Cloudflare, Inc. (NET) 2020 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Cloudflare Q3 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 年第三季財報電話會議。（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.

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。請開始。

Thank you for joining us to discuss Cloudflare's financial results for the third quarter 2020. With me on the call, we have Matthew Prince, Co-Founder and CEO; Michelle Zatlyn, Co-Founder and COO; and Thomas Seifert, CFO. By now, everyone should have access to our earnings announcement. This announcement as well as our supplemental financial information may be found on our Investor Relations website.

感謝各位加入我們，一同討論 Cloudflare 2020 年第三季的財務結果。與我一同參與本次電話會議的有共同創辦人兼執行長 Matthew Prince、共同創辦人兼營運長 Michelle Zatlyn，以及財務長 Thomas Seifert。此時各位應已取得我們的財報新聞稿。該新聞稿以及我們的補充財務資訊可在投資人關係網站上查閱。

As a reminder, we'll be making forward-looking statements during today's discussion, including, but not limited to, 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-based 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.

提醒各位，我們在今天的討論中將作出前瞻性陳述，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、以美元計價的淨留存率、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。

Our actual results may differ significantly from those projected or suggested in any forward-looking statements. These forward-looking statements apply as of today and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call. For a more complete discussion of the risks and uncertainties that could impact our future operating results and financial condition, please see our filings with the Securities and Exchange Commission as well as in today's earnings press release. Unless otherwise noted, all numbers we talk about today other than revenue will be on an adjusted non-GAAP basis.

我們的實際結果可能與任何前瞻性陳述中所預測或暗示者有重大差異。這些前瞻性陳述僅適用於今日，您不應將其視為代表我們未來的觀點。我們不承擔在本次電話會議後更新這些陳述的任何義務。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提交的文件以及今日的財報新聞稿。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。

All current and prior period financials discussed are reflected under ASC 606. You may find a reconciliation of GAAP to non-GAAP financial measures in our earnings release on our Investor Relations website. For historical periods, a GAAP to non-GAAP reconciliation can be found in the supplemental financial information referenced a few moments ago. We would also like to inform you that we'll be virtually participating in the RBC TIMT Conference on November 18, the Wells Fargo TMT Summit on December 1, the Credit Suisse Annual Technology Conference on December 3, the Morgan Stanley Future of Application Development Conference on December 9 and the Jefferies CyberSecurity Conference on December 10.

本次討論的所有當期與前期財務數據皆依 ASC 606 反映。您可在投資人關係網站上的財報新聞稿中找到 GAAP 與非 GAAP 財務衡量指標的調節表。就歷史期間而言，GAAP 與非 GAAP 的調節可在稍早提及的補充財務資訊中查閱。我們也想通知各位，我們將以線上方式參與：11 月 18 日的 RBC TIMT Conference、12 月 1 日的 Wells Fargo TMT Summit、12 月 3 日的 Credit Suisse 年度科技大會、12 月 9 日的 Morgan Stanley Future of Application Development Conference，以及 12 月 10 日的 Jefferies CyberSecurity Conference。

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 exceptional quarter. In Q3, we crossed a number of significant milestones. First, we blew through $100 million in quarterly revenue, achieving $114 million, up 54% year-over-year. We crossed 100,000 paying customers, ending the quarter with just shy of 101,000. For large customers, in the quarter, we added nearly 100, 99 precisely, and now has 736, spending more than $100,000 per year with us. These large customers accounted for 47% of our total revenue in Q3, and we anticipate they will make up more than half of our revenue going forward.

謝謝你，Jayson。我們本季表現非常出色。第三季我們跨越了多項重要里程碑。首先，我們單季營收一舉突破 1 億美元，達到 1.14 億美元，年增 54%。我們的付費客戶數突破 10 萬名，季末接近 101,000 名。就大型客戶而言，本季我們新增近 100 家——精確來說是 99 家——目前共有 736 家，每家每年在我們這裡的支出超過 10 萬美元。這些大型客戶在第三季貢獻了我們總營收的 47%，我們預期未來它們將占我們營收的一半以上。

One goal we had at the beginning of 2020 was to win our first $10 million customer on an annual run rate basis. We're proud that we achieved that this quarter. That customer, a Fortune 500 software company, started with us in 2016 because one of their engineering leaders had used the free version of our service on his personal site. He loved the experience and brought us to work, initially signing a $60,000 per year contract. It's grown quite a bit since then.

我們在 2020 年初設定的一個目標，是以年度經常性收入（annual run rate）計算，拿下第一位 1,000 萬美元客戶。我們很自豪本季達成了這個目標。該客戶是一家《財富》500 大軟體公司，2016 年開始與我們合作，起因是他們的一位工程主管曾在個人網站上使用我們服務的免費版本。他很喜歡這個體驗，於是把我們帶進公司，最初簽下每年 6 萬美元的合約。此後規模成長了不少。

Today, this customer has tightly integrated our network and customized our products deep into their staff. It's been a terrific partnership, and we expect we will continue to grow alongside them. We've had great success with our go-to-market efforts and especially signing large enterprise customers. About half of our new revenue in the quarter came from new logos and about half from expanding relationships with our existing customers.

如今，這位客戶已將我們的網路深度整合，並把我們的產品客製化後深入導入其團隊之中。這是一段非常棒的合作關係，我們預期將持續與他們一同成長。我們在市場推進（go-to-market）方面取得了很大成功，尤其是在簽下大型企業客戶方面。本季新增營收約有一半來自新客戶（new logos），另一半來自與既有客戶關係的擴張。

Even as we continue to sign a record number of large enterprise customers, we remain very happy with the diversity of our customer mix. None of our customers account for more than 5% of revenue, and our top 20 customers remain well under 20% of total revenue. While we're incredibly proud of our financial results and the strength of our business, I wanted to talk about something else we're also really proud of. Our team watched the United States election this week carefully, as I'm sure many of you did as well. While there is still some uncertainty around the ultimate outcome, and there have been and will be stories around who voted and how those votes were counted, one story we worried about a lot going into the election that didn't materialize was the impact of cyberattacks.

即使我們持續簽下創紀錄數量的大型企業客戶，我們仍對客戶組合的多元性非常滿意。我們沒有任何單一客戶的營收占比超過 5%，而前 20 大客戶合計也遠低於總營收的 20%。雖然我們對財務成果與業務韌性深感自豪，但我也想談談另一件我們同樣引以為傲的事。本週我們的團隊密切關注美國大選，我相信各位也一樣。雖然最終結果仍有一些不確定性，且外界也一直、並將持續出現關於誰投票以及如何計票的報導，但我們在選前非常擔心、卻未發生的一件事，是網路攻擊的影響。

We played some role in that. In 2016, that wasn't the case. Four years ago at Cloudflare, we watched with deep concern as attackers were able to use various techniques to subvert parts of the election infrastructure and undermine confidence in its results. We decided shortly after it was our duty to provide our technology and expertise to ensure cyberattacks don't disrupt fair elections. We launched the Athenian Project, which provides our enterprise-class service for free to any state or local government elections officials. We also partnered with a non-partisan civil society organization defending digital campaigns to work with the Federal Election Commission, so we can provide our services at no cost to national campaigns without violating campaign contribution law.

我們在其中扮演了一些角色。2016 年時並非如此。四年前，在 Cloudflare，我們憂心地看到攻擊者能運用各種技術破壞選舉基礎設施的部分環節，並削弱外界對選舉結果的信心。不久之後我們決定，我們有責任提供技術與專業，確保網路攻擊不會干擾公平選舉。我們推出了 Athenian Project，向任何州或地方政府的選務官員免費提供我們的企業級服務。我們也與一個無黨派的公民社會組織合作，該組織致力於保護數位競選活動，並與聯邦選舉委員會（Federal Election Commission）合作，使我們能在不違反競選捐助法的前提下，向全國性競選活動免費提供服務。

This year, more than half of U.S. states participated in the Athenian Project. That includes so-called red, blue and purple states. More than half of the battleground space use Cloudflare in order to protect services like voter registration, poll location, tracing reporting and official results. We work both presidential campaigns and many of the federal candidates for Congress. We were able to fend off cyberattacks and find no instances in which they impacted the ability of citizens to learn about candidates or to vote. That's a big step-up from 2016. While democracy can be messy, inherently it depends on a process you can trust. We're proud of the small role we've played in defending the Democratic process.

今年，美國超過一半的州參與了 Athenian Project，其中包括所謂的紅州、藍州與搖擺州。超過一半的關鍵戰場州使用 Cloudflare，以保護選民登記、投票地點、追蹤回報以及官方結果等服務。我們同時為兩個總統競選團隊以及許多聯邦國會候選人提供服務。我們成功抵禦了網路攻擊，且未發現任何影響公民了解候選人資訊或投票能力的案例。相較於 2016 年，這是很大的進步。民主或許會顯得混亂，但其本質仰賴一個你能信任的程序。我們為自己在捍衛民主程序中所扮演的小小角色感到自豪。

Switching to the other topic that continues to be top of mind for all of us. November will be the ninth month most of the world has been impacted by COVID-19. While it's not in our nature to take victory laps, I wanted to pause to recognize our team and their ability to execute during these difficult times. Early in 2020, we began to see challenges sourcing equipment for our network as the virus hit our Asia-based suppliers. Then, in late March, traffic across our network spiked, as the world shifted to working from home.

接著談另一個仍是我們所有人最關切的議題。11 月將是全球大多數地區受 COVID-19 影響的第九個月。雖然我們不習慣自我慶功，但我想停下來肯定我們的團隊，以及他們在這段艱難時期的執行能力。2020 年初，當病毒衝擊我們位於亞洲的供應商時，我們開始看到為網路採購設備的挑戰。接著在 3 月下旬，隨著全球轉向居家工作，我們網路上的流量激增。

In 2 weeks, we saw more than 50% growth in traffic, more than we had forecast for 12 months. At the same time, our team had to adjust to working remotely. Product managers and engineers had to figure out how to develop innovative new products without gathering around a physical whiteboard. Our go-to-market teams had to adjust to selling to customers without ever meeting them in person. And we had to learn how to continue to hire and onboard great new members of our team without them ever stepping into an office. It would have been easy for a misstep in any of these areas to cause our business to stall, but our team has executed, and our business has thrived.

在兩週內，我們看到流量成長超過 50%，這比我們對未來 12 個月的預測還要多。同時，我們的團隊也必須調整為遠端工作。產品經理與工程師必須想辦法在無法圍著實體白板討論的情況下，仍能開發創新的新產品。我們的市場推進團隊必須調整為在從未與客戶面對面見面的情況下完成銷售。我們也必須學會如何在新成員從未踏進辦公室的情況下，持續招募並完成到職培訓。任何一個環節若出現失誤，都很容易讓我們的業務停滯，但我們的團隊成功執行，而我們的業務也蓬勃發展。

We've been able to continue to build out our network to meet the unprecedented demand for our services, while staying within our CapEx budget. Even though we charge almost exclusively on a fixed subscription basis, we're able to meet our gross margin target hitting 77% Q3 without surprising our customers with burgeoning bills. And we've exceeded our ambitious revenue goals, actually accelerating growth, while continuing to sign up larger and larger enterprise customers. We were prudent at the beginning of the pandemic reserving for potential customer allowances and bad debt. And we've worked with the subset of our customers who have struggled during the pandemic to ensure they always had a reliable network they can afford, knowing to being accommodating today with biased loyalty over the long term.

