Cloudflare Inc (NET) 2020 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Cloudflare Q4 2020 Earnings Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

女士們，先生們，感謝你們的支持，歡迎來到 Cloudflare 2020 年第四季度財報電話會議。 （操作員說明）請注意，今天的會議正在錄製中。 （操作員說明）

I would now like to hand the conference over to your speaker today, Jayson Noland, Head of Investor Relations. Thank you. Please go ahead, sir.

我現在想把會議交給今天的演講者，投資者關係主管 Jayson Noland。謝謝你。請繼續，先生。

Thank you for joining us to discuss Cloudflare's financial results for the fourth quarter 2020. With me on the call, we have Matthew Prince, Co-Founder and CEO; Michelle Zatlyn, Co-Founder, President and COO; and Thomas Seifert, CFO.

感謝您與我們一起討論 Cloudflare 2020 年第四季度的財務業績。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。

By now, everyone should have access to our earnings announcement. This announcement as well as our supplemental financial information may be found in our Investor Relations website.

到現在為止，每個人都應該可以看到我們的收益公告。本公告以及我們的補充財務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, the impact of the COVID-19 pandemic on our and our customers', vendors' and partners' operations and future financial performance; anticipated product launches and the time 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 net retention rate, free and paying customers and large customers. 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.

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 COVID-19 大流行對我們和我們的客戶、供應商和合作夥伴的運營以及未來財務業績的影響；預期的產品發布以及這些產品的時間和市場潛力；公司預期未來收入、財務業績、經營業績、非 GAAP 毛利率、非 GAAP 經營淨虧損、非 GAAP 每股淨虧損、已發行股票、非 GAAP 運營費用、自由現金流、非 GAAP有效稅率、美元淨保留率、免費和付費客戶以及大客戶。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 大流行和不利影響的範圍和持續時間一般國內和全球經濟市場的狀況。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。

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.

這些前瞻性陳述適用於今天，您不應依賴它們代表我們未來的觀點。我們沒有義務在本次電話會議後更新這些聲明。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.

除非另有說明，否則我們今天談論的所有數字（收入除外）都將基於調整後的非 GAAP 基礎。所有討論的當前和前期財務數據都反映在 ASC 606 下。您可以在我們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。

Before finishing up, I'd like to invite you to our virtual Investor Day tomorrow, starting at noon Pacific Time. We have an exciting agenda planned. Matthew will start things off with a focus on our culture of innovation; Michelle will be hosting a customer panel, including NCR, Garmin and Common Spirit Health; Jim Taylor, our Chief Product Officer, will host a panel of Cloudflare product leaders; and finally, Thomas will provide a financial update before we finish with Q&A. You'll find a registration page on our IR site.

在結束之前，我想邀請您參加明天太平洋時間中午開始的虛擬投資者日。我們計劃了一個激動人心的議程。 Matthew 將首先關注我們的創新文化； Michelle 將主持一個客戶座談會，包括 NCR、Garmin 和 Common Spirit Health；我們的首席產品官 Jim Taylor 將主持一個由 Cloudflare 產品負責人組成的小組；最後，Thomas 將在我們結束問答之前提供財務更新。您會在我們的 IR 網站上找到一個註冊頁面。

Additionally, we'll be virtually participating in the JMP Tech Conference on March 1 and the Morgan Stanley TMT Conference on March 2.

此外，我們將以虛擬方式參加 3 月 1 日的 JMP 技術會議和 3 月 2 日的摩根士丹利 TMT 會議。

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 an excellent quarter that topped off a remarkable year. We achieved $125.9 million in revenue, up 50% year-over-year. For the year, our revenue was a bit over $430 million, up 50% over 2019. I wanted to pause to thank all our team at Cloudflare for the hard work that resulted in another year of extraordinary growth.

謝謝你，傑森。我們有一個出色的季度，為非凡的一年畫上了圓滿的句號。我們實現了 1.259 億美元的收入，同比增長 50%。這一年，我們的收入略高於 4.3 億美元，比 2019 年增長了 50%。我想停下來感謝我們 Cloudflare 的所有團隊的辛勤工作，他們的辛勤工作促成了又一年的非凡增長。

Beyond revenue, our other business metrics in the quarter were very strong. Our paying customer count grew to over 111,000, up 10% quarter-over-quarter and our strongest quarterly growth in several years. Large customers, those that spend over $100,000 per year with us, continue to be our strongest growth area, adding 92 new customers in Q4 and bringing our total large customer count to 828. Revenue from these large customers increased sequentially to 49%, up from 47% in Q3 as our sales team continues to close larger and larger enterprise accounts.

除了收入之外，我們本季度的其他業務指標也非常強勁。我們的付費客戶數量增長到 111,000 多個，環比增長 10%，是我們幾年來最強勁的季度增長。每年在我們這里花費超過 100,000 美元的大客戶仍然是我們增長最強勁的領域，第四季度增加了 92 個新客戶，使我們的大客戶總數達到 828 個。來自這些大客戶的收入環比增長到 49%，高於隨著我們的銷售團隊繼續關閉越來越大的企業客戶，第三季度為 47%。

As you look across customer segments by size, our large customer segment is growing the fastest. This is because of new logo wins and also because our land-and-expand motion is picking up steam. We saw initial evidence of this earlier in the year but are now seeing it reflected in lagging indicators like dollar-based net retention, which increased 300 basis points sequentially to 119% in Q4. While there may be some volatility in that number going forward, I'm encouraged that when you dig into what's behind that improvement, it's being driven primarily by customer adoption of our expanding product portfolio.

當您按規模查看客戶群時，我們的大型客戶群增長最快。這是因為贏得了新標誌，也因為我們的登陸和擴張運動正在加速。我們在今年早些時候看到了這方面的初步證據，但現在看到它反映在滯後指標中，例如基於美元的淨保留率，第四季度連續增加 300 個基點至 119%。雖然這個數字未來可能會出現一些波動，但我很鼓舞地發現，當你深入了解這種改進背後的原因時，它主要是由客戶採用我們不斷擴大的產品組合所推動的。

In particular, we're seeing more of our existing customers adopt Cloudflare for Teams, our zero trust network security solution as well as Magic Transit. Customers see that they can use the full range of Cloudflare's products to achieve the corporate network of the future. This is a vision we articulated with Cloudflare One, and it's resonating with customers.

特別是，我們看到越來越多的現有客戶採用 Cloudflare for Teams、我們的零信任網絡安全解決方案以及 Magic Transit。客戶看到他們可以使用 Cloudflare 的全系列產品來實現未來的企業網絡。這是我們通過 Cloudflare One 闡明的願景，並引起了客戶的共鳴。

In other words, our sales team is more successful in part because our R&D teams keep delivering more products and features our customers need. Innovation is the energy that fuels Cloudflare.

換句話說，我們的銷售團隊之所以更成功，部分原因在於我們的研發團隊不斷提供客戶需要的更多產品和功能。創新是為 Cloudflare 提供動力的能量。

One thing that kept coming up over the course of the quarter was how our pace of innovation is catnip for developers. This is something I plan to talk more about tomorrow at our Investor Day. But to give you a preview, from our earliest days, developers were our core audience. We made it easy for them to sign up and get started using our services without having to go through a traditional sales process. If a feature did not work exactly how they wanted, we let them have full control through our Workers development platform. And while we augment our developer-first sign-up process with a terrific sales team, every product we launch is designed to be adopted by developers first.

在整個季度中不斷出現的一件事是我們的創新步伐如何吸引開發人員。這是我計劃在明天的投資者日上更多討論的事情。但讓您預覽一下，從我們最早的時候開始，開發人員就是我們的核心受眾。我們讓他們可以輕鬆註冊並開始使用我們的服務，而無需經過傳統的銷售流程。如果某個功能不能完全按照他們的要求運行，我們會讓他們通過我們的 Workers 開發平台進行完全控制。雖然我們通過出色的銷售團隊增強了開發人員優先的註冊流程，但我們推出的每款產品都旨在首先被開發人員採用。

One way of measuring this is the rate at which developers are adopting our Cloudflare Workers edge computing platform. In Q4, more than 50,000 new developers wrote and deployed their first Cloudflare Worker. That rate of new developers building on Workers for the first time in the quarter has more than doubled since we last reported it in Q2.

衡量這一點的一種方法是開發人員採用我們的 Cloudflare Workers 邊緣計算平台的速度。在第四季度，超過 50,000 名新開發人員編寫並部署了他們的第一個 Cloudflare Worker。自我們上次在第二季度報告以來，本季度首次在 Workers 上構建新開發人員的比例增加了一倍多。

But it's not just Workers that bring developers to Cloudflare's platform. That's why one of my favorite stories from the quarter was not one of our biggest wins on a dollar basis but rather one that I think evidences how developers see the broader Cloudflare platform. The engineering team at one of the leading software companies themselves building tools for developers approached us about better securing their own development environment.

但將開發人員帶到 Cloudflare 平台的不僅僅是 Workers。這就是為什麼本季度我最喜歡的故事之一不是我們以美元計算的最大勝利之一，而是我認為證明開發人員如何看待更廣泛的 Cloudflare 平台的故事。一家領先的軟件公司的工程團隊自己為開發人員構建工具，就更好地保護他們自己的開發環境與我們接洽。

This project wasn't imposed by the IT organization from the top down but instead led by developers at the company from the bottom up. They knew, having seen increasing threats and attacks like the one that impacted SolarWinds, they needed better access control. They led the process to find the best solution, and they chose Cloudflare Access, part of our Cloudflare for Teams suite. In our conversations with them, one theme kept coming up. Cloudflare is the only company with a zero trust solution that really understands and is built for the needs of developers.

這個項目不是由 IT 組織自上而下強加的，而是由公司的開發人員自下而上領導的。他們知道，在看到像影響 SolarWinds 的威脅和攻擊不斷增加後，他們需要更好的訪問控制。他們主導了尋找最佳解決方案的過程，他們選擇了 Cloudflare Access，這是我們 Cloudflare for Teams 套件的一部分。在我們與他們的談話中，一個主題不斷出現。 Cloudflare 是唯一一家擁有零信任解決方案的公司，它真正理解並為開發人員的需求而構建。

It's a $70,000 annual deal to start, and we expect we'll be able to grow with this customer. But I think it's an indication of something more important. Developers are the future of IT, and having won their trust, we expect will help us win, retain and expand more and more customers over time.

這是一項每年 70,000 美元的交易，我們希望能夠與該客戶一起成長。但我認為這預示著更重要的事情。開發人員是 IT 的未來，贏得他們的信任後，我們希望隨著時間的推移幫助我們贏得、留住和擴大越來越多的客戶。

To that end, here are some of our more traditional big wins for the quarter. A Fortune 500 oil and gas conglomerate signed a 3-year $1 million deal to implement a portion of our Cloudflare One architecture, including Magic Transit, DDoS mitigation, firewall and DNS. We replaced spend they have with legacy telecom providers. They had faced serious technical challenges trying to integrate the telecom's network services with third-party offerings. We also beat out a number of point cloud solutions. The customer appreciated our ease of use, technical innovation and the way multiple products fit together into a unified solution.

