(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.

下午好。我叫 Julianne，今天我將擔任您的會議接線員。在這個時候，我想歡迎大家參加 Cloudflare 的 2021 年第三季度財報電話會議。 （操作員說明）投資者關係主管 Jayson Noland，請您發言。

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.

感謝您與我們一起討論 Cloudflare 2021 年第三季度的財務業績。與我通話的還有聯合創始人兼首席執行官 Matthew Prince； Michelle Zatlyn，聯合創始人、總裁兼首席運營官；和首席財務官 Thomas Seifert。到目前為止，每個人都應該可以訪問我們的收益公告。本公告以及我們的補充財務信息可在我們的投資者關係網站上找到。

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和未來的財務業績、預期的產品發布以及這些產品的時間和市場潛力，公司預期的未來收入、財務業績、經營業績、非美國通用會計準則毛利率、非美國通用會計準則運營淨虧損、非美國通用會計準則每股淨虧損、流通股、非美國通用會計準則運營費用、自由現金流、非美國通用會計準則有效稅率、基於美元的淨保留率、付費客戶和大客戶。

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.

這些陳述和其他評論不是對未來業績的保證，而是受到風險和不確定性的影響，其中一些是我們無法控制的，包括但不限於 COVID-19 大流行的影響程度和持續時間以及總體國內和全球經濟市場的不利條件。我們的實際結果可能與任何前瞻性陳述中預測或建議的結果大不相同。這些前瞻性陳述自今天起適用，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，請參閱我們向美國證券交易委員會提交的文件以及今天的收益新聞稿。

Unless otherwise noted, all numbers we talk about today other than revenue will be on an adjusted non-GAAP basis. 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，我們今天談論的除收入外的所有數字都將基於調整後的非公認會計原則。討論的所有當前和前期財務狀況都反映在 ASC 606 中。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 財務指標的對賬。對於歷史時期，可以在剛才引用的補充財務信息中找到 GAAP 與非 GAAP 對賬。我們還想通知您，我們將參加 11 月 10 日的 Jeffrey 網絡安全峰會、11 月 16 日的 RBC 資本市場 TIMT 會議、12 月 1 日的瑞士信貸年度技術會議和 12 月 2 日的富國銀行 TMT 峰會.

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

現在我想把電話轉給馬修。

Thank you, 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，傑森。我們有一個具有里程碑意義的季度。第三季度，我們實現了 1.72 億美元的收入，同比增長 51%。我們繼續在我們的大型客戶群中看到特別的優勢，那些每年向我們支付超過 100,000 美元的客戶，並在本季度結束時擁有 1,260 名大客戶，環比增長 16%，同比增長 71%。現在，我們的簽約客戶平均每年在我們身上花費超過 100,000 美元，高於 2 年前我們上市時的平均 72,000 美元，這證明了我們向越來越大的企業銷售的成功。

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.

我們以美元為基礎的淨留存率保持在 124% 的強勁水平，我們在本季度實現了超過 79% 的創紀錄毛利率。這也是一個里程碑式的季度，因為我們實現了盈利，實現了正的營業利潤率和每股收益。當我們上市時，我們預計我們將在 2022 年下半年達到盈虧平衡。在今年早些時候的投資者日，我們將該預測更新至 2022 年第一季度，但我們持續的強勁增長和不懈的效率使我們達到了這一里程碑甚至更早。雖然我們為能夠盈利而感到自豪，但我想重複我在上個季度的財報電話會議上所說的話。

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.

我們的長期營業利潤率目標為 20%。我們對實現這一長期目標的能力仍然充滿信心，但我們並不急於實現目標。當我們說長期時，我們是認真的。只要我們能夠實現非凡的增長，我們預計我們會將我們的利潤重新投入到我們的研發和銷售和營銷機器中。我們幾乎沒有從新產品中獲得創意，以供客戶購買。我們預計未來幾年我們可能會徘徊在盈虧平衡點以下或略高於盈虧平衡點。我們不會將我們的利潤存入銀行，而是將它們重新投入到我們的業務中，投資於創新並為我們的平台帶來更多客戶，而這正是我們所做的，我們在第三季度發布新產品的迅猛步伐已經證明了這一點並進入第四季度以及我們在新大客戶方面的創紀錄增長。

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.

我們傾向於在所謂的創新發布期間推出新產品。自上次電話會議以來，我們舉辦了其中 2 場：Speedweek，我們發布了新的速度增強功能，並展示了我們運行世界上最快的安全性、零信任和全方位交付網絡；生日週，這是我們對 Cloudflare 發布的年度慶祝活動，我們在此宣布新產品，我們認為這些新產品是回饋互聯網的創新禮物。這幾週不僅提供新產品，它們也是我們為吸引新客戶所做的一些最有效的營銷活動。

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，在今年的生日週期間，我們的自然入站潛在客戶飆升了近十倍。我認為這是因為客戶希望將賭注押在致力於創新的公司身上，而這些年來，我們已經證明，創新深深植根於 Cloudflare 的 DNA 中。前一年的生日週使加密網絡的規模翻了一番，沒有計量的 DDoS 緩解措施，並推出了我們的無服務器計算平台 Cloudflare Workers。我們的策略一直是儘早將這些產品推向市場，然後不斷地迭代以改進它們，直到它們成為我們的同類最佳和重要的新業務線。

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.

今年我對 3 生日週產品公告感到特別興奮。 R2，為 Cloudflare Workers 開發的對象存儲，我們的第一個電子郵件安全產品，這是客戶一直要求我們進入的領域，Cloudflare for Offices 將讓許多人連接到我們的零信任網絡世界上入住率最高的建築，只需插入一根跳線即可。

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.

在年底之前，我們還有 2 個創新周計劃。全棧週，我們將詳細介紹我們員工的無服務器計算平台和 CIO 週的最新發展，我們將推出更多針對 CIO 的產品，並展示 Cloudflare 的網絡，他們可以插入而不必擔心還要別的嗎。靜候佳音。

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 如何如此快速地創新。我們不僅展示了發布新產品的能力，而且還展示了將這些產品構建成有意義的新業務線的能力。我們創新步伐的關鍵始於我們靈活的平台。構成 Cloudflare 網絡的每台服務器都能夠運行我們的每一項功能。我們向客戶開放的工人首先是計算平台，我們的開發人員在此平台上構建我們自己的大部分功能和我們完全軟件定義的網絡，然後將流量路由到最有效處理的地方。這很重要，因為這意味著新產品被採購所擱置，但並不止於此。

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.

