Cloudflare, Inc. (NET) 2021 Q3 法說會逐字稿

Good afternoon. My name is Julianne, and I will be your conference operator today. At this time, I would like to welcome everyone to Cloudflare's Q3 2021 Earnings Call. (Operator Instructions) Jayson Noland, Head of Investor Relations, the floor is yours.

各位下午好。我是 Julianne，今天將擔任本次電話會議的接線員。此刻，我想歡迎各位參加 Cloudflare 2021 年第三季財報電話會議。（接線員指示）投資人關係主管 Jayson Noland，交給您。

Thank you for joining us to discuss Cloudflare's financial results for the third quarter 2021. With me on the call, we have Matthew Prince, Co-Founder and CEO; Michelle Zatlyn, Co-Founder, President and COO; and Thomas Seifert, CFO. 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.

感謝各位加入我們，一同討論 Cloudflare 2021 年第三季的財務結果。與我一同參與電話會議的有共同創辦人暨執行長 Matthew Prince；共同創辦人、總裁暨營運長 Michelle Zatlyn；以及財務長 Thomas Seifert。此時，各位應已可取得我們的財報新聞稿。該新聞稿以及我們的補充財務資訊可在我們的投資人關係網站上查閱。

As a reminder, we'll be making forward-looking statements during today's discussion, including, but not limited to, our customers, vendors and partners operations and future financial performance, anticipated product launches and the timing and market potential of those products, the company's anticipated future revenue, financial performance, operating performance, non-GAAP gross margin, non-GAAP net loss from operations, non-GAAP net loss per share, shares outstanding, non-GAAP operating expenses, free cash flow, non-GAAP effective tax rate, dollar-based net retention rate, paying customers and large customers.

提醒各位，在今天的討論中，我們將作出前瞻性陳述，包括但不限於：我們客戶、供應商與合作夥伴的營運及未來財務表現；預期的產品發表以及該等產品的時程與市場潛力；公司預期的未來營收、財務表現、營運表現、非 GAAP 毛利率、非 GAAP 營運淨損、非 GAAP 每股淨損、流通在外股數、非 GAAP 營運費用、自由現金流、非 GAAP 有效稅率、以美元計價的淨留存率、付費客戶以及大型客戶。

These statements and other comments are not guarantees of future performance, but rather are subject to risks and uncertainties, some of which are beyond our control, including, but not limited to, the extent and duration of the impact of the COVID-19 pandemic and adverse conditions in the general domestic and global economic markets. Our actual results may differ significantly from those projected or suggested in any 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. 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 Securities and Exchange Commission as well as in today's earnings press release.

這些陳述及其他評論並非對未來表現的保證，而是受到風險與不確定性影響，其中部分超出我們的控制範圍，包括但不限於 COVID-19 疫情影響的程度與持續時間，以及國內與全球整體經濟市場的不利狀況。我們的實際結果可能與任何前瞻性陳述中所預測或暗示者有重大差異。這些前瞻性陳述僅適用於今日，您不應依賴其作為我們未來觀點的代表。我們不承擔在本次電話會議後更新這些陳述的義務。關於可能影響我們未來營運結果與財務狀況之風險與不確定性的更完整討論，請參閱我們向美國證券交易委員會提交的文件，以及今日的財報新聞稿。

Unless otherwise noted, all numbers we talk about today other than revenue will be on an adjusted non-GAAP basis. All current and prior period financials discussed are reflected under ASC 606. You may find a reconciliation of GAAP to non-GAAP financial measures 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. We would also like to inform you that we'll be participating in the Jeffrey Cybersecurity Summit on November 10, the RBC Capital Markets TIMT Conference on November 16, the Credit Suisse Annual Technology Conference on December 1 and the Wells Fargo TMT Summit on December 2.

除非另有說明，今天我們討論的所有數字（營收除外）皆以調整後的非 GAAP 基礎呈現。所討論之本期與前期財務數據皆依 ASC 606 反映。您可在我們投資人關係網站上的財報新聞稿中找到 GAAP 與非 GAAP 財務衡量指標的調節表。就歷史期間而言，GAAP 與非 GAAP 的調節可在稍早提及的補充財務資訊中查閱。另外也向各位說明，我們將參加 11 月 10 日的 Jeffrey Cybersecurity Summit、11 月 16 日的 RBC Capital Markets TIMT Conference、12 月 1 日的 Credit Suisse Annual Technology Conference，以及 12 月 2 日的 Wells Fargo TMT Summit。

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

接下來我想把電話會議交給 Matthew。

Thank you, Jayson. We had a landmark quarter. In Q3, we achieved revenue of $172 million, up 51% year-over-year. We continue to see particular strength across our large customer segment, those that pay us more than $100,000 per year, and ended the quarter with 1,260 large customers, up 16% quarter-over-quarter and 71% year-over-year. Our average contracted customer now spends over $100,000 annually with us, up from an average of $72,000 when we went public just over 2 years ago, evidencing our success selling to larger and larger enterprises.

謝謝你，Jayson。我們度過了一個里程碑式的季度。第三季我們達成 1.72 億美元營收，年增 51%。我們持續看到大型客戶族群的特別強勁動能，也就是每年支付我們超過 10 萬美元的客戶；本季末大型客戶達 1,260 家，季增 16%、年增 71%。我們的平均簽約客戶目前每年在我們這裡的支出已超過 10 萬美元，相較於我們在兩年多前上市時的平均 7.2 萬美元有所提升，顯示我們成功將產品銷售給規模愈來愈大的企業客戶。

Our dollar-based net retention remained strong at 124%, and we achieved a record gross margin of over 79% in the quarter. It was also a milestone quarter because we reached profitability, delivering a positive operating margin and EPS. When we went public, we anticipated we'd reach breakeven in the second half of 2022. At our Investor Day earlier this year, we updated that forecast to Q1 of 2022, but our continued strong growth and relentless efficiency allowed us to reach this milestone even earlier. While we are proud to be profitable, I want to repeat what I said in our earnings call last quarter.

我們以美元計價的淨留存率仍維持強勁的 124%，且本季達成超過 79% 的創紀錄毛利率。這同時也是一個里程碑季度，因為我們達到獲利，繳出正的營業利益率與每股盈餘（EPS）。我們上市時原本預期會在 2022 年下半年達到損益兩平；在今年稍早的投資人日，我們將該預測更新為 2022 年第一季，但我們持續強勁的成長與不懈的效率提升，使我們更早達成這項里程碑。雖然我們對獲利感到自豪，但我想重申我在上一季財報電話會議中所說的話。

We have a long-term operating margin target of 20%. We remain confident in our ability to reach that long-term target, but we are not in a rush to get there. When we say long term, we really mean it. As long as we can achieve extraordinary growth, we anticipate that we will pour our profits back into our research and development and sales and marketing machine. We are nowhere close to being out of ideas from new products to build for customers to buy them. We anticipate that we will hover just below or just above breakeven likely for years to come. Rather than depositing our profits in the bank, we will core them back into our business, investing in innovation and bringing more customers onto our platform, and that's exactly what we've done, already evidenced by our torrid pace of new product announcements through Q3 and into Q4 and our record growth in new large customers.

我們的長期營業利益率目標是 20%。我們仍有信心達成該長期目標，但我們並不急著立刻到達。當我們說「長期」，我們是認真的。只要我們仍能實現卓越的成長，我們預期會把利潤再投入研發以及銷售與行銷引擎。我們距離「沒有新點子可為客戶打造、讓客戶購買的新產品」還差得遠。我們預期未來多年可能會在損益兩平略下或略上徘徊。我們不會把利潤存進銀行，而是會把它們再投入公司，投資創新並讓更多客戶加入我們的平台；而這正是我們正在做的事，從我們在第三季一路延續到第四季的新產品公告高速節奏，以及新增大型客戶的創紀錄成長即可見一斑。

We tend to roll new products out during what we call innovation release. Since our last call, we hosted 2 of these: Speedweek, where we released new speed enhancing features and demonstrated we run the fastest security, zero trust and all around delivery network in the world; and Birthday Week, which is our annual celebration of Cloudflare's launch, where we announce new products that we think of as innovative gifts back to the Internet. These weeks don't just deliver new products, they're also some of the most effective marketing we do to attract new customers.

我們通常會在我們稱為「創新發佈」（innovation release）的期間推出新產品。自上次電話會議以來，我們舉辦了兩次：Speedweek，我們發佈了新的速度提升功能，並展示我們擁有全球最快的安全性、零信任以及全方位交付網路；以及 Birthday Week，也就是我們每年慶祝 Cloudflare 上線的活動，在這段期間我們會宣布新產品，我們把它們視為回饋網際網路的創新禮物。這些週期不僅帶來新產品，也是在吸引新客戶方面最有效的行銷活動之一。

During Birthday Week this year, for example, our organic inbound leads spiked nearly tenfold. I think this is because customers want to bet on the companies that are committed to innovation, and we've proven through these weeks over the years that innovation is deep in Cloudflare's DNA. Prior year's Birthday Weeks that had double the size of the encrypted web, unmetered DDoS mitigation and launched Cloudflare Workers, our serverless computing platform. Our strategy has always been to get these products to market early and then relentlessly iterate to improve them until they're best-of-breed and significant new lines of business for us.

例如今年的 Birthday Week 期間，我們的自然（有機）入站商機線索幾乎暴增了近 10 倍。我認為這是因為客戶希望押注在致力於創新的公司，而多年來我們透過這些活動證明，創新深植於 Cloudflare 的 DNA。過去的 Birthday Week 曾將加密網路的規模擴大一倍、提供不計量的 DDoS 緩解服務，並推出 Cloudflare Workers——我們的無伺服器運算平台。我們的策略一向是盡早將這些產品推向市場，然後不斷迭代改進，直到它們成為同類最佳（best-of-breed），並成為我們重要的新業務線。

I'm particularly excited this year about 3 Birthday Week product announcements. R2, an object store being developed for Cloudflare Workers, our first e-mail security product, which is an area that customers have been asking us to enter for some time and Cloudflare for Offices, which will make connecting to our Zero Trust network from many of the world's highest occupancy building, a matter of merely plugging in a patch cable.

今年我特別對三項 Birthday Week 的產品公告感到興奮：R2——一個為 Cloudflare Workers 開發的物件儲存服務；我們第一個電子郵件安全產品——這是客戶要求我們進入已久的領域；以及 Cloudflare for Offices——它將使從全球許多最高入駐率的大樓連接到我們的零信任網路，變成只要插上一條跳線（patch cable）即可。

We have 2 more innovation weeks scheduled before the end of the year. Full Stack Week, where we'll detail the newest developments around our workers' serverless computing platform and CIO Week, where we'll launch more products aimed at CIOs and demonstrate how Cloudflare's, the network they can plug into and not have to worry about anything else. Stay tune.

在今年年底前，我們還安排了另外兩個創新週：Full Stack Week，我們將詳細介紹圍繞 Workers 無伺服器運算平台的最新進展；以及 CIO Week，我們將推出更多面向 CIO 的產品，並展示 Cloudflare——一個他們可以直接接入、之後幾乎不必再擔心其他事情的網路。敬請期待。

I'm often asked about how Cloudflare innovate so quickly. We have demonstrated not only the ability to release new products, but then build those products into meaningful new lines of business. The key to our pace of innovation starts with our flexible platform. Every server that makes up Cloudflare's network is able to run every one of our features. Workers, which we've opened up to customers is, first and foremost, the computing platform on which our developers build most of our own features and our fully software-defined network then than routes traffic to wherever it will be handled most efficiently. This is important because it means new products held up by procurement, but it doesn't stop there.