為此，這裡有一些我們本季度更傳統的重大勝利。一家財富 500 強石油和天然氣集團簽署了一項為期 3 年 100 萬美元的協議，以實施我們 Cloudflare One 架構的一部分，包括 Magic Transit、DDoS 緩解、防火牆和 DNS。我們取代了他們對傳統電信提供商的支出。在嘗試將電信的網絡服務與第三方產品集成時，他們面臨著嚴峻的技術挑戰。我們還擊敗了許多點雲解決方案。客戶讚賞我們的易用性、技術創新以及將多種產品組合成一個統一解決方案的方式。

A Fortune 500 U.S. financial provider signed a 3-year $1.6 million deal to replace legacy telecom spend and move toward the Cloudflare One architecture. They were particularly impressed with our product road map and our pace of innovation.

一家財富 500 強美國金融提供商簽署了一項為期 3 年 160 萬美元的協議，以取代傳統的電信支出並轉向 Cloudflare One 架構。他們對我們的產品路線圖和創新步伐印象特別深刻。

Sticking with financial services for a second. A Fortune 500 Asian financial services company signed a 4-year $8.5 million deal with us. They, too, are implementing our Cloudflare One architecture to modernize their corporate network. While we often win deals that are driven by developer teams, this is an example of a classic IP-led RFP. Our sales team engaged with the customer, built a relationship and won the business. As part of the win, our solutions engineering team was able to use our Cloudflare Workers platform to seamlessly migrate the customer from their previous provider.

堅持金融服務一秒鐘。一家財富 500 強亞洲金融服務公司與我們簽署了一項為期 4 年 850 萬美元的交易。他們也正在實施我們的 Cloudflare One 架構來實現其企業網絡的現代化。雖然我們經常贏得由開發團隊推動的交易，但這是典型的 IP 主導的 RFP 示例。我們的銷售團隊與客戶互動，建立關係並贏得業務。作為勝利的一部分，我們的解決方案工程團隊能夠使用我們的 Cloudflare Workers 平台將客戶從他們以前的提供商無縫遷移。

A Fortune 500 pharmaceutical company leaned into their Cloudflare implementation, further adopting the Cloudflare One architecture. They signed a $450,000 per year deal to add our Magic Transit service. The company had received a threat from a hacker targeting their network. We received a call from the customer on a Friday and had them onboarded over the weekend. I think this speaks both to the nimbleness of our solution and also to the fact that when existing customers have security needs, Cloudflare is increasingly their first call.

一家財富 500 強製藥公司依靠其 Cloudflare 實施，進一步採用 Cloudflare One 架構。他們簽署了一項每年 450,000 美元的協議以增加我們的 Magic Transit 服務。該公司收到了針對其網絡的黑客威脅。我們在周五接到了客戶的電話，並讓他們在周末入職。我認為這既說明了我們解決方案的靈活性，也說明了當現有客戶有安全需求時，Cloudflare 越來越成為他們的第一選擇。

A Fortune 500 semiconductor provider signed a 3-year $1.4 million deal to replace a legacy network provider. The buyer appreciated our technical innovation, the way our products seamlessly work together and our performance. They said their previous vendor solution "works but it's clunky and slow with bolted on parts." As for Cloudflare, he described us as "much more agile" and "the company of the future." That really made me smile.

一家財富 500 強半導體供應商簽署了一項為期 3 年 140 萬美元的交易，以取代一家傳統網絡供應商。買家讚賞我們的技術創新、我們的產品無縫協作的方式以及我們的性能。他們說他們以前的供應商解決方案“可行，但它笨重且速度慢，需要用螺栓固定部件。”至於 Cloudflare，他將我們描述為“更加敏捷”和“未來的公司”。這真的讓我微笑。

A Fortune 1000 enterprise software provider signed a 3-year $2.6 million deal to implement Cloudflare across their organization. They initially came to us in order to improve their performance in China, something they struggled to be able to do with any other provider. They were also impressed with our Workers edge computing platform. They're a fast-growing, technically savvy organization, and we look forward to growing with them on their path to joining our other Fortune 500 customers.

一家財富 1000 強企業軟件提供商簽署了一項為期 3 年 260 萬美元的協議，以在其整個組織內實施 Cloudflare。他們最初來找我們是為了改善他們在中國的表現，這是他們很難通過任何其他供應商做到的。他們也對我們的 Workers 邊緣計算平台印象深刻。他們是一個快速發展、精通技術的組織，我們期待與他們一起成長，加入我們其他財富 500 強客戶的行列。

Before I hand it over to Thomas, I wanted to take a second to reflect back on 2020. It was a remarkable year for Cloudflare, for the Internet, and well, for all of humanity. We were proud to be there when the world needed the Internet more than ever before, helping our customers shift to remote work, ensuring the network itself could scale to handle a massive increase in traffic, providing the Athenian Project and Cloudflare for Campaigns to ensure cyberattack didn't disrupt the 2020 election, and most recently, launching Project Fair Shot to help governments, municipalities, hospitals, clinics and pharmacies around the world more fairly distribute the COVID-19 vaccine.

在將它交給 Thomas 之前，我想花點時間回顧一下 2020 年。對於 Cloudflare、互聯網乃至全人類來說，這是不平凡的一年。當世界比以往任何時候都更需要互聯網時，我們很自豪能夠在那裡幫助我們的客戶轉向遠程工作，確保網絡本身可以擴展以處理大量增加的流量，提供雅典項目和 Cloudflare 以確保網絡攻擊沒有擾亂 2020 年的選舉，最近還啟動了公平射擊項目，以幫助世界各地的政府、市政當局、醫院、診所和藥房更公平地分發 COVID-19 疫苗。

As one of the hundreds of organizations that has reached out to implement Project Fair Shot said the other day, "Cloudflare has literally helped save lives." It was incredible to watch our team rapidly build the technology behind Project Fair Shot on our Workers platform and deploy it at tremendous scale in a matter of weeks. We're incredibly proud of how our technology and expertise helped make a challenging year a little bit better.

正如前幾天伸出援手實施 Project Fair Shot 的數百家組織之一所說，“Cloudflare 確實幫助挽救了生命。”看到我們的團隊在我們的 Workers 平台上快速構建 Project Fair Shot 背後的技術並在幾週內大規模部署它，真是令人難以置信。我們為我們的技術和專業知識如何幫助充滿挑戰的一年變得更好而感到無比自豪。

But it wasn't easy. We had to shift to working remotely while continuing to recruit, hire, innovate, deliver, scale and sell our services. While there were some tailwinds, there were a lot of headwinds, too. In April, for instance, traffic grew across our network more in 2 weeks than we had expected it to over 2 years. That put pressure on our business. Less than 5% of our revenue comes from usage-based products. So when traffic spikes, our associated costs spike, but our revenue doesn't automatically follow.

但這並不容易。我們不得不轉向遠程工作，同時繼續招聘、僱用、創新、交付、擴展和銷售我們的服務。雖然有一些順風，但也有很多逆風。例如，4 月，我們網絡的流量在 2 週內的增長超過了我們預期的 2 年多。這給我們的業務帶來了壓力。我們只有不到 5% 的收入來自基於使用的產品。因此，當流量激增時，我們的相關成本也會激增，但我們的收入不會自動隨之而來。

Now customers love the predictability of it. The last thing anyone wanted in 2020 was a surprise bill, and our consistent pricing is one of the things that differentiates us. But that means our team has to do the hard work, renegotiating bandwidth agreement, inventing new technologies and continuing to wring out every penny of efficiency.

現在客戶喜歡它的可預測性。任何人在 2020 年最不想看到的就是意外賬單，而我們始終如一的定價是讓我們與眾不同的因素之一。但這意味著我們的團隊必須做艱苦的工作，重新談判帶寬協議，發明新技術並繼續榨取每一分錢的效率。

That's why I was particularly impressed that our gross margin was 78.1% in Q4. It's actually down 60 basis points year-over-year. I'm proud of the fact, however, that we could do all the things to keep the Internet working the way it needed to in 2020, and it only costs us 60 basis points. We didn't raise prices on our customers when they needed us most. We didn't sacrifice the quality of our service. We did what we do, embedded new technology and got more efficient. And going into 2021, look out, we're a lean, mean innovation machine, and we have no intention of slowing down.

這就是為什麼我對第四季度的毛利率為 78.1% 印象特別深刻。它實際上同比下降了 60 個基點。然而，我感到自豪的是，我們可以做所有事情來讓互聯網在 2020 年按照需要的方式運行，而且只需要 60 個基點。我們沒有在客戶最需要我們的時候提高價格。我們沒有犧牲服務質量。我們做了我們所做的，嵌入了新技術並提高了效率。進入 2021 年，注意，我們是一台精益求精的創新機器，我們無意放慢腳步。

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

有了這個，我會把它交給托馬斯。

Thank you, Matthew, and thank you to everyone for joining us. While it has been a year of challenges, I'm extremely proud of our team's performance and unrelenting execution in serving our customers and global community with an outstanding fourth quarter where we again exceeded the high end of our guidance, wrapping up an exceptional year across the board.

謝謝你，馬修，感謝大家加入我們。雖然這是充滿挑戰的一年，但我為我們團隊在為客戶和全球社區服務方面的表現和不懈的執行力感到非常自豪，第四季度表現出色，我們再次超過了我們指導的高端，結束了非凡的一年董事會。

Total revenue for the fourth quarter increased 50% year-over-year to $125.9 million. Total revenue for fiscal 2020 also increased 50% year-over-year to $431.1 million. Since 2016, we've grown at a compound annual growth rate of 50%, demonstrating our continued growth at scale.

第四季度總收入同比增長 50% 至 1.259 億美元。 2020 財年的總收入也同比增長 50% 至 4.311 億美元。自 2016 年以來，我們以 50% 的複合年增長率增長，證明了我們在規模上的持續增長。

From a geographic perspective, we saw noteworthy strength in the U.S. and EMEA. The U.S. represented 53% of revenue and increased 54% year-over-year. EMEA represented 26% of revenue and increased 60% year-over-year. Asia Pacific represented 16% of revenue and increased 33% year-over-year.

從地理角度來看，我們在美國和 EMEA 看到了顯著的實力。美國占收入的 53%，同比增長 54%。 EMEA 佔收入的 26%，同比增長 60%。亞太地區佔收入的 16%，同比增長 33%。

As you know, JD signed a 3-year deal last year to build out 150 points of presence in China, and we're excited to say that the relationship is off to an excellent start. Baidu renewed its contract in the fourth quarter for the next 6 months. We're in the process of transitioning from Baidu to JD as our primary partner in China. This transition might result in temporary short-term headwinds to growth in that region.

如您所知，京東去年簽署了一項為期 3 年的協議，在中國建立 150 個網點，我們很高興地說，雙方的關係有了一個良好的開端。百度在第四季度續簽了未來 6 個月的合同。我們正在從百度過渡到京東作為我們在中國的主要合作夥伴。這種轉變可能會對該地區的增長造成暫時的短期阻力。

Expanding internationally remains a priority. We opened 3 new international offices in 2020, the first in Tokyo, followed by Paris and Toronto. With our inverted go-to-market strategy, we invest behind the demand we are seeing and the success of the customers we acquire, helping to remove risks as we continue to expand internationally.

