網絡廣播。

Now with that, I'd like to turn the call over to Matthew.

現在，我想把電話轉給馬修。

Thank you, Phil. It's great to have you on this side of the table. We had another strong quarter in spite of continued challenging macroeconomic conditions. We generated $274.7 million of revenue, up 42% year-over-year. We achieved a record operating profit of $16.8 million, representing an operating margin over 6%.

謝謝你，菲爾。很高興你坐在桌子的這一邊。儘管宏觀經濟狀況持續充滿挑戰，但我們又迎來了一個強勁的季度。我們創造了 2.747 億美元的收入，同比增長 42%。我們實現了創紀錄的 1680 萬美元營業利潤，營業利潤率超過 6%。

While we continue to invest to capture the huge market ahead of us, we believe that during economic slowdowns like the 1 we're in the midst of it's important to show discipline and optimize for efficiency. We have our hands on the leverage of our business and are adjusting them based on the macroeconomic conditions. Our free cash flow in the quarter was $34 million, representing a free cash flow margin of 12% and allowing us to generate $29 million of free cash flow in the second half of 2022.

雖然我們繼續投資以佔領我們面前的巨大市場，但我們相信，在像 1 這樣的經濟放緩期間，我們正處於重要的是表現出紀律和優化效率。我們掌握了我們業務的槓桿，並正在根據宏觀經濟狀況對其進行調整。我們本季度的自由現金流為 3400 萬美元，自由現金流利潤率為 12%，使我們能夠在 2022 年下半年產生 2900 萬美元的自由現金流。

While there will be some variability in our free cash flow quarterly, we expect to be free cash flow positive in 2023 and the years after that. We achieved a gross margin over 77% above our long-term target range of 75% to 77%. Our dollar-based net retention ticked down to 122%, while our gross renewal rates remain as high as ever, like others in the industry, we're seeing customers take longer to sign new and expansion deals with us.

雖然我們的自由現金流每季度會有一些變化，但我們預計 2023 年及之後的幾年自由現金流為正。我們實現了超過 77% 的毛利率，高於我們 75% 至 77% 的長期目標範圍。我們以美元為基礎的淨保留率下降到 122%，而我們的總續訂率仍然和以往一樣高，與業內其他公司一樣，我們看到客戶需要更長的時間才能與我們簽訂新的和擴展的交易。

Procurement departments are definitely in the mode of measure 2 or 3 times before cutting one. We still see a clear path to a dollar-based net retention over 130% as we ramp seat-based products like Zero Trust and storage-based products like R2, and we won't be satisfied until we get there. We added 134 large customers, those that pay us over $100,000 per year and now have 2,042 large customers, including 33% of the Fortune 500.

採購部門肯定是先量2、3次再砍一個的模式。隨著我們推出 Zero Trust 等基於席位的產品和 R2 等基於存儲的產品，我們仍然看到以美元為基礎的淨保留率超過 130% 的明確途徑，我們不會滿足，直到我們到達那裡。我們增加了 134 個大客戶，這些客戶每年向我們支付超過 100,000 美元，現在有 2,042 個大客戶，其中包括 33% 的財富 500 強。

Revenue from large customers grew 56% year-over-year, and they now contribute 63% of our total revenue. We were fortunate that given our visibility into the overall Internet traffic and the e-commerce trends, we started to see a slowdown in the economy all the way back in December of 2021. Based on that, around this time last year, we began slowing our pace of hiring to ensure we didn't get over our skis. That's paid off and kept us from having to take more drastic actions like many of our peers.

來自大客戶的收入同比增長 56%，占我們總收入的 63%。我們很幸運，鑑於我們對整體互聯網流量和電子商務趨勢的了解，我們從 2021 年 12 月開始就開始看到經濟放緩。基於此，大約在去年這個時候，我們開始放緩我們的招聘速度是為了確保我們不會忘記滑雪。這得到了回報，使我們不必像許多同行那樣採取更激烈的行動。

It's also given us the ability to sensibly invest in our team as amazing talent comes on the market. To give you some sense, in 2022, we had over 400,000 people apply for approximately 1,300 positions at Cloudflare. That demand to work at Cloudflare has allowed us to continue to hire incredible talent or any discipline in overall compensation. We are committed to incremental equity compensation dilution well below many of our peers, targeting less than 3% net burn rate annually.

這也使我們能夠在市場上出現驚人的人才時明智地投資於我們的團隊。為了給你一些感覺，在 2022 年，我們有超過 400,000 人申請了 Cloudflare 的大約 1,300 個職位。在 Cloudflare 工作的需求使我們能夠繼續聘用令人難以置信的人才或任何紀律的整體薪酬。我們致力於將增量股權薪酬稀釋度遠低於我們的許多同行，目標是每年淨消耗率低於 3%。

Top economic times like these make you assess our strengths and weaknesses. Cloudflare has long had a product and engineering team that delivered an innovation engine that is the envy of the industry. Jen Taylor, who leads that team briefed me recently on everything we have lined up for the year ahead, and that engine is definitely not slowing down. Our next innovation week is in March with security week where we'll be launching a number of new products and feature enhancements, especially around our Zero Trust products. While our innovation engine is best in the industry and has unlocked the $125 billion total addressable market we have ahead of us.

像這樣的經濟高峰期讓你評估我們的優勢和劣勢。 Cloudflare 長期以來一直擁有一支產品和工程團隊，提供令業界羨慕的創新引擎。領導該團隊的 Jen Taylor 最近向我簡要介紹了我們為來年準備的一切，而且這個引擎絕對不會放慢速度。我們的下一個創新周是在 3 月的安全週，屆時我們將推出許多新產品和功能增強功能，尤其是圍繞我們的零信任產品。雖然我們的創新引擎是業內最好的，並且已經打開了我們前面的 1250 億美元的總潛在市場。

If we're honest with ourselves, our go-to-market organization hasn't yet been fully optimized. As our products to become more complicated and we are selling to larger and larger customers, it's increasingly clear that we need to step up our game in marketing and sales. I introduced Marc Boroditsky who joined last quarter to lead our sales organization. Last week, we briefed me and Michelle on his first 100 days. My initial reaction, if I'm honest with embarrassment, over some of the basic things we should have been doing better, but my second reaction was excitement is there are so many opportunities for us to improve.

如果我們對自己誠實，我們的上市組織還沒有完全優化。隨著我們的產品變得越來越複雜，我們正在向越來越多的客戶銷售產品，越來越明顯的是，我們需要加強營銷和銷售。我介紹了上個季度加入領導我們的銷售組織的 Marc Boroditsky。上週，我們向我和米歇爾介紹了他上任 100 天的情況。我最初的反應是，如果我坦白說尷尬的話，在一些我們應該做得更好的基本事情上，但我的第二個反應是興奮，因為我們有很多改進的機會。

In addition to Mark, Brent Remai joined us last quarter to lead our marketing team. Brent was previously CMO at FireEye and CMO of Core Services at AWS. His career perfectly prepared him for Cloudflare's delivery of cloud security services. We've seen early results with Brent's team generating pipeline in Q4 and January of Q1 coming in ahead of our target. We've been leaders on the product and engineering side.

除了 Mark 之外，Brent Remai 上個季度也加入了我們，領導我們的營銷團隊。 Brent 之前是 FireEye 的 CMO 和 AWS 的 Core Services 的 CMO。他的職業生涯為 Cloudflare 交付云安全服務做好了充分準備。我們已經看到布倫特的團隊在第四季度和第一季度的 1 月生成管道的早期結果超過了我們的目標。我們一直是產品和工程方面的領導者。

Now we're focusing on becoming a leader in the go-to-market side as well. I hear the excitement from our existing sales and marketing teams at the rigor and discipline Mark and Brent are bringing to those teams. And what I'm watching carefully is another important pipeline, the pipeline of new sales talent. We're seeing incredible people from the leading sales team in the world apply to work at Cloudflare.

現在，我們也致力於成為上市方面的領導者。我聽到我們現有的銷售和營銷團隊對馬克和布倫特給這些團隊帶來的嚴謹和紀律感到興奮。我正在仔細觀察的是另一個重要的渠道，即新銷售人才的渠道。我們看到來自世界領先的銷售團隊的令人難以置信的人申請在 Cloudflare 工作。

We aim for nothing less than to build one of the leading sales organizations in the world. That's all exciting. And while I believe there is a substantial opportunity for us to improve our go-to-market engine, I'm also cognizant that these efforts can take time. That's why we're not relying on any improvement in sales or marketing efficiency or any rebound in the economy as we look at the year ahead and formulate our guidance. So focusing on the presence, let me highlight some customer wins from the quarter.

我們的目標不亞於建立世界領先的銷售組織之一。這一切都令人興奮。雖然我相信我們有很大的機會改進我們的上市引擎，但我也認識到這些努力可能需要時間。這就是為什麼我們在展望未來一年並製定我們的指導方針時，不依賴於銷售或營銷效率的任何改善或經濟的任何反彈。因此，關注存在，讓我強調本季度贏得的一些客戶。

A Fortune 500 energy company signed a 3-year $1.6 million deal that was a takeout of a first-generation Zero Trust networking competitor. We are placing both their Secure Web Gateway and Zero Trust network access products. Because the competitor's network is actually broken into multiple distinct clouds as compared with our unified network that reliability and performance were underperforming the customers' expectations. We were able to replace the competitor's feature set and more.

一家財富 500 強能源公司簽署了一項為期 3 年 160 萬美元的交易，這是對第一代零信任網絡競爭對手的收購。我們放置了他們的 Secure Web Gateway 和零信任網絡訪問產品。因為與我們的統一網絡相比，競爭對手的網絡實際上被分成多個不同的雲，可靠性和性能低於客戶的預期。我們能夠替換競爭對手的功能集等等。

The customer ultimately purchased gateway, access, remote browser isolation and DNS filtering. The customer was attracted to our better pricing, performance and ease of use as well as the single pane of glass manageability of our platform. We worked with a large channel partner to win and service this customer and expect we'll be doing more with them going forward. A Fortune 500 financial services company expanded the relationship with Cloudflare, signing a 3-year $1.1 million deal. A Scenic Cloud customer since 2014 using our core application services, like we're hearing from many of our customers, they wanted to consolidate vendors, reduce costs and have more flexibility and control over their traffic flows as well as implementing a 0 trust architecture.