我經常被問到 Cloudflare 如何能如此快速地創新。我們不僅展現了發佈新產品的能力，還能將這些產品打造為有意義的新業務線。我們創新速度的關鍵始於我們靈活的平台。構成 Cloudflare 網路的每一台伺服器都能運行我們的每一項功能。Workers——我們已向客戶開放——首先且最重要的是一個運算平台，我們的開發人員在其上打造我們自身的大多數功能；而我們完全以軟體定義的網路則會將流量路由到最有效率的處理位置。這很重要，因為這意味著新產品不會被採購流程所拖延，但事情不只如此。

One of our secrets to success is our broad customer base that we have millions of customers. Many of whom use our services for free means that we have an eager pool excited to test new features before they're released. While traditional B2B companies have extensive QA teams, we regularly ask volunteers from our community to be our earliest alpha testers. Our iteration cycles can then be extremely fast. And by the time a feature makes it to production at one of our enterprise customers, it's bulletproof, having been through the paces under real network conditions.

我們成功的祕訣之一，是我們擁有廣泛的客戶基礎，且有數百萬名客戶。其中許多人免費使用我們的服務，這意味著我們有一群熱切的使用者，願意在新功能正式發布前先行測試。傳統的 B2B 公司擁有龐大的 QA 團隊，而我們則經常邀請社群中的志願者成為最早的 Alpha 測試者。如此一來，我們的迭代週期就能非常快速。等到某項功能在企業客戶端進入正式環境（production）時，它已經在真實網路條件下經過充分考驗，幾乎是無懈可擊。

Not everything will be a runaway success, but this is the fertile soil from which innovative new products, spring so readily. The conventional wisdom in business is that you should focus and do one thing well. That's a great strategy for building a good company, but it has never been the cloud for our way. We are intent on building not just a good company, but an iconic one, delivering on our mission of helping build a better Internet. We are building the network that any business can plug into and not have to worry about anything else. That's what our customers tell us they need.

並非每件事都會成為一鳴驚人的成功，但這正是孕育創新新產品、讓其能夠迅速萌芽的肥沃土壤。商業上的傳統觀點是你應該聚焦，把一件事做到最好。這是打造一家好公司的絕佳策略，但從來不是我們的道路。我們的目標不只是建立一家好公司，而是一家具有標誌性的公司，實現我們「協助打造更好的網際網路」的使命。我們正在打造一個任何企業都能直接接入的網路，接入後就不必再擔心其他事情。這正是客戶告訴我們他們所需要的。

It requires us to do many things and over time become great at them all. You earn your place as a platform one feature at a time. But increasingly, one repeated theme I hear from our customers is that we have earned that place, not just as a feature provider but is their foundational networking platform. With that in mind, let me highlight some wins in the quarter.

這要求我們做很多事情，並隨著時間推移在每一件事上都變得卓越。你是靠著一次一個功能來贏得作為平台的地位。但我越來越常從客戶那裡聽到一個反覆出現的主題：我們已經贏得了那個位置——不僅是功能供應商，更是他們的基礎網路平台。基於這點，讓我重點分享本季的一些成果。

A Fortune 500 pharmaceutical company expanded their use of our Cloudflare One platform. They signed a $600,000 expansion deal, bringing their total contract to over $2 million. They are using a broad range of our services, including Cloudflare Gateway, our Zero Trust web application gateway. They appreciate how the various pieces of our platform fit together to provide one unified network. It was a competitive deal and our unified approach beat out all other Zero Trust vendors with their narrow point solutions.

一家《財富》500 大製藥公司擴大了其對我們 Cloudflare One 平台的使用。他們簽署了一筆 60 萬美元的擴充合約，使其合約總額超過 200 萬美元。他們使用我們多項服務，包括 Cloudflare Gateway——我們的 Zero Trust 網頁應用程式閘道。他們欣賞我們平台各個組件如何彼此契合，提供單一、統一的網路。這是一筆競爭激烈的交易，而我們的整合式方法擊敗了其他所有 Zero Trust 供應商的狹隘點狀解決方案。

A Fortune 500 manufacturing company adopting Cloudflare One to protect its 50,000 employees. They signed a 2-year contract worth over $0.5 million. Their previous hardware-based approach couldn't keep up with the latest security threats they were seeing. The technical team was familiar with Cloudflare. Many having used our pay-as-you-go products for developers and championed us to the C-suite buyer. At the same time, the C-suite buyer had heard from a peer at another manufacturing firm how much they enjoyed working with Cloudflare and appreciated our rate of innovation. This is a great example of how we're seeing success, selling both bottoms up and tops down within organization.

一家《財富》500 大製造公司採用 Cloudflare One 來保護其 50,000 名員工。他們簽署了一份為期 2 年、價值超過 50 萬美元的合約。他們先前以硬體為主的做法無法跟上他們所面臨的最新安全威脅。技術團隊對 Cloudflare 很熟悉，許多人曾使用我們面向開發者的隨用隨付（pay-as-you-go）產品，並向高層決策者（C-suite）推薦我們。同時，C-suite 的採購決策者也從另一家製造企業的同業那裡聽說，他們非常喜歡與 Cloudflare 合作，並欣賞我們的創新速度。這是我們在組織內同時以自下而上與自上而下方式銷售、並取得成功的絕佳例子。

A large European software company adopted our Zero Trust solution. They signed a 3-year $600,000 deal. Evaluating Cloudflare versus other leading Zero Trust solutions, they judged our products to be richer, more flexible, more scalable and easier to deploy. They also appreciated our integrated approach, providing a single platform to solve their broad set of network security, performance and reliability needs.

一家大型歐洲軟體公司採用了我們的 Zero Trust 解決方案。他們簽署了一筆為期 3 年、60 萬美元的合約。在評估 Cloudflare 與其他領先的 Zero Trust 解決方案時，他們認為我們的產品更豐富、更具彈性、更可擴展且更容易部署。他們也欣賞我們的整合式方法，透過單一平台滿足其廣泛的網路安全、效能與可靠性需求。

A Fortune 500 retailer adopted Cloudflare Workers to build scalable online retail applications ahead of Black Friday. They're using durable objects to manage what they anticipate will be extremely high traffic volume this holiday season. They appreciate our customizability and effortless scalability. They've stress-tested their application with over 100,000 transactions per second and workers handled it without breaking a sweat. They signed a $200,000 annual deal, and we anticipate the account will grow significantly as they move more of their online retail application onto our platform.

一家《財富》500 大零售商採用 Cloudflare Workers，在黑色星期五前打造可擴展的線上零售應用。他們使用 Durable Objects 來管理他們預期在這個假期旺季將出現的極高流量。他們欣賞我們的可客製化能力與毫不費力的擴展性。他們已對應用進行壓力測試，達到每秒超過 100,000 筆交易，而 Workers 輕鬆應對。他們簽署了一筆每年 20 萬美元的合約，我們預期隨著他們將更多線上零售應用遷移到我們的平台，該帳戶將顯著成長。

A Middle Eastern financial services provider signed a 3-year, $600,000 deal. They appreciated our global network with locations across the Middle East and our ability to deliver services that kept their sensitive customer data local in the regions they serve. Handling data locality requirements is one of the superpowers of edge computing over traditional cloud. The customer has already become a champion to other enterprises in the region.

一家中東金融服務供應商簽署了一筆為期 3 年、60 萬美元的合約。他們欣賞我們在中東各地的全球網路據點，以及我們能提供服務、讓其敏感的客戶資料在其服務區域內保持本地化（local）的能力。處理資料在地性（data locality）要求，是邊緣運算相較於傳統雲端的一項超能力。該客戶已經成為該地區其他企業的推廣者。

A national airline signed a $180,000 contract for our Cloudflare One services. They appreciate the better accuracy and lower false positive rate of our security products. This is a customer that we started talking to right near the beginning of COVID. While our sales cycles are usually very fast, still typically less than a quarter, this one was slow as they are in an industry that was highly impacted by the pandemic. But I highlighted as a deal we won in Q3 because I think it shows light at the end of the tunnel. Even highly COVID impacted industries, like airlines, are starting to return to normal. And as they do, they're once again calling us to help with their network security, reliability and performance needs.

一家國家級航空公司簽署了一份 18 萬美元的 Cloudflare One 服務合約。他們欣賞我們安全產品更高的準確度與更低的誤報率。這是一位我們在 COVID 一開始不久就開始接觸的客戶。雖然我們的銷售週期通常非常快，通常不到一季，但這筆交易進展較慢，因為他們所處的產業受到疫情嚴重衝擊。但我仍將其列為我們在第三季贏得的交易，因為我認為這顯示隧道盡頭的光。即使是像航空業這樣受 COVID 嚴重影響的產業，也開始回歸正常。隨著他們恢復，他們再次聯繫我們，協助滿足其網路安全、可靠性與效能需求。

If I step back, I will note that Q3 2021 was different in many ways than Q3 2020. While last year, the seasonality of summer seemed to disappear as people canceled vacations and worked without a break, this year, much of the world came out of lockdown in apparent desperate need of a vacation. July and August were quieter than normal, and the quarter ended up being more back-end loaded than we usually see. Talking with peer companies and listening to earnings calls over the last 2 weeks, we don't believe there was anything about that unique to us.

如果我退一步來看，我會指出 2021 年第三季在許多方面不同於 2020 年第三季。去年，由於人們取消度假、不中斷地工作，夏季的季節性似乎消失了；而今年，世界多數地區解除封鎖後，顯然迫切需要休假。7 月與 8 月比平常更安靜，本季的業績也比我們通常看到的更偏向在季末集中。與同業交流並聆聽過去兩週的財報電話會議後，我們不認為這是我們獨有的情況。

But refresh from a much-needed holiday, IT organizations now seem to have returned ready to roll up their sleeves and modernize their stacks for a post-COVID world. October started out very strong. In just the first week, a prominent social network chose Cloudflare One as their Zero Trust solution, signing a contract worth at least $1 million annually. That same week, one of the largest video conferencing services came under attack and onboarded on to Cloudflare, signing an $8 million annual deal. They pushed a lot of traffic. And we believe we are the only network provider with the scale and agility to have been able to onboard them over a weekend. And the coolest part, we not only mitigated the attacks, but their network performance actually improves. On top of that, we're confident over time we'll save them more in other providers' network bandwidth fees than we charge them ourselves, which is a totally magical experience and the recipe for a very sticky customer relationship.

但在一段急需的假期後獲得休整，IT 組織如今似乎已回歸，準備捲起袖子，為後 COVID 時代現代化其技術堆疊。10 月開局非常強勁。僅在第一週，一家知名社群網路選擇 Cloudflare One 作為其 Zero Trust 解決方案，簽署了至少每年 100 萬美元的合約。同一週，全球最大的視訊會議服務之一遭到攻擊，並迅速導入 Cloudflare，簽署了一筆每年 800 萬美元的合約。他們推送了大量流量。我們相信我們是唯一具備規模與敏捷性、能在一個週末內完成其導入的網路供應商。最酷的是，我們不僅緩解了攻擊，他們的網路效能實際上還提升了。此外，我們有信心，隨著時間推移，我們為他們在其他供應商的網路頻寬費用上節省的金額，將超過我們向他們收取的費用——這是一種非常神奇的體驗，也是建立高度黏著客戶關係的配方。

We have no intention of slowing down, and I wanted to thank all the teams working hard to help our customers build our business and live up to our mission of helping build a better Internet.

我們無意放慢腳步，也想感謝所有團隊的辛勤付出，協助客戶、推動業務成長，並實踐我們協助打造更好網際網路的使命。

With that, I'll turn it over to Thomas to walk through the numbers. Thomas, take it away.

