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)

各位女士、先生，感謝您稍候，歡迎參加 Cloudflare 2020 年第四季財報電話會議。（接線員指示）請注意，今天的會議將被錄音。（接線員指示）

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.

現在我想把會議交給今天的講者——投資人關係主管 Jayson Noland。謝謝。先生，請開始。

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.

感謝各位加入我們，一同討論 Cloudflare 2020 年第四季的財務結果。與我一同參與電話會議的有：共同創辦人兼執行長 Matthew Prince；共同創辦人、總裁兼營運長 Michelle Zatlyn；以及財務長 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.

此時，各位應該都已取得我們的財報公告。該公告以及我們的補充財務資訊，可在我們的投資人關係網站上找到。

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.

提醒各位，在今天的討論中我們將作出前瞻性陳述，包括但不限於：COVID-19 疫情對我們以及我們客戶、供應商與合作夥伴之營運與未來財務表現的影響；預期的產品發表以及這些產品的時程與市場潛力；公司預期的未來營收、財務表現、營運表現、非 GAAP 毛利率、非 GAAP 營運淨損、非 GAAP 每股淨損、流通在外股數、非 GAAP 營運費用、自由現金流、非 GAAP 有效稅率、美元淨留存率、免費與付費客戶以及大型客戶。這些陳述及其他評論並非對未來表現的保證，而是受到風險與不確定性影響，其中部分超出我們的控制範圍，包括但不限於：COVID-19 疫情影響的程度與持續時間，以及國內與全球整體經濟市場的不利狀況。我們的實際結果可能與任何前瞻性陳述中所預測或暗示的結果有重大差異。

These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call. For a more complete discussion of the risks and uncertainties that could impact our future operating results and financial condition, please see our filings with the Securities and Exchange Commission as well as in today's earnings press release.

這些前瞻性陳述僅適用於今日，您不應將其視為我們未來的觀點。我們不承擔在本次電話會議後更新這些陳述的任何義務。若要更完整了解可能影響我們未來營運結果與財務狀況的風險與不確定性，請參閱我們向美國證券交易委員會（SEC）提交的文件，以及今日的財報新聞稿。

Unless otherwise noted, all numbers we talk about today, other than revenue, will be on an adjusted non-GAAP basis. All current and prior period financials discussed are reflected under ASC 606. You may find a reconciliation of GAAP to non-GAAP financial measures in our earnings release on our Investor Relations website. For historical periods, a GAAP to non-GAAP reconciliation can be found in the supplemental financial information referenced a few moments ago.

除非另有說明，今天我們討論的所有數字（營收除外）皆以調整後的非 GAAP 基礎呈現。所討論之本期與前期財務數據皆依 ASC 606 反映。您可在我們投資人關係網站上的財報新聞稿中找到 GAAP 與非 GAAP 財務衡量指標的調節表。就歷史期間而言，GAAP 與非 GAAP 的調節可在稍早提及的補充財務資訊中找到。

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，我想邀請各位參加我們明天中午（太平洋時間）開始的線上投資人日。我們安排了精彩的議程：Matthew 將以我們的創新文化作為開場；Michelle 將主持客戶座談，與會者包括 NCR、Garmin 與 Common Spirit Health；我們的產品長 Jim Taylor 將主持 Cloudflare 產品領導團隊座談；最後，Thomas 將在 Q&A 前提供財務更新。您可在我們的投資人關係網站找到報名頁面。

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，我們也將以線上形式參與 3 月 1 日的 JMP 科技大會，以及 3 月 2 日的摩根士丹利 TMT 大會。

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

現在我想把電話會議交給 Matthew。

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，Jayson。我們本季表現非常出色，為這非凡的一年畫下完美句點。我們達成 1.259 億美元營收，年增 50%。全年營收略高於 4.30 億美元，較 2019 年成長 50%。我想先停下來感謝 Cloudflare 全體團隊的辛勤付出，讓我們再次實現非凡的成長。

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.

除了營收之外，我們本季其他業務指標也非常強勁。付費客戶數成長至超過 111,000 家，季增 10%，也是數年來最強的單季成長。大型客戶（每年在我們這裡支出超過 10 萬美元者）仍是我們成長最強勁的領域，第四季新增 92 家新客戶，使大型客戶總數達到 828 家。來自這些大型客戶的營收占比連續成長至 49%，高於第三季的 47%，因為我們的銷售團隊持續拿下愈來愈大型的企業客戶。

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.

從不同規模的客戶區隔來看，我們的大型客戶區隔成長最快。這是因為我們贏得了新的標誌性客戶（new logo），同時我們的「先落地、再擴張」（land-and-expand）策略也正在加速。我們在年初就看到初步跡象，但現在也反映在如美元基礎淨留存率等落後指標上；第四季美元基礎淨留存率較前一季提升 300 個基點至 119%。雖然未來該數字可能會有些波動，但當你深入了解這項改善背後的原因，主要是由客戶採用我們不斷擴大的產品組合所驅動，這讓我感到鼓舞。

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，我們看到更多既有客戶採用 Cloudflare for Teams（我們的零信任網路安全解決方案）以及 Magic Transit。客戶看到他們可以使用 Cloudflare 全系列產品來打造未來的企業網路。這是我們透過 Cloudflare One 所闡述的願景，而這個願景正在引起客戶共鳴。

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持續交付客戶所需的更多產品與功能。創新是驅動 Cloudflare 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.

本季有一件事反覆被提起：我們的創新速度對開發者而言極具吸引力。這也是我計畫在明天投資人日更深入談論的主題。不過先讓各位先睹為快：從最早期開始，開發者就是我們的核心受眾。我們讓他們能輕鬆註冊並開始使用我們的服務，而不必經歷傳統的銷售流程。如果某項功能無法完全符合他們的需求，我們就透過 Workers 開發平台讓他們擁有完整的控制權。雖然我們以優秀的銷售團隊來補強以開發者為先的註冊流程，但我們推出的每一項產品，都是以「先讓開發者採用」為設計目標。

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.

衡量這點的一種方式，是觀察開發者採用我們 Cloudflare Workers 邊緣運算平台的速度。第四季有超過 50,000 名新開發者撰寫並部署了他們的第一個 Cloudflare Worker。該季度首次在 Workers 上建置的新開發者數量，自我們上次在第二季披露以來已超過倍增。

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.

