Cloudflare Inc (NET) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to the Cloudflare Q4 2023 Earnings Conference Call. Please note, this call is being recorded. (Operator Instructions)

下午好，歡迎參加 Cloudflare 2023 年第四季財報電話會議。請注意，此通話正在錄音。 （操作員說明）

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

我現在將把電話轉給策略財務、財務和投資者關係副總裁 Phil Winslow 先生。您可以開始您的會議了。

Thank you for joining us today to discuss Cloudflare's financial results for the fourth quarter of 2023. With me on the call, we have Matthew Prince, Co-Founder and CEO; Michelle Zatlyn, Co-Founder, President and COO; and Thomas Seifert, CFO.

感謝您今天加入我們討論 Cloudflare 2023 年第四季的財務表現。與我一起參加電話會議的還有共同創辦人兼執行長 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 and partners operations and future financial performance, our anticipated product launches and the timing and market potential of those products, our anticipated future, financial and operating performance and our expectations regarding future macroeconomic conditions. 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.

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、供應商和合作夥伴的營運以及未來的財務業績，我們預期的產品發布以及這些產品的時間和市場潛力，我們的預期的未來、財務和經營業績以及我們對未來宏觀經濟狀況的預期。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. For historical periods, a GAAP to non-GAAP reconciliation can be found in supplemental financial information referenced a few moments ago.

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，我們今天討論的除收入之外的所有數字都將基於調整後的非公認會計原則。您可以在我們的投資者關係網站上的收益發布中找到 GAAP 與非 GAAP 財務指標的調整表。對於歷史時期，可以在剛才引用的補充財務資訊中找到 GAAP 與非 GAAP 調整表。

We would also like to inform you that we will be participating in Baird's Software Silicon Slopes event on February 28 and the Morgan Stanley Technology, Media and Telecom Conference on March 6.

我們也想通知您，我們將參加 2 月 28 日舉行的 Baird 軟體矽坡活動以及 3 月 6 日舉行的摩根士丹利技術、媒體和電信會議。

Before wrapping up, please save the date Investor Day on Thursday, May 30, 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，請記住 5 月 30 日星期四的投資者日，該日期與我們在紐約市舉行的用戶會議 Cloudflare Connect 同時舉行。也可以透過我們的投資者關係網站存取現場網路廣播。

Now I'll turn the call over to Matthew.

現在我將把電話轉給馬修。

Thank you, Phil. We had an exceptionally strong quarter. We achieved revenue of $362.5 million, up 32% year-over-year. We added 198 new large customers, those that pay us more than $100,000 per year and now have 2,756 large customers, up 35% year-over-year. We saw particular strength in our largest customers with a record number of net new customers spending more than both $0.5 million a year and $1 million a year on an annualized basis. We signed our largest new logo with an expected total contract value over $30 million and our largest customer renewal with a total contract value of $60 million.

謝謝你，菲爾。我們度過了一個異常強勁的季度。我們營收 3.625 億美元，年增 32%。我們新增了 198 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 2,756 個，較去年同期成長 35%。我們看到我們最大的客戶特別有實力，每年淨新客戶支出超過 50 萬美元和 100 萬美元，創下歷史新高。我們簽署了最大的新徽標，預計合約總價值超過 3000 萬美元，並簽署了最大的客戶續約合約總價值 6000 萬美元。

We blew away our previous record for new ACV booked in the quarter. In Q4, new ACV booked grew nearly 40% year-over-year, making it not only our record in absolute ACV but also the fastest percentage growth we've seen since 2021. Our pipeline closed rates sales force productivity, average deal size and linearity all improved markedly quarter-over-quarter. I continue to be encouraged by the early results we're seeing from our new sales recruiting and training programs.

我們打破了先前本季新預訂 ACV 的記錄。第四季度，新預訂的 ACV 年成長近 40%，這不僅是我們絕對 ACV 的記錄，也是我們自 2021 年以來最快的百分比成長。我們的通路關閉率、銷售人員生產力、平均交易規模和線性度均較上一季顯著改善。我們從新的銷售招募和培訓計劃中看到的早期結果繼續讓我感到鼓舞。

During the fourth quarter, the pipeline generated by the cohort under the new program was 2.1x higher than the year ago cohort. And account engagement increased by 3.5x compared with a year ago. I'm excited by our maturing sales execution and believe it will pay dividends in 2024 as these sales professionals fully rank. Our dollar-based net retention ticked down 1% quarter over to 115%. Our gross margin was 78.9%, again, above our long-term target of 75% to 77% and up from 78.7% last quarter.

第四季度，新計畫下的隊列產生的管道比去年同期高出 2.1 倍。與一年前相比，帳戶參與度增加了 3.5 倍。我對我們日漸成熟的銷售執行力感到興奮，並相信隨著這些銷售專業人員的全面排名，我們將在 2024 年帶來紅利。我們以美元計算的淨留存率較上一季下降了 1%，降至 115%。我們的毛利率再次達到 78.9%，高於我們 75% 至 77% 的長期目標，高於上季的 78.7%。

We delivered an operating profit of $39.8 million, representing an operating margin of 11%. We also meaningfully outperformed on free cash flow generating $50.7 million during the quarter and approximately $120 million in free cash flow for the year. I'm proud of our team for their continued execution. The machine that underlies Cloudflare is firing efficiently on all cylinders, and we've been able to execute even as the macro environment remains choppy.

我們實現營業利潤 3,980 萬美元，營業利益率為 11%。我們的自由現金流也顯著優於其他公司，本季產生了 5,070 萬美元的自由現金流，全年產生了約 1.2 億美元的自由現金流。我為我們團隊的持續執行力感到自豪。 Cloudflare 背後的機器正在全速高效運轉，即使宏觀環境仍然不穩定，我們也能夠執行。

Key to that execution has been improvement in our go-to-market efforts. 15 months ago, we brought on Marc Boroditsky to execute effectively a turnaround of Cloudflare's go-to-market team. At the time, we had enterprise customers, but we hadn't operationalized repeatedly and consistently landing them. We were also suffering from a COVID hangover and like much of the industry, have been flat on performance management. Marc changed all that. He's brought in the process and discipline we needed to be world-class in sales the same way we already were in product and engineering. It's hard to be turned-around-guy, and we owe Marc a huge debt of gratitude for playing that role.

執行的關鍵是改善我們的市場推廣工作。 15 個月前，我們聘請了 Marc Boroditsky 來有效執行 Cloudflare 上市團隊的轉型。當時我們有企業客戶，但我們沒有反覆營運並持續獲得他們。我們也遭受了新冠病毒後遺症的困擾，並且像行業中的許多公司一樣，我們的績效管理一直表現平平。馬克改變了這一切。他引入了我們在銷售方面達到世界一流水平所需的流程和紀律，就像我們在產品和工程方面已經做到的那樣。成為一個扭轉局面的人是很困難的，我們欠馬克一個巨大的感激之情，因為他扮演了這個角色。

But there's someone we always whispered about as our ideal go-to-market leader if we could ever have him as a full-time member of our team, Mark Anderson. He built Palo Alto Networks' world-class sales organization into the machine it is today. He has an incredible domain expertise and contacts in our industry. He's one of the great B2B sale software leaders. And as we were getting ready to go public, we couldn't quite commence him to run our go-to-market org, but we did the next best day, inviting him to join our Board. Over the last 4 years, we've gotten to know each other on Cloudflare's Board. From there, he's provided invaluable counsel to me, Michelle and our go-to market leaders.

但是，如果我們能讓他成為我們團隊的全職成員，我們總是私下談論一個人，他是我們理想的行銷領導者，他就是馬克安德森 (Mark Anderson)。他將 Palo Alto Networks 世界級的銷售組織融入了今天的機器中。他在我們的行業中擁有令人難以置信的領域專業知識和聯繫。他是偉大的 B2B 銷售軟體領導者之一。當我們準備上市時，我們無法完全讓他來管理我們的上市組織，但我們做了第二天最好的事情，邀請他加入我們的董事會。在過去 4 年裡，我們在 Cloudflare 董事會上互相了解。從那時起，他為我、米歇爾和我們的市場領導者提供了寶貴的建議。

And so after Alteryx, the company he's been running as CEO agreed to go private, he reached out and asked whether we'd be interested in not just having him as a coach, but also a player on the field, rolling up his sleeves and getting back to what he's best at. Running a world-class go-to-market organization, selling great products and delivering incredible value and support to customers. Given the deep relationship and trust we developed and his expertise and leadership in our field it was as close to a no-brainer, as I can remember in a long time.

因此，在他作為首席執行官運營的 Alteryx 公司同意私有化之後，他主動詢問我們是否有興趣不僅讓他擔任教練，還讓他成為場上的球員，捲起袖子，回到他最擅長的事情。經營世界一流的行銷組織，銷售優質產品並為客戶提供令人難以置信的價值和支援。考慮到我們之間建立的深厚關係和信任，以及他在我們領域的專業知識和領導力，這是我很長一段時間以來記憶中最簡單的事情。

I wanted to invite Mark Anderson to the call to say a few words. Mark?

我想邀請馬克安德森參加電話會議並說幾句話。標記？

Thank you, Matthew. I've had the privilege to work closely with the great leadership team here at Cloudflare in my role as a member of the Board of Directors for the last 4.5 years, and I've been amazed, not at just what Cloudflare has accomplished to date, but more importantly, how the market is increasingly moving towards Cloudflare is already uniquely positioned.

謝謝你，馬修。在過去 4.5 年裡，我擔任董事會成員，有幸與 Cloudflare 優秀的領導團隊密切合作，我感到驚訝的不僅僅是 Cloudflare 迄今為止所取得的成就但更重要的是，市場如何日益轉向Cloudflare 已經具有獨特的定位。

The time to capitalize on these major technology shifts is now. When I start to think about where I could make the most impact during the next stage of my career. I reached out to Matthew and Michelle to see if I can help elevate Cloudflare's go-to-market organization to the next level. Operationalizing productivity at scale at Cloudflare will involve; one, augmenting foundational systems and tools that are already in place with the framework of execution that applies discipline and rigor to all that we do for customers; and two, bringing on more stage appropriate talent to blend with our amazing sales team to best capture the massive market opportunity ahead of us.

