(NET) 2023 Q3 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 Cloudflare Third Quarter 2023 Earnings Conference Call. (Operator Instructions).

午安.我叫克里斯塔，今天我將擔任你們的會議接線生。現在，我歡迎大家參加 Cloudflare 2023 年第三季財報電話會議。 （操作員說明）。

I would now like to turn the conference over to Mr. Phil Winslow, Vice President of Strategic Finance, Treasury and Investor Relations. You may begin, sir.

我現在將會議交給策略財務、財務和投資者關係副總裁 Phil Winslow 先生主持。您可以開始了，先生。

Thank you for joining us today, to discuss Cloudflare's financial results for the third quarter of 2023.

感謝您今天加入我們，討論 Cloudflare 2023 年第三季的財務表現。

With me on the call, we have Matthew Prince, Co-Founder and CEO; Michelle Zatlyn, Co-Founder, President and COO; and Thomas Seifert, CFO.

和我一起參加電話會議的還有共同創辦人兼執行長馬修‧普林斯 (Matthew Prince)；米歇爾‧札特林 (Michelle Zatlyn)，共同創辦人、總裁兼營運長；和首席財務官托馬斯·塞弗特。

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.

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資訊可以在我們的投資者關係網站上找到。

As a reminder, we will 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, and our expectations regarding future macroeconomic conditions.

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、營運和未來的財務表現、我們預期的產品發布以及這些產品的時機和市場潛力，以及我們預期的未來財務和經營業績，以及我們對未來宏觀經濟狀況的預期。

These statements and other comments are not guarantees of future performance, and are subject to risks and uncertainty, much of which is 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. We undertake no obligation to update these statements after this call.

這些陳述和其他評論並不是對未來績效的保證，並且存在風險和不確定性，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有很大差異。這些前瞻性陳述從今天起適用，您不應依賴它們來代表我們未來的觀點。我們不承擔在本次電話會議後更新這些聲明的義務。

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. 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.

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 SEC 提交的文件以及今天的收益新聞稿。除非另有說明，我們今天討論的所有數字（除收入外）都將基於調整後的非公認會計原則（non-GAAP）基礎上。您可以在我們的投資者關係網站上找到收益報告中包含的 GAAP 與非 GAAP 財務指標的調整表。

For historical periods, a GAAP to non-GAAP reconciliation can be found in the supplemental financial information referenced a few months ago. We would also like to inform you that we'll be participating in the RBC Capital Markets Global TIMT Conference on November 14, and the Wells Fargo TMT Summit on November 28.

對於歷史時期，可以在幾個月前引用的補充財務資訊中找到 GAAP 與非 GAAP 調整表。我們也想通知您，我們將參加 11 月 14 日舉行的加拿大皇家銀行資本市場全球 TIMT 會議，以及 11 月 28 日舉行的富國銀行 TMT 高峰會。

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

現在我想把電話轉給馬修。

Thank you, Phil. We had another strong quarter in spite of an increasingly uncertain world.

謝謝你，菲爾。儘管世界變得越來越不確定，但我們還是迎來了另一個強勁的季度。

In Q3, we achieved revenue of $335.6 million, up 32% year-over-year. We added 206 new large customers, those that pay us more than $100,000 per year and now have 2,558 large customers, up 34% year-over-year.

第三季度，我們營收 3.356 億美元，年增 32%。我們新增了 206 個大客戶，每年向我們支付超過 10 萬美元的大客戶，現在大客戶數為 2,558 個，較去年同期成長 34%。

Looking at even larger customers, we added a record number of net new customers year-over-year, spending more than both $500,000 and $1 million per year with Cloudflare. Our dollar-based net retention ticked up 1% to 116%. We see this as a lagging indicator and expect that it will take some time for the go-to-market improvements we're seeing across our team to be fully reflected.

縱觀更大的客戶，我們同比淨新增客戶數量創歷史新高，每年在 Cloudflare 上的支出分別超過 50 萬美元和 100 萬美元。我們以美元計算的淨留存率上升了 1%，達到 116%。我們認為這是一個滯後指標，並預期我們團隊看到的上市改善需要一些時間才能充分體現。

During the quarter, we continued to refine these go-to-market strategies. Our pipeline close rates held steady, our sales force productivity remain constant and linearity was similar to Q2. I think that we have been able to hold things steady while making significant organizational changes and improvements across our sales, and marketing organization is very encouraging.

本季度，我們繼續完善這些上市策略。我們的管道關閉率保持穩定，我們的銷售人員生產力保持不變，線性度與第二季相似。我認為我們能夠保持穩定，同時在銷售和行銷組織方面進行重大的組織變革和改進，這非常令人鼓舞。

Beyond that, we're beginning to see positive early signs from the sales team members we've brought on over the 6 months to replace underperformers. During the quarter, the pipeline generated by this new cohort was 1.6x higher than those brought on at the same time a year earlier. These new account executives achieved more than 130% of their activity goals for the quarter. That's great news. And we're thrilled to have them on board. And while they're still ramping, I'm encouraged by the performance, and that we've been able to revamp as much of our sales team as we have without significant disruption.

除此之外，我們開始看到我們在 6 個月內招募來替換錶現不佳的銷售團隊成員的正面早期跡象。本季，這群新族群產生的管道比一年前同期高出 1.6 倍。這些新客戶主管完成了本季活動目標的 130% 以上。這真是個好消息。我們很高興他們加入。雖然它們仍在成長，但我對業績感到鼓舞，而且我們已經能夠在沒有重大干擾的情況下對銷售團隊進行盡可能多的改造。

Our gross margin was 78.7%, still well above our target range of 75% to 77%, and up from 77.7% last quarter. We delivered an operating profit of $42.5 million, our fifth consecutive record quarter for the company. This represents an operating margin of 12.7%. Operating profit increased nearly 3x year-over-year, underscoring our commitment to operating efficiency and productivity.

我們的毛利率為 78.7%，仍遠高於我們 75% 至 77% 的目標範圍，高於上季的 77.7%。我們實現了 4,250 萬美元的營業利潤，這是公司連續第五個季度創紀錄。這意味著營業利益率為 12.7%。營業利潤年增近 3 倍，凸顯了我們對營運效率和生產力的承諾。

We continue to generate positive free cash flow. In Q3, we generated $34.9 million during the quarter, representing a free cash flow margin of 10.4%. This is a business that can generate significant cash, and in 2023, we expect we will generate more than $100 million in free cash flow, well ahead of our original goal when we started the year, and the direct result of improved execution across our entire business.

我們繼續產生正的自由現金流。第三季度，我們創造了 3,490 萬美元的利潤，自由現金流利潤率為 10.4%。這是一項可以產生大量現金的業務，我們預計到 2023 年，我們將產生超過 1 億美元的自由現金流，遠遠超出我們年初時的最初目標，這也是我們整個部門執行力提高的直接結果商業。

In Q3, we celebrated our 13th anniversary of Cloudflare's launch, a time we call Birthday Week, we officially entered our teenage years. And like many kids, it took us a while to fully understand and articulate the category we belong to.

第三季度，我們慶祝了 Cloudflare 推出 13 週年，我們稱之為生日週，我們正式進入了青少年時期。和許多孩子一樣，我們花了一段時間才完全理解並闡明我們所屬的類別。

The day before our 13th birthday, we announced to the world, that we realized what we are, a connectivity cloud. Connectivity means we measure ourselves by connecting people and things together. Cloud means the batteries are included. It scales with you. It's programmable, has consistent security built in, it's intelligent and learns from your usage and others to optimize for outcomes better than you could on your own.

在我們 13 歲生日的前一天，我們向世界宣布，我們意識到我們是什麼：連接雲端。連結性意味著我們透過將人和物連結在一起來衡量自己。雲意味著包含電池。它與您一起擴展。它是可編程的，內建一致的安全性，它很智能，可以從您和其他人的使用情況中學習，從而比您自己更好地優化結果。

Our connectivity cloud is worth contrasting against some of the other first-generation clouds. The hyperscale public clouds are, in many ways, the opposite. They optimize for hoarding your data, locking it in, making it difficult to move. They are captivity cloud. While they may be great for some things, their full potential is only truly unlocked for customers when combined with the connectivity cloud that lets you mix and match the best of each of their features. That's what we hear from customers, that they are multicloud, whether they want to be or not. And that's what they really need, is a connectivity cloud, to hook all their systems together in a fast, secure, reliable way.

我們的連接雲值得與其他一些第一代雲端進行對比。超大規模公有雲在很多方面都相反。它們針對囤積、鎖定資料進行最佳化，使其難以移動。它們是圈養雲。雖然它們在某些方面可能非常有用，但只有與連接雲結合使用才能真正為客戶釋放它們的全部潛力，讓您可以混合和匹配其每個功能的最佳功能。這就是我們從客戶那裡聽到的，他們是多雲的，無論他們願意與否。這就是他們真正需要的，是連接雲，以快速、安全、可靠的方式將所有系統連接在一起。

The messaging of the connectivity cloud is resonating with customers and helping them understand the full extent of what Cloudflare is able to deliver for them. We are not any one of our individual features or even as a sum of them. We are a cloud that helps you get the most out of connectivity, and customers love that and are leaning into it.

連接雲端的訊息傳遞引起了客戶的共鳴，並幫助他們全面了解 Cloudflare 能夠為他們提供的服務。我們不是我們個人特徵中的任何一個，甚至不是它們的總和。我們是一個雲，可以幫助您充分利用連接性，客戶喜歡這一點並傾向於使用它。

Speaking of customers, we've had some great customer wins in the quarter I'd like to highlight. A U.S. government cabinet level agency within the executive branch, signed a 1-year $2 million contract. Cloudflare's replacing 3 point solution vendors, including a 20-year old incumbent solution. We're providing a unified application security for 600 U.S. government applications. They were drawn to Cloudflare's modern architecture, rate of innovation, robust network and ability to reduce complexity by consolidating multiple point solutions into a single pane of glass.

說到客戶，我想強調一下，我們在本季贏得了一些很棒的客戶。美國政府行政部門內的內閣級機構簽署了一份為期 1 年、價值 200 萬美元的合約。 Cloudflare 正在取代 3 點解決方案供應商，包括已有 20 年歷史的現有解決方案。我們正在為 600 個美國政府應用程式提供統一的應用程式安全性。他們被 Cloudflare 的現代架構、創新速度、強大的網路以及透過將多點解決方案整合到單一管理平台中來降低複雜性的能力所吸引。

Another U.S. government agency signed a 1-year $510,000 contract for Cloudflare's Zero Trust solutions, including Access, Gateway, Browser Isolation and Data Loss Prevention. We were selected over first-generation Zero Trust competitors due to our ability to consolidate numerous products across both application security and Zero Trust onto a single platform. Our federal business has grown significantly over the last year, and we believe these deals are just at the tip of the iceberg with both of these customers, which we expect can expand significantly.