國際擴張仍然是一個優先事項。我們在 2020 年開設了 3 個新的國際辦事處，第一個在東京，其次是巴黎和多倫多。憑藉我們的反向上市戰略，我們投資於我們看到的需求和我們獲得的客戶的成功，幫助消除我們繼續國際擴張的風險。

Turning to our customer metrics. We exited the quarter with more than 3.5 million total free and paying customers, representing an increase of 38% year-over-year. In Q4, we had a record quarter of paying customer additions, adding over 10,000 paying customers sequentially and over 27,000 paying customers year-over-year. We ended the quarter with 111,183 paying customers, representing an increase of 32% year-over-year. The acceleration in paying customer growth was primarily driven by increased new product adoption from free to paying customers.

轉向我們的客戶指標。本季度結束時，我們的免費和付費客戶總數超過 350 萬，同比增長 38%。在第四季度，我們有一個創紀錄的季度增加付費客戶，連續增加超過 10,000 名付費客戶，同比增加超過 27,000 名付費客戶。本季度末，我們擁有 111,183 名付費客戶，同比增長 32%。付費客戶增長的加速主要是由於新產品從免費客戶到付費客戶的採用率增加。

We ended the quarter with 828 large customers, which we define as paying customers with greater than $100,000 in annualized revenue, representing an increase of 57% year-over-year. We added 92 large customers sequentially and over 300 in 2020. We saw significant expansion from our large enterprise customers, which helped to drive a dollar-based net retention rate of 119%, representing a 3-point increase sequentially.

本季度結束時，我們擁有 828 名大客戶，我們將其定義為年收入超過 100,000 美元的付費客戶，同比增長 57%。我們連續增加了 92 個大客戶，到 2020 年增加了 300 多個。我們看到大型企業客戶的顯著擴張，這有助於推動基於美元的淨保留率達到 119%，連續增加 3 個百分點。

Our enterprise go-to-market efforts generated significant ROI, which we look forward to providing additional insight on during our Investor Day tomorrow. Efficiency remains at the core of our business and is demonstrated in the consistently high gross margin we generate from growing revenue and in the low CapEx we need to deploy and build out the footprint and capacity of our network.

我們的企業上市努力產生了可觀的投資回報率，我們期待在明天的投資者日期間提供更多見解。效率仍然是我們業務的核心，這體現在我們從不斷增長的收入中產生的持續高毛利率，以及我們需要部署和構建我們網絡的足跡和容量的低資本支出。

Fourth quarter gross margin was 78.1%, representing an increase of 80 basis points sequentially. Network CapEx represented 9% of revenue in the fourth quarter and 12% for the year, in line with the guidance shared last quarter. We expect to see continued variability in how we deploy network CapEx over the year, but we expect that we'll continue to trend down as a percentage of revenue.

第四季度毛利率為 78.1%，環比增長 80 個基點。網絡資本支出佔第四季度收入的 9%，全年佔收入的 12%，與上一季度的指引一致。我們預計今年我們部署網絡資本支出的方式會持續變化，但我們預計我們佔收入的百分比將繼續呈下降趨勢。

Turning to the operating expenses. Fourth quarter operating expenses as a percentage of revenue increased 1% sequentially and decreased 18% year-over-year to 82%. We had another strong hiring quarter with an increase of 41% year-over-year, bringing our total number of employees to 1,788 at the end of the quarter.

轉向運營費用。第四季度運營費用佔收入的百分比環比增長 1%，同比下降 18% 至 82%。我們又迎來了一個強勁的招聘季度，同比增長 41%，使我們的員工總數在本季度末達到 1,788 人。

Sales and marketing expenses were $58.2 million for the quarter. Sales and marketing as a percentage of revenue increased 1% sequentially and decreased to 46% from 52% in the same quarter last year. We continue to invest in our go-to-market efforts to add sales capacity and expand our global footprint.

本季度的銷售和營銷費用為 5820 萬美元。銷售和營銷佔收入的百分比環比增長 1%，從去年同期的 52% 降至 46%。我們繼續投資於我們的上市努力，以增加銷售能力並擴大我們的全球足跡。

Research and development expenses were $25.7 million in the quarter. R&D as a percentage of revenue decreased 1% sequentially and decreased to 20% from 26% in the same quarter last year.

本季度的研發費用為 2570 萬美元。研發佔收入的百分比環比下降 1%，從去年同期的 26% 降至 20%。

General and administrative expenses were $19.9 million for the quarter. G&A as a percentage of revenue was flat sequentially and decreased to 16% from 22% in the same quarter last year.

本季度的一般和行政費用為 1990 萬美元。 G&A 佔收入的百分比環比持平，從去年同期的 22% 降至 16%。

Scaling our business efficiently remains a top priority, and we continue to see strong operating leverage in the fourth quarter, with operating margin improving 1,750 basis points year-over-year. Operating loss was $5.5 million compared to $18.3 million in the same period last year. Net loss in the quarter was $7.4 million or a net loss per share of $0.02. Our effective tax rate for Q4 was negative 28%.

有效擴展我們的業務仍然是重中之重，我們在第四季度繼續看到強勁的經營槓桿，營業利潤率同比提高 1,750 個基點。營業虧損為 550 萬美元，而去年同期為 1830 萬美元。本季度淨虧損為 740 萬美元或每股淨虧損 0.02 美元。我們第四季度的有效稅率為負 28%。

Turning to the balance sheet. We ended the fourth quarter with $1 billion in cash, cash equivalents and available-for-sale securities. Free cash flow was negative $23.5 million or 19% of revenue compared to negative $23.5 million or 28% of revenue in the same period last year. Operating cash flow was negative $8.8 million in the fourth quarter or 7% of revenue, which decreased $10.8 million sequentially and a slight decrease of roughly $200,000 year-over-year. The Q4 decrease in operating cash flow was driven primarily by an increase in DSOs due to seasonality. Collections, however, have come in strong in January.

轉向資產負債表。第四季度結束時，我們擁有 10 億美元的現金、現金等價物和可供出售的證券。自由現金流為負 2350 萬美元，佔收入的 19%，而去年同期為負 2350 萬美元，佔收入的 28%。第四季度經營現金流為負 880 萬美元，佔收入的 7%，環比減少 1080 萬美元，同比小幅減少約 20 萬美元。第四季度經營現金流量減少主要是由於季節性 DSO 增加所致。然而，一月份的收藏品表現強勁。

We expect 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. Additionally, we expect to see cash flow impact due to investments and leasehold improvements as we think towards the future of how we use our offices and reinvent our spaces to support a new hybrid work environment.

由於營運資金的持續波動、我們大型企業業務的增長和季節性因素，我們預計現金流量利潤率會出現一定程度的變化。此外，隨著我們考慮未來如何使用我們的辦公室和改造我們的空間以支持新的混合工作環境，我們預計會看到由於投資和租賃改善而產生的現金流量影響。

Before moving to guidance for the first quarter and full year, I would like to provide a brief update on COVID-related impacts and associated provisions we shared last quarter. Throughout 2020, we've disclosed the percentage of revenue represented by customers in COVID macro-sensitive industries such as transportation, hospitality and retail. This cohort represented 8% of revenue in the first quarter, 7% in the second and third quarter, and we are pleased to share that this percentage remained consistent at 7% in the fourth quarter. Customer concessions and bad debt also came in well below expectations again this quarter and have remained consistent with historical levels.

在開始第一季度和全年的指導之前，我想簡要介紹一下我們上個季度分享的與 COVID 相關的影響和相關規定。在整個 2020 年，我們披露了運輸、酒店和零售等對 COVID 宏觀敏感行業的客戶所佔收入的百分比。這一群體在第一季度佔收入的 8%，在第二和第三季度佔 7%，我們很高興地與大家分享，這一比例在第四季度保持在 7%。本季度客戶讓步和壞賬也再次遠低於預期，並與歷史水平保持一致。

In Q4, we saw another strong quarter of new ACV growth, increasing average customer spend and high sales productivity. Remaining performance obligations, or RPO, remained strong in Q4, coming in at $384 million, representing an increase of 12% sequentially and 75% year-over-year. Current RPO was 75% of total RPO.

在第四季度，我們看到了又一個強勁的新 ACV 增長季度，增加了平均客戶支出和高銷售效率。剩餘履約義務（RPO）在第四季度保持強勁，達到 3.84 億美元，環比增長 12%，同比增長 75%。當前 RPO 佔總 RPO 的 75%。

Given the strong growth and momentum we are seeing, we remain optimistic about the demand for our product and confident in the continued growth of our business. As such, we are pleased to again raise our outlook for both the quarter and full year.

鑑於我們看到的強勁增長和勢頭，我們對我們產品的需求保持樂觀，並對我們業務的持續增長充滿信心。因此，我們很高興再次上調本季度和全年的展望。

For the first quarter, we expect revenue in the range of $130 million to $131 million, representing an increase of 42% to 44% year-over-year. We expect operating loss in the range of $9 million to $8 million, and we expect net loss per share in the range of $0.03 to $0.02, assuming approximately 306 million common shares outstanding. We expect an effective tax rate of negative 20%.

對於第一季度，我們預計收入在 1.3 億美元至 1.31 億美元之間，同比增長 42% 至 44%。我們預計經營虧損在 900 萬美元至 800 萬美元之間，我們預計每股淨虧損在 0.03 美元至 0.02 美元之間，假設流通在外的普通股約為 3.06 億股。我們預計有效稅率為負 20%。

For the full year 2021, we expect revenue in the range of $589 million to $593 million, representing an increase of 37% to 38% year-over-year. We expect operating loss for the full year in the range of $25 million to $21 million, and we expect net loss per share over that period in the range of $0.09 to $0.08, assuming approximately 309 million common shares outstanding. We expect an effective tax rate for 2021 of negative 60%.

對於 2021 年全年，我們預計收入在 5.89 億美元至 5.93 億美元之間，同比增長 37% 至 38%。我們預計全年營業虧損在 2500 萬美元至 2100 萬美元之間，我們預計在此期間每股淨虧損在 0.09 美元至 0.08 美元之間，假設流通在外的普通股約為 3.09 億股。我們預計 2021 年的有效稅率為負 60%。

In closing, it was another very strong quarter, closing out an extraordinary year. I again want to thank our employees for delivering these great results and for their continued dedication.

最後，這是另一個非常強勁的季度，結束了非凡的一年。我要再次感謝我們的員工取得了這些偉大的成果，並感謝他們一直以來的奉獻精神。

We hope to see many of you tomorrow as we'll be hosting our first Investor Day where we look forward to sharing a deep dive on our products and platform as well as providing an update on our financial progress and targets.

我們希望明天能見到你們中的許多人，因為我們將舉辦第一個投資者日，屆時我們期待分享對我們產品和平台的深入探討，並提供我們財務進展和目標的最新信息。

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 the line of Philip Winslow from Wells Fargo.

（操作員說明）您的第一個問題來自富國銀行的 Philip Winslow。

Congrats on a great close, really, to this great year. In a quarter where a lot of numbers obviously jumped off the page, the one that really stood out to us was the customer count, the 10,000-plus that were added quarter-to-quarter in Q4. I mean that's almost as many as you added in all of 2019. Wondering if you can provide us just some more color on what's driving that. Is this new product like Teams? Is it a sort of area of your product set like security driving that? Just some more color on that would be awesome. And I just have one follow-up.