現在正是利用這些重大技術變革的時候。當我開始思考在職業生涯的下一階段我可以在哪裡產生最大影響。我聯繫了 Matthew 和 Michelle，看看我是否可以幫助將 Cloudflare 的上市組織提升到一個新的水平。 Cloudflare 大規模提高生產力將涉及：第一，透過執行框架增強現有的基礎系統和工具，將紀律和嚴格性應用於我們為客戶所做的一切；第二，引進更多適合舞台的人才與我們出色的銷售團隊融合，以最好地抓住我們面前的巨大市場機會。

We all agree that my skill set and experience building and enabling world-class go-to-market organization matched perfectly with Cloudflare to further accelerate its next stage of growth at scale. And I'm extremely excited to work together with Matthew, Michelle and all of my fellow Cloudflare-ians to make Cloudflare one of the most iconic technology companies in the history of the industry.

我們都同意，我在建立和支援世界級上市組織方面的技能和經驗與 Cloudflare 完美匹配，可進一步加速其下一階段的規模成長。我非常高興能夠與 Matthew、Michelle 以及所有 Cloudflare 同事合作，使 Cloudflare 成為業界歷史上最具標誌性的科技公司之一。

Thanks, Mark. I want to again thank Marc Boroditsky for getting us to this place. We couldn't have done it without him. He will continue to be an adviser to Cloudflare for the next several months to make sure Mark Anderson is set up for success. He will always be part of the Cloudflare team, and I'm excited to hear what challenges he takes on next.

謝謝，馬克。我想再次感謝 Marc Boroditsky 讓我們來到這個地方。沒有他我們不可能做到這一點。在接下來的幾個月裡，他將繼續擔任 Cloudflare 的顧問，以確保 Mark Anderson 為成功做好準備。他將永遠是 Cloudflare 團隊的一員，我很高興聽到他接下來將面臨哪些挑戰。

I also wanted to take this time to reaffirm that Michelle and I aren't going anywhere or changing our roles in any way. I wake up every morning more excited about the opportunities now to fulfill our mission of helping build a better internet. If you study the iconic technology companies, they are often mission-driven, founder-led but include a dynamic and evolving leadership team surrounding the founders who bring a wealth of experience for each stage of the company's journey. That a leader like Mark Anderson can get to know us over the last 4 years from his seat on our Board and then choose to join our team standing side-by-side with the other senior team we have assembled gives me confidence that we're on a path to being one of the iconic technology companies ourselves. We're not there yet, though I'm not satisfied, and I remain fully committed to that journey. With that, let me walk through some of the customer wins we had in the quarter.

我還想藉此機會重申米歇爾和我不會去任何地方或以任何方式改變我們的角色。每天早上醒來，我都對現在有機會履行我們幫助建立更好的互聯網的使命感到更加興奮。如果你研究標誌性的科技公司，你會發現它們通常是使命驅動的、由創始人領導的，但在創始人周圍有一個充滿活力、不斷發展的領導團隊，他們為公司發展的每個階段帶來了豐富的經驗。像馬克安德森這樣的領導者可以在過去 4 年裡從董事會席位上了解我們，然後選擇加入我們的團隊，與我們組建的其他高級團隊並肩作戰，這讓我相信我們正在努力成為標誌性科技公司之一。儘管我並不滿意，但我們還沒有到達那一步，但我仍然完全致力於這趟旅程。接下來，讓我介紹一下我們在本季贏得的一些客戶。

We were awarded a 3-year contract with a ceiling value of $33 million for the U.S. Department of Commerce which will be deploying services across our SASE application performance and security solutions. We believe deals like this validate the criticality of converging application performance, security, network and Zero Trust services on a unified platform and how Cloudflare can deliver a comprehensive, commercially off-the-shelf platform from a single vendor as compared with numerous point product competitors.

我們獲得了美國商務部為期 3 年、最高價值 3300 萬美元的合同，該合約將在我們的 SASE 應用程式效能和安全解決方案中部署服務。我們相信，此類交易驗證了在統一平台上整合應用程式效能、安全性、網路和零信任服務的重要性，以及與眾多單點產品競爭對手相比，Cloudflare 如何從單一供應商提供全面的商業現成平台。

A leading technology company, expanded their relationship with Cloudflare, signing a 3-year, $6.6 million contract for Cloudflare's Zero Trust suite to protect access for 10,000 employees and contractors. Given the company's highly complex and secure environment, implementing a first-generation Zero Trust vendor proved to be a challenge. The company had done a Zero Trust RFP a year prior, but when they reviewed Cloudflare's Zero Trust solution again, they were impressed by our significant progress in innovation. Not only was our rate of innovation a key differentiator, but with Cloudflare, they are able to simplify and consolidate Zero Trust application performance and security all on a single platform.

一家領先的技術公司擴大了與 Cloudflare 的關係，簽署了一份為期 3 年、價值 660 萬美元的 Cloudflare 零信任套件合同，以保護 10,000 名員工和承包商的訪問。鑑於公司高度複雜且安全的環境，實施第一代零信任供應商被證明是一項挑戰。該公司一年前完成了零信任 RFP，但當他們再次審查 Cloudflare 的零信任解決方案時，我們在創新方面的重大進展給他們留下了深刻的印象。我們的創新速度不僅是關鍵的差異化因素，而且借助 Cloudflare，他們能夠在單一平台上簡化和整合零信任應用程式效能和安全性。

A Fortune 500 hospitality company expanded their relationship with Cloudflare, signing a 5-year, $4.3 million contract for 20,000 Zero Trust seats. The company approached us 15 months ago with a basic Zero Trust use case. The scope quickly expanded from one to several as this company sought to re-architect their entire Zero Trust approach. The lack of platform integration and the absence of strategic vision from their incumbent vendors, including a first-generation Zero Trust competitor, led them to Cloudflare for our easy-to-use comprehensive platform with a cloud-first architecture. Although performance improvement was not an important consideration early on, after a 6-month paid pilot, the team was blown away by how much improvement they saw with Cloudflare are stating, "Holy bleep, I've never seen Zero go this fast."

一家財富 500 強酒店公司擴大了與 Cloudflare 的關係，簽署了一份為期 5 年、價值 430 萬美元的合同，提供 20,000 個零信任席位。該公司於 15 個月前與我們接洽，提出了一個基本的零信任用例。隨著該公司尋求重新建構整個零信任方法，範圍迅速從一個擴展到多個。由於缺乏平台整合以及現有供應商（包括第一代零信任競爭對手）缺乏策略願景，他們選擇了 Cloudflare，因為我們採用雲端優先架構，提供易於使用的綜合平台。儘管效能改進在早期並不是一個重要的考慮因素，但經過6 個月的付費試點後，團隊對Cloudflare 所看到的巨大改進感到震驚，他們說：「天哪，我從來沒有見過Zero 跑得這麼快。”

A sophisticated tech company with one of the technical and daring engineering teams signed a 2-year, $646,000 contract. The company had recently experienced a breach, driving them to increase their security posture and adopt a Zero Trust approach. This company considered nearly every relevant vendor in the market, over 13 in total, and Cloudflare and one other competitor was selected for a proof-of-concept and 30-day pilot. After just 14 days, Cloudflare was fully configured and completed all success criteria, whereas our competitor was unable to get off the ground. The ease of deployment was key for this company who needed to design a solution in a very complex environment with Cloudflare, everything worked out of the box.

一家尖端科技公司與一支技術精湛且大膽的工程團隊簽署了一份為期 2 年、價值 646,000 美元的合約。該公司最近經歷了一次漏洞，促使他們加強安全態勢並採用零信任方法。該公司考慮了市場上幾乎所有相關供應商，總共超過 13 個，並選擇 Cloudflare 和另一家競爭對手進行概念驗證和為期 30 天的試點。在短短 14 天后，Cloudflare 已完全配置並完成了所有成功標準，而我們的競爭對手卻無法起步。對於這家需要在非常複雜的環境中使用 Cloudflare 設計解決方案的公司來說，部署的簡單性是關鍵，一切都是開箱即用的。

A Fortune 500 technology company signed a 2-year $6 million contract for advanced application security. The company was experiencing an increased DDoS attacks that a large hyperscale public cloud was unable to mitigate. These unmitigated attacks created significant latency resulting in a loss of traffic and potential revenue. They view Cloudflare as the leading expert in DDoS mitigation based on our HCV-2 (sic) [HTTP/2] Rapid Reset publication and the compatibility of our Layer 7 security bundle with their self-hosted technology and public cloud vendors made Cloudflare an easy choice. It's just the beginning with this customer.

一家財富 500 強科技公司簽署了一份為期 2 年、價值 600 萬美元的高級應用程式安全合約。該公司正經歷越來越多的 DDoS 攻擊，大型超大規模公有雲無法緩解。這些徹底的攻擊造成了嚴重的延遲，導致流量和潛在收入的損失。他們將Cloudflare 視為基於我們的HCV-2（原文如此）[HTTP/2] Rapid Reset 出版物的DDoS 緩解方面的領先專家，並且我們的第7 層安全捆綁包與他們的自託管技術和公共雲供應商的相容性使Cloudflare 成為簡單的解決方案選擇。對這位客戶來說，這只是一個開始。

A large U.S. commercial airline expanded their relationship with Cloudflare signing a 2-year $857,000 contract to procure Zero Trust seats. A great land-and-expand example. This is the third deal we've done with this customer in 2023 as they undergo a digital transformation project. They're using our full Zero Trust suite along with application services. They love our unified network, single pane of glass and speed of implementation. A fourth deal with them is already on the horizon.

