(NET) 2024 Q1 法說會逐字稿

Thank you for standing by, and welcome to the Cloudflare First Quarter 2024 Earnings Conference Call. (Operator Instructions)

感謝您的耐心等待，歡迎參加 Cloudflare 2024 年第一季財報電話會議。 （操作員說明）

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

現在我想將電話轉給主持人、策略財務、財務和投資者關係副總裁 Phil Winslow。你可以開始了。

Thank you for joining us today to discuss Cloudflare's financial results for the first quarter of 2024. With me on the call, we have Matthew Prince, Co-Founder and CEO; Michelle Zatlyn, Co-Founder, President and COO; Thomas Seifert, CFO; and Mark Anderson, President of Revenue.

感謝您今天加入我們討論 Cloudflare 2024 年第一季的財務表現。米歇爾‧札特林 (Michelle Zatlyn)，共同創辦人、總裁兼營運長；湯瑪斯‧塞弗特，財務長；馬克‧安德森 (Mark Anderson)，營收總裁。

By now, everyone should have access to our earnings announcement. This announcement as well as our supplemental financial information may be found on our Investor Relations website. As a reminder, we 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 and our anticipated future financial and operating performance and our expectations regarding future macroeconomic conditions.

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。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運營以及未來的財務業績、我們預期的產品發布以及這些產品和我們的產品的時間和市場潛力。

These results and other comments are not guarantees of future performance and are subject to risks and uncertainties, 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.

這些結果和其他評論並不是對未來業績的保證，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。

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. 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 will find a reconciliation of GAAP to non-GAAP financial measures that are included in our earnings release on our Investor Relations website. For historical periods, a GAAP to non-GAAP reconciliation can be found in the supplemental financial information referenced a few moments ago.

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。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。

Before wrapping up, please save the date for our 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日期，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'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 a very strong quarter. We achieved revenue of $378.6 million, up 30% year-over-year. We added 122 new large customers, those that pay us more than $100,000 per year and now have 2,878 large customers, up 33% year-over-year. Revenue contribution from our large customers during the quarter increased to 67%, up from 62% in the first quarter last year. Digging into our largest customers, we added a record number of net new customers year-over-year spending more than $100,000, $500,000 and $1 million on an annualized basis. We are successfully moving upmarket and becoming a larger and more strategic vendor to more and more of our customers. Our dollar-based net retention held steady quarter-over-quarter at 115%. Our gross margin was 79.5%, again, above our long-term target range of 75% to 77% and up from 78.9% last quarter. We delivered operating profit of $42.4 million, representing an operating margin of 11.2%. Our gross margin and operating margin performance underscore Cloudflare's efficiency and increasing operational excellence. We again meaningfully outperformed on free cash flow, generating $35.6 million during the quarter. We have our hands firmly on the levers of our business. I'm proud of the fact that our team has been able to continue to build our network, service larger and larger customers and launch entirely new categories of products including in the AI space, while remaining disciplined with our CapEx, gross margin, operating margin and cash flow.

謝謝你，菲爾。我們度過了一個非常強勁的季度。我們營收 3.786 億美元，年增 30%。我們新增了 122 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 2,878 個，較去年同期成長 33%。本季來自大客戶的營收貢獻從去年第一季的 62% 增至 67%。透過深入研究我們最大的客戶，我們發現年化支出超過 10 萬美元、50 萬美元和 100 萬美元的淨新客戶數量創歷史新高。我們正在成功地向高端市場邁進，並成為越來越多客戶的更大、更具戰略意義的供應商。我們以美元計算的淨留存率季穩定維持在 115%。我們的毛利率再次達到 79.5%，高於我們 75% 至 77% 的長期目標範圍，高於上季的 78.9%。我們實現營業利潤 4,240 萬美元，營業利益率為 11.2%。我們的毛利率和營業利潤率表現突顯了 Cloudflare 的效率和不斷提高的卓越營運能力。我們在自由現金流方面的表現再次明顯優於其他公司，本季創造了 3,560 萬美元。我們牢牢掌握著業務的槓桿。我感到自豪的是，我們的團隊能夠繼續建立我們的網絡，為越來越大的客戶提供服務，並推出包括人工智慧領域在內的全新產品類別，同時保持我們的資本支出、毛利率、營業利潤率的紀律和現金流。

We have an elegant business that works because how all the pieces fit together and leverage our hyper-efficient network infrastructure in a way that we believe no competitors can match. If I reflect back on the history of Cloudflare, it divides fairly neatly into 7-year eras. The first 7 years, 2010 to through 2017, were all about engineering and little else, figuring out if it was even possible to build the revolutionary network we have today. The next 7 were all about product, taking that incredible engineering and packaging it up. As we got greater product, we didn't stop being incredible at engineering. We continue to build on and improve that foundation. Looking forward to the next 7 years, we will continue to be the best in the world in engineering and product, but we'll add to that world-class sales and marketing.

我們擁有一項優雅的業務，因為所有部分如何組合在一起並以我們相信沒有競爭對手可以匹敵的方式利用我們超高效的網路基礎設施。如果我回顧一下 Cloudflare 的歷史，它可以相當整齊地劃分為 7 年時代。最初的 7 年，從 2010 年到 2017 年，一切都與工程有關，除此之外幾乎沒有其他事情，就是弄清楚是否有可能建立我們今天擁有的革命性網路。接下來的 7 個都是關於產品，採用令人難以置信的工程並將其包裝起來。當我們獲得更好的產品時，我們在工程方面的表現並沒有停止。我們將繼續在此基礎上繼續發展和改進。展望未來 7 年，我們將繼續在工程和產品方面成為世界最佳，但我們將在銷售和行銷方面保持世界一流的水平。

To that end, just 90 days ago, we announced that Mark Anderson will be joining Cloudflare as our new President of Revenue to accelerate our next phase of growth at scale. He hit the ground running and has been enthusiastically embraced by our team. I thought it made sense for Mark to say a few words on what he's seeing in his first 90 days. Mark?

為此，就在 90 天前，我們宣布 Mark Anderson 將加入 Cloudflare 擔任新任營收總裁，以加速我們下一階段的規模成長。他一馬當先，並受到我們團隊的熱情擁抱。我認為馬克就他在前 90 天所看到的情況說幾句話是有道理的。標記？

Thanks, Matthew. I know Cloudflare and the team as a Board member for the last 4.5 years. But the thing that surprised me the most getting in the trenches is just how incredible the product is. I know this space, and we are leaps and bounds better than any of our competitors. What also surprised me is how much room for improvement there is for Cloudflare's go-to-market organization. The last year has been about clearing away for a world-class enterprise sales organization to emerge. We've got some great people, great experiences. And gosh, I could see the early results. I'm now planning to step on the gas, building and enabling this team that can take Cloudflare's best-of-breed products to every single enterprise everywhere in the world. I don't see anything stopping us from becoming one of the most strategic key vendors to every Fortune 500 company out there. I couldn't be more excited.

謝謝，馬修。我在過去 4.5 年裡作為董事會成員認識 Cloudflare 和團隊。但最讓我驚訝的是這個產品是多麼令人難以置信。我了解這個領域，而且我們比任何競爭對手都取得了長足的進步。同樣令我驚訝的是 Cloudflare 的上市組織還有很大的進步空間。去年是世界一流企業銷售組織誕生的一年。我們有一些很棒的人，很棒的經驗。天哪，我可以看到早期的結果。我現在計劃加大力度，建立並支持這個團隊，將 Cloudflare 的同類最佳產品帶給世界各地的每家企業。我認為沒有什麼可以阻止我們成為每家財富 500 強公司最具戰略意義的關鍵供應商之一。我非常興奮。

Thanks, Mark. Some of the benefits of a world-class leader are hard to measure in the short term, but I'll give you one that can be clearly measured and that stood out to me. The number of applicants for strategic account and enterprise sales positions increased 56% in March versus February following Mark Anderson's appointment. We're definitely hiring. Across all positions, we had over 350,000 applicants in Q1, up 47% over the same quarter last year. We added several senior go-to-market leaders with proven track records in their areas of expertise, including a new Chief Partner Officer, a new Head of Global Sales and renewals and multiple regional strategic account sales leaders. If you're a sales professional who wants to win with great products and world-class leadership, the word is out, Cloudflare is the place to bet the next stage of your career. Beyond incredible hiring, our sales productivity from existing team members improved year-over-year. Sales cycles were similar to last quarter and new pipeline attainment exceeded our expectations. I don't think Mark can take credit for any of that yet, which is actually very encouraging. We have room for improvement, as he said. But now we have the right leadership and foundation to take our go-to-market efforts to the next level. I feel extremely confident and clear in the long-term opportunity that Cloudflare has in front of us.

謝謝，馬克。世界級領導者的一些好處很難在短期內衡量，但我會給你一個可以清楚衡量的、對我來說很突出的好處。在馬克安德森 (Mark Anderson) 任命後，3 月份戰略客戶和企業銷售職位的申請人數比 2 月份增加了 56%。我們肯定在招募。第一季度，所有職位的申請人數超過 35 萬人，比去年同期成長 47%。我們增加了幾位在其專業領域擁有良好業績記錄的高級行銷領導者，包括新的首席合作夥伴長、新的全球銷售和續訂主管以及多個區域策略客戶銷售領導者。如果您是銷售專業人士，希望憑藉出色的產品和世界一流的領導力贏得勝利，那麼 Cloudflare 就是您職業生涯下一階段的最佳選擇。除了令人難以置信的招募之外，我們現有團隊成員的銷售效率逐年提高。銷售週期與上季相似，新管道的實現超出了我們的預期。我認為馬克還不能將這一切歸功於自己，這實際上非常令人鼓舞。正如他所說，我們還有改進的空間。但現在我們擁有了正確的領導力和基礎，可以將我們的市場推廣工作提升到一個新的水平。我對 Cloudflare 面前的長期機會感到非常有信心和清晰。

In the short term, however, my crystal ball is less clear. We see a lot of signals based on our privileged position running a good chunk of the Internet. Even without that visibility, if you've been watching the news at all, it's clear that the near-term outlook for the world is uncertain, increasing tensions in the Middle East, no end in sight on the Russia-Ukraine war and potential signs of instability in Asia. It's not at all certain on anything we see that things will get worse. But we do know from even recent history that macro factors can impact short-term sales trends.

然而，從短期來看，我的水晶球還不太清楚。我們看到很多基於我們在互聯網上運行的特權地位的信號。即使沒有這種可見度，如果你一直在看新聞，很明顯，世界的近期前景是不確定的，中東緊張局勢加劇，俄羅斯-烏克蘭戰爭沒有結束的跡象，以及潛在的跡象亞洲的不穩定。我們完全不能確定事情會變得更糟。但從最近的歷史來看，我們確實知道宏觀因素會影響短期銷售趨勢。

We're fortunate that we're in the cybersecurity space, perhaps one of the few sectors that can actually benefit from increased global tensions. We're already seeing that, especially in our government business, but we also want to acknowledge the risky world we live in; and b, as we always have been, prudent and careful with our investments and our forecast as we look into what is a short-term cloudy crystal ball. That served us well in the past, and I think will prove to be the disciplined approach once again going forward. The short term is uncertain, the long term is bright, and so in the medium term, we're going to keep our hands firmly on the levers of our business and thoughtfully invest in our go-to-market efforts in great engineering and in disruptive new products that deliver incredible value to our customers. That's the winning strategy, especially in uncertain times.