接下來，我把時間交給 Thomas 來帶大家看數字。Thomas，交給你了。

Thank you, Matthew, and thank you to everyone for joining us. We delivered another excellent quarter, driven by record large customer addition, which continues to outpace top line revenue. We achieved an important milestone in the third quarter, reaching non-GAAP operating profit and net income profitability for the first time. This milestone is a testament to the strength of our business model and our ability to drive both high growth and operational leverage.

謝謝你，Matthew，也謝謝各位加入我們。我們又交出了一個非常出色的季度，主要受創紀錄的大型客戶新增所帶動，而這仍持續快於營收（top line）的成長。第三季我們達成一個重要里程碑：首次實現非 GAAP 的營業利益與淨利為正。這個里程碑證明了我們商業模式的強勁，以及我們同時推動高速成長與營運槓桿的能力。

Turning to revenue. Total revenue for the third quarter increased 51% year-over-year to $172.3 million. You may recall, in third quarter 2020 with a onetime benefit of $1.9 million related to a customer renewal, excluding this onetime benefit, our year-over-year revenue growth would have been 53.5%. The growth in revenue was driven by another quarter of strong customer demand, both in terms of new logo acquisition as well as expansion within our existing customer base.

接著看營收。第三季總營收年增 51%，達到 1.723 億美元。你可能還記得，2020 年第三季因一筆客戶續約帶來 190 萬美元的一次性收益；若排除這項一次性收益，我們的年增營收成長率將為 53.5%。營收成長來自又一季強勁的客戶需求，包含新客戶（new logo）取得，以及既有客戶基礎內的擴張。

From a geographic perspective, we saw continued strength in both the U.S. and internationally. The U.S. represented 53% of revenue and increased 53% year-over-year. EMEA represented 26% of revenue and increased 62% year-over-year. APAC represented 14% of revenue and increased 25% year-over-year. We're especially impressed by the accelerating growth we are seeing in Europe, which is driven by strength in large customers and expansions. We continue to expand our China network with JD Cloud and are seeing performance improvements for our customers of 30% or more compared to our previous China network.

從地理區域來看，我們在美國與國際市場都持續展現強勁動能。美國占營收 53%，年增 53%。EMEA 占營收 26%，年增 62%。APAC 占營收 14%，年增 25%。我們對歐洲加速成長尤其印象深刻，這主要由大型客戶的強勁表現與擴張所帶動。我們持續與京東雲（JD Cloud）擴展中國網路，並看到相較於我們先前的中國網路，客戶效能提升達 30% 或以上。

Turning to our customer metrics. We exited the quarter with 132,390 paying customers, representing an increase of 31% year-over-year. With another record number of large customer additions in the third quarter, adding 172 large customers sequentially and 524 customers year-over-year. We ended the quarter with 1,260 large customers, representing an increase of 71% year-over-year. We saw significant expansion from our large customers, which allowed us to maintain a strong dollar-based net retention rate of 124%, consistent with last quarter.

接著談我們的客戶指標。本季結束時，我們共有 132,390 名付費客戶，年增 31%。第三季再度創下大型客戶新增數的紀錄，單季新增 172 名大型客戶，年增新增 524 名客戶。本季結束時，我們共有 1,260 名大型客戶，年增 71%。我們看到大型客戶顯著擴張，使我們得以維持強勁的以美元計價淨留存率（dollar-based net retention rate）124%，與上季一致。

Third quarter gross margin was 79.2%, representing an increase of 120 basis points sequentially. Network CapEx represented 15% of revenue in the third quarter. We remain committed to building out the footprint and capacity of our network and expect network CapEx to be 12% to 14% of revenue for fiscal 2021. The increase in our network CapEx range is due to increased investment in advance of strategic customer growth.

第三季毛利率為 79.2%，較前一季提升 120 個基點。第三季網路資本支出（Network CapEx）占營收 15%。我們仍致力於擴建網路覆蓋範圍與容量，並預期 2021 會計年度網路資本支出將占營收 12% 至 14%。我們上調網路資本支出區間，係因在策略性客戶成長之前加大投資所致。

Turning to operating expenses. Third quarter operating expenses as a percentage of revenue decreased 3% sequentially and year-over-year to 78%, with another strong hiring quarter where we saw our total number of employees increased 32% year-over-year to approximately 2,240 at the end of the quarter.

接著談營運費用。第三季營運費用占營收比重較前一季以及去年同期均下降 3 個百分點至 78%；本季同樣是強勁的招募季度，截至季末員工總數年增 32% 至約 2,240 人。

Sales and marketing expenses were $77.6 million for the quarter. Sales and marketing as a percentage of revenue was flat sequentially and year-over-year. Research and development expenses were $32.8 million in the quarter. R&D as a percentage of revenue decreased 1% sequentially and decreased to 19% from 21% in the same quarter last year.

本季銷售與行銷費用為 7,760 萬美元。銷售與行銷費用占營收比重較前一季及去年同期持平。本季研發費用為 3,280 萬美元。研發費用占營收比重較前一季下降 1 個百分點，並由去年同期的 21% 降至 19%。

General and administrative expenses were $23.9 million for the quarter. G&A as a percentage of revenue decreased 2% sequentially and year-over-year to 14% from 16% in the same quarter last year. We continue to see strong operating leverage in the third quarter with operating margin improving 530 basis points year-over-year. Operating income was $2.2 million compared to an operating loss of $4.5 million in the same period last year. In the last few years, we repeatedly accelerated our time line for profitability from an initial target of second half of 2022 at the IPO to most recently the first quarter of 2022 as provided at our Investor Day earlier this year.

本季一般與行政費用為 2,390 萬美元。一般與行政費用（G&A）占營收比重較前一季及去年同期均下降 2 個百分點，從去年同期的 16% 降至 14%。第三季我們持續展現強勁的營運槓桿，營業利益率年增改善 530 個基點。營業利益為 220 萬美元，相較去年同期營業損失 450 萬美元。過去幾年，我們多次加速獲利時間表：從 IPO 時最初目標的 2022 年下半年，最近一次則是在今年稍早投資人日所提供的 2022 年第一季。

We have changed breakeven in the third quarter due to the inherent operating leverage characteristics of our business model. That said, I will echo what Matthew emphasized. Now that we've achieved breakeven, we intend to reinvest excess profitability back into the business for growth. We remain confident in our ability to reach our long-term operating margin target of 20% or higher. And when we say long term, we really mean it. Cloudflare is optimized for innovation, and we plan to continue to launch new products, grow our customer base, relentlessly execute and reinvest for growth to pursue the significant market opportunity ahead of us.

由於我們商業模式固有的營運槓桿特性，我們已將損益兩平點提前至第三季。話雖如此，我也呼應 Matthew 所強調的：既然我們已達成損益兩平，我們打算把超額獲利再投資回業務以推動成長。我們仍對達成長期營業利益率目標（20% 或更高）充滿信心。而當我們說「長期」時，我們是認真的。Cloudflare 以創新為核心進行最佳化，我們計畫持續推出新產品、擴大客戶基礎、全力執行並再投資以促進成長，掌握我們面前龐大的市場機會。

Turning to net income and the balance sheet. Our net income in the quarter was $1.4 million or a net income per share of $0.00. Our effective tax rate for the third quarter was 53%. We wanted to provide some additional color on financing activities we pursued in the third quarter. In August, we took advantage of favorable market conditions and successfully launched $1.3 billion principal amount of a 0 interest convertible senior note due in 2026. The additional capital secured at these attractive terms position us with greater flexibility to continue to invest and scale the business while cementing our strong financial position.

接著談淨利與資產負債表。本季淨利為 140 萬美元，或每股淨利 0.00 美元。第三季有效稅率為 53%。我們也想就第三季進行的融資活動補充一些說明。8 月，我們把握有利的市場條件，成功發行本金總額 13 億美元、票面利率 0% 且於 2026 年到期的可轉換公司債（convertible senior note）。以這些具吸引力的條件取得的額外資金，使我們在持續投資並擴大業務規模方面更具彈性，同時鞏固我們強健的財務狀況。

We ended the third quarter with $1.8 billion in cash, cash equivalents and available-for-sale securities. This includes approximately $790 million of net proceeds from our convertible note issuance during the quarter. Free cash flow was negative $39.7 million or 23% of revenue compared to negative $17.9 million or 16% of revenue in the same period last year. Operating cash flow was negative $6.9 million in the third quarter or 4% of revenue, which decreased $14.4 million sequentially and decreased $8.9 million year-over-year.

第三季結束時，我們持有 18 億美元的現金、約當現金與可供出售證券。其中包含本季可轉債發行所取得約 7.9 億美元的淨募資。自由現金流為負 3,970 萬美元（占營收 23%），相較去年同期為負 1,790 萬美元（占營收 16%）。第三季營運現金流為負 690 萬美元（占營收 4%），較前一季減少 1,440 萬美元，較去年同期減少 890 萬美元。

Worth noting is a $29.4 million cash outflow included in operating cash flow and free cash flow related to the repurchase of the 2025 convertible senior notes. As we mentioned previously, we expect to continue to see some level of variability in cash flow margins due to ongoing fluctuations in working capital, the growth in our large enterprise business and seasonal factors. Remaining performance obligation, or RPO, came in at $545 million, representing an increase of 13% sequentially and 60% year-over-year. Current RPO was 75% of total RPO. We remain optimistic and confident in the continued growth of our business.

值得注意的是，營運現金流與自由現金流中包含 2,940 萬美元的現金流出，與回購 2025 年到期可轉換公司債（convertible senior notes）相關。如先前所述，由於營運資金持續波動、大型企業業務成長以及季節性因素，我們預期現金流利潤率仍會出現一定程度的變動。剩餘履約義務（Remaining performance obligation，RPO）為 5.45 億美元，較前一季增加 13%，年增 60%。其中，當期 RPO 占總 RPO 的 75%。我們對業務持續成長仍保持樂觀與信心。

As such, we are pleased to raise guidance for both the quarter and full year. For the fourth quarter, we expect revenue in the range of $184 million to $185 million, representing an increase of 46% to 47% year-over-year. We expect operating loss to be in the range of $1 million to breakeven, and we expect net loss per share of $0.01 to breakeven. For modeling purposes, please note that if we report positive net income in Q4, we expect our share count to be 345 million fully diluted share versus 320 million basic share if we report a net loss. We expect a tax expense of $1.6 million.

因此，我們很高興上調本季與全年指引。第四季方面，我們預期營收介於 1.84 億至 1.85 億美元，年增 46% 至 47%。我們預期營業損失介於 100 萬美元至損益兩平，並預期每股淨損介於 0.01 美元至損益兩平。為便於建模，請注意：若我們在第四季報告正的淨利，我們預期完全稀釋後股數為 3.45 億股；若報告淨損，則基本股數為 3.20 億股。我們預期稅費為 160 萬美元。

For the full year 2021, we expect revenue in the range of $647 million to $648 million, representing an increase of 50% year-over-year. We expect operating loss for the full year in the range of $10.5 million to $9.5 million, and we expect net loss per share over that period in the range of $0.06 to $0.05, assuming approximately 312 million common shares outstanding. We expect a tax expense of $5.9 million.

2021 全年方面，我們預期營收介於 6.47 億至 6.48 億美元，年增 50%。我們預期全年營業損失介於 1,050 萬至 950 萬美元；並在假設流通在外普通股約 3.12 億股的情況下，預期該期間每股淨損介於 0.06 至 0.05 美元。我們預期稅費為 590 萬美元。

In closing, we are very proud to have crossed the significant milestone of profitability, which is only 2 years after IPO and 1 year ahead of the expected time line we initially shared at the time of our IPO. We'd like to thank all Cloudflare employees for their continued dedication to innovate and deliver and our customers, partners and the community for their endless trust and support.