真的，祝賀這偉大的一年圓滿結束。在一個很多數字明顯跳出頁面的季度中，真正讓我們印象深刻的是客戶數量，第四季度每季度增加了 10,000 多個。我的意思是，這幾乎與您在 2019 年全年添加的數量一樣多。想知道您是否可以為我們提供更多關於驅動因素的顏色。這個新產品像 Teams 嗎？它是您產品集中的某個領域，例如安全驅動嗎？再多一些顏色就太棒了。我只有一個跟進。

Yes. Phil, thanks for the question. We were excited to see that the paying customer count was up as strong as it was, and that's our strongest quarter-over-quarter growth that we've had in some time. I think there's not one specific thing that I would point to. I think we've built what is a strong machine, sort of a strong horse plowing through a snow field, a Clydesdale, if you will. But I think that -- we're always looking for ways that we can get either our existing customers that are on the free version of our service to pay us or to get more people to come into the funnel. And so I think there are 3 different areas that I would point out.

是的。菲爾，謝謝你的提問。我們很高興看到付費客戶數量增長強勁，這是我們一段時間以來最強勁的季度環比增長。我認為沒有一件具體的事情是我要指出的。我認為我們已經建造了一台強大的機器，有點像一匹強壯的馬在雪地上犁過，如果你願意的話，也可以說是 Clydesdale。但我認為——我們一直在尋找方法，讓使用我們服務免費版本的現有客戶向我們付費，或者讓更多人進入漏斗。所以我認為我會指出 3 個不同的領域。

The first is that our total customer count had really strong performance as we saw people just adopting Cloudflare as a whole. A lot of those customers start out as free customers and migrate up. But some percentage will start as paying customers from day 1. And so as the total customer count grows, it was the strongest quarter-over-quarter growth we've had in all of the -- all of 2020, last quarter as well and that total customer count. That feeds that.

首先是我們的客戶總數表現非常強勁，因為我們看到人們只是從整體上採用了 Cloudflare。這些客戶中有很多一開始都是免費客戶，然後向上遷移。但從第一天起，一部分人將成為付費客戶。因此，隨著客戶總數的增長，這是我們有史以來最強勁的季度環比增長——整個 2020 年，以及上個季度和客戶總數。那養活了那個。

I think the second thing was we launched a new feature, which we call Automatic Platform Optimization, or APO. That had real appeal for a lot of our existing free customers where they could, with one click of a button and a payment to us, get substantial improvement on especially WordPress-driven sites. And so I think that that drove some additional attention and additional usage.

我認為第二件事是我們推出了一項新功能，我們稱之為自動平台優化或 APO。這對我們現有的許多免費客戶具有真正的吸引力，他們可以通過單擊按鈕並向我們付款，在尤其是 WordPress 驅動的網站上獲得實質性改進。所以我認為這引起了一些額外的關注和額外的使用。

And then we also saw some of the customers that were using the free versions of our Teams product. And if you remember, at the beginning of the pandemic, we made Cloudflare for Teams a free product. A lot, we had very good and very strong conversion of that, and that translated into paying customers, some of which showed up in the quarter.

然後我們還看到一些客戶正在使用我們 Teams 產品的免費版本。如果您還記得，在大流行開始時，我們讓 Cloudflare for Teams 成為免費產品。很多，我們對此進行了非常好的和非常強大的轉換，並將其轉化為付費客戶，其中一些出現在本季度。

So I think it was those 3 things plus us just continuing to execute. And again, I'm really proud of our team.

所以我認為是這三件事加上我們繼續執行。再一次，我真的為我們的團隊感到驕傲。

Great. And then just to follow up on that. Both Thomas and you highlighted gross margin, not just this quarter but this year. And it's really kind of a case study, so to speak, of converting variable cost to fixed or no cost. But I kind of want to take the other side of that, sort of using it as a competitive weapon versus other players in the space that might charge on a variable basis. Do you think about using that in '21 and beyond sort of as a way to think about displacements? Following the folks that maybe have these variable spikes and then had obviously variable change in their cost to their provider, how do you think about using sort of your fixed or no cost model as sort of a weapon in terms of competitive displacement?

偉大的。然後只是跟進。托馬斯和你都強調了毛利率，不僅是這個季度，還有今年。這實際上是一種案例研究，可以這麼說，將可變成本轉換為固定成本或無成本。但我有點想採取另一面，將其用作與該領域其他可能收費可變的玩家的競爭武器。您是否考慮在 21 世紀及以後使用它作為考慮位移的一種方式？跟隨那些可能有這些可變尖峰然後他們的提供商的成本明顯可變變化的人，你如何考慮使用你的固定或無成本模型作為競爭性替代方面的一種武器？

Yes. We've seen for quite some time that there is a lot of kind of angst over the surprise bill that variable-based billing leads to. And I think that especially as you're trying to sell a service like a security service, if you get a cyberattack, and all of a sudden, you get a bigger bill from your provider, then the provider is not that much different than the attacker themselves. Both of them are trying -- are costing you.

是的。很長一段時間以來，我們已經看到人們對基於變量的計費導致的意外賬單感到非常焦慮。而且我認為，特別是當你試圖銷售像安全服務這樣的服務時，如果你受到網絡攻擊，突然之間，你從你的供應商那裡得到了更大的賬單，那麼供應商與攻擊者自己。他們都在努力——讓你付出代價。

And so from the beginning, we really believed that it was important to keep our core services on a fixed, predictable basis. And so a theme that we're hearing already in Q4 and coming through now into Q1 is that companies, after the craziness of 2020, are looking for a real level of predictability. And we definitely see our ability to use our strong gross margin performance to potentially displace some of those providers that really surprised customers over the course of 2020.

因此，從一開始，我們就堅信將我們的核心服務保持在固定、可預測的基礎上非常重要。因此，我們在第四季度已經聽到並進入第一季度的一個主題是，在 2020 年的瘋狂之後，公司正在尋找真正水平的可預測性。而且我們肯定看到我們有能力利用我們強勁的毛利率表現來取代一些在 2020 年期間真正讓客戶感到驚訝的供應商。

What I would add is, I mean, there are 2 really good examples that always come to my mind where you can see how we can use their margin as a strategic weapon. One was certainly when we [mitigated] DDoS for the very first time. You saw it last year when we -- when we gave our Teams product away for free for pretty much most of the year. And then we added other products when we supported the election platform. So we've done that in the past and it will be -- we will stay with that strategy moving forward.

我要補充的是，我的意思是，我總是想到兩個非常好的例子，您可以在其中看到我們如何將他們的利潤用作戰略武器。一個當然是當我們第一次[緩解] DDoS 時。你去年看到了——當我們在一年中的大部分時間裡免費贈送我們的 Teams 產品時。然後我們在支持選舉平台時添加了其他產品。因此，我們過去已經這樣做了，而且將會是——我們將繼續推進這一戰略。

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

您的下一個問題來自 Piper Sandler 的 James Fish。

Congrats on the quarter. Matthew, you actually just mentioned the free-to-pay conversion of Teams is strong. Can you guys provide any more color as to really how much of that free base you've now converted versus kind of what's left to go chase in '21? And any other new kind of pipeline you got in Q4 for Teams?

祝賀這個季度。 Matthew，你實際上剛剛提到 Teams 的免費到付費轉換很強大。你們能否提供更多顏色，說明您現在轉換的自由基數與 21 年剩餘的自由基數相比有多少？您在第 4 季度為 Teams 獲得的任何其他新類型的管道？

Yes. So I think that we have 2 different ways that we look at that. So there -- first of all, there have been companies that started out on a small portion of their team using that Teams product. And so the Teams product grows naturally with the number of seats that adopt it. And so our team right now is focused on a lot of -- we had a lot of success, which we talked about last quarter, in converting those free customers to being paying customers. And now I think what we're trying to do largely for those is take them from being small customers and grow them into larger and larger customers over time. And so that's one bit of focus.

是的。所以我認為我們有兩種不同的方式來看待這個問題。所以 - 首先，有些公司開始使用該團隊產品的一小部分團隊。因此，Teams 產品隨著採用它的席位數量自然增長。因此，我們的團隊現在專注於很多——我們在上個季度談到了很多成功，將這些免費客戶轉變為付費客戶。現在我認為我們正在努力為這些人做的主要是讓他們從小客戶轉變為隨著時間的推移越來越大的客戶。所以這是一個重點。

I think we have continued to try to be really empathetic to the customers that continue to be in either industries or segments that are tough. And so we have continued to extend for those businesses that are still being hampered by the pandemic, the -- their payment terms and continue to extend that free offer. We want to be focused on the long term, and we think we're building our relationship with those customers. The feedback is that they're very positive. And while that's a small percentage of that overall base, that's something which we do think there's opportunity to ramp.

我認為我們一直在努力真正理解那些繼續處於艱難行業或細分市場的客戶。因此，我們繼續為那些仍受到大流行病阻礙的企業延長他們的付款條件，並繼續延長免費優惠。我們希望著眼於長期，我們認為我們正在與這些客戶建立關係。反饋是他們非常積極。雖然這只佔總體基數的一小部分，但我們確實認為這是有機會提升的。

But the bigger one is that we think that once an organization starts using the Teams product and we make that super easy for them to use for a small part of their organization, that gives us an opportunity to really expand that product over time. And that's really where our team is focused.

但更重要的是，我們認為，一旦一個組織開始使用 Teams 產品，並且我們讓他們在組織的一小部分人中使用起來非常容易，這讓我們有機會隨著時間的推移真正擴展該產品。而這正是我們團隊關注的重點。

Makes sense. And on the go-to-market side, you listed off a lot of wins, especially with Cloudflare One this quarter. Are reps leading with this or the individual solutions that still kind of comprise it? And just any sense to how much of new bookings it really drove this quarter?

說得通。在上市方面，您列出了很多勝利，尤其是本季度的 Cloudflare One。代表是領導這個還是仍然構成它的個人解決方案？它對本季度真正推動了多少新預訂有任何意義嗎？

Yes. I think that it depends. I think that the usual motion to adopting the full Cloudflare One suite remains that a customer will come to us with a very specific need. They'll need to put in new access controls around some of their applications, their services. They'll need to defend against a new vulnerability or cyberthreat that they've become aware of. But once we get into the selling motion, what we see is that customers really care about the overall platform and how it fits together. And that's what Cloudflare One represents.

是的。我認為這取決於。我認為採用完整 Cloudflare One 套件的通常動議仍然是客戶會帶著非常具體的需求來找我們。他們需要圍繞他們的一些應用程序和服務設置新的訪問控制。他們需要防禦他們已經意識到的新漏洞或網絡威脅。但是一旦我們開始銷售，我們就會看到客戶真正關心整個平台以及它如何組合在一起。這就是 Cloudflare One 所代表的。

And one of the things that Thomas will be talking about tomorrow during our Investor Day is how we have continued to see real strength in getting customers not just to adopt any one solution of -- or any one product of ours but to adopt that overall solution. And as we talked about in our IPO, what we think about is that once a customer is using 4 or more of our products, it's very, very difficult to compete with us because of the broad suite. And so we are definitely working with customers to try to get them to that 4 or more number. And Thomas will talk about tomorrow a little bit more of the success we've had doing that.