我們很幸運，我們處於網路安全領域，這也許是少數幾個能夠真正從全球緊張局勢加劇中受益的行業之一。我們已經看到了這一點，尤其是在我們的政府業務中，但我們也想承認我們生活在一個充滿風險的世界； b，一如既往，在我們研究什麼是短期陰水晶球時，我們對我們的投資和預測保持謹慎和謹慎。這在過去對我們很有幫助，我認為未來將再次證明這是一種有紀律的方法。短期是不確定的，長期是光明的，因此從中期來看，我們將牢牢掌握我們業務的槓桿，並深思熟慮地投資於我們在偉大工程和顛覆性的新產品為我們的客戶帶來難以置信的價值。這是製勝策略，尤其是在不確定的時期。

Speaking of customers, let me share some great wins for the quarter. The National Cyber Security Centre, the U.K.'s technical authority for cyber threats, signed a 3-year contract with Cloudflare to deliver its protective domain name service. PDNS protects over 1,400 U.K. organizations in central government, local government, health care and emergency services from malware and cyber threats. This was a very competitive process with several vendors and a rigorous technical evaluation. We tightly collaborate with Accenture, a partner we're looking forward to working with even more closely on this landmark U.K. public sector win. A leading technology company expanded their relationship with Cloudflare, signing a 3-year, $40 million pool of funds contract, $8.5 million of which are expansion.

說到客戶，讓我分享本季的一些重大勝利。英國網路威脅技術權威國家網路安全中心與 Cloudflare 簽署了一份為期 3 年的合同，以提供其保護性網域服務。 PDNS 保護中央政府、地方政府、醫療保健和緊急服務部門的 1,400 多個英國組織免受惡意軟體和網路威脅。這是一個與多家供應商競爭非常激烈的過程，並進行了嚴格的技術評估。我們與埃森哲緊密合作，我們期待在英國公共部門這一具有里程碑意義的勝利中與埃森哲進行更密切的合作。一家領先的科技公司擴大了與 Cloudflare 的關係，簽署了一份為期 3 年、價值 4000 萬美元的資金池合同，其中 850 萬美元用於擴張。

This deal is an example of a strategic platform deal that we're increasingly seeing customers opt for with a rate card for more than 40 Cloudflare products and services. These include Cloudflare One, Magic Transit, R2 as well as Workers AI, which the customer was quick to dive in and start trialing. As a textbook land-and-expand story, this customer first came to us in 2017 for our application security services and has continued to expand over the years with this deal encompassing the vast majority of Cloudflare's platform.

該交易是策略平台交易的一個例子，我們越來越常看到客戶選擇使用價目表來購買 40 多種 Cloudflare 產品和服務。其中包括 Cloudflare One、Magic Transit、R2 以及 Workers AI，客戶很快就投入使用並開始試用。作為教科書上的土地和擴張故事，該客戶於 2017 年首次向我們尋求應用程式安全服務，多年來不斷擴張，這筆交易涵蓋了 Cloudflare 平台的絕大多數。

A Fortune 100 financial services company signed a similar 4-year, $10 million pool of funds deal. This customer represents our largest new logo win with a major financial institution. We successfully completed 6 different proof of concepts and the main business drivers for going with Cloudflare were resilience, the operational efficiency from a single unified platform and our ability to meet data sovereignty requirements with complete flexibility at the country level, a requirement that no other vendor was able to accommodate. We anticipate this deal will serve as a beachhead for us to win more financial service customers looking for the same benefits.

一家財富 100 強金融服務公司簽署了類似的為期 4 年、價值 1000 萬美元的資金池協議。該客戶代表了我們與一家大型金融機構最大的新標誌合作。我們成功完成了6 個不同的概念驗證，使用Cloudflare 的主要業務驅動因素是彈性、單一統一平台的營運效率以及我們在國家/地區層級以完全靈活性滿足資料主權要求的能力，這是其他供應商無法滿足的要求能夠容納。我們預計這筆交易將成為我們贏得更多尋求同樣利益的金融服務客戶的灘頭堡。

A large international energy company signed a 5-year, $4.5 million contract. This new customer is going all in with Cloudflare's SASE platform, with 6,000 Zero Trust seats along with CASB, DLP, Browser Isolation, MAGIC WAN and Magic Firewall. Competing against a first-generation Zero Trust vendor, our focus on scalability and efficiency as well as the ability to consolidate several vendors due to the significant value in our overall portfolio were key factors delivering this win.

一家大型國際能源公司簽署了一份為期 5 年、價值 450 萬美元的合約。這位新客戶將全力使用 Cloudflare 的 SASE 平台，該平台擁有 6,000 個零信任席位以及 CASB、DLP、瀏覽器隔離、MAGIC WAN 和 Magic Firewall。在與第一代零信任供應商的競爭中，我們對可擴展性和效率的關注，以及由於我們整體產品組合的巨大價值而整合多個供應商的能力是我們獲勝的關鍵因素。

A large financial institution in Latin America signed a 2-year, $1.3 million contract for Zero Trust seats for their employees and contractors, along with our application security services. This is a very competitive process with 11 participants. Cloudflare's pace of innovation, speed of deployment, superior performance and integrated platform with DDoS and WAF for agentless access set us apart from the rest.

拉丁美洲的一家大型金融機構為其員工和承包商簽署了一份為期 2 年、價值 130 萬美元的零信任席位合同，以及我們的應用程式安全服務。這是一個競爭非常激烈的過程，共有 11 位參與者。 Cloudflare 的創新步伐、部署速度、卓越的效能以及用於無代理存取的 DDoS 和 WAF 整合平台使我們脫穎而出。

A leading digital marketplace signed a 3-year, $880,000 contract for Zero Trust, MAGIC WAN and application security. The company was looking to simplify, optimize and reduce latency in their security architecture and WAN platform. With their incumbent solution, this company found it difficult to roll out consistent security posture where they can manage security and network together. With Cloudflare, this customer is able to consolidate 7 incumbent products onto Cloudflare modernized network, merging network and security solutions on our unified platform with a single control plane.

一家領先的數位市場簽署了一份為期 3 年、價值 88 萬美元的零信任、MAGIC WAN 和應用程式安全合約。該公司希望簡化、優化並減少其安全架構和 WAN 平台的延遲。使用其現有的解決方案，該公司發現很難推出一致的安全態勢來同時管理安全和網路。借助 Cloudflare，該客戶能夠將 7 個現有產品整合到 Cloudflare 現代化網路上，將網路和安全解決方案合併到我們統一平台上的單一控制平面上。

A Fortune 100 government-sponsored financial services company signed a 3-year, $3 million contract for DDoS protection with our Magic Transit, Magic Firewall and DNS firewall products. This customer was looking for a solution that was more resilient, performant and better architected than their incumbent solution. With Cloudflare's unified platform, this customer is able to improve attack mitigation outcomes on a single pane of glass and eliminate the need for dedicated teams to run and manage multiple products. Another deal with this customer is already underway.

由財富 100 強政府資助的金融服務公司與我們的 Magic Transit、Magic Firewall 和 DNS 防火牆產品簽署了為期 3 年、價值 300 萬美元的 DDoS 防護合約。該客戶正在尋找比其現有解決方案更具彈性、性能更高且架構更好的解決方案。借助 Cloudflare 的統一平台，該客戶能夠在單一管理平台上改善攻擊緩解結果，並且無需專門團隊來運作和管理多個產品。與該客戶的另一項交易已經在進行中。

A leading construction company signed a 3-year, $720,000 contract for Zero Trust, Magic WAN and Magic Firewall. This customer is looking to shift from a legacy hub-and-spoke architecture, eliminating costly hardware appliances at job sites to a modern, cloud-native SASE model. Cloudflare won against the first-generation Zero Trust vendor due to our superior network, pace of innovation, ease of use and speed of deployment.

一家領先的建築公司簽署了一份為期 3 年、價值 72 萬美元的零信任、Magic WAN 和 Magic Firewall 合約。該客戶希望從傳統的中心輻射型架構（消除工作現場昂貴的硬體設備）轉向現代的雲端原生 SASE 模型。 Cloudflare 憑藉我們卓越的網路、創新步伐、易用性和部署速度擊敗了第一代零信任供應商。

A U.S. government agency signed a 1-year, $800,000 contract for Zero Trust, Magic WAN and R2 object storage. The agency was looking to modernize infrastructure and eliminate a complex network of multiple legacy point solution vendors. Cloudflare displaced a first-generation Zero Trust provider due to our ease of use, speed of deployment and integrated platform with a single control plane. These are all great wins. And again, I think what we're seeing is more and more customers are turning to the complete Cloudflare platform.

美國一家政府機構簽署了一份為期 1 年、價值 80 萬美元的零信任、Magic WAN 和 R2 物件儲存合約。該機構正在尋求對基礎設施進行現代化改造，並消除由多個傳統單點解決方案供應商組成的複雜網路。由於我們的易用性、部署速度以及具有單一控制平面的整合平台，Cloudflare 取代了第一代零信任提供者。這些都是偉大的勝利。再說一遍，我認為我們看到越來越多的客戶轉向完整的 Cloudflare 平台。

Before I hand it over to Thomas, I wanted to spend a couple of minutes talking about Cloudflare Workers, our developer platform. The last few months were incredible for the entire Workers' ecosystem. First, we crossed over 2 million active developers building applications on Cloudflare Workers. Second, in April, we GA-ed a number of key products like D1, our serverless SQL database; Hyperdrive, which makes any traditional database perform like it's globally distributed; and Workers AI, which allows developers to run and tune AI models across our global network.

在交給 Thomas 之前，我想花幾分鐘討論我們的開發者平台 Cloudflare Workers。對於整個 Workers 生態系統來說，過去的幾個月是令人難以置信的。首先，我們有超過 200 萬名活躍開發人員在 Cloudflare Workers 上建立應用程式。其次，在 4 月份，我們對一些關鍵產品進行了 GA 版，例如 D1，我們的無伺服器 SQL 資料庫； Hyperdrive，它使任何傳統資料庫都像全球分佈的一樣運作； Workers AI，它允許開發人員在我們的全球網路中運行和調整人工智慧模型。

We're ahead of schedule rolling out GPUs across our network and now have them running in more than 150 cities globally, making us what we believe is the most widely distributed AI cloud by a huge margin. Our next generation of servers that begin to roll out in Q2 have GPUs built in by default and will support faster inference and even larger, more complicated models. Developers are building incredible new applications using Workers AI, and we're making it increasingly easy for them.