我們成功的秘訣之一是我們擁有數百萬客戶的廣泛客戶群。其中許多人免費使用我們的服務，這意味著我們有一個渴望在新功能發布之前測試新功能的人。雖然傳統的 B2B 公司擁有廣泛的 QA 團隊，但我們會定期邀請我們社區的志願者成為我們最早的 alpha 測試人員。我們的迭代周期可以非常快。當一項功能在我們的一個企業客戶處投入生產時，它已經是萬無一失的，已經在真實的網絡條件下完成了。

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.

並非所有事情都會取得巨大成功，但這是創新新產品如此容易孕育的肥沃土壤。商業中的傳統智慧是你應該專注並做好一件事。對於建立一家優秀公司來說，這是一個很好的戰略，但它從來都不是我們的方式。我們的目標不僅僅是建立一家優秀的公司，而且是一家標誌性的公司，履行我們幫助建立更好的互聯網的使命。我們正在構建任何企業都可以插入的網絡，而不必擔心其他任何事情。這就是我們的客戶告訴我們他們需要的。

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.

它需要我們做很多事情，隨著時間的推移，我們會變得非常出色。作為一個平台，您一次獲得一個功能。但越來越多地，我從客戶那裡聽到的一個重複主題是，我們贏得了這個位置，不僅僅是作為功能提供商，而且是他們的基礎網絡平台。考慮到這一點，讓我強調一下本季度的一些勝利。

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 強製藥公司擴大了對我們 Cloudflare One 平台的使用。他們簽署了 600,000 美元的擴張協議，使他們的總合同超過 200 萬美元。他們正在使用我們廣泛的服務，包括 Cloudflare Gateway，我們的零信任 Web 應用程序網關。他們欣賞我們平台的各個部分如何組合在一起以提供一個統一的網絡。這是一項具有競爭力的交易，我們的統一方法憑藉其窄點解決方案擊敗了所有其他零信任供應商。

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 強製造公司採用 Cloudflare One 來保護其 50,000 名員工。他們簽訂了一份價值超過 50 萬美元的 2 年合同。他們以前基於硬件的方法無法跟上他們看到的最新安全威脅。技術團隊熟悉 Cloudflare。許多人使用了我們為開發人員提供的即用即付產品，並支持我們成為最高管理層的買家。同時，C-suite 採購員從另一家製造公司的同行那裡聽說他們非常喜歡與 Cloudflare 合作，並對我們的創新速度表示讚賞。這是我們看到成功的一個很好的例子，在組織內自下而上和自上而下地銷售。

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.

一家大型歐洲軟件公司採用了我們的零信任解決方案。他們簽署了一份為期 3 年 600,000 美元的合同。在評估 Cloudflare 與其他領先的零信任解決方案時，他們認為我們的產品更豐富、更靈活、更具可擴展性且更易於部署。他們還讚賞我們的集成方法，它提供了一個單一平台來解決他們廣泛的網絡安全、性能和可靠性需求。

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 強零售商採用 Cloudflare Workers 在黑色星期五之前構建可擴展的在線零售應用程序。他們正在使用耐用的物品來管理他們預計這個假日季節會出現極高的交通量。他們欣賞我們的可定制性和輕鬆的可擴展性。他們已經對他們的應用程序進行了每秒超過 100,000 筆交易的壓力測試，並且工作人員毫不費力地處理了它。他們簽署了每年 200,000 美元的協議，我們預計隨著他們將更多的在線零售應用程序轉移到我們的平台上，該帳戶將顯著增長。

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.

一家中東金融服務提供商簽署了一份為期 3 年、價值 600,000 美元的交易。他們讚賞我們遍布中東的全球網絡以及我們提供服務的能力，這些服務將他們的敏感客戶數據保存在他們所服務的地區。處理數據局部性要求是邊緣計算優於傳統雲的超能力之一。該客戶已成為該地區其他企業的擁護者。

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.

一家國家航空公司為我們的 Cloudflare One 服務簽署了 180,000 美元的合同。他們讚賞我們的安全產品具有更高的準確性和更低的誤報率。這是我們在 COVID 剛開始時就開始與之交談的客戶。雖然我們的銷售週期通常非常快，通常仍不到四分之一，但這個週期很慢，因為它們處於受大流行嚴重影響的行業。但我強調我們在第三季度贏得了一筆交易，因為我認為它在隧道盡頭顯示出光明。即使是受 COVID 影響很大的行業，如航空公司，也開始恢復正常。正如他們所做的那樣，他們再次呼籲我們幫助他們解決網絡安全、可靠性和性能需求。

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.

如果我退後一步，我會注意到 2021 年第三季度與 2020 年第三季度在很多方面都不同。雖然去年，隨著人們取消假期並不間斷地工作，夏季的季節性似乎消失了，但今年，世界大部分地區都出現了顯然迫切需要假期的封鎖。 7 月和 8 月比正常情況要安靜，該季度最終的後端負載比我們通常看到的要多。在過去兩週與同行公司交談並聽取財報電話會議，我們認為這對我們來說沒有什麼獨特之處。

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.

但是，從一個急需的假期中恢復過來，IT 組織現在似乎已經準備好捲起袖子，為後 COVID 世界更新他們的堆棧。十月開始非常強勁。僅僅在第一周，一家著名的社交網絡就選擇了 Cloudflare One 作為他們的零信任解決方案，並簽署了一份每年至少價值 100 萬美元的合同。同一周，最大的視頻會議服務之一受到攻擊並加入 Cloudflare，簽署了一份 800 萬美元的年度協議。他們推了很多流量。我們相信，我們是唯一一家擁有規模和敏捷性的網絡供應商，能夠在一個週末內讓他們加入。最酷的部分是，我們不僅減輕了攻擊，而且他們的網絡性能實際上得到了改善。最重要的是，隨著時間的推移，我們有信心為他們節省更多的其他提供商的網絡帶寬費用，而不是我們自己收取的費用，這是一種完全神奇的體驗，也是建立非常粘稠的客戶關係的秘訣。

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，我要感謝所有努力幫助我們的客戶建立業務並不辜負我們幫助建立更好的互聯網的使命的團隊。

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

有了這個，我會把它交給 Thomas 來遍歷這些數字。托馬斯，把它拿走。

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，馬修，也感謝大家加入我們。在創紀錄的大客戶增加的推動下，我們又交付了一個出色的季度，這繼續超過收入。我們在第三季度實現了一個重要的里程碑，首次達到非公認會計原則的營業利潤和淨利潤盈利能力。這一里程碑證明了我們商業模式的實力以及我們推動高增長和運營槓桿的能力。

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.