客戶最終購買了網關、訪問、遠程瀏覽器隔離和DNS過濾。客戶被我們更好的價格、性能和易用性以及平台的單一管理平台所吸引。我們與一家大型渠道合作夥伴合作，贏得併為該客戶提供服務，並期望我們將與他們一起做更多的事情。一家財富 500 強金融服務公司擴大了與 Cloudflare 的關係，簽署了一項為期 3 年 110 萬美元的交易。自 2014 年以來使用我們核心應用程序服務的 Scenic Cloud 客戶，就像我們從許多客戶那裡聽到的那樣，他們希望整合供應商、降低成本、更靈活地控制他們的流量以及實施 0 信任架構。

They wanted to move away from legacy on-prem hardware to modern cloud-based services. The customers love that we have a single payment glass solution and that our technology is built from the ground up on a single platform rather than a Frankenstein solution bolted together through M&A. They purchase access, gateway, remote roster isolation, Magic WAN and Magic firewall. They're a terrific customer. A Fortune 500 telecom signed a $400,000 1-year deal to bring a portion of Cloudflare's Zero Trust services to their consumer base. They're bundling Cloudflare's DNS content filtering into their consumer security bundle.

他們希望從傳統的本地硬件轉移到現代的基於雲的服務。客戶喜歡我們擁有單一的支付玻璃解決方案，並且我們的技術是在單一平台上從頭開始構建的，而不是通過併購連接在一起的弗蘭肯斯坦解決方案。他們購買訪問權限、網關、遠程名冊隔離、Magic WAN 和 Magic 防火牆。他們是一個了不起的客戶。一家財富 500 強電信公司簽署了一項價值 400,000 美元的 1 年期協議，將 Cloudflare 的部分零信任服務帶給他們的消費者群。他們將 Cloudflare 的 DNS 內容過濾捆綁到他們的消費者安全包中。

After evaluating competition, they found Cloudflare solutions to be the most secure and reliable in the market. This deal is not only valuable for the obvious reasons, but also because it will feed data back to our Zero Trust security products to further extend their lead over the competition. A leading generative AI company signed a 1-year $1 million deal. The company had been a user of our free tier since 2017. And this deal originally started out as a relatively small gateway DS opportunity to replace Cisco umbrella.

在評估競爭後，他們發現 Cloudflare 解決方案是市場上最安全可靠的解決方案。這筆交易不僅因為顯而易見的原因而有價值，還因為它將數據反饋給我們的零信任安全產品，以進一步擴大他們在競爭中的領先優勢。一家領先的生成式 AI 公司簽署了一份為期 1 年 100 萬美元的交易。該公司自 2017 年以來一直是我們免費套餐的用戶。這筆交易最初是作為一個相對較小的網關 DS 機會來取代思科保護傘的。

However, when their browser-based application debuted in late November, demand for the company's AI-generated content absolutely exploded with unprecedented rates of adoption. Their Azure front door set are quickly proved insufficient at handling the massive load on their services from legitimate users as well as keeping fraudulent users from exhausting their resources. They started off with CDM, DDoS, bot management, Gateway D&S and more. We are actively exploring various paths for expansion to support their incredible growth as well as emerging use cases of their AI models and applications with cloud leer workers, API shields, imagery sizing and more.

然而，當他們基於瀏覽器的應用程序於 11 月下旬首次亮相時，對該公司 AI 生成內容的需求以前所未有的採用率絕對爆炸式增長。他們的 Azure 前門設置很快就被證明不足以處理合法用戶對其服務的大量負載，也無法防止欺詐用戶耗盡他們的資源。他們從 CDM、DDoS、機器人管理、網關 D&S 等著手。我們正在積極探索各種擴展途徑，以支持他們令人難以置信的增長，以及他們的 AI 模型和應用程序的新興用例，包括雲 leer worker、API 盾牌、圖像大小調整等。

We saw success with other AI companies in the quarter as well. given the resource constraints they all face as well as how attractive they are as a target to fraudulent users, cloud security solutions are an obvious choice for all of them, but many of them came to us for other reasons as well. AI companies, in particular, need to find wherever it's most cost effective to run their models across multiple different cloud providers. They are, by their very nature, multi-cloud, but the data egress policies make it prohibitive to move large training sets between the cloud and our cloud flare workers.

我們在本季度也看到了其他人工智能公司的成功。考慮到他們都面臨的資源限制以及他們作為欺詐用戶目標的吸引力，雲安全解決方案顯然是他們所有人的選擇，但他們中的許多人也是出於其他原因來找我們的。人工智能公司尤其需要找到在多個不同的雲提供商之間運行其模型最具成本效益的地方。就其本質而言，它們是多雲的，但數據出口政策禁止在雲和我們的雲耀斑工作人員之間移動大型訓練集。

What we're finding with these AI companies is that R2 and other workers' products naturally become the glue at the center of a multi-cloud ecosystem. R2 has become the natural neutral place for these AI companies to store their training data in order to make sure it can be inexpensively and efficiently access from anywhere. It's obvious in retrospect. But it's a use case we didn't anticipate. Today, our largest R2 customer is another AI company using us for exactly the purpose of being a neutral place to store their training data. And of course, [being a] neutral network super Cloud that stitches together the traditional public cloud isn't a problem exclusive to AI.

我們在這些人工智能公司身上發現的是，R2 和其他工人的產品自然而然地成為了多雲生態系統中心的粘合劑。 R2 已成為這些 AI 公司存儲訓練數據的天然中立場所，以確保可以從任何地方廉價高效地訪問這些數據。回想起來很明顯。但這是我們沒有預料到的用例。今天，我們最大的 R2 客戶是另一家人工智能公司，他們使用我們的目的正是作為一個中立的地方來存儲他們的訓練數據。當然，[成為] 將傳統公共雲縫合在一起的中立網絡超級雲並不是 AI 獨有的問題。

A European financial services company signed a 5-year $1.8 million deal replacing a dozen different security and network vendors with Cloudflare. This company settled hundreds of millions of securities transactions annually for the largest banks and governments in the world. As a result, security and regulatory compliance are paramount for them. They wanted to consolidate and simplify their numerous point solutions into a single pane of glass solution. After receiving regulatory approval, the customer signed on for multiple solutions across our core application services portfolio as well as both Zero Trust and network services in Cloudflare 1, including access, DNS filtering and Magic Transit.

一家歐洲金融服務公司簽署了一項為期 5 年、價值 180 萬美元的交易，用 Cloudflare 取代了十幾家不同的安全和網絡供應商。該公司每年為世界上最大的銀行和政府結算數億筆證券交易。因此，安全和合規性對他們來說至關重要。他們希望將眾多單點解決方案整合併簡化為單一管理平台解決方案。在獲得監管部門批准後，客戶簽署了我們核心應用程序服務組合的多個解決方案以及 Cloudflare 1 中的零信任和網絡服務，包括訪問、DNS 過濾和 Magic Transit。

In addition to consolidating their spend across multiple point solution vendors on to Cloudflare's broad platform, our data localization suite, in particular, won them over. Competing vendors simply do not have an equivalent solution. As companies increasingly face localization and data residency requirements becoming law in various geographies, our differentiated data localization suite is becoming more and more critical to customers. A public utility company in Africa signed a $2.8 million 75-month deal to help support a really cool industrial IoT rollout.

除了將他們在多個點解決方案供應商的支出整合到 Cloudflare 的廣泛平台上之外，我們的數據本地化套件尤其贏得了他們的青睞。競爭供應商根本沒有等效的解決方案。隨著公司越來越多地面臨本地化和數據駐留要求成為各個地區的法律，我們差異化的數據本地化套件對客戶來說變得越來越重要。非洲的一家公用事業公司簽署了一項為期 75 個月的價值 280 萬美元的協議，以幫助支持非常酷的工業物聯網部署。

They're using Cloudflare's intelligent network to monitor 3,300 sensors, tracking shipments of materials. This is another use case of Cloudflare's network we wouldn't have imagined on our own, but one we're uniquely positioned to deliver for the customer and now opens even more markets and opportunities. The state of North Carolina signed a 3-year, $3 million deal. The state had originally come to under our Athenian project for free help with election security -- they learned the power of Cloudflare using us to protect their elections infrastructure and sign the deal to expand Cloudflare protection across 50 state agencies.

他們使用 Cloudflare 的智能網絡監控 3,300 個傳感器，跟踪材料的運輸。這是我們自己無法想像的 Cloudflare 網絡的另一個用例，但我們在為客戶交付方面具有獨特的優勢，現在打開了更多的市場和機會。北卡羅來納州簽署了一項為期 3 年、價值 300 萬美元的協議。該州最初是在我們的雅典項目下尋求選舉安全方面的免費幫助——他們了解了 Cloudflare 的強大功能，使用我們來保護他們的選舉基礎設施，並簽署了將 Cloudflare 保護擴展到 50 個州機構的協議。

Finally, I'm happy to report that after a longer-than-expected way at the proverbial DMV, we officially received Cloudflare's FedRAMP certification. The certification covers nearly our full suite of products with a notable exception of Area 1 e-mail security product, which we acquired after we started the FedRAMP process, but we expect to add it to our certification at the FedRAMP renewal. Our first federal contract after our certification was a great start. We were awarded the $7.2 million 5-year deal to operate the .gov registry.

最後，我很高興地報告，在眾所周知的 DMV 中經歷了比預期更長的時間後，我們正式獲得了 Cloudflare 的 FedRAMP 認證。該認證幾乎涵蓋了我們的全套產品，但 Area 1 電子郵件安全產品是一個明顯的例外，該產品是我們在啟動 FedRAMP 流程後獲得的，但我們希望在 FedRAMP 更新時將其添加到我們的認證中。我們獲得認證後的第一份聯邦合同是一個很好的開始。我們獲得了 720 萬美元的 5 年合約，用於運營 .gov 註冊管理機構。

We were awarded the contract because of our modern infrastructure, technical prowess, relentless innovation and proven ability to defend against the largest cyber attacks. Every e-mail sent to the White House, every agency's web page and most of the other ways the U.S. government connects to the Internet, now depend on Cloudflare and our network. We're proud to have won this business, but the public sector space is only 3% of our revenue today, so we believe it's only the beginning of what we'll be doing in the future.