另一家美國政府機構簽署了一份為期 1 年、價值 51 萬美元的 Cloudflare 零信任解決方案合同，包括存取、網關、瀏覽器隔離和資料遺失防護。我們之所以在第一代零信任競爭對手中脫穎而出，是因為我們能夠將應用程式安全和零信任領域的眾多產品整合到一個平台上。我們的聯邦業務在去年顯著成長，我們相信這些交易只是與這兩位客戶的冰山一角，我們預計這些交易將會顯著擴大。

A leading healthcare company signed a 3-year $1 million contract for Cloudflare's Zero Trust solutions, including Access, Gateway, Browser Isolation and Area 1 Email Security. They are a legacy vendor looking to modernize their security posture as they migrate on-prem applications to the cloud. They experienced a sophisticated e-mail phishing attack mid-process, and with Area 1, we were able to immediately protect them. They chose us over first-generation Zero Trust solutions because of the comprehensiveness of our solution, including e-mail security. The VP of Technology said succinctly, we should have partnered with Cloudflare earlier.

一家領先的醫療保健公司簽署了一份為期 3 年、價值 100 萬美元的 Cloudflare 零信任解決方案合同，其中包括訪問、網關、瀏覽器隔離和 Area 1 電子郵件安全。他們是一家傳統供應商，希望在將本地應用程式遷移到雲端時實現安全態勢的現代化。他們在過程中經歷了複雜的電子郵件網路釣魚攻擊，借助 Area 1，我們能夠立即保護他們。他們選擇我們而不是第一代零信任解決方案，因為我們的解決方案具有全面性，包括電子郵件安全性。科技副總裁簡潔地說，我們應該早點與 Cloudflare 合作。

A major European consulting company signed a 3-year $1.6 million contract for Access and Gateway, along with Magic WAN and our data localization suite. They selected Cloudflare over first-generation Zero Trust competitors because of the breadth of our platform. The theme across these examples is customers are looking for a Zero Trust solution, increasingly wanting to protect their entire network. Cloudflare is the only vendor that can deliver a comprehensive network-wide solution from a single vendor.

一家歐洲大型顧問公司簽署了一份為期 3 年、價值 160 萬美元的接入和網關合同，以及 Magic WAN 和我們的數據本地化套件。由於我們平台的廣度，他們選擇了 Cloudflare 而不是第一代零信任競爭對手。這些範例的主題是客戶正在尋找零信任解決方案，越來越希望保護他們的整個網路。 Cloudflare 是唯一能夠透過單一供應商提供全面的網路範圍解決方案的供應商。

Switching gears a bit, a Fortune 500 semiconductor company expanded their relationship to Cloudflare, signing a 3-year $1.4 million contract. The customer was looking to modernize their network security posture. They adopted our Magic Transit product. They were able to consolidate multiple point solutions on to Cloudflare's unified platform.

一家財富 500 強半導體公司稍微改變了態度，擴大了與 Cloudflare 的關係，簽署了一份為期 3 年、價值 140 萬美元的合約。客戶希望實現網路安全態勢的現代化。他們採用了我們的 Magic Transit 產品。他們能夠將多個單點解決方案整合到 Cloudflare 的統一平台上。

An African public utility company expanded their relationship with Cloudflare, signing a 4-year $3 million contract. This company first approached Cloudflare last year, facing multiple under attack situations. We onboarded the customer with Application Security and Magic Transit, stopping the attacks they were seeing. The customer was so impressed with Cloudflare's products and performance that they quadrupled their utilization and added additional products, including Magic Firewall. The fact that Cloudflare's network spans the globe gives us the ability to service clients everywhere.

一家非洲公用事業公司擴大了與 Cloudflare 的關係，簽署了一份為期 4 年、價值 300 萬美元的合約。該公司去年首次與 Cloudflare 接觸，面臨多次遭受攻擊的情況。我們為客戶提供了應用程式安全性和 Magic Transit，阻止了他們所看到的攻擊。客戶對 Cloudflare 的產品和效能印象深刻，因此他們將利用率提高了四倍，並添加了其他產品，包括 Magic Firewall。 Cloudflare 的網路遍佈全球，這使我們能夠為世界各地的客戶提供服務。

Another international technology company signed a 2-year $1.8 million contract for Magic Transit and Advanced Application Security. This customer approached us in the midst of a large-scale DDoS attack. Their incumbent solutions were provided by a mix of point solutions and bundled hyperscale cloud mitigation services, neither was sufficient to stay ahead of the attack.

另一家國際科技公司則簽署了一份為期 2 年、價值 180 萬美元的 Magic Transit 和高級應用安全合約。該客戶在大規模 DDoS 攻擊期間聯絡我們。他們的現有解決方案是由單點解決方案和捆綁的超大規模雲端緩解服務組合提供的，兩者都不足以領先於攻擊。

In Q3, we saw a significant increase in massive DDoS attacks. To give you a sense, these new attacks are generating nearly as much traffic as the entire Internet generates globally, but pointing it to a single victim. There are very few networks that can stand up to these attacks. I'm proud of the fact that Cloudflare is architected uniquely for this moment. And as the world becomes more complicated, and these attacks become more common, I think more and more of the Internet will turn to us for protection.

第三季度，我們看到大規模 DDoS 攻擊顯著增加。讓您感覺一下，這些新攻擊產生的流量幾乎與整個網路在全球產生的流量一樣多，但將其指向單一受害者。很少有網路能夠抵禦這些攻擊。我為 Cloudflare 專為此時此刻而設計的這一事實感到自豪。隨著世界變得更加複雜，這些攻擊變得更加普遍，我認為越來越多的網路將轉向我們尋求保護。

A leading ad tech company expanded their relationship with Cloudflare, signing a 1-year $720,000 contract. This customer came to us with a technical workers use case. They needed a platform that could help them deliver through traffic spikes, up to 3 million requests per second. Their existing solutions on traditional hyperscale public clouds were expensive to maintain and would encounter errors with even relatively low traffic spikes. Cloudflare Workers was able to support their needs without bringing a sweat. With this win, we expect they will move more of their applications to our much easier to scale platform.

一家領先的廣告技術公司擴大了與 Cloudflare 的關係，簽署了一份為期 1 年、價值 72 萬美元的合約。這位客戶帶著技術工人用例來找我們。他們需要一個能夠幫助他們應對每秒高達 300 萬個請求的流量高峰的平台。他們在傳統超大規模公有雲上的現有解決方案維護成本高昂，即使流量高峰相對較低，也會遇到錯誤。 Cloudflare Workers 能夠輕鬆滿足他們的需求。透過這次勝利，我們預計他們將把更多的應用程式轉移到我們更容易擴展的平台上。

A Fortune 500 technology company expanded their relationship with Cloudflare, signing a 1-year $2.9 million contract. This customer approached us to use our connectivity cloud to help them collect AI and machine learning data from their customers, while maintaining the highest level of privacy. They view Cloudflare as a leader in privacy, and we work closely with them to develop the solution. This deal makes clear the importance of privacy and the likely regulatory scrutiny of AI tasks and highlights how Cloudflare's network, which extends into the vast majority of countries on earth, can help customers take advantage of AI while complying with an increasingly complex regulatory environment. We continue to accelerate our efforts in AI. We believe Cloudflare is the most common cloud provider used by the leading AI companies.

一家財富 500 強科技公司擴大了與 Cloudflare 的合作關係，簽署了一份為期 1 年、價值 290 萬美元的合約。該客戶聯繫我們，希望使用我們的連接雲來幫助他們從客戶那裡收集人工智慧和機器學習數據，同時保持最高等級的隱私。他們將 Cloudflare 視為隱私領域的領導者，我們與他們密切合作開發解決方案。這筆交易明確了隱私的重要性以及可能對人工智慧任務進行的監管審查，並強調了 Cloudflare 的網路（覆蓋地球上絕大多數國家）如何幫助客戶利用人工智慧，同時遵守日益複雜的監管環境。我們持續加快在人工智慧方面的努力。我們相信 Cloudflare 是領先的人工智慧公司最常用的雲端供應商。

During our birthday celebrations in Q3, we made several announcements with companies like NVIDIA, Microsoft, Meta, Hugging Face and Databricks. We also announced Workers AI to put powerful AI inference within milliseconds of every Internet user. We believe inference is the biggest opportunity in AI and inference tasks will largely be run on end devices and connectivity clouds like Cloudflare.

在第三季的生日慶祝活動中，我們與 NVIDIA、Microsoft、Meta、Hugging Face 和 Databricks 等公司發布了多項公告。我們也宣布推出 Workers AI，讓每個網路使用者在幾毫秒內實現強大的人工智慧推理。我們相信推理是人工智慧領域最大的機會，推理任務將主要在終端設備和 Cloudflare 等連接雲上運行。

Right now, there are members of the Cloudflare team traveling the world with suitcases full of GPUs, installing them throughout our network. We have inference-optimized GPUs running in 75 cities worldwide as of the end of October, we are well on our way of hitting a goal of 100 by the end of 2023.

現在，Cloudflare 團隊的成員帶著裝滿 GPU 的手提箱環遊世界，將它們安裝在我們的網路中。截至 10 月底，我們已經在全球 75 個城市運行了推理優化 GPU，我們正在努力實現 2023 年底 100 個的目標。

By the end of 2024, we expect to have inference-optimized GPUs running in nearly every location where Cloudflare operates worldwide, making us easily the most widely distributed cloud-AI inference platform. We've been planning for this for the last 6 years, expecting that at some point, we hit the crossover, where deploying inference-optimized GPUs made sense.

到 2024 年底，我們預計將在 Cloudflare 全球營運的幾乎每個地點運行推理優化的 GPU，讓我們輕鬆成為分佈最廣泛的雲端 AI 推理平台。在過去 6 年裡，我們一直在為此進行規劃，預計在某個時候，我們會遇到交叉點，此時部署推理優化 GPU 是有意義的。

To that end, starting 6 years ago, we intentionally left one or more PCI slots in every server we built, empty. When the demand and the technology made sense, we started deploying. That means we can use our existing server infrastructure and just add GPU cards, allowing us to add this capability while still staying within our forecast CapEx envelope. And customers are excited. In the 5 weeks since our AI announcement, thousands of developers have leveraged our new AI capabilities to build full stack AI applications on Cloudflare's network, processing more than 18 million requests through the new features we launched just over a month ago. The demand has exceeded our expectations and continued to accelerate, increasing 5x since mid-October.