我們得以在維持資本支出（CapEx）預算範圍內，持續擴建我們的網路，以滿足對我們服務前所未有的需求。即使我們幾乎完全採固定訂閱制收費，我們仍能達成毛利率目標，第三季毛利率達到 77%，且不會以暴增的帳單讓客戶措手不及。我們也超越了具挑戰性的營收目標，實際上還加速成長，同時持續簽下規模愈來愈大的企業客戶。在疫情初期，我們審慎地為潛在的客戶折讓與呆帳提列準備。同時，我們也與在疫情期間面臨困難的那部分客戶合作，確保他們始終擁有負擔得起且可靠的網路；我們相信，今天的體諒與配合，長期而言將帶來更高的忠誠度。

We've been fortunate that when our customers sort vendors, we've been sorted into the bucket of differentiated, must-have services. As a result, we've not seen pricing pressure, and we've had fewer concessions and less bad debt than we forecast. We've also been able to hire great people. In Q2, we received more than 40,000 applications and extended offers to a mere 0.6%. In Q3, we had over 60,000 and extended offers to only 0.4%. And investor last quarter asked why that was an important statistic for us to mention. Companies are just collections of people, and we believe whatever company is able to attract and retain the best people will win.

我們很幸運，當客戶在篩選供應商時，我們被歸類到「具差異化、不可或缺的服務」那一類。因此，我們沒有看到定價壓力，讓步比我們預期的更少，壞帳也更少。我們也能夠招募到優秀的人才。第二季我們收到超過 40,000 份申請，僅對 0.6% 發出錄取；第三季我們收到超過 60,000 份申請，僅對 0.4% 發出錄取。上季有投資人問，為什麼這是我們要提的重要統計數字。公司本質上只是人的集合，我們相信，能吸引並留住最好人才的公司，將會勝出。

If we can organically attract so many great candidates means we can save money by not having to hire third-party recruiters. We can source candidates from less expensive geographies in order to achieve operational leverage while still adding headcount to realize our ambitious plan. And we're more likely to have a diverse team with different outlooks who will come up with solutions to problems that no one had dreamed of before. While COVID has created challenges for our team, it has also made our mission of helping build a better Internet, resonate with team members and customers more than ever before.

如果我們能以自然方式吸引這麼多優秀候選人，代表我們可以省下不必聘用第三方獵才顧問的成本。我們也能從成本較低的地區招募人才，以在持續增加人力以實現我們雄心勃勃的計畫之同時，取得營運槓桿。此外，我們更有機會擁有一支具多元背景、不同觀點的團隊，提出過去沒有人想過的問題解決方案。COVID 雖然為團隊帶來挑戰，但也讓我們「協助打造更好的網際網路」的使命，比以往任何時候都更能引起團隊成員與客戶的共鳴。

The world has never needed better Internet more than it has over the last 9 months. And our team wakes up excited every day to deliver exactly that for our customers. In the last 4 months, we've been on a care releasing a ton of incredible new products. We announced more than 1 product per day around Cloudflare Workers, our serverless computing platform, during the week of July 26. We celebrated our birthday during the week of September 27, with a series of products that are less about directly generating revenue and more about doing the right thing for the Internet.

在過去 9 個月裡，世界對更好的網際網路的需求前所未有地迫切。而我們的團隊每天醒來都充滿熱情，為客戶交付這一切。在過去 4 個月，我們持續密集發布大量令人驚豔的新產品。在 7 月 26 日那一週，我們圍繞 Cloudflare Workers（我們的無伺服器運算平台）宣布了平均每天超過 1 項產品。我們在 9 月 27 日那一週慶祝生日，推出一系列產品，這些產品與其說是直接創造營收，不如說是為網際網路做正確的事。

And more recently, we fleshed out our vision for Cloudflare for Teams with a new architecture called Cloudflare One over the week of October 11, which we dubbed Zero Trust Week. These weeks leverage one of our superpowers, engineering and marketing, and may result in significant spikes in organic inbound interest from potential customers. In fact, during Zero Trust Week, organic inbound lease more than doubled off their already elevated level. Stay tuned, we have one more Cloudflare week before the end of the year focused on privacy and compliance.

而在更近期，我們於 10 月 11 日那一週（我們稱之為「零信任週」）以名為 Cloudflare One 的新架構，進一步完善了 Cloudflare for Teams 的願景。這些主題週運用我們的一項超能力——工程與行銷——並可能帶來潛在客戶自然流入（organic inbound interest）的顯著尖峰。事實上，在零信任週期間，自然流入的潛在客戶數量在原本已偏高的水準上又翻倍以上。敬請期待：在年底前我們還會有一個 Cloudflare 主題週，聚焦於隱私與合規。

I wanted to drill into 2 products I know there's a lot of interest in, Cloudflare for Teams and Workers. First Teams. We launched Cloudflare for Teams in January, and it happened to be in exactly the right place at exactly the right time as the world shifted to remote work and needed a scalable, cloud-based VPN and firewall replacement. Seeing how many businesses were struggling with the shift to remote work, we made the call to make Teams free through September 1. We had thousands of companies ranging from small businesses to Fortune 500 corporation take us up on our offer.

我想深入談兩項我知道大家非常關注的產品：Cloudflare for Teams 與 Workers。先談 Teams。我們在 1 月推出 Cloudflare for Teams，而它恰好在世界轉向遠端工作、需要可擴展的雲端 VPN 與防火牆替代方案之際，出現在完全正確的時間與位置。看到許多企業在轉向遠端工作時面臨困難，我們決定將 Teams 免費提供至 9 月 1 日。從小型企業到《財富》500 大企業，數以千計的公司接受了我們的方案。

Over the course of Q3, we began conversations with all of them to transition from the free offer to becoming paying customers. We are happy with how that went. 75% of customers transitioned from free to paid accounts that included some great new logos like JetBlue Travel Products, OneTrust and Delivery Hero. For some customers who are still particularly hard hit by COVID, we've allowed them to continue with the free offering until they can get their feet back under them. Teams is a very high-margin product for us, so this doesn't cost us much.

在第三季期間，我們開始與所有這些公司對話，協助他們從免費方案轉換為付費客戶。我們對結果感到滿意：有 75% 的客戶從免費轉為付費帳戶，其中包含一些很棒的新客戶標誌（logo），例如 JetBlue Travel Products、OneTrust 與 Delivery Hero。對於仍特別受到 COVID 重創的部分客戶，我們允許他們繼續使用免費方案，直到他們能重新站穩腳步。Teams 對我們而言是高毛利產品，因此這樣做對我們的成本影響不大。

And as I said before, we've always found that doing the right thing by our customers pays back in space over the long term. Because the converted accounts transition came late in the quarter and because Teams' seat based pricing tends to be even more land small and then expand than some of our other products, these new converted customers did not result in material additional revenue in Q3. However, the other benefits of running this program is how much it accelerated our learning curve. We had positioned teams as nearly all our competitors have with an access management product we call Cloudflare Access and an Internet gateway product we called Cloudflare Gateway. What we learned since March is that customers wanted a more holistic solution.

而如我先前所說，我們一直相信，為客戶做正確的事，長期而言會以多種方式回報。由於這些轉換為付費帳戶的時間點落在季末，加上 Teams 的按席位（seat-based）定價往往比我們其他產品更符合「先小規模落地（land small）再擴張（expand）」的模式，因此這些新轉換的客戶在第三季並未帶來顯著的額外營收。然而，推動這個計畫的另一個好處，是大幅加速了我們的學習曲線。我們原本將 Teams 定位得與幾乎所有競爭對手相同：一個我們稱為 Cloudflare Access 的存取管理產品，以及一個我們稱為 Cloudflare Gateway 的網際網路閘道產品。自 3 月以來我們學到的是，客戶想要的是更整體性的解決方案。

If you adopt the Zero Trust networking model, you need an access and gateway component. But you inherently then are exposing more of your infrastructure to the Internet, so you often need products like our web application firewall and DDoS mitigation. We also learned that by leveraging products like Argo Smart Routing and Magic Transit, we can provide a much higher quality of service unmatched by traditional Zero Trust vendors and delivering on the real promise of SD-WAN.

如果你採用零信任（Zero Trust）網路模型，你需要存取與閘道兩個組件。但這也意味著你會在本質上把更多基礎設施暴露在網際網路上，因此往往還需要像我們的 Web 應用程式防火牆（WAF）與 DDoS 緩解等產品。我們也了解到，透過 Argo Smart Routing 與 Magic Transit 等產品，我們能提供傳統零信任供應商無法匹敵的更高服務品質，並兌現 SD-WAN 的真正承諾。

These conversations with customers over the last 9 months helped us realize there's an opportunity to package our services with the addition of intrusion detection, next-generation firewall and data loss protection, which we announced during Zero Trust Week into a comprehensive solution that we believe can help define the future of the corporate network. We've dubbed this Cloudflare One, and we believe it's the suite that is unmatched in the market.

過去 9 個月與客戶的這些對話，讓我們意識到有機會將我們的服務打包成一套更完整的解決方案：加入入侵偵測、次世代防火牆與資料外洩防護（DLP）等能力——我們已在零信任週宣布——形成我們相信能協助定義企業網路未來的綜合方案。我們將其命名為 Cloudflare One，並相信這是一套在市場上無可匹敵的產品組合。

Turning to Cloudflare Workers, it's incredibly exciting to see how the platform is taking off. In Q3, more than 27,000 developers wrote and deployed their first Cloudflare Workers. That's up from 15,000 a year ago. History proves with new computing platforms, the more developers they have, the more quickly they improved and the more likely they are to win. Looking at GitHub and other sources of data on developer engagement, we believe more developers right deploy real applications and code on Cloudflare Workers every month than every other edge computing platforms combined.

接著談 Cloudflare Workers。看到這個平台快速起飛，令人非常振奮。第三季有超過 27,000 名開發者撰寫並部署了他們的第一個 Cloudflare Workers；一年前這個數字是 15,000。歷史證明，在新的運算平台上，開發者越多，平台改進得越快，也越有可能勝出。從 GitHub 與其他開發者參與度資料來源來看，我們相信每個月在 Cloudflare Workers 上部署真實應用與程式碼的開發者數量，超過其他所有邊緣運算平台的總和。

So what are they building? One of the most viewed publications during the 2020 elections used Cloudflare Workers to power their elections news platform and ensure it scaled during the unprecedented spike in traffic last Tuesday as well as Wednesday and today. A popular health foods company uses Workers to power their online ordering system. An online marketing firm working with major brands uses Workers to customize content on a per visitor basis. A publicly traded electronics testing firm use Workers to bridge their on-premise and cloud-based infrastructure. An innovative start-up is using Workers to power an online crypto scavenger hunt. And one of the largest online learning platforms uses Workers to deliver their customized content during this time of skyrocketing demand.