我們之所以獲得這份合同，是因為我們擁有現代化的基礎設施、技術實力、不懈的創新以及經過驗證的抵禦最大規模網絡攻擊的能力。發送到白宮的每封電子郵件、每個機構的網頁以及美國政府連接到互聯網的大多數其他方式，現在都依賴於 Cloudflare 和我們的網絡。我們為贏得這項業務而感到自豪，但公共部門空間目前僅占我們收入的 3%，因此我們相信這只是我們未來工作的開始。

With that, I'll turn it over to Thomas. Thomas, take it away.

有了這個，我會把它交給托馬斯。托馬斯，把它拿走。

Thank you, Matthew, and thank you to everyone for joining us. I want to take a moment to welcome Phil Winslow, our new VP of Strategic Finance, Treasury and Investor Relations to the team. As an influential equity research analyst who has been following Cloudflare even before our IPO fill brings a wealth of knowledge, expertise and relationships to his role at Cloudflare, and we are excited to have him on board.

謝謝你，馬修，感謝大家加入我們。我想花點時間歡迎 Phil Winslow 加入我們的團隊，他是我們負責戰略財務、財務和投資者關係的新任副總裁。作為一名有影響力的股票研究分析師，他甚至在我們首次公開募股之前就一直在關注 Cloudflare，這為他在 Cloudflare 的職位帶來了豐富的知識、專業知識和人際關係，我們很高興他能加入我們。

Turning to the fourth quarter. Economic uncertainty resulted in businesses being more cautious with their spending, leading to longer decision-making processes and ultimately longer sales cycles during the quarter. pressuring revenue growth across the technology industry, including Cloudflare. However, we remain focused on controlling what is in our control, which is to maintain our commitment to the efficient unit economics of the business and to prudently allocate capital with a focus on maximizing shareholder value.

轉到第四季度。經濟不確定性導致企業對支出更加謹慎，導致決策過程更長，最終導致本季度銷售週期更長。給包括 Cloudflare 在內的整個科技行業的收入增長帶來壓力。然而，我們仍然專注於控制在我們控制範圍內的事情，即保持我們對企業高效單位經濟的承諾，並審慎地分配資本，重點是股東價值最大化。

As a result, we delivered a record quarter in terms of operating profit operating margin and free cash flow. I'm particularly proud of our free cash flow performance during the fourth quarter, and we are committed to continuing to scale free cash flow generation going forward. Turning to revenue. Total revenue for the fourth quarter increased 42% year-over-year to $274.7 million.

因此，我們在營業利潤營業利潤率和自由現金流方面創造了創紀錄的季度。我對我們第四季度的自由現金流表現感到特別自豪，我們致力於繼續擴大未來自由現金流的產生。談到收入。第四季度總收入同比增長 42% 至 2.747 億美元。

From a geographic perspective, the U.S. represented 53% of revenue and increased 44% year-over-year. EMEA represented 27% of revenue and increased 42% year-over-year. APAC represented 13% of revenue and increased 40% year-over-year. Turning to our customer metrics in the fourth quarter. We had 162,086 paying customers, representing an addition of roughly 22,000 paying customers in 2022 and an increase of 16% year-over-year. We were pleased to see retention improve in the pay-as-you-go customer base in the fourth quarter returning to the levels we achieved in the late 2020 through early 2022.

從地理角度來看，美國占收入的 53%，同比增長 44%。 EMEA 佔收入的 27%，同比增長 42%。亞太地區佔收入的 13%，同比增長 40%。轉向我們第四季度的客戶指標。我們擁有 162,086 名付費客戶，這意味著 2022 年將增加約 22,000 名付費客戶，同比增長 16%。我們很高興看到第四季度現收現付客戶群的保留率有所提高，恢復到我們在 2020 年底至 2022 年初實現的水平。

Turning to large customers. We ended the quarter with 2,042 large customers, representing an increase of 44% year-over-year and an addition of 134 large customers in the quarter. During the quarter, we also added a record number of net new customers paying us more than $500,000 a year. As Matthew mentioned earlier, we are also pleased to see large customer revenue contribution increased again sequentially to 63% of revenue, up from 57% in the fourth quarter last year. For fiscal 2022, large customers represented 61% of total revenue compared to 54% of total revenue in 2021 and 46% in 2020. For the full year, we are also breaking out large customers into cohorts of those who spend greater than $500,000 and $1 million.

轉向大客戶。本季度末，我們擁有 2,042 家大客戶，同比增長 44%，本季度新增 134 家大客戶。在本季度，我們還增加了創紀錄數量的淨新客戶，每年向我們支付超過 500,000 美元。正如 Matthew 之前提到的，我們也很高興看到大客戶的收入貢獻從去年第四季度的 57% 再次增加到收入的 63%。在 2022 財年，大客戶佔總收入的 61%，而 2021 年和 2020 年分別佔總收入的 54% 和 46%。對於全年，我們還將大客戶分為支出超過 500,000 美元和 1 美元的群體百萬。

We ended the year with 222 customers that spend over $500,000 with us, an 83% increase year-over-year. We ended the year with 85 customers that spend over $1 million with us, a 52% increase year-over-year. Our dollar-based net retention rate was 122% during the fourth quarter, a decrease of 200 basis points sequentially and a decrease of 300 basis points year-over-year. We've not experienced elevated churn. Instead, similar to last quarter, the decline was primarily driven by less net expansion in customers spending less than $100,000 worth Cloudflare as well as pay-as-you-go customers.

到年底，我們有 222 位客戶在我們這里花費超過 500,000 美元，同比增長 83%。到年底，我們有 85 位客戶在我們這里花費超過 100 萬美元，同比增長 52%。第四季度我們基於美元的淨保留率為 122%，環比下降 200 個基點，同比下降 300 個基點。我們沒有經歷過更高的客戶流失率。相反，與上一季度類似，下降的主要原因是 Cloudflare 支出低於 100,000 美元的客戶以及即用即付客戶的淨擴張減少。

Conversely, our large customer net expansion was flat quarter-to-quarter and remains consistent with our average quarterly D&R for this customer segment since the end of 2019. We continue to expect D&R to trend upward over time to our long-term target of 130% plus Also, we anticipate some variability from time to time particularly as customers are more cautious in their near-term spending, which, as I mentioned before, has impacted sales cycles.

相反，我們的大客戶淨擴張季度環比持平，與我們自 2019 年底以來對該客戶群的平均季度 D&R 保持一致。我們繼續預計 D&R 將隨著時間的推移呈上升趨勢，達到我們 130 的長期目標% plus 此外，我們預計會不時出現一些變化，特別是因為客戶對近期支出更加謹慎，正如我之前提到的，這已經影響了銷售週期。

Moving to gross margin. Fourth quarter gross margin was 77.4% and 78.2% for fiscal 2022, both of which remain above our long-term target range of 75% to 77%. Network CapEx represented 10% of revenue in the fourth quarter. For full year 2022, network CapEx represented 11% of revenue as compared with our guidance at the beginning of the year at 12% to 14%, which demonstrates the flexibility, elasticity and scalability we have achieved in our network.

轉向毛利率。 2022 財年第四季度毛利率分別為 77.4% 和 78.2%，均高於我們 75% 至 77% 的長期目標範圍。網絡資本支出佔第四季度收入的 10%。對於 2022 年全年，網絡資本支出佔收入的 11%，而我們年初的指導值為 12% 至 14%，這表明我們在網絡中實現了靈活性、彈性和可擴展性。

For fiscal 2023, we expect network CapEx to be 11% to 13% of revenue. Turning to operating expenses. Also, the economic challenges for every business currently, we again took proactive measures during the fourth quarter to improve operational efficiency and control discretionary spending. As a result of these actions, fourth quarter operating expenses as a percentage of revenue decreased 1% sequentially and 7% year-over-year to 71%. Our total number of employees increased 32% year-over-year bringing our total head count to approximately 3,220 at the end of the quarter.

對於 2023 財年，我們預計網絡資本支出將佔收入的 11% 至 13%。轉向運營費用。此外，鑑於目前每個企業都面臨經濟挑戰，我們在第四季度再次採取積極措施來提高運營效率並控制可自由支配的支出。由於採取了這些措施，第四季度營業費用佔收入的百分比環比下降 1%，同比下降 7% 至 71%。我們的員工總數同比增長 32%，使我們的總人數在本季度末達到約 3,220 人。

We'll continue to pace hiring for the year based on current market conditions to deliver consistent results with a keen focus on allocating our talent to key strategic areas of the business to help us achieve our objective of $5 billion in annualized revenue in 5 years and to do so profitably, predictively and productively. Sales and marketing expenses were $113 million for the quarter.

我們將繼續根據當前的市場狀況調整今年的招聘速度，以提供一致的結果，重點關注將我們的人才分配到業務的關鍵戰略領域，以幫助我們實現 5 年內年收入 50 億美元的目標，以及以有利可圖、有預見性和富有成效地這樣做。本季度的銷售和營銷費用為 1.13 億美元。

Sales and marketing as a percentage of revenue remained consistent sequentially and decreased to 41% from 44% in the same quarter last year. Research and development expenses were $49.4 million in the quarter. R&D as a percentage of revenue remained consistent sequentially and decreased to 18% from 19% in the same quarter last year.

銷售和營銷佔收入的百分比環比保持一致，從去年同期的 44% 降至 41%。本季度的研發費用為 4940 萬美元。研發佔收入的百分比環比保持一致，從去年同期的 19% 降至 18%。

General and administrative expenses was $33.3 million for the quarter. G&A as a percentage of revenue decreased by 1% sequentially and decreased to 12% from 14% in the same quarter last year. Operating income for $16.8 million compared to an operating income of $2.3 million in the same period last year.