轉向收入。第三季度總收入同比增長 51% 至 1.723 億美元。您可能還記得，在 2020 年第三季度，與客戶續訂相關的一次性收益為 190 萬美元，不包括此一次性收益，我們的收入同比增長將達到 53.5%。收入的增長是由另一個季度的強勁客戶需求推動的，無論是在新標識的獲取方面，還是在我們現有客戶群的擴張方面。

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.

從地理角度來看，我們看到美國和國際的持續實力。美國占收入的 53%，同比增長 53%。 EMEA 佔收入的 26%，同比增長 62%。亞太地區佔收入的 14%，同比增長 25%。我們在歐洲看到的加速增長給我們留下了特別深刻的印象，這是由大客戶的實力和擴張推動的。我們繼續通過京東雲擴展我們的中國網絡，與我們之前的中國網絡相比，我們的客戶的性能提升了 30% 或更多。

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.

轉向我們的客戶指標。我們在本季度結束時擁有 132,390 名付費客戶，同比增長 31%。第三季度新增大客戶數量再創紀錄，連續增加 172 家大客戶，同比增加 524 家。截至本季度末，我們擁有 1,260 家大客戶，同比增長 71%。我們看到大客戶的顯著擴張，這使我們能夠保持 124% 的強勁美元淨保留率，與上一季度一致。

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.

三季度毛利率為79.2%，環比增長120個基點。網絡資本支出佔第三季度收入的 15%。我們仍然致力於擴大我們網絡的足跡和容量，並預計 2021 財年網絡資本支出佔收入的 12% 至 14%。我們網絡資本支出範圍的增加是由於在戰略客戶增長之前增加了投資。

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.

轉向運營費用。第三季度運營費用佔收入的百分比環比和同比下降 3% 至 78%，在另一個強勁的招聘季度，我們看到我們的員工總數同比增長 32% 至年底約 2,240本季度。

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.

本季度的銷售和營銷費用為 7760 萬美元。銷售和營銷佔收入的百分比環比和同比持平。本季度的研發費用為 3280 萬美元。研發佔收入的百分比環比下降 1%，從去年同期的 21% 下降至 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.

本季度的一般和行政費用為 2390 萬美元。 G&A 佔收入的百分比從去年同期的 16% 環比和同比下降 2% 至 14%。我們繼續看到第三季度強勁的經營槓桿，營業利潤率同比提高 530 個基點。營業收入為 220 萬美元，而去年同期的營業虧損為 450 萬美元。在過去的幾年裡，我們一再加快我們的盈利時間線，從 2022 年下半年首次公開募股的初始目標到最近的 2022 年第一季度，正如今年早些時候我們的投資者日提供的那樣。

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.

由於我們業務模式固有的經營槓桿特徵，我們在第三季度改變了盈虧平衡點。也就是說，我會回應馬修強調的內容。既然我們已經實現了收支平衡，我們打算將多餘的盈利能力再投資於業務以實現增長。我們對實現 20% 或更高的長期營業利潤率目標的能力仍然充滿信心。當我們說長期時，我們是認真的。 Cloudflare 針對創新進行了優化，我們計劃繼續推出新產品、擴大客戶群、不懈地執行和再投資以實現增長，以尋求我們面前的重大市場機會。

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.

轉向淨收入和資產負債表。我們本季度的淨收入為 140 萬美元或每股淨收入 0.00 美元。我們第三季度的有效稅率為 53%。我們想為我們在第三季度進行的融資活動提供一些額外的色彩。 8 月，我們利用有利的市場條件，成功推出了本金金額為 13 億美元的 2026 年到期的零息可轉換優先票據。以這些有吸引力的條款獲得的額外資本使我們能夠更加靈活地繼續投資和擴大業務規模，同時鞏固我們強大的財務狀況。

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.

我們在第三季度結束時擁有 18 億美元的現金、現金等價物和可供出售的證券。這包括我們在本季度發行可轉換票據的約 7.9 億美元淨收益。自由現金流為負 3970 萬美元，佔收入的 23%，而去年同期為負 1790 萬美元，佔收入的 16%。第三季度經營現金流為負 690 萬美元，佔收入的 4%，環比減少 1440 萬美元，同比減少 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，與回購 2025 年可轉換優先票據相關的經營現金流和自由現金流中包含 2940 萬美元的現金流出。正如我們之前提到的，由於營運資金的持續波動、大型企業業務的增長和季節性因素，我們預計現金流利潤率將繼續出現一定程度的波動。剩餘履約義務 (RPO) 為 5.45 億美元，環比增長 13%，同比增長 60%。當前的 RPO 是總 RPO 的 75%。我們對業務的持續增長保持樂觀和信心。

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，我們很高興提高季度和全年的指導。對於第四季度，我們預計收入在 1.84 億美元至 1.85 億美元之間，同比增長 46% 至 47%。我們預計運營虧損將在 100 萬美元之間達到盈虧平衡，我們預計每股淨虧損為 0.01 美元至盈虧平衡。出於建模目的，請注意，如果我們在第四季度報告正淨收入，我們預計我們的股票數量將是 3.45 億股完全攤薄後的股票，而如果我們報告淨虧損，則為 3.2 億股基本股。我們預計稅費為 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.