最後，我們非常自豪能跨越獲利這個重要里程碑——這距離 IPO 僅 2 年，且比我們在 IPO 當時最初分享的預期時間表提前 1 年。我們要感謝所有 Cloudflare 員工持續投入創新與交付，也感謝我們的客戶、合作夥伴與社群長久以來的信任與支持。

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

接下來，我想開放提問。接線員，請開始收集問題。

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

（接線員指示）第一個問題來自 RBC Capital Markets 的 Matt Hedberg。

Congrats on the results here. I guess Matthew or Thomas, success in large customers was again super impressive. Now I think, clearly, this is a reflection of your products and vision. But can you talk about other aspects that could be positively impacting some of these large deals like direct rep productivity, maybe it's partners influencing deals? And I know everybody wants to know about the competitive landscape as you move up into the larger enterprise here.

恭喜這次的業績。我想問 Matthew 或 Thomas，大型客戶方面的成功再次令人印象深刻。我認為很明顯，這反映了你們的產品與願景。但你們能否談談其他可能對這些大型交易帶來正面影響的因素，例如直銷業務代表的生產力，或是合作夥伴是否在影響交易？另外，隨著你們往更大型的企業客戶市場邁進，我也知道大家都想了解競爭態勢。

Yes. I'll start, Matt, and then Thomas can weigh in with some more. So I think that success often is a combination of doing lots of things well. And we really have continued to march upmarket to larger and larger customers over time. So I think a couple of things are true. One, as we have successfully launched more and more products, we're seeing those products attach to our existing customers. And so about half of the customers that are new, large customers are existing customers that spend more with us and grow into that category.

好的。我先回答，Matt，接著 Thomas 也可以補充更多。我認為成功往往是很多事情都做得好的綜合結果。而我們確實隨著時間持續往上游市場（upmarket）推進，服務越來越大型的客戶。所以我想有幾點是確定的。第一，隨著我們成功推出越來越多產品，我們看到這些產品被既有客戶採用並加購。因此，大約一半的新大型客戶其實是既有客戶，他們在我們這裡的支出增加，並成長進入該類別。

But the other half are new customers -- are totally new logos to us. And I think that is both our success of building out our sales team and our go-to-market motion where increasingly, we have absolutely top-notch field sellers with relationships to sell into those larger and larger accounts. And we're seeing success in going upmarket.

但另外一半是新客戶——對我們而言是全新的標誌（logo）。我認為這同時反映了我們擴建銷售團隊的成功，以及我們的上市策略（go-to-market motion）：我們愈來愈多地擁有一流的前線業務人員（field sellers），他們具備人脈關係，能夠切入愈來愈大型的客戶帳戶。我們也看到在往上打入中大型市場（going upmarket）方面的成功。

I think that what we want to deliver and what we're building, if you fast forward 10 years from now, it's going to look like a traditional enterprise sales team. What's different about how we're building that is, as we've always said, that we get to invest behind the demand, not in front of it. And I think that the difference is that makes it less likely that we make a mistake as we continue to move upmarket.

我認為我們想交付的、以及我們正在打造的，如果你把時間快轉到 10 年後，它會看起來像一支傳統的企業級銷售團隊。我們打造方式的不同之處在於——正如我們一直說的——我們可以在需求之後投入資源，而不是在需求之前。我認為這個差異使得我們在持續往上打入中大型市場的過程中，犯錯的機率更低。

In terms of the competitive landscape, I don't think we've seen a significant change. I think we -- our win rates across competitors continue to be very attractive and improving. We still think that there are a whole bunch of legacy hardware boxes that are out there that we are replacing. And I think we're on the right side of history and so more and more customers are turning to us.

就競爭格局而言，我不認為我們看到顯著的變化。我認為我們——我們在各個競爭對手之間的贏單率（win rates）仍然非常有吸引力，而且還在改善。我們仍然認為市場上有大量傳統的硬體盒子（legacy hardware boxes）正在被我們取代。我認為我們站在歷史正確的一邊，因此愈來愈多客戶轉向我們。

I think the last thing is that COVID was a real wake-up call for IT organizations. And what I hear over and over again from the largest companies, even folks that were very cloud reticent in the past, is that they never want to live through something like that again. And so organizations that might have been hesitant to use a service like Cloudflare now see us as a no-brainer. And so I think while COVID was difficult insofar as IT organizations really battened down the hatches and shut things down, I think what we're seeing now is that people are coming out the other side, people are saying, "Okay, I need to embrace the cloud, I need to embrace a service like Cloudflare." And I think it's -- we're in a unique time where everyone is taking our phone calls.

我認為最後一點是，COVID 對 IT 組織而言是一記真正的警鐘。我一再從最大型的公司聽到——即便是過去對雲端非常保守的人——他們都表示再也不想經歷那樣的事情。因此，原本可能對使用像 Cloudflare 這樣的服務有所猶豫的組織，現在把我們視為不需要多想的選擇（no-brainer）。所以我認為，雖然 COVID 困難之處在於 IT 組織確實緊縮防守、關閉許多事情，但我們現在看到的是人們正在走出那段時間，開始說：「好，我需要擁抱雲端，我需要擁抱像 Cloudflare 這樣的服務。」我認為——我們正處在一個獨特的時點，幾乎所有人都在接我們的電話。

That's super helpful. And then I have to ask about R2. Obviously, that was a really exciting announcement this quarter. I know it's going to take time to impact the model. But perhaps you could talk a little bit more -- double-click on really how this positions you guys as really an edge cloud provider, even more so now with R2?

這非常有幫助。接著我必須問一下 R2。顯然，這是本季一個非常令人振奮的公告。我知道它需要時間才會影響模型。但也許你可以再多談一點——更深入說明——R2 如何讓你們在定位上更像是一家邊緣雲（edge cloud）供應商，甚至比以前更是如此？

Yes. So R2 for those who might not be following along as closely, Matt, is our object store. And if you think about what are the key components of being a cloud provider, you have to have compute, but you have to have a way also of storing data. And some of those things are databases, which we're building out in various ways. Some of those are also ways that you store objects. So those are like files that would be at the edge. And as -- because of where we sit, where we are the network in front of many of the large -- largest cloud providers customers, we were able to really study how customers were using various cloud providers.

是的。Matt，對於可能沒有那麼密切追蹤的人來說，R2 是我們的物件儲存（object store）。如果你思考成為雲端供應商的關鍵組成，你必須有運算（compute），但也必須有儲存資料的方法。其中一些是資料庫（databases），我們正以各種方式在建置。另一些則是儲存物件的方法，也就是像會在邊緣端（edge）上的檔案。由於我們所處的位置——我們位於許多大型、最大型雲端供應商客戶之前的網路層——我們得以深入研究客戶如何使用各種雲端供應商。

And we came to the conclusion that the right thing for us on our product road map was to build an object store. And one of the things that is unique about where we sit versus some of the more traditional and legacy cloud providers is that because we are distributed at the edge, it allows us to be significantly more efficient in the bandwidth usage that we have. And so while typical cloud providers have to pay a series of middlemen to deliver from Ashburn, Virginia to the other side of the earth, we are already on the other side of the earth, and we have usually a direct connection to all of those other networks that are there, which means that we have an inherent competitive advantage in terms of the cost of bandwidth delivery that we can provide.

我們得出的結論是，在我們的產品路線圖上，正確的做法是打造一個物件儲存。其中一個我們相較於較傳統、較舊式的雲端供應商所具備的獨特之處在於：因為我們分散部署在邊緣，這讓我們在頻寬使用效率上能顯著更高。因此，當典型雲端供應商必須付費給一連串中間商，才能把資料從維吉尼亞州阿什本（Ashburn, Virginia）送到地球另一端時，我們其實已經在地球另一端，而且通常與那裡所有其他網路都有直接連線，這表示在我們能提供的頻寬傳輸成本方面，我們具備先天的競爭優勢。

And so we see that as -- we see that because of the fact that we have that attractive pricing, we should be passing that on to customers. And we're excited for building out R2 and seeing how that further enhances our Workers' platform, which every day, people are building more and more complicated applications on. And I think this is going to allow that to just accelerate.

因此我們認為——我們認為，正因為我們有那樣具吸引力的定價，我們應該把這個優勢回饋給客戶。我們很期待持續建置 R2，並觀察它如何進一步強化我們的 Workers 平台；人們每天都在其上打造愈來愈複雜的應用程式。我認為這將讓那個趨勢加速。

Your next question comes from Alex Henderson from Needham.

下一個問題來自 Needham 的 Alex Henderson。

I was hoping you could talk a little bit about the scale of the TAM implied by the R2 product. I mean, clearly, it's a big opportunity, but it's hard for us to really grasp the scale of that opportunity since most of the data associated with revenues would be masked underneath the larger company's business. And while you're at it, if you could talk a little bit about the Bitcoin, blockchain announcement, e-mail announcement and net for offices, whether -- what does that add to your potential opportunity that would be very helpful as well?

我希望你能談談 R2 產品所隱含的 TAM 規模。我是說，很明顯這是一個很大的機會，但由於多數與營收相關的資料會被掩蓋在更大型公司的業務之下，我們很難真正掌握這個機會的規模。另外，如果你也能談談比特幣、區塊鏈的公告、電子郵件（e-mail）公告，以及 net for offices——也就是說——這些對你們的潛在機會增加了什麼，那也會非常有幫助。

Alex, that's a mouthful of things to go through. We had an entire week of announcements, and I think you just listed all of them for me to summarize. But let me start. So I think that it's early days in terms of R2. But what I think that we hope is that R2 can be very disruptive in the market and not only allow us to capture more of the object store spend, but also put downward pressure on all of the different cloud providers to eliminate their egress fees. It is completely absurd that companies are charging nothing to send data to them, but then charging what can be massive markups, 80x what the wholesale price is to take data back out. And we don't think that's sustainable, and we want to push that down.

Alex，這一串要講的東西可真不少。我們整整一週都在發布公告，而我想你剛剛把所有公告都列出來要我總結。不過我先從 R2 開始。我認為就 R2 而言，現在還在早期階段。但我們希望 R2 能在市場上帶來很大的顛覆性，不僅讓我們能取得更多物件儲存的支出（object store spend），也能對所有不同雲端供應商施加下行壓力，促使他們取消資料外傳費（egress fees）。企業把資料傳進去時收費為零，但把資料取出來時卻收取可能極高的加價——高達批發價的 80 倍——這完全荒謬。我們不認為這是可持續的，我們希望把它壓下來。

The reason why that's attractive to us is we think that our long-term opportunity is really to be the fabric that connects together the various cloud providers. And in an ideal world, what we hear from customers is that they want to use some Cloudflare services, but they want to use Google services and Microsoft services and Amazon services and pick the best of what they need across all of those different providers in order to deliver a more robust application. And I think that is the inevitable way that the market will play out over time. And that being that fabric that can connect those different networks together is a very powerful position for us to be in.

之所以這對我們有吸引力，是因為我們認為我們的長期機會，真正是在於成為連結各個雲端供應商的「織網／底層架構」（fabric）。在理想情況下，我們從客戶那裡聽到的是：他們想使用一些 Cloudflare 服務，但也想使用 Google 的服務、Microsoft 的服務、Amazon 的服務，並在所有不同供應商之間挑選他們所需的最佳組合，以交付更強健的應用程式。我認為這是市場隨時間推移必然會走向的方向。而能成為連結那些不同網路的 fabric，對我們而言是一個非常有力的位置。

And so R2 is both, I think, an opportunity for us to grow TAM. But it's also an opportunity for us to accelerate what I think is the inevitable next generation of the cloud, which is allowing customers to pick the best of breed across multiple clouds. And I'm optimistic that across the entire industry, if we really do encourage competition on a feature-by-feature basis and we don't lock customers in, in artificial ways like charging for egress but not ingress, that actually will expand the TAM of the entire cloud industry. And so I'm bullish on kind of everyone who's in this space.