為此，從 6 年前開始，我們有意在我們建置的每台伺服器中留下一個或多個 PCI 插槽。當需求和技術有意義時，我們開始部署。這意味著我們可以使用現有的伺服器基礎設施，只需添加 GPU 卡即可添加此功能，同時仍保持在我們預測的資本支出範圍內。顧客們都很興奮。自從我們宣布 AI 以來的 5 週內，數千名開發人員利用我們的新 AI 功能在 Cloudflare 網路上建立全端 AI 應用程序，透過我們一個多月前推出的新功能處理了超過 1800 萬個請求。需求超出了我們的預期，並持續加速，自 10 月中旬以來增長了 5 倍。

We have a pipeline of customers interested in putting hundreds of billions of inference tasks on our infrastructure each month. It's early days. but the interest we're seeing from customers, large and small, over what they can build with powerful inference capabilities now embedded in one of the world's largest networks is inspiring. They like how easy it is to use Workers AI. They like how it's powerful, but close to their users around the world. They like the more efficient and fair pricing model, our serverless implementation delevers. And they like the flexibility of bringing their own models or fine-tuning existing models using the tools that are included as part of Workers AI.

我們有一群客戶有興趣每月在我們的基礎設施上放置數千億個推理任務。現在還早。但我們看到大大小小的客戶對他們可以利用現在嵌入世界上最大的網絡之一的強大推理能力來構建什麼感興趣，這是令人鼓舞的。他們喜歡使用 Workers AI 的便利性。他們喜歡它的強大功能，但又靠近世界各地的用戶。他們喜歡更有效率、更公平的定價模型，即我們的無伺服器實作 delevels。他們喜歡引入自己的模型或使用 Workers AI 中包含的工具來微調現有模型的靈活性。

If we're right, that inference is the big AI opportunity, and that inference tasks that are too big and too complex to run on end devices, will need to run as close to the user as possible, then we've got a head start on building the preferred location for inference for the most interesting AI applications of the future.

如果我們是對的，推理是人工智慧的巨大機遇，而推理任務太大、太複雜而無法在終端設備上運行，需要盡可能靠近用戶運行，那麼我們就有了想法開始為未來最有趣的人工智能應用建構首選推理位置。

Finally, before I turn it over to Thomas, I wanted to acknowledge that we continue to live in very challenging times. The war in Ukraine continues unabated. Now we have a new war in the Middle East after the attack by Hamas on Israel. We have colleagues in the region who have been impacted directly and indirectly. Our thoughts are with them.

最後，在我把它交給托馬斯之前，我想承認我們仍然生活在一個充滿挑戰的時代。烏克蘭戰事仍在繼續，有增無減。在哈馬斯襲擊以色列之後，現在中東爆發了一場新的戰爭。我們在該地區的同事也受到了直接和間接的影響。我們的想法與他們同在。

And while we see the devastating images of the kinetic war, the online war is also raging. Cloudflare is committed to providing our services to humanitarian and civil society organizations at no cost, to ensure they can continue doing their important work for all those impacted by the increasingly hostile world we find ourselves in. In our business, we need to stay on top of cybersecurity issues globally and modern warfare continues to include the cyber battlefield.

當我們看到動態戰爭的毀滅性畫面時，網路戰爭也在激烈進行中。 Cloudflare 致力於免費向人道主義和民間社會組織提供服務，以確保他們能夠繼續為所有受到我們所處的日益充滿敵意的世界影響的人們開展重要工作。在我們的業務中，我們需要保持領先地位。網路安全問題日益增多，現代戰爭仍然包括網路戰場。

As I look back on the quarter, I'd like to thank our entire team at Cloudflare for all your hard work, innovation, dedication to supporting our customers and the greater Internet. Thank you for continuing to help build a better Internet for us all.

回顧本季度，我要感謝 Cloudflare 的整個團隊，感謝你們為支持我們的客戶和更大的互聯網所做的辛勤工作、創新和奉獻。感謝您繼續幫助我們所有人建立更好的互聯網。

And with that, I'll hand it off to Thomas. Thomas, take it away.

這樣，我就把它交給湯瑪斯了。湯瑪斯，把它拿走。

Thank you, Matthew, and thank you to everyone for joining us.

謝謝你，馬修，也謝謝大家加入我們。

During the third quarter, as we continue to refine our go-to-market strategies and operations, our pipeline growth rates have held steady, our productivity remained consistent and linearity was similar to last quarter. We are pleased to see significant growth with general partners, momentum with large customers and strength in the public sector.

在第三季度，隨著我們繼續完善我們的上市策略和運營，我們的管道成長率保持穩定，我們的生產力保持一致，線性度與上季度相似。我們很高興看到普通合夥人的顯著增長、大客戶的勢頭以及公共部門的實力。

Importantly, we continue to maintain our strong commitment to being fiscally responsible, and act as good stewards of investors' capital. We delivered our fifth consecutive quarter of record operating profit, increasing nearly threefold year-over-year and significantly outperformed on free cash flow.

重要的是，我們繼續恪守對財政負責的堅定承諾，並充當投資者資本的良好管理者。我們連續第五個季度實現創紀錄的營業利潤，年增近三倍，自由現金流表現顯著優於其他公司。

Turning to revenue. Total revenue for the third quarter increased 32% year-over-year to $335.6 million. From a geographic perspective, the U.S. represented 52% of revenue and increased 30% year-over-year. EMEA represented 28% of revenue and increased 36% year-over-year. APAC represented 13% of revenue and increased 27% year-over-year.

轉向收入。第三季總營收年增 32% 至 3.356 億美元。從地理角度來看，美國佔營收的 52%，年增 30%。歐洲、中東和非洲地區佔營收的 28%，年增 36%。亞太地區佔營收的 13%，年增 27%。

Turning to our customer metrics. In the third quarter, we had 182,027 paying customers, representing an increase of 17% year-over-year. We ended the quarter with 2,558 large customers, representing an increase of 34% year-over-year, and an addition of 206 large customers in the quarter.

轉向我們的客戶指標。第三季度，我們擁有182,027名付費客戶，較去年同期成長17%。截至本季末，我們擁有 2,558 家大客戶，年增 34%，本季新增 206 家大客戶。

In fact, we added a record number of net new customers year-over-year spending more than $500,000 and $1 million on an annualized basis with Cloudflare. Our dollar-based net retention rate was 116% during the third quarter, representing an increase of 100 basis points sequentially. Also, there can be some variability in this metric quarter-to-quarter, we continue to believe the recent decelerating trend in DNR, stabilizing near these levels.

事實上，我們在 Cloudflare 上的年支出超過 50 萬美元和 100 萬美元的淨新客戶數量創歷史新高。第三季度，我們以美元計算的淨保留率為 116%，比上一季增加了 100 個基點。此外，該指標每季可能會出現一些變化，我們仍然相信 DNR 最近的減速趨勢，穩定在這些水平附近。

Moving to gross margin. Third quarter gross margin was 78.7%, representing an increase of 100 basis points sequentially, and an increase of 60 basis points year-over-year. Network CapEx represented 8% of revenue in the third quarter as we continue to benefit from our focus on driving greater efficiency from our infrastructure and the uniqueness of our platform to onboard new workloads.

轉向毛利率。第三季毛利率為78.7%，季增100個基點，較去年同期成長60個基點。網路資本支出佔第三季收入的 8%，我們繼續受益於我們專注於提高基礎設施效率以及平台的獨特性以加載新工作負載。

Despite having begun to invest in the enormous AI opportunity in front of us, with the planned rollout of GPUs to more than 100 cities by the end of this year, we expect network CapEx to be 8% to 10% of revenue in fiscal 2023. However, we anticipate network CapEx to return to more normalized levels over time.

儘管我們已經開始投資擺在我們面前的巨大人工智慧機會，並計劃在今年年底前將 GPU 推廣到 100 多個城市，但我們預計 2023 財年網路資本支出將佔收入的 8% 至 10%。然而，我們預期網路資本支出隨著時間的推移將恢復到更正常的水平。

Turning to operating expenses. Third quarter operating expenses as a percentage of revenue decreased by 5% sequentially and decreased by 6% year-over-year to 66%. Our total number of employees increased 11% year-over-year, bringing our total head count to 3,529 at the end of the quarter.

轉向營運費用。第三季營運費用佔營收的比例較上月下降 5%，年減 6%，至 66%。我們的員工總數年增 11%，季末總人數達到 3,529 人。

We were selective in hiring during the quarter, as we continue to evaluate deploying AI and automation at scale to reengineer our business processes across the company. Early investments in these areas are already delivering encouraging returns. We will remain prudent in hiring as we continue to invest in broadening and deepening the usage of AI and automation across our operations to drive higher productivity and greater efficiency.

我們在本季對招募進行了選擇性，因為我們繼續評估大規模部署人工智慧和自動化，以重新設計整個公司的業務流程。這些領域的早期投資已經帶來了令人鼓舞的回報。我們將在招聘方面保持謹慎，因為我們將繼續投資擴大和深化人工智慧和自動化在我們營運中的使用，以提高生產力和效率。

Sales and marketing expenses were $129 million for the quarter. Sales and marketing as a percentage of revenue decreased by 3% sequentially and decreased to 38%, from 41% in the same quarter last year. Research and development expenses were $54.2 million in the quarter. R&D as a percentage of revenue decreased by 1% sequentially and decreased to 16%, from 18% in the same quarter last year.

該季度的銷售和行銷費用為 1.29 億美元。銷售和行銷佔收入的百分比比上一季下降了 3%，從去年同期的 41% 降至 38%。該季度的研發費用為 5,420 萬美元。研發佔營收的比例較上月下降 1%，從去年同期的 18% 降至 16%。

General and administrative expenses were $38.5 million for the quarter. G&A as a percentage of revenue decreased by 2% sequentially and decreased to 11%, from 13% in the same quarter last year. Operating income was $42.5 million compared to $14.8 million in the same period last year. Third quarter operating margin was 12.7%, an increase of 690 basis points year-over-year. These results highlight our ongoing focus on becoming more productive and doing more with less, given that operational excellence is a long-term competitive advantage.

該季度的一般及管理費用為 3850 萬美元。 G&A 佔營收的百分比比上一季下降 2%，從去年同期的 13% 降至 11%。營業收入為 4,250 萬美元，去年同期為 1,480 萬美元。第三季營業利益率為12.7%，較去年同期成長690個基點。鑑於卓越營運是一項長期競爭優勢，這些結果凸顯了我們對提高生產力和事半功倍的持續關注。

Turning to net income and the balance sheet. Our net income in the quarter was $55.3 million or a diluted net income per share of $0.16. We ended the third quarter with $1.6 billion in cash, cash equivalents and available-for-sale securities. Free cash flow was $34.9 million in the third quarter or 10% of revenue, compared to negative $4.6 million or 2% of revenue in the same period last year. Remaining performance obligations, or RPO, came in at $1.1 billion, representing an increase of 5% sequentially and 30% year-over-year. Current RPO was 75% of total RPO.