我們提前在我們的網路中推出 GPU，現在它們在全球 150 多個城市運行，使我們成為我們認為分佈最廣泛的人工智慧雲端。我們的下一代伺服器將於第二季度開始推出，預設內建 GPU，並將支援更快的推理以及更大、更複雜的模型。開發人員正在使用 Workers AI 建立令人難以置信的新應用程序，我們正在讓他們變得越來越容易。

We added support for Python, the second most popular programming language generally and the most common language for AI applications. We rolled out our partnership with Hugging Face, making it one-click simple to deploy most of their catalog of models to Cloudflare's network. And we added other bleeding edge models, including releasing Meta's Llama-3 production simultaneously the day it was announced.

我們增加了對 Python 的支持，Python 是第二大流行的程式語言，也是人工智慧應用程式最常用的語言。我們推出了與 Hugging Face 的合作夥伴關係，只需一鍵點擊即可輕鬆將其大部分模型目錄部署到 Cloudflare 的網路。我們還添加了其他前沿模型，包括在 Meta 的 Llama-3 產品發布當天同時發布。

One of my favorite aspects of my job is I feel like I get to see into the future when I talk to developers who are building on Cloudflare Workers. I'm proud that we're delivering the tools they need to build applications that are intelligent, scalable and lightning-fast around the world. Internally and externally, our innovation engine continues to fire on all cylinders. And as I said, I've never been more excited about the future for Cloudflare, the Internet and us users who will get to enjoy the benefits of all of this innovation in so many aspects of our lives.

我的工作中我最喜歡的方面之一是，當我與在 Cloudflare Workers 上進行建置的開發人員交談時，我感覺自己能夠看到未來。我很自豪我們能夠為他們提供所需的工具，幫助他們在全球範圍內建立智慧、可擴展且快如閃電的應用程式。在內部和外部，我們的創新引擎繼續全速運轉。正如我所說，我對 Cloudflare、互聯網和我們用戶的未來感到前所未有的興奮，他們將在我們生活的許多方面享受所有這些創新的好處。

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

有了這個，我會把它交給托馬斯。湯瑪斯，把它拿走。

Thank you, Matthew, and thank you to everyone for joining us. We are pleased with our execution during the first quarter. Sales productivity improved year-over-year again this quarter. Sales cycles were similar to last quarter, and our new pipeline attainment exceeded our expectations. The quarter was highlighted by sustained momentum with large customers including our largest new logo win with a major financial institution and continued progress in the public sector, including our largest contract with a new foreign government customers.

謝謝你，馬修，也謝謝大家加入我們。我們對第一季的執行感到滿意。本季銷售生產力再次較去年同期提升。銷售週期與上季相似，我們的新管道業績超出了我們的預期。本季的亮點是與大客戶的持續成長勢頭，包括我們與一家主要金融機構贏得的最大的新徽標，以及公共部門的持續進展，包括我們與新的外國政府客戶的最大合約。

We're also seeing security remain a high priority for our customers given continued geopolitical uncertainty and high-profile cyberattacks, driving demand for our application and network security businesses as well as Cloudflare One. We also maintained our strong commitment to being fiscally responsible and act as good stewards of investors' capital. During the first quarter, operating profit more than doubled year-over-year, and we generated strong free cash flow of $35.6 million, driven by a notable uptick in collections on our accounts receivable.

我們還發現，鑑於持續的地緣政治不確定性和引人注目的網路攻擊，安全仍然是我們客戶的首要任務，這推動了對我們的應用程式和網路安全業務以及 Cloudflare One 的需求。我們也恪守對財政負責的堅定承諾，並扮演投資者資本的良好管理者。第一季度，營業利潤年增了一倍以上，在應收帳款收款顯著增加的推動下，我們產生了 3,560 萬美元的強勁自由現金流。

Turning to revenue. Total revenue for the first quarter increased 30% year-over-year to $378.6 million. From a geographic perspective, the U.S. represented 52% of revenue and increased 28% year-over-year. EMEA represented 28% of revenue and increased 35% year-over-year. APAC represented 12% of revenue and increased 22% year-over-year.

轉向收入。第一季總營收年增 30% 至 3.786 億美元。從地域角度來看，美國佔營收的 52%，年增 28%。歐洲、中東和非洲地區佔營收的 28%，年增 35%。亞太地區佔營收的 12%，年增 22%。

Turning to our customer metrics. In the first quarter, we had about 197,000 paying customers, representing an increase of 17% year-over-year. We ended the quarter with about 2,900 large customers, representing an increase of 33% year-over-year and an addition of 122 large customers in the quarter. As Matthew mentioned, we were pleased to see revenue contribution from large customers during the quarter increased again to 67% of revenue, up from 62% in the first quarter last year. We also added a record number of net new customers year-over-year across all 3 large customer cohorts, that is those spending more than $100,000, $500,000 and $1 million on an annualized basis with Cloudflare.

轉向我們的客戶指標。第一季度，我們的付費客戶約19.7萬戶，年增17%。截至本季末，我們擁有約 2,900 家大客戶，年增 33%，本季新增 122 家大客戶。正如 Matthew 所提到的，我們很高興看到本季大客戶的營收貢獻再次增加至營收的 67%，高於去年第一季的 62%。我們還在所有 3 個大型客戶群中逐年增加了創紀錄的淨新客戶數量，即每年在 Cloudflare 上支出超過 10 萬美元、50 萬美元和 100 萬美元的客戶。

Our dollar-based net retention rate was 115% during the first quarter and consistent 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.

第一季我們以美元計算的淨留存率為 115%，與上季持平。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. First quarter gross margin was 79.5%, representing an increase of 60 basis points sequentially and an increase of 170 basis points year-over-year. Network CapEx represented 8% of revenue in the first quarter as we continue to benefit from our focus on driving great 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。第一季毛利率為79.5%，季增60個基點，較去年同期成長170個基點。網路資本支出佔第一季收入的 8%，我們繼續受益於我們專注於提高基礎設施效率以及我們平台的獨特性以搭載新工作負載。我們預計 2024 財年網路資本支出將佔營收的 10% 至 12%。

Turning to operating expenses. First quarter operating expenses as a percentage of revenue decreased by 3% year-over-year to 68% as we remain committed to driving higher productivity and greater efficiency across our operations. Our total number of employees increased 9% year-over-year, bringing our total head count to 3,704 at the end of the quarter. Sales and marketing expenses were $156.8 million for the quarter. Sales and marketing as a percentage of revenue decreased to 41% from 42% in the same quarter last year. Over the last 5 quarters, we focused on refining our go-to-market strategies and operations. We are encouraged by the double-digit year-over-year improvement in sales productivity that we again delivered during the first quarter, which continues the upward trend from the trough of early last year from the productivity levels we consistently achieved in 2021 and early 2022.

轉向營運費用。第一季營運費用佔收入的百分比年減 3% 至 68%，因為我們仍然致力於提高整個營運的生產力和效率。我們的員工總數年增 9%，季末總人數達到 3,704 人。該季度的銷售和行銷費用為 1.568 億美元。銷售和行銷佔收入的百分比從去年同期的 42% 下降至 41%。在過去的 5 個季度中，我們專注於完善我們的市場策略和營運。我們對第一季銷售生產力再次實現兩位數的同比增長感到鼓舞，這延續了我們在 2021 年和 2022 年初持續實現的生產力水平上自去年初的低谷以來的上升趨勢。

We expect this positive trajectory to continue based on the analysis of our pipeline and with the onboarding of Mark Anderson and the other senior go-to-market leaders Matthew referenced earlier. As you've heard us say many times, we are committed to the underlying unit economics of our business and make data-driven decisions to pace hiring. The improvement in sales productivity and other leading indicators of our business give us confidence to invest in additional go-to-market improvements and further expand sales capacity.

根據對我們的管道的分析以及馬克安德森和馬修之前提到的其他高級市場領導者的加入，我們預計這種積極的軌跡將繼續下去。正如您多次聽到我們所說，我們致力於業務的基本單位經濟效益，並做出數據驅動的決策來加快招聘速度。銷售生產力和其他業務領先指標的提高使我們有信心投資於額外的市場推廣改進並進一步擴大銷售能力。

As a result, we intend to accelerate head count additions in the coming quarters as compared to the first quarter. Research and development expenses were $58.7 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 $43.2 million for the quarter. G&A as a percentage of revenue decreased to 11% from 12% in the second quarter last year. Operating income was $42.4 million compared to $19.4 million in the same period last year. First quarter operating margin was 11.2%, an increase of 450 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.

因此，與第一季相比，我們打算在未來幾季加快員工數量的增加。該季度的研發費用為 5,870 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 4,320 萬美元。 G&A 佔營收的百分比從去年第二季的 12% 下降至 11%。營業收入為 4,240 萬美元，去年同期為 1,940 萬美元。第一季營業利益率為 11.2%，較去年同期成長 450 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 on the balance sheet. Our net income in the quarter was $58.2 million or a diluted net income of $0.16 per share. We ended the first quarter with $1.7 billion in cash, cash equivalents and available-for-sale securities. Free cash flow was $35.6 million in the first quarter or 9% of revenue compared to $13.9 million or 5% of revenue in the same period last year. Remaining performance obligations, or RPO, came in at $1.343 billion, representing an increase of 8% sequentially and 40% year-over-year. Current RPO was 70% of total RPO.

轉向資產負債表上的淨利。我們本季的淨利潤為 5,820 萬美元，攤薄後淨利潤為每股 0.16 美元。第一季結束時，我們擁有 17 億美元的現金、現金等價物和可供出售證券。第一季自由現金流為 3,560 萬美元，佔營收的 9%，去年同期為 1,390 萬美元，佔營收的 5%。剩餘履約義務（RPO）為 13.43 億美元，季增 8%，年增 40%。目前 RPO 是總 RPO 的 70%。

Moving to guidance for the second quarter and full year 2024. We are pleased with our execution during the first quarter. However, ongoing mixed macroeconomic data points and heightened geopolitical uncertainty (inaudible) remind us that we continue to operate in a business environment that remains challenging to predict. As a result, we remain prudent in our outlook for 2024.

轉向 2024 年第二季和全年的指導。然而，持續的宏觀經濟數據點好壞參半和地緣政治不確定性加劇（聽不清楚）提醒我們，我們繼續在一個仍然難以預測的商業環境中運作。因此，我們對 2024 年的前景保持審慎。

For the second quarter, we expect revenue in the range of $393.5 million to $394.5 million, representing an increase of 28% year-over-year. We expect operating income in the range of $35 million to $36 million, and we expect an effective tax rate of 10%. We expect diluted net income per share of $0.14, assuming approximately 360 million shares outstanding.

我們預計第二季營收在 3.935 億美元至 3.945 億美元之間，年增 28%。我們預計營業收入在 3,500 萬美元至 3,600 萬美元之間，有效稅率為 10%。假設流通股數量約 3.6 億股，我們預期攤薄後每股淨利為 0.14 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 expect operating income for the full year in the range of $160 million to $164 million. We expect an effective tax rate of 10% for 2024 and we expect diluted net income per share over that period to be $0.60 to $0.61, assuming approximately 361 million shares outstanding. 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.