那他們在打造什麼？在 2020 年選舉期間，最受關注的出版物之一使用 Cloudflare Workers 來支撐其選舉新聞平台，並確保在上週二前所未有的流量暴增（以及週三與今天）期間仍能順利擴展。一家知名健康食品公司使用 Workers 來支撐其線上訂購系統。一家與大型品牌合作的線上行銷公司使用 Workers 依訪客逐一客製化內容。一家上市的電子測試公司使用 Workers 來串接其地端（on-premise）與雲端基礎設施。一家創新新創公司使用 Workers 來支撐線上加密貨幣尋寶遊戲。而全球最大的線上學習平台之一，則使用 Workers 在需求飆升的此刻交付其客製化內容。

It's great to see more use cases every quarter, but I think we're just scratching the service. Most use cases today have focused on performance. Over time, I expect those use cases will pale in comparison to what is a much bigger opportunity, helping customers manage the challenges of compliance. As governments around the world increasingly insist on data localization and data regency, sending all your users' data back to AWS feeds for processing will become unacceptable. What our largest, most sophisticated, most compliant sensitive customers are looking to Workers for is as a way to manage this increasingly complex regulatory environment. That's why during Cloudflare's Birthday Week, our announcement of Durable Objects may have been one of the most important edge computing developments you may have missed.

每一季看到更多使用案例很棒，但我認為我們才剛開始觸及表面。當前多數使用案例聚焦在效能。隨著時間推進，我預期這些使用案例相較於一個更大的機會將顯得微不足道：協助客戶管理合規的挑戰。隨著全球各國政府愈來愈堅持資料在地化與資料主權（data residency），把所有使用者資料都送回 AWS 區域（regions）進行處理，將變得不可接受。我們最大、最成熟、對合規最敏感的客戶之所以看上 Workers，是因為它能協助他們管理這個日益複雜的監管環境。這也是為什麼在 Cloudflare 生日週，我們對 Durable Objects 的發布，可能是你錯過的最重要邊緣運算發展之一。

Durable Objects allows developers to define a data structure and store it safely on our network close to users that need to access it in order to ensure performance and consistency. It also allows developers to define where that data can move across our network and where it cannot, such as this user's data may never leave the EU or this user's data may never leave Brazil. Given Cloudflare's network spans more than 200 cities in more than 100 countries worldwide, Durable Objects provides fine-grained control over where data is stored and processed. That functionality is critical for the increasingly complex compliance challenges that face every global company today.

Durable Objects 讓開發者能定義一種資料結構，並將其安全地儲存在我們的網路上、靠近需要存取它的使用者，以確保效能與一致性。它也讓開發者能定義該資料在我們網路上可以移動到哪裡、以及不能移動到哪裡，例如：此使用者的資料永遠不得離開歐盟，或此使用者的資料永遠不得離開巴西。鑑於 Cloudflare 的網路遍及全球 100 多個國家、超過 200 座城市，Durable Objects 提供對資料儲存與處理位置的細緻控制。這項功能對於當今每一家全球性公司所面臨、日益複雜的合規挑戰至關重要。

In other words, the future of edge computing will be defined as much by intelligent edge storage as it is by computing. And while others are still working to launch for edge computing platforms, we have products like Durable Object in market that are defining that future today. Before I hand it off to Thomas, I wanted to close by talking about 3 more Fortune 500 large enterprise customers whose business we won in Q3.

換句話說，邊緣運算的未來，將同樣由智慧型邊緣儲存所定義，就如同由運算能力所定義一樣。而當其他業者仍在努力推出邊緣運算平台時，我們已經有像 Durable Object 這樣的產品在市場上，並在今天就定義著那個未來。在我把時間交給 Thomas 之前，我想以第三季我們贏得的另外 3 家《財富》500 大型企業客戶作結。

A Fortune 500 industrial manufacturing company came to us to consolidate multiple vendors and products into a single unified platform. They replace discrete network optimization, load balancing and bought management vendors with Cloudflare in order to, in the CISO's words, have a single pane of glass to understand and control what's happening on their network. They signed a $1.4 million annual contract in Q3.

一家《財富》500 的工業製造公司找上我們，希望將多家供應商與多項產品整合到單一、統一的平台。他們以 Cloudflare 取代了分散的網路最佳化、負載平衡與機器人管理（bot management）供應商，目的在於——用其資安長（CISO）的话說——擁有一個「單一玻璃窗格（single pane of glass）」來理解並控制其網路上正在發生的一切。他們在第三季簽下了一份年約 140 萬美元的合約。

A Fortune 500 food and beverage company came to us following a security audit. They replaced their legacy network optimization service with Cloudflare. They used most of Cloudflare's core services, including Workers. They were looking to save money over their previous vendor and were able to cut their spend in half while still being a very attractive customer for us. They signed $0.5 million annual contract with us in Q3.

一家《財富》500 強食品與飲料公司在一次安全稽核後找上我們。他們以 Cloudflare 取代其既有的網路最佳化服務供應商。他們使用了 Cloudflare 多數核心服務，包括 Workers。他們希望相較於先前供應商節省成本，並成功將支出減半，同時仍是我們非常具吸引力的客戶。他們於第三季與我們簽署了 50 萬美元的年度合約。

Finally, a Fortune 500 pharmaceutical company adopted the Cloudflare One architecture to protect their employees and global network. They were able to onboard 47,000 employees and contractors and more than 130 applications on the Cloudflare One. They were particularly impressed with the comprehensive solution as well as with ease of use. They called out how much our solution reduced their internal IT support ticket load. They signed a $1.5 million annual contract in Q3. Sometimes we hit on all cylinders. We had one of those quarters. I wanted to take a second to thank the whole Cloudflare team who are working hard to make Thomas and my job easy.

最後，一家《財富》500 強製藥公司採用 Cloudflare One 架構來保護其員工與全球網路。他們成功在 Cloudflare One 上線了 47,000 名員工與承包商，以及 130 多個應用程式。他們對於完整的解決方案以及易用性特別印象深刻。他們特別提到，我們的解決方案大幅降低了其內部 IT 支援工單量。他們於第三季簽署了 150 萬美元的年度合約。有時我們各方面都表現得淋漓盡致。我們就有這樣的一個季度。我想花點時間感謝整個 Cloudflare 團隊，大家努力工作，讓 Thomas 和我的工作變得更容易。

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

接下來，我把時間交給 Thomas。

Thank you, Matthew, and thanks again to everyone for joining us. As Matthew mentioned, we delivered another outstanding quarter where we exceeded the high default guidance and with that top line beads carrying through to our strong operating margin and another quarter of positive operating cash flow generation.

謝謝你，Matthew，也再次感謝各位參與。如 Matthew 所提到，我們又交出了一個傑出的季度表現，不僅超越了偏高的預設財測指引，而且營收端的亮眼表現也帶動了強勁的營業利益率，並再度實現一季正向的營運現金流。

Total revenue for the third quarter grew 54% year-over-year to $114.2 million. The growth in revenue was driven by new logo acquisitions as well as expansion within our existing customer base. Included in our Q3 revenue is a onetime catch-up of $1.9 million related to a customer renewal. Excluding this nonrecurring revenue, our year-over-year revenue growth would have been 52%. From a geographic perspective, we saw strong performance domestically and internationally with particular strength in the U.S. and EMEA, both increasing 58% year-over-year. The U.S. represented 52% of revenue, while our international business represented 48% of revenue and increased 51% year-over-year.

第三季總營收年增 54% 至 1.142 億美元。營收成長主要由新客戶（new logo）取得，以及既有客戶群的擴張所帶動。我們第三季營收中包含一筆與客戶續約相關的一次性追溯入帳（catch-up）1.9 百萬美元。若排除此非經常性收入，我們的年增率將為 52%。從地理區域來看，國內與國際市場皆表現強勁，其中美國與 EMEA（歐洲、中東與非洲）尤為突出，兩者皆年增 58%。美國占營收 52%，國際業務占營收 48%，年增 51%。

Turning to our customer metrics. We exited the quarter with more than 3.2 million total free and paying customers, representing an increase of 40% year-over-year. In Q3, we achieved an exciting milestone of over 100,000 paying customers, adding roughly 4,800 sequentially. We also had another record quarter of large customer additions, which we define as paying customers with greater than $100,000 in annualized revenue, adding roughly 100 large customers sequentially and 285 large customers year-over-year.

接著看客戶指標。本季結束時，我們的免費與付費客戶總數超過 320 萬，年增 40%。第三季我們達成一個令人振奮的里程碑：付費客戶數突破 100,000 名，較前一季約增加 4,800 名。我們也再度創下大型客戶新增的季度紀錄；我們將大型客戶定義為年化收入超過 100,000 美元的付費客戶，本季較前一季約新增 100 家大型客戶，較去年同期新增 285 家大型客戶。

We ended the quarter with 736 large customers, representing an increase of 63% year-over-year, with particular strength in North America. We've shown 60% plus year-over-year large customer growth every quarter since the first quarter of 2018 with large customers now approaching almost half of our total revenue. Similar to our disclosure last quarter, roughly half of the 736 large customers have been on the platform for less than 1 year and the other half for more than 1 year.

本季結束時我們共有 736 家大型客戶，年增 63%，其中北美表現尤為強勁。自 2018 年第一季以來，我們每一季的大型客戶年增率皆超過 60%，而大型客戶目前已接近貢獻我們總營收的一半。與上季揭露相同，在這 736 家大型客戶中，約一半使用平台未滿 1 年，另一半使用平台超過 1 年。

Our third quarter dollar-based net retention was 116%, which increased 100 basis points sequentially and decreased 500 basis points year-over-year. We saw acceleration in top line revenue growth this quarter, driven by both existing customers as well as new customers who have been on the platform for less than a year. Overall expansion from large enterprise customers was again strong this quarter, with 6 of our top 10 deals in terms of new ACV coming from existing accounts.

第三季以美元計價的淨留存率（dollar-based net retention）為 116%，較前一季提升 100 個基點，但較去年同期下降 500 個基點。本季我們看到營收年增加速，動能同時來自既有客戶，以及上線未滿一年的新客戶。整體而言，大型企業客戶的擴張本季依然強勁；以新增 ACV（年度合約價值）計算的前 10 大交易中，有 6 筆來自既有客戶帳戶。

We expect [ENR] to translate to up going forward with Teams as a potential tailwind for expansion opportunities. Third quarter gross margin was 77.3%, representing an increase of 50 basis points sequentially and a decrease of 160 basis points year-over-year, which is in line with the expectations we shared last quarter in our long-term target of 75% to 77%.

我們預期 [ENR] 未來將呈上升趨勢，而 Teams 可能成為擴張機會的順風因素。第三季毛利率為 77.3%，較前一季提升 50 個基點，較去年同期下降 160 個基點，符合我們上季所分享的預期，也與我們長期目標 75% 至 77% 的區間一致。

Turning to operating expenses. We remain focused on building a long-term business with sustainable growth while improving the operating leverage in our business. Third quarter operating expenses as a percentage of revenues decreased 5% sequentially and 22% year-over-year to 81%. We had another strong hiring quarter, increasing our headcount by 42% year-over-year and bringing our total number of employees to 1,697 in the end of the quarter.