對於 2021 年全年，我們預計收入在 6.47 億美元至 6.48 億美元之間，同比增長 50%。我們預計全年的經營虧損在 1050 萬美元至 950 萬美元之間，我們預計在此期間每股淨虧損在 0.06 美元至 0.05 美元之間，假設大約有 3.12 億股流通在外的普通股。我們預計稅費為 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，我們非常自豪地跨越了盈利能力的重要里程碑，這僅在 IPO 後 2 年，比我們在 IPO 時最初分享的預期時間線提前了 1 年。我們要感謝所有 Cloudflare 員工對創新和交付的持續奉獻，以及我們的客戶、合作夥伴和社區的無盡信任和支持。

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

有了這個，我想打開它來提問。接線員，請投票提問。

(Operator Instructions) Your first question comes from 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。

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.

恭喜這裡的結果。我猜馬修或託馬斯，在大客戶中的成功再次令人印象深刻。現在我想，很明顯，這反映了你的產品和願景。但是，您能否談談可能對其中一些大型交易產生積極影響的其他方面，例如直接代表的生產力，也許是合作夥伴影響交易？我知道每個人都想知道當你在這裡進入更大的企業時的競爭格局。

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.

是的。我先開始，Matt，然後 Thomas 可以再補充一些。所以我認為成功往往是把很多事情做好的結合。隨著時間的推移，我們確實繼續向越來越大的客戶進軍高端市場。所以我認為有幾件事是正確的。一，隨著我們成功推出越來越多的產品，我們看到這些產品依附於我們現有的客戶。因此，大約一半的新客戶、大客戶是現有客戶，他們在我們身上花費更多並成長為這一類別。

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.

但另一半是新客戶——對我們來說是全新的標誌。我認為這既是我們建立銷售團隊的成功，也是我們進入市場的行動，我們越來越多地擁有絕對一流的現場銷售人員，他們與越來越大的客戶建立了關係。我們看到在走向高端市場方面取得了成功。

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.

我認為我們想要交付的東西和我們正在建造的東西，如果你從現在開始快進 10 年，它將看起來像一個傳統的企業銷售團隊。正如我們一直說的那樣，我們構建的方式有什麼不同，即我們可以在需求背後進行投資，而不是在需求之前進行投資。而且我認為不同之處在於，當我們繼續向高端市場移動時，我們犯錯的可能性降低了。

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，我認為我們沒有看到重大變化。我認為我們 - 我們在競爭對手中的獲勝率繼續非常有吸引力並且正在提高。我們仍然認為，我們正在更換一大堆舊硬件盒。而且我認為我們站在歷史的正確一邊，因此越來越多的客戶轉向我們。

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.

我認為最後一件事是，COVID 對 IT 組織來說是一個真正的警鐘。我一遍又一遍地從最大的公司那裡聽到，即使是過去非常沉默寡言的人，他們也不想再經歷這樣的事情了。因此，可能對使用 Cloudflare 等服務猶豫不決的組織現在認為我們是明智之舉。所以我認為，雖然 COVID 是困難的，因為 IT 組織真的關閉了艙口並關閉了一切，我認為我們現在看到的是人們正在從另一邊出來，人們說，“好吧，我需要擁抱雲，我需要擁抱像 Cloudflare 這樣的服務。”而且我認為這是 - 我們正處於一個每個人都在接聽電話的獨特時期。

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。然後我不得不問一下R2。顯然，這是本季度一個非常令人興奮的公告。我知道影響模型需要時間。但也許你可以多談一點——雙擊這確實將你們定位為真正的邊緣雲提供商，現在 R2 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。所以對於那些可能沒有密切關注的人來說，R2 是我們的對象存儲。如果您考慮成為雲提供商的關鍵組成部分，您必須擁有計算能力，但您還必須有一種存儲數據的方式。其中一些是數據庫，我們正在以各種方式構建它們。其中一些也是您存儲對象的方式。因此，這些就像處於邊緣的文件。由於我們所處的位置，我們是許多大型雲提供商客戶面前的網絡，我們能夠真正研究客戶如何使用各種雲提供商。

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中，對我們來說正確的事情是建立一個對象存儲。與一些更傳統和傳統的雲提供商相比，我們所處的位置的獨特之處之一是，因為我們分佈在邊緣，它使我們能夠顯著提高我們擁有的帶寬使用效率。因此，雖然典型的雲提供商必須向一系列中間商支付費用才能從弗吉尼亞州的阿什本交付到地球的另一端，但我們已經在地球的另一端，而且我們通常與所有其他那裡的網絡，這意味著我們在我們可以提供的帶寬交付成本方面具有固有的競爭優勢。

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，由於我們擁有具有吸引力的定價這一事實，我們應該將其傳遞給客戶。我們很高興構建 R2 並看到它如何進一步增強我們的 Workers 平台，人們每天都在構建越來越複雜的應用程序。我認為這將允許它加速。

Your next question comes from Alex Henderson from Needham.

您的下一個問題來自 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?

我希望您能談談 R2 產品所暗示的 TAM 規模。我的意思是，很明顯，這是一個巨大的機會，但我們很難真正掌握這個機會的規模，因為與收入相關的大部分數據都會被大公司的業務所掩蓋。當你在做的時候，如果你能談談比特幣、區塊鏈公告、電子郵件公告和辦公室網絡，是否——這對你的潛在機會有什麼幫助？

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.

亞歷克斯，這是一大堆要經歷的事情。我們有一整週的公告，我想你只是列出了所有的公告供我總結。但讓我開始吧。因此，我認為 R2 還處於早期階段。但我認為我們希望 R2 能夠在市場上產生巨大的破壞性，不僅讓我們能夠獲得更多的對象存儲支出，而且還對所有不同的雲提供商施加下行壓力，以消除他們的出口費用。公司在向他們發送數據時不收取任何費用，但隨後收取可能是大量加價的費用，這是完全荒謬的，是批發價格的 80 倍以將數據取回。而且我們認為這是不可持續的，我們希望將其降低。

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.