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%。我們預計全年營業收入在 1.6 億美元至 1.64 億美元之間。我們預計 2024 年的有效稅率為 10%，假設流通股數量約為 3.61 億股，我們預計該期間的攤薄每股淨利潤為 0.60 至 0.61 美元。我們預計2024年全年自由現金流與營業利潤相對一致，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 their businesses. And with that, I'd like to open it up for questions. Operator, please poll for questions.

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他們在業務現代化、轉型和安全時面臨的一些最棘手的問題。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。

Maybe one for Matthew first and then one for Thomas. Matthew, our checks continue to show you're becoming more relevant in SASE. Can you talk a bit more about the progress in that market and why you appear to be taking share on what it feels like a more competitive market today?

也許先給馬修一個，然後給湯瑪斯一個。 Matthew，我們的檢查繼續顯示您在 SASE 的相關性越來越高。您能否多談談該市場的進展以及為什麼您似乎在當今競爭更加激烈的市場中佔據份額？

Yes. I think we're really proud of our team for our ability to execute there. SASE, for those people who aren't as familiar with, is the forward proxy products that we sell. It helps make sure that employees who are using the Internet online are protected from malware, protected from malicious sites that the networks that you use as part of your business are as secure as possible. We were able to build our SASE platform on top of Cloudflare's existing network. And the advantage of that is that it means that you get a true platform. Not only do you get those forward proxy products, but a lot of times, we're bundling in our reverse proxy products. And that total solution is extremely compelling in the marketplace, and it's something that no other SASE vendor can match. And so I think we are a newer entrant into this space, but we've caught up very quickly. You can see we have improved more in the Gartner rankings, in the Forrester rankings than any other vendor in this space, and companies are taking notice.

是的。我認為我們真的為我們團隊的執行能力感到自豪。對於那些不太熟悉的人來說，SASE 是我們銷售的轉發代理商產品。它有助於確保在線上使用網路的員工免受惡意軟體、惡意網站的侵害，確保您在業務中使用的網路盡可能安全。我們能夠在 Cloudflare 的現有網路之上建立我們的 SASE 平台。這樣做的好處是，這意味著您獲得了一個真正的平台。您不僅可以獲得這些正向代理產品，而且很多時候，我們還捆綁了反向代理產品。此整體解決方案在市場上極具吸引力，是其他 SASE 供應商無法比擬的。所以我認為我們是這個領域的新進入者，但我們很快就趕上了。您可以看到，我們在 Gartner 排名和 Forrester 排名中的進步超過了該領域的任何其他供應商，而各公司正在註意到這一點。

The other thing that I think everybody really loves is most security companies think that performance is sort of a nice to have, not a must have. We never accepted that. And so our SASE platform is significantly better and faster than anyone else. And so anyone who's listening to this if you're frustrated with the VPN that you have to log into, if you're frustrated with whatever service it's providing that, even if it's a new cloud service, if it's slowing you down and making it harder for you to do work, give us a call at Cloudflare because we can actually improve that and make it significantly better. And that's what we're seeing from customer after customer after customer is that our next-generation SASE platform is winning in this space.

我認為每個人都真正喜歡的另一件事是，大多數安全公司認為性能是一種很好的選擇，而不是必須具備的。我們從來沒有接受過這一點。因此，我們的 SASE 平台明顯比其他任何平台都更好、更快。因此，如果您對必須登入的VPN 感到沮喪，如果您對它提供的任何服務感到沮喪，即使它是一項新的雲端服務，如果它減慢了您的速度並使其成為可能，那麼任何收聽此內容的人都會感到沮喪。這就是我們從一個又一個客戶那裡看到的，我們的下一代 SASE 平台正在這個領域獲勝。

Excellent. And then maybe just a quick one for Thomas. I know calculated billings isn't a great metric for you guys based on your model, but I'm wondering how we should think about billings in the context of your expanded usage-based pricing model.

出色的。然後也許對托馬斯來說只是一個快速的。我知道根據您的模型計算的賬單對您來說並不是一個很好的指標，但我想知道我們應該如何在擴展的基於使用的定價模型的背景下考慮賬單。

Yes. Especially if we compare fourth quarter to this quarter, fourth quarter was a very strong quarter, both in terms of new business as well as in terms of renewal. But what made this quarter even more special from a comparability perspective, as you heard Matthew talked about some very large significant deals, both in the federal as well as in the commercial space. Some of these very large deals are pool of fund deals, and they have a very different shape to them from current RPO and billings perspective. And one indication is RPO, it's up 40% year-over-year, where you see this momentum more neutralized and some of the noise taken away. But without any doubt this business is becoming more complex. And this is then also reflected in some more noise in -- from a quarter-to-quarter perspective. But overall, we are really happy with the performance in the quarter.

是的。特別是如果我們將第四季度與本季度進行比較，無論是在新業務方面還是在續訂方面，第四季度都是一個非常強勁的季度。但從可比性的角度來看，是什麼讓本季變得更加特別，因為您聽到馬修談到了聯邦和商業領域的一些非常大的重大交易。其中一些非常大的交易是基金池交易，從目前的 RPO 和帳單角度來看，它們的形式非常不同。其中一個跡像是 RPO，它同比增長了 40%，您可以看到這種勢頭更加中和，一些噪音也消失了。但毫無疑問，這項業務正在變得更加複雜。從季度到季度的角度來看，這也反映在更多的噪音中。但總的來說，我們對本季的表現非常滿意。

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)。

Great. Congrats on a nice quarter. I wanted to start with a question on Workers AI because I think it's one of the most exciting products that you have in your portfolio. You mentioned Workers AI and developers are using your platform to build some new AI applications. Can you just give us some examples of maybe what those apps are and why they chose Workers AI to build on among the many other alternatives out there?

偉大的。恭喜您度過了一個美好的季度。我想從一個關於 Workers AI 的問題開始，因為我認為這是你們產品組合中最令人興奮的產品之一。您提到 Workers AI 和開發人員正在使用您的平台建立一些新的人工智慧應用程式。您能否給我們舉一些例子，說明這些應用程式是什麼以及為什麼他們選擇 Workers AI 在眾多其他替代方案中建構？

Yes, Andrew, I -- as I said, one of the most fun parts of my job is getting to see what developers are building. So let me give you a handful of examples off the top of my head and see if any of these are interesting. You can stop me if they get boring. I think one of the largest e-commerce platforms out there is starting to use Workers AI to do image classification and generate keywords for their shops. A start-up in the drone space is taking imagery and turning it into 3D models and using Workers AI to do that. They service around the globe, and so that's interesting. A handful of the public platform companies are using Workers AI for video description, transcribing, translation, all those things as AI. A multinational online food ordering company, every once in a while, a restaurant does submit a picture for one of the dishes. And so they're actually experimenting with Workers AI to generate pictures of the food that you're serving. Hopefully, they disclosed that it's not an actual picture.

是的，安德魯，我——正如我所說，我工作中最有趣的部分之一就是了解開發人員正在建立什麼。因此，讓我隨手舉幾個例子，看看其中是否有趣。如果他們覺得無聊你可以阻止我。我認為最大的電子商務平台之一已經開始使用 Workers AI 進行影像分類並為其商店產生關鍵字。無人機領域的一家新創公司正在拍攝影像並將其轉換為 3D 模型，並使用 Workers AI 來實現這一點。他們在全球範圍內提供服務，這很有趣。一些公共平台公司正在使用 Workers AI 進行視訊描述、轉錄、翻譯，所有這些都是人工智慧。一家跨國線上訂餐公司，每隔一段時間，一家餐廳就會提交其中一道菜的​​圖片。因此，他們實際上正在嘗試使用 Workers AI 來產生您所提供食物的圖片。希望他們透露這不是真實的照片。

A handful of photo and video editing platforms are using Workers AI or evaluating it in order to do image enhancement and make that better. There's a start-up that's generating songs in whatever language you speak and local languages and they're using Workers AI in order to power their song generation platform. We're thinking about a large consulting companies, public companies, the big gaming company, all of which are actually worried about Shadow AI, and so they're actually using Workers AI gateway in order to understand how their own teams are using Workers. A start-up is using a series of enterprise summarization tools where they can look at a bunch of e-mails and very quickly summarize them into executive reports. There's another start-up that's creating an AI search engine. There's a public company in the financial services space that's doing real-time fraud detection. There are people who are finding ways to -- in the renovation space, how can you imagine, before you hire a contractor, what the space is going to look like in another sense. I mean I'll just go on and on and on with example after example after example. And our team just hands these to us every day, and it's so exciting to see what people are doing in this space and the different ways that they're using it.

一些照片和影片編輯平台正在使用 Workers AI 或對其進行評估，以進行影像增強並使其變得更好。有一家新創公司可以用您所說的任何語言和當地語言生成歌曲，他們正在使用 Workers AI 為其歌曲生成平台提供支援。我們正在考慮大型顧問公司、上市公司、大型遊戲公司，所有這些公司實際上都擔心 Shadow AI，因此他們實際上正在使用 Workers AI 閘道來了解自己的團隊如何使用 Workers。一家新創公司正在使用一系列企業摘要工具，他們可以查看一堆電子郵件並非常快速地將它們總結為執行報告。還有另一家新創公司正在創建人工智慧搜尋引擎。金融服務領域有一家上市公司正在進行即時詐欺偵測。有些人正在想辦法——在裝修空間中，在僱用承包商之前，你如何想像這個空間在另一種意義上會是什麼樣子。我的意思是我會不斷地舉例。我們的團隊每天都會將這些交給我們，看到人們在這個領域所做的事情以及他們使用它的不同方式真是令人興奮。

In terms of why, what is it about Cloudflare that's unique? I think there are sort of 3 things that stand out to me about it. The first is just the performance of Cloudflare Workers AI because we are distributed around the world and today, over 150 locations globally, as we serve customers that serve a global audience, we can just give them a much better experience in having to ship all of your code back to some central location.

為什麼 Cloudflare 有什麼獨特之處？我認為有三件事對我來說很突出。第一個是Cloudflare Workers AI 的表現，因為我們分佈在世界各地，如今在全球有150 多個地點，當我們為服務全球受眾的客戶提供服務時，我們可以為他們提供更好的體驗，因為他們必須運送所有您的代碼返回到某個中心位置。

The second is that we can actually be significantly more cost effective. If you're using one of the big hyperscale clouds in order to do any sort of AI task, it's up to you to manage efficiency. You have to make sure that you're getting the most out of the GPU that you're renting whereas what we do is much more of a serverless AI model where you only pay for the task that you actually run. So especially in a lot of the start-ups, they're finding that they can just get significant better efficiency, significant better cost if they use our platform in order to deliver that AI experience. And then the third thing is that because we got it distributed globally and because of the fact that we have such a rich ecosystem that we've built, where you can get a soup-to-nuts AI experience, that's allowing people to actually fine-tune their models.