美國一家大型商業航空公司擴大了與 Cloudflare 的關係，簽署了一份為期 2 年、價值 857,000 美元的合約來採購零信任席位。一個很好的土地和擴張的例子。這是我們在 2023 年與該客戶達成的第三筆交易，因為他們正在進行數位轉型專案。他們正在使用我們完整的零信任套件以及應用程式服務。他們喜歡我們的統一網路、單一管理平台和實施速度。與他們的第四筆交易已經迫在眉睫。

A local government authority in the U.K. signed a 5-year, $2.1 million contract for 4,700 Zero Trust seats. The government authority was pursuing a very large digital transformation project to modernize and improve security posture with a complete network refresh and the adoption of Zero Trust. Following a 3-year engagement process, the authority was evaluating 2 competing Zero Trust vendors. Cloudflare entered the process in the late stages. Cloudflare One was selected as the core component of their modernization program due to our ease of use, seamless integration and expansive platform with a single control plane. In their words, "Cloudflare is easy, it just works."

英國一家地方政府機構簽署了一份為期 5 年、價值 210 萬美元的合同，涉及 4,700 個零信任席位。政府當局正在實施一個非常大型的數位轉型項目，透過全面的網路更新和採用零信任來現代化並改善安全狀況。經過 3 年的參與過程，該機構正在評估 2 個相互競爭的零信任供應商。 Cloudflare 在後期階段進入了這個流程。 Cloudflare One 因其易用性、無縫整合和具有單一控制平面的擴展平台而被選為其現代化計劃的核心組件。用他們的話來說，“Cloudflare 很簡單，而且很有效。”

These days, no earnings conference would be complete without an update on AI. As of the end of 2023, we deployed GPUs in 120 cities globally, meaningfully ahead of our target of 100 cities. By the end of 2024, we plan to have inference tuned GPUs deployed in nearly every city that makes up Cloudflare's global network and within milliseconds of nearly every device connected to the Internet worldwide. The breadth and potential impact of the use cases we are seeing with Workers AI are extraordinary. And we're super excited about the opportunity to establish Workers AI server-less model built on Cloudflare's trusted global network as the best infrastructure for running AI inference tasks.

如今，如果沒有人工智慧的最新進展，任何財報會議都是不完整的。截至 2023 年底，我們在全球 120 個城市部署了 GPU，大大提前了 100 個城市的目標。到 2024 年底，我們計劃在構成 Cloudflare 全球網路的幾乎每個城市以及全球幾乎所有連接到互聯網的設備上部署幾毫秒內的推理調整 GPU。我們所看到的 Workers AI 用例的廣度和潛在影響是非凡的。我們非常高興有機會在 Cloudflare 值得信賴的全球網路上建立 Workers AI 無伺服器模型，作為運行 AI 推理任務的最佳基礎設施。

From our launch in September to the month of December, the average number of daily Workers AI request increased 9x. Furthermore, 1/3 of the thousands of Workers AI accounts are new to the Workers platform, suggesting that Workers AI is not just significant opportunity in and of itself, but also a potential accelerant to adoption of the Workers overall platform.

從 9 月推出到 12 月，每日 Workers AI 請求的平均數量增加了 9 倍。此外，數千個 Workers AI 帳戶中有 1/3 是 Workers 平台的新用戶，這表明 Workers AI 本身不僅是一個重大機遇，而且還是採用 Workers 整體平台的潛在促進劑。

Inference, however, is only part of the AI equation. We are also extremely encouraged by the interest in Vectorize, our vector database which makes it easy, fast and affordable to index and store vectors to support use cases that require access not just to running models, but customized data, too. As well as AI Gateway, which gives organizations the tool to cash, rate limit and observe their AI demands regardless of where they're running. AI on Workers platform is just getting started, and there are exciting things on the roadmap that we look forward to sharing with you in the not-so-distant future.

然而，推理只是人工智慧方程式的一部分。我們對 Vectorize 的興趣也深受鼓舞，我們的向量資料庫可以輕鬆、快速且經濟實惠地索引和儲存向量，以支援不僅需要存取正在運行的模型，還需要存取客製化資料的用例。還有人工智慧網關，它為組織提供了兌現、速率限制和觀察其人工智慧需求的工具，無論他們在哪裡運作。 Workers 平台上的人工智慧才剛開始，路線圖上有一些令人興奮的事情，我們期待在不久的將來與您分享。

As I reflect back on the last quarter, I'm proud of our team. It feels like we're once again firing on all cylinders, but a quarter is only one data point. As we talked about throughout the last year, the macro environment remains challenging. IT buyers are still skittish. The world is not getting any less complicated. And as a company, we still have a ton of proof. Those were the dominant themes of 2023, and I think it's likely that will remain the themes of 2024. So while I'm encouraged by our results, we need to remain prudent and focused on disciplined execution, building and improving our team, delivering exceptional value to our customers and solving some of the hardest engineering challenges the internet faces.

當我回顧上個季度時，我為我們的團隊感到自豪。感覺就像我們再次全力以赴，但四分之一隻是一個數據點。正如我們去年所談到的，宏觀環境仍然充滿挑戰。 IT 買家仍心存疑慮。世界並沒有變得更加複雜。作為一家公司，我們仍然有大量證據。這些是2023 年的主導主題，我認為這很可能仍然是2024 年的主題。因此，雖然我對我們的結果感到鼓舞，但我們需要保持謹慎並專注於紀律執行、建立和改進我們的團隊、提供卓越的服務為我們的客戶創造價值，並解決網路面臨的一些最困難的工程挑戰。

With that, I'll hand it over to Thomas to walk through our financials. Thomas, take it away.

接下來，我將把它交給托馬斯來詳細介紹我們的財務狀況。湯瑪斯，把它拿走。

Thank you, Matthew, and thank you to everyone for joining us. I want to take a moment to welcome Mark Anderson to the Cloudflare team too. Mark, we're incredibly excited to have you on board to further accelerate our next phase of growth at Cloudflare.

謝謝你，馬修，也謝謝大家加入我們。我也想花一點時間歡迎 Mark Anderson 加入 Cloudflare 團隊。 Mark，我們非常高興您能加入，進一步加速 Cloudflare 下一階段的發展。

Turning to our financial results. I'm pleased to share that the positive momentum from our focus on refining our go-to-market strategies and operations continued during the fourth quarter. As Matthew mentioned earlier, pipeline close rates, sales productivity, average deal size and linearity all improved compared with last quarter. Strength in our business this quarter was driven by robust momentum with large customers, significant progress in the public sector and growth in Cloudflare One, including the largest new customer win in the company's history with a contract ceiling value of $33 million.

轉向我們的財務表現。我很高興與大家分享，我們專注於完善市場策略和營運的積極勢頭在第四季度持續存在。正如馬修之前提到的，與上季相比，管道成交率、銷售生產力、平均交易規模和線性度均有所改善。我們本季的業務實力得益於大客戶的強勁勢頭、公共部門的重大進展以及 Cloudflare One 的增長，其中包括公司歷史上最大的新客戶贏得，合約上限價值為 3300 萬美元。

Importantly, we also continue to maintain our strong commitment to being fiscally responsible and act as good stewards of investor's capital. Operating profit increased nearly 2.5x year-over-year and we significantly outperformed on free cash flow, generating a record $50.7 million during the fourth quarter.

重要的是，我們也繼續恪守對財務負責的堅定承諾，並充當投資者資本的良好管理者。營業利潤年增近 2.5 倍，我們的自由現金流表現顯著優於其他公司，第四季創造了創紀錄的 5,070 萬美元。

Turning to revenue. Total revenue for the fourth quarter increased 32% year-over-year to $362.5 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 38% year-over-year. APAC represented 13% of revenue and increased 25% year-over-year.

轉向收入。第四季總營收年增 32% 至 3.625 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 38%。亞太地區佔營收的 13%，年增 25%。

Turning to our customer metrics. In the fourth quarter, we had 189,791 paying customers representing an addition of roughly 27,700 paying customers in 2023 and an increase of 17% year-over-year. We were pleased to see revenue contribution from large customers during the quarter increased again to 66% of revenue from 63% in the fourth quarter last year. For fiscal 2023, revenue from large customers represented 64% of total revenue compared to 61% in 2022 and 54% in 2021.

轉向我們的客戶指標。第四季度，我們擁有 189,791 名付費客戶，較 2023 年增加約 27,700 名付費客戶，較去年同期成長 17%。我們很高興看到本季大客戶的營收貢獻再次從去年第四季的 63% 上升至 66%。 2023財年，來自大客戶的收入佔總營收的64%，而2022年為61%，2021年為54%。

As Matthew referenced earlier, we added a record number of net new customers spending more than $500,000 and $1 million on an annualized basis with Cloudflare. For the full year, we ended the year with 346 customers that spend over $500,000 with us, a 56% increase year-over-year, and we ended the year with 118 customers that spent over $1 million with us, a 39% increase year-over-year. We also exited 2023 with 3 customers spending at least $20 million on an annualized basis with Cloudflare. One of which signed the largest total contract value renewal agreement in our company's history of $60 million in the fourth quarter.

正如 Matthew 之前提到的，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下了紀錄。就全年而言，我們年底有 346 名客戶在我們這裡消費超過 50 萬美元，年增 56%；年底我們有 118 名客戶在我們這裡消費超過 100 萬美元，同比增長 39% -同比。 2023 年結束時，我們還有 3 位客戶在 Cloudflare 上的年支出至少為 2,000 萬美元。其中之一在第四季度簽署了我們公司歷史上最大的總合約價值續約協議，達 6000 萬美元。

Our dollar-based net retention rate was 115% during the fourth quarter representing a decrease of 1-percentage-point sequentially. As we mentioned last quarter, there can be some variability in this metric quarter-to-quarter, but we continue to believe the prior decelerating trend in DNR is stabilizing near these levels.

第四季度，我們以美元計算的淨保留率為 115%，比上一季下降了 1 個百分點。正如我們上季度所提到的，該指標季度與季度之間可能存在一些變化，但我們仍然認為 DNR 之前的減速趨勢正在穩定在這些水平附近。

Moving to gross margin. Fourth quarter gross margin was 78.9%, representing an increase of 20 basis points sequentially and an increase of 150 basis points year-over-year. Gross margin was 78.3% for fiscal 2023, remaining above our long-term target range of 75% to 77%. Network CapEx represented 8% of revenue in the fourth 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. We expect network CapEx to be 10% to 12% of revenue in fiscal 2024.