因此我認為，R2 既是我們擴大 TAM 的機會，同時也是加速我所認為的雲端必然下一代形態的機會——也就是讓客戶能在多個雲之間挑選各領域的最佳方案（best of breed）。我很樂觀地認為，從整個產業來看，如果我們真的鼓勵以功能對功能（feature-by-feature）的方式競爭，並且不以人為方式把客戶鎖住——例如只對外傳（egress）收費、卻不對內傳（ingress）收費——那其實會擴大整個雲端產業的 TAM。所以我對這個領域裡的所有參與者都偏多看。

On the rest of the announcement, e-mail is one of those areas that we've been asking -- that customers have been asking us for quite some time. I think it's stagnated as a solution. And so we think that with the network that we have and the data that we see across all of what we provide in terms of our DNS service as well as our other services that we'll be able to provide a really outstanding product around that, one of the things that we're hearing from customers, they're particularly excited about is really a mix of our browser isolation technology with an e-mail security product.

至於其他公告，電子郵件是我們一直被要求提供的領域之一——客戶已經向我們要求相當長一段時間了。我認為這個解決方案領域已經停滯。因此我們認為，憑藉我們的網路以及我們在 DNS 服務與其他服務中所看到的資料，我們將能在這方面提供非常出色的產品。我們從客戶那裡聽到、他們特別興奮的一點，是把我們的瀏覽器隔離（browser isolation）技術與電子郵件安全產品做結合。

Imagine, for instance, if you can make sure that any link that is in an e-mail didn't actually get executed on your local computer but instead got executed in an isolated browser, which was running out at our edge. We have all the components to be able to do that. And if you look back at all of the security incidents that have happened across the space, that one technology closes the biggest hole in most enterprise IT spaces. So it's an area that we think is extremely exciting.

例如想像一下，如果你能確保電子郵件中的任何連結都不會在你的本機電腦上實際執行，而是改在一個隔離的瀏覽器中執行，而該瀏覽器是在我們的邊緣端運行。我們具備做到這件事的所有組件。如果你回頭看整個產業發生過的各種資安事件，這一項技術就能補上多數企業 IT 環境中最大的漏洞。因此這是我們認為極其令人振奮的領域。

Cloudflare for Offices is our announcement about putting our equipment in starting with about 1,000 of the most populated and most traffic office buildings in the world. And we think that, that just is an easier on-ramp to get customers onto our network. And one of the things that we're particularly excited about with that is that we can actually create an MPLS replacement to connect various branch offices together, but do it in a way which is almost instantaneous to turn up, whereas you usually have to wait weeks or months to get a private network like that turned up otherwise.

Cloudflare for Offices 是我們宣布將設備部署到全球約 1,000 棟人口最密集、流量最高的辦公大樓中。我們認為，這是一個更容易的切入方式，讓客戶上線到我們的網路。而我們對此特別興奮的一點是，我們實際上可以打造一個用來連接各個分支辦公室的 MPLS 替代方案，而且啟用幾乎是即時的；相較之下，通常你得等上數週或數月，才能把那樣的私有網路開通。

And I think that what we announced around Web 3.0 and the crypto space, again, I think that we want to be the bridge between what was the traditional web and what may be coming with Web 3.0. And we've been investing in this space for quite some time. I think we don't know exactly where it's going to go, and I don't think anyone necessarily does. But we have a really brilliant team that's thinking about this, and we want to be positioned that if it does become the next thing that Cloudflare helps provide the rails to make sure that Web 3.0 works as well as some of the optimistic forecasts suggest it could.

另外，關於我們在 Web 3.0 與加密領域所宣布的內容，我們希望成為傳統網路與 Web 3.0 可能帶來的新世界之間的橋樑。我們在這個領域已投資相當長一段時間。我們不確定它最終會走向何處，我想也沒有人能完全確定。但我們有一支非常出色的團隊在思考這些問題，我們希望能做好布局：如果它真的成為下一個趨勢，Cloudflare 能夠提供底層「軌道」，確保 Web 3.0 的運作能像一些樂觀預測所說的那樣順暢。

So again, I think that if you're not following our blog, if you're not following our Innovation Weeks and you're interested in Cloudflare, we try to make these announcements as accessible as possible. And we try to make lots and lots of bets. We don't know that all of them are going to be home runs. But if you look back in the history of Birthday Weeks, things like Cloudflare Workers and durable objects were products that we announced during that time, and those have then subsequently become very significant lines of business for us.

所以再說一次，如果你沒有關注我們的部落格、沒有關注我們的 Innovation Weeks，但你對 Cloudflare 有興趣，我們會盡可能讓這些公告容易取得、容易理解。我們也會做非常多的押注；我們不確定每一個都會是全壘打。但如果你回顧 Birthday Weeks 的歷史，像 Cloudflare Workers 和 durable objects 這些產品就是在那段期間宣布的，而後來它們也成為我們非常重要的業務線。

So just to conclude then you're not just going to be the fourth cloud, you're actually going to be the first true network cloud. And that's what the point of all of those?

所以總結一下，你們不只是要成為第四朵雲，你們其實要成為第一個真正的網路雲。這就是所有這些（舉措）的重點嗎？

Well, again, I think we are focused on how we can be the network that any company plugs into and literally doesn't have to worry about anything else.

是的，再次強調，我們專注於如何成為任何公司都能接入的網路，並且真的不必再擔心其他任何事情。

Your next question comes from Shaul Eyal from Cowen.

下一個問題來自 Cowen 的 Shaul Eyal。

Congrats on the strong performance. Matthew, great performance on the Workers, Cloudflare One, Teams. Also wanted to hear a little bit, any wins associated with the Magic Transit products, your ability to displace MPLS? And I have a follow-up on R2.

恭喜你們的強勁表現。Matthew，Workers、Cloudflare One、Teams 的表現很出色。我也想聽聽，Magic Transit 產品是否有帶來一些勝利案例？你們取代 MPLS 的能力如何？另外我還有一個關於 R2 的追問。

Yes. Thanks, Shaul. That -- I think Magic Transit is really one of our key winners. And I think it's shown -- it's been a very easy product for our existing sales team to sell to our existing customers. And so a number of the wins that I highlighted in the quarter, including the pharmaceutical company, the Fortune 500 manufacturing company, they are adopting Magic Transit as part of the overall bundle.

是的，謝謝你，Shaul。我認為 Magic Transit 確實是我們的關鍵贏家之一，而且它已經展現出來——對我們現有的銷售團隊而言，這是一個非常容易賣給既有客戶的產品。因此，我在本季提到的多個贏單，包括那家製藥公司、那家《財富》500 大製造公司，都把 Magic Transit 作為整體組合方案的一部分來採用。

But I think the thing that I'm hearing more and more is that customers are increasingly not seeing us as providing one single point solution or one single feature, but that we have earned being a platform to provide an overall solution to again be that network that customers can plug into and not have to worry about anything else.

但我聽到越來越多的是，客戶逐漸不再把我們視為只提供單一點解決方案或單一功能；相反地，我們已經贏得了作為平台的地位，能提供整體解決方案——再次成為那個客戶可以接入、並且不必再擔心其他任何事情的網路。

And so Magic Transit is part of a lot of these deals. It becomes very sticky as part of it. We think that, that will further accelerate with what we're doing for Cloudflare for Offices. And again, it's been a very natural addition to sell to our existing customer base. It also -- the deal that I highlighted that happened early in Q4, the large video conferencing service, it was -- that really was the -- in fact, when we were designing Magic Transit, we said 1 day if we build this right, this particular customer would be able to sign up and not only we'd be able to help them, protect them from a security perspective, but we'd also be able to actually accelerate their traffic.

因此 Magic Transit 是許多交易的一部分，並且作為其中一環會變得非常黏著。我們認為，隨著我們在 Cloudflare for Offices 上的推進，這點會進一步加速。而且，對既有客戶群來說，這一直都是非常自然的加購項目。另外——我在第四季初提到的那筆交易，那家大型視訊會議服務商——事實上，那正是——其實在我們設計 Magic Transit 時，我們就說：如果我們把它做對了，有一天這個特定客戶將能夠註冊使用；我們不僅能從資安角度協助保護他們，還能實際加速他們的流量。

And that's exactly what ended up happening. The customer came under an attack, we were able to very quickly onboard them in their time of need. They have a global customer base themselves and they were very pleasantly surprised when not only were we able to stop the attack, but their own internal measurement, their performance got better. That's why we call Magic Transit magic is, it really does for customers feel magic.

而這正是最後發生的情況。客戶遭到攻擊時，我們能在他們最需要的時刻非常快速地讓他們上線。他們本身也有全球客戶群，當我們不僅阻止了攻擊，而且依照他們內部的衡量指標，效能還變得更好時，他們感到非常驚喜。這就是我們稱它為 Magic Transit 的原因——對客戶而言，它真的像魔法一樣。

Got it. Understood. And maybe one more on R2. I know it's absolutely early days, but how would you characterize the level of sign-ups so far?

了解，明白了。那再問一個關於 R2 的問題。我知道現在還非常早期，但你會如何形容目前的註冊情況？

Off the charts. I mean, I think that we were surprised by how much it resonated across the customer base. We usually, during these Innovation Weeks, see an uptick in our inbound interest. But in terms of the organic leads that we saw, as I mentioned in my prepared remarks, we saw a tenfold or 10x increase in the number of organic inbound interest. And I think it points to that customers, whether they're small or large, feel like the egress fees that they're being charged by the sort of legacy cloud providers are agree to, and they're looking for a solution. And if we can help provide that, I think that's a very exciting opportunity for us.

爆表。我是說，我們對它在客戶群中的共鳴程度感到驚訝。通常在這些 Innovation Weeks 期間，我們會看到主動來詢問的興趣上升。但就我們看到的自然（有機）線索而言，正如我在事先準備的發言中提到的，自然流入的興趣數量增加了十倍，也就是 10 倍。我認為這反映出客戶——不論是小型或大型——都覺得那些傳統雲端供應商所收取的 egress（出站）費用令人難以接受，他們正在尋找解決方案。如果我們能協助提供這樣的方案，我認為這對我們而言是非常令人振奮的機會。

Your next question comes from Keith Weiss from Morgan Stanley.

下一個問題來自 Morgan Stanley 的 Keith Weiss。

Very nice quarter, guys. If this quarter is showing a seasonal slowness and then in summer, I hate to see what your quarters look like if you don't see a seasonal slowness, there's really no signs of weakness in this sprint. We talked a lot about the expanding solution portfolio. And you're right, it's absolutely incredible how quickly it's been expanding. And we've also talked about sort of building out that direct sales force behind that move upmarket.

各位，這一季非常漂亮。如果這一季顯示的是季節性放緩，那到了夏天——我都不敢想像如果沒有季節性放緩，你們的季度會長什麼樣子；在這段衝刺中真的看不出任何疲弱跡象。我們談了很多你們不斷擴張的解決方案組合。你說得對，它擴張的速度快得令人難以置信。我們也談到你們在往上打（進軍中大型客戶）背後，正在建立直銷團隊。

Can we perhaps kind of bring the two together? Like as you guys expand out that solution portfolio and if you're innovating in, in different directions, I mean, you're dealing with core security guys and now guys who are working on the e-mail side of the equation and core networking guys and core developers and workers, does the distribution strategy in itself have to change? Do you have to get more segmented? Or do you have to restructure the sales force at all to deal with that expansion of the solution portfolio?