第二是我們實際上可以顯著提高成本效益。如果您使用大型超大規模雲端之一來執行任何類型的人工智慧任務，則由您來管理效率。您必須確保充分利用租用的 GPU，而我們所做的更多是無伺服器 AI 模型，您只需為實際運行的任務付費。因此，特別是在許多新創公司中，他們發現，如果他們使用我們的平台來提供人工智慧體驗，他們就能獲得顯著更高的效率和顯著更低的成本。第三件事是，因為我們將其分佈在全球範圍內，並且因為我們建立瞭如此豐富的生態系統，您可以在其中獲得全面的人工智能體驗，這讓人們實際上很好-調整他們的模型。

And so my silly example of this is that if you have an AI that's responding back to a British user and describing what something looks like versus a U.S. user, in the U.K., you want color to be spelled C-O-L-O-U-R. In the U.S., you wanted to be sell C-O-L-O-R, because we can regionally tune that. We can actually correspond all of the local and regional differences all around the world. That's something that you don't get anywhere else. And that, I think, is going to be really important for these inference tasks. They're going to want to be run locally for both the normative and experienced reasons, but also for the regulatory reasons that are out there. So I'm super excited about what we're seeing in the AI space. I'm really proud of our team for being ahead of our rollout. We had to actually physically get gear to over 150 cities worldwide. And we're still on track to, by the end of this year, we think, be able to do AI inference from nearly every location that makes up Cloudflare network.

所以我舉的這個愚蠢的例子是，如果你有一個人工智慧，它可以響應英國用戶並描述與美國用戶相比的情況，在英國，你希望顏色拼寫為 C-O-L-O-U-R。在美國，你想出售 C-O-L-O-R，因為我們可以根據地區進行調整。我們實際上可以對應世界各地所有的地方和區域差異。這是你在其他地方得不到的東西。我認為，這對這些推理任務來說非常重要。出於規範和經驗的原因，以及現有的監管原因，他們希望在本地運作。所以我對我們在人工智慧領域所看到的一切感到非常興奮。我為我們的團隊領先我們的推出感到非常自豪。我們必須親自將裝備運送到全球 150 多個城市。我們認為，到今年年底，我們仍然有望從構成 Cloudflare 網路的幾乎每個位置進行人工智慧推理。

Well, that was an incredibly comprehensive answer. Maybe just a quick one for Thomas. You guys have made some great new hires beefing up your go-to-market on the channel side with Tom Evans and of course, Mark Anderson. I know you talked about the uncertain macro in the short term, but I was wondering if you're factoring in any sort of conservatism into your annual outlook for the go-to-market changes that you guys are -- might make as a reason for perhaps not raising your guidance despite the strong Q1.

嗯，這是一個非常全面的答案。也許對托馬斯來說只是一個快速的過程。你們聘請了一些出色的新員工，與湯姆·埃文斯（Tom Evans）以及馬克·安德森（Mark Anderson）一起加強了通路方面的市場推廣。我知道您談到了短期內不確定的宏觀經濟，但我想知道您是否將任何形式的保守主義因素納入您對進入市場變化的年度展望中，這可能是一個原因儘管第一季度表現強勁，但您可能不會提高您的指導。

As you know, conservative is not a word that we use. When we talk about giving guidance, we tend to be thoughtful and prudent about it. And of course, it's a balance of the tailwinds we see, but also the uncertainty that is out there and every major go-to-market transformation. In our case, it's actually more an evolution. There is risk, and it's reflected in our guidance, too.

如您所知，我們不使用“保守”這個詞。當我們談論提供指導時，我們往往會深思熟慮和謹慎行事。當然，這是我們看到的有利因素的平衡，但也是存在的不確定性和每一次重大的市場轉型。就我們而言，這實際上更多的是一種演變。風險是存在的，這也反映在我們的指導上。

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

您的下一個問題來自 Jefferies 的 Brent Thill。

Matthew, on federal, the last couple of quarters, you had a theme of some pretty big wins. And I'm just curious if you could give us a sense of where you think penetration is. And is it fair to say the flywheel is spinning faster here, at least from what you guys are giving us in terms of the breadcrumbs around the federal business?

馬修，關於聯邦，過去幾個季度，你的主題是一些相當大的勝利。我只是好奇你能否讓我們了解一下你認為滲透力在哪裡。至少從你們向我們提供的有關聯邦業務的麵包屑來看，可以公平地說飛輪在這裡旋轉得更快嗎？

Yes. I think federal is exciting for us. Last year, we achieved FedRAMP certification. That's opened a lot of FedRAMP -- excuse me, of federal deals to us. I think we've always had a great relationship with a lot of the members of the federal government. I think the thing, which is hard to appreciate that, as I talked to our federal customers, is how much they appreciate that when they ask us to help with something, we step up and help. So this year in the United States, obviously, is an election year, we've been running the Athenian Project since 2016, which provides our services at no cost to anyone who is helping administer an election anywhere in the United States.

是的。我認為聯邦對我們來說是令人興奮的。去年，我們獲得了 FedRAMP 認證。這為我們開啟了許多聯邦交易——對不起，是聯邦交易。我認為我們一直與聯邦政府的許多成員保持著良好的關係。我認為，當我與我們的聯邦客戶交談時，很難理解的是，當他們要求我們提供幫助時，我們會挺身而出並提供幫助。因此，今年在美國顯然是選舉年，我們自 2016 年以來一直在運行雅典項目，該項目為任何在美國任何地方幫助管理選舉的人免費提供我們的服務。

We've done similar things around the rest of the world. We've worked with the White House on a number of initiatives, including Project Safe Schools (sic) [Project Cybersafe Schools] in order to protect the most vulnerable schools and communities across the country. And that is all the foundation which I think has built an incredible amount of trust and an incredible amount of goodwill in the federal space. And so today, as the world is getting scarier and scarier and we're seeing more and more cyberattacks, the federal -- our federal business, I think, is being driven by the fact that we have great products, the fact that we have the certifications that are required to serve the federal government and the fact that we've built an incredible relationship as being not just a trusted vendor, but a true partner where we have helped make sure that when there's any public institution that is in true need anywhere across the country, we step up and help. And I think that's now turning into more and more business that is also generating significant revenue for us.

我們在世界其他地方也做了類似的事情。我們與白宮合作實施了多項舉措，包括安全學校計畫（原文如此）[網路安全學校計畫]，以保護全國最脆弱的學校和社區。我認為這就是在聯邦領域建立了令人難以置信的信任和令人難以置信的善意的所有基礎。因此，今天，隨著世界變得越來越可怕，我們看到越來越多的網路攻擊，我認為，我們的聯邦業務正在受到以下事實的推動：我們擁有出色的產品，我們擁有為聯邦政府服務所需的認證，以及我們建立了令人難以置信的關係的事實，我們不僅是值得信賴的供應商，而且是真正的合作夥伴，我們幫助確保當有任何公共機構真正需要時在全國任何地方，我們都會挺身而出並提供幫助。我認為這現在正在變成越來越多的業務，也為我們帶來了可觀的收入。

And then just quickly for you and Thomas, this AI CapEx war debate, you saw all the big hyperscalers take CapEx way up. How do you do this efficiently? You mentioned bringing gear to 150 cities. You're ahead in GPU rollout. Explain how you're -- is this only which way -- only one way to do with costs? Or is there a way you can do this in a more efficient way than maybe others?

然後，對於您和托馬斯來說，很快，在這場人工智慧資本支出戰爭辯論中，您就看到所有大型超大規模企業的資本支出都在大幅上升。你如何有效地做到這一點？您提到將裝備帶到 150 個城市。您在 GPU 推出方面處於領先地位。解釋一下你是如何處理成本的——這只是一種方式嗎？或者有什麼方法可以比其他方法更有效地做到這一點？

I'll start and then Thomas may have more to add. I think the thing, which is really magical about Cloudflare's business, which is really elegant, is that it all fits together so well. So for instance, as we sell more of our Zero Trust and SASE products, those are extremely high-margin products, and they don't require a significant additional amount of CapEx. That then frees up our ability to invest that CapEx in other areas, including in the AI space. I think we made some very smart decisions, specifically reserving space and the equipment that we deployed knowing that AI would be part of our story at some point in the future. And so we really wanted to make sure that's the case. That means that as we deploy CapEx, it's literally not shipping an entire server to support AI, but shipping just the GPU cards that go into existing servers that are in the field. That reduces the amount of CapEx that has to be deployed. And again, it works because it is all running on one unified network. The fact that every server across Cloudflare's entire platform is capable of performing any function that we need, that has allowed us an enormous amount of flexibility in how we can deploy things and has helped us.

我先開始，然後托馬斯可能還有更多要補充的。我認為 Cloudflare 業務的真正神奇之處在於，它非常優雅，一切都完美地結合在一起。例如，當我們銷售更多的零信任和 SASE 產品時，這些產品都是利潤率極高的產品，不需要大量額外的資本支出。這樣我們就有能力將資本支出投資到其他領域，包括人工智慧領域。我認為我們做出了一些非常明智的決定，特別是預留空間和我們部署的設備，因為我們知道人工智慧將在未來的某個時候成為我們故事的一部分。所以我們真的想確保情況確實如此。這意味著，當我們部署資本支出時，實際上並不是運送整個伺服器來支援人工智慧，而是僅運送進入現場現有伺服器的 GPU 卡。這減少了必須部署的資本支出。再說一遍，它之所以有效，是因為它全部運作在一個統一的網路上。事實上，Cloudflare 整個平台上的每台伺服器都能夠執行我們需要的任何功能，這使我們在部署方面具有巨大的靈活性，並且對我們很有幫助。

The other part is that a lot of the hyperscale players, what they're really doing is they're renting out a full GPU or a full machine, whereas our business is a little bit different. We're selling the actual work that those machines do. What that means is that we can then be much more efficient at figuring out how to allow multi-tenant use of the equipment that we have provided, and we can make sure that the utilization is extremely high. So if -- and again, these are -- I don't know the exact numbers for each of the hyperscalers and they all have different -- slightly different characteristics. But in the average hyperscaler, if they're getting maybe 20% utilization out of a CPU or GPU resources that they've deployed, we can often be many times that in terms of the utilization where in CPUs we're seeing almost 80% utilization. So that efficiency allows us to get more out of every CapEx dollar.

另一方面是，許多超大規模玩家實際上在做的是出租完整的 GPU 或完整的機器，而我們的業務有點不同。我們出售的是這些機器所做的實際工作。這意味著我們可以更有效地弄清楚如何允許多租戶使用我們提供的設備，並且我們可以確保利用率極高。因此，如果——再說一次，這些是——我不知道每個超大規模的確切數字，而且它們都有不同的——略有不同的特徵。但在普通的超大規模企業中，如果他們從所部署的CPU 或GPU 資源中獲得了20% 的利用率，那麼就利用率而言，我們通常可以達到這個數字的很多倍，而在CPU 中，我們看到的利用率幾乎是80%利用率。因此，這種效率使我們能夠從每一美元資本支出中獲得更多收益。

Finally, I would say that inference is different than training. And so you need different resources for that. You don't need necessarily the most cutting-edge GPUs in order to do inference tasks. And so that has meant that we haven't had to chase down what is a -- GPUs that have limited quantity. It's also meant that we can be much smarter about picking and choosing between different GPU vendors and matching workloads to whoever it is that can provide the best service. And I think over time, that gives us a significant advantage over people who are just trying to rent one particular type of GPU or rent that and let their customers figure out how to be as efficient as possible.