轉向毛利率。第四季毛利率為78.9%，季增20個基點，較去年同期成長150個基點。 2023 財年毛利率為 78.3%，仍高於我們 75% 至 77% 的長期目標範圍。網路資本支出佔第四季度收入的 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。我們預計 2024 財年網路資本支出將佔營收的 10% 至 12%。

With the evolution of the composition of our infrastructure, we undertook an assessment of the useful lives of our service and network equipment. In January 2024, we determined that continuous advancements in hardware technology and improvements in our data center designs have increased the efficiency in how we operate our equipment, resulting in the estimated useful lives of these assets extending from 4 to 5 years starting in fiscal 2024. We estimate this change will reduce depreciation by approximately $20 million for fiscal 2024 for assets in service as of December 31, 2023, recorded primarily in the cost of revenue.

隨著我們基礎設施組成的演變，我們對服務和網路設備的使用壽命進行了評估。 2024 年 1 月，我們確定硬體技術的不斷進步和資料中心設計的改進提高了我們操作設備的效率，從而使這些資產的預計使用壽命從 2024 財年開始從 4 年延長到 5 年。我們估計，這項變更將使2024 財年截至2023 年12 月31 日在用資產的折舊減少約2,000 萬美元，主要記錄在收入成本中。

As we discussed previously, we view our margin efficiency as one of Cloudflare's key competitive advantages, and we intend to leverage this opportunity as a strategic weapon to increasingly disrupt markets through continued innovation in our platform and differentiated product packaging.

正如我們之前所討論的，我們將利潤率視為 Cloudflare 的關鍵競爭優勢之一，我們打算利用這一機會作為戰略武器，透過平台的持續創新和差異化的產品包裝來日益擾亂市場。

Turning to operating expenses. Fourth quarter operating expenses as a percentage of revenue decreased by 3% year-over-year to 68%. Our total number of employees increased 14% year-over-year bringing our total headcount to 3,682 at the end of the quarter. We'll continue to pace hiring based on market conditions over the course of fiscal 2024 and remain committed to driving higher productivity and greater efficiency across our operations.

轉向營運費用。第四季營運費用佔營收的比例年減 3%，至 68%。截至本季末，我們的員工總數達到 3,682 人，年增 14%。 2024 財年，我們將繼續根據市場狀況調整招募節奏，並持續致力於提高整個營運部門的生產力和效率。

Sales and marketing expenses were $145.2 million for the quarter. Sales and marketing as a percentage of revenue decreased to 40% from 41% in the same quarter last year. Research and development expenses were $59.5 million in the quarter. R&D as a percentage of revenue decreased to 16% from 18% in the same quarter last year. General and administrative expenses were $41.5 million for the quarter. G&A as a percentage of revenue decreased to 11% from 12% in the same quarter last year.

該季度的銷售和行銷費用為 1.452 億美元。銷售和行銷佔收入的百分比從去年同期的 41% 下降至 40%。該季度的研發費用為 5,950 萬美元。研發佔營收的比例從去年同期的 18% 下降至 16%。該季度的一般及管理費用為 4,150 萬美元。 G&A 佔營收的百分比從去年同期的 12% 下降至 11%。

Operating income was $39.8 million compared to $16.8 million in the same period last year. Fourth quarter operating margin was 11%, an increase of 490 basis points year-over-year. These results highlight our continued focus on becoming more efficient and more productive given that operational excellence is a long-term competitive advantage.

營業收入為 3,980 萬美元，去年同期為 1,680 萬美元。第四季營業利益率為 11%，較去年同期成長 490 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效率和生產力的持續關注。

Turning to net income in the balance sheet. Our income in the quarter was $53.5 million or a dilutive net income per share of $0.15. We ended fourth quarter with $1.7 billion in cash, cash equivalents and available-for-sale securities. Free cash flow was $50.7 million in the fourth quarter or 14% of revenue compared with $33.7 million or 12% of revenue in the same period last year. Remaining performance obligations, or RPO came in at $1.245 billion, representing an increase of 15% sequentially or 37% year-over-year. Current RPO was 73% of total RPO.

轉向資產負債表中的淨利。我們本季的營收為 5,350 萬美元，攤薄每股淨利為 0.15 美元。截至第四季末，我們擁有 17 億美元的現金、現金等價物和可供出售證券。第四季自由現金流為 5,070 萬美元，佔營收的 14%，而去年同期為 3,370 萬美元，佔營收的 12%。剩餘履約義務 (RPO) 為 12.45 億美元，季增 15%，年增 37%。目前 RPO 佔總 RPO 的 73%。

Moving to guidance for the first quarter and full year 2024. We are encouraged by the progress we delivered during the fourth quarter in terms of improving close rates and productivity metrics. However, mixed macroeconomic data points serve as a reminder that we are operating in a business environment that also showing signs of improving exiting 2023, continues to be challenging to predict. As a result, we remain prudent in our outlook for 2024, and we are fully committed to continuing to adapt our tactics and strategies in response to any positive or negative external variables just as we did in 2023.

轉向 2024 年第一季和全年的指導。我們對第四季度在提高成交率和生產力指標方面取得的進展感到鼓舞。然而，好壞參半的宏觀經濟數據提醒我們，我們所處的商業環境在 2023 年也顯示出改善的跡象，但預測仍然具有挑戰性。因此，我們對 2024 年的前景保持審慎態度，並且我們完全致力於像 2023 年一樣，繼續調整我們的策略和策略，以應對任何積極或消極的外部變數。

Now turning to guidance. For the first quarter, we expect revenue in the range of $372.5 million to $373.5 million, representing an increase of 28% to 29% year-over-year. We expect operating income in the range of $34 million to $35 million, and we expect an effective tax rate of 11%. We expect diluted net income per share of $0.13, assuming approximately 356 million shares outstanding.

現在轉向指導。我們預計第一季營收在 3.725 億美元至 3.735 億美元之間，年增 28% 至 29%。我們預計營業收入在 3,400 萬美元至 3,500 萬美元之間，有效稅率為 11%。假設流通股數量約為 3.56 億股，我們預計稀釋後每股淨利為 0.13 美元。

For the full year 2024, we expect revenue in the range of $1.648 billion to $ 1.652 billion, representing an increase of 27% year-over-year. We anticipate the weighting of revenue in the first half versus second half of 2024 to be similar to 2023. We expect operating income for the full year in the range of $154 million to $158 million. We expect an effective tax rate of 11% for 2024, and we expect diluted net income per share over that period to be $0.58 to $0.59, assuming approximately 358 million shares outstanding.

2024年全年，我們預計營收在16.48億美元至16.52億美元之間，年增27%。我們預計 2024 年上半年和下半年的收入權重將與 2023 年類似。我們預計全年營業收入在 1.54 億美元至 1.58 億美元之間。我們預計 2024 年的有效稅率為 11%，假設流通股數量約為 3.58 億股，我們預計該期間的攤薄每股淨利潤為 0.58 至 0.59 美元。

After having achieved significant free cash flow of approximately $120 million in 2023, we expect free cash flow to be relatively consistent with operating profit for the full year 2024. With the first half lower and the second half higher compared with operating profit.

在 2023 年實現約 1.2 億美元的可觀自由現金流後，我們預計自由現金流將與 2024 年全年的營業利潤相對一致。與營業利潤相比，上半年較低，下半年較高。

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, transforming and securing the 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，以及客戶對我們的信任，感謝我們幫助他們解決業務現代化、轉型和安全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 Brent Thill with Jefferies.

（操作員說明）您的第一個問題來自 Jefferies 的 Brent Thill。

Matthew, it seems like there's a confluence of factors that led to your outperformance. I was wondering if you could just unpack a little bit deeper in terms of some of the common themes. I know you mentioned enterprise strength, but what else are you seeing that's leading to this magnitude of outperformance?

馬修，看來是多種因素共同導致了你的出色表現。我想知道您是否可以更深入地了解一些常見主題。我知道您提到了企業實力，但是您還看到了什麼導致如此出色的表現？

Yes. Thanks, Brent. I think the first thing really is what we talked about on the call, which is just a real focus on go-to-market excellence and I think Marc Boroditsky, who really worked hand in hand with Mark Anderson on our Board, have done a great job over the last 15 months of really focusing on how we make sure that we're as great in go-to-market as we have been in product and engineering. And I think that's the biggest thing to point out.

是的。謝謝，布倫特。我認為第一件事確實是我們在電話會議上討論的內容，這只是真正關注進入市場的卓越性，我認為馬克·博羅迪茨基（Marc Boroditsky）與我們董事會的馬克·安德森（Mark Anderson ）真正攜手合作，做了一個過去 15 個月的工作非常出色，我們真正專注於如何確保我們在產品和工程方面同樣出色地進入市場。我認為這是最需要指出的。

I think the second thing is that we've really seen strength in our Zero Trust and SASE products. Some of the biggest wins that we saw in the quarter were big Zero Trust deals. And I think that those products have caught up significantly. And you'll see in the analyst -- the industry analyst reports and others that we're very quickly becoming one of the real leaders in that space. And I think over time, we will surpass many of the first-generation Zero Trust vendors and that really opens up another leg on the stool.

我認為第二件事是我們確實看到了零信任和 SASE 產品的優勢。我們在本季看到的一些最大的勝利是大型零信任交易。我認為這些產品已經顯著迎頭趕上。您會在分析師、產業分析師報告和其他人的報告中看到，我們很快就會成為該領域真正的領導者之一。我認為隨著時間的推移，我們將超越許多第一代零信任供應商，這確實開闢了另一條腿。

And then lastly, I just continue to be really astonished by the rate at which our developer platform is growing. AI is not yet contributing materially to revenue. But it has contributed materially to developer excitement over the platform. And we're seeing more and more large deals, more and more interesting applications coming in using the Workers platform and that has gone well as well. So I think operational excellence in go-to-market, I think that really strength around our Zero Trust products and then just continued outperformance on our developer platform. And those things all came together in Q4 of 2023.