但吸引開發者加入 Cloudflare 平台的不只是 Workers。因此，本季我最喜歡的故事之一，並不是以金額計算我們最大的案子，而是一個我認為能展現開發者如何看待更廣泛 Cloudflare 平台的案例。某家領先軟體公司的工程團隊——他們本身也在打造給開發者使用的工具——主動找上我們，希望能更妥善地保護他們自己的開發環境。

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.

這個專案並非由 IT 組織自上而下強制推動，而是由公司內的開發者自下而上主導。他們知道，隨著威脅與攻擊日益增加（例如影響 SolarWinds 的那起事件），他們需要更好的存取控制。他們主導尋找最佳解決方案的流程，最後選擇了 Cloudflare Access——它是我們 Cloudflare for Teams 套件的一部分。在與他們的對話中，有一個主題不斷出現：Cloudflare 是唯一一家擁有零信任解決方案、真正理解並且是為開發者需求而打造的公司。

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.

這是一筆每年 70,000 美元的合約作為起點，我們預期能與這位客戶一同成長。但我認為它更重要的意義在於：開發者是 IT 的未來，而贏得他們的信任，預期將幫助我們隨著時間推進贏得、留住並擴大愈來愈多的客戶。

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，以下是我們本季一些較為傳統的大型勝利案例。一家《財富》500 大油氣綜合集團簽署了一份為期 3 年、金額 100 萬美元的合約，以導入我們 Cloudflare One 架構的一部分，包括 Magic Transit、DDoS 緩解、防火牆與 DNS。我們取代了他們原本在傳統電信業者上的支出。他們先前在嘗試將該電信商的網路服務與第三方產品整合時，面臨嚴重的技術挑戰。我們也擊敗了多個點狀式雲端解決方案。客戶讚賞我們的易用性、技術創新，以及多項產品如何彼此契合、形成一套統一的解決方案。

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 的美國金融服務供應商簽署了一份為期 3 年、金額 160 萬美元的合約，以取代傳統電信支出並朝 Cloudflare One 架構邁進。他們尤其對我們的產品路線圖與創新速度印象深刻。

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.

再談一下金融服務。一家《財富》500 的亞洲金融服務公司與我們簽署了一份為期 4 年、金額 850 萬美元的合約。他們同樣正在導入我們的 Cloudflare One 架構，以現代化其企業網路。雖然我們經常贏得由開發者團隊驅動的案子，但這是一個典型由 IP 主導的 RFP（招標提案）案例。我們的銷售團隊與客戶互動、建立關係並贏得此業務。作為此次勝利的一部分，我們的解決方案工程團隊得以使用 Cloudflare Workers 平台，將客戶從先前的供應商無縫遷移過來。

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 的製藥公司加大其 Cloudflare 導入力度，進一步採用 Cloudflare One 架構。他們簽署了一份每年 45 萬美元的合約，以新增我們的 Magic Transit 服務。該公司曾收到駭客針對其網路的威脅。我們在週五接到客戶來電，並在週末就完成上線。我認為這既展現了我們解決方案的敏捷性，也反映出當既有客戶有資安需求時，Cloudflare 越來越常成為他們的第一通電話。

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 的半導體供應商簽署了一份為期 3 年、金額 140 萬美元的合約，以取代傳統網路供應商。採購方讚賞我們的技術創新、產品之間的無縫協作方式以及效能。他們表示先前供應商的解決方案「能用，但笨重又慢，而且是把零件硬加上去的」。至於 Cloudflare，他形容我們「敏捷得多」且是「未來的公司」。這真的讓我會心一笑。

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 的企業軟體供應商簽署了一份為期 3 年、金額 260 萬美元的合約，以在其組織內全面導入 Cloudflare。他們最初找上我們，是為了改善其在中國的效能，而這是他們用任何其他供應商都難以做到的。他們也對我們的 Workers 邊緣運算平台印象深刻。他們是一家快速成長、技術能力強的組織，我們期待在他們邁向加入我們其他《財富》500 客戶行列的道路上，與他們一同成長。

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.

在我把時間交給 Thomas 之前，我想花點時間回顧 2020 年。對 Cloudflare、對網際網路，嗯，也對全人類而言，這都是非凡的一年。我們很自豪能在世界比以往任何時候都更需要網際網路時挺身而出：協助客戶轉向遠端工作、確保網路本身能擴充以承受流量的大幅成長、提供 Athenian Project 與 Cloudflare for Campaigns 以確保網路攻擊不會干擾 2020 年選舉，以及最近推出 Project Fair Shot，協助全球各地的政府、地方自治體、醫院、診所與藥局更公平地分配 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.

正如日前眾多主動聯繫以導入 Project Fair Shot 的組織之一所說：「Cloudflare 確實幫助拯救了生命。」看到我們的團隊在短短數週內，於 Workers 平台上快速打造 Project Fair Shot 背後的技術並以驚人的規模部署，令人難以置信。我們對自身技術與專業如何讓艱難的一年稍微變得更好，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。我們必須在轉為遠端工作的同時，仍持續招募、聘用、創新、交付、擴充與銷售我們的服務。雖然有一些順風，但也有很多逆風。例如在 4 月，我們網路上的流量在 2 週內的成長幅度，超過我們原本預期 2 年才會出現的成長。這對我們的業務造成壓力。我們不到 5% 的營收來自用量計費型產品。因此當流量暴增時，我們相關成本也會暴增，但營收不會自動跟著增加。

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.

客戶確實喜歡這種可預測性。2020 年沒有人希望收到意外帳單，而我們一致性的定價正是讓我們脫穎而出的因素之一。但這也意味著我們的團隊必須做艱難的工作：重新談判頻寬合約、發明新技術，並持續榨出每一分效率。

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.