接著看營業費用。我們仍專注於打造具永續成長的長期事業，同時提升營運槓桿。第三季營業費用占營收比重較前一季下降 5%，較去年同期下降 22%，至 81%。本季我們再次強勁招募，員工人數年增 42%，使季度末員工總數達到 1,697 人。

Sales and marketing expenses were $51.2 million for the quarter, representing an increase of 8% sequentially and 26% year-over-year. Sales and marketing as a percentage of revenue decreased to 45% from 48% last quarter and 55% in the same quarter last year. Research and development expenses were $23.5 million in the quarter, representing an increase of 11% sequentially and 17% year-over-year.

本季銷售與行銷費用為 5,120 萬美元，較前一季增加 8%，較去年同期增加 26%。銷售與行銷費用占營收比重由上季的 48% 降至 45%，也低於去年同期的 55%。本季研發費用為 2,350 萬美元，較前一季增加 11%，較去年同期增加 17%。

R&D as a percentage of revenue remained flat sequentially and decreased 21% from 27% in the same quarter last year. General and administrative expenses were $18 million for the quarter, representing an increase of 3% sequentially and 14% year-over-year. G&A as a percentage of revenue was 16%, representing a decrease of 2% sequentially and 6% year-over-year.

研發費用占營收比重較前一季持平，並由去年同期的 27% 下降至 21%。本季一般與行政費用為 1,800 萬美元，較前一季增加 3%，較去年同期增加 14%。一般與行政費用占營收比重為 16%，較前一季下降 2%，較去年同期下降 6%。

Scaling our business efficiently remains a top priority, and we continue to see acceleration in operating leverage in the third quarter with operating margins improving over 2,000 basis points year-over-year and 550 basis points sequentially. Operating loss was $4.5 million compared to $18.1 million in the same period last year. We've been hiring aggressively and expect to continue to invest behind the success we see in top line revenue. Net loss in the quarter was $5.7 million or net loss per share of $0.02. Our effective tax rate for Q3 was negative 22%.

以高效率擴大業務規模仍是首要任務；第三季我們持續看到營運槓桿加速，營業利益率較去年同期改善超過 2,000 個基點，較前一季改善 550 個基點。營業損失為 450 萬美元，去年同期為 1,810 萬美元。我們一直積極招募，並預期將持續投入以支撐我們在營收端看到的成功。本季淨損為 570 萬美元，或每股淨損 0.02 美元。第三季有效稅率為負 22%。

Turning to the balance sheet. We ended the third quarter with $1.1 billion in cash, cash equivalents and available-for-sale securities. Free cash flow was negative $17.9 million or 16% of revenue compared to negative $33.6 million or 45% of revenue in the same period last year. Operating cash flow was positive $2 million in the third quarter or 1.7% of revenue, which decreased $2 million sequentially and increased $19.8 million year-over-year. Q3 operating cash flow was helped by an increase in cash profitability, while offset by our annual D&O insurance payment as well as changes in working capital.

接著看資產負債表。第三季結束時，我們持有 11 億美元的現金、約當現金與可供出售證券。自由現金流為負 1,790 萬美元，約占營收 16%；去年同期為負 3,360 萬美元，約占營收 45%。第三季營運現金流為正 200 萬美元，約占營收 1.7%，較前一季減少 200 萬美元，較去年同期增加 1,980 萬美元。第三季營運現金流受益於現金獲利能力提升，但部分被年度董監事責任險（D&O）保費支付以及營運資金變動所抵銷。

Our DSOs trended down slightly quarter-over-quarter and remained well within the historical range. Q3 network CapEx was 11% of revenue, and we expect it to trend down as a percent of revenue in the fourth quarter. Before moving to guidance for the fourth quarter and full year, I would like to provide another update on the COVID-related impacts and the associated provisions we shared last quarter. You may recall on our first quarter earnings call, we disclosed that customers highly affected by COVID-related challenges, particularly those in macro sensitive industries such as transportation, hospitality and retail, represented 8% of our business.

我們的 DSO（應收帳款週轉天數）較前一季略為下降，且仍維持在歷史區間內。第三季網路資本支出（CapEx）占營收 11%，我們預期第四季其占營收比重將下降。在進入第四季與全年財測指引之前，我想再就 COVID 相關影響，以及我們上季分享的相關提列（provisions）提供更新。各位可能記得，在第一季法說會上，我們揭露受 COVID 相關挑戰高度影響的客戶，特別是對總體環境敏感的產業（如運輸、旅宿與零售），約占我們業務的 8%。

In Q2 and Q3, this cohort was 7% of total revenue. We are pleased to see these customers facing COVID-related challenges turn to us as Cloudflare pays a critical role for them as they accelerate their digital transformation plans. We also disclosed last quarter that we saw customer concessions come in well below the $2 million headwind we anticipated, trending down during the quarter to historical levels. This trend remained consistent in the third quarter with both concessions and bad debt coming in below expectations.

在第二季與第三季，這一客群占總營收的 7%。我們很高興看到這些面臨 COVID 相關挑戰的客戶轉向我們，因為在他們加速推動數位轉型計畫時，Cloudflare 對其扮演關鍵角色。我們也在上季揭露，客戶讓利（concessions）遠低於我們原先預期的 200 萬美元逆風，並在季度中下降至歷史水準。此趨勢在第三季仍然一致，讓利與呆帳皆低於預期。

We were pleased to observe another strong quarter of new ACV growth, increasing average customer spend and high sales productivity. In Q3, we observed an acceleration in remaining performance obligations, or RPO, which was $342 million, representing an increase of 25% sequentially and 81% year-over-year. A multiyear partnership agreement of $50 million contributed to the growth in RPO this quarter. So it's not expected to materially contribute to revenue until 2021.

我們很高興觀察到又一個強勁季度的新 ACV 成長、平均客戶支出提升，以及高銷售生產力。第三季我們觀察到剩餘履約義務（remaining performance obligations，RPO）加速成長，達 3.42 億美元，較前一季增加 25%，較去年同期增加 81%。本季一項 5,000 萬美元的多年期合作夥伴協議推動了 RPO 的成長，因此預期在 2021 年之前不會對營收做出重大貢獻。

Excluding this large partnership agreement, we saw a 73% year-over-year RPO growth. Again, with a great quarter, our results demonstrate the resiliency and differentiation of our business model, which emphasizes customer diversity with no customer representing more than 5% of revenue, strong visibility and predictability with a vast majority of our revenue built upfront on a subscription basis and multiple vectors of growth fueled by the massive scale and efficiency of our global cloud network.

若排除此大型合作夥伴協議，我們的 RPO 年增為 73%。再次強調，在這樣出色的一季中，我們的結果展現了商業模式的韌性與差異化：我們強調客戶多元性，沒有任何單一客戶占營收超過 5%；我們具備強能見度與可預測性，因為絕大多數營收是以訂閱制在前期建立；同時也擁有多重成長動能，來自我們全球雲端網路的龐大規模與效率。

Given the momentum we are seeing, durability of our model and our differentiation from competitors, we remain confident in the continued growth of our business. And as such, are pleased to raise guidance for both the quarter and full year. For the fourth quarter, we expect revenue in the range of $117.5 million to $118.5 million, representing an increase of 40% to 41% year-over-year. We expect operating loss in the range of $10 million to $9 million, and we expect net loss per share in the range of $0.04 to $0.03, assuming approximately 304 million common shares outstanding.

鑑於我們所看到的動能、我們商業模式的韌性以及相較競爭對手的差異化優勢，我們仍對業務持續成長充滿信心。因此，我們很高興上調本季與全年指引。就第四季而言，我們預期營收介於 1.175 億美元至 1.185 億美元之間，年增 40% 至 41%。我們預期營業虧損介於 1,000 萬美元至 900 萬美元之間；並預期每股淨虧損介於 0.04 美元至 0.03 美元之間，假設流通在外普通股約 3.04 億股。

We expect an effective tax rate of negative 13%. For the full year 2020, we expect revenue in the range of $422.5 million to $423.5 million, representing an increase of 47% to 48% year-over-year. We expect operating loss for the full year in the range of $38 million to $37 million. We expect net loss per share over that period in the range of $0.13 to $0.12, assuming approximately 300 million common shares outstanding we expect an effective tax rate for 2020 of negative 12.4%.

我們預期有效稅率為負 13%。就 2020 全年而言，我們預期營收介於 4.225 億美元至 4.235 億美元之間，年增 47% 至 48%。我們預期全年營業虧損介於 3,800 萬美元至 3,700 萬美元之間。我們預期該期間每股淨虧損介於 0.13 美元至 0.12 美元之間，假設流通在外普通股約 3.00 億股；我們預期 2020 年有效稅率為負 12.4%。

We'd also like to inform you that we will be hosting a virtual Investor Day on February 12, 2021, where we look forward to providing a deep dive into our products and our platform. In addition, we will also be providing an update on our financial progress and targets for fiscal 2021. In closing, I again want to thank our employees for delivering these great results and for the continued dedication to our customers and global community.

我們也想通知各位，我們將於 2021 年 2 月 12 日舉辦線上投資人日（virtual Investor Day），屆時我們期待就我們的產品與平台進行深入說明。此外，我們也將更新我們在 2021 會計年度的財務進展與目標。最後，我再次感謝我們的員工交出這些優異成果，並持續以高度投入服務我們的客戶與全球社群。

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

接下來，我想開放提問。接線員，請開始收集問題。

(Operator Instructions) Your first question comes from Phil Winslow with Wells Fargo.

（接線員指示）第一個問題來自 Wells Fargo 的 Phil Winslow。

Congratulations on really just a great quarter, and thank you for all the work that you do in securing our elections. Now a lot of numbers are really impressive this quarter, but large deals and really the contribution of revenue jumped out to us. Now in the past, your team has talked about how 4 products was really often the tipping point customers to lead to higher net expansion rates and lower churn. Can you give us some more color in terms of the drivers of existing, but even newer customers that you mentioned consolidating more functions on the Cloudflare, driving these larger deals? And then just have 1 follow-up to that.

恭喜你們交出非常出色的一季，也感謝你們在確保我們選舉安全方面所做的一切工作。本季有許多數字都令人印象深刻，但大型交易以及營收貢獻的躍升特別引起我們注意。過去你們團隊曾談到，客戶採用 4 項產品往往是推動更高淨擴張率與更低流失率的臨界點。你能否更具體說明一下，既有客戶、甚至你提到的較新客戶，將更多功能整合到 Cloudflare 上、進而推動這些更大型交易的驅動因素？另外我還有 1 個追問。

Yes. Phil, thanks for the question. I think that our traditional products that are kind of the tips of the spear continue to be the case. So we saw a large number of companies that were coming under cyberattack in Q3 that would turn to us. Originally, those have been our DDoS mitigation products, increasingly were putting entire networks behind our -- us using our Magic Transit product, and that has been extremely well received.

好的。Phil，謝謝你的問題。我認為我們傳統產品作為「矛尖」的角色仍然成立。因此，我們看到在第三季有大量公司遭受網路攻擊而轉向我們。最初這些多半是我們的 DDoS 緩解產品；而現在愈來愈多客戶會使用我們的 Magic Transit 產品，將整個網路都置於我們的防護之後，且市場反應非常好。

I think the new addition to that, which is really driving more and more initial interest, is people coming to us for what we call our Cloudflare for Teams product. So that's our access and gateway product. That -- pardon the pun, but that has turned into a gateway for us to get more large customers on board. I think the thing that has surprised us over the course of the last 9 months as we really have been talking with those initial customers and getting feedback is how much Cloudflare's products that existed before the Teams' products really actually dovetail nicely with the rest of the Teams' products. And so we're seeing a lot of times where someone will come to us for, say, Cloudflare Access and Gateway, but then realize that they need a web application firewall, DDoS mitigation. And that's really been a differentiator for us versus a lot of the other Zero Trust vendors that are in the market.