最後，我仍然對我們的開發者平台的成長速度感到驚訝。人工智慧尚未對收入做出實質貢獻。但它極大地激發了開發者對該平台的興趣。我們看到越來越多的大型交易、越來越多有趣的應用程式使用 Workers 平台，一切進展順利。因此，我認為在進入市場方面的卓越運營，我認為圍繞我們的零信任產品的真正優勢，以及我們在開發人員平台上的持續出色表現。這些事情在 2023 年第四季全部實現。

Your next question comes from Matt Hedberg with RBC Capital Markets.

您的下一個問題來自加拿大皇家銀行資本市場的 Matt Hedberg。

A great hire in Mark Anderson. I realize it's fresh -- still fresh, and Matthew, you talked a little bit on the call about what he's going to be focused on. But I guess maybe just I wanted to double click on that. Are there some specific sales processes or partner motion that you think Mark is going to be focused on to really drive that next level of enterprise growth? And maybe could you talk about overall rep productivity, which I know has been a big focus for you all over the last year.

馬克·安德森是個很棒的員工。我意識到這很新鮮——仍然新鮮，馬修，你在電話會議上談到了他將關注的重點。但我想也許只是我想雙擊它。您認為馬克是否會專注於一些特定的銷售流程或合作夥伴動議，以真正推動企業下一階段的發展？也許您可以談談代表的整體生產力，我知道這一直是您去年的焦點。

Sure. Matt, I appreciate it. So first of all, I think working with Mark Anderson has been a big piece behind the scenes of the improvements that we've seen in the go-to-market performance that we've had so far. And so his, as a Board member, his hands have been involved in a lot of the strategic decisions we've made, a lot of the focus that we've made. And so I think this is less of a radical change in terms of the strategy, and it's more of a continuation of what we have done.

當然。馬特，我很感激。首先，我認為與馬克安德森的合作是我們迄今為止在上市表現方面取得的進步的幕後重要組成部分。因此，作為董事會成員，他參與了我們所製定的許多策略決策和我們制定的許多重點。因此，我認為這並不是策略上的徹底改變，而是我們所做工作的延續。

That said, I think that the thing which Mark brings, which is unique and as we thought of who would be our ideal sales leader, and we really started thinking about that before we went public. Mark was top of the list because of the domain expertise, because of the relationships that he has, because of the trust that he's built in the industry. And because of the other sales professionals that really have worked with him and want to follow him and have their own, again, expertise and relationships in the industry as well. And so I think that Mark Anderson will continue a lot of what Marc Boroditsky has done, continue to professionalize our organization, continue to move up market, continue to really focus on rep productivity, focus on making sure that we have all of the right training, all of the right ramping resources that reps need focused on making sure that our sales process is as efficient as possible. And I think that will be a big piece of what he is delivering.

也就是說，我認為馬克帶來的東西是獨一無二的，當我們想到誰會是我們理想的銷售領導者時，我們在上市之前就真正開始考慮這一點。馬克之所以名列榜首，是因為他擁有領域專業知識、他所擁有的人際關係、以及他在業界建立的信任。因為其他真正與他共事過的銷售專業人士希望追隨他，並且在業界也擁有自己的專業知識和關係。因此，我認為馬克安德森將繼續馬克博羅迪茨基所做的很多事情，繼續使我們的組織專業化，繼續提升市場，繼續真正專注於代表生產力，專注於確保我們擁有所有正確的培訓，銷售代表所需的所有正確的成長資源都集中在確保我們的銷售流程盡可能有效率。我認為這將是他所交付的重要內容。

I think if you zoom out from that, the other thing which is a big initiative for us is just looking at our overall platform and saying, how can we make it actually much easier, not only for our internal team to sell but also for partners to sell as well. Right now, we have a ton of different products. And I think bringing that together and finding ways to really make those products, not just individual products, but as a platform and an overall platform that's where we tend to win is when people buy that overall platform. And that's where there really isn't a ton of competition when people are comparing the total platform that Cloudflare offers versus anyone else in the space.

我認為，如果你把目光放遠一點，對我們來說另一項重大舉措就是審視我們的整體平台，並說，我們怎樣才能讓它變得更容易，不僅是為了我們的內部團隊銷售，也是為了合作夥伴也可以出售。現在，我們有大量不同的產品。我認為，將這些整合在一起，找到真正製造這些產品的方法，不僅僅是單一產品，而是作為一個平台和整體平台，當人們購買整個平台時，我們往往會獲勝。當人們將 Cloudflare 提供的整體平台與該領域的其他任何人進行比較時，這實際上並沒有太多競爭。

We are able to deliver a much more robust network security, performance, reliability package than any other vendor that's in that space. And I think Mark helps us deliver that and continue again on some of the great work that Mark Boroditsky had started and really set them up for success.

我們能夠提供比該領域任何其他供應商更強大的網路安全性、效能和可靠性套件。我認為馬克幫助我們實現了這一目標，並再次繼續馬克·博羅迪茨基已經開始​​的一些偉大工作，並真正為他們的成功奠定了基礎。

Great color. If I can ask one follow-up to Thomas. Your guide for '24 revenue, I think calls for about 600 basis points of deceleration. Obviously, you talked about a lot of positive sequentially, but also some of the caution that you still have about the macro. Just wondering if you could unpack a little bit more some of the assumptions there. I think you noted maybe NRR might be nearing a bottom. But just what's built into that in terms of like logo adds, maybe an improvement in NRR, but just sort of unpack that a little bit more.

顏色很棒。如果我可以詢問托馬斯的後續情況。我認為你的 24 年收入指南要求減速約 600 個基點。顯然，您依次談到了很多積極的因素，但也談到了您對宏觀經濟仍然抱持的一些謹慎態度。只是想知道您是否可以進一步解釋其中的一些假設。我想您已經注意到 NRR 可能已接近底部。但是，就徽標添加而言，也許是 NRR 的改進，但只是稍微展開一點。

Yes. Obviously, we had a very good fourth quarter with a lot of good data points, pointing in the right direction. The improvement that Matthew was talking about on the go-to-market side. Not only in terms of productivity, but pipeline improved, the deal size has improved and linearity went better. We also saw their best quarter-over-quarter improvement from an RPO perspective. This is all pointing in the right direction.

是的。顯然，我們第四季的表現非常好，有很多好的數據點，指明了正確的方向。馬修所說的進入市場方面的改進。不僅在生產力方面，而且管道也得到了改善，交易規模也有所改善，線性度也變得更好。從 RPO 的角度來看，我們也看到了他們的最佳季度環比改善。這一切都指向正確的方向。

But we still have to cope with the fact that one data point alone is hard to change your prediction and your trajectory. So we are still cautious that everything else that is going on. Matthew mentioned in his part that the big scenes that we saw last year from a macroeconomic perspective, skittishness of buyers and budget releases is continuing. And I think this informed our view for the year. And obviously, we'll adjust our strategy and approach to the year as we have -- unless we collect more data points. But it served us well over the last 4 years as a public company, to look really hard at the data we have and draw the right conclusions from it. And I hope that '24 will get us to the same outcome.

但我們仍然必須面對這樣一個事實：僅憑一個數據點很難改變你的預測和軌跡。因此，我們仍然對正在發生的其他一切保持謹慎態度。馬修在他的部分提到，我們去年從宏觀經濟角度看到的大場面，買家的不安和預算發布仍在繼續。我認為這反映了我們對今年的看法。顯然，我們將按照現有的方式調整我們的策略和方法，除非我們收集更多的數據點。但在過去四年裡，作為一家上市公司，我們認真研究我們擁有的數據並從中得出正確的結論，這對我們很有幫助。我希望 24 週年能讓我們得到同樣的結果。

Your next question comes from the line of Andrew Nowinski with 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 a great quarter. I wanted to start with a question on SASE. So you rattled off about a dozen large Zero Trust deals in your prepared remarks, you're clearly seeing some very strong demand from large customers, which I think coincides with a lot of the feedback we've been hearing about how Cloudflare is having more success penetrating that mid and large enterprise space with your Zero Trust solution. So maybe if you could comment on your sort of secret to success in getting these large deals closed because it seems like it's -- there's more to it than just a maturation of your platform.

恭喜您度過了一個出色的季度。我想從一個關於 SASE 的問題開始。因此，您在準備好的演講中一口氣列出了大約十幾個大型零信任交易，您清楚地看到大客戶的一些非常強烈的需求，我認為這與我們聽到的有關Cloudflare 如何擁有更多的回饋是一致的透過零信任解決方案成功滲透到中型和大型企業領域。因此，也許您可以評論成功完成這些大型交易的秘訣，因為它似乎不僅僅是您平台的成熟。

Yes, Andy. I think that, first of all, the -- we didn't start out as a company that had a Zero Trust platform. And so that's something that was a very natural add-on to our network. We think it's very complementary with the other services that we offer. And I think that as we studied the industry and studied the space, it was clear that this set of solutions ended up squarely in our bailiwick of what it was that we were delivering. And so that -- I think that, that was a very natural place, but we are new to this space.

是的，安迪。我認為，首先，我們一開始並不是一家擁有零信任平台的公司。所以這是我們網路的一個非常自然的附加元件。我們認為它與我們提供的其他服務非常互補。我認為，當我們研究這個行業和這個領域時，很明顯，這套解決方案最終完全符合我們所交付的內容。因此，我認為那是一個非常自然的地方，但我們對這個領域還是新手。

And things take time and especially in the larger buyers, they want validation like Gartner and Forrester and other industry analysts saying that you should be in the consideration set. And so there's a bit of a chicken and egg issue where you have to sort of start to get your first large customers and your early adopters in order for the Gartners and Forresters to put you in consideration. And then from that, you start to build that reputation with the industry analysts, and that gets you in more deals.