這對我們有吸引力的原因是我們認為我們的長期機會實際上是成為將各種雲提供商連接在一起的結構。在一個理想的世界裡，我們從客戶那裡聽到的是，他們想要使用一些 Cloudflare 服務，但他們想要使用 Google 服務、Microsoft 服務和 Amazon 服務，並按順序從所有這些不同的供應商中挑選出他們需要的最佳服務以提供更強大的應用程序。我認為這是市場隨著時間的推移不可避免的方式。能夠將這些不同的網絡連接在一起的結構對我們來說是一個非常強大的位置。

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 既是我們發展 TAM 的機會。但這也是我們加速我認為是不可避免的下一代云的機會，它允許客戶在多個雲中選擇最好的品種。而且我很樂觀，在整個行業中，如果我們真的鼓勵逐個功能的競爭，並且我們不以人為的方式鎖定客戶，例如對出口收費而不是入口收費，那實際上將擴大整個雲行業的 TAM。所以我看好這個領域的每個人。

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.

在公告的其餘部分，電子郵件是我們一直在詢問的領域之一——客戶一直在詢問我們。我認為它作為一種解決方案停滯不前。因此，我們認為，憑藉我們擁有的網絡以及我們在 DNS 服務以及其他服務方面所提供的所有內容中看到的數據，我們將能夠圍繞此提供非常出色的產品，我們從客戶那裡聽到的其中一件令他們特別興奮的事情是我們的瀏覽器隔離技術與電子郵件安全產品的真正結合。

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，如果您可以確保電子郵件中的任何鏈接實際上並未在您的本地計算機上執行，而是在孤立的瀏覽器中執行，而該瀏覽器在我們的邊緣已用完。我們擁有能夠做到這一點的所有組件。如果您回顧整個空間中發生的所有安全事件，那一項技術可以彌補大多數企業 IT 空間中最大的漏洞。所以這是一個我們認為非常令人興奮的領域。

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 是我們宣布將我們的設備從世界上大約 1,000 座人口最多和交通流量最大的辦公樓開始。我們認為，這只是讓客戶更容易進入我們的網絡。我們特別興奮的一件事是，我們實際上可以創建一個 MPLS 替代品來將各個分支機構連接在一起，但這樣做的方式幾乎是瞬間出現，而您通常需要等待數週或數月才能獲得這樣的專用網絡。

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.

我認為我們圍繞 Web 3.0 和加密空間宣布的內容，我認為我們希望成為傳統 Web 和 Web 3.0 可能帶來的東西之間的橋樑。我們已經在這個領域投資了很長一段時間。我認為我們並不確切知道它會去哪裡，而且我認為沒有人一定知道。但是我們有一個非常出色的團隊正在考慮這個問題，我們希望定位為，如果它確實成為 Cloudflare 幫助提供的軌道，以確保 Web 3.0 像一些樂觀的預測所暗示的那樣運行，它可以.

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.

再說一次，我認為如果您沒有關注我們的博客，如果您沒有關注我們的創新周並且您對 Cloudflare 感興趣，我們會嘗試讓這些公告盡可能易於訪問。我們嘗試下很多很多賭注。我們不知道所有這些都將成為本壘打。但是，如果您回顧一下生日週的歷史，Cloudflare Workers 和耐用物品之類的產品是我們在那段時間宣布的產品，隨後這些產品對我們來說成為了非常重要的業務線。

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?

因此，總結一下，您不僅將成為第四個雲，您實際上將成為第一個真正的網絡雲。這就是所有這些的意義所在？

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.

好吧，再一次，我認為我們專注於如何成為任何公司插入的網絡，並且實際上不必擔心其他任何事情。

Your next question comes from Shaul Eyal from Cowen.

您的下一個問題來自 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.

祝賀強勁的表現。 Matthew，在 Workers、Cloudflare One、Teams 上表現出色。還想听聽一點，與 Magic Transit 產品相關的任何勝利，您是否有能力取代 MPLS？我對 R2 進行了跟進。

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，肖爾。那——我認為Magic Transit 確實是我們的主要贏家之一。我認為它已經展示出來了——對於我們現有的銷售團隊來說，這是一個非常容易向現有客戶銷售的產品。因此，我在本季度強調的許多勝利，包括製藥公司、財富 500 強製造公司，都將 Magic Transit 作為整體捆綁的一部分。

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.

但我認為我聽到的越來越多的事情是，客戶越來越不認為我們提供單點解決方案或單一功能，而是我們已經贏得了成為提供整體解決方案的平台，再次成為該網絡客戶可以插入，而不必擔心其他任何事情。

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 是許多此類交易的一部分。作為其中的一部分，它變得非常粘稠。我們認為，隨著我們為 Cloudflare for Offices 所做的工作，這將進一步加速。再一次，向我們現有的客戶群銷售是一個非常自然的補充。它也是——我強調的交易發生在第四季度早期，大型視頻會議服務，它是——真的是——事實上，當我們設計 Magic Transit 時，我們說過如果我們建立這個正確的 1 天，這個特定的客戶將能夠註冊，我們不僅能夠幫助他們，從安全角度保護他們，而且我們還能夠真正加速他們的流量。

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.

這正是最終發生的事情。客戶受到了攻擊，我們能夠在他們需要的時候快速上船。他們自己擁有全球客戶群，當我們不僅能夠阻止攻擊，而且他們自己的內部測量，他們的表現變得更好時，他們感到非常驚喜。這就是為什麼我們稱Magic Transit 為魔術，它確實讓客戶感受到了魔術。

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?

知道了。明白了。 R2 上可能還有一個。我知道這絕對是早期的，但你如何描述到目前為止的註冊水平？

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.

脫離圖表。我的意思是，我認為我們對它在客戶群中引起的共鳴感到驚訝。在這些創新周期間，我們通常會看到我們的入境興趣有所上升。但就我們看到的有機線索而言，正如我在準備好的評論中提到的那樣，我們看到有機入境興趣的數量增加了 10 倍或 10 倍。而且我認為這表明客戶，無論大小，都覺得他們被傳統雲提供商收取的出口費用是同意的，他們正在尋找解決方案。如果我們能提供幫助，我認為這對我們來說是一個非常令人興奮的機會。

Your next question comes from Keith Weiss from Morgan Stanley.

您的下一個問題來自摩根士丹利的 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.

非常好的季度，伙計們。如果本季度表現出季節性放緩，那麼在夏季，如果您沒有看到季節性放緩，我不想看到您的季度是什麼樣子，這個衝刺確實沒有疲軟的跡象。我們就不斷擴大的解決方案組合談了很多。你是對的，它的擴張速度絕對令人難以置信。我們還談到了在向高端市場移動背後建立直銷隊伍。

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?