我們能不能把這兩件事結合起來看？例如，當你們擴張解決方案組合、並且朝不同方向創新時——你們要面對的是核心資安人員，現在又有在電子郵件端工作的團隊，還有核心網路人員、核心開發者，以及 Workers——那麼你們的通路／銷售策略本身是否也必須改變？你們需要更細分嗎？或者為了因應解決方案組合的擴張，你們需要重整銷售團隊的架構嗎？

Yes, Keith. So first of all, I noticed your question to Satya, which sounded like it was about us, but you didn't name drop us. So you're a little bit...

是的，Keith。首先，我注意到你問 Satya 的那個問題，聽起來像是在說我們，但你沒有點名我們。所以你有點……

I was just talking about large opportunities that are out there for many different cloud providers that try to...

我只是在談論許多不同雲端供應商都在嘗試把握的、外面存在的大型機會……

Well, I appreciate it. And again, you can't be too much in the dog as if you're still question #4. So we're constantly adjusting who -- how our sales team works. And so for instance, it used to be that our solutions engineering team was both presale and post sale. Now we have specialized teams that are different for presale and post sale. I mean -- so that's an adjustment that's come over time.

好吧，我很感謝。再說一次，如果你還在第 4 題，就別太「在狗屋裡」了。我們一直在調整——我們的銷售團隊如何運作。舉例來說，以前我們的解決方案工程團隊同時負責售前與售後；現在我們有不同的專門團隊，分別負責售前與售後。我的意思是——這就是隨時間演進而來的調整。

I think that we have specialists in individual products that specialize in various areas, and we have internal training to make sure that our sales enablement is strong across our team. And so as we continue to go upmarket that requires a different sales motion and a different type of seller, and we are amazed that over the last 12 months, we've had nearly a quarter million people apply to work at Cloudflare, which is just astonishing. And so if you look across that, about half of those applicants are for our go-to-market team and the caliber and quality of the people that we're getting is great.

我認為我們在各個產品上都有專家，分別專精於不同領域；我們也有內部訓練，確保整個團隊的銷售賦能很強。因此，當我們持續往上打時，這需要不同的銷售動作（sales motion）以及不同類型的銷售人員。我們也很驚訝，在過去 12 個月裡，幾乎有 25 萬人申請到 Cloudflare 工作，這真的非常驚人。若從中來看，大約一半的申請者是針對我們的 go-to-market 團隊，而我們招募到的人才水準與品質都非常好。

And so as we continue to build that out, we will continue to not believe that what we did yesterday is the solution for what we need to do tomorrow, and both hire a different type of sales person to service larger customers and then also have specialization across it.

因此，隨著我們持續把這件事建構起來，我們也會持續不認為昨天做的事情就是明天需要做的解方；我們會同時聘用不同類型的業務人員來服務更大型的客戶，並且在各個面向上推動專業分工。

One thing I think that is interesting internally that we do is a lot of these new products come out of a group that we call ETI, which stands for emerging, technology and incubation. And that group -- their goal is to take lots of shots on goal and launch lots of products.

我認為我們內部有一件很有意思的事：很多這些新產品都出自我們稱為 ETI 的團隊，ETI 代表 emerging、technology and incubation（新興、技術與孵化）。而這個團隊的目標，就是大量嘗試並推出大量產品。

And then when a product takes off like a Workers or a Teams when it's the right time, those products then graduate to our more traditional product and engineering group. And the ETI Group does have a small go-to-market team that helps with these new functions, kind of writes the initial playbook and certain products like Magic Transit are a very easy add-on to our existing customer base. Something like Teams is actually, sometimes it is a different buyer and so we're having to figure out how to navigate horizontally inside organization.

接著，當某個產品像 Workers 或 Teams 一樣起飛、且時機成熟時，這些產品就會「畢業」並移交到我們較傳統的產品與工程團隊。ETI 團隊確實也有一個小型的 go-to-market 團隊，協助這些新功能，算是撰寫初版作戰手冊；而某些產品例如 Magic Transit，對我們既有客戶基礎而言是非常容易加購的附加項。像 Teams 這類產品其實有時候面對的是不同的採購決策者，因此我們必須摸索如何在組織內部以橫向方式推進。

But -- and as I highlighted in one of the examples, more and more, we're building the relationship with the C-level executives so that we have that executive sponsorship. And again, you've got to do multiple things right in order to continue to execute the way we are. And so what our sales team will look like and what our go-to-market team will look like in 5 years will be very different than it is now. But I think it's a very natural progression from where we are now to where we're going.

不過——正如我在其中一個例子裡強調的——我們愈來愈多地與 C-level 高階主管建立關係，以取得高層贊助。再說一次，若要持續像我們現在這樣執行下去，你必須把很多事情都做對。因此，我們的銷售團隊與 go-to-market 團隊在 5 年後的樣貌，將會與現在非常不同。但我認為，這是從我們目前的位置走向未來目標的一個非常自然的演進。

Your next question comes from James Fish from Piper Sandler.

下一個問題來自 Piper Sandler 的 James Fish。

Nice quarter. You guys started to do recently some more for larger enterprise customers around privacy. What are your expectations for that privacy part of the business over the next few years as it pertains to helping to protect consumers' identities? And then, broadly, what's your strategy for expanding more into identity security in and of itself?

本季表現不錯。你們最近開始針對較大型的企業客戶，在隱私方面做了更多事情。你們對未來幾年隱私這塊業務的期待是什麼，特別是就協助保護消費者身分而言？另外，更廣泛地說，你們擴展到身分安全（identity security）本身的策略是什麼？

Thanks, Jim. So we -- when we launched the company, there were really 3 pillars that were the kind of core values at Cloudflare in terms of sort of how we thought about products. We thought about how do we build products that make you more secure, how do we build products that make you more reliable and how do we build products that make you fast. And that -- whenever we think about products, we're thinking about how we can do one or more of those things. I think what's been -- become clear over the last 4 years has been there are 2 additional things that we would add to that list.

謝謝，Jim。我們——在公司成立之初，Cloudflare 在產品思維上其實有 3 個支柱，算是核心價值：我們思考如何打造讓你更安全的產品、如何打造讓你更可靠的產品，以及如何打造讓你更快速的產品。每當我們思考產品時，我們都在想如何做到其中一項或多項。我認為在過去 4 年裡愈來愈清楚的是，還有另外 2 件事我們會加到這份清單中。

One is efficiency. So how do we build products that help customers save money and really just have a very clear ROI for them. And then the last is privacy, where we have never and we will never sell our customers' data or our customers' customers' data. And so I think that, that has made it very easy for us to commit to the privacy regulations that are springing up around the rest of the world and to be thinking about our products in ways to build them to comply with those regulations.

第一是效率（efficiency）。也就是我們如何打造能幫客戶省錢、並且對他們而言具有非常清楚 ROI 的產品。最後一項是隱私（privacy）：我們從未、也永遠不會出售我們客戶的資料，或我們客戶之客戶的資料。因此，我認為這讓我們很容易承諾並遵循世界各地不斷出現的隱私法規，並以符合這些法規的方式來思考與打造我們的產品。

And so I see that there are a number of customers. So for example, the Middle Eastern Bank that I highlighted in the prepared remarks. They really appreciated the fact that we had location in the markets that they service and that we could help them keep their data there so that they would comply with what are, again, the regulations that come out of this privacy landscape.

因此我看到有不少客戶。例如我在事先準備的發言中提到的那家中東銀行。他們非常重視我們在其服務市場內設有據點，並且我們能協助他們把資料留在當地，以符合——再次強調——這個隱私環境下所衍生出的相關法規。

And so I think because of the fact that it's been very easy for us to be privacy first. And that's something that none of the other cloud providers have. They all have advertising businesses attached to them in one way or another. We are very clean in that sense. And so it has allowed us to be a great partner to organizations that do believe that privacy is a fundamental human right. And so I think that, that's something that is very much aligned across our business. And I think we don't exactly know where that will go. But I think that if you had to bet that being on the more private side of the Internet is being on the right side of history.

因此我認為，因為我們很容易做到以隱私為先（privacy first），而這是其他雲端供應商所沒有的。他們全都以某種方式連結著廣告業務；在這方面我們非常「乾淨」。因此，這讓我們能成為那些相信隱私是基本人權之組織的絕佳合作夥伴。我認為這點與我們整體業務高度一致。我們也不完全知道它最終會走到哪裡；但如果要下注，我會說站在更重視隱私的網際網路一方，就是站在歷史正確的一方。

Makes sense. And Cloudflare for Offices has gotten a little bit overshadowed by R2. So I just wanted to touch upon that briefly. Any sense to the ramp that we could expect for either the number of offices over the next year? Or how you're thinking about that business in particular?

了解。另外，Cloudflare for Offices 有點被 R2 的聲量蓋過去了，所以我想簡單問一下。你們對未來一年辦公據點數量的成長速度有什麼概念嗎？或你們如何看待這塊業務？

Yes. So I'll predict that the sleeper announcement from our Birthday Week that might be the most impactful to our business over the course of the next 10 years will be Cloudflare for Offices. And what we have seen is that the excitement from landlords and real estate groups about being able to offer Cloudflare services to their tenants is much higher than we actually expected, not only at the time of the announcement, but then subsequently.

有的。我預測，在我們 Birthday Week 的發布中，最「被低估」但在未來 10 年可能對我們業務影響最大的公告，會是 Cloudflare for Offices。我們看到房東與不動產團體對於能向其租戶提供 Cloudflare 服務的興奮程度，遠高於我們原先的預期——不僅是在公告當下，之後更是如此。

What it really offers is an ability for any tenant to plug into our network and be able to, yes, have fast connections to the Internet, but also get all the security, reliability and efficiency gains that we deliver. And so I think that the ramp of that is designed very much to be driven by where customer demand comes from. We have secured the ability to have access to a very large number of the office buildings and to be able to get connectivity from those office buildings out to the rest of the world. But I think that there's an opportunity that if we execute on the vision that we outlined that Cloudflare may well have one of, if not the largest, backbone network across the entire Internet.

它真正提供的是：讓任何租戶都能接入我們的網路；當然可以獲得快速的網際網路連線，同時也能取得我們所提供的所有安全性、可靠性與效率提升。因此我認為，這項業務的成長斜率（ramp）在設計上很大程度會由客戶需求的來源來驅動。我們已確保能接觸到非常大量的辦公大樓，並能從這些辦公大樓連接到世界其他地方。但我認為，如果我們能落實所描繪的願景，Cloudflare 很可能會擁有整個網際網路中數一數二、甚至是最大的骨幹網路之一。

And I think, again, that continues to execute on our vision of how can we be the fabric that connects all of these different services together with the ability to be programmable and have security built in. Sort of, again, what we say our mission is, is to help build a better Internet. And at some level, what we're doing is thinking about, gosh, if we all knew what the Internet was going to become and we had a time machine to go back 40 years and say, do it differently, I mean, Cloudflare is that time machine. And we continue to think about how can we make the Internet itself fundamentally better and deliver real value to our customers.

而我認為，這也再次落實我們的願景：我們如何成為把所有不同服務串接在一起的「織網」，同時具備可程式化能力並內建安全性。再說一次，我們所說的使命，是協助打造更好的網際網路。在某種程度上，我們在思考的是：如果我們早知道網際網路會變成今天這樣，並且有一台時光機回到 40 年前說「用不同方式來做」，那麼 Cloudflare 就是那台時光機。我們持續思考如何讓網際網路本身在根本上變得更好，並為客戶交付真正的價值。

So I'm extremely excited about Cloudflare for Offices. Watch this space because I think there are going to be a lot of exciting partnerships as we bring that forward. And then it will be something that we can deliver real value to customers around the world.