事情需要時間，尤其是對於較大的買家來說，他們需要像 Gartner 和 Forrester 以及其他行業分析師那樣的驗證，表示您應該納入考慮範圍。因此，存在著先有雞還是先有蛋的問題，您必須開始吸引第一批大客戶和早期採用者，以便 Gartner 和 Forrester 考慮您。然後，你開始在產業分析師中建立聲譽，這會讓你獲得更多交易。

And what we find is when we're in the consideration set, we're just a next-generation platform, and we're faster, we're more secure, we're more reliable, and we're a better solution for a lot of vendors. And so not only are we winning the greenfield opportunities, but we're increasingly winning opportunities from first-generation Zero Trust vendors where their customers aren't satisfied with the solutions they have and they're moving fully to us.

我們發現，當我們考慮時，我們只是一個下一代平台，我們更快，我們更安全，我們更可靠，我們是更好的解決方案很多供應商。因此，我們不僅贏得了綠地機會，而且越來越多地贏得了第一代零信任供應商的機會，這些供應商的客戶對他們擁有的解決方案不滿意，並且完全轉向我們。

So I think that a lot of it has been just the maturing of our platform, but not to us from a technology perspective, we're pretty good at that, and we have a lot of control of that. But also just from a -- an understanding in the industry that this is something that we offer. An understanding of how the various components of Cloudflare fit well together. And I think that, that's something that becomes itself a flywheel which we expect will continue to deliver success for us in this space over time.

所以我認為這很大程度上只是我們平台的成熟，但從技術角度來看，對我們來說並非如此，我們非常擅長這一點，我們對此有很多控制權。但也只是基於產業內的一種理解，即這是我們提供的東西。了解 Cloudflare 的各個組件如何完美配合。我認為，這本身就是一個飛輪，我們希望隨著時間的推移，飛輪將繼續為我們在這個領域帶來成功。

Sounds like, especially with Mark Anderson joining now as well, too. I want to ask a quick follow-up on Vectorize because I think it's really interesting and how it may potentially be driving growth of R2 as well. From talking to some industry folks, it sounds like customers are starting to recognize how important, a vector database is as it relates to inference and fine-tuning models. But I'm curious, I know it's still early days, but what is the feedback on Vectorize? And are you actually seeing a pull-through or sort of a push to revenue on to R2 as well from that?

聽起來像是，尤其是馬克安德森現在也加入了。我想對 Vectorize 進行快速跟進，因為我認為它非常有趣，它也可能如何推動 R2 的成長。透過與一些行業人士的交談，聽起來客戶開始認識到向量資料庫的重要性，因為它與推理和微調模型相關。但我很好奇，我知道現在還為時過早，但是關於 Vectorize 的回饋是什麼？您是否真的看到了 R2 的拉動或某種程度的收入推動？

Yes. The way that we see, the space in general is we have all of the different components that you need in order to build just a full-featured AI application. And that means supporting as many models as possible and some of the work that we're doing with the major model vendors like (inaudible), the marketplaces like Hugging Face gives us that. We want to have the best place for inference and we think that we're going to be lock in that space, where the sense public clouds are too far away and your device that you're holding in your hand or wearing on your wrist is often -- doesn't have enough power. But where we are sitting in between gives that really incredible place for inference.

是的。在我們看來，總體而言，我們擁有建立功能齊全的人工智慧應用程式所需的所有不同元件。這意味著支援盡可能多的模型，以及我們與主要模型供應商（例如（聽不清楚））所做的一些工作，Hugging Face 等市場為我們提供了這一點。我們希望擁有最好的推理場所，並且我們認為我們將鎖定在那個空間中，在該空間中，感知公有雲距離太遠，並且您握在手中或戴在手腕上的設備距離太遠。經常— —沒有足夠的力量。但我們所處的位置提供了令人難以置信的推理空間。

But then the next step of that is you have to be able to take those models and make them your own. And that's exactly what Vectorize does. It allows you to customize those models and tune them, to fine-tuning around making them your own. And so what's been interesting about that is that being local and having presence all around the world ends up mattering in various places, an example that a customer gave us the other day was that if you have a model and it responds in the United States and it spells colour, C-O-L-O-U-R, it feels very foreign, whereas if it's in the U.K., and has spells as C-O-L-O-R, it also feels very foreign. And so the ability to not just tune models, but tune them locally, while still having the power of beefy GPUs that can then run the inference task. That's a really killer combination.

但下一步是你必須能夠採用這些模型並將它們變成你自己的。這正是 Vectorize 所做的。它允許您自訂這些模型並調整它們，並進行微調，使它們成為您自己的模型。有趣的是，本地化和在世界各地的存在最終在不同的地方都很重要，前幾天一位客戶給我們的一個例子是，如果你有一個模型，它在美國有反應，它拼寫顏色， C-O-L-O-U-R，感覺很陌生，而如果是在英國，拼寫為C-O-L-O-R，也感覺很陌生。因此，不僅能夠調整模型，還能在本地調整它們，同時仍然擁有強大的 GPU 的能力來運行推理任務。這真是一個殺手級的組合。

And as you said, it's built on top of the existing primitives that we have, including R2, which is our object storage space. And so while it's early in the entire AI space, I think we are very well positioned and very strategic. And if you look at things like the various downloads of our libraries, on public open-source repos, they are taking off like crazy. And it is incredibly encouraging, and I think will become a larger and larger part of our business going forward.

正如您所說，它構建在我們現有的基元之上，包括 R2，這是我們的物件儲存空間。因此，雖然整個人工智慧領域還處於早期階段，但我認為我們的定位非常好，而且非常具有戰略意義。如果你看看我們的庫在公共開源儲存庫上的各種下載，你會發現它們正在瘋狂地增長。這是非常令人鼓舞的，我認為這將成為我們未來業務中越來越大的一部分。

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

你的下一個問題來自摩根士丹利的 Hamza Fodderwala。

Maybe just stick on the Edge AI theme, Matthew. I'm just curious, I know it's very early days, but as you deploy these GPUs at all your locations worldwide, how are you feeling from a capacity standpoint, from a CapEx perspective and your ability to meet the demand as some of the sort of inference starts to ramp? And then maybe a follow-up for Thomas, I think variable revenues are a very low percentage of your overall sales. Can you give us any context of how that looks for Q4 relative to Q3?

也許只是堅持邊緣人工智慧主題，馬修。我只是很好奇，我知道現在還為時過早，但是當您在全球所有地點部署這些 GPU 時，從容量的角度、從資本支出的角度以及您滿足某種需求的能力感覺如何推理開始加速？然後也許是托馬斯的後續行動，我認為可變收入佔總銷售額的比例非常低。您能給我們介紹一下第四季相對於第三季的情況嗎？

Yes. So I'll take the first question, and Thomas can take the second. I'll start with AI in a place that you might not expect, which is our success in the Zero Trust market has actually helped empower our ability to invest in the developer platform and especially the AI market.

是的。我將回答第一個問題，托馬斯可以回答第二個問題。我將從人工智慧的一個你可能意想不到的地方開始，那就是我們在零信任市場的成功實際上幫助增強了我們投資開發者平台尤其是人工智慧市場的能力。

To understand that, the nature of how our business works is that every single service that we run is capable of running on every single piece of equipment that's out there. So we don't run a different network for our security products that we do for our performance types. We don't run a different network for the CASB service that we have versus our Access versus our DDoS mitigation, it's all the same machines that are running across that.

要理解這一點，我們業務運作的本質是我們運行的每項服務都能夠在現有的每台設備上運作。因此，我們不會為安全產品運行與效能類型不同的網路。我們沒有為 CASB 服務運行與 Access 和 DDoS 緩解不同的網絡，運行的都是相同的機器。

And so one of the secrets to Cloudflare's success has been that we've been able to always look for places where there is more sort of unused capacity and then effectively act as a giant scheduler in order to make that capacity more productive. And what's been interesting about the Zero Trust base is that the very nature of how that traffic works, where our first-generation services were all reverse proxy services. The traffic was flowing kind of in one direction, whereas our Zero Trust services are all what's called forward proxy services, the traffic is flowing in the other.

因此，Cloudflare 成功的秘訣之一是，我們始終能夠尋找存在更多未使用容量的地方，然後有效地充當巨型調度程序，以使該容量更加高效。零信任基礎的有趣之處在於流量工作的本質，我們的第一代服務都是反向代理服務。流量在一個方向流動，而我們的零信任服務都是所謂的轉送代理服務，流量在另一個方向流動。

But it turns out that you can actually have traffic flow both directions without having additional CapEx cost. And so as a bigger and bigger part of our revenue is the Zero Trust products, it means that it actually frees up CapEx as a percentage of revenue for us to go after other opportunities. And so that's what has freed up us to go after a lot of the AI opportunities that we've had. It has freed up our ability to acquire the GPUs and invest behind the demand that we're seeing.

但事實證明，您實際上可以實現雙向流量，而無需額外的資本支出成本。因此，隨著我們收入中越來越大的部分是零信任產品，這意味著它實際上釋放了佔收入百分比的資本支出，讓我們可以去尋找其他機會。這就是讓我們能夠自由地去追求我們已經擁有的大量人工智慧機會的原因。它釋放了我們獲取 GPU 並根據我們所看到的需求進行投資的能力。

And I feel really good because at core, what we are really good at is running a giant network, as a giant scheduler and then bringing as much efficiency and utilization out of that as possible. And so we have been able to stay ahead of the demand that we've seen for the GPUs and other resources that we need for some of these newer products. And we are complementing that by also adding revenue, which is just much less CapEx efficient because it's much less CapEx intensive and much more CapEx efficient because it's running on top of the same platform. Hopefully, that makes sense. But it really is part of the key to our business. And it's part of why we have the gross margins that we do where some of the other companies that are point solutions only doing one of these things have much worse margin profiles.