這也是為什麼我對我們第四季的毛利率達到 78.1% 特別印象深刻。實際上，這比去年同期下降了 60 個基點。然而，我為這件事感到自豪：我們在 2020 年做了所有必要的事情，讓網際網路以其所需的方式持續運作，而代價僅僅是 60 個基點。我們沒有在客戶最需要我們的時候調漲價格。我們沒有犧牲服務品質。我們做了我們一貫在做的事：導入新技術並提升效率。展望 2021，敬請期待——我們是一台精實、強悍的創新機器，完全無意放慢腳步。

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

接下來，我把時間交給 Thomas。

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，Matthew，也謝謝各位加入我們。雖然這一年充滿挑戰，但我對我們團隊在服務客戶與全球社群時的表現與不懈執行力感到非常自豪；我們以出色的第四季表現再次超越指引區間上緣，並在各方面為這非凡的一年畫下句點。

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.

第四季總營收年增 50%，達到 1.259 億美元。2020 會計年度總營收亦年增 50%，達到 4.311 億美元。自 2016 年以來，我們以 50% 的複合年成長率成長，展現我們在規模化下的持續成長。

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.

從地理區域來看，我們在美國與 EMEA（歐洲、中東及非洲）看到顯著的強勁表現。美國占營收 53%，年增 54%。EMEA 占營收 26%，年增 60%。亞太地區占營收 16%，年增 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.

如各位所知，JD 去年簽署了一份為期 3 年的合約，以在中國建置 150 個據點（points of presence），我們很高興地表示，這段合作關係有了極佳的開始。百度在第四季續約了接下來 6 個月的合約。我們正在把在中國的主要合作夥伴從百度轉移至 JD。這項轉換可能會在該地區的成長上帶來暫時性的短期逆風。

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.

持續拓展國際市場仍是優先事項。我們在 2020 年新設了 3 個海外辦公室，首先是東京，接著是巴黎與多倫多。透過我們的反向 go-to-market 策略，我們會針對所見需求與所獲客戶的成功加大投資，協助在持續國際擴張的同時降低風險。

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.

接著談我們的客戶指標。本季結束時，我們的免費與付費客戶總數超過 350 萬，年增 38%。在第四季，我們的付費客戶新增數創下單季新高，較前一季淨增超過 10,000 名付費客戶，較去年同期增加超過 27,000 名付費客戶。本季結束時，我們共有 111,183 名付費客戶，年增 32%。付費客戶成長加速主要由免費客戶對新產品的採用提升、進而轉為付費所驅動。

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.

本季結束時，我們擁有 828 家大型客戶；我們將大型客戶定義為年化營收超過 100,000 美元的付費客戶，年增 57%。本季我們依序新增 92 家大型客戶，2020 年全年新增超過 300 家。我們看到大型企業客戶出現顯著擴張，帶動以美元計的淨留存率達到 119%，較前一季提升 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.

我們的企業市場進入（go-to-market）策略帶來顯著的投資報酬率（ROI），我們期待在明天的投資人日提供更多洞見。效率仍是我們業務的核心，體現在我們在營收成長下持續維持的高毛利率，以及我們為部署、建置網路版圖與容量所需投入的低資本支出（CapEx）。

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.

第四季毛利率為 78.1%，較前一季提升 80 個基點。第四季網路資本支出占營收 9%，全年占 12%，符合我們上季提供的指引。我們預期全年在網路資本支出的部署方式上仍會有一定波動，但預期其占營收比重將持續下降。

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.

接著談營業費用。第四季營業費用占營收比重較前一季增加 1%，較去年同期下降 18% 至 82%。本季我們再次強勁招募，員工人數年增 41%，使得季末員工總數達到 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.

本季銷售與行銷費用為 5,820 萬美元。銷售與行銷費用占營收比重較前一季增加 1%，並由去年同期的 52% 降至 46%。我們持續投資市場進入（go-to-market）工作，以增加銷售產能並擴大全球版圖。

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.

本季研發費用為 2,570 萬美元。研發費用占營收比重較前一季下降 1%，並由去年同期的 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.

本季一般及行政費用為 1,990 萬美元。一般及行政費用占營收比重與前一季持平，並由去年同期的 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%.

以效率擴大業務規模仍是首要任務；我們在第四季持續看到強勁的營運槓桿，營業利益率年增改善 1,750 個基點。營業損失為 550 萬美元，去年同期為 1,830 萬美元。本季淨損失為 740 萬美元，或每股淨損失 0.02 美元。第四季有效稅率為負 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.

接著談資產負債表。第四季結束時，我們持有 10 億美元的現金、約當現金及可供出售證券。自由現金流為負 2,350 萬美元（占營收 19%），去年同期為負 2,350 萬美元（占營收 28%）。第四季營運現金流為負 880 萬美元（占營收 7%），較前一季減少 1,080 萬美元，且較去年同期小幅下降約 20 萬美元。第四季營運現金流下降主要由於受季節性影響，應收帳款週轉天數（DSO）增加所致。不過，1 月的收款表現強勁。

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.

由於營運資金持續波動、大型企業業務成長以及季節性因素，我們預期現金流利潤率將呈現一定程度的波動。此外，隨著我們思考未來如何使用辦公室，並重新打造空間以支援新的混合式工作環境，我們也預期投資與租賃裝修（leasehold improvements）將對現金流造成影響。

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.

在進入第一季與全年指引之前，我想先簡要更新我們上季分享的 COVID 相關影響與相應提列。2020 年全年，我們持續揭露來自對 COVID 宏觀環境較敏感產業（如運輸、旅宿與零售）的客戶所占營收比例。該客群在第一季占營收 8%，第二季與第三季占 7%；我們很高興分享，第四季該比例仍維持在 7%。本季客戶讓利與壞帳也再次遠低於預期，並持續與歷史水準一致。

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.

第四季我們再次看到強勁的新 ACV 成長、客戶平均支出提升以及高銷售生產力。第四季剩餘履約義務（RPO）維持強勁，達 3.84 億美元，較前一季增加 12%，年增 75%。其中，當期 RPO 占總 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成長與動能，我們對產品需求仍保持樂觀，並對業務持續成長充滿信心。因此，我們很高興再次上調本季與全年展望。

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%.

就第一季而言，我們預期營收介於 1.30 億至 1.31 億美元，年增 42% 至 44%。我們預期營業損失介於 900 萬至 800 萬美元，並預期每股淨損失介於 0.03 至 0.02 美元（假設流通在外普通股約 3.06 億股）。我們預期有效稅率為負 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%.