轉向淨利潤和資產負債表。我們本季的淨利潤為 5,530 萬美元，攤薄後每股淨利潤為 0.16 美元。截至第三季末，我們擁有 16 億美元的現金、現金等價物和可供出售證券。第三季自由現金流為 3,490 萬美元，佔營收的 10%，去年同期為負 460 萬美元，佔營收的 2%。剩餘履約義務 (RPO) 為 11 億美元，季增 5%，年增 30%。目前 RPO 是總 RPO 的 75%。

Moving to guidance for the fourth quarter and the full year. With broadening geopolitical uncertainty and increasingly mixed macroeconomic data points across geographies, the business environment in which we operate remains challenging to predict. And as a result, we continue to remain prudent and cautious in our outlook for the fourth quarter.

轉向第四季和全年的指導。隨著地緣政治不確定性的擴大和各地區宏觀經濟數據點的日益混雜，我們經營所在的商業環境仍然難以預測。因此，我們對第四季度的前景繼續保持審慎和謹慎。

Now turning to guidance for the fourth quarter. We expect revenue in the range of $352 million to $353 million, representing an increase of 28% to 29% year-over-year. We expect operating income in the range of $28 million to $29 million, and we expect an effective tax rate of 7%. We expect diluted net income per share of $0.12, assuming approximately 354 million shares outstanding.

現在轉向第四季的指引。我們預計營收在 3.52 億美元至 3.53 億美元之間，年增 28% 至 29%。我們預計營業收入在 2,800 萬美元至 2,900 萬美元之間，有效稅率為 7%。假設流通股數量約為 3.54 億股，我們預計稀釋後每股淨利為 0.12 美元。

Please note that our share count guidance now includes dilution from our convertible senior notes of approximately 6.8 million shares, given that Cloudflare has achieved a level of profitability whereby these securities are no longer deemed antidilutive.

請注意，鑑於 Cloudflare 已達到一定的盈利水平，這些證券不再被視為具有反稀釋性，我們的股份數量指導現在包括約 680 萬股可轉換優先票據的稀釋。

For the full year 2023, we expect revenue in the range of $1.286 billion to $1.287 billion, representing an increase of 32% year-over-year. We expect operating income for the full year in the range of $110 million to $111 million, and we expect diluted net income per share over that period to be $0.45 to $0.46, assuming approximately 350 million shares outstanding. We expect an effective tax rate of 8% for 2023. After having achieved significant free cash flow in the first 3 quarters of the year, we expect to generate over $100 million in free cash flow for the full year 2023.

2023 年全年，我們預計營收在 12.86 億美元至 12.87 億美元之間，年增 32%。我們預計全年營業收入將在 1.1 億至 1.11 億美元之間，假設流通股數量約為 3.5 億，我們預計該期間的攤薄每股淨利潤將在 0.45 至 0.46 美元之間。我們預計 2023 年的有效稅率為 8%。在今年前 3 季實現可觀的自由現金流後，我們預計 2023 年將全年產生超過 1 億美元的自由現金流。

In closing, our team remains committed to driving operational excellence, ensuring long-term growth and delivering significant shareholder value. I'd like to thank our employees for their dedication to our mission, as well as our customers, for trusting us to help them solve some of the hardest problems that they face when modernizing and transforming their businesses.

最後，我們的團隊仍然致力於推動卓越運營，確保長期成長並提供顯著的股東價值。我要感謝我們的員工對我們使命的奉獻，以及我們的客戶相信我們能夠幫助他們解決他們在業務現代化和轉型時面臨的一些最棘手的問題。

And with that, I'd like to open it up for questions. Operator, please poll for questions.

說到這裡，我想開放提問。接線員，請投票詢問問題。

(Operator Instructions) Your first question comes from the line of Matt Hedberg from RBC Capital Markets.

（操作員說明）您的第一個問題來自 RBC Capital Markets 的 Matt Hedberg。

Matthew, for you, a lot of exciting news at Birthday Week, including Workers AI and everything else that you guys announced. I guess, broadly speaking, given the focus on (inaudible) and all the investments this year and next year, how should we expect to see some of the monetization benefits of generative AI customer spend. Is that something that you'd be able to quantify at some point? Or what are some of the breadcrumbs that we should watch for success there?

馬修，對你來說，生日週有很多令人興奮的消息，包括 Workers AI 和你們宣布的其他一切。我想，從廣義上講，考慮到今年和明年對（聽不清楚）和所有投資的關注，我們應該如何期望看到生成式人工智慧客戶支出的一些貨幣化收益。這是你在某個時候能夠量化的東西嗎？或者我們應該注意哪些方面才能成功？

Yes. Thanks, Matt. I think that there are a couple of different areas where we're monetizing, and that's starting to show up in the results. And then there are a couple of areas where I think there's a longer time horizon and we're really optimizing for adoption.

是的。謝謝，馬特。我認為我們正在幾個不同的領域進行貨幣化，這已經開始體現在結果中。然後，我認為有幾個領域的時間範圍較長，我們確實正在針對採用進行最佳化。

I think the place where we've been positively surprised is with our R2 product. R2 is our object store, and critically, it allows customers to be multi-cloud and to easily move data to wherever -- they're -- the resources that they need without charging them an egress tax like some of the other traditional hyperscale public clouds do.

我認為我們感到非常驚訝的地方是我們的 R2 產品。 R2 是我們的物件存儲，最重要的是，它允許客戶實現多雲並輕鬆地將資料移動到他們需要的資源的任何地方，而無需像其他一些傳統的超大規模公共服務那樣向他們收取出口稅雲做的。

That's a place where a lot of the growth that we're seeing is coming from AI companies. They love the fact that they can take their data and their training sets and move it to wherever they are GPUs that are available around the world. And that's driving, and I think as we see more and more usage of that, that's driving revenue for us that we're realizing today. And I think that will be something that will go forward into the quarters to come.

我們看到的大部分成長都來自人工智慧公司。他們喜歡這樣一個事實：他們可以將資料和訓練集移動到世界各地有 GPU 的任何地方。這就是推動力，我認為，隨著我們看到越來越多的使用它，這正在為我們帶來我們今天所意識到的收入。我認為這將是未來幾季的事情。

I think that some of the areas around inference, it's early days, but I think that you -- I think you'd be likely to hear us start talking about larger customers that are moving significant workloads over to the AI space. I think that the individual developers will be -- we're really going to optimize in that space for adoption, and building out an ecosystem. But as you hear us on earnings calls to come, talk about how people have really moved workloads, and we've got customers in the pipeline that are talking about moving billions of inference events per month to our network. That's when that starts to turn into real revenue for us. And I think it's early days, so we don't know exactly what the time frame on that will be, but the conversations we're having are very exciting, and it's a space that I'm definitely bullish on.

我認為圍繞推理的一些領域還處於早期階段，但我認為你們可能會聽到我們開始談論正在將大量工作負載轉移到人工智慧領域的大客戶。我認為個體開發者將會——我們真的會在這個領域進行最佳化以供採用，並建立一個生態系統。但是，當您在即將到來的財報電話會議上聽到我們時，請談論人們如何真正轉移工作負載，並且我們已經有客戶正在談論每月將數十億個推理事件轉移到我們的網絡。那時它開始轉化為我們的實際收入。我認為現在還為時過早，所以我們不知道確切的時間框架，但我們正在進行的對話非常令人興奮，這是我絕對看好的一個空間。

Super exciting. And then maybe, Thomas, for you. We still have Q4 to close out here and you didn't really talk about next year. But given some of the uncertainty out there, you guys are still delivering good results. Are there any building blocks that you'd share as we start to think about or fine-tune our calendar '24, either growth or profitability estimates?

超級刺激。也許，湯瑪斯，對你來說。我們還有第四季要結束，你並沒有真正談論明年。但鑑於存在一些不確定性，你們仍然取得了良好的成果。當我們開始思考或調整我們的 24 年日曆時，無論是成長還是獲利預測，您是否有任何建置模組可以分享？

Well, we won't talk too much about '24 on this earnings call, you might expect there will be time for that on our next earnings call. But I think it's important in mind, to keep in mind that we've been talking about how cascading the impacts are in terms of the progress we make and when it hits our books, right?

好吧，我們不會在本次財報電話會議上過多談論“24”，您可能預計我們的下一次財報電話會議上會有時間討論這一點。但我認為重要的是要記住，我們一直在談論我們所取得的進展以及何時影響到我們的帳簿所產生的級聯影響，對嗎？

It's all about building pipeline first, and we have seen strength there in the third quarter, continued in the fourth quarter. How this turns into ACV? This is where uncertainty is. And once it hits ACV, it will take a turn of 4 quarters before it shows up into revenue. So we have seen good targets, especially at the beginning of this cascade. And as we move through that waterfall of progress, you'll see results showing up in our numbers in next year.

首先是建立管道，我們在第三季度看到了管道的強勁勢頭，並在第四季度繼續保持強勁。這怎麼變成ACV？這就是不確定性所在。一旦達到 ACV，需要 4 個季度的時間才能體現在收入中。因此，我們看到了良好的目標，尤其是在這一一級聯的開始階段。當我們沿著瀑布式的進展前進時，您將看到明年我們的數據中顯示的結果。

Your next question comes from the line of Brent Thill of Jefferies.

您的下一個問題來自 Jefferies 的布倫特希爾 (Brent Thill)。

Matthew, you've highlighted sales efficiency as one of the top goals for this year. I think Thomas mentioned it was staying consistent or maybe you had mentioned this in linearity, was pretty steady. I guess you mentioned some of the sales improvements. But where do you stand in terms of your overall game plan on the go-to-market? How far are you through this process and kind of what's left? Is there an easy way to frame this move?

馬修，您強調銷售效率是今年的首要目標之一。我認為托馬斯提到它保持一致，或者也許你在線性中提到這一點，非常穩定。我想您提到了一些銷售改進。但就上市的整體計劃而言，您的立場如何？這個過程你進行到什麼程度了？還剩下什麼？有沒有一種簡單的方法來建構這個動作？

Yes. So we've talked about how on previous calls, we really looked across our go-to-market functions and recognized that there was an opportunity for us to improve. And what I'm proud of is that we haven't waffled on that path. We haven't changed course. We haven't had significant disruption or distraction as we've gone through that. And I think that the caliber and quality of the people that we're bringing on to those go-to-market teams, the early indications are, and again, they're still ramping, but the early indications are that they're doing a significantly stronger job and they're delivering real results.