我們可以把兩者結合起來嗎？就像你們擴展解決方案組合一樣，如果你們在不同的方向進行創新，我的意思是，你們正在與核心安全人員打交道，現在正在處理電子郵件和核心網絡方面的人員伙計們，核心開發人員和工人，分發策略本身是否必須改變？你必須得到更多的細分嗎？或者您是否必須重組銷售隊伍來應對解決方案組合的擴展？

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，基思。所以首先，我注意到你向 Satya 提出的問題，聽起來像是關於我們的問題，但你沒有說出我們的名字。所以你有點...

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

我只是在談論許多嘗試...

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.

嗯，我很感激。再說一次，你不能太在乎狗，就好像你仍然是第 4 個問題一樣。因此，我們不斷調整誰——我們的銷售團隊的工作方式。例如，過去我們的解決方案工程團隊既是售前也是售後。現在我們擁有專業的售前和售後團隊。我的意思是——所以這是隨著時間的推移而進行的調整。

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.

我認為我們有專門研究各個領域的個別產品專家，並且我們進行了內部培訓，以確保我們的銷售支持在我們的整個團隊中都很強大。因此，隨著我們繼續進入高端市場，需要不同的銷售動作和不同類型的賣家，我們很驚訝在過去的 12 個月裡，我們有近 25 萬人申請在 Cloudflare 工作，這只是驚人。因此，如果你看一下，大約一半的申請者是我們的上市團隊的，我們得到的人的素質和素質都很好。

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，隨著我們繼續建立這一點，我們將繼續不相信我們昨天所做的事情就是明天需要做的事情的解決方案，並且僱傭不同類型的銷售人員來服務更大的客戶，然後也有專業化穿過它。

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.

我認為我們內部做的一件有趣的事情是，很多這些新產品都來自我們稱為 ETI 的一個組，它代表新興、技術和孵化。而那群人——他們的目標是多次射門並推出大量產品。

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.

然後，當一個產品在合適的時間像工人或團隊一樣起飛時，這些產品就會升級到我們更傳統的產品和工程組。 ETI 集團確實有一個小型上市團隊來幫助實現這些新功能，編寫最初的劇本，而 Magic Transit 等某些產品非常容易添加到我們現有的客戶群中。實際上，像 Teams 這樣的東西有時是不同的買家，因此我們必須弄清楚如何在組織內部橫嚮導航。

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.

但是——正如我在一個例子中強調的那樣，我們越來越多地與 C 級高管建立關係，以便我們獲得高管贊助。再說一次，你必須做很多正確的事情才能繼續按照我們的方式執行。因此，我們的銷售團隊的樣子以及我們的上市團隊在 5 年後的樣子將與現在大不相同。但我認為這是一個非常自然的進展，從我們現在到我們要去的地方。

Your next question comes from James Fish from Piper Sandler.

您的下一個問題來自 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?

漂亮的季度。你們最近開始為大型企業客戶圍繞隱私做更多的事情。您對未來幾年業務的隱私部分有什麼期望，因為它與幫助保護消費者身份有關？然後，從廣義上講，您將更多地擴展到身份安全本身的策略是什麼？

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，吉姆。所以我們——當我們創辦公司時，就我們對產品的看法而言，確實有 3 個支柱是 Cloudflare 的核心價值觀。我們考慮過如何打造讓您更安全的產品，如何打造讓您更可靠的產品，以及如何打造讓您更快的產品。而且 - 每當我們考慮產品時，我們都會考慮如何做一件或多件事情。我認為在過去 4 年中變得很清楚的是，我們將在該列表中添加另外 2 項內容。

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.

一是效率。那麼我們如何構建能夠幫助客戶節省資金並真正為他們提供非常明確的投資回報率的產品。最後是隱私，我們從來沒有也永遠不會出售我們客戶的數據或我們客戶的客戶數據。所以我認為，這讓我們很容易遵守世界其他地區正在興起的隱私法規，並考慮我們的產品以使其符合這些法規。

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.

所以我看到有很多客戶。例如，我在準備好的評論中強調的中東銀行。他們非常感謝我們在他們服務的市場中擁有位置，並且我們可以幫助他們將數據保存在那裡，以便他們再次遵守這種隱私環境產生的法規。

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.

所以我認為是因為我們很容易將隱私放在首位。這是其他雲提供商所沒有的。他們都以一種或另一種方式附屬於他們的廣告業務。從這個意義上說，我們非常乾淨。因此，它使我們成為那些相信隱私是一項基本人權的組織的重要合作夥伴。所以我認為，這在我們的業務中非常一致。而且我認為我們並不完全知道它會去哪裡。但我認為，如果你不得不打賭，站在互聯網更私密的一邊，就是站在歷史的正確一邊。

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?

說得通。而 Cloudflare for Offices 在 R2 的影響下顯得有些黯然失色。所以我只想簡單地談一下。我們對明年辦公室數量的預期有什麼意義嗎？或者你是如何特別考慮這項業務的？

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.

是的。因此，我預測，在未來 10 年的過程中，可能對我們的業務產生最大影響的生日週的沉睡公告將是 Cloudflare for Offices。我們所看到的是，房東和房地產集團對能夠為其租戶提供 Cloudflare 服務的興奮程度遠高於我們的實際預期，不僅在發佈公告時，而且隨後也是如此。

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.

它真正提供的是任何租戶都可以插入我們的網絡，並且能夠，是的，快速連接到 Internet，同時還可以獲得我們提供的所有安全性、可靠性和效率收益。因此，我認為這種增長的設計很大程度上是由客戶需求的來源驅動的。我們已經確保能夠訪問大量辦公樓，並能夠從這些辦公樓連接到世界其他地方。但我認為，如果我們按照我們概述的願景執行，Cloudflare 很可能擁有整個互聯網上最大的骨幹網絡之一，如果不是最大的骨幹網絡之一，那麼這是一個機會。

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.