最後，我想說推理與訓練不同。因此，您需要不同的資源。您不一定需要最先進的 GPU 來執行推理任務。因此，這意味著我們不必追尋數量有限的 GPU。這也意味著我們可以更明智地在不同的 GPU 供應商之間進行挑選，並將工作負載與能夠提供最佳服務的供應商相匹配。我認為隨著時間的推移，這會為我們帶來顯著的優勢，而不是那些只是試圖租用特定類型的GPU 或租用該GPU，然後讓他們的客戶弄清楚如何盡可能提高效率的人。

There's not much to add to this. We were at 8% to 9% of revenue with network CapEx in the first quarter. We said the year will be close in the range of 10 to 12, and this includes the rollout of GPU capacity pretty much to every server and every location we have. I think the -- just to underline what Matthew just said, the huge variety of use cases we see and that Matthew talked about when he talked about Workers AI deployment with developers gives us huge insight in how we optimize this capacity, and there's not one card that is good for every inference task. And this ability to optimize our investment mix in GPU capacity to that need based on the huge variety of use cases we see is, I think, an additional big factor that allows us to be so efficient with our CapEx spend.

對此沒有太多可補充的。第一季我們的網路資本支出佔營收的 8% 至 9%。我們說過，今年將在 10 到 12 年左右，這包括將 GPU 容量部署到我們擁有的幾乎每台伺服器和每個位置。我認為——只是為了強調Matthew 剛才所說的，我們看到的各種各樣的用例以及Matthew 在與開發人員談論Workers AI 部署時所談到的，讓我們對如何優化這一能力有了深入的了解，而且沒有一張適用於每項推理任務的卡片。我認為，這種根據我們看到的各種用例來優化 GPU 容量投資組合以滿足需求的能力，是使我們能夠如此有效地利用資本支出的另一個重要因素。

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。

Great execution in the quarter, 30% top line growth. Matthew, one for you and a follow-up for Thomas. Matthew, you talked a lot about hiring of go-to-market talent. And just inflecting on that, how is -- there seems to be a war on talent for AI engineers. You've seen a few companies do acqui-hires where they're just draining talent. Curious where Cloudflare is with hiring and retaining talent and if it's fitting into your normal compensation things, capacity.

本季執行力出色，營收成長 30%。馬修，一個給你，一個給湯瑪斯。馬修，您談到了很多關於招募市場人才的問題。就這一點而言，人工智慧工程師的人才爭奪戰似乎正在發生。你已經看到一些公司進行收購，但實際上卻在流失人才。很好奇 Cloudflare 在招募和留住人才方面的進展，以及它是否符合您的正常薪酬、能力。

Yes. I mean I think we are very fortunate that across the board, we are seen as a place where if you want to be innovative, if you want to invent the future, or if you want to sell really incredible products or help market them or frankly, work on some of the hardest public policy issues or get to work with Thomas on the world's coolest finance team, that you -- that Cloudflare is a place where you can go. And so when you see someone like Mark Anderson, when you see someone like Stephanie Cohen, you see the engineers who are coming to Cloudflare every day. We had 350,000 people apply to work at Cloudflare in Q1 for, I don't know, 250 jobs roughly. That's extraordinary. And that is -- and that's up over what was an extraordinary Q1 of last year, up almost 50% year-over-year. So I'm -- I think that the talent war is real, but we are in a fortunate position where we are winning that war. We have not seen an uptick in any regrettable attrition. It's been -- it's -- I think we're very fortunate to be working on some of the world's hardest problems. And some of the smartest people in the world want to come and help us on this.

是的。我的意思是，我認為我們非常幸運，從整體上來說，如果你想創新，如果你想發明未來，或者如果你想銷售真正令人難以置信的產品或幫助行銷它們，或者坦率地說，我們被視為一個地方。因此，當您看到像 Mark Anderson 這樣的人，當您看到像 Stephanie Cohen 這樣的人時，您會看到每天來到 Cloudflare 的工程師。第一季有 35 萬人申請在 Cloudflare 工作，我不知道，大約有 250 個職位。這太了不起了。這比去年的第一季表現出色，年增近 50%。所以我——我認為人才戰爭是真實存在的，但我們處於一個幸運的位置，我們正在贏得這場戰爭。我們沒有看到任何令人遺憾的人員流失增加。我認為我們非常幸運能夠解決世界上一些最困難的問題。世界上一些最聰明的人想來幫助我們解決這個問題。

That's great. And Thomas, for you, just in terms of sales productivity, really strong improvement again. Do you expect that to change with the acceleration of new hires, sales hires? Or are you hiring more experienced people so their time to productivity is shorter?

那太棒了。湯瑪斯，對你來說，就銷售效率而言，再次有了真正強勁的進步。您預計這種情況會隨著新員工、銷售人員的增加而改變嗎？或者您正在僱用更有經驗的人員，以便縮短他們發揮生產力的時間？

This is, of course, what the goal is. But even if you hire experienced people, there's a ramp-up curve that comes along with it. We are moving up market. We are getting to larger and larger customers and more strategic accounts. They're more complex. There's more overlay. So this balances itself out. We hire trade talent. We see great productivity improvement. But as I said earlier, every transformation or evolution in the go-to-market side comes with potential risk, and we try to be thoughtful when we give guidance that there might be downside implied.

當然，這就是目標。但即使你僱用了有經驗的人，也會有一個上升曲線。我們正在向高端市場邁進。我們正在接觸越來越大的客戶和更具策略性的客戶。它們更複雜。還有更多的疊加。所以這本身就平衡了。我們聘請貿易人才。我們看到生產力的巨大提高。但正如我之前所說，進入市場方面的每一次轉變或演變都伴隨著潛在的風險，當我們給出可能存在下行風險的指導時，我們會盡力深思熟慮。

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

你的下一個問題來自威廉布萊爾的喬納森何 (Jonathan Ho)。

I just wanted to follow up on that last question and just try to better understand from a sales productivity standpoint, what inning are we in? And where do you think Mark can add the most value?

我只是想跟進最後一個問題，並試圖從銷售生產力的角度更好地理解我們現在處於哪一局？您認為馬克可以在哪裡增加最大的價值？

I'll start and then Thomas can maybe add some more if he has it. I think that -- I think we are still early in the journey of being really great at Enterprise. I think in Mark's comments, he said that our product is great, but our ability to really sell to large enterprises to understand their needs and drive more of a strategic relationship is something that we are continuing to work on. That is -- I think the last 18 months were all about us sort of cleaning up the sales organization. And now with Mark on board, it's all about now how do we get the real professionals on board, where we can become that strategic vendor for literally every large company in the world. There is no large company that doesn't have a need for what it is that we sell.

我先開始，然後托馬斯如果有的話也許可以添加更多。我認為——我認為我們還處於成為 Enterprise 真正偉大的旅程的早期階段。我認為在馬克的評論中，他說我們的產品很棒，但我們真正有能力向大型企業銷售以了解他們的需求並推動更多的策略關係，這是我們正在繼續努力的事情。也就是說，我認為過去 18 個月我們都在清理銷售組織。現在馬克加入了，現在的重點是我們如何吸引真正的專業人士加入，我們可以成為世界上幾乎每家大公司的策略供應商。沒有一家大公司不需要我們銷售的產品。

What I think is really encouraging is where we have done that, where we have really nailed that. We are becoming one1 of the largest IT vendors for those companies. And some of those are very large companies. I think the fact that we won a very large financial services organization and became a strategic vendor for them, that -- and that, as I said, is a beachhead for us to go in and take much more share. Almost all the financial -- major financial services institutions in the United States use us for something. But I want to say that we're a strategic vendor for many of them yet. We're going to be. And we can do so many things in the networking and security space that they absolutely need. And as we, I think, mature that process, it's great. I can't imagine someone who is better for this role than Mark Anderson. And again, it was not the plan when we added him to our Board 4 years ago, but he's gotten to know us over that period of time. And it's just incredible to see the high caliber of talent who is excited to lean forward and work with him going forward.

我認為真正令人鼓舞的是我們已經做到了這一點，而我們確實做到了這一點。我們正在成為這些公司最大的 IT 供應商之一。其中一些是非常大的公司。我認為，我們贏得了一個非常大的金融服務組織並成為他們的戰略供應商，正如我所說，這是我們進入並獲得更多份額的灘頭陣地。幾乎所有美國的主要金融服務機構都使用我們的服務。但我想說，我們仍然是其中許多公司的策略供應商。我們會的。我們可以在網路和安全領域做很多他們絕對需要的事情。我認為，當我們使這個過程變得成熟時，那就太好了。我無法想像還有誰比馬克安德森更適合這個角色。再說一遍，這並不是我們四年前將他加入董事會時的計劃，但他在那段時間逐漸了解了我們。看到這些高素質的人才興奮地向前邁進並與他一起工作，真是令人難以置信。

Excellent. And just a quick follow-up. Is there something specific in the macro that's maybe causing you a little bit of pause? Anything that you can sort of point to in terms of that additional concern on the outlook.

出色的。只是快速跟進。巨集中是否有某些特定內容可能會導致您稍微停頓？就對前景的額外擔憂而言，您可以指出的任何內容。

I think that we get a lot of signal based on where we sit on the Internet. And what I would say right now is that it's not any one thing pointing in any one clear direction. But there's a lot of noise pointing in a number of different directions that give us, I think, reason to be cautious. And I think that, that is in our very nature, is always taking as much signal being data-driven and making sure that we're making investments in a responsible way. And so I think the obvious thing is the geopolitical uncertainty around the world. That absolutely causes changes in buying behavior.

我認為我們根據我們在互聯網上的位置獲得了很多信號。我現在要說的是，這並不是任何一件事指向任何一個明確的方向。但我認為，有很多不同方向的噪音讓我們有理由保持謹慎。我認為，這就是我們的本質，總是盡可能地採用數據驅動的訊號，並確保我們以負責任的方式進行投資。所以我認為顯而易見的是世界各地的地緣政治不確定性。這絕對會導致購買行為的改變。

On the other hand, some of that changes -- those changes in buying behavior have been positive for us as we're seeing, especially in our government business, pick up because of that uncertainty. So there are puts and takes that are out there. What we want to do is just make sure that we are being prudent and responsible and thoughtful as we make investments and as we think through how to handle the responsibility that we have with investors capital and that they've trusted us with.

另一方面，正如我們所看到的，購買行為的一些變化對我們來說是積極的，特別是在我們的政府業務中，由於這種不確定性而增加。因此，存在看跌期權和賣出期權。我們想要做的只是確保我們在進行投資時保持謹慎、負責和深思熟慮，並思考如何處理我們對投資者資本的責任以及他們對我們的信任。

Your next question comes from the line of Tom Blakey from KeyBanc Capital Markets.