我感覺非常好，因為從本質上講，我們真正擅長的是運行一個巨大的網絡，作為一個巨大的調度程序，然後從中盡可能提高效率和利用率。因此，我們能夠領先於我們所看到的一些較新產品所需的 GPU 和其他資源的需求。我們也透過增加收入來補充這一點，這只是資本支出效率低得多，因為它的資本支出密集程度要低得多，而資本支出效率要高得多，因為它在同一平台上運作。希望這是有道理的。但這確實是我們業務的關鍵部分。這也是為什麼我們的毛利率如此之高，而其他一些只做其中一項的點解決方案的公司的利潤率卻差得多。

Before I answer your second question, maybe a bit more color to what Matthew just said. I mean you really could see the inherently efficient architecture of the network in the fourth quarter. Our network CapEx was 8% of revenue in the fourth quarter. And we were ahead of delivery GPU capacity. We were at the 120 cities out of our plan of 100. And the guidance of 10% to 12% of revenue for this year includes a full build-out and bringing GPU capacity into pretty much every location we have. And on top of that, making sure that the network grows with the traffic that we put on our network. So that is, I think, one of the key competitive advantage that we have is the network architecture, and that's just another proof point in the fourth quarter.

在我回答你的第二個問題之前，也許對馬修剛才所說的內容有更多的了解。我的意思是，您確實可以在第四季度看到網路本質上高效的架構。第四季我們的網路資本支出佔收入的 8%。我們已經提前交付了 GPU 容量。我們計劃的 100 個城市中包括 120 個城市。今年收入的 10% 到 12% 的指導包括全面擴建，並將 GPU 容量引入我們擁有的幾乎每個地點。最重要的是，確保網路隨著我們放置在網路上的流量而成長。所以，我認為，我們擁有的關鍵競爭優勢之一是網路架構，這只是第四季的另一個證明點。

Regarding your question on variable revenue, variable revenue in the fourth quarter was a bit higher than it was in the third quarter, but it's still a small percentage of our overall revenue. This will change over time. As our packaging and the offerings we bring to the market will have higher variable components. But for the fourth quarter, it was still a small part of our overall revenue and revenue mix.

關於你關於可變收入的問題，第四季的可變收入比第三季要高一些，但占我們總收入的比例仍然很小。這會隨著時間的推移而改變。由於我們的包裝和我們推向市場的產品將具有更高的可變成分。但就第四季而言，它仍然只占我們整體收入和收入組合的一小部分。

Your next question comes from the line of Jonathan Ho with William Blair.

你的下一個問題來自喬納森·何（Jonathan Ho）和威廉·布萊爾（William Blair）的對話。

Matthew, you mentioned that 1/3 of Workers AI accounts are new to Workers. How could this be potentially an accelerant to your developer platform overall? And could you maybe give us some color on the adoption of Workers in terms of the server-less model by developers relative to competitors?

馬修，你提到 1/3 的 Workers AI 帳戶對於 Workers 來說是新的。這如何可能成為您整體開發者平台的潛在促進劑？您能否給我們一些關於開發人員相對於競爭對手在無伺服器模型方面採用 Workers 的情況？

Yes. It's -- I think that if you study developer platforms, they inherently take some time to really take off and take hold. And it averages about 10 years from when they launch before they seem like they're getting to that. And the reason for that is because of the fact that you need early adopters, those early adopters need to build something, which is a killer app, which people say, "Wow, I couldn't have built that in any other way." Some of the people who are behind that first killer app need to then go on and start other services, other companies, build other things. There's an ecosystem that has to develop around all of that. And that inherently takes some time to take off.

是的。我認為，如果你研究開發者平台，它們本質上需要一些時間才能真正起飛並佔據主導地位。從他們推出之日起，平均需要 10 年左右才能實現這一目標。原因是因為你需要早期採用者，這些早期採用者需要構建一些東西，這是一個殺手級應用程序，人們會說，“哇，我無法以任何其他方式構建它。”第一個殺手級應用程式背後的一些人需要繼續啟動其他服務、其他公司、建立其他東西。必須圍繞所有這些開發一個生態系統。這本質上需要一些時間才能實現。

And developer platforms are adopted. They're not sold. And so again, I think that we've been very excited about the rate at which things have been adopted at Cloudflare for our developer platform, but we've also been realistic that for that developer platform to take off, inherent in how these develop, there is some time. There are a handful of ways that you can have shortcuts. One of those is to attach yourself to other developer ecosystems, which are really robust. And so some of the ways that we are effectively providing the underlying infrastructure for some major other platforms that are out there, a number of the big e-commerce platforms and other things. That helps train developers early on, on how to build with us and again, is one of the shortcuts to get there.

並採用開發者平台。它們沒有被出售。再說一次，我認為我們對 Cloudflare 在我們的開發者平台上採用這些東西的速度感到非常興奮，但我們也很現實地認為，要讓該開發者平台起飛，這些東西的開發方式所固有的，還有一些時間。有幾種方法可以讓您走捷徑。其中之一就是將自己與其他非常強大的開發者生態系統連結起來。因此，我們有效地為其他一些主要平台、一些大型電子商務平台和其他平台提供底層基礎設施的一些方式。這有助於儘早培訓開發人員如何與我們一起構建，這是實現這一目標的捷徑之一。

Another one is attaching yourself to wherever there is a lot of interest in the developer ecosystem. And so I think that as you look out at the AI space, and we try to survey what are the most common cloud platforms that are being used across the hottest AI start-ups and companies that are out there. Cloudflare is the most common to that. And I think that, that again accelerates the rate at which you're able to get that adoption.

另一種是關注開發者生態系統中最受關注的地方。因此，我認為，當你放眼人工智慧領域時，我們會嘗試調查最熱門的人工智慧新創公司和公司正在使用的最常見的雲端平台。 Cloudflare 是最常見的。我認為，這再次加快了採用的速度。

And so if you look at things like NPM downloads of packages and you compare sort of the things that you would download to run on Cloudflare Workers versus competitors like AWS' server-less offering. It's been pretty amazing that we've actually caught and now passed AWS by some measures in terms of the packages which are being downloaded that are out there. And again, we're a much newer platform. And so I'm encouraged that we'll be hopefully taking that average time for new developer platforms to get reach scale down because of some of the success we've seen, and again, really proud of our team and how they've executed in delivering this.

因此，如果您查看 NPM 軟體包下載之類的內容，並將您下載並在 Cloudflare Workers 上運行的內容與 AWS 的無伺服器產品等競爭對手進行比較。令人驚訝的是，我們實際上已經趕上了 AWS，並且在某些方面已經超越了 AWS，就正在下載的軟體包而言。再說一次，我們是一個更新的平台。因此，由於我們所看到的一些成功，我們希望能夠花平均時間來縮小新開發者平台的覆蓋範圍，這讓我感到鼓舞，再次為我們的團隊以及他們的執行方式感到自豪在交付這個。

Your next question comes from the line of Tim Horan with Oppenheimer.

你的下一個問題來自蒂姆·霍蘭和奧本海默的對話。

Related to the previous question. Can you maybe update us on your best guess on timing when the Workers platform, starts to drive some material revenue when it starts to move the needle? And maybe the same thing for AI. I know you said kind of not this year. And what do you think for both these platforms, what does this mean for overall growth rates for the company?

與上一個問題相關。您能否向我們介紹一下您對 Workers 平台何時開始推動一些物質收入的最佳猜測？對人工智慧來說也許也是同樣的事情。我知道你說今年不會。您對這兩個平台有何看法？這對公司的整體成長率意味著什麼？

Yes. I think what has been interesting has been that Workers is a big piece of a lot of the deals that we see. So it's still in somewhere around 20% of the large deals that we closed, have some workers component to it. And that's held actually fairly steady, but those deals are continued to go up and up. So it depends on how -- we don't break out the various pieces of Cloudflare because we think that the platform functions very well as one unified platform.

是的。我認為有趣的是，工人是我們看到的許多交易中的重要組成部分。因此，在我們完成的大型交易中，仍有大約 20% 的交易中有一些工人參與其中。實際上，這一數字相當穩定，但這些交易仍在不斷增加。所以這取決於如何 - 我們不會分解 Cloudflare 的各個部分，因為我們認為該平台作為一個統一平台運作得很好。

And we close more deals because we have workers involved. But a lot of times, that includes our reverse proxy security services oftentimes includes our Zero Trust security services. And what we really want to be is not a one-trick pony for any one of our customers. We want to actually have multiple different things that they rely on and be that strategic vendor that provides a broad set of solutions to them. So I think it's already materially driving new business and large deals.

我們達成了更多交易，因為我們有工人參與其中。但很多時候，這包括我們的反向代理安全服務，通常包括我們的零信任安全服務。我們真正想要的並不是對我們的任何一位客戶來說都是只會一招的小馬。我們實際上希望擁有他們所依賴的多種不同的東西，並成為為他們提供廣泛的解決方案的策略供應商。所以我認為它已經實質地推動了新業務和大型交易。

But as the Workers platform, I think the AI space, I think a lot of the money, which is being spent on AI right now, especially with some of the hyperscale public cloud, a lot of that is for training of models that is not -- we are not the right place to actually do model training. But as that transitions over time and people start to figure out how can you take those -- the models that you've built and turn them into real products. I think that's where you'll start to see a much more significant share of -- you'll start to see revenue that is showing up that is meaningful to us. In terms of delivering the value in the AI space.

但作為工人平台，我認為人工智慧領域，我認為現在有很多錢花在人工智慧上，特別是一些超大規模的公有雲，其中很多是用於訓練模型，而這些模型不是——我們不是實際進行模型訓練的正確場所。但隨著時間的推移，這種情況發生轉變，人們開始弄清楚如何將這些——你建立的模型轉化為真正的產品。我認為這就是您將開始看到更重要份額的地方 - 您將開始看到對我們有意義的收入。在人工智慧領域提供價值方面。

But I think it's -- we're still so early. And I think that the thing to track is less about us. It's more about how long does it take product managers and engineers to really figure out how to harness these new tools into -- and providing customer value. I think we've seen a ton of -- I mean, the challenging thing with AI is, it is really easy to make a demo, but it's very hard to make a product. There's a ton of value that will be created here, but I think it's going to still take some time. And I think it's going to be up to some things that are somewhat out of our control. But I can't imagine being better positioned than we are.