我再次認為，這將繼續執行我們的願景，即我們如何成為將所有這些不同服務連接在一起的結構，具有可編程和內置安全性的能力。再次，我們所說的我們的使命是，是為了幫助建立一個更好的互聯網。在某種程度上，我們正在做的是思考，天哪，如果我們都知道互聯網將會變成什麼，並且我們有一台時光機可以追溯到 40 年前並說，以不同的方式做事，我的意思是，Cloudflare 是那個時光機。我們繼續思考如何讓互聯網本身從根本上變得更好，並為我們的客戶提供真正的價值。

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 感到非常興奮。關注這個空間，因為我認為隨著我們的推進，將會有很多令人興奮的合作夥伴關係。然後它將成為我們可以為世界各地的客戶提供真正價值的東西。

Your next question comes from Patrick Walravens from JMP Securities.

您的下一個問題來自 JMP 證券公司的 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?

這是帕特的特雷弗沃爾什。馬修，我只想看看——你在準備好的評論中提到了很多勝利，談到本季度的零信任是一種驅動力。我只是想看看您是否可以提供一些進一步的細節，說明這些是通過 RFP 還是通過 RFI 進入的——作為更大的零信任供應商或參與者生態系統的一部分？或者只是——或者它真的更像 Cloudflare 或任何以競爭為中心的方式，以及那種方式——它們是如何發揮作用的？

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.

特雷弗，謝謝你的問題。在幾乎所有這些情況下，這些都是通過 RFP 或 RFI 流程進行的競爭性交易，或者它們是——即使它不是正式的 RFP 或 RFI 流程——也有其他名稱提供更有限的零信任功能集。我們看到的是，我們在那些競爭激烈的面對面交易中獲勝，因為首先，我們更容易部署和實施。其次，當您考慮到整個平台時，我們擁有更豐富的功能集。第三，我們為現有的投資提供顯著更高的投資回報率。第四，提供了整個網絡的自然集成。

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進入的一個新領域。但我為我們的團隊以及我們在零信任領域與一些知名供應商的勝率感到非常自豪。而且我認為我們有很大的機會繼續交付，因為我們再次構建了一個可以以我認為任何其他零信任供應商都沒有的方式擴展的平台。

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?

驚人的。偉大的。也許是托馬斯最好處理的一個快速的。我還注意到你們本季度再次擴展了專有網絡。我想知道是否有任何供應鏈問題使這個過程更具挑戰性，所以我們說，考慮到那裡的一些限制？

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.

並不真地。我們——我們的基礎設施團隊通過 COVID 和供應鏈中斷很好地管理了我們和網絡的足跡。我們提前訂購，我們簽署了長期協議，有時我們會提前訂購，以確保我們受到保護。所以我想說，我們在第三季度的建設中幾乎沒有看到供應鍊和中斷對我們的任何影響。

Your next question comes from Brent Thill from Jefferies.

您的下一個問題來自 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?

你讓喬換布倫特。祝賀結果。你們能否提供有關亞太地區的最新信息以及在中國的推廣情況？也許我們什麼時候可以期待該地區的增長恢復到更多的公司規範？

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.

我們實際上對我們所看到的進展感到滿意。請記住，在最近兩次財報電話會議上，我們曾表示我們將在年底前恢復到亞太地區的歷史增長率。我認為這仍然成立。我們已經看到第三季度的第一季度環比改善，同比增長率略有回升。那裡的團隊在讓我們達到目標方面做得非常好。因此，我認為我們正在按照我們之前所說的進行，並且我們將在本財年年底之前恢復到歷史增長率。

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。很高興聽到大筆交易的實力。也許只是對聯邦業務和那裡的任何舉措的更新？

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。所以我可以接受。我們——正如我們上個季度談到的那樣，我們——與埃森哲一起，能夠在整個業務中獲得一筆大筆交易。正如我們上次所說，我們預計到 2022 年之前這不會對收入產生重大影響，但進展非常順利。而且我認為我們看到的是越來越多的聯邦業務機構很高興與我們合作。

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.

我們還預計，在 2022 年初，我們將達到適度的完全 FedRAMP 合規性。根據我們現有的臨時合規性，我們已經能夠將我們出售給聯邦政府的成就。所以我認為，這使我們能夠實現這一目標。我們現在正在招聘，以便能夠建立我們的聯邦團隊，以應對我們預期的強勁需求。

Your next question comes from James Breen from William Blair.

您的下一個問題來自 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?

只是為了回答另一個問題，有人問了關於分佈的問題。你們正在提供更多產品，並且擁有 Cloudflare One 和 Workers 等產品。您的客戶群中是否有一部分可能不是大型企業，也不是可以由渠道合作夥伴類型的銷售場景提供服務的小端，您沒有將盡可能多的自己的資源投入其中，但仍然可以產生銷售在那個空間裡，這樣中端市場的企業才開始真正意識到他們需要很多你提供的產品？

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，我認為這個頻道已經成為我們組合的一部分，但還沒有達到我們認為有機會的地方。所以渠道一直是SaaS公司面臨的挑戰。而且我認為，從歷史上看，與我們合作的渠道合作夥伴面臨的問題之一是——對於我們的許多傳統產品，是否需要 5 分鐘才能上線。因此，對於增值經銷商而言，沒有太多價值可以增加。但我認為你所看到的是，隨著我們的產品變得越來越複雜，渠道合作夥伴能夠真正為此創造專業化和定制化的價值。

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.

因此，您會看到埃森哲是如何做到的，顯然，我們將其推向市場。我們與 IBM 建立了長期的渠道合作夥伴關係，這對我們來說非常成功。但我認為，在 2022 年擴大我們對渠道的使用是重點領域之一。我同意你的觀點，這是我們可以在進入市場的支出中獲得更多影響力的領域。

Your next question comes from Andrew Nowinski from Wells Fargo.

您的下一個問題來自富國銀行的 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?

我只是有一個 -- 我想跟進 SASE 市場中的 Cloudflare One。其他供應商聲稱您需要更多基於代理的架構來應用每個用戶的基礎，以便在這種零信任市場中真正有效。我只是想知道您是否可以在零信任或 SASE 空間的烘焙中提供更多顏色？

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，安德魯。所以我們是代理。我認為有時人們會認為，因為我們一開始是業內眾所周知的反向代理，而你——我們不是——我們不能成為正向代理，但事實證明這很容易流量以一種方式流過管道，因為它使流量以另一種方式流過管道。

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.