就 2021 全年而言，我們預期營收介於 5.89 億至 5.93 億美元，年增 37% 至 38%。我們預期全年營業損失介於 2,500 萬至 2,100 萬美元，並預期該期間每股淨損失介於 0.09 至 0.08 美元（假設流通在外普通股約 3.09 億股）。我們預期 2021 年有效稅率為負 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，本季再次表現非常強勁，為非凡的一年畫下句點。我再次感謝我們的員工交出這些優異成果，並感謝他們持續的投入與奉獻。

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各位中的許多人；我們將舉辦首次投資人日，期待就我們的產品與平台進行深入解析，並更新我們的財務進展與目標。

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

接下來，我想開放提問。接線生，請開始收集問題。

(Operator Instructions) Your first question comes from the line of Philip Winslow from Wells Fargo.

（接線生指示）第一個問題來自富國銀行（Wells Fargo）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.

恭喜你們在這個精彩的一年做出非常漂亮的收官。這一季有很多數字顯然都非常亮眼，但真正讓我們印象最深的是客戶數：第四季單季新增超過 10,000 名客戶。我的意思是，這幾乎跟你們 2019 年全年新增的數量一樣多。想請你們多分享一些背後的驅動因素。是像 Teams 這樣的新產品嗎？還是你們產品組合中的某個領域（例如資安）在推動？如果能多給一些脈絡就太好了。另外我還有一個追問。

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。Phil，謝謝你的問題。我們也很高興看到付費客戶數成長如此強勁，這是我們一段時間以來最強的季對季成長。我認為沒有單一特定因素可以指出。我想我們打造出一個強大的機器，就像一匹強壯的馬在雪地裡犁地前行——如果你願意的話，可以說是一匹克萊茲代爾馬（Clydesdale）。但我認為——我們一直在尋找方法，讓使用我們免費版本服務的既有客戶轉為付費，或讓更多人進入漏斗。因此，我會指出三個不同的面向。

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.

第一點是，我們的總客戶數表現非常強勁，因為我們看到大家正在全面採用 Cloudflare。許多客戶一開始是免費客戶，之後再逐步升級。但也有一部分客戶從第一天起就是付費客戶。因此，隨著總客戶數成長，上一季的季對季成長是我們在 2020 年全年（以及上一季）所見到最強的一次，而這個總客戶數的成長也帶動了相關表現。

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.

我認為第二點是我們推出了一項新功能，稱為 Automatic Platform Optimization（自動平台最佳化），簡稱 APO。這對許多既有的免費客戶很有吸引力，他們只要按一下按鈕並向我們付費，就能在特別是以 WordPress 驅動的網站上獲得顯著的效能改善。因此我認為這帶來了額外的關注度與更多使用量。

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.

另外，我們也看到一些原本使用我們 Teams 產品免費版本的客戶。如果你還記得，在疫情一開始時，我們把 Cloudflare for Teams 變成免費產品。我們在這方面的轉換表現非常好、非常強勁，並且轉化為付費客戶，其中有一部分在本季就反映出來。

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，再加上我們持續把執行做到位。而且我再次強調，我為我們的團隊感到非常自豪。

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?

很好。接著追問一下。Thomas 和你都強調了毛利率，不只是本季，也包括今年。某種程度上，這很像是一個案例研究：把變動成本轉成固定成本或零成本。但我想從另一個角度來看，把它當作相對於同業的一種競爭武器，因為其他玩家可能採用變動計費。你們是否會在 2021 年及之後把這當作一種思考「替換/取代」的方式？對於那些可能出現變動尖峰、而且其對上游供應商成本也明顯隨之變動的業者，你們如何看待運用你們的固定或零成本模式，作為競爭性取代的武器？

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。我們很長一段時間以來都看到，變動式計費所導致的「意外帳單」讓很多客戶感到焦慮。我認為，尤其當你在銷售像資安服務這類產品時，如果你遭遇網路攻擊，結果突然收到供應商更高的帳單，那這個供應商跟攻擊者本身其實差不了多少——兩者都在讓你付出成本。

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，我們就深信讓核心服務維持在固定、可預測的基礎上非常重要。我們在第四季已經聽到、並且現在延續到第一季的一個主題是：在經歷 2020 年的混亂之後，企業正在尋求真正的可預測性。我們也確實看到，憑藉我們強勁的毛利率表現，我們有機會取代一些在 2020 年期間讓客戶屢屢「被帳單驚到」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.

我想補充的是，我腦中總會浮現兩個很好的例子，可以看出我們如何把他們的毛利率當作策略性武器來運用。第一個當然是我們第一次[緩解] DDoS 攻擊的時候。你也在去年看到，當我們幾乎整年都把 Teams 產品免費提供。接著在我們支援選舉平台時，我們又加入了其他產品。我們過去就這麼做過，未來也會持續採取這個策略。

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

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?

恭喜本季表現。Matthew，你剛提到 Teams 從免費轉付費的轉換很強。你們能否提供更多細節，說明目前已把多少免費用戶轉成付費用戶、以及 2021 年還剩下多少可以去爭取？另外，第四季在 Teams 方面是否有任何新的管線進展？

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。我們主要用兩種方式來看這件事。首先，有些公司一開始只讓團隊中的一小部分人使用 Teams 產品。而 Teams 產品會隨著採用的席位數自然成長。因此我們團隊目前的重點之一是——我們在上一季也談到——把這些免費客戶成功轉換為付費客戶。接下來，我認為我們對這些客戶主要要做的是：把他們從小型客戶逐步培養成更大、再更大的客戶。這是一個重點方向。

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.

我認為我們也持續努力對仍處於艱困產業或區隔的客戶保持同理心。因此，對於那些仍受疫情影響的企業，我們持續延長他們的付款條件，並繼續延長這項免費方案。我們希望聚焦長期，並認為我們正在與這些客戶建立關係。回饋非常正面。雖然這只占整體基礎中的一小部分，但我們確實認為這裡仍有機會進一步擴大。

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，我們認為一旦某個組織開始使用 Teams 產品，而我們又讓他們能非常容易地先在組織的一小部分導入，這就給了我們一個機會，能隨時間大幅擴展該產品的使用範圍。而這正是我們團隊的主要著力點。

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?