明天在我們的投資者日，Thomas 將要談論的一件事是，我們如何繼續看到真正的力量，讓客戶不僅採用我們的任何一種解決方案或我們的任何一種產品，而且採用整體解決方案.正如我們在 IPO 中談到的那樣，我們考慮的是，一旦客戶使用我們的 4 種或更多產品，由於套件廣泛，就很難與我們競爭。因此，我們肯定會與客戶合作，努力讓他們達到 4 或更多的數字。明天 Thomas 將更多地談論我們在這方面取得的成功。

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

你的下一個問題來自 Jefferies 的 Brent Thill。

Matthew, you mentioned the largest customer segment is growing the fastest. I'm curious if you could shed a little more light on that topic. And for Thomas, just tying into that. When you look at the quota-carrying reps that you'll add to meet the demand you're seeing in this large enterprise build-out into '21, are you accelerating your growth? Are you adjusting some of the adds that you made last year to address this segment of the market?

馬修，你提到最大的客戶群增長最快。我很好奇你是否可以更詳細地說明這個話題。而對於托馬斯來說，只是融入其中。當您查看為滿足您在 21 世紀這個大型企業擴建中看到的需求而添加的配額代表時，您是否正在加速增長？您是否正在調整去年為解決這一市場細分市場所做的一些補充？

Yes. Thanks, Brent. So I'll start and then Thomas can add some more color. So the first thing is -- and again, not to keep plugging Thomas' segment tomorrow, but I was just looking over the slides. And we're going to provide a lot more color on exactly how the various customer segments are working and how they -- how the growth is the strongest it's been and the largest customers is the fastest-growing portion of our business.

是的。謝謝，布倫特。所以我會開始，然後 Thomas 可以添加更多顏色。所以第一件事是——再說一遍，明天不要繼續插入 Thomas 的片段，但我只是在看幻燈片。我們將提供更多關於不同客戶群的確切工作方式以及它們如何增長的更多顏色 - 增長是如何最強勁的，最大的客戶是我們業務增長最快的部分。

I think that's driven by 2 different things. I think half of that is coming from our increasing ability at landing big deals early. And so we are seeing more and more that when there is a sort of traditional multimillion-dollar RFI or RFP which is submitted, that we have the team to be able to respond to that and win those deals. And the product is in place and we're winning more of those deals at the very beginning. And I think that's a really good sign.

我認為這是由兩個不同的因素驅動的。我認為其中一半來自我們在早期達成大交易方面不斷增強的能力。因此，我們越來越多地看到，當提交了一種傳統的數百萬美元的 RFI 或 RFP 時，我們的團隊能夠對此做出回應並贏得這些交易。產品已經到位，我們在一開始就贏得了更多這樣的交易。我認為這是一個非常好的跡象。

I think the other part that is a really good sign is that our land-and-expand motion continues to pick up steam. And we're seeing more customers grow into those larger categories. And again, tomorrow, Thomas will provide more clarity on that.

我認為另一個真正好的跡像是，我們的登陸和擴張運動繼續加速。我們看到越來越多的客戶成長為更大的類別。明天，Thomas 將再次說明這一點。

But I think that what we see across our entire organization is that we're adding the support in order to really make sure that those customers have a terrific experience. And that means bringing on great salespeople. We're not one of the companies that believe that you can get away without having salespeople. If you have customers who are spending $1 million to $10 million with you, they want to have someone that they can really build a relationship with. And so tomorrow, we'll outline a lot of -- some of those sales leaders who have joined our team and the really incredible kind of enterprise DNA that they're bringing with us. And I think that's making us a better and better company.

但我認為，我們在整個組織中看到的是，我們正在增加支持，以真正確保這些客戶擁有極好的體驗。這意味著要聘請優秀的銷售人員。我們不是那些相信您可以在沒有銷售人員的情況下逃脫的公司之一。如果您的客戶願意在您這里花費 100 萬到 1000 萬美元，那麼他們希望找到可以真正與之建立關係的人。所以明天，我們將概述很多 - 一些加入我們團隊的銷售領導者以及他們為我們帶來的真正令人難以置信的企業 DNA。我認為這使我們成為一家越來越好的公司。

And addressing your second question, we've invested heavily on sales capacity last year in terms of quota-carrying reps but also leadership. And we've hired great talent. I think the real positive over the last year was that we have been able to keep our sales productivity extremely high, both in terms of how fast we onboard people and how fast they ramp but also in terms of how much quota they retire once they are ramped on. And we will continue to invest in sales capacity moving into this year.

關於你的第二個問題，我們去年在配額代表和領導力方面對銷售能力進行了大量投資。我們聘請了優秀人才。我認為去年真正的積極因素是我們能夠保持極高的銷售效率，無論是在我們入職人員的速度和他們增加的速度方面，還是在他們退出後退出的配額方面。斜坡上。我們將繼續投資於今年的銷售能力。

I think we've always said that our commitment to spend on sales and marketing will continue as long as it returns those superior top line growth. And it worked really well and successfully. Last year, the team has done an outstanding job, and we'll continue to pursue this path for this year, too.

我想我們一直在說，只要能帶來出色的收入增長，我們就會繼續致力於銷售和營銷。它運作得非常好並且很成功。去年，團隊表現出色，今年我們也將繼續走這條路。

Your next question comes from the line of Keith Weiss from Morgan Stanley.

你的下一個問題來自摩根士丹利的 Keith Weiss。

Very, very nice quarter, very nice year, in fact. I'm going to disagree with my colleague Phil Winslow. I think the most impressive number I saw on the page was that expansion in net dollar expansion rate up to 119%. I think it really highlights both kind of your retention has remained rock solid, and you've been expanding really well within, particularly with those large customers. Can you talk just a little bit about -- maybe help us sort of understand the quantification of when a customer is buying Cloudflare One and getting the whole platform, what kind of uplift do you see on the typical customer when they're kind of going all in with the platform?

事實上，非常非常好的季度，非常好的一年。我不同意我的同事 Phil Winslow 的觀點。我認為我在頁面上看到的最令人印象深刻的數字是淨美元擴張率高達 119%。我認為這確實凸顯了您的保留率一直堅如磐石，並且您在內部的擴展非常好，尤其是那些大客戶。你能談談——也許可以幫助我們理解客戶何時購買 Cloudflare One 和獲得整個平台的量化，當他們有點走時，你看到典型客戶有什麼樣的提升都在平台上嗎？

Yes. Keith, I realized that's one of the numbers that we're following carefully [and can be really appreciated]. Dollar-based net retention is exceptionally a lagging indicator. And I think that we saw real success in our ability to sell more products to our customers over the course of the year. And so we expected that it would pick up, and it's heading in the direction that we want it to. We're not satisfied yet. We think there's a lot of improvement left to go. And I think we're a harsh judge of ourselves. We use a pretty conservative dollar-based net retention definition. And I think that that's been something that we've grown into.

是的。 Keith，我意識到這是我們正在密切關注的數字之一 [非常感謝]。基於美元的淨保留率是一個特別滯後的指標。而且我認為，在這一年中，我們在向客戶銷售更多產品方面取得了真正的成功。所以我們預計它會回升，並且它正朝著我們希望的方向前進。我們還不滿意。我們認為還有很多改進空間。而且我認為我們對自己很苛刻。我們使用非常保守的基於美元的淨保留定義。我認為那是我們已經成長為的東西。

What I think is important though is that it's a real indication of how our R&D team's ability to deliver new products really supplements the ability for our sales team to be able to sell more to our customers over time. And so what we're seeing is that with Cloudflare for Teams and with the broader sort of definition of Cloudflare One, that we are able to go to customers and get them to oftentimes significantly increase their spend with Cloudflare. And then over time, because the Cloudflare for Teams products are sold based on a seat basis, we think that we will be able to continue to expand with them over time in ways many of our traditional products have expanded.

但我認為重要的是，它真實地表明我們的研發團隊交付新產品的能力如何真正補充我們的銷售團隊能夠隨著時間的推移向客戶銷售更多產品的能力。因此，我們看到的是，借助 Cloudflare for Teams 以及更廣泛的 Cloudflare One 定義，我們能夠吸引客戶並讓他們經常顯著增加他們在 Cloudflare 上的支出。然後隨著時間的推移，由於 Cloudflare for Teams 產品是按席位銷售的，我們認為隨著時間的推移，我們將能夠以我們許多傳統產品已經擴展的方式繼續擴展它們。

So we're excited about this. We do see significant uplift from it. And I think that that's something that we're continuing to really track and [follow up].

所以我們對此感到興奮。我們確實看到了它的顯著提升。我認為這是我們正在繼續真正跟踪和 [跟進] 的事情。

A quick follow-up. I made an assumption in that question that the retention rate was remaining solid. Can you give us some visibility? In terms of that expansion in the net dollar expansion rate, are you -- is this only on the upsell portion? Or is there any change in the underlying kind of gross retention?

快速跟進。我在那個問題中假設保留率保持穩定。你能給我們一些知名度嗎？就淨美元擴張率的擴張而言，你 - 這只是在追加銷售部分嗎？或者潛在的總保留類型是否有任何變化？

Yes. We've had very strong numbers for quite some time. And I don't think that there's anything -- there hasn't been anything that has changed that underlying gross retention number. It's continued to trend at a very strong level. And so most of the improvement in dollar-based net retention is actually in our ability to better upsell to customers.

是的。很長一段時間以來，我們的數據都非常強勁。而且我認為沒有任何東西 - 沒有任何東西改變了潛在的總保留數字。它繼續以非常強勁的水平發展。因此，以美元為基礎的淨保留率的大部分改進實際上是我們更好地向客戶追加銷售的能力。

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

你的下一個問題來自 RBC 資本市場的 Matt Hedberg。 （操作員說明）

Congrats on the quarter and really the year. I wanted to ask about the SolarWinds or SUNBURST breach. Kind of curious if you saw it impact pipeline. Perhaps could it lead to more free Teams conversion? Just sort of curious on that aspect. I'd have to imagine you guys are in a pretty good spot to help a lot of your customers and potential future customers with those sorts of issues.

祝賀這個季度，真的是今年。我想詢問有關 SolarWinds 或 SUNBURST 漏洞的問題。如果您看到它影響管道，有點好奇。也許它會導致更多的免費團隊轉換？只是對這方面有點好奇。我不得不想像你們處於一個很好的位置，可以幫助很多客戶和潛在的未來客戶解決這類問題。

Yes. Thanks, Matt. We -- I think it's early for us to be able to indicate clearly whether that had a significant impact yet. I think that the first thing that was the question that we got from our customers was were we impacted. And the answer is no, we weren't a SolarWinds customer. I think the more important thing, and a story that I think that the market is waking up to, is how a zero trust approach to security, like the one that Cloudflare can help with, really acts almost as bulkheads in a ship.