是的。因此，我們在先前的電話會議中討論瞭如何真正審視我們的上市職能，並認識到我們有改進的機會。我感到自豪的是，我們在這條道路上沒有猶豫不決。我們沒有改變路線。在我們經歷這一切的過程中，我們並沒有受到重大的干擾或乾擾。我認為，我們為這些進入市場團隊引入的人員的能力和素質，早期跡象表明，他們仍在不斷提高，但早期跡象表明他們正在做一項明顯更強大的工作，並且他們正在交付真正的成果。

So that's a process, and it takes time to work through that. But I think that we're seeing positive indication. I think we're being, we don't want to lose our marbles and be too aggressive, but we're being very disciplined. And one of the things I remember, what we've always talked about is how we've had a business where we invest behind the demand that we see. And I think the same thing is true on the go-to-market side, where we're seeing that the increased rigor and increased discipline has early signs of paying off. And if that continues and we get more data points along the way, then that's a place where we'll be able to invest with, again, new leadership in place and new training and enablement for our sales team.

所以這是一個過程，需要時間來完成。但我認為我們看到了積極的跡象。我認為我們不想失去理智，也不想過於激進，但我們非常自律。我記得我們一直在談論的一件事是，我們如何開展一項業務，在我們看到的需求背後進行投資。我認為在進入市場方面也是如此，我們看到不斷加強的嚴格性和紀律性已初見成效。如果這種情況持續下去，並且我們在過程中獲得更多數據點，那麼我們將能夠在這個領域進行投資，再次為我們的銷售團隊提供新的領導層以及新的培訓和支援。

And again, I think we have -- it's early still, but I think that we have good indication, and I'm proud of the fact that we did this so far without significant disruption or distraction within our business.

再說一遍，我認為我們已經做到了——現在還為時過早，但我認為我們有很好的跡象，而且我感到自豪的是，到目前為止我們做到了這一點，沒有對我們的業務造成重大干擾或乾擾。

Your next question comes from the line of Joel Fishbein from Truist Securities.

您的下一個問題來自 Truist Securities 的 Joel Fishbein。

Thomas, one for you. It's a good segue from the last question. Clearly, outperforming on the gross margin and on the operating margin side and frankly, cash flow. Just -- how are you going to continue to balance profitability and invest in some of these high-growth areas that Matthew outlined? Just -- I'd love like some color there.

湯瑪斯，給你一個。這是最後一個問題的一個很好的延續。顯然，在毛利率和營業利潤率以及現金流方面都表現出色。只是——您將如何繼續平衡盈利能力並投資於馬修概述的一些高增長領域？只是——我想要一些顏色。

Yes. Just following up on what Matthew said. I think we have the business really well instrumented. You could see this now managing ourselves through quite some macroeconomic turbulences. So the business is well instrumented. The business model is built in a way that it allows us to have visibility when demand picks up and we will invest behind the demand.

是的。只是跟進馬修所說的。我認為我們的業務非常完善。你可以看到，現在我們正在透過相當多的宏觀經濟動盪來管理自己。因此，該業務的儀器儀表齊全。商業模式的建構方式使我們能夠在需求回升時獲得可見性，並在需求背後進行投資。

We've also realized that there is significant scalability and efficiency in the business model. This is what you are -- what has been showing up in the financial numbers over the last a couple of quarters really well. So I think the combination of visibility into -- is the business picking up or not, a well-instrumented business and a lot of elasticity in how we move forward, keeps us confident that we have the hands firm on the rudder, and can control the ramp up really well.

我們也意識到業務模型具有顯著的可擴展性和效率。這就是你的樣子——過去幾季的財務數據中表現得非常好。因此，我認為，業務是否好轉、業務是否完善、前進的方式具有很大的彈性，這些因素的結合使我們有信心，我們的手牢牢掌握在舵上，並且可以控制斜坡上升得很好。

Your next question comes from the line of Andrew Nowinski from Wells Fargo.

您的下一個問題來自富國銀行的安德魯‧諾溫斯基 (Andrew Nowinski)。

Congrats on another amazing quarter, and please accept my thoughts and prayers for your employees that are affected by the terrorist attack in Israel.

恭喜又一個令人驚嘆的季度，請接受我對受以色列恐怖攻擊影響的員工的思念和祈禱。

So I wanted to ask you guys about the Workers AI offering that you launched, I think it's really interesting. I was wondering what the early feedback is on it, in particular, the vector database component. And whether the staggered rollout of the GPUs is a potential gating factor, as people kind of wait -- maybe to deploy that at scale, or wait for the rollout of the NVIDIA GPUs before rolling out at scale.

所以我想問你們推出的 Workers AI 產品，我覺得這非常有趣。我想知道早期的回饋是什麼，特別是向量資料庫元件。 GPU 的交錯推出是否是一個潛在的限制因素，因為人們在等待——也許是大規模部署，或者等待 NVIDIA GPU 的推出，然後再大規模推出。

Yes, Andy, thanks for the question. Again, it's an area that we're extremely excited about. I'm proud of the fact that our team has been able to get it rolled out as quickly as they have, our -- we thought it was an ambitious goal to be in 100 cities by the end of the year. The fact that we're in, now over 75 today, and that we've been able to deliver that while staying very disciplined around CapEx is important.

是的，安迪，謝謝你的提問。這又是一個讓我們非常興奮的領域。我感到自豪的是，我們的團隊能夠像他們一樣快速地推出它，我們認為到今年年底在 100 個城市推出該服務是一個雄心勃勃的目標。事實上，我們現在已經超過 75 歲了，而且我們能夠在資本支出方面保持嚴格紀律的同時實現這一目標，這一點很重要。

We're not seeing that people are waiting for things to be everywhere, for them to be in and testing. I do think that as we are going into various geographies around the world, it creates a real differentiation with us. We're hearing especially in markets outside of the United States, how they have felt left behind in the AI space. And increasingly, I think as you're seeing with the executive order on AI, with some of the European regulation on AI, being able to keep AI local is, we think, going to be something that's a real differentiation for us.

我們並沒有看到人們在等待東西無處不在，等待它們進入並進行測試。我確實認為，當我們進入世界各地的不同地區時，它會為我們帶來真正的差異化。我們尤其在美國以外的市場聽到他們在人工智慧領域被拋在後面的感受。我認為，正如你所看到的關於人工智慧的行政命令，以及歐洲關於人工智慧的一些監管，我們認為，能夠將人工智慧保留在本地，這對我們來說將是真正的差異化。

The vector database, I think that's actually a good question to ask about and sort of got lost in some of the other stories, but I think some of the more sort of people who are paying attention within the AI space, recognize how important that is, being able to fine-tune your models and have a database that's built on top of the existing R2 infrastructure that we have, is something that not only allows us to do inference, but actually allows us to do fine-tuning as well, which gives us sort of 2 of the 3 major legs of the AI stool. And that's sort of my sneaky feature that I think is going to be pretty disruptive because you can use our vector database, whether you're using the rest of Cloudflare's AI systems, becomes a really great function for AI users who are wanting to do fine tuning.

向量資料庫，我認為這實際上是一個很好的問題，並且有點迷失在其他一些故事中，但我認為一些關注人工智慧領域的更多人認識到它的重要性，能夠微調您的模型並擁有一個建立在我們現有的R2 基礎設施之上的資料庫，這不僅允許我們進行推理，而且實際上還允許我們進行微調，這給了我們人工智慧凳子 3 個主要腿中的 2 個。這是我的一個偷偷摸摸的功能，我認為它會具有相當大的破壞性，因為無論您是否使用Cloudflare 的其他AI 系統，您都可以使用我們的向量資料庫，對於想要做得更好的AI 用戶來說，這將成為一個非常好的功能調整。

And that, combined with the locality that we can deliver with the Workers AI system and inference scattered around the entire world allows us to do something that is truly a complete AI ecosystem. And again, the AI developers that are paying attention, asked the same question, which is, "Wow, how did you guys add a vector database?" And the good news is, again, all of these things are built on a lot of the primitives that we had before. We did not have to go out and build something new. We could put GPUs in our existing servers. We could build sectorize the vector database on top of R2 and some of the other primitives that we had out there. And we could learn from the huge number of AI startups that are already using Cloudflare, in terms of what tools they needed in their tool kit, and that's what our team is delivering.

再加上我們可以透過 Workers AI 系統提供的本地性以及分散在全世界的推理能力，使我們能夠做一些真正完整的 AI 生態系統。所關注的人工智慧開發人員再次提出了同樣的問題，即“哇，你們是如何添加向量資料庫的？”好消息是，所有這些東西都是建立在我們之前擁有的許多原語之上的。我們不必出去建造新的東西。我們可以將 GPU 放入現有伺服器中。我們可以在 R2 和我們現有的一些其他原語之上建立扇區化向量資料庫。我們可以向大量已經在使用 Cloudflare 的 AI 新創公司學習，了解他們的工具包中需要哪些工具，而這正是我們團隊所提供的。

Your next question comes from the line of Hamza Fodderwala from Morgan Stanley.

您的下一個問題來自摩根士丹利的 Hamza Fodderwala。

And congrats on the solid result, in what's been a pretty tough environment. Matthew, just you talked a lot about the AI inference opportunity and a lot of great color there. Could you just maybe level set and remind us of all the different sort of vectors for potential monetization over time? You talked about R2, potentially the vector database angle as well. But any others that we should consider?

祝賀在相當艱難的環境中取得的堅實成果。馬修，剛才你談到了很多關於人工智慧推理機會和很多精彩的內容。您能否設定水平並提醒我們隨著時間的推移潛在的貨幣化的所有不同類型的向量？您談到了 R2，也可能涉及向量資料庫角度。但還有其他我們應該考慮的嗎？

And then maybe a follow-up for Thomas. I believe a lot of this is sort of priced on a more consumption basis. So as the demand starts to ramp, should we start to see that more in a real-time fashion as it relates to your revenue?

然後也許是湯瑪斯的後續行動。我相信其中很多都是基於更多消費的基礎上定價的。因此，隨著需求開始增加，我們是否應該開始更多地即時了解與您的收入相關的情況？

Yes, I'll start and then Thomas can add to it. I think there are 3 different areas in which we can see growth and delivery from AI.

是的，我先開始，然後托馬斯可以補充。我認為我們可以在 3 個不同的領域看到人工智慧的成長和交付。

The one where, we've seen it now, for at least the last 18 months, is just in our traditional products, using Cloudflare's security services to protect AI systems is absolutely critical. And as you go to some of the leading AI platforms that are out there, you'll often see Cloudflare's logo where we're using AI systems ourselves actually, to check to make sure you're a human being, check to make sure that you're not a threat before letting you on. So that's -- that, I think, is just our bread and butter, and what we can deliver very efficiently.