我認為新增的一個因素、也確實帶動愈來愈多初始興趣的是，大家因為我們所稱的 Cloudflare for Teams 產品而來找我們。也就是我們的存取（access）與閘道（gateway）產品。這個——借用雙關語——已經成為我們吸引更多大型客戶上線的「入口」。在過去 9 個月中，當我們與這些初期客戶深入交流並取得回饋時，讓我們驚訝的是：在 Teams 產品推出之前就已存在的 Cloudflare 產品，實際上與 Teams 產品的其他部分能非常自然地相互契合。因此我們常看到，有人可能先因為 Cloudflare Access 與 Gateway 而來，但接著會意識到他們還需要 Web 應用程式防火牆、DDoS 緩解等。相較於市場上許多其他 Zero Trust 供應商，這確實是我們的差異化優勢。

Great. That actually leads me to my follow-up, I guess, in terms of just more services being available. As you mentioned, Cloudflare launched Cloudflare One in October. Truly a culmination of a couple of years' worth of individual component releases. Can you touch on just the early feedback you're getting from customers or projects? And how in particular you're positioning Cloudflare One versus competitors in the secure access service edge market that maybe have forward proxies, but not reverse proxies or might have security capabilities but not networking and so on?

很好。這其實也帶到我的追問：隨著更多服務可用。正如你提到的，Cloudflare 在 10 月推出了 Cloudflare One，確實是過去幾年一系列個別元件發布的集大成。你能談談目前從客戶或專案端收到的早期回饋嗎？以及你們如何定位 Cloudflare One，相較於安全存取服務邊緣（SASE）市場中的競爭對手——例如有些可能有正向代理（forward proxies）但沒有反向代理（reverse proxies），或可能有資安能力但沒有網路能力等等？

Yes. I think the -- we've always seen the vision for Cloudflare as building the future of the enterprise network. It's why when we take the ticker symbol, we don't pick CFLR. We picked NET because we think that we are the future of the network. And the individual products are really coming together, and we allow companies to adopt just the portions that make sense for them. But what we realized is that the kaleidoscope of all of our different products and the picture that they form together really is a compelling value proposition. And I think what differentiates us then is, first of all, the ease of use across all of those different products.

可以。我認為——我們一直以來對 Cloudflare 的願景，就是打造企業網路的未來。這也是為什麼我們選擇的股票代號不是 CFLR，而是 NET，因為我們相信自己代表網路的未來。各項單一產品正在真正整合到一起，而我們也讓企業可以只採用對他們有意義的部分。但我們也意識到，我們眾多不同產品所形成的「萬花筒」以及它們共同拼出的整體圖像，本身就是非常有吸引力的價值主張。我認為我們的差異化首先在於，跨所有不同產品的易用性。

Secondly, the unified control plane where you're not having to go to a number of different vendors. And finally, that it can be significantly cost effective. And that last piece has been a big driver as CIOs and CTOs are looking to consolidate vendors, looking to simplify their deployment and looking to solve some of the budgeting problems they have. And we're there to help them with those issues.

其次，是統一的控制平面（unified control plane），讓你不必同時面對多家不同供應商。最後，是它可以顯著具備成本效益。而最後這一點一直是很大的驅動因素，因為 CIO 與 CTO 正在尋求整併供應商、簡化部署，並解決他們面臨的一些預算問題；我們就在那裡協助他們處理這些議題。

Your next question comes from Sterling Auty with JPMorgan.

下一個問題來自 JPMorgan 的 Sterling Auty。

Matthew, I guess I would shift the focus over to Workers and ask whether you've seen any change in terms of the percentage of new customers coming in that are taking Workers? And what kind of penetration into the existing base you're starting to see with the platform?

Matthew，我想把焦點轉到 Workers，想請教你是否看到新進客戶採用 Workers 的比例有任何變化？以及在既有客戶基礎中，你們開始看到平台滲透率到什麼程度？

Yes. So we're tracking very carefully the developer engagement of Workers as a whole. And the fact that we had 27,000 developers, that's not people who've created accounts, but that's actually written code and deployed it across our network. So they really have some skin in the game. And that's been a real, real involvement. Across our customers as we sign, the percentage that adopt Workers are holding pretty steady. Around 20% of new customers coming on board on a contracted basis are adopting the Workers platform.

是的。所以我們正非常仔細地追蹤 Workers 整體的開發者參與度。27,000 名開發者並不是指建立帳號的人，而是實際撰寫程式碼並將其部署到我們網路上的人；也就是說他們真的有投入、也有利害關係。這帶來非常、非常高的參與度。就我們簽約的客戶而言，採用 Workers 的比例大致維持穩定。大約有 20% 以合約方式上線的新客戶會採用 Workers 平台。

As we've talked about before, we think that there is really kind of a short, medium and long-term opportunity for Workers. The short-term opportunity is it makes all of our existing products the most programmable and configurable version in the market. So the most programmable firewall, the most programmable Zero Trust solution, the most programmable load balancer, that's what Workers really delivers. And that's where the bulk of the sort of new customers are coming from. The medium-term solution is that it is the platform that allows our own team to innovate as quickly as we have. So all of Cloudflare for Teams was built using the Workers platform. And we really think that the best development platform, the first best customer of those platforms, is the company that builds them themselves, and that's the rule that we're following.

如同我們先前談過的，我們認為 Workers 具有短期、中期與長期的機會。短期機會在於，它讓我們所有既有產品成為市場上最可程式化、最可配置的版本——也就是最可程式化的防火牆、最可程式化的 Zero Trust 解決方案、最可程式化的負載平衡器；這正是 Workers 所提供的。而這也是大多數新客戶的主要來源。中期機會在於，它是一個讓我們內部團隊能以目前這樣的速度快速創新的平台。Cloudflare for Teams 全部都是使用 Workers 平台打造的。我們也真心相信：最好的開發平台，其「第一個最佳客戶」就是打造該平台的公司自己，而這正是我們遵循的原則。

And the long-term opportunity, which, frankly, as I see that more and more sophisticated applications are being written, and we gave a number of examples on the call. But what I'm really excited about is how the sort of large financial institution, health care organization, consumer applications that are existing on a global basis that those companies with really sophisticated compute needs are increasingly seeing workers as a platform they can do something with that they really can't do on any other platform. So we've been really happy with it. Again, I think it's going to be sort of a short, medium and long-term opportunity, but the long-term keeps getting closer and closer every day.

而長期機會，坦白說，隨著愈來愈多更複雜的應用程式被開發出來——我們在電話會議中也舉了不少例子——我真正感到興奮的是：那些在全球範圍運作的大型金融機構、醫療保健組織、消費者應用等，這些具備非常複雜運算需求的公司，正愈來愈把 Workers 視為一個他們可以用來做一些在其他平台上根本做不到的事情的平台。我們對此非常滿意。再次強調，我認為這會是短期、中期與長期的機會，但長期正在一天比一天更快地到來。

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

下一個問題來自 Jefferies 的 Brent Thill。

Matthew, on the $10 million transaction, I'm curious if you could just provide a little more high-level color on what's happening there? How much opportunity is left? And anything else you can give to fill in a great transaction for you guys? And then for Thomas, just a couple of questions on the guide. Good acceleration this quarter, but you're obviously guiding to a de-sell in Q4. I realized you have a tougher comp in Q4 from last year, but anything to keep in mind, given the deceleration Q3 to Q4 in terms of the year-over-year, just to put in perspective?

Matthew，關於那筆 1,000 萬美元的交易，我想請你從較高層次多提供一些背景：那裡到底發生了什麼？還剩下多少機會？以及你還能提供任何資訊來補充這筆對你們而言很棒的交易嗎？另外給 Thomas，我有幾個關於指引的問題。本季加速表現不錯，但你們顯然在第四季指引上呈現去成長（de-sell）。我理解第四季相較去年有更高的比較基期，但就年增率從第三季到第四季的減速而言，有沒有什麼需要留意、以便我們更好地理解其背景？

I'm glad you asked me the easy questions, and, Thomas, the hard questions. So thank you for that. We -- so the $10 million customer has been, as I mentioned, a customer with us since 2016. I think the thing that we see over and over again is that not only organizations but individuals that fall in love with us for our pay as you go and even our free products often will then bring us to work. And that has allowed us to very quickly build a very loyal fan base in almost every IT organization in the world, and it really differentiates us.

我很高興你問了我簡單的問題，而 Thomas 問了困難的問題。所以謝謝你們。我們——如我先前提到的，這位每年 1,000 萬美元的客戶自 2016 年起就是我們的客戶。我認為我們一再看到的是，不只是組織，連個人也會因為我們的隨用隨付，甚至是我們的免費產品而愛上我們，之後往往會把我們帶進公司使用。這讓我們能非常快速地在全球幾乎每一個 IT 組織中建立起非常忠誠的粉絲基礎，而這也確實讓我們與眾不同。

That customer is using us for a number of our web performance as well as our security products. They tend to be our older products, the products around DDoS mitigation, WARP, and others. They're increasingly looking at adopting other products across their platform, including bot management and maybe even our Cloudflare for Teams products. So I think that we have been able to grow with them. We have become a key part of their network. We are able to continue -- there are a number of different ways we can continue to expand the relationship with that customer. And I think that this is -- while this is the first of our $10 million customers, there are -- we think that with anyone who's a Fortune 500 company, there is an opportunity for us to have a similar level of penetration.

那位客戶正在使用我們多項網站效能以及安全性產品。他們使用的多半是我們較早期的產品，也就是圍繞 DDoS 緩解、WARP 等等的產品。他們也愈來愈希望在其平台上採用其他產品，包括機器人管理，甚至可能是我們的 Cloudflare for Teams 產品。所以我認為我們已經能夠與他們一同成長。我們已成為其網路中的關鍵一環。我們也能持續——我們有許多不同方式可以繼續擴大與該客戶的合作關係。我認為——雖然這是我們第一位每年 1,000 萬美元的客戶，但我們相信，對於任何《財富》500 強公司而言，我們都有機會達到類似程度的滲透率。

Coming back to guidance, I think there are a couple of points to make. First of all, we are pleased that we're able to raise our guidance again, both for the quarter as well as for the year. A couple of things are coming together. The key growth rate for the third quarter was 52%. And we look at Q4 was a really difficult compare, growing 51% year-over-year in the fourth quarter of last year. And we are still in the middle of the COVID crisis with maybe a second wave hitting. So there is also uncertainty in the market on how this is going to affect macro factors. So I think what you see is a prudent guidance that shows confidence in the business model, keeps the tough compare in mind. And let's not forget, this gets us to a growth rate for the year of 47% to 48%.