了解。那在 go-to-market（市場推進）方面，你們列出了很多勝利案例，尤其是本季 Cloudflare One 的表現。業務代表是以這個套件作為主打切入，還是以仍構成它的各個單一解決方案切入？另外，本季它大概帶動了多少新訂單（new bookings）？

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。我認為要看情況。採用完整 Cloudflare One 套件的典型路徑仍然是：客戶會帶著非常明確的需求來找我們。他們可能需要在某些應用程式或服務周邊建立新的存取控制；也可能需要防禦他們剛意識到的新漏洞或網路威脅。但一旦進入銷售流程，我們看到的是客戶非常在意整體平台以及各部分如何整合在一起，而這正是 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.

而 Thomas 明天在我們的投資人日（Investor Day）會談到的一點是：我們持續看到很強的動能，讓客戶不只是採用我們的某一個解決方案——或某一個產品——而是採用整體解決方案。正如我們在 IPO 時所談到的，我們的看法是：一旦客戶使用我們 4 個或以上的產品，因為我們產品組合的廣度，競爭對手就非常、非常難與我們競爭。因此我們確實在與客戶合作，努力讓他們達到「4 個或以上」的使用數。Thomas 明天也會更進一步分享我們在這方面取得的成果。

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

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?

Matthew，你提到最大客戶區隔成長最快。我想請你再多說明一下這個主題。也請 Thomas 延伸一下：當你們為了滿足 2021 年大型企業建置（large enterprise build-out）所看到的需求、而要新增具備配額（quota-carrying）的業務代表時，你們是否正在加速成長？是否在調整去年為了因應這個市場區隔而新增的人力配置？

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，Brent。所以我先開始，然後 Thomas 可以再補充一些細節。首先是——而且再次強調，不是要一直替 Thomas 明天的段落打廣告，但我剛剛在看投影片。我們會更詳細說明各個不同客戶分群的運作方式，以及它們——成長如何達到我們所見過最強勁的水準，而最大型客戶是我們業務中成長最快的部分。

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因素所驅動。我認為其中一半來自於我們愈來愈有能力在早期就拿下大型交易。因此我們愈來愈常看到，當有傳統的數百萬美元等級 RFI 或 RFP 提出時，我們有團隊能夠回應並贏得那些案子。產品也已就位，我們在一開始就贏下更多這類交易。我認為這是非常好的訊號。

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.

我認為另一個同樣非常好的訊號是，我們的「落地並擴張」（land-and-expand）動能持續加速。我們看到更多客戶成長到那些更大型的級距。同樣地，明天 Thomas 會提供更清楚的說明。

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所看到的是，我們正在增加支援，以確保這些客戶能有極佳的體驗。這代表要延攬優秀的業務人員。我們不是那種相信可以在沒有業務人員的情況下也能運作的公司。如果客戶每年在你這裡花 100 萬到 1,000 萬美元，他們希望有一位可以真正建立關係的對口。因此明天我們會介紹許多——其中一些加入我們團隊的業務領導者，以及他們帶來的非常驚人的企業級 DNA。我認為這讓我們成為愈來愈好的公司。

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.

至於你第二個問題，我們去年在銷售產能上投入很大，不僅是有配額（quota-carrying）的業務代表，也包括領導層。我們招募了很優秀的人才。我認為過去一年真正正面的地方在於，我們能把銷售生產力維持在非常高的水準——不論是新人上線（onboard）的速度、爬坡（ramp）的速度，或是他們完成多少配額（retire quota）。而今年我們也會持續投資銷售產能。

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.

我想我們一直都說，只要能帶來更優異的營收成長，我們就會持續投入銷售與行銷費用。這個策略運作得非常好、也很成功。去年團隊表現非常出色，我們今年也會繼續走這條路。

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

下一個問題來自摩根士丹利（Morgan Stanley）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?

非常、非常漂亮的一季，事實上也是非常漂亮的一年。我想我會不同意我的同事 Phil Winslow。我認為我在這頁上看到最令人印象深刻的數字，是淨美元擴張率（net dollar expansion rate）提升到 119%。我覺得這凸顯了兩點：你們的留存依然非常穩固，而且你們在客戶內部擴張做得很好，特別是在那些大型客戶上。你們能不能稍微談一下——也許幫我們理解一下量化：當客戶購買 Cloudflare One、採用整個平台時，典型客戶在「全面採用」平台後，通常會看到多大的提升（uplift）？

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，我也意識到那是我們密切追蹤、[而且很值得肯定] 的指標之一。以美元計的淨留存（dollar-based net retention）本質上是相當落後的指標。我認為我們在一年之中向客戶銷售更多產品的能力上，確實看到了成功。因此我們預期它會回升，而它也正朝我們希望的方向前進。我們還不滿足。我們認為仍有很大的改善空間。我想我們對自己要求很嚴格。我們採用相當保守的以美元計淨留存定義，而我認為這也是我們逐步成長、逐步做到的。

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，這真實反映了我們研發團隊交付新產品的能力，如何補強我們銷售團隊隨時間向客戶賣得更多的能力。因此我們看到，透過 Cloudflare for Teams 以及更廣義的 Cloudflare One 定義，我們能夠去找客戶，並且往往讓他們大幅提高在 Cloudflare 的支出。然後隨著時間推進，因為 Cloudflare for Teams 產品是以席位（seat）為基礎銷售，我們認為我們將能像許多傳統產品一樣，持續以各種方式與他們擴張。

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。我們確實看到顯著的提升。我認為這也是我們持續在密切追蹤並[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?

我快速追問一下。我在剛才的問題中假設留存率仍然穩固。你能不能給我們一些能見度？就淨美元擴張率的提升而言，你們——這是否只來自加購（upsell）的部分？還是底層的整體留存（gross retention）也有任何變化？

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。我們很長一段時間以來數字都非常強。我不認為——底層的整體留存數字沒有任何改變。它持續維持在非常強勁的水準。因此，以美元計淨留存的改善，大多其實來自於我們更有效地向客戶加購銷售的能力。

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

下一個問題來自 RBC 資本市場（RBC Capital Markets）的 Matt Hedberg。（操作員指示）

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.