現在，至少在過去 18 個月裡，我們已經在我們的傳統產品中看到了這一點，使用 Cloudflare 的安全服務來保護 AI 系統絕對至關重要。當您訪問一些領先的 AI 平台時，您經常會看到 Cloudflare 的徽標，其中我們實際上自己使用 AI 系統，以檢查以確保您是人類，檢查以確保在讓你上車之前你不是一個威脅。所以，我認為，這就是我們的麵包和黃油，以及我們可以非常有效地提供的東西。

The second area is with things like R2 and charging for storage. And again, that's going to be storing the models, storing the training sets for those models, using the fine-tuning data with R2 and vectorize to be able to process those models. And again, that's going to be much more like a -- as you said, a consumption-based approach.

第二個領域是 R2 和儲存充電等。同樣，這將儲存模型、儲存這些模型的訓練集、使用 R2 微調資料並進行向量化以能夠處理這些模型。再說一遍，這將更像是一種——正如你所說的——基於消費的方法。

And then the third way is that we're charging for inference. And what I think is unique about us, is because at core Cloudflare's incredibly good as a routing and scheduling engine, that's how we're able to deliver the very high gross margins that we have compared with some others in the space, is that we just get a much higher degree of utilization, and we pass that on to our customers. And in this case, the way that we're charging for our GPUs is termed by the industry as a serverless method of charging. And what that means is we only charge you for when you're actually running an inference task. And then we're able to schedule that very effectively across our entire platform. And we think that, that's going to be very -- as disruptive in this space as some of the things that we've done with Workers have been -- in the traditional space. And that's something that is very attractive to AI developers.

第三種方式是我們對推理收費。我認為我們的獨特之處在於，從本質上講，Cloudflare 作為路由和調度引擎非常出色，這就是我們能夠提供與該領域其他一些公司相比非常高的毛利率的方式，因為我們只是獲得更高程度的利用率，然後我們將其傳遞給我們的客戶。在這種情況下，我們對 GPU 收費的方式被業界稱為無伺服器收費方法。這意味著我們僅在您實際執行推理任務時向您收費。然後我們就可以在整個平台上非常有效地進行安排。我們認為，這在這個領域將是非常顛覆性的，就像我們與 Workers 所做的一些事情一樣，在傳統領域。這對人工智慧開發人員來說非常有吸引力。

So I think those are the 3 ways that we see monetization around this. One is, our -- just traditional security products. Second is around storage of either training sets or models themselves, or the refining and fine-tuning model systems? Or then the third is, actually charging for what is effectively the compute capacity and doing that in a way that is, again, very disruptive, compared with some of the other providers that are in the space. And we can often decrease people's inference task costs pretty substantially, while that's still being a very high-margin business for us. So we're excited.

所以我認為這就是我們圍繞此貨幣化的三種方式。一是我們的－只是傳統的安全產品。其次是圍繞訓練集或模型本身的存儲，還是精煉和微調模型系統？或者第三種是，實際上對有效的計算能力進行收費，並且與該領域的其他一些提供者相比，這種方式再次具有顛覆性。我們通常可以大幅降低人們的推理任務成本，而這對我們來說仍然是一項利潤率非常高的業務。所以我們很興奮。

Coming back to your second question. So today, the share of variable revenue -- of our overall revenue is very, very low. But the ramp of the AI service and products that Matt has just mentioned, would increase this share.

回到你的第二個問題。所以今天，可變收入占我們總收入的份額非常非常低。但馬特剛才提到的人工智慧服務和產品的崛起將增加這一份額。

We've seen some of the strength actually in the third quarter from a revenue perspective already coming from variable revenue. So this is one data point. It's not enough to make a good correlation or a trend. But with a higher share of variable, with products and services that are price variable, you would see a more immediate impact on revenue for sure. But we don't have enough data yet to see how this will play out, but the first signs are encouraging.

從收入角度來看，我們實際上已經看到第三季的一些優勢已經來自可變收入。這是一個數據點。僅僅建立良好的相關性或趨勢是不夠的。但是，隨著變數份額的增加，以及價格可變的產品和服務，您肯定會看到對收入的更直接的影響。但我們還沒有足夠的數據來了解這將如何發揮作用，但初步跡象令人鼓舞。

Your next question comes from the line of James Fish from Piper Sandler.

你的下一個問題來自 Piper Sandler 的 James Fish。

You guys have talked a lot about AI here, but where are we with getting more shots on goal with more of the wave 2 products in network security in particular. Additionally, Thomas, more for you, well, net new customers were good. The dollars added just were a little bit lower than what we've seen in past few quarters. Is that just seeing a reduction in contract durations given the macro, or what other aspects are impacting this? And I'm sorry if I missed this, did you give an RPO number this quarter?

你們在這裡談論了很多關於人工智慧的話題，但是我們在哪裡可以透過更多的第二波產品（特別是在網路安全領域）獲得更多的射門機會。此外，托馬斯，對你來說還有更多，嗯，淨新客戶很好。增加的美元比我們過去幾季看到的略低。這只是考慮到宏觀因素導致合約期限縮短，還是還有其他方面對此產生影響？如果我錯過了，我很抱歉，您是否提供了本季的 RPO 數字？

Yes, Jim, so I'll take the first bit and then hand it off to Thomas for the second bit.

是的，吉姆，所以我將第一部分交給湯瑪斯，然後將第二部分交給湯瑪斯。

I think we're seeing real strength around the network security and our Zero Trust products. We've been recognized as leaders in those spaces by a number of the key analysts. That's driven up the amount of interest. The pipeline for those products is extremely strong. And what we're seeing is that, increasingly, customers want -- especially in the sort of making every IT dollar go further, increasingly, they want to say, I don't just want to protect the back door of my business. I want to protect the front door, the back door, the side door and all of the doors in the business.

我認為我們看到了網路安全和零信任產品的真正優勢。我們被許多關鍵分析師認可為這些領域的領導者。這推高了興趣。這些產品的管道非常強大。我們看到的是，客戶越來越希望——尤其是讓每一塊 IT 資金都能發揮更大作用，他們越來越想說，我不僅僅是想保護我的業務後門。我想保護前門、後門、側門以及企業中的所有門。

And so we're the one vendor that is able to give people that vendor consolidation, that single pane of glass. And I think that, that comes through in a lot of customer examples and stories that we've seen. And so what we're seeing more and more is, people want to buy the entire Cloudflare platform. They want to protect their entire business with that, and that's driving more interest in both our network security, as well as our Zero Trust products.

因此，我們是唯一一家能夠為人們提供供應商整合、單一管理平台的供應商。我認為，我們看到的許多客戶範例和故事都體現了這一點。因此，我們越來越常看到，人們想要購買整個 Cloudflare 平台。他們希望以此來保護他們的整個業務，這促使人們對我們的網路安全以及我們的零信任產品產生了更多興趣。

RPO for the third quarter was $1.083 billion. I think it was part of my script. Expansion is getting better, DNR ticked up 1 percentage point. So it's stabilizing. I think that is what we have been talking about in the previous earnings call that we see bottoming out. But I would still say that it is easier to have new logo acquisition than it is to expand with existing customers. And the trend we have seen that this might be impacted, timing-wise or budget-wise, by current macro concerns, I think still holds true. It has not changed materially from the third quarter -- from the second quarter.

第三季的RPO 為10.83 億美元。我認為這是我劇本的一部分。擴張情況趨好，DNR 上升 1 個百分點。所以它正在穩定。我認為這就是我們在之前的財報電話會議中一直在談論的，我們看到觸底反彈。但我仍然想說，取得新商標比擴展現有客戶更容易。我們看到的趨勢是，這可能會受到當前宏觀擔憂的時間或預算影響，我認為仍然如此。與第三季和第二季相比，它沒有發生重大變化。

Your next question comes from the line of Shrenik Kothari from Baird.

您的下一個問題來自 Baird 的 Shrenik Kothari。

Congrats on the solid execution. I'd just like to switch gears a little bit to DDoS. So Matthew, I mean, of course, Cloudflare's unique approach to DDoS pricing, definitely differs from the competition? And instead of tying the price to the size of the attack, you've opted for kind of a more customer-centric approach.

祝賀紮實的執行力。我只是想稍微轉向一下 DDoS。所以 Matthew，我的意思當然是，Cloudflare 獨特的 DDoS 定價方法肯定不同於競爭對手？您沒有將價格與攻擊的規模掛鉤，而是選擇了一種更以客戶為中心的方法。

So just curious in today's elevated DDoS landscape, are you seeing the flexibility kind of appreciated by customers and not being charged based on the scale of the attack. Is it becoming a key driver for kind of stronger share gains? And then I have a quick follow-up for Thomas.

因此，您很好奇，在當今 DDoS 情況日益嚴峻的情況下，您是否看到了客戶所讚賞的靈活性，而不是根據攻擊規模進行收費。它是否會成為某種更強勁的股票收益的關鍵驅動力？然後我對托馬斯進行了快速跟進。

Yes. So first of all, I mean, the world is getting a lot more complicated, and we're seeing even nation state actors turning to DDoS attacks to disrupt services around the world, and a new attack vector, which our team alongside Google and AWS helped discover and announced this last quarter, is generating attacks that are, I mean, literally almost doubling the total volume of traffic on the entire Internet when they're going forward.

是的。首先，我的意思是，世界變得越來越複雜，我們甚至看到國家行為者也轉向 DDoS 攻擊來破壞世界各地的服務，以及我們的團隊與 Google 和 AWS 一起使用的新攻擊向量上個季度幫助發現並宣布了這一點，正在產生攻擊，我的意思是，當它們繼續發展時，幾乎使整個互聯網上的總流量幾乎增加了一倍。

And the nature of how we're able to stop those attacks and the architecture of how we're able to stop those attacks is very unique to Cloudflare. And we're seeing even some of the large hyperscale public clouds that have their own limited DDoS mitigation services point customers to us, because we're the best in the world at this. And I think that, that's a real differentiator for us.

我們如何能夠阻止這些攻擊的本質以及我們如何能夠阻止這些攻擊的架構對於 Cloudflare 來說是非常獨特的。我們甚至看到一些擁有有限 DDoS 緩解服務的大型超大規模公有雲也將客戶引向了我們，因為我們在這方面是世界上最好的。我認為這對我們來說是一個真正的差異化因素。

The pricing also is important. And what's unique is because every single server that is part of Cloudflare's network can run every single service. As we stop these massive attacks, not only are we, again, better able to technically stop them, but we are then able to do it without changing our underlying pricing because it doesn't drive up what our costs are.

