Cloudflare Inc (NET) 2020 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. And welcome to the Cloudflare Q2 2020 Earnings Conference Call. (Operator Instructions)

女士們，先生們，謝謝你們的支持。歡迎參加 Cloudflare 2020 年第二季度收益電話會議。 （操作員說明）

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

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

Thank you for joining us to discuss Cloudflare's financial results for the second 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.

感謝您加入我們討論 Cloudflare 2020 年第二季度的財務業績。與我通話的還有聯合創始人兼首席執行官 Matthew Prince； Michelle Zatlyn，聯合創始人兼首席運營官；和首席財務官 Thomas Seifert。

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

到現在為止，每個人都應該可以看到我們的收益公告。本公告以及我們的補充財務信息可在我們的投資者關係網站上找到。

As a reminder, we'll be making forward-looking statements during today's discussion including, but not limited to, the impact of the COVID-19 pandemic on our and our customers', vendors' and partners' operations and future financial performance; anticipated product launches and the time and market potential of those launches; 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.

提醒一下，我們將在今天的討論中做出前瞻性陳述，包括但不限於 COVID-19 大流行對我們和我們的客戶、供應商和合作夥伴的運營以及未來財務業績的影響；預期的產品發布以及這些發布的時間和市場潛力；公司預期未來收入、財務業績、經營業績、非 GAAP 毛利率、非 GAAP 經營淨虧損、非 GAAP 每股淨虧損、已發行股票、非 GAAP 運營費用、自由現金流、非 GAAP有效稅率、美元淨保留率、免費和付費客戶以及大客戶。

These statements and other comments are not guarantees of future performance but rather are subject to risks and uncertainty, some of which are beyond our control, including but not limited to, the extent and duration of the impact of the COVID-19 pandemic and adverse conditions in the general domestic and global economic markets. Our actual results may differ significantly from those projected or suggested in any forward-looking statements. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call.

這些陳述和其他評論不是對未來業績的保證，而是受到風險和不確定性的影響，其中一些是我們無法控制的，包括但不限於 COVID-19 大流行和不利條件的影響範圍和持續時間在一般的國內和全球經濟市場。我們的實際結果可能與任何前瞻性陳述中預測或建議的結果大不相同。這些前瞻性陳述適用於今天，您不應依賴它們代表我們未來的觀點。我們沒有義務在本次電話會議後更新這些聲明。

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.

有關可能影響我們未來經營業績和財務狀況的風險和不確定性的更完整討論，請參閱我們向美國證券交易委員會提交的文件以及今天的收益新聞稿。

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

除非另有說明，否則我們今天談論的除收入以外的所有數字都將基於調整後的非 GAAP 基礎。所有討論的當前和前期財務數據均反映在 ASC 606 下。您可以在我們投資者關係網站上的收益新聞稿中找到 GAAP 與非 GAAP 財務指標的對賬。對於歷史時期，可以在剛才引用的補充財務信息中找到 GAAP 與非 GAAP 對賬。

We would also like to inform you that we will be virtually participating in the Oppenheimer Annual Technology, Internet & Communications Conference on August 11, the KeyBanc Future of Technology Series on August 18 and the Jefferies Software Conference on September 14.

我們還想通知您，我們將以虛擬方式參加 8 月 11 日的 Oppenheimer 年度技術、互聯網和通信大會、8 月 18 日的 KeyBanc 未來技術系列和 9 月 14 日的 Jefferies 軟件大會。

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

現在我想把電話轉給馬修。

Thank you, Jayson. We had a very strong quarter. Our Q2 revenues came in just shy of $100 million, up 48% year-over-year. We saw strength from our customers of all sizes. We grew our large customer count, those paying us more than $100,000 annually, by 65% year-over-year. We also added nearly 7,000 new paying customers, bringing our total paying customer count to over 96,000. At the same time, we saw strong growth across our existing customer base as they adopted more features of the Cloudflare platform.

謝謝你，傑森。我們有一個非常強勁的季度。我們第二季度的收入接近 1 億美元，同比增長 48%。我們從各種規模的客戶那裡看到了力量。我們增加了我們的大客戶數量，這些客戶每年向我們支付超過 100,000 美元，同比增長 65%。我們還增加了近 7,000 名新付費客戶，使我們的付費客戶總數超過 96,000 名。與此同時，我們看到現有客戶群的強勁增長，因為他們採用了 Cloudflare 平台的更多功能。

While we are very happy with our results, our nature is always to be on the lookout for what could go wrong. As I talked about last quarter, we were concerned about concessions and the risk of bad debt caused as a result of the COVID-19 pandemic. While we are not out of the woods, we see good reasons to be optimistic. COVID-related concession requests peaked in early April and have since tailed off. We came in well below what we forecast for potential downside.