本季度的一般和行政費用為 3330 萬美元。 G&A 佔收入的百分比環比下降 1%，從去年同期的 14% 降至 12%。營業收入為 1680 萬美元，而去年同期的營業收入為 230 萬美元。

Fourth quarter operating margin was 6.1%, an increase of 490 basis points year-over-year. These results underscore our responsiveness to market conditions and our ability to scale up or scale down our spending is needed to meet demand, highlighting the efficiency and elasticity of our business model which remain key elements of Cloudflare's success. Turning to net income in the balance sheet. Our net income in the quarter was $21.6 million or a diluted net income per share of $0.06. Tax expenses for the quarter was $2.3 million.

第四季度營業利潤率為 6.1%，同比增長 490 個基點。這些結果突顯了我們對市場狀況的響應能力，以及我們擴大或縮減支出以滿足需求的能力，突顯了我們業務模式的效率和彈性，這仍然是 Cloudflare 成功的關鍵要素。轉向資產負債表中的淨收入。我們本季度的淨收入為 2160 萬美元，即每股攤薄淨收入為 0.06 美元。本季度的稅收支出為 230 萬美元。

We ended the fourth quarter with $1.6 billion in cash, cash equivalents and available-for-sale securities. Free cash flow was $33.7 million in the fourth quarter or 12% of revenue compared to $8.6 million or 4% of revenue in the same period last year. Operating cash flow was $78.1 million in the fourth quarter or 28% of revenue compared to $40.6 million or 21% of revenue in the same period last year.

第四季度結束時，我們擁有 16 億美元的現金、現金等價物和可供出售的證券。第四季度自由現金流為 3370 萬美元，佔收入的 12%，而去年同期為 860 萬美元，佔收入的 4%。第四季度經營現金流為 7810 萬美元，佔收入的 28%，而去年同期為 4060 萬美元，佔收入的 21%。

Remaining performance obligations or RPO came in at $907 million, representing an increase of 9% sequentially and 45% year-over-year. Current RPO was 74% of total RPO. Before moving to guidance for the first quarter and full year. I would like to begin with our expectations and the provisions we have factored into guidance.

剩餘履約義務或 RPO 為 9.07 億美元，環比增長 9%，同比增長 45%。當前 RPO 佔總 RPO 的 74%。在轉向第一季度和全年的指導之前。我想從我們的期望和我們已納入指南的規定開始。

We performed rigorous scenario analysis across multiple vectors from pipeline and ACV growth to productivity. In order to understand both our company-specific opportunities as well as the risks from the current economic uncertainty. In our guidance, we have not factored in any improvement in the macroeconomic environment or from our go-to-market initiatives. Specifically, despite a notable improvement in our pipeline exiting 2022 as compared to with the first half of the year, we have assumed the increase in sales cycle, which we observed in the second half of last year continues in 2023 and have, therefore, incorporated close rates below recent historical lows.

我們對從管道和 ACV 增長到生產力的多個向量進行了嚴格的情景分析。為了了解我們公司的特定機會以及當前經濟不確定性帶來的風險。在我們的指導中，我們沒有考慮宏觀經濟環境或我們的上市計劃的任何改善。具體而言，儘管與今年上半年相比，我們在 2022 年退出的管道有顯著改善，但我們假設我們在去年下半年觀察到的銷售週期增加將持續到 2023 年，因此，將收盤價低於近期歷史低點。

Furthermore, as Matthew discussed earlier, we believe sales and marketing can be broken down into a series of processes that can be organized, measured and continuously optimized. Marc and Brent are establishing a consistent structure model and process that simplifies how we operate and how we interact with prospects, customers and partners. Because the new leadership team, we've already assembled has successfully executed these go-to-market playbooks before at other companies.

此外，正如 Matthew 之前討論的那樣，我們認為銷售和營銷可以分解為一系列可以組織、衡量和持續優化的流程。 Marc 和 Brent 正在建立一個一致的結構模型和流程，以簡化我們的運營方式以及我們與潛在客戶、客戶和合作夥伴的互動方式。因為我們已經組建的新領導團隊已經在其他公司成功地執行了這些進入市場的劇本。

We are confident in the ramp of implementing these models and tactics which we expect will ultimately improve revenue growth and productivity. However, we have not incorporated any improvement in sales productivity in our guidance for 2023, embedding, in fact, productivity levels below our recent historical lows. Now turning to guidance for the first quarter. We expect revenue in the range of $290 million to $291 million, representing an increase of 37% year-over-year. We expect operating income in the range of $11.5 million to $12.5 million, and we expect diluted net income per share of $0.03 to $0.04, assuming approximately 342 million common shares outstanding. We expect an effective tax rate of 36%.

我們對實施這些模型和策略的速度充滿信心，我們預計這些模型和策略最終將提高收入增長和生產力。但是，我們沒有在 2023 年的指導中納入任何銷售生產力的改善，事實上，生產力水平低於我們最近的歷史低點。現在轉向第一季度的指導。我們預計收入在 2.9 億美元至 2.91 億美元之間，同比增長 37%。我們預計營業收入在 1150 萬美元至 1250 萬美元之間，我們預計稀釋後的每股淨收入為 0.03 美元至 0.04 美元，假設流通在外的普通股約為 3.42 億股。我們預計有效稅率為 36%。

For the full year 2023, we expect revenue in the range of [$1.330 billion to $1.342] billion representing an increase of 37% year-over-year at the midpoint. We expect operating income for the full year in the range of $54 million to $58 million, and we expect diluted net income per share over the period in the range of $0.15 to $0.16, assuming approximately 344 million common shares outstanding. We expect an effective tax rate of 36%.

對於 2023 年全年，我們預計收入在 [13.30 億美元至 13.42 美元] 之間，中點同比增長 37%。我們預計全年營業收入在 5400 萬美元至 5800 萬美元之間，我們預計在此期間攤薄後的每股淨收入在 0.15 美元至 0.16 美元之間，假設發行在外的普通股約為 3.44 億股。我們預計有效稅率為 36%。

Beginning in 2023, Cloudflare subject to BEAT the base erosion and anti-abuse minimum tax, which is the primary driver for the increased tax rate year-over-year. After having achieved positive free cash flow in the second half of last year, we anticipate being free cash flow positive for the full year 2023. While we expect free cash flow to trend upward on an ongoing basis, for modeling purposes, we anticipate near-term variability in our cash flow generation with the first half of 2023 expected to be relatively breakeven. We remain confident in the elasticity and durability of our business model, and we'll continue to pursue the enormous opportunity ahead of us while raising the bar on our operational excellence.

從 2023 年開始，Cloudflare 將受到 BEAT 稅基侵蝕和反濫用最低稅的影響，這是稅率同比增長的主要驅動力。在去年下半年實現正自由現金流後，我們預計 2023 年全年自由現金流為正。雖然我們預計自由現金流將持續上升，但出於建模目的，我們預計近- 2023 年上半年我們的現金流產生的期限可變性預計將相對收支平衡。我們對我們商業模式的彈性和持久性仍然充滿信心，我們將繼續追求我們面前的巨大機遇，同時提高我們卓越運營的標準。

In closing, I'd like to thank our employees for their continued dedication to our mission customers and partners. And with that, I'd like to open it up for questions. Operator, please poll for questions.

最後，我要感謝我們的員工對我們使命客戶和合作夥伴的持續奉獻。有了這個，我想打開它來提問。接線員，請投票提問。

(Operator Instructions) We will take our first question from Matt Hedberg, RBC Capital Markets.

（操作員說明）我們將從 RBC 資本市場的 Matt Hedberg 那裡回答我們的第一個問題。

And congrats, Phil, on your new role. Looking forward to working with you on that side of the table. I guess one of the questions I'm getting is around the conservatism in your '23 revenue outlook. Obviously, Thomas, you talked about some of the levers of conservatism. But I guess with 37% growth for both Q1 and the full year, obviously, your comps ease as the year progresses. But is there something that perhaps kicks in during Q2 or the second half of the year, like maybe like the price increase you announced last year, or maybe a large customer renewal that would drive the linearity this year?

祝賀 Phil 擔任新職務。期待在談判桌的那一邊與您合作。我想我得到的問題之一是關於你 23 年收入前景中的保守主義。很明顯，托馬斯，你談到了保守主義的一些槓桿。但我猜想第一季度和全年都增長了 37%，顯然，隨著時間的推移，你的收入會減少。但是，在第二季度或今年下半年是否會有一些事情發生，比如你去年宣布的價格上漲，或者可能會推動今年線性增長的大量客戶更新？

John, I think we stick to our rule of trying to be prudent and thoughtful how we think about the future, especially in a rather uncertain environment. I think that the important takeaway in the guidance that we put forward is that we did not assume any help from the macroeconomic environment. We did not plan that things would get better. And we have a lot of initiatives to that will accelerate sales productivity and accelerate growth, things that we can control.

約翰，我認為我們堅持我們的規則，即努力謹慎和深思熟慮我們如何看待未來，尤其是在一個相當不確定的環境中。我認為我們提出的指南中的重要內容是我們沒有假設宏觀經濟環境會提供任何幫助。我們沒有計劃事情會變得更好。我們有很多舉措可以提高銷售效率並加速增長，這些都是我們可以控制的。

But we've been rather conservative there too in terms of what we anticipated in the guidance we gave. So I think it was our goal in a world where there are a lot of variables that shift around to find some ground of stability from BV from which where we can build on moving forward. But I think prudent is what we said here in COVID and thoughtful is what we said during COVID,and I think we stick to that philosophy, keeping our hands on the steering wheel as Matthew would call it and work on what we can control.

但就我們給出的指導中的預期而言，我們在那裡也相當保守。所以我認為我們的目標是在一個有很多變數的世界裡，從 BV 中找到一些穩定的基礎，我們可以從中繼續前進。但我認為謹慎是我們在 COVID 期間所說的，深思熟慮是我們在 COVID 期間所說的，我認為我們堅持這一理念，將雙手放在方向盤上，就像馬修所說的那樣，並致力於我們可以控制的事情。

Great. And then maybe just a quick one, Matthew. Within your security portfolio, you noted some nice wins in your prepared remarks. I'm wondering, can you talk about maybe just some of the win rates specifically on your enterprise-grade customers within Zero Trust deals, I guess, specifically against some best-of-breed customers that you noted on the call?