恭喜這一季，也恭喜整個年度。我想問一下 SolarWinds 或 SUNBURST 外洩事件。想了解你們是否看到它對銷售管線（pipeline）造成影響。也許它會帶來更多免費 Teams 的轉換？就是對這方面有點好奇。我想像你們應該處在一個相當有利的位置，能協助許多現有客戶以及潛在未來客戶處理這類問題。

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，Matt。我們——我認為現在還太早，無法清楚指出它是否已造成顯著影響。我認為客戶第一個問我們的問題是：我們是否受到影響？答案是否，我們不是 SolarWinds 的客戶。我認為更重要的是——也是我覺得市場正在意識到的一個故事——零信任（zero trust）的安全方法（像 Cloudflare 能協助的那種）幾乎就像船上的艙壁（bulkheads）。

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.

軟體隨時間推移一定會出現缺陷，而這次 SolarWinds 受到影響。但真正的挑戰在於，因為攻擊者能透過 SolarWinds 進入，他們一旦進來，就能在整個組織內橫向移動。這是過去那種「城堡與護城河」（castle-and-moat）安全思維的症狀：一旦你找到跨過某一道護城河的方法，你就能進入整座城堡。而我認為零信任方法真正高明之處在於，它會建立起天然的艙壁，使得即便組織某個部分發生某種入侵，攻擊者也無法在其餘部分之間橫向移動。

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.

因此這也是我們在自身安全系統中所實施的做法。它讓我們能非常快速地不僅確認 Cloudflare 任何地方都沒有使用 SolarWinds，也能進一步做評估，確認沒有其他因素對我們造成問題。我也認為，當我們向客戶銷售 Cloudflare for Teams 產品時，這種更現代化的零信任安全方法正在引起共鳴。

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.

因此我認為 SolarWinds 是一個例子，將會成為推動我們銷售更多零信任方法的順風。我們也認為，我們的零信任方法不僅是最對開發者友善、也是市面上最有效的；而且我相信隨著時間推移，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?

很好。接著 Thomas 在講稿中提到，聽起來大約 6 個月後，你們會從百度遷移到京東（JD.com）。我有點好奇你們的思考過程。我也記得你提到可能會有些微逆風。想請教是否能再多釐清一下那可能代表什麼，以及最終在做出這個決定時的理由是什麼？

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。我們——我認為 Cloudflare 有一點很獨特：我們提供真正的全球網路——延伸到全世界各地，也包括中國。因此，對於重視在中國效能的客戶而言，這讓我們能提供一個統一的平台。這對我們來說是一個相當有野心的目標；我們在 2014 年與百度展開合作旅程，打造那個統一的網路，並由他們擔任我們在中國的合作夥伴。過去 6 年多來，他們一直是非常出色的合作夥伴。我們也感謝他們為協助我們達成這件事所做的一切。

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.

我們希望升級在中國的網路，讓它在效能上更上一層樓，並大幅提升我們的佈點規模。因此我們開始評估——看看究竟是百度、京東，或是其他誰，會成為我們的合作夥伴，來建立我們希望能延續另一段 6 年以上合作關係的夥伴關係。京東的團隊在技術能力，以及協助我們真正建置一個廣泛網路的能力上，都讓我們印象深刻；而中國往往因技術與其他原因，是一個非常複雜的區域。

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 3 年，我們將與京東合作，在中國單一市場就建置超過 150 個 PoP（佈點）。我們的客戶若有需要，可以選擇使用該網路；同時，當京東把我們其餘的全球網路銷售給其他地區的客戶時，我們也能因此創造營收。

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.

在我們轉換的過程中，過去我們會從百度收到一筆款項；那筆款項將會減少。而我們也會從京東收到一筆款項——用來補上其中一部分。但在此期間，這個轉換可能會帶來一些逆風。我們不認為影響會很重大，而且這些都已反映在我們現有的財測指引中。

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

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?

我這邊也有兩個問題。首先，我想請你談談——在 2021 年曆年，你們如何看待產品部署與產品開發之間的取捨？因為如果我回顧過去 12 個月，新產品推出的速度相當驚人。我很難想像自 IPO 以來 TAM 擴大了多少。但當你們看 2021 年曆年時，我們是否應該預期新產品創新會維持同樣的節奏？還是你們會花更多時間把這些產品規模化，以進一步提升在客戶端的錢包份額？

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。我認為我們的創新速度正是 Cloudflare 在設計之初就為此而打造的。我明天在投資人日也會談很多，說明我們如何做到這一點。我們完全沒有打算放慢創新速度。因此我認為你會看到一連串的產品發布，會非常類似你在 2020 年看到的情況，會有一系列非常出色的推出。

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.

這將包括把我們已宣布、目前仍在 beta 的產品推進到 GA（正式可用）。因此我們對 Workers 平台的一些延伸功能能夠正式上線感到興奮，例如 Durable Object，讓大家可以真正深入使用並投入開發。beta 使用者的早期回饋非常好。但這也意味著我們要思考並構想新的方式，運用我們的網路來交付更多價值。因此我認為，我們產品與工程組織中有 90% 的人力，主要聚焦在如何利用既有產品、吸收使用者回饋並持續改進——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.

但我們有一個團隊稱為 ETI（Emerging Technology and Incubation，新興技術與孵化），約占我們研發投入的 10%，他們專注在思考如何構想地平線之外的事物。他們並沒有放慢腳步。我認為像 Cloudflare for Teams 產品以及 Cloudflare One 等，很多都是從 ETI 畢業、轉入我們傳統的產品組織；這也釋放出一些空間，讓 ETI 能開始思考接下來 18 個月後將塑造產業的下一批產品會是什麼。

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?

我再追問一下。當我看你們 2021 年曆年的營收指引時，也很感謝你們在這個時間點就提供指引；我們在 2020 年曆年做到了 50% 以上的營收成長。我認為指引中位數隱含 2021 年成長 37%。是哪些因素導致 2021 年出現這樣的成長放緩？

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.

我先開始，然後 Matthew 再補充。我們也觀察到，去年在充滿不確定性的時期，我們在提供年度指引時必須審慎、保守。我們採取了同樣的做法。若你把我們今年年初給的指引與去年相比，我們今年其實更積極一些。

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.