雖然我們對結果非常滿意，但我們的本性總是要警惕可能出現的問題。正如我在上個季度談到的那樣，我們擔心 COVID-19 大流行導致的讓步和壞賬風險。雖然我們還沒有走出困境，但我們有充分的理由保持樂觀。與 COVID 相關的特許權請求在 4 月初達到頂峰，此後逐漸減少。我們的表現遠低於我們對潛在下行風險的預測。

Today, much more so than on our last earnings call, we feel we have clear visibility into the effects of the pandemic on our business. That has given us the confidence, as Thomas will detail, to raise both our Q3 and our annual guidance. That confidence comes foundationally from our very predictable and consistent business model. The vast majority of our revenue, more than 95% we built upfront on a subscription basis. That generally gives us good visibility into our future results.

今天，與我們上次的財報電話會議相比，我們更加清楚地了解大流行病對我們業務的影響。正如 Thomas 將詳述的那樣，這使我們有信心提高我們的第三季度和年度指導。這種信心從根本上來自我們非常可預測和一致的商業模式。我們的絕大部分收入，超過 95% 都是在訂閱的基礎上預先建立的。這通常使我們能夠很好地了解我們未來的結果。

Another consequence appears to have been that we saw the peak in customer concession requests earlier than other companies that bill in arrears on a more volatile usage basis. One thing we are seeing increasingly is customers who were surprised by their large usage-based bills at other vendors now coming to us for predictable, consistent pricing. No one likes to be surprised by a bill, and we believe the consistency of our SaaS approach is not only more predictable for us but also builds trust and wins loyal customers over the long term.

另一個結果似乎是，我們比其他在更不穩定的使用基礎上拖欠賬單的公司更早地看到客戶讓步請求的高峰。我們越來越多地看到的一件事是，那些對其他供應商的大量基於使用的賬單感到驚訝的客戶現在來找我們尋求可預測的、一致的定價。沒有人喜歡對賬單感到驚訝，我們相信我們 SaaS 方法的一致性不僅對我們來說更可預測，而且可以建立信任並長期贏得忠實客戶。

While concessions ended up lower than we had forecast, I'm proud of how our team worked to accommodate those of our customers that were struggling due to COVID. These are tough times for many businesses. Great partnerships are often built during tough times. Consistency and predictability are especially valued when so much else seems uncertain. The customers I've talked to have been thankful that we've been there as a good, reliable partner with them through the challenges in the last 5 months.

雖然優惠最終低於我們的預期，但我為我們的團隊如何努力滿足那些因 COVID 而苦苦掙扎的客戶而感到自豪。對於許多企業來說，這是艱難的時期。良好的伙伴關係往往是在艱難時期建立起來的。當很多其他事情看起來都不確定時，一致性和可預測性尤其重要。與我交談過的客戶感謝我們在過去 5 個月的挑戰中一直作為他們良好、可靠的合作夥伴。

For our own business, we are relentlessly paranoid. So we've been watching a handful of metrics in order to help understand the impact of these unusual times. As I mentioned on our last earnings call, our sales cycle had ticked up by a few days in Q1. That trended back down in Q2 and remains well under a quarter and at the low end of our historic range. We were worried sales productivity may slow as our team adapted to working remotely. Instead, sales productivity per ramped rep hit a new record high.

對於我們自己的事業，我們無情地偏執。因此，我們一直在觀察一些指標，以幫助了解這些不尋常時期的影響。正如我在上次財報電話會議上提到的那樣，我們的銷售週期在第一季度縮短了幾天。這一趨勢在第二季度回落，仍遠低於四分之一，處於我們歷史區間的低端。我們擔心隨著我們的團隊適應遠程工作，銷售效率可能會下降。相反，每名增長代表的銷售效率創下歷史新高。

Deeper into the weeds, we watched our receivable collection period closely. We speculated that as businesses struggled during the pandemic, our collection period may lengthen. We were pleasantly surprised to see our collections period stay stable over the last 2 quarters.