偉大的。然後也許只是一個快速的，馬修。在您的安全投資組合中，您在準備好的評論中註意到了一些不錯的勝利。我想知道，您能否談談在零信任交易中專門針對您的企業級客戶的一些贏率，我想，特別是針對您在電話會議上提到的一些同類最佳客戶？

Yes. I think that we are really happy with our win rates. What I think our challenge is in the Zero Trust space is not winning customers that know about us, but making sure that customers that are in the market for Zero Trust services are aware that, that's something we do. The frustration that I still have is when I meet with the customer and oftentimes, they'll literally say, you should build something that is in the Zero Trust space, competing with a Zscaler or Palo Alto Networks.

是的。我認為我們對我們的勝率非常滿意。我認為我們在零信任領域面臨的挑戰不是贏得了解我們的客戶，而是確保零信任服務市場上的客戶意識到這一點，這就是我們所做的事情。我仍然感到沮喪的是，當我與客戶會面時，他們經常會直截了當地說，你應該在零信任領域構建一些東西，與 Zscaler 或 Palo Alto Networks 競爭。

And so when we're in those deals, we find ourselves winning very often. I think we are especially successful with very technical rigorous companies that measure performance and care about making sure that they have the best possible end user and especially developer experience. But our challenge now and what Brent and Mark are really focused on is how in that space do we increase our awareness. And I think you're going to see a lot of us doing that. But when we're in the deal, we tend to have very, very strong win rates that rival what we see from our other products.

因此，當我們參與這些交易時，我們發現自己經常獲勝。我認為我們在技術上非常嚴謹的公司尤其成功，這些公司衡量性能並關心確保他們擁有最好的最終用戶，尤其是開發人員體驗。但我們現在面臨的挑戰以及布倫特和馬克真正關注的是我們如何在這個領域提高我們的意識。我想你會看到我們很多人都這樣做。但是當我們參與交易時，我們往往會擁有非常非常高的贏率，可以與我們從其他產品中看到的相媲美。

Next up, we'll hear from Sterling Auty, SVB.

接下來，我們將聽取 SVB 的 Sterling Auty 的意見。

So Matthew, I think it would be helpful for investors to understand. You talked about the AI opportunity and the use cases, but help investors understand how the revenue opportunity with those types of customers actually ramped since you have that subscription model versus a consumption model.

所以馬修，我認為這將有助於投資者理解。你談到了人工智能的機會和用例，但幫助投資者了解了與這些類型的客戶的收入機會實際上是如何增加的，因為你有訂閱模式與消費模式。

Yes. So the way that we've been -- the way that is sort of the natural way that we thought companies like AI companies would consume Cloudflare, we'll be looking at our security products.

是的。因此，按照我們一直以來的方式——我們認為像 AI 公司這樣的公司會使用 Cloudflare 的自然方式，我們將關注我們的安全產品。

And those are products that, as you said, are subscription-based and there's some opportunity there, but there really aren't yet that many AI companies. So that opportunity is fine. But I don't think it's anything that we would get really excited about.

正如你所說，這些產品是基於訂閱的，那裡有一些機會，但實際上還沒有那麼多人工智能公司。所以這個機會很好。但我認為這不會讓我們真正感到興奮。

I think what we're seeing though is in that cluster of AI companies, they have a real use case for the cloud which is somewhat different than what we see from some other companies. It is, I would say, more forward leaning and that is that they are constantly looking for wherever the best model or wherever the cheapest GPUs are to process their data. And so they are looking around across multiple different cloud providers, whether that's Google or Microsoft or AWS and they're always saying, what can we take advantage of and get as much out of that as possible. And what the challenge for them is, is the AI training sets or these big lumps of data that they then have to sort of bring to wherever the model or bring to wherever that GPU is.

我認為我們看到的是在人工智能公司集群中，他們有一個真正的雲用例，這與我們從其他一些公司看到的有些不同。我想說的是，他們更傾向於前瞻性，他們一直在尋找最好的模型或最便宜的 GPU 來處理他們的數據。因此，他們正在四處尋找多個不同的雲提供商，無論是谷歌、微軟還是 AWS，他們總是在說，我們可以利用什麼並儘可能多地利用它。他們面臨的挑戰是 AI 訓練集或這些大塊數據，然後他們必須將它們帶到模型所在的任何地方或帶到 GPU 所在的任何地方。

And in that case, a lot of the workers products and, in particular, our R2 product, are a very natural way that they can put the data in 1 neutral location and then be able to access it all around in other locations as well. And what we're seeing is that, that neutral position of R2 is actually not just appealing for people in the AI space. But for anyone that has shared data that they want to use not in just 1 cloud but across multiple different clouds.

在這種情況下，許多工人產品，特別是我們的 R2 產品，是一種非常自然的方式，他們可以將數據放在一個中立位置，然後也可以在其他位置訪問它。我們看到的是，R2 的中立位置實際上不僅對 AI 領域的人有吸引力。但對於那些擁有共享數據的人來說，他們不僅希望在一個雲中使用，而且希望在多個不同的雲中使用這些數據。

And so I think by having a way to embed data into the network and store data into the network, that is an opportunity for us to service anybody who is trying to be multi-cloud, which is frankly what every big enterprise today is doing. And in that case, R2 is very much a consumption-based product. And so as AI data sets get larger and larger, we expect that we will be able to grow our 2 revenue along with that. And actually, our largest R2 customers, as I mentioned in the prepared remarks, is an AI company, and they're growing at just extraordinary rates as they put more data into their models.

因此，我認為通過一種將數據嵌入網絡並將數據存儲到網絡中的方法，這是我們為任何試圖成為多雲的人提供服務的機會，坦率地說，這就是當今每個大企業正在做的事情。在這種情況下，R2 在很大程度上是一種基於消費的產品。因此，隨著 AI 數據集變得越來越大，我們預計我們的 2 收入將能夠隨之增長。實際上，正如我在準備好的評論中提到的，我們最大的 R2 客戶是一家人工智能公司，隨著他們將更多數據放入模型中，他們正在以驚人的速度增長。

And then just a quick follow-up is how much of that ramp is factored into the full year guide?

然後快速跟進一下，全年指南中考慮了多少坡道？

I think that we are not looking for anything exotic here. I think, again, prudence is very much the sort of word of the quarter for us. And I think that we're not sort of counting on something that is the new hot thing doubling down on Cloudflare. And so while we're very proud of what we have done with companies in the AI space, and we're excited about the ramp in products like R2 and the overall workers ecosystem, we still think of that more as a long-term opportunity than a short-term quarterly or even 2023 opportunity. And so I think that we're not relying on sort of an AI miracle in order to make the numbers that we put up.

我認為我們不是在這裡尋找任何異國情調的東西。我再次認為，審慎對我們來說非常適合這個季度。而且我認為我們並沒有指望在 Cloudflare 上翻倍的新熱點。因此，儘管我們為我們在 AI 領域與公司所做的事情感到非常自豪，並且我們對 R2 等產品和整個員工生態系統的發展感到興奮，但我們仍然認為這是一個長期機會而不是短期的季度甚至 2023 年的機會。所以我認為我們不依賴某種人工智能奇蹟來創造我們提出的數字。

We'll take a question from James Breen, William Blair.

我們將接受 James Breen 和 William Blair 的提問。

Just 1 is a little bit of a runoff from that one. Just around some of the new products that you launched, the 1 full in the back half of last year, R2 being 1. Could you just give us some commentary around how that's picking up and launching those into maybe more challenging sales environment as it helped keep the DDR a little more stable than otherwise could have been. And then just financially, Thomas, if you can just talk a little bit about the decline in operating income sequentially into the first quarter, the seasonality there and what's happening?

只有 1 是那個的一點點徑流。就在您推出的一些新產品周圍，去年下半年的 1，R2 是 1。您能不能給我們一些評論，說明它是如何將這些產品帶入可能更具挑戰性的銷售環境中的，因為它有助於使 DDR 比其他方式更穩定。然後就財務而言，托馬斯，如果你能談談第一季度營業收入的連續下降，那裡的季節性以及發生了什麼？

Yes, Jim. So I'll start and then Thomas can take the second part. I think we're really happy with the ramps of these new products. Cloudflare, we've always thought of ourselves as stacking curves on behind another. And so I always think of sort of our application services products as sort of our first act. We think of our Zero Trust products as our second act. And we think of our workers products as our third act. And so I think that they're maturing at rates that are -- that continue to make us very excited and happy and we're seeing more and more new use cases that are coming from that. I think some of the trade-offs around DNR have been interesting here.

是的，吉姆。所以我先開始，然後 Thomas 可以開始第二部分。我認為我們對這些新產品的推出非常滿意。 Cloudflare，我們一直認為自己是將曲線疊加在另一個曲線之上。因此，我一直認為我們的應用服務產品是我們的第一步。我們將零信任產品視為我們的第二幕。我們將我們的工人產品視為我們的第三幕。所以我認為他們正在以這樣的速度成熟——這繼續讓我們非常興奮和高興，我們看到越來越多的新用例來自於它。我認為圍繞 DNR 的一些權衡在這裡很有趣。

One of the things that we really talked about last quarter optimizing for was just how we did cash collections and converting customers to paying upfront. And I think that 1 of the things that we made a trade-off on was at times saying, we would optimize for getting more customers to be paying us upfront.

上個季度我們真正討論的優化問題之一就是我們如何進行現金收款並將客戶轉變為預付款。而且我認為我們做出權衡的事情之一是有時會說，我們會優化以讓更多客戶預先付款給我們。

And that might not allow us to expand those customers as much in this quarter. And I think that's the right thing for us to do. We want to optimize in these times, making sure that we can collect cash as quickly as possible can be paid upfront as much as possible. That is continues to be an ongoing effort for us. But I think that, that was more of a drag on DNR. I think you'll start to see as those new products come online, that those will be positive. But remember that DNR only starts to kick in for a customer that's been with us for an entire year. So for those products that are new, they -- even if they are wildly successful, the expansion won't actually show up in our numbers until 12 months after the products were actually in the market.