是的。謝謝，馬特。我們——我認為我們現在能夠清楚地表明這是否產生了重大影響還為時過早。我認為我們從客戶那裡得到的第一個問題是我們受到了影響。答案是否定的，我們不是 SolarWinds 的客戶。我認為更重要的事情，也是我認為市場正在意識到的一個故事，是零信任的安全方法，就像 Cloudflare 可以提供幫助的方法，實際上幾乎充當了船上的艙壁。

There are going to be flaws in software over time, and SolarWinds was impacted this time. But the real challenge is that because an attacker was able to get in through SolarWinds, they were then able to, once they were in, move across the entire organization. And that is a symptom of the previous sort of castle-and-moat approach. Once you find one way across one moat, you have access to the entire castle. And that [challenge where] I think that the real brilliance of a zero trust approach is that it puts those natural bulkheads in place so that if there is some sort of breach in one part of an organization, the attacker then can't move laterally across the rest of that.

隨著時間的推移，軟件中會出現缺陷，這次 SolarWinds 受到了影響。但真正的挑戰在於，由於攻擊者能夠通過 SolarWinds 進入，一旦進入，他們就能夠在整個組織中移動。這是前一種城堡和護城河方法的症狀。一旦你找到一條穿過護城河的路，你就可以進入整個城堡。 [挑戰所在] 我認為零信任方法的真正優點在於它把那些天然的隔板放在適當的位置，這樣如果組織的某個部分存在某種漏洞，攻擊者就無法橫向移動在其餘部分。

And so that's something that we have implemented at our own security systems. And it allowed us to very quickly not only verify that we weren't using SolarWinds anywhere at Cloudflare but then also to really do an assessment that there was nothing else that created an issue for us. And I think also when we sell our Cloudflare for Teams products to customers, this idea of a much more modern zero trust approach to security is resonating.

所以這就是我們在自己的安全系統中實施的東西。它讓我們不僅可以非常快速地驗證我們沒有在 Cloudflare 的任何地方使用 SolarWinds，而且還可以真正進行評估，確保沒有其他問題給我們帶來問題。而且我認為，當我們向客戶銷售我們的 Cloudflare for Teams 產品時，這種更現代的零信任安全方法的想法正在引起共鳴。

And so I think SolarWinds is one instance where it's going to be a tailwind to sell more zero trust approaches. And we think that our zero trust approach is not only the most developer-friendly and the most effective that's out there, and I think over time, that will lead to more and more customers for us.

所以我認為 SolarWinds 是一個例子，它將成為銷售更多零信任方法的順風。我們認為我們的零信任方法不僅對開發人員最友好而且最有效，而且我認為隨著時間的推移，這將為我們帶來越來越多的客戶。

That's great. And then Thomas mentioned in the script that it sounds like in 6 months, you're going to be migrating away from Baidu to JD.com. Sort of curious on the thought process there. And I think you also mentioned that there could be a slight headwind. Just sort of wondering, is there any more clarification on what that might mean and really what the rationale is ultimately, at the end of the day, on that decision?

那太棒了。然後 Thomas 在腳本中提到，這聽起來像是在 6 個月後，你將從百度遷移到 JD.com。對那裡的思維過程有點好奇。我想你還提到可能會有輕微的逆風。只是有點想知道，在一天結束時，是否有更多關於這可能意味著什麼以及最終的基本原理是什麼的澄清？

Yes. So we -- one of the things I think is unique about Cloudflare is that we provide a truly global network that has -- that extends around the entire world, including into China. And so for our customers that care about performance in China, this is a way for us to be able to give them a unified platform. And that was a pretty ambitious goal for us to set out on, and we set out on a journey with Baidu in 2014 to build that one unified network and for them to be our partner in China. They have been a terrific partner to us over the course of the last 6-plus years. And we appreciate everything that they have done in order to help us do that.

是的。所以我們 - 我認為 Cloudflare 的獨特之處之一是我們提供了一個真正的全球網絡 - 延伸到整個世界，包括進入中國。因此，對於關心中國性能的客戶來說，這是我們能夠為他們提供統一平台的一種方式。這對我們來說是一個非常雄心勃勃的目標，我們在 2014 年開始了與百度的旅程，以建立一個統一的網絡並讓他們成為我們在中國的合作夥伴。在過去 6 年多的時間裡，他們一直是我們的絕佳合作夥伴。我們感謝他們為幫助我們做到這一點所做的一切。

We wanted to upgrade the network in China and really make it something that was going to be even more performant and dramatically increase the presence that we had. And so we went out looking at -- seeing whether it was Baidu or JD or who would be our partner for what we hope will be another 6-plus-year relationship. And the team at JD really impressed us both in terms of their technical acumen and their ability to help us really build out what is an extensive network across what is often a very complicated region for both technical and other reasons.

我們想升級中國的網絡，真正讓它變得更高效，並顯著增加我們的影響力。所以我們出去看看——看看是百度還是京東，或者誰會成為我們的合作夥伴，我們希望這將是另一個 6 年多的合作關係。 JD 的團隊在他們的技術敏銳度和幫助我們真正建立廣泛網絡的能力方面給我們留下了深刻的印象，因為技術和其他原因通常是一個非常複雜的地區。

And so over the course of the next 3 years, we're working with JD to build out over 150 points of presence in China alone. We'll be able to have our customers opt into using that if they want, and we can also generate revenue as JD sells the rest of our global network to customers elsewhere.

因此，在接下來的 3 年裡，我們將與京東合作，僅在中國就建立 150 多個網點。我們將能夠讓我們的客戶選擇使用它，如果他們願意的話，我們也可以通過京東將我們全球網絡的其餘部分銷售給其他地方的客戶來產生收入。

As we transition off, there was a payment that was coming from Baidu in the past for us. That will diminish. And we have a payment that comes from JD that -- to pick some of that up. But in the meantime, that transition, there may be some headwinds. We don't think it's going to be material, and it's all baked into our existing guidance.

當我們過渡時，過去有一筆來自百度的付款給我們。那會減少。我們有一筆來自京東的付款——用來提取其中的一些。但與此同時，這種轉變可能會遇到一些阻力。我們認為這不會是實質性的，而且它都融入了我們現有的指南中。

Your next question comes from the line of Amit Daryanani from Evercore.

您的下一個問題來自 Evercore 的 Amit Daryanani。

I guess 2 for me as well. First off, I was hoping if you could maybe talk about -- how do you think about product deployment versus product development in calendar '21? Because if I think about the last 12 months, right, the velocity of new product launch is fairly impressive. Can't imagine how much the TAM has expanded since the IPO. But as you think about calendar '21, should we think about this new product innovation to sustain the same cadence? Or do you think we'll spend more time perhaps scaling these products up to further increase your wallet share with customers?

我想我也是2。首先，我希望你能談談——你如何看待 calendar '21 中的產品部署與產品開發？因為如果我回想過去 12 個月，對，新產品發布的速度相當可觀。無法想像 TAM 自 IPO 以來擴大了多少。但是當您考慮 21 年日曆時，我們是否應該考慮這種新產品創新以保持相同的節奏？或者您認為我們會花更多的時間來擴大這些產品的規模，以進一步增加您在客戶中的錢包份額嗎？

Yes. Thanks for the question. And I think that our rate of innovation is something that Cloudflare was really designed for. And it's something that I'm going to be talking a lot about at the Investor Day tomorrow about how we do that. We have no intention of slowing down our rate of innovation. And so I think that you will see a series of product leaks that will be very similar to what you saw in 2020 with really great launches across that.

是的。謝謝你的問題。而且我認為我們的創新速度是 Cloudflare 真正設計的目標。這是我將在明天的投資者日談論我們如何做到這一點的事情。我們無意放慢我們的創新速度。因此，我認為您會看到一系列產品洩漏，這些洩漏將與您在 2020 年看到的非常相似，其中的發布非常棒。

That will include both taking products that we have announced and are currently in beta and moving them into GA. And so we're excited about some of the extensions to our Workers platform being generally available, things like Durable Object, and making that something that people can sink their teeth into and really work on. And the early feedback from the beta users has been terrific. But it also means us thinking about and dreaming up new ways to take our network and deliver more value to that. And so I think that 90% of our product and engineering organization is really focused on how do we take our existing products, take feedback from our users and continuously make those better, like a traditional product organization.

這將包括採用我們已經宣布和目前處於測試階段的產品並將它們移至 GA。因此，我們很高興看到我們的 Workers 平台的一些擴展已普遍可用，例如 Durable Object，並使人們可以全心投入並真正投入其中。測試版用戶的早期反饋非常好。但這也意味著我們要思考並想出新的方法來利用我們的網絡並為其提供更多價值。因此，我認為我們產品和工程組織的 90% 真正專注於我們如何利用現有產品，從用戶那裡獲取反饋並不斷改進它們，就像傳統的產品組織一樣。

But we have this one team which we call ETI, or emerging technology and incubation, which is about 10% of our R&D efforts who are really thinking about how do we dream up what is over the horizon. And they are not slowing down. And I think that a lot of the things that Cloudflare for Teams products and Cloudflare One, for example, are graduating out of ETI into our traditional product organization, and that frees up some headroom for them to start thinking about what are the next products that are going to shape the industry 18 months from now.

但我們有一個團隊，我們稱之為 ETI，或新興技術和孵化器，這大約占我們研發工作的 10%，他們真正在思考我們如何夢想未來的東西。他們並沒有放慢腳步。而且我認為 Cloudflare for Teams 產品和 Cloudflare One 的很多東西，例如，正在從 ETI 畢業到我們的傳統產品組織中，這為他們騰出了一些空間，讓他們開始考慮下一個產品是什麼將在 18 個月後塑造這個行業。

And if I could just follow up. As I think about the calendar '21 revenue guide, and I really appreciate you folks giving us a guide at this point, we did 50% plus revenue growth this year in calendar '20. I think the midpoint of the guide implies 37% growth in '21. What are the factors that are driving that sort of deceleration in '21?

如果我能跟進的話。當我想到 21 年日曆收入指南時，我真的很感謝你們在這一點上給我們提供指南，我們今年在 20 年日曆中的收入增長了 50% 以上。我認為該指南的中點意味著 21 年增長了 37%。在 21 世紀推動這種減速的因素是什麼？

Well, let me get started and then Matthew jump in. We have observed as well last year in times of uncertainty to be thoughtful and prudent about the guidance that we provided for the year. And I think we applied the same approach. We lean in more this year if you compare the guidance we gave the beginning of this year and compare it to last year.

好吧，讓我開始吧，然後 Matthew 插嘴。我們在去年的不確定時期也觀察到我們對我們為這一年提供的指導進行了深思熟慮和謹慎。我認為我們採用了相同的方法。如果您比較我們今年年初給出的指導並將其與去年進行比較，我們今年會更加傾向於。

But we also have to recognize the numbers become bigger. There's a law of large numbers, and there's still uncertainty out there that has not diminished making guidance an easier topic as last year. So I think it's a prudent and thoughtful approach, thinking through the opportunities but also weighing the risks that undoubtedly are still out there.

但我們也必須認識到數字變得更大。存在大數定律，並且仍然存在不確定性並沒有減少，這使得指導成為像去年一樣更容易的話題。因此，我認為這是一種謹慎而深思熟慮的方法，既要考慮機遇，也要權衡毫無疑問仍然存在的風險。

I would just echo what Thomas said. And I think that we have tried to be very thoughtful throughout this year. I remember at the -- when we were back in April after our -- early May and after our Q1 guidance, I mean we didn't know what the world was -- what's in store. And I think there's a lot of uncertainty still out in the world. And while we've seen an enormous amount of success and we're excited, we want to be extremely prudent about how we think about the future.