但我們也必須認知到，數字變大了，存在所謂的大數法則；而且外部仍有不確定性，並未減少，這使得提供指引並不像去年那樣變得更容易。因此我認為這是一個審慎且周全的做法：在思考機會的同時，也衡量那些無疑仍然存在的風險。

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.

我只是呼應 Thomas 的說法。我認為我們今年一路以來都努力保持非常審慎。我記得在——我們回到 4 月、在我們——5 月初、在我們給出第一季指引之後，我們其實不知道世界會——接下來會發生什麼。我認為全球仍然存在很多不確定性。即便我們看到非常巨大的成功、也很興奮，我們仍希望在思考未來時保持極度審慎。

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

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，恭喜你們的表現。我有一個關於資安的兩段式問題。第一，你能談談你們在更傳統的 WAF、阻斷服務（DDoS）產品，與新的 WARP 產品（如 Access、Gateway、Browser Isolation）之間，看到的交叉銷售機會嗎？你們在那方面看到什麼樣的成效？第二個延伸問題是：當你同時銷售安全的反向與正向代理這兩種使用情境時，對銷貨成本（COGS）的影響是什麼？這會是未來模型中的一個槓桿點嗎？

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，謝謝你，Jonathan，這兩個問題。我可以先嘗試回答兩個，然後 Thomas 也許會補充。我認為我們對不同產品之間存在交叉銷售機會的方式感到非常驚喜。我覺得對我們來說，最像花生醬配果醬、天作之合的兩個產品，是我們的 Access 產品——核心在於如何保護內部使用者對應用程式（對內部使用者開放的應用）的存取——以及我們的 WAF 與 DDoS 產品。

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對手往往覺得那種 Access 與 Gateway 天然就很契合，我們也同樣這麼看。但其實這裡面確實存在一個機會。我們看到的是，當人們採用零信任（zero trust）方法時，這意味著會把更多應用程式暴露到網際網路上。而雖然存取控制很重要、網際網路閘道也很重要，但當這些東西暴露到網際網路上時，就會面臨傳統的 Web 應用程式防火牆（WAF）方面的疑慮，並且尤其會有 DDoS 緩解方面的疑慮。

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，這些不同的產品最後就能非常自然地整合在一起。客戶也喜歡他們可以透過單一介面（one pane of glass）來管理所有的資安需求。我認為這一點，讓我們的產品相較於市面上其他產品有非常明顯的差異化；其他產品往往需要拼湊多種不同解決方案，才能取得 Cloudflare 開箱即用所提供的能力。

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.

我想你的第二個問題——其實是在問我們同一項優勢的另一面：在 Cloudflare 早期的歷史中，我們就做出決定，讓我們網路上每一台、各地的每一部伺服器，都運行我們軟體的每一個功能模組。這代表當某個產品需要更多容量時，我們可以按需部署；網路會自動調整，讓我們能夠因應並適應。

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，對於你所說的「正向（forward）與反向（reverse）代理」這類產品——其實只是流量流向的不同——結果是你只需要付費一次；而當你在為頻寬付費時，你只會為較大的那一側（進或出）付費。因此，很多時候——至少就頻寬成本而言——我們可以在不顯著改變底層成本基礎設施的情況下，把新產品加入到客戶的整體帳單中。

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.

我認為這也是 Cloudflare 運作的祕密武器之一：我們的產品團隊一直在看，我們的網路上有哪些多餘資源，以及我們如何部署產品來善用這些多餘資源。所以——當我們新增——如果某位客戶正在使用我們的 DDoS 與 WAF，而我們讓他們再採用 Access 與 Gateway，這並不會實質改變我們的成本基礎。這也代表我們能夠非常有競爭力，特別是在投資報酬率（ROI）層面相較於競爭對手；同時我們也能以非常有效的方式把產品打包在一起。

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

（接線員指示）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?

你能否再多提供一些細節，說明營收組合大致如何拆分，以及你們在國際市場相較於美國的成功情況？另外我知道你們談過很多，關於你們的架構與網路在軟體交付時，如何從合規角度提供幫助。也請你談談這一點。

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。我認為我們在美國與歐洲都度過了非常強勁的一年。目前，美國約占我們營收的 50%，世界其他地區合計也約占 50%。我認為歐洲的成長非常強勁，且一段時間以來一直是表現突出的地區。我們也曾——特別是在外界對採用某些美國科技公司、以及一些隱私法規的疑慮之下——密切觀察相關情況。

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.

但我認為你在第四季會看到的是，我們更強調 Cloudflare 是一家以隱私為先（privacy-first）的組織，而這在結果上獲得回報：越來越多歐洲客戶願意採用我們。實際上，我們也看到一些歐洲政府在推動疫苗部署時，透過 Project Fair Shot 轉向使用 Cloudflare。我認為這是我們在該市場建立信任的一個很好的早期指標。

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.

亞洲在 2020 年對我們而言，確實是一個轉型之年。我們看到其成長不如歐洲強勁。原因在於——我們在先前的電話會議也談過——亞洲市場相當複雜，因為涉及眾多不同的頻寬供應商。

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.

你會遇到一個有點像「先有雞還是先有蛋」的問題：要從供應商那裡取得足夠頻寬並拿到很好的價格，你必須先有大量客戶；但要先有大量客戶，你又必須先有很好的價格。因此，在 Cloudflare 早期，我們做出了一個我認為非常聰明且理性的決策：先承接一些我們知道長期來看不太可能留存的客戶，但他們能在該區域提供初期的頻寬使用量，讓我們得以取得所需的互連性、效能與價格。

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，我對我們提到的一個例子感到鼓舞：一家大型亞洲金融機構與我們簽下 850 萬美元的合約並採用我們。他們將會是我們的一個真正的「燈塔型」客戶。我認為他們會把當地的市場回應提升到另一個層級。我們也為亞洲銷售團隊引進了一位新的負責人，他之前在 AWS 任職。我們非常期待他加入。我認為亞洲確實蓄勢待發——有望從 2020 年的重建之年，轉為 2021 年真正的強勢地位。

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

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。恭喜你們這一季表現不錯。那我有一些關於 Cloudflare Access 的追問。我們在市場調查中聽到，很多客戶在去年 3 月為了推動居家辦公計畫，匆忙擴充了既有的傳統 VPN 容量，而現在他們正在尋找更現代化的解決方案。我想你剛剛也有提到這點。但這是你們目前也看到的趨勢嗎？你們是否看到 Cloudflare Access 在未來 6 個月的採用有加速的潛力？

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，謝謝你的問題，Gray。我認為——我認為 2020 年的故事是：在 IT 世界裡，大家基本上都是在苦撐，盡力把系統撐住。這意味著如果你依賴一堆傳統硬體 VPN，你會在年初就下很大的訂單，只求能先拿到任何能交付的設備，確保團隊可以持續有生產力。

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.