回到財測指引，我認為有幾點要說。首先，我們很高興能再次上調指引，無論是本季還是全年。有幾件事正在同時發生。第三季的關鍵成長率是 52%。而我們看第四季，去年第四季年增 51%，是一個非常困難的比較基期。我們仍處於 COVID 危機之中，可能還會有第二波來襲。因此市場也存在不確定性：這將如何影響總體因素。所以我認為你們看到的是一份審慎的指引：它展現對商業模式的信心，同時也把艱難的比較基期納入考量。而且別忘了，這讓我們全年成長率達到 47% 到 48%。

Your next question comes from James Fish with Piper Sandler.

下一個問題來自 Piper Sandler 的 James Fish。

One question we're getting is, as you guys look to move upmarket and really get into some of these like Fortune 500 customers, how do you guys feel about the need for additional sales capacity and more direct reps? We traditionally know Cloudflare for being able to just go direct via the website, for example, or kind of the low-touch model. So I guess, how do you feel about your sales capacity and need for additional support?

我們收到的一個問題是，當你們希望往上打入市場、真正切入一些像《財富》500 強這類客戶時，你們如何看待需要增加銷售產能與更多直銷業務代表？我們傳統上知道 Cloudflare 例如可以透過網站直接轉換，或是偏低接觸（low-touch）的模式。所以我想問的是，你們如何看待目前的銷售產能，以及是否需要額外支援？

Yes. I appreciate the question. So the -- I think that we have a very diversified go-to-market strategy. We are able to sign people up on a -- come in, put in your credit card. But as we've said in previous calls, and it's continued to be the case on this -- in Q3, that is a smaller and smaller percentage of our revenue. And today, it's well under 20% of revenue. I think it has -- as we've written about in our Founder's Letter, in the S-1 and the updated Founder's Letter that we wrote before, being able to serve everyone and being able to build relationships with those individuals and those developers that can sign up for their own account, even though it doesn't account for a substantial portion of our revenue, it has driven a lot of marketing benefits, and it gives us a really strong relationship and a really developer love, which helps us when we're trying to win those large customers.

是的，謝謝你的問題。我認為我們有非常多元的 go-to-market 策略。我們確實能讓人們——進來、輸入信用卡就能註冊。但正如我們在先前的電話會議中所說，而且在這次——第三季也仍然如此，這部分占我們營收的比重愈來愈小。今天它已遠低於營收的 20%。我認為——正如我們在《創辦人信》中、在 S-1 以及我們之前撰寫的更新版《創辦人信》中所寫，能夠服務所有人、並與那些可以自行註冊帳戶的個人與開發者建立關係，即使這不構成我們營收的主要部分，卻帶來了大量的行銷效益，也讓我們建立非常強的關係與開發者的喜愛，這在我們爭取大型客戶時非常有幫助。

In terms of sales capacity, we have a -- we continue to move upmarket. We support customers. We don't believe that you can do what we do without having a sales team. And so we have -- we started with an inside sales team early on in Cloudflare's history. We now increasingly have a direct sales team with experienced sales leaders that have come from other enterprise companies that have really been able to thrive over time. And I think one of the people who've been very helpful in this is Mark Anderson on our Board, who obviously came from a number of great enterprise sales organization. That's what has allowed us to continue to scale.

就銷售產能而言，我們——我們持續往上打入市場。我們支援客戶。我們不認為在沒有銷售團隊的情況下，你能做到我們所做的事。因此我們——在 Cloudflare 早期就先建立了內勤銷售（inside sales）團隊。現在我們愈來愈多地擁有直銷（direct sales）團隊，並有來自其他企業級公司、經驗豐富的銷售主管，隨著時間推移確實表現出色。我認為其中一位對我們很有幫助的人是我們董事會的 Mark Anderson，他顯然來自多個非常優秀的企業銷售組織。這讓我們得以持續擴張規模。

So we have great sales capacity. We've been hiring. One of the things that's been amazing is that during this time, when a lot of people have pulled back hiring, we've actually stepped on the gas. And the caliber of the team as a whole, and in particular, the caliber of the team that we're being able to attract in our field sales organization, really, I think, is you're going to look back and say, wow, there was an incredible opportunity that they had during this particular time and they took advantage of it.

所以我們有很強的銷售產能。我們一直在招募。令人驚訝的一點是，在這段期間，當很多公司縮減招募時，我們其實是加速前進。整個團隊的素質，尤其是我們在外勤銷售組織中能吸引到的人才水準，我認為你們回頭看會說：哇，他們在這個特定時期遇到了一個難得的機會，而且他們把握住了。

Got it. That's helpful. And then, Matthew, a lot of product announcements over the last few months for things like browser isolation, and we go down the list. But what's next? I mean, where do you see the Cloudflare platform as next cool handling? Could we see something on identity, for example?

了解，這很有幫助。接著，Matthew，過去幾個月你們有很多產品發布，例如瀏覽器隔離等等，還有一長串。但下一步是什麼？我的意思是，你認為 Cloudflare 平台接下來會處理什麼很酷的事情？例如，我們會看到你們在身分（identity）方面有所動作嗎？

I think that our thought on identity has been that we really think partnering is the right place. Companies have largely made their bets on what their identity management companies are going to be. And so we're working with great companies like Okta, Ping Identity, Microsoft, in order to integrate their existing identity solutions. One of the things, though, that we think is powerful and that we're hearing from customers is that they often tend not to have 1 identity provider. They might have their contractors using 1 provider and their internal employees using another. And that could either be just because of the complexity of running a business. It could be because of M&A activity.

我認為我們對身分的看法是：我們真的覺得合作夥伴模式才是正確方向。各家公司大多已經押注了他們要採用哪一家身分管理公司。因此我們正與 Okta、Ping Identity、Microsoft 等優秀公司合作，以整合他們既有的身分解決方案。不過，我們認為很有力量、而且也從客戶那裡聽到的是：他們往往不只使用 1 個身分提供者。他們可能讓承包商使用 1 個提供者，而內部員工使用另一個。這可能只是因為經營企業的複雜性；也可能是因為併購（M&A）活動。

But what's powerful about the Cloudflare for Teams product, and especially our Access and Gateway products, is that they can really rationalize the complexity of those various identity providers and say, you can mix and match Okta plus Microsoft Access directory, plus what might be a more consumer-facing identity provider for contractors like a LinkedIn or a GitHub and use one control plane provided by Cloudflare in order to deliver that. So I think that that's been -- that's an area, I think it's unlikely that we will go into directly. I think it's an area we're much more likely to partner in. But I think it is a way that we can help simplify the complex setups that a number of people have.

但 Cloudflare for Teams 產品，特別是我們的 Access 與 Gateway 產品，強大之處在於：它們可以真正把各種身分提供者的複雜性合理化，並表示你可以混搭 Okta 加上 Microsoft 的 Access directory，再加上可能更偏向面向消費者、供承包商使用的身分提供者，例如 LinkedIn 或 GitHub，並使用 Cloudflare 提供的一個控制平面來交付。我認為這一直是——這是一個領域，我覺得我們不太可能直接切入。我認為這更可能是我們會透過合作夥伴來做的領域。但我也認為，這是我們能協助簡化許多人複雜設定的一種方式。

Your next question comes from Matt Hedberg with RBC Capital Markets.

下一個問題來自 RBC Capital Markets 的 Matt Hedberg。

I'll offer my congrats as well. I wanted to ask about Cloudflare One again. It certainly strikes us as a good opportunity, not only in your enterprise, but also sort of the midsized opportunity of the market. But I guess, in particular, the enterprise is what really interested me. And it was great to hear you call it the pharmaceutical company. When you think about this platform, I was wondering if you can give us more color on how it's priced, be it a bundle, à la carte? And what sort of ROI does the customer like that pharmaceutical company see when they standardize on One?

我也先表示恭喜。我想再問一次 Cloudflare One。它確實讓我們覺得是個很好的機會，不僅在你們的企業客群，也在市場中型規模的機會上。但我想，特別是企業端最讓我感興趣。聽到你們稱之為那家製藥公司也很棒。當你們思考這個平台時，我想知道你們能否提供更多細節：它的定價方式是如何？是打包（bundle）、還是可單點（à la carte）？以及像那家製藥公司這樣的客戶，在標準化採用 One 之後，會看到什麼樣的投資報酬率（ROI）？

Yes. So Matt, I appreciate it. We're really excited about Cloudflare One, and I think it is an emerging area for us. So when we published a few weeks ago, what was effectively the schematic for what we think of as the enterprise of the future, it really resonated with the market and a number of people reached out to it. But it was conversations with customers that got us there. We had traditionally thought of kind of Cloudflare for Teams and a lot of our other infrastructure products as being separate. But in retrospect, it's kind of one of those forehead slapping moments where you realize that these things go together like graham cracker and HERSHEY'S Chocolate and the marshmallow, together it creates this incredible thing, which is better than the sum of its parts. It is more. And that's just incredible opportunity for us to build something, which really resonates with customers.

是的。Matt，謝謝你。我們對 Cloudflare One 非常興奮，我認為這對我們而言是一個正在成形的新領域。幾週前我們發布了某種程度上等同於我們所認為「未來企業」的示意圖，市場反應非常強烈，很多人主動聯繫。但真正讓我們走到這一步的是與客戶的對話。我們過去一直把 Cloudflare for Teams 與我們許多其他基礎設施產品視為彼此分開。但回頭看，這有點像那種拍額頭的時刻：你會意識到這些東西就像全麥餅乾、HERSHEY'S 巧克力和棉花糖一樣，組合在一起就創造出一個不可思議的東西，效果大於各部分之和。它更強。這對我們而言是個難以置信的機會，去打造一個真正能引起客戶共鳴的產品。

Right now, we price the various components of Cloudflare One individually. But one of the things that we think we are investigating is whether we can take what is effectively an architecture and turn it into a SKU. And in that case, what we're investigating, is there a way that we can bundle together a number of Cloudflare's products and sell them on just a per seat basis. And we think that that's really attractive on both ends of the market.

目前，我們對 Cloudflare One 的各個組件採取分別定價。但我們正在研究的一件事是：是否能把本質上是一種架構的東西，轉化成一個 SKU。在那種情況下，我們正在探索：是否有辦法把 Cloudflare 的多項產品打包在一起，並以每席位（per seat）的方式銷售。我們認為這在市場兩端都非常有吸引力。

On one end -- on the low end of the market, that allows us to get more of our features into start-ups, early-stage companies and really have them have the best possible architecture from early in their history. For larger companies, what we're seeing is that there's an opportunity for us both to help them rationalize a number of different vendors and then hopefully also allow us to grow with them. And so I think it's a space to continue to watch. I don't think we know exactly how that's going to come together. But we do think that it is a real opportunity to both simplify the deployment of our customers and help them have a very significant ROI with their deployments.

在一端——也就是市場的低端，這讓我們能把更多功能帶進新創公司、早期公司，並讓他們從發展初期就能擁有盡可能最佳的架構。對於較大型的公司，我們看到的是：我們既有機會協助他們整合並理順多家不同供應商，也希望能讓我們隨著他們一同成長。所以我認為這是一個值得持續關注的領域。我不認為我們已經完全知道它最終會如何整合成形。但我們確實認為，這是一個真正的機會，既能簡化客戶的部署，也能幫助他們在部署上取得非常顯著的投資報酬率（ROI）。

That's great. Makes a lot of sense. And then sort of the other big product, and it's been asked a couple of times. But when we think about Workers, how do you think about the size of that market? I know it's a tough question. But when we think about alternatives there, when it comes to the speed of the Cloudflare network, it is quite unique. How do you think about just ultimately -- I know it's small today, but what is the monetization? What is the TAM opportunity there longer term?