所以我對 Cloudflare for Offices 非常興奮。請持續關注，因為我認為隨著我們推進，會有很多令人振奮的合作夥伴關係；而這也將成為我們能為全球客戶交付真正價值的一項服務。

Your next question comes from Patrick Walravens from JMP Securities.

下一個問題來自 JMP Securities 的 Patrick Walravens。

This is Trevor Walsh on for Pat. Matthew, I wanted to just see -- you had mentioned in your prepared remarks around a lot of the wins, talked about Zero Trust over the quarter as kind of the driving force. And I just wanted to see if you could provide some further details around whether those were coming in via RFPs or RFIs just generally for -- as part of a larger kind of ecosystem of Zero Trust vendors or players? Or just kind of -- or was it really more Cloudflare or any competitively centric that way and how that kind of -- how those played out?

我是 Trevor Walsh，代 Pat 提問。Matthew，我想確認一下——你在事先準備的發言中提到許多贏單，並把本季 Zero Trust 作為主要驅動力。我想請你再多分享一些細節：這些案子通常是透過 RFP 或 RFI 進來的嗎？一般而言——它們是作為更大型的 Zero Trust 供應商或參與者生態系的一部分？還是——或者其實更偏向 Cloudflare 單獨競爭、以競品為中心的情境？以及這些案子大致是如何發展的？

Trevor, thanks for the question. In almost all of those cases, those were competitive deals that were coming through either an RFP or RFI process or they were -- even if it wasn't a formal RFP or RFI process, it was -- there were other names that were providing more limited sets of Zero Trust features. And what we are seeing is that we are winning in those competitive head-to-head deals because, first of all, we are significantly easier to deploy and implement. Secondly, we have a richer feature set when you -- especially when you take into account the entire platform. Third, we deliver significantly higher ROI for the investment that's there. And then fourth, there's a natural integration across the entire network that is provided.

Trevor，謝謝你的問題。幾乎在所有這些案例中，都是透過 RFP 或 RFI 流程進來的競爭型交易；或者——即使不是正式的 RFP 或 RFI 流程——也會有其他廠商提供較有限的 Zero Trust 功能組合。我們看到自己在這些正面對決的競爭案中勝出，原因是：第一，我們的部署與導入明顯更容易。第二，當你把整個平台納入考量時，我們的功能集合更完整。第三，我們能為既有投資帶來顯著更高的 ROI。第四，我們提供的是跨整個網路的自然整合。

So I think that this is, obviously, a newer area that we have gotten into. But I am very proud of our team and the win rates that we have against some better known vendors in the Zero Trust space. And I think that there is a very big opportunity for us to continue to deliver because, again, we've built a platform that can scale in a way that I don't think that any other Zero Trust vendor has.

所以我認為這顯然是我們近期才切入的一個較新領域。但我對我們的團隊，以及我們在零信任（Zero Trust）領域對上一些更知名供應商時的勝率感到非常自豪。我也認為我們有非常大的機會能持續交付成果，因為再說一次，我們打造了一個可擴展的平台，其擴展方式我認為沒有任何其他零信任供應商能做到。

Awesome. Great. And maybe one quick one for maybe Thomas best to handle. I also noticed that you guys expanded the proprietary network again this quarter. I was wondering if any of the supply chain issues kind of made that process a little bit more challenging, so we say, given some of the constraints there?

太棒了。很好。也許再快速問一個，可能由 Thomas 來回答最合適。我也注意到你們這一季再次擴建了自有網路。我想請問供應鏈問題是否讓這個流程變得更具挑戰性一些，姑且這麼說，考量到那邊的一些限制？

Not really. We -- our infrastructure team has managed us and the footprint of the network really well through COVID and the supply chain disruptions. We ordered early, we signed long-term agreements and we sometimes order ahead of our need just to make sure that we are protected. So I would say we saw hardly any impact in our build out during the third quarter from supply chain and interruptions.

其實沒有。我們——我們的基礎設施團隊在 COVID 以及供應鏈中斷期間，把我們以及網路版圖的管理做得非常好。我們提早下單、簽了長期協議，有時也會超前於需求先行採購，以確保我們受到保護。所以我會說，在第三季的擴建過程中，供應鏈與中斷幾乎沒有對我們造成影響。

Your next question comes from Brent Thill from Jefferies.

下一個問題來自 Jefferies 的 Brent Thill。

You have Joe on for Brent. Congrats on the results. Can you guys provide just an update on the APAC region and how the rollout is going in China? And maybe when we can expect growth in that region bouncing back to more company norms?

我是代替 Brent 的 Joe。恭喜你們的業績表現。你們能否提供一下亞太（APAC）地區的最新狀況，以及在中國的推進進度如何？另外，我們大概何時能預期該地區的成長回到更接近公司一貫的常態水準？

We are actually happy with the progress we are seeing. Remember, on the last 2 earnings calls, we said it would take us about towards the end of the year until we are back to historical growth rates in APAC. And I think that this still holds true. We've seen the first quarter-over-quarter improvement in the third quarter, where year-over-year growth rate is slightly picking up. And the team there is doing a really good job to get us on target. So I think we are on tract to what we said before, and we'll be back to historical growth rates by the end of the -- by the end of this fiscal year.

我們其實對目前看到的進展感到滿意。請記得，在前兩次財報電話會議上，我們說過大約要到年底左右，亞太才會回到歷史成長率。我認為這點仍然成立。我們在第三季看到第一次的季對季改善，年對年成長率也略有回升。當地團隊做得非常好，讓我們回到目標軌道。所以我認為我們正朝著先前所說的方向前進，並且會在——在本會計年度結束前回到歷史成長率。

It's great to hear. And it's great to hear about the strength in large deals. Maybe just an update also on the federal business and any initiatives there?

很高興聽到。也很高興聽到大型交易的強勁表現。也許也請更新一下聯邦業務（federal business）的狀況，以及那邊有哪些推動措施？

Sure. So I can take that. We -- as we talked about last quarter, we -- along with Accenture, we're able to secure a big deal across the business. We don't anticipate, as we said last time, that will have a material impact on revenues until 2022, but that is going very well. And I think that what we're seeing is more and more agencies within the federal business are excited to work with us.

當然。我可以回答。我們——如同上季所談到的，我們——與 Accenture 一起，成功拿下了一筆橫跨業務的大型交易。我們不預期——如同上次所說——它會在 2022 年之前對營收產生重大影響，但目前進展非常順利。我認為我們看到的是，聯邦業務內越來越多的機構都很期待與我們合作。

We also anticipate that early in 2022, we will reach our moderate full FedRAMP compliance. We're already able to with the achievement that we have sell into the federal government under the provisional compliance that we have in place. So I think that, that puts us in place to be able to deliver that. And we're hiring right now to be able to build out our federal team to be able to handle what we anticipate will be strong demand.

我們也預期在 2022 年初，我們將達到 FedRAMP 的「中度」完整合規（moderate full compliance）。以我們目前已取得的成果，我們已能在現行的臨時合規（provisional compliance）架構下向聯邦政府銷售。因此我認為，這讓我們具備交付能力。而且我們正在招募人員，以擴編聯邦團隊，來因應我們預期將會很強勁的需求。

Your next question comes from James Breen from William Blair.

下一個問題來自 William Blair 的 James Breen。

Just to take off on one of the other question was asked around sort of distribution. You guys are offering more products and you have things like Cloudflare One and Workers and so forth. Is there a section of your customer base that's maybe not large enterprise and not the small end that can be served by a channel partner type of sales scenario where you're not putting as much of your own resources into it, but could still generate sales in that spaces so that mid-market enterprise starts to really just figure out that they need a lot of the products that you're offering?

延續剛才有人問到的、關於通路（distribution）的問題。你們提供更多產品，像是 Cloudflare One、Workers 等等。你們的客戶群中，是否有一塊既不是大型企業、也不是小型客戶的區段，適合透過通路夥伴式的銷售情境來服務——也就是你們不需要投入那麼多自有資源，但仍能在那個市場空間產生銷售，讓中型市場的企業真正開始意識到他們需要你們所提供的許多產品？

Yes, Jim, I think that channel is something that has been part of our mix for quite some time, but is not yet at the place where we think there's an opportunity for it to be. And so channel has always been a challenge for SaaS companies. And I think, historically, one of the problems for channel partners with us was if -- for a lot of our traditional products, it took 5 minutes to onboard. And so there wasn't a lot of value to add for a value-added reseller. But I think what you're seeing is, as our products are getting more sophisticated, that channel partners are able to really create value in specialization and customization for that.

是的，Jim，我認為通路一直是我們組合的一部分，已經有相當一段時間了，但目前還沒有到我們認為它應該、也有機會達到的位置。因此通路對 SaaS 公司一直都是個挑戰。我想從歷史上看，通路夥伴與我們合作的一個問題是——對於許多我們的傳統產品，上線（onboard）只要 5 分鐘。這樣一來，對加值型經銷商（value-added reseller）可提供的附加價值就不大。但我認為你現在看到的是，隨著我們的產品越來越精密，通路夥伴能在專業化與客製化上真正創造價值。

So you see how that with Accenture, which we went to market with, obviously, on the large end of that. We have had a long-term channel partnership relationship with IBM, which has been very successful for us. But I think that expanding our use of the channel in 2022 is one of the focus areas. And I agree with you that that's an area where we can get even further leverage in our go-to-market spend.

所以你會看到我們與 Accenture 的合作——我們顯然是在大型客戶端一起推向市場。我們也與 IBM 維持長期的通路合作夥伴關係，對我們而言非常成功。但我認為在 2022 年擴大我們對通路的運用，是其中一個重點方向。我也同意你的看法，這是我們能在市場推進（go-to-market）支出上取得更大槓桿的領域。

Your next question comes from Andrew Nowinski from Wells Fargo.

下一個問題來自 Wells Fargo 的 Andrew Nowinski。

I just have a -- I want to follow up on Cloudflare One in the SASE market. Other vendors claim you need more of a proxy-based architecture to apply per-user basis to really be effective in that sort of Zero Trust market. I'm just wondering if you could provide any more color on whether that comes up in your bake-offs in that Zero Trust or SASE space?

我只有一個——我想追問一下 Cloudflare One 在 SASE 市場的情況。其他供應商宣稱，你需要更多以代理（proxy）為基礎的架構，才能在每位使用者（per-user）的層級套用，才會在那種零信任市場真正有效。我想請問，在你們於零信任或 SASE 領域的方案評比（bake-offs）中，這點是否會被提出？你能否提供更多說明？

Yes, Andrew. So we are a proxy. I think sometimes people think that because we started out as what's known in the industry as a reverse proxy that you -- that we aren't -- that we can't be a forward proxy, but it turns out that it's easy to make the traffic flow one way through the pipe as it is to make it flow the other way through the pipe.

是的，Andrew。我們就是代理（proxy）。我想有時候大家會以為，因為我們一開始是業界所稱的反向代理（reverse proxy），所以你——所以我們不是——或我們不能做正向代理（forward proxy）。但事實上，讓流量在管道裡往一個方向流動，跟讓它往另一個方向流動一樣容易。

And so what's really powerful is because we not only built that proxy infrastructure and we are in more than 250 cities worldwide, we have an incredible amount of capacity and scalability. And we have all of the existing security features built in that I think that our proxy, when it's compared head to head with some of the other providers, shines both on a performance perspective where we actually usually will accelerate customers' traffic, whereas other solutions typically slow it down.