我只想回應托馬斯所說的。我認為我們在這一年中一直努力做到非常周到。我記得在 - 當我們在我們的 - 5 月初和我們的第一季度指導之後於 4 月份回來時，我的意思是我們不知道世界是什麼 - 商店裡有什麼。我認為世界上仍然存在很多不確定性。雖然我們看到了巨大的成功並且感到興奮，但我們希望在思考未來時非常謹慎。

Your next question comes from the line of Jonathan Ruykhaver from Baird.

您的下一個問題來自 Baird 的 Jonathan Ruykhaver。

Yes. Congrats on the performance. So I have a 2-part question on security. First, can you talk about the opportunity you're seeing to cross-sell across the more traditional WAF, Denial of Service products and the new WARP offerings like Access, Gateway and Browser Isolation? Just what kind of success are you seeing there? And then the follow-on would be what is the impact to cost of goods when you sell both that security reverse and forward proxy use case? Is that a point of future leverage in the model?

是的。祝賀演出。所以我有一個關於安全性的兩部分問題。首先，您能否談談您看到的交叉銷售更傳統的 WAF、拒絕服務產品和新的 WARP 產品（如訪問、網關和瀏覽器隔離）的機會？你在那裡看到了什麼樣的成功？然後後續將是當您同時出售安全反向和正向代理用例時對商品成本的影響是什麼？這是模型中未來的槓桿點嗎？

Yes. Thanks, Jonathan, for the 2 questions. I can take a stab at both and then Thomas may have something to add. So I think that we've been very pleasantly surprised at the way that there is a cross-sell opportunity from different products. I think the 2 that seem to go together like peanut butter and jelly for us has been our Access product, which is all about how do we secure the access to applications which are exposed to internal users, and our WAF and DDoS products.

是的。謝謝喬納森提出的兩個問題。我可以嘗試兩者，然後 Thomas 可能會補充一些內容。因此，我認為我們對不同產品存在交叉銷售機會的方式感到非常驚喜。我認為對我們來說似乎像花生醬和果凍一樣結合在一起的 2 是我們的訪問產品，它是關於我們如何保護對暴露給內部用戶的應用程序以及我們的 WAF 和 DDoS 產品的訪問。

I think other competitors in the market often think that sort of Access and Gateway fit naturally together, and we see that as well. But there's really an opportunity. And what we're seeing is that as people are adopting a zero trust approach, that means exposing more applications to the Internet. And while access controls are important to that and Internet gateways are important to that, when those things get exposed to the Internet, they have traditional web application firewall concerns, and they especially have DDoS mitigation concerns.

我認為市場上的其他競爭者通常認為這種接入和網關自然地結合在一起，我們也看到了這一點。但機會真的來了。我們看到的是，隨著人們採用零信任方法，這意味著將更多的應用程序暴露在互聯網上。雖然訪問控制對此很重要，互聯網網關也很重要，但當這些東西暴露在互聯網上時，它們會遇到傳統的 Web 應用程序防火牆問題，尤其是 DDoS 緩解問題。

And so those different products end up fitting very nicely together. And customers like that they can manage all of their security needs through one pane of glass. And that's, I think, something that is very differentiated in our products versus other products that are in the marketplace or trying to cobble together a number of different solutions in order to get what Cloudflare offers out of the box.

因此，這些不同的產品最終可以很好地組合在一起。客戶喜歡他們可以通過一個管理平台來管理他們所有的安全需求。我認為，這就是我們的產品與市場上的其他產品或試圖將許多不同的解決方案拼湊在一起以開箱即用的東西。

Your second question, I think, is -- it really goes to what is the other side of the same advantage that we have, which is that early on in Cloudflare's history, we made the determination that every single server everywhere across our network would run every single bit of our software. And so that means that we can deploy as we need more capacity for one product or another. The network automatically adjusts to that and allows us to be able to adapt.

我認為，你的第二個問題是——它真的涉及到我們擁有的相同優勢的另一面，即在 Cloudflare 歷史的早期，我們決定網絡中任何地方的每一台服務器都將運行我們軟件的每一點。因此，這意味著我們可以在需要為一種或另一種產品提供更多容量時進行部署。網絡會自動對此進行調整，讓我們能夠適應。

What that also means is that for products that are sort of, as you put it, forward versus reverse proxies, which is just the direction that traffic is flowing, it turns out you only pay -- and when you're paying for bandwidth, you only pay for the larger kind of in versus out. And so it can often be -- at least on a bandwidth basis, it can often be that we can add new products to a customers' overall bill without it significantly changing what our underlying cost infrastructure is.

這也意味著，對於像您所說的正向代理與反向代理的產品，這只是流量流動的方向，結果證明您只需要付費——當您為帶寬付費時，您只需為較大的輸入和輸出付費。因此，它通常可以——至少在帶寬的基礎上，我們可以將新產品添加到客戶的整體賬單中，而不會顯著改變我們的基礎成本基礎設施。

And I think that's part of the secret sauce of how Cloudflare works, is our product team is always looking at what are the excess resources that we have on our network and how can we deploy products in order to take advantage of those excess resources. And so the -- so as we add -- if we have a customer that's using our DDoS and WAF, if we get them to adopt Access and Gateway, it doesn't meaningfully change our cost basis. And that also means that we can be very competitive, and especially on an ROI basis, versus competitors, and we can bundle products together in a very effective way.

我認為這是 Cloudflare 工作原理的一部分，我們的產品團隊一直在研究我們網絡上有哪些過剩資源，以及我們如何部署產品以利用這些過剩資源。因此——正如我們補充的那樣——如果我們有一個客戶正在使用我們的 DDoS 和 WAF，如果我們讓他們採用 Access 和 Gateway，這不會顯著改變我們的成本基礎。這也意味著我們可以非常有競爭力，尤其是在投資回報率的基礎上，與競爭對手相比，我們可以以非常有效的方式將產品捆綁在一起。

(Operator Instructions) Your next question comes from the line of James Breen from William Blair.

（操作員說明）您的下一個問題來自 William Blair 的 James Breen。

Can you just give us a little more color on sort of how the revenue mix is split out and the success you had internationally relative to the U.S.? And I know you've talked a lot about sort of the architecture network helping from a compliance standpoint as software is delivered. Can you just talk about that as well?

你能給我們更多關於收入組合如何分配以及你在國際上相對於美國取得的成功的顏色嗎？我知道你已經談了很多關於在交付軟件時從合規性角度提供幫助的架構網絡。你也可以談談這個嗎？

Sure. I think that we had a very strong year in both the U.S. and Europe. Today, the U.S. represents about 50% of our revenue and the rest of the world is the other 50%. I think that Europe has had very strong growth and has really been a standout for some time. We had some -- we were watching carefully, especially as there were concerns around adoption of some U.S. technology companies and some of the privacy regulations.

當然。我認為我們在美國和歐洲度過了非常強勁的一年。今天，美國約占我們收入的 50%，世界其他地區佔另外 50%。我認為歐洲的增長非常強勁，並且在一段時間內確實表現出色。我們有一些——我們正在仔細觀察，尤其是當人們對一些美國科技公司的採用和一些隱私法規感到擔憂時。

But what I think you'd see in Q4 was we really leaned into the fact that Cloudflare is a privacy-first organization, and we saw that pay off in the results where more and more European customers are willing to adopt us. And we're actually seeing a number of European governments turning to Cloudflare as part of Project Fair Shot as they roll out the vaccine deployment. And I think that is a good early indication of the trust that we've built in that market.

但我認為您會在第四季度看到的是，我們真正了解 Cloudflare 是一個隱私至上的組織這一事實，並且我們看到越來越多的歐洲客戶願意採用我們的結果得到了回報。事實上，我們看到許多歐洲政府在推出疫苗部署時將 Cloudflare 作為 Project Fair Shot 的一部分。我認為這是我們在該市場建立信任的良好早期跡象。

Asia, throughout 2020, has been definitely in a transition year for us. And we saw that its growth has not been as strong as we've seen in Europe. The reason for that -- and we've talked about this on previous calls, but the reason for that is that Asia is a complicated market in terms of how -- in terms of the multitude of various bandwidth providers.

整個 2020 年，亞洲對我們來說無疑是一個過渡年。我們看到它的增長並不像我們在歐洲看到的那樣強勁。這樣做的原因——我們已經在之前的電話會議上討論過這個問題，但原因是亞洲是一個複雜的市場——就眾多不同的帶寬提供商而言。

And you have a bit of a chicken-and-egg problem, where in order to get enough bandwidth to get great pricing from providers, you have to have a whole bunch of customers. But in order to get a whole bunch of customers, you have to have great pricing. And so we made what I think was a very smart and rational decision earlier in Cloudflare's history to take on customers that we knew we would be unlikely to have with us over the long term but that would give us that initial bandwidth usage in the region in order to get the interconnectivity, the performance and the pricing that we needed.

而且你有一個先有雞還是先有蛋的問題，為了獲得足夠的帶寬以從供應商那裡獲得優惠的價格，你必須擁有一大群客戶。但為了獲得一大群客戶，你必須有很好的定價。因此，我們在 Cloudflare 的早期歷史上做出了我認為非常明智和理性的決定，即接受我們知道從長遠來看我們不太可能擁有的客戶，但這將使我們在該地區的初始帶寬使用為了獲得我們需要的互連性、性能和定價。

And so I'm encouraged by one of the examples that we gave was the $8.5 million contract for a large Asian financial institution, which adopted us. They're going to be a real lighthouse customer for us. I think they're going to up-level the response there. We've also brought in a new head of our Asian sales effort that came to us out of AWS. And we're super excited for him to join. And I think that Asia is really poised to be -- to kind of go from a rebuilding year in 2020 to a real position of strength in 2021.

因此，我們舉的其中一個例子讓我感到鼓舞，這是一家大型亞洲金融機構的 850 萬美元合同，它採用了我們。他們將成為我們真正的燈塔客戶。我認為他們會提高那裡的響應水平。我們還聘請了一位來自 AWS 的新亞洲銷售主管。我們對他的加入感到非常興奮。我認為亞洲真的準備好了——從 2020 年的重建年到 2021 年的真正強勢地位。

Your next question comes from the line of Gray Powell from BTIG.

你的下一個問題來自 BTIG 的 Gray Powell。

Okay. Great. Congratulations on the good quarter. So yes, maybe some other follow-up questions on Cloudflare Access. In our fieldwork, we've heard that a lot of customers that rushed out in March of last year to increase their legacy VPN capacity for work-from-home initiatives, that they're now looking for more modern solutions. And I think you kind of hit on that earlier. But is that something you see today? And do you see potential for Cloudflare Access adoption to accelerate over the next 6 months?

好的。偉大的。祝賀這個好季度。所以是的，也許還有一些關於 Cloudflare Access 的其他後續問題。在我們的實地調查中，我們聽說很多客戶在去年 3 月匆忙離開，以增加他們在家工作的傳統 VPN 容量，他們現在正在尋找更現代的解決方案。而且我認為您早些時候就想到了這一點。但這是你今天看到的嗎？您是否看到 Cloudflare Access 在未來 6 個月內加速採用的潛力？

Yes. Thanks, Gray, for the question. I think that the -- I think that the story of 2020 was really everybody kind of holding on for dear life in the IT world and hoping that they could hold things together. And that meant if you were relying on a bunch of legacy hardware VPN, you put in a big order early in the year just to get whatever you could in the door to make sure that your team could continue to be productive.