很好，很有道理。接著談另一個大型產品，這個問題也被問了幾次。當我們思考 Workers 時，你怎麼看那個市場的規模？我知道這很難回答。但當我們想到那裡的替代方案時，就 Cloudflare 網路的速度而言，它相當獨特。你怎麼看最終——我知道它今天還很小——它的變現方式是什麼？長期來看，那裡的 TAM（總可服務市場）機會是什麼？

We've really resisted -- when we put together any TAM forecast or anything else, we've resisted. We were just kind of calling how, what that is because I think it's tough to say. I -- and this is -- maybe this is a little bit heretical. But I actually think that the only advantage of Workers is it's a little bit faster. The TAM is actually not that big. And while I understand that there's a lot of excitement around edge computing, and Gartner will throw out a really large number. If you actually talk to developers, their priority is -- making something a little bit faster is sort of the last in their sort of hierarchy of need, whereas they have other things around ease of use, more affordability and reliability.

我們一直很抗拒——當我們做任何 TAM 預測或其他類似事情時，我們一直很抗拒。我們只是有點在描述那會是什麼樣子，因為我覺得很難說。我——而且這——也許有點離經叛道。但我其實認為 Workers 唯一的優勢是它快一點點。TAM 其實沒有那麼大。雖然我理解大家對邊緣運算很興奮，Gartner 也會拋出一個非常大的數字。但如果你真的去跟開發者聊，他們的優先順序是——把東西做得快一點點，通常在需求層級裡算是最後面的；相較之下，他們更在意易用性、更可負擔的成本以及可靠性等其他因素。

The opportunity that I think is the biggest one, which I mentioned in the prepared remarks, is really around how can we help companies with what is an increasingly regulatory compliance situation. So if you imagine in the future that what the folks at TikTok are living through, what Facebook is increasingly facing in Europe, that comes to every business that is operating on a global basis, where the data for their customers is required to be kept in market and processed in market. Then there really isn't another platform on the market that can provide that solution without cobbling together a bunch of things.

我認為最大的機會——我在事先準備的發言裡也提到——其實是在於：我們如何協助企業面對日益嚴格的法規遵循（regulatory compliance）情境。想像未來 TikTok 正在經歷的情況、Facebook 在歐洲愈來愈常面臨的情況，會擴及到所有以全球規模營運的企業：客戶資料被要求必須留在當地市場並在當地處理。那麼市場上其實沒有另一個平台能在不把一堆東西拼拼湊湊的情況下，提供那樣的解決方案。

And if in the future, you've got 100 different laws in 100 different countries, then you need a network that spans 100 different countries. And I think that that's the real opportunity for Workers. It's early there. But when we look at our largest, most sophisticated customers, that's where they're saying this is a real opportunity. This is where we want you to invest, and that's why our team is investing in that area.

而如果未來在 100 個不同國家有 100 部不同法律，那你就需要一個橫跨 100 個不同國家的網路。我認為這才是 Workers 真正的機會。這還很早期。但當我們看我們最大、最成熟的客戶時，他們說這是一個真正的機會；這也是他們希望我們投資的方向，因此我們的團隊才會在這個領域投入。

Your next question comes from Keith Weiss with Morgan Stanley.

下一個問題來自摩根士丹利（Morgan Stanley）的 Keith Weiss。

Really nice quarter. You guys really blew it out of the water in this quarter. I kind of wanted to ask about that. You talked about really good conversion on the free Teams customers, but that didn't add a lot to revenues because they converted pretty late in the quarter. So 2 questions on that. If it wasn't like the Teams conversion driving all the upside, can you help start with what it was like anything you could point to? And what drove that upside? And then part 2, what are those Teams contracts look like when you are converting? 75% is a huge conversion rate. And are these guys signing on for a longer-term contract? Or is it just a small part of their business today and you expect it to grow over time?

這一季表現非常好。你們這一季真的超出預期。我想就此問一下。你提到免費 Teams 客戶的轉換率非常好，但因為他們在季度後期才轉換，所以對營收貢獻不大。所以我有兩個問題。第一，如果不是 Teams 轉換帶動了所有超預期的部分，你能否先說明一下是什麼因素？有沒有任何你能指出的重點？是什麼驅動了這個超預期？第二，當你們在轉換時，這些 Teams 合約通常長什麼樣子？75% 是非常高的轉換率。這些客戶是在簽較長期的合約嗎？還是說目前只占他們業務的一小部分，而你們預期會隨時間成長？

Yes. Keith, so let me take those in order. So from the upside perspective, I think because of the nature of our business, where we're a subscription business, the seeds of a lot of this got planted early in the quarter and late in the last quarter. And we just had a very strong growth across all of our various components of our business. I will say that, as we try to emphasize in the prepared remarks, the large customer segment, those customers that are over $100,000 and also those customers that are over $1 million, we're seeing more adoption from those customers. We're also seeing that we're getting more expansion from those large customers. And sometimes, that expansion is actually coming so fast that is happening within the year. And so it isn't yet reflected in our dollar-based net retention numbers. So I think that, as I said, we hit on all cylinders here. I'm really proud of the team. I think they did an incredible job delivering the quarter that we had, and it really was a team effort. And I don't think it was any one thing, but it was a combination of many different factors working out very well.

是的，Keith，我按順序回答。就超預期的部分而言，我認為因為我們的業務性質是訂閱制，很多成果的種子其實在本季初、以及上一季末就已經種下。我們在業務的各個組成面向都出現非常強勁的成長。我想說的是，正如我們在事先準備的發言中強調的，大客戶族群——也就是年支出超過 10 萬美元的客戶，以及年支出超過 100 萬美元的客戶——我們看到這些客戶採用更多產品。我們也看到從這些大客戶帶來更多擴張。有時候，這種擴張來得非常快，甚至在同一年內就發生。因此它尚未反映在我們以美元計的淨留存率（dollar-based net retention）數字中。所以我認為，如我所說，我們這一季各方面都表現出色。我為團隊感到非常自豪。我認為他們在交出這樣的季度成績上做得非常出色，這真的是團隊的努力。我不認為是單一因素，而是許多不同因素共同作用、且都進展得非常順利的結果。

On the Teams side, I think that those are typically annual contracts. We are, in some cases, signing longer-term contracts, but they are typically annual contracts. We think that since it's a newer product, us having a little bit of flexibility to revisit pricing is -- makes sense and gives customers flexibility as well. And then it's a real -- it depends on various organizations. So some organizations are having very broad adoption across their entire team, someone like a Delivery Hero, that was a substantial adoption across their entire platform. Others are small businesses where they might adopt across the entire platform, but there aren't all that many seats.

在 Teams 方面，我認為那些通常是年度合約。我們在某些情況下也會簽更長期的合約，但一般來說是年度合約。我們認為，因為這是較新的產品，我們保有一些彈性以便重新檢視定價——這是合理的，也同樣能給客戶彈性。接著，這也取決於不同組織。有些組織在整個團隊範圍內採用得非常廣泛，例如 Delivery Hero，那是在其整個平台上相當大規模的採用。其他則是小型企業，他們可能在整個平台採用，但席位數並不多。

But because we've made the product so easy to use, we can service that into the market, and we really don't have any competition at that part of the market. And then we sometimes see individual teams. But what we've learned is that oftentimes, when somebody adopts Teams within an individual team that then spreads in an organization very well. And so we think that actually the Teams product has a very -- is a real tailwind for our dollar-based net retention. And that it gives a very natural expansion motion over time for us, which we think is really exciting.

但因為我們把產品做得非常容易使用，我們可以把它推向市場，而在那個市場區段我們幾乎沒有競爭對手。然後我們有時也會看到是個別團隊先採用。但我們學到的是，很多時候當某個個別團隊採用 Teams 之後，它會在組織內部擴散得很好。因此我們認為 Teams 產品對我們以美元計的淨留存率是一個非常——是一個真正的順風（tailwind）。而且它為我們帶來一個非常自然的、隨時間推進的擴張動能，我們覺得這非常令人振奮。

Your next question comes from James Breen with William Blair.

下一個問題來自 William Blair 的 James Breen。

Just with respect to the new sales and some of the new customers, any particular products that you seem to be leading the pack in terms of the initial sale? And then of the customers, how broad is their take rate in terms of the products you offer? And I guess just lastly, geographically, any real focus, U.S., international, et cetera?

關於新銷售以及一些新客戶，你們在初次成交時，有沒有哪一些產品特別像是領先主打、最常作為切入點？另外，就客戶而言，他們對你們提供的產品採用廣度如何，也就是 take rate 的情況？最後，在地理區域上，有沒有任何明顯的重點，例如美國、國際市場等等？

Sure. So I can start with those, and then Thomas can add a little bit more color. So I think our goal is to continuously be releasing new products, so that the take rate on any given customer, even if they had adopted everything that we had yesterday, is we'll have new stuff for them tomorrow. And I think if you're not following our blog already, just the rate of innovation, the rate that the team has been able to continue to adapt and deliver products is really outstanding. And we're seeing that, that is one of the many component that is driving our continued ability to grow and scale. It's really different on different customers in terms of what the take rate for the products are.

當然。我先回答，然後 Thomas 可以再補充一些細節。我認為我們的目標是持續推出新產品，讓任何一位客戶的產品採用率（take rate）——即使他們昨天已經採用了我們所有的產品——明天我們也會有新的東西提供給他們。我想如果你還沒有追蹤我們的部落格，光是創新速度、團隊持續調整並交付產品的速度，真的非常出色。我們也看到，這是推動我們持續成長與擴張能力的眾多因素之一。不同客戶在產品採用率上差異很大。

But we do naturally see products that fit together fairly well. So the Teams product fit very well with our DDoS and our web application firewall product. We're seeing a lot of interest over the last 2 quarters in our Magic Transit product. That tends to be a great, again, tip of the spear product for us to come in with. But once somebody's entire network is behind us, that then allows us to approach them and talk about Teams and some of the other products as well. So the journey in the Cloudflare can come in many different directions, but we're really happy with, again, our ability to continue to innovate, continue to add to the platform and see the adoption of these new products by our existing customers.

但我們確實自然地看到一些產品彼此之間搭配得相當好。例如 Teams 產品就非常適合與我們的 DDoS 以及 Web 應用程式防火牆（WAF）產品一起使用。過去兩個季度，我們也看到市場對我們 Magic Transit 產品的興趣很高。那往往也是一個很好的——再次強調——作為我們切入的「尖兵」產品。但一旦某家客戶把整個網路都放在我們後面，這就讓我們能進一步接觸他們，並討論 Teams 以及其他一些產品。因此，導入 Cloudflare 的旅程可以從很多不同方向開始；但我們對於——再次強調——持續創新、持續擴充平台，並看到既有客戶採用這些新產品的能力感到非常滿意。

Yes. From a new ACV perspective, a particularly strong quarter in North America. From a revenue production perspective, strong in both North America and Europe, up 58% year-over-year. Strong across all verticals. No vertical really that stood out, a very even performance across industrial, health care and other verticals.