但我從我交流的 CTO、CIO 與 CISO 那裡反覆聽到的一句話是：再也不要（never again）。他們——經歷過這一切並看到它帶來的痛苦之後——再也不想處於必須再次管理那種情況的位置。我也認為，大型企業組織正在意識到，未來的工作型態會在「在哪裡、何時、以及如何工作」方面更具彈性。

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，我們確實聽到一些人——坦白說，過去 9 個月他們還在說「我忙到連你的電話都沒空接」——現在開始抬起頭來說：「我不想再繼續投資在我知道已經是過去式的解決方案上。」所以我認為，這點對我們的 Access 與 Gateway 產品都很重要，但更重要的是對整體 Cloudflare One 解決方案而言。

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.

因此我不認為——我不認為我們已經處在那波轉型浪潮的尾聲。我認為我們在這個過程中還非常、非常、非常早期。2020 年的故事並不是 CIO 們抬起頭來說「天啊，我們得去註冊 Cloudflare」。2020 年的故事是大家在想辦法活下去。我認為 2021 年的故事可能是：會有更廣泛的趨勢，從傳統的「城堡與護城河」式、以硬體為基礎的資安方法，轉向更現代的零信任方法。我們樂觀地認為，當企業走過這段轉型時，Cloudflare 能成為其中的領導者之一。

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

您最後一個問題來自 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.

我希望您能稍微談談網域對網域（domain-to-domain）流量防護市場，特別是隨著 Kubernetes 與其他現代微服務架構應用的採用愈來愈普及。這也反過來帶動更多網域對網域、應用對應用（application-to-application）的流量。就這點而言，您觀察到它如何促進您對資料[在站點]的防護？以及您認為未來會如何演進？我們也看到其他公司試圖進入這個領域，但看起來這對你們來說很自然。

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。Alex，我認為那——我想，這確實是我們 Access 與 Gateway 產品的自然延伸。我們經常看到的一件事是，客戶的網路架構很複雜，他們可能在 AWS 或 Microsoft Azure 上運行部分自有應用；可能使用 IBM 或 Google 的一些機器學習服務；也可能使用其他 SaaS 供應商，並在這些之間進行協調。

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.

我們看到的是，我們確實把自己定位得很好——我認為——成為連接這些不同組件的網路。因此，我們在一段時間前推出了一項倡議，稱為 Bandwidth Alliance。這是一種方式：如果您在雲與雲之間或在 SaaS 應用之間移動資料，我們可以協助您以最有效率的方式進行，同時也幫您省錢。我們透過私有網路介面連接所有主要公有雲供應商；我們不需要付費把頻寬送給他們，他們也不需要付費把頻寬送給我們。

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，我們對他們的論點是：為什麼我們要向客戶收取他們彼此交換頻寬的費用。我們在推動多家大型雲端供應商採用這點上取得了很大成功。這也意味著，您不僅能在安全性、存取控制、可視性方面獲得 Cloudflare 的真正效益，還能在底層雲端支出上同時省錢。

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.

所以我認為，作為雲與雲之間、應用與應用之間的連接組織（connective tissue），這對我們而言絕對是非常自然的切入點。這也是為什麼在核心上，我們把 Cloudflare 視為一個網路——我們是一個能協助連接多個應用的網路，即使它們分屬不同供應商，也能把它們串接在一起。

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.

我想就第二個問題回到人員配置的評論。我記得您在本季提到員工增加了 41%。我假設其中超過不成比例的一部分投入到銷售與行銷，特別是針對大型企業。展望 CY '21，您能否提供一些指標，說明您對該領域銷售產能成長的預期？以全年來看，是否仍在 50% 以上的區間？或是任何其他類似指標，能幫助我們衡量這種產能擴張。

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.

好的。我先嘗試回答前半段，然後 Thomas 若有補充也可以加入。我認為 2020 年對我們來說相當非凡。將近有 200,000 人申請到 Cloudflare 工作，而我們只錄取了總申請者約 0.5%。在這 200,000 人之中，大約一半是申請公司內的銷售與行銷職位。

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.

所以我們看到非常、非常、非常強勁的申請人原始數量。而且我們看到這些申請者來自我們在各層級都很欣賞的其他企業銷售組織——從職涯早期到非常資深、能帶領團隊的領導者都有。

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 年期間大力投資擴充銷售產能，並且會持續投資。我們也有很棒的候選人管道，大家都很期待加入我們的團隊。我真的對我們每週面試或正在到職（onboarding）的人才素質感到非常驚艷。

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.

Alex，我要補充的是，我們會持續投資銷售產能，但這是一種比單純招人更成熟的做法。我們必須平衡更多槓桿，而且我們在這方面做得愈來愈好。擴大 DNR 是其中一個例子。更聚焦於通路夥伴，以及從國際市場的 go-to-market 角度來看，也會是其中一部分。但整體而言，銷售產能將持續增加，我們也會在這方面大力投資。

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

我現在把電話交回管理層作結語。

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，我要感謝 Cloudflare 的每一位同仁，今年大家都非常努力，把充滿挑戰的一年撐過去，彼此扶持，也支持我們的客戶以及整個網際網路。我為 Cloudflare 所扮演的角色感到自豪——在這個真的、真的、真的非常不尋常的一年裡，確保網際網路能夠維持運作並凝聚在一起。

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.

我期待明天在我們的投資人日（Investor Day）與各位中的許多人交流。活動將在太平洋時間中午 12 點準時開始，對任何人開放。您只需要到我們的投資人關係頁面註冊——網址是 cloudflare.net。在那之前，我期待能提供更多更新，也希望明天能見到各位。謝謝。

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。感謝各位參與。您現在可以掛線。