是的。謝謝，格雷，提出這個問題。我認為 - 我認為 2020 年的故事實際上是每個人都在 IT 世界中為寶貴的生命而堅持，並希望他們能夠團結一致。這意味著，如果您依賴於一堆傳統的硬件 VPN，那麼您會在今年年初下達一個大訂單，只是為了盡可能地獲得一切，以確保您的團隊能夠繼續保持高效。

But what I'm hearing from the CTOs and CIOs and CISOs that I talk with is one phrase over and over again, which is never again. They -- having lived through this and seen the pain that it caused, they never want to be in a position to have to manage something like that again. And I think also large enterprise organizations are waking up to the fact that the sort of workplace in the future is going to be more flexible about where and when and how people work.

但是我從與我交談的 CTO、CIO 和 CISO 那裡聽到的是一遍又一遍的短語，那就是再也不會了。他們 - 經歷過這種情況並看到它造成的痛苦，他們再也不想處於必須再次處理類似事情的位置。而且我認為大型企業組織也意識到這樣一個事實，即未來的工作場所將更加靈活地決定人們工作的地點、時間和方式。

And so we're definitely hearing from people who are -- who, frankly, for the last 9 months, were like, "I'm too busy to even take your phone call," they're now starting to put their heads up and say, "I don't want to keep investing in what I know is a solution in the past." And so I think that, that definitely, for both our Access and Gateway products but really for the overall Cloudflare One solution, is important.

因此，我們肯定會聽到一些人的意見——坦率地說，在過去的 9 個月裡，他們說，“我太忙了，連你的電話都不接，”他們現在開始抬起頭來並說，“我不想繼續投資於我過去知道的解決方案。”因此，我認為，對於我們的 Access 和 Gateway 產品，但對於整個 Cloudflare One 解決方案來說，這絕對是重要的。

And so I don't think that -- I don't think that we are at the sort of tail end of that wave of transformation. I think we're much, much, much earlier in that process. And the story of 2020 was not CIOs sticking their heads up and saying, "Gosh, we got to go sign up for Cloudflare." The story of 2020 was people were trying to figure out how to survive. I think the story of 2021 might be that there is a much broader move away from what had been a traditional castle and moat, what has been a traditional hardware-based security approach to a much more modern zero trust approach. And we're optimistic that Cloudflare can be one of the leaders as companies do make their way through that transition.

所以我不認為 - 我不認為我們處於轉型浪潮的尾聲。我認為我們在這個過程中要早得多。 2020 年的故事並不是首席信息官們昂首挺胸地說：“天哪，我們必須去註冊 Cloudflare。” 2020 年的故事是人們試圖弄清楚如何生存。我認為 2021 年的故事可能是從傳統的城堡和護城河，傳統的基於硬件的安全方法到更現代的零信任方法的更廣泛的轉變。我們樂觀地認為 Cloudflare 可以成為領導者之一，因為公司確實正在通過這種轉變。

Your final question comes from the line of Alex Henderson from Needham.

你的最後一個問題來自 Needham 的 Alex Henderson。

I was hoping you could talk a little bit about the domain-to-domain traffic protection market, particularly as we see more and more adoption of Kubernetes and other modern microservice-based applications. And that, in turn, drives more domain-to-domain, application-to-application traffic. What are you seeing in terms of that contributing to your protection of data [on site]? And how do you think that evolves as we go forward? We have seen other companies trying to get into that space, but it seems like a natural for you guys.

我希望你能談談域到域的流量保護市場，特別是當我們看到越來越多的人採用 Kubernetes 和其他基於現代微服務的應用程序時。而這反過來又會推動更多域到域、應用程序到應用程序的流量。在有助於保護 [現場] 數據方面，您看到了什麼？隨著我們的前進，您認為它會如何發展？我們已經看到其他公司試圖進入該領域，但這對你們來說似乎很自然。

Yes. Alex, I think that that's -- it is, I think, a natural extension of both our Access and our Gateway products. And one of the things that we see a lot is that customers that have complicated network architectures, where they might be running some of their own applications on an AWS or a Microsoft Azure, they may be using some machine learning out of an IBM or a Google, they may be using other SaaS vendors and really coordinating between that.

是的。亞歷克斯，我認為那是——我認為，這是我們 Access 和 Gateway 產品的自然延伸。我們經常看到的一件事是，客戶擁有復雜的網絡架構，他們可能在 AWS 或 Microsoft Azure 上運行他們自己的一些應用程序，他們可能正在使用 IBM 或谷歌，他們可能正在使用其他 SaaS 供應商，並在它們之間進行真正的協調。

What we're seeing is that we have really positioned ourselves, I think, well to be the network that connects those various pieces together. So one of the initiatives that we launched some time ago, we called the Bandwidth Alliance. And that is a way that if you're moving data between clouds or between SaaS applications that we can help you do so in both the most efficient way but also then save you money. We connect to all the major public cloud providers over a private network interface, and we don't pay to send them bandwidth, and they don't pay to send us bandwidth.

我認為，我們所看到的是，我們確實將自己定位為將這些不同部分連接在一起的網絡。因此，我們前段時間發起的一項舉措稱為帶寬聯盟。這是一種方式，如果您在雲之間或 SaaS 應用程序之間移動數據，我們可以幫助您以最有效的方式做到這一點，同時還能為您節省資金。我們通過私有網絡接口連接到所有主要的公共雲提供商，我們不為向他們發送帶寬付費，他們也不為向我們發送帶寬付費。

And so our argument to them was why should we be charging customers for exchanging that bandwidth themselves. And we've had a lot of success in getting a number of the large cloud providers to adopt this. And that then means that not only can you get the real benefit of Cloudflare in terms of security, access control, visibility, but you can actually save money on your underlying cloud spend as well.

因此，我們向他們提出的論點是，為什麼我們要向客戶收取自行交換帶寬的費用。我們在讓許多大型雲提供商採用它方面取得了很大成功。這意味著您不僅可以在安全性、訪問控制、可見性方面獲得 Cloudflare 的真正好處，而且實際上還可以節省底層雲支出。

And so I think that that's definitely an area that us being that connective tissue between clouds and between applications is a very natural point for us. And it's part of why at our core, we think of Cloudflare as a network, and we're a network that can help connect multiple applications even if they are across different providers together.

因此，我認為這絕對是我們作為雲之間和應用程序之間的結締組織的領域，這對我們來說是一個非常自然的點。這就是為什麼在我們的核心，我們將 Cloudflare 視為一個網絡，我們是一個可以幫助連接多個應用程序的網絡，即使它們跨不同的提供商在一起。

I wanted to, for a second question, go back to the staffing commentary. I think you said in the quarter, you had a 41% increase in staff. And I assume that more than a disproportionate piece of that went into the sales and marketing piece, particularly going after the large enterprise. As we look at CY '21, can you give us any metrics around your expectations for the sales capacity growth in that space? Is it still up in the 50% plus range on a full year basis? Or any other metrics along those lines that would help us gauge that capacity expansion.

關於第二個問題，我想回到人員配置評論。我想你在本季度說過，你的員工增加了 41%。而且我認為其中不成比例的一部分進入了銷售和營銷部分，特別是在大型企業之後。在我們回顧 CY '21 時，您能否就您對該領域銷售能力增長的預期提供任何指標？全年仍處於 50% 以上的範圍內嗎？或者任何其他有助於我們衡量產能擴張的指標。

Yes. So I'll take a stab at the beginning of it, and then Thomas can weigh in if he has anything to add. I think that 2020 was pretty remarkable for us. We had nearly 200,000 people apply to work at Cloudflare, and we only accepted about 0.5% of the total applicant. Of those 200,000, about half were for sales and marketing roles within the company.

是的。所以我先嘗試一下，然後 Thomas 可以權衡一下，如果他有什麼要補充的。我認為 2020 年對我們來說非常了不起。我們有近 20 萬人申請在 Cloudflare 工作，但我們只接受了申請人總數的 0.5% 左右。在這 200,000 人中，大約一半擔任公司內部的銷售和營銷職位。

So we saw a very, very, very strong raw numbers of applicants. And we're seeing those applicants coming to us from really other enterprise sales organizations that we admire at every level, both from early in their career to very seasoned leaders that can lead that team.

因此，我們看到了非常、非常、非常強大的原始申請人數。我們看到那些求職者來自我們在各個層面都欽佩的真正其他企業銷售組織，從他們職業生涯的早期到可以領導該團隊的經驗豐富的領導者。

And so we've invested heavily in building out our sales capacity over the course of 2020, and we will continue to invest in that. And we've got a great pipeline of candidates that are excited to join our team. And I'm just really blown away by the caliber of the people who we're interviewing or are onboarding on a weekly basis.

因此，我們在 2020 年期間投入了大量資金來建立我們的銷售能力，我們將繼續投資於此。我們有很多候選人很高興加入我們的團隊。我真的被我們每週面試或入職的人的才能所震撼。

What I would add, Alex, is that we will continue to invest in our sales capacity, but it's a more sophisticated approach than just hiring people. We have to balance more levers and we are getting better at it. Expanding DNR is one example. A stronger focus on channel partners and from an international go-to-market perspective will be part of that. But overall, sales capacity will continue to increase, and we will invest heavily in that.

亞歷克斯，我要補充的是，我們將繼續投資於我們的銷售能力，但這是一種比僅僅僱用人員更複雜的方法。我們必須平衡更多的槓桿，而且我們在這方面做得越來越好。擴大 DNR 就是一個例子。更加關注渠道合作夥伴，並從國際上市的角度來看，這將是其中的一部分。但總體而言，銷售能力將繼續增加，我們將在這方面投入大量資金。

I will now turn the call back to management for closing remarks.

我現在將把電話轉回管理層以作結束語。

I appreciate, first of all, everyone at Cloudflare who worked incredibly hard this year to take what was a challenging year and be there for each other, for our customers and for the Internet as a whole. I am proud of the role that Cloudflare played in making sure that the Internet held together during what was a year that was really, really, really extraordinary.

首先，我感謝 Cloudflare 的每一個人，他們今年工作非常努力，度過了充滿挑戰的一年，並為彼此、為我們的客戶和整個互聯網服務。我為 Cloudflare 在確保互聯網在非常、非常、非常非凡的一年中團結一致所發揮的作用感到自豪。

I'm looking forward to talking with many of you tomorrow on our Investor Day. That kicks off right at 12 p.m. Pacific Time. It's open to anyone. You just need to register to -- at our Investor Relations page, which is at cloudflare.net. And so until then, look forward to giving you more of an update and hope we can see many of you tomorrow. Thank you.

我期待著在明天的投資者日與你們中的許多人交談。中午 12 點開始。太平洋時間。它對任何人開放。您只需要在我們位於 cloudflare.net 的投資者關係頁面上註冊即可。所以在那之前，期待為您提供更多更新，並希望我們明天能見到你們中的許多人。謝謝你。

That concludes today's conference call. Thank you, everybody, for joining. You may now disconnect.

今天的電話會議到此結束。謝謝大家的加入。您現在可以斷開連接。