真正強大之處在於，我們不僅打造了那套代理基礎設施，而且在全球超過 250 個城市佈點，具備驚人的容量與可擴展性。我們也把所有既有的安全功能都內建其中。因此我認為，當我們的代理與其他供應商正面比較時，無論在效能面——我們通常其實會加速客戶的流量，而其他解決方案通常會讓它變慢——或是在廣泛的安全威脅面上，都非常出色。

And then also on a broad security threat basis, where we're increasingly seeing attackers launch things like denial of service attacks and the traditional providers just don't have the capacity to be able to stay ahead of that, whereas we do because that's part of what has been our more historic product. I think what we are building out is actually more of the clients that exist on individual devices to augment the proxy services.

另外在更廣泛的安全威脅層面，我們越來越常看到攻擊者發動像是阻斷服務（denial of service）攻擊，而傳統供應商往往沒有足夠的容量能持續領先，但我們可以，因為那本來就是我們較早期產品的一部分。我認為我們正在擴建的，其實是更多存在於個別裝置上的用戶端（client），用來強化代理服務。

And so the great news for that -- for us is that because we've had consumer-facing products like Cloudflare WARP, we have the world's biggest QA organization, where there are literally tens of millions of people using WARP every day, picking the tires and making sure that it works well, not only on desktops and laptops, but on really difficult environments like mobile phones, where usually competitive solutions will massively burn battery life or decrease performance. So I think that we are very well positioned to be able to win that space.

因此對我們來說的好消息是，因為我們有像 Cloudflare WARP 這樣面向消費者的產品，我們擁有全球最大的 QA 組織——每天真的有數千萬人使用 WARP，實際試用並確保它運作良好，不僅在桌機與筆電上，也包括像手機這種非常棘手的環境；在那裡，競品解決方案通常會大幅耗電或降低效能。所以我認為我們在贏得那個市場方面具備非常好的定位。

I think our challenge is just making sure that people -- that there's awareness and that we really refine our go-to-market motion. But we're seeing success and we're seeing wins. And when we go head-to-head with some of the other competitors out there, I really like our win rates.

我認為我們的挑戰只是要確保大家——確保市場有足夠的認知，並且我們能真正精煉我們的市場推進模式（go-to-market motion）。但我們正在看到成功、也正在看到勝利。而當我們與其他競爭對手正面交鋒時，我非常喜歡我們的勝率。

That's great. And then just maybe shifting gears, I just wanted to ask another question on R2. Do you think that some of the more typical use cases where you'll see storage deployed in R2 are the traditional enterprise workloads? Or do you think that maybe it's more next-gen use cases like autonomous cars, et cetera?

很好。然後也許換個話題，我想再問一個關於 R2 的問題。你認為在 R2 上部署儲存的較典型使用案例，會是傳統的企業工作負載嗎？還是你認為可能更多是下一代的使用案例，例如自動駕駛車等等？

The interest -- I mean -- so we're focused on the present and focused on building solutions for companies that exist today and problems that exist today. And so we have an internal rule that anyone who mentions driverless cars when talking about Cloudflare Workers has to do a shot. And so I think that we -- I would rather bet on applications that exist today. And what we're seeing, for example, from the very large retailer that's concerned about the traffic volumes of Black Friday, we're building a solution that easily scaled to them to over 100,000 requests per second.

利息——我是說——所以我們專注於當下，專注於為今天存在的公司、以及今天存在的問題打造解決方案。因此我們有一條內部規則：任何人在談到 Cloudflare Workers 時提到無人駕駛車，就得喝一杯。也因此我認為——我寧可押注在今天就存在的應用。而我們看到的例子是，某家非常大型的零售商擔心黑色星期五的流量規模，我們正在為他們打造一個可輕鬆擴展的解決方案，能支撐每秒超過 100,000 次請求。

If you do the math out on that, that is across 1 customer well over 1 trillion -- over 1 trillion requests per quarter. And we see nearly 1 trillion request per day from the users of Workers. So our ability to scale and deliver real applications has really been built over the fact that we had that product in market for the last 4 years. And as we add things like R2, I think it just continues to make it a richer platform and that we're seeing real large retailers, financial services, health care, adopt. And someday driverless cars use it too, that's great. But in the meantime, we'll focus on real problems of the moment.

如果你把這個算一算，這相當於單一客戶每季遠超過 1 兆——超過 1 兆次請求。而我們也看到 Workers 的使用者每天接近 1 兆次請求。因此，我們擴展並交付真實應用的能力，確實建立在我們過去 4 年已將該產品推向市場的基礎之上。隨著我們加入像 R2 這樣的產品，我認為它只會讓平台更豐富，而我們也看到真正的大型零售商、金融服務、醫療保健等在採用。將來無人駕駛車也用它，那很好。但在此期間，我們會專注於當下的真實問題。

Julianne, can we take questions from one last analyst, please?

Julianne，我們可以再接受最後一位分析師的提問嗎？

Certainly. Your last question will come from Amit Daryanani from Evercore.

當然可以。你們的最後一個問題將來自 Evercore 的 Amit Daryanani。

I guess I have two, they're both on R2 as well. Matthew, I'm wondering if AWS tomorrow was to take the egress fees to 0 in theory, what would the value proposition for R2 to become in that scenario? And I'm trying to understand what would you say of the reasons one should go to R2 versus AWS beyond the egress fees?

我想我有兩個問題，也都與 R2 有關。Matthew，我想知道，如果 AWS 明天理論上把外傳（egress）費用降到 0，那在那種情境下，R2 的價值主張會變成什麼？我也想了解，除了外傳費用之外，你會怎麼說明為什麼應該選擇 R2 而不是 AWS？

If AWS takes egress fees to 0 tomorrow, I will do a dance of joy for all of our mutual customers. And that will put us in a position, I think, of finally realizing what is the ultimate opportunity of the cloud, which is how do we allow customers to take advantage of the best of what Amazon offers, the best of what Google offers, the best of what Microsoft offers, the best of what Oracle offers and the best of what Cloudflare offers. And if we can be the fabric that connects all of that together, that's great.

如果 AWS 明天把外傳費用降到 0，我會為我們共同的所有客戶跳一支喜悅之舞。那也會讓我們處於一個位置，我認為終於能實現雲端的終極機會：也就是我們如何讓客戶同時享受到 Amazon 最好的、Google 最好的、Microsoft 最好的、Oracle 最好的，以及 Cloudflare 最好的。而如果我們能成為把這一切連接起來的「織網／底層連結」，那就太棒了。

In the meantime, because I don't think that AWS is going to take egress fees to 0 tomorrow, we're going to make products that perform at least as well as theirs do. But don't rate customers over the cold for what are agreed just egress fees. So I hope that your hypothetical comes true. I think it's unlikely that it would, but that would be a great thing for customers. And I think it would force us to continue to innovate in that space, just like it would force everyone else to innovate in the space and who wins in that case is customers.

同時，因為我不認為 AWS 明天就會把外傳費用降到 0，我們會打造至少與他們同等效能的產品。但不會因為所謂、其實只是外傳費用的項目，就去「狠宰」客戶。所以我希望你的假設成真。我認為不太可能，但那會是對客戶非常好的事。而我也認為那會迫使我們持續在這個領域創新，就像也會迫使其他所有人創新一樣；在那種情況下，贏家會是客戶。

Fair enough. And then I think you probably talked about the goal has eventually become the fourth major public cloud. And I think -- and I'm curious, to be that, what does that do to your TAM, which you've talked about being $100 billion in a couple of years? What does it do to do that? And then what sort of CapEx investments do you need to make to achieve this goal?

了解。接著我想你可能談過，你們的目標最終是成為第四大公有雲。我想——我很好奇，若要成為那樣，對你們的 TAM（可服務市場總量）會有什麼影響？你們談過在幾年內是 1,000 億美元。做到那件事會帶來什麼變化？另外，為了達成這個目標，你們需要做哪些 CapEx（資本支出）投資？

Again, I think the good -- taking the second part of the question first, the good news is we've made substantial CapEx investments around the world. And the efficiency of running an edge network like ours is actually substantially lower CapEx versus traditional centralized cloud providers. We get the benefits of taking advantage of the entire Internet and the routing system around the world and then can put data wherever it makes the most sense for customers and store it there.

同樣地，我先回答問題的第二部分：好消息是，我們已在全球做了相當可觀的 CapEx 投資。而像我們這樣運行邊緣網路的效率，實際上相較於傳統集中式雲端供應商，需要的 CapEx 低得多。我們能受益於整個網際網路以及全球的路由系統，然後把資料放在對客戶最合理的位置並在那裡儲存。

So we've got substantial storage and compute capacity across our entire network. One of the things that was important about the fact that we started out very much as a security company is that security applications require significant compute. And so we have actually deployed, unlike some of the more point CDN solutions, when you look at our notes, they're very heavy on compute. And that's part of why we've been able to scale up our computing solution as quickly as possible.

因此，我們在整個網路上都擁有可觀的儲存與運算容量。從一開始我們非常像是一家資安公司這件事，其中一個重要點是：資安應用需要大量運算。因此我們實際上已經部署了——不同於一些較偏單點的 CDN 解決方案——當你看我們的節點時，運算資源配置非常重。這也是為什麼我們能夠以最快速度把運算解決方案擴展起來的一部分原因。

They also have a ton of disc in them. And so that means that there's storage that we can provide in those locations. We're confident that we can provide the R2 service in a way that has very attractive economics for us. And we're also confident in part because our infrastructure team has gotten so good at building to the capacity that we need that as -- if we do see demand, which is significant that we will be able to invest in CapEx behind that demand. So I don't think that as a percentage of revenue are to meaningfully change our CapEx spend. But it might -- but if it is wildly successful, our CapEx might go up, but that would be correlated with our revenue going up. Does that make sense in answering your question?

它們也配了大量磁碟。這表示在那些地點我們可以提供儲存。我們有信心能以對我們而言非常具吸引力的經濟性來提供 R2 服務。我們也有信心，部分原因是我們的基礎設施團隊已非常擅長依照所需容量來建置；因此——如果我們確實看到顯著的需求——我們將能在該需求之後投入相應的 CapEx。所以我不認為以營收百分比來看，我們的 CapEx 支出會有顯著變化。但它可能——如果它非常成功，我們的 CapEx 可能會上升，但那會與我們的營收上升相互對應。這樣回答你的問題有道理嗎？

Yes. Perfectly.

有。非常清楚。

We are out of time for questions today. I would like to turn the call back over to management for closing remarks.

我們今天的提問時間已到。我想把電話交回管理團隊做結語。

I appreciate everyone at Cloudflare for the hard work of delivering what really was a milestone quarter for us. We are incredibly proud of achieving profitability. And I just wanted to repeat one more time what I said, what Thomas said, which is we are nowhere near out of ideas of things to build and customers sell them to. And so we are going to continue to reinvest our profits back into the business in order to build what we really believe is going to be one of the truly iconic technology companies. Thank you all for being investors. Thank you for tuning in. We'll see you next quarter.

我很感謝 Cloudflare 的每一位同仁辛勤付出，讓我們交出對我們而言確實是里程碑的一季。我們對達成獲利感到無比自豪。我也想再重複一次我說過的、Thomas 也說過的：我們在要打造的點子上遠遠還沒枯竭，也還有客戶可以把這些產品賣給他們。因此，我們將持續把利潤再投資回業務中，去打造我們真正相信將會成為最具代表性的科技公司之一。感謝各位成為投資人，感謝收聽。我們下季見。

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。感謝各位的參與。您現在可以掛線。