是的。從新增 ACV（年度合約價值）的角度來看，北美這一季特別強勁。從營收產出角度來看，北美與歐洲都很強勁，年增 58%。各垂直產業表現都很強。沒有哪個垂直領域特別突出；在工業、醫療保健以及其他垂直領域的表現都非常平均。

Your next question comes from Gray Powell with BTIG.

您的下一個問題來自 BTIG 的 Gray Powell。

Congratulations on the quarter. So I know you guys have had a few questions on Teams and Access. And maybe I'll just throw in one more. How should we think about the typical uplift to an enterprise customer's ARR when they go all in on Cloudflare Access?

恭喜本季表現。我知道你們在 Teams 和 Access 方面已經被問了幾個問題。我可能再加問一個：當企業客戶全面採用 Cloudflare Access 時，我們應該如何看待其 ARR 的典型提升幅度？

Sure. So Access is priced on a per seat basis, and there are various tiers of that pricing. And so the dimensions will be how many employees do they have on their organization and then what tier of that service are they adopting. And so that could be as low as a few dollars per seat. It could be as high as tens of dollars per seat. And it depends on exactly what their deployment is. But we are now seeing 6-plus figure deals that are just in the Cloudflare for Teams -- just for Cloudflare for Teams. And again, it's a -- we think it has a natural expansion on 2 directions both when customers grow and then also when we convince those customers to adopt a higher tier of -- a higher per seat tier.

當然。Access 是按每席位（per seat）計價，且有不同的價格層級。因此，影響因素包括：他們組織內有多少員工，以及他們採用的是哪一個服務層級。價格可能低至每席位幾美元，也可能高至每席位數十美元，取決於其具體部署情況。但我們現在已經看到僅在 Cloudflare for Teams——只是在 Cloudflare for Teams——就有 6 位數以上金額的交易。而且，我們認為它在兩個方向上都有自然的擴張：一是客戶成長時，二是當我們說服客戶採用更高層級——更高每席位層級時。

Got it. Okay. And then I know you disclosed some numbers earlier this year, but did you have any like updated stats on the total number of customers that had a free version of Teams before Q3? And then I know you said 75% converted in the quarter. So I'm just trying to figure out the raw number of quarters that -- of customers that actually converted. And then can you give us any sense as to like how big those customers are? Are they -- skew more small, mid or large enterprise?

了解。好。另外我知道你們今年稍早披露過一些數字，但你們是否有更新的統計：在 Q3 之前，使用 Teams 免費版本的客戶總數是多少？然後我知道你們說本季有 75% 轉換，所以我想推算實際轉換的客戶原始數量。以及你們能否分享一下這些客戶的規模大概如何？是偏小型、中型，還是大型企業？

Yes. So it was a couple of thousand customers took us up on the free Teams offer. I don't -- just to be 100% clear, we have also extended a free offer for small organizations and small teams, which we plan to continue indefinitely. And we think that that's a really great gateway to get start-ups and smaller organizations onto the platform. So I think you were asking about the free offer that we made back in March, but there is this other free offer that will continue to extend over the long term.

是的。大約有幾千位客戶接受了我們的 Teams 免費方案。我——為了 100% 說清楚，我們也為小型組織和小型團隊提供了免費方案，我們計畫無限期持續下去。我們認為這是讓新創與較小型組織進入平台的一個非常好的入口。我想你問的是我們在 3 月推出的那個免費方案，但另外還有這個會長期延續的免費方案。

In terms of the people that took us up on the free offer, it really was across the board. We mentioned a handful of what a relatively large organization that are part of this. There were much larger organizations as well that came in through that funnel. I would say the majority would reflect what is sort of a typical distribution of sizes of companies. So we would have a lot of small businesses that are in that mix. But then a handful of Fortune 500 and very large customers as well.

就接受免費方案的人而言，確實是涵蓋各種規模。我們提到其中有少數相對大型的組織參與其中；也有更大型的組織透過那個漏斗進來。我會說，多數情況反映的是公司規模的典型分布。因此其中會有很多小型企業，但也有少數《財富》500 強以及非常大型的客戶。

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

Mariama，我們可以再接最後一位分析師的提問嗎？

Your last question comes from the line of Amit Daryanani with Evercore.

您最後一個問題來自 Evercore 的 Amit Daryanani。

Perfect. I'm glad I was able to squeeze in. I guess, two for me. First one, I know we've talked about Cloudflare One a fair amount, but I was wondering if you could perhaps address the top on 2 fronts. One, the traction you see skews more enterprise or SMB? And do they both like you for the same reasons or different reasons? And then, secondly, in the instances where you're winning, where you're getting deployed, what exactly are you replacing? What are the entities that you're replacing in the infrastructure there?

太好了，很高興我能擠進來。我有兩個問題。第一個，我知道我們談了不少 Cloudflare One，但想請你從兩個面向回應一下：第一，你們看到的動能是更偏企業客戶還是 SMB？他們喜歡你們的原因是相同還是不同？第二，在你們贏單、實際部署的情況下，你們到底是在替換什麼？在那個基礎架構中，你們替換的是哪些實體/供應商？

Sure. So I think that actually somewhat opposite how we went to market with a lot of other -- Cloudflare's other products. We're actually seeing for Cloudflare One and the products that make up Cloudflare One more interest in the larger enterprise segment first, and then we're trying to pull that down to small businesses. We don't see really any competition in the self-service, pay as you go segment. And so we think that that's an area that we can really help define what the standard is and that, that will be a fertile ground. But if we look at the people that are -- the organizations that are adopting Cloudflare One, if you look at the leads that were generated from that interest in it, it really has been the much larger end of the customer set, both in terms of new logos coming to us as well as the people that we've been able to approach and upsell on as existing customers.

當然。我認為這其實與我們推向市場的方式在很多其他——Cloudflare 的其他產品——上有些相反。對於 Cloudflare One 以及構成 Cloudflare One 的產品，我們首先在較大型企業客群看到更多興趣，然後我們正嘗試把它往下延伸到小型企業。我們在自助式、隨用隨付（pay as you go）這個區隔幾乎看不到競爭。因此我們認為那是我們可以真正協助定義標準的領域，而且那會是一片肥沃的土壤。但如果我們看正在採用 Cloudflare One 的人——對它產生興趣而帶來的線索——確實主要來自客戶群中更大型的那一端，不論是作為新客戶（new logos）來到我們這裡，或是我們能接觸並對既有客戶進行加購/升級銷售（upsell）的對象。

In terms of who we replace, I think that fundamentally, the Zero Trust network architecture is a just different way of doing networking. In the past, the way that you would construct a corporate network is you would build a castle, build a moat around that castle and you put all your secrets inside the castle. You make all your employees come to work in the castle. And then anyone that was -- they had to live outside the castle would cross over a drawbridge. Those drawbridges are VPN. The moat is the firewall. The next-generation firewall types of companies, intrusion detection companies, data loss protection companies, typically, they were the folks that sold boxes that define that moat or allowed access to those drawbridges to get across it.

至於我們替換誰，我認為從根本上說，零信任（Zero Trust）網路架構是一種完全不同的網路建置方式。過去你建構企業網路的方法是：你會蓋一座城堡，在城堡外挖一條護城河，把所有機密都放在城堡裡。你讓所有員工都到城堡裡工作。然後任何——必須住在城堡外的人——就要走過吊橋。那些吊橋就是 VPN。護城河就是防火牆。下一代防火牆公司、入侵偵測公司、資料外洩防護公司，通常就是賣那些盒子（設備）來定義那條護城河，或讓人能透過吊橋進出。

As people are adopting a Zero Trust model, they need a different approach to it. And so what we see often is people will -- maybe I'll leave some of that in place, but that they will migrate more and more applications to this new approach. And over time, the budget dollars that, that is -- that new approach is coming from comes from those budget dollars that you would otherwise be buying that VPN, that firewall, that next-generation firewall, the intrusion detection system, the data loss prevention system. With 1 -- that's true of the Teams piece is, one, we extend also making sure that we have sort of a web application firewall component and a DDoS mitigation component as well. And so that could either be boxes that people buy or in some cases, it could be services provided by either the telecom or other companies that are sort of point cloud solutions. Does that -- Amit, does that answer your question?

當人們採用零信任模型時，就需要不同的方法。因此我們常看到的是，人們可能會——先保留其中一些既有架構，但會把越來越多的應用程式遷移到這種新方法上。隨著時間推移，這種新方法所使用的預算，會來自於你原本會用來購買 VPN、防火牆、下一代防火牆、入侵偵測系統、資料外洩防護系統的那些預算。還有一點——這也適用於 Teams 的部分——我們也延伸確保我們具備某種 Web 應用程式防火牆（WAF）元件，以及 DDoS 緩解元件。因此那可能是人們購買的設備盒子，或在某些情況下，可能是由電信商或其他公司提供的服務，屬於某種點狀的雲端解決方案。Amit，這樣——有回答到你的問題嗎？

No. That is really helpful. And obviously, I appreciate the change of pace with some great hold music prior to the call. So thanks for that.

有，這非常有幫助。而且顯然，我也很欣賞在通話前節奏有所改變，還有很棒的等待音樂。謝謝。

Well, that was a really talented musician guy named [Jonah Cuti], and he was accompanied by [Bibi Stockwell]. [Jonah] is a freshman at the Berklee College of Music. I met him in part because he's a proud Cloudflare shareholder, and we're excited to have him as a shareholder. And we've always really admired Shopify. They've been a great customer of ours for a long time. They have done this with Canadian bands, and so it was great to convince the conference call folks to allow us to do it. So thanks for asking about it.

嗯，那是一位非常有才華的音樂人，名叫 [Jonah Cuti]，由 [Bibi Stockwell] 伴奏。[Jonah] 是伯克利音樂學院（Berklee College of Music）的大一新生。我認識他部分原因是他是一位自豪的 Cloudflare 股東，而我們也很高興他成為股東。我們一直非常欣賞 Shopify；他們長期以來一直是我們很棒的客戶。他們曾用加拿大樂團做過這樣的事，所以能說服電話會議的工作人員讓我們也這麼做，真的很棒。謝謝你問到這件事。

There are no further questions at this time. I will now turn the call back over to the presenters.

目前沒有其他問題。我現在把電話交回給簡報人員。

Thanks, everyone. And again, I really wanted to thank the Cloudflare team. It's been a really tough last couple of weeks as we've been on pins and needles, making sure that the U.S. election went as smoothly as possible. I'm proud to have played a small part in ensuring that, that was the case and really proud of our entire team for making that happen. So thank you, and we'll see you back here next quarter.

謝謝各位。再次，我真的想感謝 Cloudflare 團隊。過去幾週非常艱難，我們一直如坐針氈，確保美國大選能盡可能順利進行。我很自豪自己能在其中扮演一小部分角色，確保事情確實如此，也為我們整個團隊能做到這點感到非常自豪。謝謝大家，我們下個季度再見。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

各位女士先生，今天的電話會議到此結束。感謝您的參與。您現在可以掛線。