這可能無法讓我們在本季度擴大這些客戶。我認為這對我們來說是正確的。我們希望在這些時候進行優化，確保我們能夠盡快收取現金並儘可能多地預付。這對我們來說仍然是一項持續的努力。但我認為，這更像是對 DNR 的拖累。我認為隨著這些新產品的上線，你會開始看到它們是積極的。但請記住，DNR 只對與我們合作了一整年的客戶才開始起作用。因此，對於那些新產品，即使它們取得了巨大的成功，在產品實際投放市場 12 個月後，擴張也不會真正出現在我們的數字中。

Follow last year was a year where we did very active management of our expenses. And we reacted really early to the slowdown in the macro environment by slowing down our hiring, especially the velocity of hiring. And we'll stay committed to this course during the course of this year and align our spending to the development of the business. So there were a lot of companies out there during the season's earnings call that talked about efficiency. I always like to point out that efficiencies DNA in the DNA of the company of Cloud tire. That is something that Matthew and Michelle already wrote in the founder letter for their prospects for the S-1. So this is what you want to expect from us, not only for the first quarter, but for the remainder of this year as long as the environment is what it is.

去年是我們對費用進行非常積極管理的一年。我們通過放慢招聘速度，特別是招聘速度，對宏觀環境的放緩做出了非常早的反應。我們將在今年繼續致力於這門課程，並使我們的支出與業務發展保持一致。因此，在本季度的財報電話會議上，有很多公司都在談論效率。我總是喜歡指出 Cloud 輪胎公司 DNA 中的效率 DNA。這是 Matthew 和 Michelle 已經在創始人信中寫下的關於 S-1 前景的內容。因此，這就是您對我們的期望，不僅是第一季度，而且是今年剩餘時間，只要環境是這樣。

We'll go to Shaul Eyal with Cowen.

我們會和 Cowen 一起去 Shaul Eyal。

Congrats Phil on the new role. Looking forward to working with you. Actually, 2 product-related questions for Matthew this afternoon. So actually starting with workers. So earlier today, Shopify came out with a press release discussing speeding up their storefront in 2023. REIT's like it is based on cloud workers. I think back in the summer, actually, they also had a blog where they confirmed the shutdown of their internal project Oxygen opting out to cloudflare. So can you talk to us, Matthew, about Shopify relations, maybe just a flavor on workers and an additional win rate.

祝賀 Phil 擔任新角色。期待和你一起工作。實際上，今天下午有 2 個與產品相關的問題要問 Matthew。所以實際上從工人開始。所以今天早些時候，Shopify 發布了一份新聞稿，討論在 2023 年加速他們的店面。房地產投資信託基金就像是基於雲工作者。我記得在夏天，實際上，他們還有一個博客，他們在博客中確認關閉了他們的內部項目 Oxygen，選擇退出 cloudflare。所以你能和我們談談嗎，馬修，關於 Shopify 的關係，也許只是對工人的一種影響和額外的贏率。

Yes. So Shopify has been a terrific cloud player customer for a number of our different products, including workers. And I think what we've talked about in previous calls is that 1 of the most effective ways for us to sort of turbocharge the adoption of workers is to work with other great partners that have an existing developer ecosystem. And so we were proud that Shopify has really standardized around cloud workers. We've worked with them to make sure that we are doing the right things for the overall community that we've open source, for example, the run time of workers. And I think that as you see companies like that adopt workers for their developer platform that, that's a real opportunity for us to, again, turbocharge what workers is and make sure that more and more developers are on top of it.

是的。因此，Shopify 一直是我們許多不同產品（包括 Worker）的出色雲播放器客戶。我認為我們在之前的電話會議中談到的是，我們要加快採用工人的最有效方法之一是與擁有現有開發人員生態系統的其他優秀合作夥伴合作。因此，我們為 Shopify 真正圍繞雲工作者實現了標準化而感到自豪。我們與他們合作以確保我們正在為我們開源的整個社區做正確的事情，例如，工人的運行時間。而且我認為，正如您看到的那樣，公司為他們的開發人員平台採用工人，這對我們來說是一個真正的機會，可以再次增強工人的能力，並確保越來越多的開發人員掌握它。

And what's incredible is just watching how as again we get more reps with really talented and smart engineering teams like the team at Shopify. That's just making the workers' platform better everyone involved. And again, we're really proud to have him as a customer.

令人難以置信的是，我們再次看到我們如何通過真正有才華和聰明的工程團隊（如 Shopify 的團隊）獲得更多代表。這只是讓工人的平台變得更好，每個人都參與其中。再一次，我們真的很自豪能有他成為我們的客戶。

Understood. Understood. And maybe back to the security side of things. Matthew, in your prepared remarks, you talked about that big, big win, big security win displacement. But I'm just curious whether it also involves the e-mail security kind of the Area 1 related product?

明白了。明白了。也許回到事情的安全方面。馬修，在你準備好的發言中，你談到了那個大的、大的勝利、大的安全勝利位移。但我很好奇它是否也涉及到 Area 1 相關產品的電子郵件安全類？

Yes. I don't -- I want to be careful that I might misspeak, but I don't believe that Area 1 was included in that particular deal. So that's still an expansion opportunity. We with that customer. We do see that e-mail security is a terrific entry into getting people to move to our Zero Trust platform. The reason why is that Zero Trust, one of the first challenges is enumerating how many people are within an organization, how many seats effectively does that organization make up.

是的。我不——我想小心我可能會說錯，但我不認為第 1 區包含在該特定交易中。所以這仍然是一個擴張的機會。我們和那個客戶。我們確實看到，電子郵件安全是讓人們轉向我們的零信任平台的絕佳入口。原因是零信任，首要挑戰之一是枚舉組織內有多少人，該組織有效地構成了多少個席位。

And if we can get somebody to use our e-mail security product, that inherently defines that in a very natural way. And so migrating somebody from sort of the -- our application services portfolio to our e-mail security portfolio is one click. It's a simple DNS change. And they don't have to -- they can continue to use any of their existing e-mail vendors, and we effectively just proxy that traffic, and are able to provide additional layers and enhancement of security as well. Once we've done that, it then makes it a very natural step to go from the e-mail security product to the rest of our Zero Trust suite.

如果我們可以讓某人使用我們的電子郵件安全產品，那麼這將以一種非常自然的方式固有地定義它。因此，只需單擊一下，就可以將某人從我們的應用程序服務組合遷移到我們的電子郵件安全組合。這是一個簡單的 DNS 更改。他們不必——他們可以繼續使用他們現有的任何電子郵件供應商，我們實際上只是代理該流量，並且能夠提供額外的層和增強的安全性。一旦我們做到了這一點，那麼從電子郵件安全產品到我們的零信任套件的其餘部分就會成為一個非常自然的步驟。

And so that is a standard play that we run. It's very successful. But in the case of this particular oil and gas company, it wasn't the reason that they adopted us for Zero Trust. But hopefully, we can go the other direction as well.

所以這是我們運行的標準遊戲。這是非常成功的。但就這家特定的石油和天然氣公司而言，這並不是他們採用我們實現零信任的原因。但希望我們也可以朝另一個方向發展。

Next up is Joel Fishbein, Truist Securities.

接下來是 Truist Securities 的 Joel Fishbein。

Congrats to Phil as well. Matthew, for you, I want to take a step back, notwithstanding the current economic situation. I would love to just talk about the barriers to entry for Cloudflare and your top priorities for the next 3 years in terms of growing the business.

也恭喜菲爾。馬修，為了你，我想退後一步，儘管目前的經濟形勢。我只想談談 Cloudflare 的進入壁壘，以及您未來 3 年在發展業務方面的首要任務。

Yes. And Joel, by barriers to entry, do you mean for competitors competing against us? Or what exactly do you mean by that?

是的。喬爾，關於進入壁壘，你是指競爭對手與我們競爭嗎？或者你到底是什麼意思？

Yes exactly, Matthew. I think there's a little bit of in the investment community, there's a little bit of thought process that it's easy to do what you -- what Cloudflare does. And as you and I both know, that's not true. But I think it's important for you to explain that from the perspective of how difficult it is to provide the services that you do?

是的，馬修。我認為投資界有一點點，有一點思考過程，認為做你做的事很容易——Cloudflare 做的事。正如你我都知道的那樣，那不是真的。但我認為，從提供您提供的服務有多困難的角度來解釋這一點對您來說很重要？

Sure. So I think the thing that is at the core of Cloudflare is our network. The reason that our ticker is NET and not Cloudflare is because of the fact that we are fundamentally a network. And that network is -- has taken us over 12 years to build. And it is not something that you can just throw money at and buy your way into it's not something that even some of the large hyperscale public cloud have.

當然。所以我認為 Cloudflare 的核心是我們的網絡。我們的代碼是 NET 而不是 Cloudflare 的原因是因為我們基本上是一個網絡。這個網絡是——我們花了 12 年多的時間才建立起來。它不是你可以花錢購買的東西，甚至一些大型超大規模公共雲也沒有。

And so we hear regularly from companies like Microsoft that they're like, wow, you guys have something very special in the network you've built, and it is very different than anything else that's out there. That somewhat counterintuitive a bit about our network is that as we expand into further corners of universe, whether that's opening an additional data center in St. Louis or going into Djibouti. Any of those things actually help us lower our costs because it drives down the cost of delivering all of our services.

所以我們經常聽到像微軟這樣的公司說，哇，你們建立的網絡有一些非常特別的東西，它與外面的任何東西都非常不同。關於我們的網絡，有點違反直覺的一點是，當我們擴展到宇宙的更遠角落時，無論是在聖路易斯開設一個額外的數據中心還是進入吉布提。這些事情中的任何一個實際上都有助於我們降低成本，因為它降低了提供我們所有服務的成本。

And the other important bit is that unlike some of the competitors that are out there, whether those are our competitors in the application services space that have grown through a series of M&A acquisitions or even in the Zero Trust space, someone like Zscaler actually run multiple independent networks to provide their various services. And that means that give customers that are using those different services, not only is it more inefficient for them to service those customers, but those customers experience very performance setbacks when they're delivering their services. And that's something that a lot of the customers that are switching from Zscaler to us not time and time again. What's different about us is we have relentlessly said that we run 1 single network. And every single server across our entire network is capable of running and performing any of the functions that we may need it for.