您的下一個問題來自 KeyBanc Capital Markets 的 Tom Blakey。

Matt, I was wondering about the recent Nefeli acquisition around multi-cloud networking and a possible acceleration to Act 2, this prior question on Zero Trust SASE services. I guess specifically, maybe because of the impetus of the deal, maybe there was some pent-up demand that maybe this addition of multi-cloud networking technology could maybe expand Cloudflare's reach from a Zero Trust perspective, I'd love to hear your comments there. And I have a follow-up.

Matt，我想知道最近 Nefeli 圍繞多雲網路的收購以及可能加速實施第二幕，這是關於零信任 SASE 服務的先前問題。我想具體來說，也許是由於交易的推動，也許有一些被壓抑的需求，也許這種多雲網絡技術的增加可以從零信任的角度擴大 Cloudflare 的影響範圍，我很想听聽您的評論那裡。我有一個後續行動。

Yes. We're incredibly excited to have the Nefeli team on board. We want to make it -- we think the space that Cloudflare competes in is in the networking and in the security space. And so making it very easy to get traffic on to our network to connect to any other cloud is just a critical aspect and it seemed like something that we were either going to have to build or buy. And we came across the Nefeli team in part because they came in through our own launch pad program, which is a program having customers that -- and start-ups that use Cloudflare's resources and especially our workers' platform in order to build.

是的。我們非常高興 Nefeli 團隊加入。我們希望做到這一點——我們認為 Cloudflare 的競爭空間是網路和安全領域。因此，使我們的網路流量能夠非常輕鬆地連接到任何其他雲端只是一個關鍵方面，這似乎是我們必須建造或購買的東西。我們遇到 Nefeli 團隊的部分原因是他們透過我們自己的啟動板計劃加入，該計劃的客戶以及新創公司使用 Cloudflare 的資源，特別是我們的員工平台來進行構建。

What is powerful about that is we use that same platform to build ourselves. And so when we find great teams working in a space that we think is exciting, building on the same platform, the same platform that our own team uses, that just decreases the risk of any kind of technical integration, any kind of sort of Frankenstein-ing of your platform that's out there. And so the Nefeli team was really great, and we were excited to announce it. We think that, again, our hurdle rate for acquisitions and M&A remains very, very high. But these -- some of these small acquisitions, where we found great teams working in interesting spaces, has worked incredibly well for us.

其強大之處在於我們使用相同的平台來建立自己。因此，當我們發現優秀的團隊在我們認為令人興奮的空間中工作時，在我們自己的團隊使用的相同平台上構建，這只會降低任何類型的技術集成、任何類型的弗蘭肯斯坦的風險-你的平台在那裡。 Nefeli 團隊真的很棒，我們很高興宣布這一消息。我們再次認為，我們收購和併購的障礙率仍然非常非常高。但這些——其中一些小型收購，我們發現了在有趣的領域工作的優秀團隊，對我們來說效果非常好。

A couple of other examples that are very similar. Baselime that we acquired is, again, giving server observability to our platform. It's one of the #1 things that developers on our platform were looking for. And again, another time where we found someone that is using our own platform in order to build out a great observability platform there. PartyKit, which is a real-time integration service, again, it's just a natural extension of what it is that we're doing. So again, none of these are very large acquisitions, but I think they're extremely strategic. I think they accelerate our ability to get into more markets.

還有幾個非常相似的其他例子。我們收購的 Baselime 再次為我們的平台提供了伺服器可觀察性。這是我們平台上的開發人員正在尋找的第一大東西之一。還有一次，我們發現有人正在使用我們自己的平台來建立一個出色的可觀察性平台。 PartyKit 是一種即時整合服務，同樣，它只是我們正在做的事情的自然延伸。再說一次，這些收購都不是非常大規模的收購，但我認為它們極具戰略意義。我認為它們增強了我們進入更多市場的能力。

And what I love is that they oftentimes are using our own existing developer platform, which means that they are just incredibly easy for us to integrate with the rest of Cloudflare and decrease the technical risk as we go with M&A. In all 3 of those cases, also, the founders and the team, they're just sort of Cloudflare-like people and they're people that we're so excited and proud to have on the team. And I think you'll hear more about the wins that we have from all those areas over the quarters to come.

我喜歡的是，他們經常使用我們自己現有的開發者平台，這意味著我們可以非常輕鬆地與 Cloudflare 的其他部分集成，並降低我們進行併購時的技術風險。在所有這 3 個案例中，創辦人和團隊都是類似 Cloudflare 的人，我們為能加入團隊而感到非常興奮和自豪。我認為您會更多地了解我們在未來幾個季度從所有這些領域取得的勝利。

Well, that would be great to get more high-margin SASE revenue here. And I'd like to go as a segue there, back to Brent's question on GPU, and I think he gave a great question about the unique architecture of the platform and this kind of multi-tenancy. But just seeing the explosive growth with other DSPs and the approach that folks are taking there, is it fair to characterize this way that CapEx would have to go up relatively significantly if, say, a handful of these applications is being built on your platform will explode to the like of something like a copilot?

好吧，如果能在這裡獲得更多高利潤的 SASE 收入那就太好了。我想繼續回到 Brent 關於 GPU 的問題，我認為他就平台的獨特架構和這種多租戶提出了一個很好的問題。但是，只要看到其他 DSP 的爆炸性增長以及人們所採取的方法，就可以公平地描述這樣的方式：如果在您的平台上構建其中少數應用程序，那麼資本支出將必須相對顯著增加。副駕駛之類的東西？

Well, I think that what I would look at is CapEx as a percentage of revenue. And I think one of the things that's always been magical about Cloudflare has been that we've been able to invest behind the demand, not ahead of the demand. And so we're really good at rolling out more capacity wherever we need it. And so that would be an amazing problem to have. If we have to -- we -- so it may be that we, on a just pure dollars basis, end up spending more on GPUs. But as a percentage of revenue, we feel very comfortable that we can service these applications very well at the percentage of revenues that it is in our forecast going forward.

嗯，我認為我會關注資本支出佔收入的百分比。我認為 Cloudflare 一直以來的神奇之處之一是我們能夠在需求之後進行投資，而不是在需求之前進行投資。因此，我們非常擅長在需要的地方提供更多容量。所以這將會是一個令人驚奇的問題。如果我們必須——我們——那麼，從純粹的美元角度來看，我們最終可能會在 GPU 上花費更多。但從佔收入的百分比來看，我們感到非常放心，我們可以按照我們預測的收入百分比很好地為這些應用程式提供服務。

What I would want to add here is we -- the efficiency of the architecture is really driving this. We talked about the revenue mix that allows us to invest into GPUs by more and more revenue driven by Zero Trust products. The efficiency that is driven in the hardware architecture is an additional factor that goes into this. We are in the rollout of what we call Generation 12 now of our service architecture. It's a little bit more than 25% total cost of ownership reduction in this new generation. So that is 25% more of CapEx we can deploy towards GPUs. So the levers are just not in one place, they are in many places, and the combination of this is really driving this incredible efficiency.

我想在這裡補充的是，架構的效率確實推動了這一點。我們討論了收入組合，使我們能夠透過零信任產品帶來的越來越多的收入來投資 GPU。硬體架構中驅動的效率是其中的另一個因素。我們現在正在推出我們所謂的第 12 代服務架構。新一代產品的總擁有成本降低了 25% 以上。因此，我們可以將 25% 的資本支出部署到 GPU 上。因此，槓桿不在一個地方，而是在很多地方，這兩者的結合確實推動了這種令人難以置信的效率。

That's great. Well, maybe we'll look for you breaking out AI or gen AI revenue one of these days, Thomas.

那太棒了。好吧，也許有一天我們會尋找你突破人工智慧或創造人工智慧收入，托馬斯。

As soon as it is the right thing to do. At the moment, I think we shouldn't get tired that the benefit in driving adoption is significantly more important than driving more revenue in the short term. This is why the efficiency is high is we see so many use cases from 2 million developers being on the platform. This far-sided approach has served us well, and we'll continue with it.

只要這是正確的事情就可以。目前，我認為我們不應該感到厭倦，因為推動採用的好處比短期內增加收入重要得多。這就是為什麼效率很高的原因，因為我們看到平台上有 200 萬開發人員的大量用例。這種偏遠的方法對我們很有幫助，我們將繼續這樣做。

Our next question comes from the line of Alex Henderson from Needham.

我們的下一個問題來自李約瑟的亞歷克斯·亨德森（Alex Henderson）。

Great. I wanted to ask a question about your comments about the macro conditions. About 2 years ago, I think, it was you guys gave an early warning that the economy had some risks to it and that you were seeing signs of slowdown. And that actually occurred 6, 9, 12 months later. And so with this commentary on this call, are you suggesting that you're seeing similar kind of characteristics to the conditions? Or is this just a little bit more noise to it, and therefore, you're being prudent, but you just don't have any visibility to whether that's going to happen yet? Can you contrast this event to several years ago when you gave that caution?

偉大的。我想問一下您對宏觀條件的評論。我想，大約兩年前，你們就發出了早期警告，稱經濟存在一些風險，並且看到了放緩的跡象。這實際上發生在 6、9、12 個月後。因此，透過對這次電話會議的評論，您是否表明您看到了與情況類似的特徵？或者這只是多了一點噪音，因此，你很謹慎，但你只是不知道這是否會發生？您能否將此事件與幾年前您發出警告時的情況進行對比？

Yes, Alex. So I -- 2 years ago, I felt like we had a pretty clear signal that the economy was slowing down. I would say that we don't have as clear of signal today that that's the case. We -- it's -- we see things that worry us, but we also see things that give us some level of optimism. And so I think describing the crystal ball as cloudy is the right thing. What I like though is that we have a crystal ball. We can make investments and we can think through what that future looks like, in part because we just get much more signal than I think the average enterprise SaaS company gets. And I think that, that has served us well. And I think we try not to be surprising in any way. And so as we see -- I would say that there is certainly an uptick in uncertainty and sort of potential downside this quarter over last quarter. But I would not characterize it as the same concerns that I had in Q1 of '20 -- what was that, '22 where we saw what we thought was much, much clearer. So we continue to watch this. Again, I feel like I am proud of how well Thomas and the rest of the team have the ability to take that and keep their hands on the levers of our business and continue to execute. But I'm not -- I think my level of concern is not at the same level that it was in Q1 of 2022, but it is definitely heightened over a lot of what we've seen in more recent quarters.