所以真正強大的是因為我們不僅建立了代理基礎設施，而且我們在全球 250 多個城市中，我們擁有令人難以置信的容量和可擴展性。我們內置了所有現有的安全功能通常會減慢速度。

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.

然後在廣泛的安全威脅基礎上，我們越來越多地看到攻擊者發起諸如拒絕服務攻擊之類的事情，而傳統提供商只是沒有能力保持領先地位，而我們這樣做是因為這是一部分什麼是我們更具歷史意義的產品。我認為我們正在構建的實際上是更多存在於單個設備上的客戶端以增強代理服務。

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，好消息是——對我們來說，因為我們擁有像 Cloudflare WARP 這樣的面向消費者的產品，所以我們擁有世界上最大的 QA 組織，每天有數以千萬計的人使用 WARP，選擇輪胎並確保它運行良好，不僅在台式機和筆記本電腦上，而且在手機等非常困難的環境中，通常有競爭力的解決方案會大量消耗電池壽命或降低性能。所以我認為我們有能力贏得這個空間。

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確保人們 - 有意識並且我們真正改進了我們的上市行動。但我們看到了成功，我們看到了勝利。當我們與其他一些競爭對手正面交鋒時，我真的很喜歡我們的勝率。

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?

那太棒了。然後可能只是換檔，我只是想問另一個關於 R2 的問題。您認為在 R2 中部署存儲的一些更典型的用例是傳統的企業工作負載嗎？或者你認為它可能是更多的下一代用例，比如自動駕駛汽車等等？

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.

興趣——我的意思是——所以我們專注於現在，並專注於為今天存在的公司和今天存在的問題構建解決方案。所以我們有一個內部規則，任何在談論 Cloudflare Workers 時提到無人駕駛汽車的人都必須試一試。所以我認為我們——我寧願押註今天存在的應用程序。例如，我們從一家非常關注黑色星期五流量的大型零售商那裡看到的情況，我們正在構建一個可以輕鬆擴展到每秒超過 100,000 個請求的解決方案。

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.

如果您對此進行數學計算，那就是超過 1 萬億次的 1 個客戶——每季度超過 1 萬億次請求。而且我們每天看到來自 Workers 用戶的近 1 萬億次請求。因此，我們擴展和交付實際應用程序的能力實際上是建立在過去 4 年我們將該產品投放市場這一事實之上的。隨著我們添加諸如 R2 之類的東西，我認為它只會繼續使其成為一個更豐富的平台，並且我們正在看到真正的大型零售商、金融服務、醫療保健、採用。有一天，無人駕駛汽車也會使用它，這很棒。但與此同時，我們將專注於當下的實際問題。

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

Julianne，我們可以回答最後一位分析師的問題嗎？

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

當然。您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，它們也都在 R2 上。馬修，我想知道如果 AWS 明天在理論上將出口費用降至 0，那麼在這種情況下，R2 的價值主張會是什麼？我想了解您對除了出口費用之外應該選擇 R2 還是 AWS 的原因有何看法？

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 明天將出口費用降至 0，我將為我們所有共同的客戶跳一支歡樂的舞蹈。我認為，這將使我們最終意識到什麼是雲的最終機會，這就是我們如何讓客戶利用亞馬遜提供的最好的東西，谷歌提供的最好的東西， Microsoft 提供的最佳產品、Oracle 提供的最佳產品以及 Cloudflare 提供的最佳產品。如果我們能成為將所有這些聯繫在一起的結構，那就太好了。

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，因為我認為 AWS 明天不會將出口費用降至 0，所以我們將生產性能至少與他們的產品一樣好的產品。但是，不要僅僅根據商定的出口費來評價客戶。所以我希望你的假設成真。我認為這不太可能，但這對客戶來說是一件好事。而且我認為這將迫使我們繼續在該領域進行創新，就像它會迫使其他所有人在該領域進行創新一樣，在這種情況下誰贏了客戶。

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?

很公平。然後我想你可能談到了最終成為第四大公共雲的目標。我想——而且我很好奇，這對你的 TAM 有什麼影響，你曾談到在幾年內達到 1000 億美元？這樣做有什麼作用？那麼你需要進行什麼樣的資本支出投資才能實現這一目標？

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，我認為這是好事——首先考慮問題的第二部分，好消息是我們已經在全球範圍內進行了大量資本支出投資。與傳統的集中式雲提供商相比，運行像我們這樣的邊緣網絡的效率實際上要低得多。我們受益於利用整個互聯網和世界各地的路由系統，然後可以將數據放在對客戶最有意義的地方並將其存儲在那裡。

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，我們在整個網絡中擁有大量存儲和計算能力。我們最初是一家安全公司，其中一件重要的事情是安全應用程序需要大量的計算。所以我們實際上已經部署了，不像一些更重要的 CDN 解決方案，當你看我們的筆記時，它們在計算上非常繁重。這就是我們能夠盡快擴展我們的計算解決方案的部分原因。

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?

他們也有大量的光盤。這意味著我們可以在這些位置提供存儲。我們有信心以一種對我們來說極具吸引力的經濟方式提供 R2 服務。我們也有信心，部分原因是我們的基礎設施團隊已經非常擅長建設我們需要的能力——如果我們確實看到了需求，這對我們將能夠投資於該需求背後的資本支出非常重要。因此，我認為收入的百分比不會有意義地改變我們的資本支出。但它可能 - 但如果它非常成功，我們的資本支出可能會上升，但這將與我們的收入上升相關。回答你的問題有意義嗎？

Yes. Perfectly.

是的。完美。

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

我們今天沒有時間提問。我想將電話轉回給管理層以結束髮言。

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.

我感謝 Cloudflare 的每個人為交付對我們來說真正具有里程碑意義的季度所做的辛勤工作。我們為實現盈利感到無比自豪。我只是想再重複一遍我說過的話，Thomas 說過的話，那就是我們遠沒有想出要建造的東西和客戶賣給它們的想法。因此，我們將繼續將我們的利潤再投資於業務，以建立我們真正相信將成為真正標誌性技術公司之一的公司。感謝大家成為投資者。感謝您收看。我們下個季度見。

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。感謝您的參與。您現在可以斷開連接。