另一個重要的一點是，與外面的一些競爭對手不同，無論這些競爭對手是我們在應用服務領域通過一系列併購收購發展起來的競爭對手，還是在零信任領域，像 Zscaler 這樣的公司實際上運行著多個獨立的網絡來提供他們的各種服務。這意味著為使用這些不同服務的客戶提供的服務不僅會降低他們為這些客戶提供服務的效率，而且這些客戶在提供服務時會遇到非常嚴重的性能挫折。這就是很多從 Zscaler 轉向我們的客戶不是一次又一次。我們的不同之處在於我們堅持不懈地說我們運行 1 個單一網絡。我們整個網絡中的每台服務器都能夠運行和執行我們可能需要的任何功能。

And so that means that as we grow our services, it allows us to deliver them incredibly quickly, incredibly efficiently and anywhere in the world, and that is paying off today by allowing us to continue to scale as efficiently as possible. And so I think that it was a unique period of time 1.5 years ago when Cloudflare started that allowed us the conditions and opportunities to build the company.

因此，這意味著隨著我們服務的發展，它使我們能夠以令人難以置信的速度、令人難以置信的效率在世界任何地方交付它們，並且今天通過允許我們繼續盡可能高效地擴展而得到回報。因此，我認為 1.5 年前 Cloudflare 成立的一段獨特時期為我們提供了建立公司的條件和機會。

I think it would be very challenging today for somebody to replicate the network that we have -- and that network continues to allow us to deliver more and more services, whether that's our traditional application services, the ACT-1 products, our Zero Trust services, the ACT-2 products or even the super cloud products that we have with brokers, which are our ACT-3 products, all of those rely on that network and the efficiency that it has.

我認為今天有人要復制我們擁有的網絡將是非常具有挑戰性的——而且該網絡繼續允許我們提供越來越多的服務，無論是我們的傳統應用程序服務、ACT-1 產品，還是我們的零信任服務，ACT-2 產品，甚至是我們與經紀人合作的超級雲產品，這是我們的 ACT-3 產品，所有這些都依賴於該網絡及其所具有的效率。

And I think that's where the fundamental barrier to entry to our products is. The other thing which is important is we just experienced significant network effects, and that comes in a number of different ways. One is just with every piece of data that we see, we're able to make our security products significantly better. So the fact that consumer ISP is rolling us out to all of their customers that use their security bundle. That's just feeding data back into our system, which makes us smarter and smarter across that.

我認為這就是進入我們產品的基本障礙所在。另一件重要的事情是我們剛剛經歷了顯著的網絡效應，並且以多種不同的方式出現。一個是我們看到的每一條數據，我們都能夠使我們的安全產品變得更好。因此，消費者 ISP 正在將我們推廣給所有使用其安全包的客戶。這只是將數據反饋回我們的系統，這讓我們在這方面變得越來越聰明。

But it's more than that. The fact that we are today somewhere in front of 20% to 25% of the web means that for customers that use our Zero Trust products, if they are going to that 20%, 25% of the web that uses us then they never have to leave Cloudflare's network, and we can deliver a much more significant product. So as we are in front of more content and as we are in front of more eyeballs that just makes the experience for both sides of that network better and better, and that catalyzes a network effect, which, again, is very difficult for other competitors to catch up with. So we like our position. We like where we where we are for the next 3 years, and we continue to be committed to our goal of getting to $5 billion of run rate in 5 years from last quarter.

但不僅如此。事實上，我們今天處於 20% 到 25% 的網絡前面，這意味著對於使用我們的零信任產品的客戶來說，如果他們要訪問那 20%、25% 的使用我們的網絡，那麼他們永遠不會離開 Cloudflare 的網絡，我們可以交付更重要的產品。因此，當我們面對更多的內容和更多的眼球時，只會讓網絡雙方的體驗越來越好，並且會催化網絡效應，這對於其他競爭對手來說也是非常困難的趕上。所以我們喜歡我們的立場。我們喜歡我們在未來 3 年所處的位置，我們將繼續致力於實現我們的目標，即從上一季度開始在 5 年內達到 50 億美元的運行率。

We will now hear from Andrew Nowinski, Wells Fargo.

我們現在將聽到 Wells Fargo 的 Andrew Nowinski 的講話。

Congrats on the great quarter and the really strong guidance for the year. I wanted to start with a question on that big Fed deal. I know you mentioned a lot of interesting deals. I want to dig into the $7.2 million 5-year deal with the Fed First, I guess, will that be recognized as revenue ratably over the next 5 years? And did they bake in any sort of expansions that might not yet be included in that $7 million? Because it seems like that's a certainly, a lot of your big competitors are very strong in that space as well. So I was just curious like how it progressed how you want it and what might also be down the road in that deal?

祝賀偉大的季度和今年真正強有力的指導。我想先問一個關於美聯儲的大交易的問題。我知道你提到了很多有趣的交易。我想深入研究與美聯儲達成的 720 萬美元的 5 年期協議，我想，這會在未來 5 年內按比例確認為收入嗎？他們是否進行了任何可能尚未包含在這 700 萬美元中的擴張？因為這似乎是肯定的，所以您的許多大型競爭對手在該領域也非常強大。所以我很好奇它是如何按照你想要的方式進行的，以及在那筆交易中可能還會發生什麼？

Maybe I get started. No expansion baked into the deal. That's the deal we signed, and that's the deal we announced. And there is expansion opportunity. It will add to that opportunity. Revenue will be recognized ratably. It's a little bit more tricky. It's not necessarily linear over the contract period, it's the amount of entities that are signing up and how fast they are on our network. But for modeling purposes, to assume a ratable distribution over the lifetime of the contract is probably a good start.

也許我開始了。交易中沒有擴張。這是我們簽署的協議，也是我們宣布的協議。並且有擴張的機會。它將增加這個機會。收入將按比例確認。這有點棘手。它在合同期內不一定是線性的，它是註冊實體的數量以及它們在我們網絡上的速度。但出於建模目的，假設在合同的整個生命週期內按比例分配可能是一個好的開始。

Okay. And then it looks like your channel into has continued. I think the channel accounted for about 13% of revenue this quarter, which is the highest it's ever been. I guess where are you seeing that traction from? Is that more from the GSIs or the traditional resellers.

好的。然後看起來您的頻道正在繼續。我認為本季度該渠道佔收入的 13% 左右，這是有史以來的最高水平。我想你從哪裡看到這種牽引力？是更多來自 GSI 還是傳統經銷商。

I think that channel remains a big opportunity for us, but we're proud of the progress that we've made, and it's a real priority for Mark as he there. I think that we're seeing both the traditional resellers as well as some of the that are increasingly adopting Cloudflare.

我認為該渠道對我們來說仍然是一個巨大的機會，但我們為我們所取得的進步感到自豪，這對馬克來說是一個真正的優先事項。我認為我們看到傳統經銷商以及一些越來越多地採用 Cloudflare 的經銷商。

And I think the big opportunity here is really with those ACT-2 and then to some extent, those ACT-3 products. And so we're seeing that in ACT-2 products, those are very much products that oftentimes. We are winning in cooperation with a channel partner. And those initial wins help unlock future wins going forward. And then the second thing that we're seeing is that in our ACT-3 products, a lot of times, we're seeing as customers are coming to their partners to say, we're looking to consolidate vendors we're looking to save money on some of our cloud spend that we're seeing more and more that Cloudflare is a solution that is in the toolkit for people who are trying to figure out how they can save money.

而且我認為這裡的大機會真的是那些 ACT-2，然後在某種程度上，那些 ACT-3 產品。所以我們在 ACT-2 產品中看到，這些產品經常出現。我們正在與渠道合作夥伴的合作中獲勝。這些最初的勝利有助於解鎖未來的勝利。然後我們看到的第二件事是，在我們的 ACT-3 產品中，很多時候，我們看到客戶來找他們的合作夥伴說，我們正在尋求整合我們正在尋找的供應商在我們的一些雲支出上節省資金我們越來越多地看到 Cloudflare 是工具包中的一個解決方案，供那些試圖弄清楚如何節省資金的人們使用。

So moving from an S-3 to an R2 is a substantial savings. And we're seeing that even with some nontraditional partners. So someone like a Palantir, we announced a partnership with they were driving a lot of their customers to their cloud solution. They saw how much money was wasted in some of the public clouds and have built a tool to help people understand what their cloud spend was and they came to the conclusion that oftentimes, if customers could move more of their workloads to Cloudflare workers that was a real money saving for them. And again, that's been -- it's early days, but we think that, that's definitely saving money, consolidating vendors.

因此，從 S-3 轉向 R2 是一筆可觀的節省。我們甚至在與一些非傳統合作夥伴的合作中也看到了這一點。所以像 Palantir 這樣的公司，我們宣布與他們建立合作夥伴關係，將他們的許多客戶推向他們的雲解決方案。他們看到在一些公共雲中浪費了多少資金，並構建了一個工具來幫助人們了解他們的雲支出是多少，他們得出的結論是，如果客戶可以將更多的工作負載轉移到 Cloudflare 員工身上，那通常是一個真正為他們省錢。再一次，那是——現在還處於早期階段，但我們認為，這肯定是在節省資金，整合供應商。

Those are all going to be trends throughout 2023, and we're very well positioned to be able to help partners as they work with their customers to take advantage of those trends.

這些都將成為整個 2023 年的趨勢，我們完全有能力幫助合作夥伴在與客戶合作時利用這些趨勢。

Okay. Congrats, Phil.

好的。恭喜，菲爾。

Alex Henderson, Needham.

亞歷克斯亨德森，李約瑟。

So thanks for the great print and welcome to on-board, Phil. I was hoping you could talk a little bit about that is the word at the end of the year here about how many coders are currently working on your platform and give us an update on that. I think that as the major positive strategic advantages that you have going to an earlier question.