是的，亞歷克斯。所以我——兩年前，我覺得我們有一個非常明確的訊號，表明經濟正在放緩。我想說的是，我們今天沒有明確的信號表明情況確實如此。我們——確實——我們看到了讓我們擔心的事情，但我們也看到了讓我們感到一定程度樂觀的事情。所以我認為將水晶球描述為渾濁是正確的。但我喜歡的是我們有一個水晶球。我們可以進行投資，我們可以思考未來會是什麼樣子，部分原因是我們得到的訊號比我認為一般企業 SaaS 公司得到的訊號要多得多。我認為這對我們很有幫助。我認為我們盡量不以任何方式感到驚訝。因此，正如我們所看到的，我想說，與上季相比，本季的不確定性肯定有所增加，並且存在某種潛在的下行趨勢。但我不會將其描述為我在 20 年第一季所擔心的問題 - 那是什麼，22 年我們看到了我們認為更加清晰的情況。所以我們繼續關注這一點。再次，我為托馬斯和團隊其他成員有能力抓住這一點並抓住我們業務的槓桿並繼續執行而感到自豪。但我不是——我認為我的擔憂程度與 2022 年第一季不同，但與我們最近幾季看到的許多情況相比，這種擔憂肯定有所加劇。

So if nothing is really spooking you here, I'm still struggling with the guidance and the outlook for the back half of the year. You've given guidance that -- or commentary that you're seeing significant strengthening of your pipeline. You're saying your duration is stable. You're seeing solid closure rates. You're adding more sales capacity. You're winning large customer deals at an accelerating rate. You're spending more on hiring people and productivity. And your sales force is significantly improving. Yet your guidance implies with the first quarter beat and the second quarter are above the Street, the back half is much more conservative. So I guess the question is, is that a function of specific weakness in a particular geography or due to political issues? Or is it just trying to feather in more opportunity for the sales organization to be realigned as Mark comes on and drives things because ultimately, it sounds like the mechanics imply an acceleration not a deceleration.

因此，如果沒有什麼真正讓您感到害怕，那麼我仍在努力應對下半年的指導和前景。您已經給出了指導或評論，表明您的管道得到了顯著加強。你說你的持續時間很穩定。您會看到穩定的關閉率。您正在增加更多的銷售能力。您正在以越來越快的速度贏得大客戶交易。您在僱用人員和提高生產力方面花費更多。您的銷售隊伍正在顯著改善。然而，您的指導意味著第一季和第二季都高於華爾街，後半部分要保守得多。所以我想問題是，這是特定地理位置的特定弱點的結果還是由於政治問題？或者只是想在馬克上任並推動事情發展時，為銷售組織提供更多重新調整的機會，因為最終，聽起來機制意味著加速而不是減速。

Yes. Alex, I'll start and then Thomas can give a little bit more color. I would push back on your initial statement, which was that nothing spooks me. A lot spooks me right now. So just because just -- and I want to make it clear, we are in a much more uncertain environment and the signal that we're seeing is that uncertainty is up. In addition to that, I think you're correct that whenever you have a sales leadership change, there is risk that comes with it. And so there's a bit of that. But the primary factor here is that as we look at the signals in the overall macro economy, it is -- it feels like a much more -- it feels like there's much more reason to worry in Q1 than there was in Q4. But that doesn't mean that it was the same, just sound the alarm bells that we were seeing back in Q1 of 2022.

是的。亞歷克斯，我先開始，然後托馬斯可以提供更多的色彩。我想反駁你最初的說法，即沒有什麼能讓我感到害怕。現在有很多事情讓我感到害怕。所以只是因為——我想明確指出，我們正處於一個更不確定的環境中，而我們看到的訊號是不確定性正在上升。除此之外，我認為你是對的，每當銷售領導層發生變動時，都會帶來風險。所以有一點這樣的。但這裡的主要因素是，當我們審視整體宏觀經濟的訊號時，感覺第一季比第四季有更多的理由令人擔憂。但這並不意味著情況是一樣的，只是敲響了我們在 2022 年第一季看到的警鐘。

Great. So just essentially derisked it. I appreciate it.

偉大的。所以基本上就消除了它的風險。我很感激。

Your last question comes from the line of Tim Horan from Oppenheimer.

你的最後一個問題來自奧本海默的蒂姆霍蘭。

We saw the hyperscale cloud revenues really accelerate this quarter, the accelerated guidance. And they're actually talking about being kind of capacity constrained. And you're kind of the on-ramp on to those cloud guys. I guess why the disconnect between what they're seeing in guidance versus what you're seeing out there right now. Particularly, you're also in like the fastest-growing segments of serverless and low latency. But I guess what's changed other than your concerns on the macro or anything on the onramp thesis?

我們看到本季超大規模雲端收入確實加速成長，加速了指引。他們實際上談論的是容量受限。您是那些雲端專家的入口。我猜為什麼他們在指南中看到的內容與您現在看到的內容之間存在脫節。特別是，您還處於無伺服器和低延遲領域成長最快的領域。但我想除了您對宏觀或入口論文上的任何擔憂之外，還有什麼變化？

Yes. I think that the big thing, Tim, that I'd point to is that they tend to be purely usage-based models. And the good of usage-based models is that they react very quickly, both up and down. And so I think whereas we tend to be much more of a subscription-based model, and the good of that is that it has a lot more stability. But -- and that stability helps you when things are slowing down. So we had significantly faster growth than the hyperscalers in the last few quarters, and we're now around where they are this quarter. And so I think we are a little bit more moderated than some of the more usage-based models. And I think that explains some of it.

是的。提姆，我認為最重要的是，它們往往是純粹基於使用的模型。基於使用的模型的優點在於它們的反應非常快，無論是向上或向下。因此，我認為雖然我們更傾向於基於訂閱的模式，但這樣做的好處是它具有更高的穩定性。但是——當事情放緩時，這種穩定性會幫助你。因此，在過去幾個季度中，我們的成長速度明顯快於超大規模企業，而本季我們的成長速度與它們相當。因此，我認為我們比一些基於使用情況的模型更加溫和。我認為這可以解釋其中的一些原因。

I think the second thing that I'd add is that for some of the products, especially around the AI products, as Thomas said, we're really optimizing around adoption. And while we published pricing and that pricing was extremely well received, in addition to being very, very attractive for us from a margin perspective in the last months, that's something that is still not a place where we are heavily monetizing yet. But again, I think as I listed some of the examples, we see plenty of opportunity there. And we think that when we decide the time is right to turn on some of those monetization, it will help contribute to our top line growth.

我想我要補充的第二件事是，對於某些產品，尤其是人工智慧產品，正如托馬斯所說，我們確實正在圍繞採用進行最佳化。雖然我們公佈了定價並且該定價非常受歡迎，而且從過去幾個月的利潤角度來看，這對我們來說非常非常有吸引力，但這仍然不是我們大量貨幣化的地方。但我再次認為，當我列出一些例子時，我們看到了很多機會。我們認為，當我們決定是時候開啟其中一些貨幣化功能時，它將有助於我們的收入成長。

And just 2 quick follow-ups. Are you seeing any other competitors coming into what you offer on a global serverless, low-latency basis? And I guess you're implying, at some point, revenue growth should really accelerate here. I mean in a more stable macro environment or more visibility, I mean, everything we've been talking about on this call seems like, [partners] have said, incredibly positive. Do you -- and your guide for the second half, down to 26%, just seems like very, very low versus what it potentially could be. I guess do you think these steps will enable you to accelerate in the next couple of years?

只需 2 次快速跟進。您是否看到有其他競爭對手進入您提供的全球無伺服器、低延遲的產品？我猜你是在暗示，在某個時候，這裡的收入成長應該會真正加速。我的意思是，在一個更穩定的宏觀環境或更高的可見度下，我的意思是，我們在這次電話會議上討論的一切似乎，[合作夥伴]說，非常積極。你認為——以及你下半年的指導值，下降到 26%，與它可能達到的水平相比，似乎非常非常低。我想您認為這些步驟會讓您在未來幾年內加速嗎？

So on the competition front, we really don't. We think that we are in a very unique position. We don't see anybody else that is yet rolling out the type of connectivity cloud with true serverless architecture. There are people who are buying some legacy businesses. There are people who sort of talk a good game, but it turns out, when you pull the covers back, don't have very much business in this space at all. And so we are, I think, unique in the position that we're offering.

所以在競爭方面，我們確實沒有。我們認為我們處於一個非常獨特的位置。我們還沒有看到任何其他人推出具有真正無伺服器架構的連接雲類型。有些人正在購買一些傳統企業。有些人在談論一個好遊戲，但事實證明，當你揭開面紗時，這個領域根本沒有太多業務。因此，我認為我們所提供的職位是獨一無二的。

I don't think that will stay true forever. Other people will provide services here, but we have a clear lead. We have the richest ecosystem. And I think that what's great about Cloudflare's business is that we have existing, very stable businesses that continue to perform. We have newer businesses for us like our Zero Trust and SASE businesses, which are just accelerating up the S-curve. And then we have a lot of bleeding edge opportunity with things like our Workers' platform. And so Cloudflare is all about stacking S-curves, one behind another, behind another. And so where I think a lot of companies run out of TAM, run out of market, we are able to continue to add and innovate into new areas in a way that I think we'll achieve what we want, which is we think we're going to be one of the truly iconic technology companies and we're investing for that long term, including at times making the choice of optimizing for adoption rather than trying to figure out how we make money from every single customer with every single transaction. And we think that, that's the right formula for building what is an iconic technology company over the long term.

我認為這不會永遠如此。其他人會在這裡提供服務，但我們有明確的領先優勢。我們擁有最豐富的生態系統。我認為 Cloudflare 業務的優點在於，我們擁有現有的、非常穩定的業務，並且可以繼續運作。我們有新的業務，例如零信任和 SASE 業務，這些業務正在加速 S 曲線的發展。然後，我們在工人平台等方面有很多前沿機會。因此，Cloudflare 就是將 S 曲線堆疊起來，一個接著一個，一個接著一個。因此，我認為許多公司都耗盡了 TAM，耗盡了市場，但我們能夠繼續在新領域進行添加和創新，我認為我們將實現我們想要的目標，即我們認為我們將成為真正標誌性的科技公司之一，我們正在進行長期投資，包括有時選擇優化採用，而不是試圖弄清楚我們如何透過每筆交易從每個客戶身上賺錢。我們認為，從長遠來看，這是打造一家標誌性科技公司的正確模式。

That concludes our question-and-answer session. I will now turn the call back over to Matthew Prince for some closing remarks.

我們的問答環節到此結束。現在，我會把電話轉回給馬修·普林斯（Matthew Prince），讓他發表一些結束語。

I just want to thank our entire team for executing. I know that in the world right now, there's a lot of scary things going on. There's a lot of tension, and what we do every day of making sure that the Internet continues to function, that it continues to be a force that drives the economy around the world going forward. I can't imagine anything more important to be working on. So thank you for the entire team for delivering yet another terrific quarter. We're getting back to work now, and we'll see you all again next quarter. Thank you.

我只想感謝我們整個團隊的執行力。我知道現在世界上有很多可怕的事情正在發生。存在著很大的壓力，我們每天所做的就是確保網路繼續發揮作用，確保它繼續成為推動世界各地經濟向前發展的力量。我無法想像還有什麼比這更重要的工作了。感謝整個團隊再次交付了出色的季度業績。我們現在正在恢復工作，下季再見。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。