定價也很重要。獨特之處在於，Cloudflare 網路中的每台伺服器都可以運行每項服務。當我們阻止這些大規模攻擊時，我們不僅能夠在技術上更好地阻止它們，而且我們能夠在不改變我們的基礎定價的情況​​下做到這一點，因為它不會增加我們的成本。

Early on, we said that we should pass that advantage on to our customers. And so we created pricing that was, as you said, very customer-centric that's appreciated by the market. I think more and more people are leaning in on DDoS and using us for that. And what we're seeing is that, then we can use that as sort of the milk in the grocery store where we can sell other products across our suite.

早些時候，我們說過我們應該將這一優勢傳遞給我們的客戶。因此，正如您所說，我們制定的定價非常以客戶為中心，受到市場的讚賞。我認為越來越多的人開始依賴 DDoS 並利用我們來實現這一目標。我們看到的是，然後我們可以將其用作雜貨店的牛奶，在那裡我們可以在我們的套房中銷售其他產品。

And just like I said before, customers don't just want to protect the front door. They don't just want to protect the back door. They want to protect all of the parts of our business. And so we're seeing that having collective solutions from a platform that can solve DDoS, Zero Trust, WAF, rate-limiting, bot management, Access Control and have that all behind one single pane of glass is a very, very, very compelling offering, or somewhat starkly, if you look at some of the other Zero Trust vendors that are out there, they're actually Cloudflare customers using our DDoS mitigation products because we're the best of the world -- in the world at them.

正如我之前所說，顧客不僅想保護前門。他們不僅僅是想保護後門。他們希望保護我們業務的所有部分。因此，我們看到，透過一個平台提供集體解決方案，可以解決DDoS、零信任、WAF、速率限制、機器人管理、存取控制問題，並將所有這些都放在一個管理平台上，這是一項非常非常引人注目的工作提供，或者有些明顯的是，如果您看看其他一些零信任供應商，您會發現他們實際上是使用我們的DDoS 緩解產品的Cloudflare 客戶，因為我們是世界上最好的- 在他們的世界中。

Great. Just -- very super helpful. Just a quick follow-up on what you said around Zero Trust. I mean I agree, your margin really allows you to kind of disrupt the market, kind of enabling you to use pricing as a competitive advantage. And of course, you discussed the DDoS pricing. And on Zero Trust, like where you're bundling around SASE and Zero Trust.

偉大的。只是——非常非常有幫助。只是快速跟進您關於零信任的言論。我的意思是我同意，你的利潤確實可以讓你擾亂市場，讓你能夠利用定價作為競爭優勢。當然，您也討論了 DDoS 定價。在零信任方面，就像您將 SASE 和零信任捆綁在一起一樣。

Just curious, like, it still seems like you guys are still pricing kind of similarly uniquely versus the market more attractively? Just curious, are you thinking about kind of also going for like premium optimal pricing given where the market is, given the strength of the demand and also try to push forward on the margin front, is that a lever that you guys are thinking through?

只是好奇，就像，你們似乎仍然以類似的方式獨特地定價，而不是比市場更有吸引力？只是好奇，您是否正在考慮在考慮到市場狀況、需求強度的情況下尋求溢價最優定價，並嘗試在利潤率方面取得進展，這是您正在考慮的槓桿嗎？

I think that we can use price there as a weapon to win business. We have tended not to see that there's a lot of price sensitivity there. So we're not going to just push that if we don't have to. I think that the place that is more attractive is actually in how we create platforms where you can have a complete network security solution. And it's also really powerful that we can run our Zero Trust products at extremely, extremely high margins, for actually the same reasons as the DDoS mitigation products.

我認為我們可以利用價格作為贏得業務的武器。我們往往沒有看到那裡存在很多價格敏感性。因此，如果沒有必要，我們不會只是推動這一點。我覺得更吸引人的地方其實是我們如何創建平台，讓你能夠擁有完整的網路安全解決方案。而且我們可以以極高的利潤來運行我們的零信任產品，這也非常強大，實際上與 DDoS 緩解產品的原因相同。

If you take all of the other Zero Trust vendors that are out there and add up all their traffic, we could add them all to Cloudflare's network without significantly increasing our underlying COGS of delivering that traffic. And so that gives us an advantage over time. And we do believe that whoever has the lowest cost of servicing tends to win over the long term. And that is something that is very difficult for any of our competitors in that space to match.

如果您將所有其他零信任供應商的所有流量加起來，我們可以將它們全部添加到 Cloudflare 的網路中，而不會顯著增加我們提供該流量的底層 COGS。因此，隨著時間的推移，這給我們帶來了優勢。我們確實相信，從長遠來看，服務成本最低的人往往會贏得勝利。這是我們在該領域的任何競爭對手都難以匹敵的。

Your next question comes from the line of Alex Henderson from Needham & Company.

您的下一個問題來自 Needham & Company 的 Alex Henderson。

Matt, you guys continue to amaze me in the ability to anticipate things 5, 6, 7 years before they happen, I think about the microthreading of -- micro services in your serverless platform as an example. And now you're talking about having less slots open for inference AI, 6 years ahead of schedule. It's pretty amazing (inaudible).

馬特，你們在事情發生前 5 年、6 年、7 年預測事情的能力繼續讓我感到驚訝，我以你們的無伺服器平台中的微服務為例。現在，您正在談論減少推理人工智慧的開放空間，比原計劃提前了 6 年。這真是太神奇了（聽不清楚）。

But I was hoping you could talk a little bit about the uniqueness of the platform as we move into the world driven by inference AI. It's pretty clear to me that the combination of the Workers platform, combined with the location of your edge, combined with all of the other elements of the service platform at the edge gives you a unique positioning, particularly with the R2 and the vectors stuff that you've announced. So is there anybody else that has, in our reasonable positioning to compete with you in that context? Or are you as unique as you look in this competitive landscape?

但我希望您能在我們進入推理人工智慧驅動的世界時談談該平台的獨特性。我很清楚，Workers 平台與邊緣位置的結合，以及邊緣服務平台的所有其他元素的結合，為您提供了獨特的定位，特別是 R2 和向量的東西，您已經宣布了。那麼，在我們的合理定位下，還有其他人可以在這種情況下與你們競爭嗎？或者說，在這個競爭激烈的環境中，您是否像您看起來那樣獨特？

Thanks for the kudos. And I think we sometimes are a little bit early. And sometimes, and for people who are paying close attention almost 3 years ago, we actually did an announcement with NVIDIA that was a trial balloon, kind of in the space to see how much demand there was. And at the time, there wasn't a ton of demand, but we could see how the models are improving. Inference is improving. We knew that this was something which was coming. And so we learned from that first thing. I think we've built a really strong relationship with the NVIDIA team in part because of that, and some of the work that we've done with them in the networking space.

謝謝你的榮譽。我認為我們有時有點早。有時，對於大約 3 年前密切關注的人來說，我們實際上與 NVIDIA 一起發布了一個試驗氣球公告，旨在了解該領域的需求。當時，需求並不多，但我們可以看到模型正在如何改進。推理能力正在進步。我們知道這即將發生。所以我們從第一件事學到了教訓。我認為我們與 NVIDIA 團隊建立了非常牢固的關係，部分原因在於這一點，以及我們與他們在網路領域所做的一些工作。

But I think that we try to learn and stay and buy ourselves the flexibility over time to be able to deliver in this space. I don't know of anybody else that has an architecture like ours, where we made the hard decision early on, to say, every machine everywhere can run every task. So that we don't have dedicated scrubbing centers. So that we don't have dedicated regions for 1 service or another. That has required us to invent a lot of technology. And build a lot of intellectual property around that technology and just a lot of know-how in running a network like that. It is harder upfront to build it that way. But it results in a much higher level of efficiency, a much higher level of -- a much faster pace of innovation, and we're able to capitalize on that today.

但我認為，隨著時間的推移，我們會努力學習、留下來，為自己贏得靈活性，以便能夠在這個領域有所作為。我不知道還有誰擁有像我們這樣的架構，我們很早就做出了艱難的決定，即任何地方的每台機器都可以運行每項任務。所以我們沒有專門的擦洗中心。這樣我們就沒有專門的區域來提供一項服務或另一項服務。這要求我們發明很多技術。並圍繞該技術建立大量知識產權以及運行此類網路的大量專業知識。預先以這種方式建造它會更困難。但它會帶來更高水準的效率、更高水準的——更快的創新步伐，我們今天能夠利用這一點。

And so I think it would require a complete rearchitecture from any of the providers that we know in order to be able to do what we've done in this space. And I think it's, again, part of the secret to our continued pace of innovation. And again, really proud of our team and everything that they've done to be able to deliver it.

因此，我認為我們需要對我們所知道的任何提供者進行徹底的重新架構，以便能夠完成我們在這個領域所做的事情。我認為這也是我們持續創新的秘訣之一。再次，我們為我們的團隊以及他們為實現這一目標所做的一切感到非常自豪。

One last question along the same line, if I could. The inference AI market, how much of it do you expect to be at the edge? And how much do you expect within inference that might be in more centralized or regionalized locations?

如果可以的話，我還有一個同樣的問題。您預計推理人工智慧市場有多少處於邊緣？您預計在更集中或區域化的位置進行的推理有多少？

So I mean my thesis around this is that, probably the most inference tasks will be run directly on your device. So on your Apple device, on your Samsung device, on your LG device, whatever that is.

所以我的意思是，我的論點是，大多數推理任務可能會直接在您的裝置上運行。因此，在您的 Apple 裝置、三星裝置、LG 裝置上，無論是什麼裝置。

But ideally, you're going to want to have it so that you can seamlessly hand off, whether you're using a low-power device that needs to optimize for battery life or needs to optimize for the lowest build of materials, or you're trying to run a task, which is so big and powerful that you're going to have to hand that off to a device nearby. And so you want the rails between those things to be as seamless and efficient as possible. And from a user's experience, you're going to want that to be transparent to them.

但理想情況下，您會希望擁有它，以便可以無縫切換，無論您使用的是需要優化電池壽命的低功耗設備，還是需要優化最低結構的材料，或者您正在嘗試運行一項任務，該任務是如此龐大和強大，以至於您必須將其交給附近的設備。因此，您希望這些事物之間的軌道盡可能無縫且高效。從用戶的體驗來看，您會希望這對他們來說是透明的。

And so I think the most powerful devices out there are going to get more and more powerful with the models that are running on them, but less powerful devices, devices that, again, have to have weeks of battery life but still need to be smart, or the most interesting models that are bigger and can do more interesting things, I think it's going to naturally make sense for that inference to be actually running as close as possible to the end user. I don't see a ton of reasons why you would run inference back in some centralized location. I think that, that is going to have a performance penalty in doing that. I think it's going to have a regulatory penalty in doing that. I think it's going to also have, actually, cost disadvantage in sending it back to a central location.