但我認為——我們還太早。我認為要追蹤的事情與我們無關。更重要的是產品經理和工程師需要多長時間才能真正弄清楚如何利用這些新工具並提供客戶價值。我想我們已經看到了很多——我的意思是，人工智慧的挑戰性在於，製作簡報確實很容易，但製作產品卻非常困難。這裡將創造大量的價值，但我認為這仍然需要一些時間。我認為這將取決於一些我們無法控制的事情。但我無法想像我們的處境比我們更好。

Your next question comes from the line of Trevor Walsh with Citizens JMP Securities.

您的下一個問題來自 Citizens JMP Securities 的 Trevor Walsh。

Matthew, maybe for you, I wanted to just sort of round up all the different kind of themes and things that you've been talking about throughout. You've got a platform of platforms where you're playing in AI, you're playing with developers and workers and Zero Trust, et cetera. Creates a big TAM, but then at the same time, from a go-to-market perspective, you have a lot of different stakeholders and buyers within the organization that you have to try to round up and sell that vision. So where do you think you need to go from just a go-to-market perspective, especially with Mark coming on board now? In terms of whether it's internal enablement, simplifying pricing and packaging like you talked about? Kind of how do you thread that needle, I guess, of all those different kind of people? And how do you see that kind of playing out kind of this coming year and beyond.

馬修，也許對你來說，我想總結你一直在談論的所有不同類型的主題和事情。你有一個平台的平台，你可以在其中玩人工智慧，你可以與開發人員和工人以及零信任等等一起玩。創建一個大的 TAM，但同時，從進入市場的角度來看，組織內有很多不同的利害關係人和買家，您必須嘗試收集並推銷該願景。那麼，從進入市場的角度來看，您認為您需要走向何方，尤其是馬克現在加入了？就內部支援而言，是否像您所說的那樣簡化定價和包裝？我想，對於所有這些不同類型的人，你是如何穿針的？您如何看待來年及以後的這種情況？

Yes. So I think our strategy remains our strategy, which is land with one product and then demonstrate -- build trust, demonstrate value and then expand to help customers both create more value and save money across their overall all platform. And what we see over and over again is that the customer that just this last quarter signed a $60 million total contract value renewal. They started with one product and were a $60,000 customer a year when they first started. So that works. I think operationalizing that now is the thing which we've made huge strides on over the last 15 months and I think Mark Anderson will continue to help with that.

是的。因此，我認為我們的策略仍然是我們的策略，即推出產品，然後進行展示——建立信任，展示價值，然後進行擴展，以幫助客戶在整個平台上創造更多價值並節省資金。我們一遍又一遍地看到，客戶在上個季度簽署了總價值 6000 萬美元的續約合約。他們從一種產品開始，剛開始時是年收入 6 萬美元的客戶。這樣就可以了。我認為，在過去 15 個月裡，我們在實施這項舉措方面取得了巨大進步，我認為馬克安德森 (Mark Anderson) 將繼續為此提供幫助。

What I think is really attractive about Mark Anderson is, yes, he knows the security space and the network security space from the time of Palo Alto Networks, but also from the time of Palo Alto Networks, they went from really a one product company to a platform company. And that's something which we really admire and think is rare when companies figure out that play.

我認為Mark Anderson 真正吸引人的地方在於，是的，他從Palo Alto Networks 時代起就了解安全領域和網路安全領域，而且從Palo Alto Networks 時代起，他們從真正的單一產品公司轉變為單一產品公司。一家平台公司。這是我們真正欽佩的事情，並且認為當公司想出這種策略時是很少見的。

We've got that set of products. We've got a lot of customers. And now it's how do we, again, continue to demonstrate value, I think, bringing on incredibly talented leaders like Mark Anderson, who are trusted and respected in the space who have run this play before and been successful with it, and it can now take the breadth of products that we have and the opportunity we have and build an iconic company and an iconic go-to-market organization. Again, I'm incredibly honored to have him on board, and his first day was today, and he's already rolling up his sleeves and getting to work.

我們有那套產品。我們有很多客戶。現在，我認為，現在的問題是我們如何再次繼續展示價值，引進像馬克安德森這樣非常有才華的領導者，他們在這個領域受到信任和尊重，他們之前已經運行過這個遊戲並取得了成功，現在它可以利用我們擁有的廣泛產品和機會，建立一家標誌性的公司和標誌性的上市組織。再次，我非常榮幸他能加入，今天是他的第一天，他已經捲起袖子開始工作。

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

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

Matthew, just two quick ones. You mentioned in the prepared remarks about the public business just get being fairly strong, and you mentioned the U.S. Department of Commerce. Can you give us any color about on adoption in the public sector? And then just tied to that, you were very early and very right in talking about the macro becoming weak several years ago. And I'm just curious, I know I listened to your prepared remarks, I just wanted to take your temperature about how you're just feeling in general about the way that the demand environment is current?

馬修，只有兩個快點。您在準備好的評論中提到公共事務變得相當強大，並且您提到了美國商務部。您能為我們介紹一下公共部門的採用情況嗎？與此相關的是，幾年前您很早就談論了宏觀經濟變得疲軟的問題，而且非常正確。我只是很好奇，我知道我聽了你準備好的發言，我只是想了解你對當前需求環境的整體感受如何？

Yes. So sort of related questions, actually. I think that our federal business as well as our SLED business, state local education, and our global government business has all been real signs of strength. And I think that, that, in part, is because of the fact that the world is getting scarier and we're seeing more attacks. In 2022, it was actually very quiet on the cyber front, whereas the back half of 2023 and especially after the Hamas invasion and kidnappings in Israel really took off in terms of cyber attacks that were going on around the world. And I think governments recognize the importance of staying safe and secure.

是的。實際上，這是一些相關的問題。我認為我們的聯邦業務以及我們的 SLED 業務、州地方教育以及我們的全球政府業務都是實力的真正標誌。我認為，部分原因是世界變得越來越可怕，我們看到了更多的攻擊。 2022 年，網路領域實際上非常安靜，而 2023 年下半年，尤其是在哈馬斯入侵以色列和綁架事件之後，世界各地發生的網路攻擊才真正開始爆發。我認為各國政府都意識到保持安全的重要性。

More than half of the world's population will vote in 2023 in elections. And so I think the fact that we've been leaders in protecting elections and making sure that elections are run without cybersecurity being part of the story has gotten us in the conversation in a lot of places around the world. And I think that we have a maturing set of just go-to-market motions and a really great leadership team around our state and local business -- or excuse me, our federal and state business, which is showing real signs of promise. So I would expect that, that business continues to be strong throughout 2024.

全球一半以上的人口將在 2023 年參加選舉。因此，我認為我們一直是保護選舉並確保選舉在沒有網路安全的情況下進行的領導者，這一事實使我們在世界各地的許多地方都參與對話。我認為，我們有一套成熟的市場化舉措，還有一支非常優秀的領導團隊，圍繞我們的州和地方業務——或者對不起，我們的聯邦和州業務，正在顯示出真正的希望跡象。因此，我預計該業務在 2024 年將繼續強勁。

Your second question is kind of the flip side of that, which is I think that the macro continues to be challenging. There are two hot wars going on right now. I think we are not out of the woods economically in terms of getting totally ahead of inflation. Again, I think in the U.S., that looks better than some of the other places in the world. There's a lot of ways that you can imagine the world continues to get more complicated. And I think IT buyers need to be skittish. Q4 definitely felt like people were starting to make decisions, and they were starting to say that there are certain things that are must-have versus nice-to-have. And I think we continue to be sorted into the must-have bucket.

你的第二個問題是另一面，我認為宏觀經濟仍然充滿挑戰。現在有兩場熱戰正在進行。我認為，就完全領先通貨膨脹而言，我們在經濟上還沒有走出困境。我再次認為，在美國，這看起來比世界上其他一些地方要好。您可以透過多種方式想像世界繼續變得更加複雜。我認為 IT 買家需要保持警惕。第四季確實讓人感覺到人們開始做出決定，他們開始說有些東西是必須擁有的，而不是最好的。我認為我們繼續被歸類為必備的類別。

But we continue to be very prudent and very thoughtful as we think about our business, we're trying to scale behind the demand that we see, not get cocky about ramping anything too fast. But in a world that is increasingly difficult and increasingly complicated, I'm glad that we're in the business of helping provide cybersecurity, and I'm incredibly proud of our team for living up to our mission of helping make sure the internet stays safe, secure and reliable.

但在考慮我們的業務時，我們仍然非常謹慎和深思熟慮，我們正在努力擴大規模以滿足我們所看到的需求，而不是因過快地增加任何東西而自大。但在一個日益困難和複雜的世界中，我很高興我們致力於幫助提供網路安全，並且我為我們的團隊履行我們幫助確保互聯網持續發展的使命感到無比自豪安全可靠。

That is all the time we have for questions today. I will turn the call back to Matthew Prince for closing remarks.

這就是我們今天提問的時間了。我會把電話轉回給馬修‧普林斯（Matthew Prince），讓他發表結束語。

I just wanted to thank the entire Cloudflare team for just all the incredibly hard work over Q4 and into the beginning of 2024. And we were just so incredibly proud of the work that everyone is doing. I'm excited to add Mark Anderson, our team full time. He started actually today, as I said, and he's already rolling up his sleeve. I want to thank Marc Boroditsky, who will continue to act as an adviser to Cloudflare and help with the transition. He's been nothing but a class act throughout this, and we couldn't have gotten here. Thanks to all of our customers, investors, we'll see you back here in about 3 months. Thank you.

我只是想感謝整個 Cloudflare 團隊在第四季度和 2024 年初所做的所有令人難以置信的艱苦工作。我們對每個人所做的工作感到非常自豪。我很高興加入我們團隊的全職成員馬克安德森 (Mark Anderson)。正如我所說，他實際上今天就開始了，而且他已經捲起了袖子。我要感謝 Marc Boroditsky，他將繼續擔任 Cloudflare 的顧問並協助完成過渡。在整個過程中，他只不過是一個集體行為，我們不可能走到這一步。感謝我們所有的客戶、投資者，我們將在大約 3 個月後再次與您會面。謝謝。

This concludes today's conference call. We thank you for joining. You may now disconnect your lines.

今天的電話會議到此結束。我們感謝您的加入。現在您可以斷開線路。