因此，感謝您的精彩印刷，歡迎加入，Phil。我希望你能談談這就是今年年底有多少編碼員目前在你的平台上工作的詞，並給我們一個更新。我認為作為主要的積極戰略優勢，你必須回答一個較早的問題。

Yes, I think that we announced at the end of last year that we were -- that we crossed through 1 million developers that were building on cloud workers. I don't know what the latest numbers are on that, but the growth rates have continued to drive more and more developers to that. And again, partnerships with companies like a Shopify to have their own developer ecosystem just further accelerate the number of people who are using Cloudflare workers. And we're doing more and more.

是的，我認為我們在去年年底宣布我們 - 我們跨越了 100 萬在雲工作者上構建的開發人員。我不知道最新的數字是什麼，但增長率繼續推動越來越多的開發人員這樣做。同樣，與 Shopify 等公司建立合作夥伴關係以擁有自己的開發者生態系統只會進一步增加使用 Cloudflare worker 的人數。我們正在做越來越多的事情。

I think one of the exciting things that we announced yesterday was a very small team on our side. I wanted to see if they could get master on, which is sort of the open source Federated, Twitter client to run on Cloudflare. And that's a fairly sophisticated application, and they built not only a way for them to deploy that for any developer to be able to deploy that on cloud workers. But then it scales just beautifully where if you wanted to build kind of the next generation in Twitter that just scale and scale and scale, they have proven that, that can be done on top of Cloudflare workers. And so I think we are starting to see more and more sophisticated applications like that get built on workers, and that's an exciting development for us.

我認為我們昨天宣布的令人興奮的事情之一是我們這邊的一個非常小的團隊。我想看看他們是否可以獲得 master on，這是一種在 Cloudflare 上運行的開源 Federated Twitter 客戶端。這是一個相當複雜的應用程序，他們不僅為他們構建了一種部署方式，還讓任何開發人員都能夠將其部署在雲工作者上。但是，如果你想在 Twitter 中構建下一代的東西，那麼它可以很好地擴展，他們已經證明，這可以在 Cloudflare 工作人員的基礎上完成。所以我認為我們開始看到越來越多的複雜應用程序建立在工人身上，這對我們來說是一個令人興奮的發展。

The second question I wanted to for us was your strategy around pricing. I know back in November, you raised prices for the first time and it was at a decade, which is amazing in and of itself. But can you talk about the magnitude of the pricing lever as we look at the full year for '23 and whether that is broader than just the low end entry fees?

我想問我們的第二個問題是你們的定價策略。我知道早在 11 月，你就第一次提價，那是在十年前，這本身就很了不起。但是，當我們回顧 23 年的全年時，您能否談談定價槓桿的規模，以及這是否比低端入場費更廣泛？

Yes. I think that we were very hesitant and a little bit nervous about raising pricing. Cloudflare is fundamentally infrastructure for our clients, and we want to be we want to be reliable and predictable for them. And so we thought about this a lot. The primary goal of the price increase, which was really only for our pay-as-you-go business, which is well less than 20% of Cloudflare's revenue.

是的。我認為我們對提高定價非常猶豫和有點緊張。 Cloudflare 從根本上說是我們客戶的基礎設施，我們希望成為可靠且可預測的客戶。所以我們想了很多。提價的主要目標實際上只針對我們的即用即付業務，這遠低於 Cloudflare 收入的 20%。

But the primary goal was to shift that business from what was mostly a monthly payment business to one that was paid upfront and annually. So if you pay us upfront annually, you can keep the same price that we've had historically. And we were -- we sort of -- we obviously did all the work talking to users figuring out what the tolerance was, but you have to sort of hold your breath and see what happens.

但主要目標是將該業務從主要是按月支付的業務轉變為按年預付的業務。因此，如果您每年預付給我們，您可以保持我們歷史上的相同價格。我們 - 我們 - 我們顯然做了所有與用戶交談的工作，以確定容忍度是多少，但你必須屏住呼吸，看看會發生什麼。

And we've seen a handful of examples where I think with Slack, I think with Shopify that had price increases that have gone over well. And we've seen a handful of price increases from companies where there's really been pushed back that they've received. And I'm really happy that our customers, if anything, I think we were very pleasantly surprised how many of our customers said, over the course of the last 12 years, Cloudflare has added so much additional value that they want to pay us more.

我們已經看到了一些例子，我認為 Slack 和 Shopify 的價格上漲都很好。我們已經看到一些公司提價，而這些提價確實被公司推遲了。我真的很高興我們的客戶，如果有的話，我認為我們非常驚喜有多少客戶說，在過去 12 年的過程中，Cloudflare 增加瞭如此多的附加價值，以至於他們想付給我們更多的錢.

And so we've seen a substantial number of convert already to the annual billing, which is great because it's helped us pull forward some cash, which is important. And then the second is that those people who -- we had price increases for and it was about a 25% price increase. That, that actually -- so it went from $20 to $25. So we're not 25%, that's misspeaking. But that was a that, that was well received, and we have not seen elevated churn as a result of that. It's been about -- it went about as smoothly as we could possibly have hoped.

因此，我們已經看到大量轉換為年度計費，這很好，因為它幫助我們提取了一些現金，這很重要。然後第二個是那些人——我們的價格上漲了大約 25%。那，實際上——所以它從 20 美元漲到了 25 美元。所以我們不是 25%，這是誤會。但那是一個很好的接受，我們沒有看到因此而增加的流失率。它一直是 - 它像我們希望的那樣順利進行。

And that final question today will come from Trevor Walsh, JMP Securities.

今天的最後一個問題將來自 JMP 證券公司的 Trevor Walsh。

Matthew, you had thanks for the color around the SLED business and congrats on hitting the FedRAMP certification. You've indicated that you 3% was, I think, low at only 3%. So just curious around that public sector business, kind of what you think the kind of the opportunities and maybe what held you back on that up to now? And if your sales and marketing, your new leaders there have kind of any plans to kind of help expand that part of the business.

Matthew，感謝您為 SLED 業務增添色彩，並祝賀您獲得 FedRAMP 認證。你已經表示你的 3% 是，我認為，低只有 3%。所以只是對公共部門的業務感到好奇，你認為什麼樣的機會，也許是什麼阻礙了你到現在為止？如果你的銷售和營銷部門，你的新領導者有任何計劃來幫助擴展這部分業務。

Yes. I think we have had some business around.

是的。我認為我們有一些生意。

We just lost Matthew. I step in until he gets his line back. The FedRAMP business, as you know, is a very local business. So getting all the certifications in place across the globe was one of the big targets. And we have made great progress both in Europe and now finally also here in the U.S. And as the certifications have been coming in and the products and the data centers get certified, we have been building up the teams in parallel, not only here in the U.S., but also outside of the U.S., especially in Europe, and we expect business to grow with it. And I would shy away from giving a concrete target or number for this year.

我們剛剛失去了馬修。我介入，直到他收回他的電話。如您所知，FedRAMP 業務是非常本地化的業務。因此，在全球範圍內獲得所有認證是一項重大目標。我們在歐洲取得了很大進展，現在終於在美國也取得了進展。隨著認證的到來以及產品和數據中心的認證，我們一直在同時建立團隊，而不僅僅是在這裡美國，但也包括美國以外的地區，尤其是歐洲，我們預計業務會隨之增長。我會迴避給出今年的具體目標或數字。

But as you heard from Matthew, we think we have an overwhelming opportunity in front of us and now with the certifications in place. And the team that gets hired, we are quite excited about this space. I wanted to -- I think Alex was cut off on his last question. I think you wanted to find out how much of the price increase was baked in, in our guidance. I think it's fair to assume, and you can draw that conclusion from Matthew's comments for this year, it's probably more a tailwind to cash flow than it is a tailwind to revenue. Most of the customers have opted in to convert to annual billing and lock in the historic crisis for 1 more year. So less of a tailwind for revenue, but more tailwind of cash flow, free cash flow for this year, at least.

但正如您從馬修那裡聽到的那樣，我們認為我們面前有一個壓倒性的機會，現在已經有了認證。和被雇用的團隊，我們對這個空間感到非常興奮。我想——我認為亞歷克斯在他的最後一個問題上被打斷了。我想你想知道在我們的指導中有多少價格上漲被納入其中。我認為可以公平地假設，你可以從馬修今年的評論中得出結論，這可能更像是現金流的順風，而不是收入的順風。大多數客戶已選擇轉換為年度計費並將歷史性危機再鎖定 1 年。因此，收入的順風較少，但現金流的順風更多，至少今年的自由現金流是這樣。

And apologies, my would be my cell phone or a provider doesn't use Cloudflare it turns out. So my call drop that's the first. But Tom, I'm sure Thomas answers were exactly right.

抱歉，我會是我的手機，或者事實證明提供商不使用 Cloudflare。所以我的電話是第一個。但是湯姆，我確信託馬斯的回答是完全正確的。

And that does conclude our question-and-answer session. Did you have any closing remarks?

這確實結束了我們的問答環節。你有什麼結束語嗎？

Sorry about the technical snap foods. I really just wanted to end by thanking all of our customers, partners and especially the Cloudflare team, we have proven that we can do more even in very difficult economic times. I'm proud of all the work that we're doing to keep the Internet safe, secure, reliable for all of our customers around the world. So thank you for helping us deliver the quarter, and it's going to be a great 2023. I appreciate everyone being on the team.

對不起，技術快餐。最後，我真的只想感謝我們所有的客戶、合作夥伴，尤其是 Cloudflare 團隊，我們已經證明，即使在非常困難的經濟時期，我們也可以做得更多。我為我們為確保全球所有客戶的互聯網安全、可靠和可靠所做的所有工作感到自豪。因此，感謝您幫助我們交付本季度，這將是一個偉大的 2023 年。我感謝團隊中的每個人。

And everyone, that does conclude today's conference. We would like to thank you all for your participation today. You may now disconnect.

大家好，今天的會議到此結束。感謝大家今天的參與。您現在可以斷開連接。