因此，我認為最強大的設備將隨著其上運行的模型而變得越來越強大，但功能較弱的設備必須有數週的電池壽命，但仍然需要智能，或者是更大並且可以做更有趣的事情的最有趣的模型，我認為該推理盡可能接近最終用戶實際運行自然是有意義的。我沒有看到太多為什麼要在某個集中位置運行推理的原因。我認為這樣做會降低效能。我認為這樣做將會受到監管處罰。我認為實際上，將其發送回中心位置也會存在成本劣勢。

And so as we build this out and we give people the tools to be able to run those sophisticated models at the edge, I think it's a 2-horse race that is going to be the phone and end device manufacturers that are going to get better and better and better over time. And then it's going to be connectivity clouds like Cloudflare that are going to deliver on those models that can't run on the end device itself.

因此，當我們建造這個系統並為人們提供能夠在邊緣運行這些複雜模型的工具時，我認為這是一場兩匹馬的競賽，手機和終端設備製造商將會變得更好並且隨著時間的推移越來越好。然後，像 Cloudflare 這樣的連接雲將提供那些無法在終端設備本身上運行的模型。

Your next question comes from the line of Mark Murphy from JPMorgan.

您的下一個問題來自摩根大通的馬克墨菲。

Matthew, you have so many products that can help companies reduce the egress fees and all the other charges that are running up in their hyperscaler bills. And I was thinking of Super Slurper and Sippy and HyperDrive, and some of the other products, could you comment on the demand patterns there? And just whether you're benefiting from some of those optimization efforts out there. And then I have a quick follow-up.

馬修，您有很多產品可以幫助公司減少出口費用以及超大規模帳單中出現的所有其他費用。我想到了 Super Slurper、Sippy 和 HyperDrive，以及其他一些產品，您能評論一下那裡的需求模式嗎？以及您是否從其中的一些優化工作中受益。然後我會進行快速跟進。

Yes, I think that that's -- I mean, everyone today is looking at their cloud bill and saying, how can we make this go down? How can we get more with every IT dollar that is being spent?

是的，我認為這就是——我的意思是，今天每個人都在看著他們的雲端帳單並說，我們怎麼能讓這種情況下降？我們如何讓投入的每一塊 IT 資金獲得更多收益？

And as companies do that, they are realizing that, one, the best way to not get just completely gauged by whoever your cloud provider is, is not be completely dependent on them, and have the ability to negotiate and move data and workloads from one provider to another. And so enabling that multi-cloud universe is just fundamental to how we think about what we're doing. And then second, to finding those places where you might be more locked in today and finding ways to release that lock in. And I think that's fundamentally what we're doing at Cloudflare.

當公司這樣做時，他們意識到，無論你的雲端提供者是誰，最好的方法不是完全依賴他們，而是有能力協商和移動數據和工作負載。提供者給另一個人。因此，實現多雲世界是我們如何思考我們正在做的事情的基礎。其次，找到您今天可能更容易被鎖定的地方，並找到釋放這種鎖定的方法。我認為這就是我們在 Cloudflare 所做的根本工作。

As I talked about in the beginning, the hyperscale public clouds, the key KPI that they pay attention to is, how much of a customer's data are they hoarding on their systems? Do they hold captive, whereas the cloud players, what we pay the most attention to is, how much connectivity can we deliver? How many things can we make it easy to move that data between?

正如我一開始談到的，超大規模公有雲，他們關注的關鍵KPI是，他們在他們的系統上囤積了多少客戶資料？他們是否被俘虜了，而雲端玩家，我們最關注的是，我們能提供多少連結？我們可以在多少事物之間輕鬆移動數據？

And I think that fundamental difference, it's not so much that we're trying to compete directly with the cloud, but over time, what we really want to do is enable customers to be able to get the best out of AWS and Google, and Microsoft, and Oracle, and IBM, and Alibaba, and Tencent and be that fabric that connects them all together. And I think more and more customers are seeing the power of that. They're multicloud, whether they want to be or not, and we're the consistent control plane that can sit between all of those things, help them reduce their costs, help them reduce lock-in, and really have a much more competitive cloud ecosystem over time.

我認為根本的差異並不是我們試圖與雲端直接競爭，而是隨著時間的推移，我們真正想做的是讓客戶充分利用 AWS 和 Google，並且微軟、甲骨文、IBM、阿里巴巴和騰訊，成為將它們連接在一起的結構。我認為越來越多的客戶正在看到它的力量。他們是多雲的，無論他們願意與否，而我們是一致的控制平面，可以位於所有這些事物之間，幫助他們降低成本，幫助他們減少鎖定，並真正擁有更具競爭力的產品。隨著時間的推移雲生態系。

I really appreciate it. And just as a follow-up, is there any rough math on the number of GPUs you're loading into suitcases to install over the next 12 months? And should we assume that those are, or that there can be some of the lower-end GPUs for inferencing and they're not the ultra-expensive high-end ones?

對此，我真的非常感激。作為後續問題，您是否對未來 12 個月內要裝入手提箱中安裝的 GPU 數量進行了粗略計算？我們是否應該假設這些是，或者可以有一些用於推理的低端 GPU，而不是超昂貴的高端 GPU？

I think that what we hear from customers is that they don't want to have to think about what GPU is the right GPU for them. And so we will have a mix of GPUs. Today, we're standardized around NVIDIA, but we're good friends with the folks at AMD and Intel and Qualcomm. We're all doing interesting things and different models from what we've seen perform differently on different types of GPUs that are out there. And so I think you'll find every flavor under the sun of -- from expensive to cheap delivered across the network.

我認為我們從客戶那裡聽到的是，他們不想考慮什麼 GPU 是適合他們的 GPU。因此我們將混合使用 GPU。如今，我們以 NVIDIA 為中心進行標準化，但我們與 AMD、英特爾和高通的員工是好朋友。我們都在做有趣的事情，不同的模型在不同類型的 GPU 上表現也不同。因此，我認為您會發現透過網路提供的各種口味，從昂貴的到便宜的。

But what we're really trying to optimize for, is looking at the models that are being run and then giving people the right tools that they need in a way that can give them the best performance on, not just a speed basis, but also on a cost and efficiency basis. And that's going to be diversity across that ecosystem. And we are good at being able to scale up our capacity as we have demand and investing behind the demand. And I think that this is going to be another area where we demonstrate that.

但我們真正想要優化的是，查看正在運行的模型，然後為人們提供他們所需的正確工具，從而為他們提供最佳性能，不僅是速度，而且還在成本和效率的基礎上。這將是整個生態系的多樣性。我們擅長在有需求時擴大產能，並在需求背後進行投資。我認為這將是我們展示這一點的另一個領域。

Our final question comes from the line of Trevor Walsh from JMP Securities.

我們的最後一個問題來自 JMP 證券公司的 Trevor Walsh。

Matthew, I just wanted to piggyback, maybe of some of your last comments there on that final question, and just the ones you had in your prepared remarks around the category classification of the connectivity cloud. That makes total sense to me in terms of the strategic, more CIO lens, as far as kind of the benefits of being on that connective tissue and kind of savings around R2 and kind of all the things.

馬修，我只是想藉鑑一下您對最後一個問題的最後評論，以及您在準備好的有關連接雲類別分類的評論中的評論。從戰略角度來看，這對我來說是完全有意義的，更多的是 CIO 視角，就結締組織的好處以及 R2 周圍的節省等等而言。

But as you go and talk to CISOs and especially within the context of your R2 products that you have, Zero Trust and otherwise, does that messaging kind of need to change a little bit? Or do you think they view it in the same way? Because I think they're kind of, obviously, the audience is in the kind of the overall value front might, I mean, be similar, but different in some respects, just maybe help us understand how might that CISO respond or are, in fact, responding to that same connectivity cloud messaging.

但是，當您與 CISO 交談時，尤其是在您擁有的 R2 產品、零信任等環境中，這種訊息傳遞是否需要稍微改變一下？或者你認為他們的看法是一樣的嗎？因為我認為，顯然，受眾的整體價值可能是相似的，但在某些方面有所不同，這也許可以幫助我們了解 CISO 會如何回應或在事實上，回應相同的連結雲端訊息。

Yes. I think we've been strong with CISOs for some time, and they know us and they know the value that we can deliver. I think what we're trying to make sure is that we have, can have a strategic conversation with the CIOs and the CFOs that are out there and say, "Here's how we can deliver value, help you consolidate vendors and give you one consistent control plane that is -- that has an incredible ROI to it."

是的。我認為我們與 CISO 的合作已經有一段時間了，他們了解我們，也知道我們可以提供的價值。我認為我們要確保的是，我們能夠與 CIO 和 CFO 進行策略對話，並說：「我們可以透過以下方式提供價值，幫助您整合供應商，並為您提供一致的解決方案。」控制平面具有令人們難以置信的投資回報率。”

So I think we're -- we don't want to rest on our laurels. We've been very, very strong with practitioners. We've been very strong in the security community but we want to make sure that we can have that strategic conversation. And we had a record number of customers that were signed up, at over $1 million a year with us. We had a record number that crossed into the $5 million a year with us this last quarter. And those are conversations that have to be had. The CFO, even in large companies, the CFO is going to be involved in signing $5 million deals.

所以我認為我們不想安於現狀。我們對從業者的態度非常非常強。我們在安全領域一直非常強大，但我們希望確保我們能夠進行戰略對話。我們的簽約客戶數量創歷史新高，每年超過 100 萬美元。上個季度，我們的年收入突破了 500 萬美元，創歷史新高。這些都是必須進行的對話。 CFO，即使在大公司，CFO也會參與簽署500萬美元的交易。

And so I think that the messaging is the right time and it reflects that we are talking to higher and higher levels within the organization, and we are being seen much more as a strategic partner within those companies.

因此，我認為發布訊息是正確的時間，它反映出我們正在與組織內越來越高的層級進行對話，並且我們更多地被視為這些公司內的策略夥伴。

Thank you. I will now turn the call over to Matthew Prince for closing remarks.

謝謝。現在我會把電話轉給馬修‧普林斯 (Matthew Prince) 致閉幕詞。

I appreciate everyone at Cloudflare, all of our customers, partners, in helping us navigate what is an increasingly complicated world. Our thoughts are with all of the people around the world that are being affected by war. We're continuing to deliver our services and stand up for the Internet, and even in these incredibly complicated times, the work that Cloudflare does is important in making sure the Internet can continue to thrive. Thank you all. I'll see you back in the next quarter.

我感謝 Cloudflare 的每個人、我們所有的客戶、合作夥伴幫助我們應對日益複雜的世界。我們與世界各地所有受戰爭影響的人們同在。我們將繼續提供服務並支援互聯網，即使在這個極其複雜的時代，Cloudflare 所做的工作對於確保互聯網能夠繼續蓬勃發展也很重要。謝謝你們。我們下個季度再見。

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。