在雜草的更深處，我們密切關注我們的應收賬款回收期。我們推測，由於企業在大流行期間舉步維艱，我們的收款期可能會延長。我們驚喜地發現我們的收款期在過去兩個季度保持穩定。

So what's going on? We believe the pandemic forced companies to sort their vendors into 2 buckets: nice-to-haves and must-haves. All indications from the quantitative metrics we're watching as well as the qualitative conversations we're having with customers are that Cloudflare is squarely in the must-have bucket. Of course, we are part of the larger global economy and lest we forget, we're still in the midst of a global pandemic. So lots of risks remain. But we see no indication that we are uniquely exposed to the effects of the crisis. Quite the opposite.

發生什麼了？我們認為，大流行迫使公司將他們的供應商分為兩類：可有可無和不可或缺。我們正在觀察的定量指標以及我們與客戶進行的定性對話的所有跡像都表明，Cloudflare 完全屬於必備產品。當然，我們是更大的全球經濟的一部分，唯恐我們忘記，我們仍處於全球大流行之中。所以很多風險仍然存在。但我們沒有看到任何跡象表明我們是唯一容易受到危機影響的人。恰恰相反。

For example, for new customers, segments that have traditionally been slow to adopt the cloud are increasingly embracing their digital transformation and turning to us for help. In Q2, we saw particular strength in Europe, industrial companies and small businesses. Those are not the first 3 segments you think about when you think about cloud adoption, and yet, COVID has caused even those segments of customers that traditionally are slow to change to adapt in order to survive. The nimbleness of our go-to-market team and our short sales cycle have allowed us to adjust our playbooks and be there for new customers in these segments as they've unexpectedly accelerated their digital and network transformation plans.

例如，對於新客戶，傳統上採用雲計算緩慢的細分市場正在越來越多地接受他們的數字化轉型並向我們尋求幫助。在第二季度，我們看到歐洲、工業公司和小型企業表現尤為強勁。當您考慮雲採用時，這些並不是您首先想到的 3 個細分市場，但是，COVID 甚至導致那些傳統上為了生存而改變緩慢的客戶細分市場。我們進入市場的團隊的敏捷性和我們較短的銷售週期使我們能夠調整我們的劇本，並在這些細分市場中為新客戶服務，因為他們出人意料地加速了他們的數字和網絡轉型計劃。

It also helps that customers need our services more than ever. We talked last earnings call about the incredible increase in consumption of Internet services generally. The global growth of Internet traffic largely plateaued in Q2, and we believe it will remain largely flat in Q3. What did not plateau were cyberattacks. We've blocked 37% more cyberattacks per day for the same cohort of customers in Q2 than Q1. Think of that metric as our cyberattack equivalent of same-store sales. If you include new customers, the growth in mitigated attacks was 63%.

它還有助於客戶比以往任何時候都更需要我們的服務。我們在上次財報電話會議上談到了互聯網服務消費總體上令人難以置信的增長。全球互聯網流量的增長在第二季度基本趨於平穩，我們認為第三季度將基本持平。沒有穩定的是網絡攻擊。我們在第二季度每天為同一群客戶阻止的網絡攻擊比第一季度多 37%。將該指標視為我們的網絡攻擊等同於同店銷售額。如果包括新客戶，緩解攻擊的增長率為 63%。

When companies face online cyber threat, they increasingly turn immediately to Cloudflare. May was the busiest month the Internet has ever seen for distributed denial-of-service attacks. June saw an attack against 1 of our customers that lasted 4 days and peaked at more than 750 million packets per second. Our network didn't flinch. The targeted customer's infrastructure never slowed down, and they weren't even aware until our systems alerted them.

當公司面臨在線網絡威脅時，他們越來越多地立即轉向 Cloudflare。 5 月是互聯網有史以來分佈式拒絕服務攻擊最繁忙的月份。 6 月，我們的 1 個客戶遭受了持續 4 天的攻擊，峰值達到每秒超過 7.5 億個數據包。我們的網絡沒有退縮。目標客戶的基礎架構從未減慢速度，在我們的系統提醒他們之前他們甚至都沒有意識到。

Suffice it to say, none of us expected 2020 to work out the way it has. I'm thankful for our team and our technology's flexibility and proud of all the customers we've helped ensure have a fast, reliable and secure Internet through these challenging times. I swore after last earnings call, where I literally repeated the word 4 times, I would never again call anything unprecedented, but here we are.

可以這麼說，我們都沒有預料到 2020 年會像現在這樣發展。我感謝我們的團隊和我們技術的靈活性，並為我們幫助確保在這些充滿挑戰的時期擁有快速、可靠和安全的互聯網的所有客戶感到自豪。在上一次財報電話會議後，我發誓，我把這個詞重複了 4 次，我再也不會稱之為前所未有的事情，但我們到了。

Back in April, I spoke to our team at our Q2 kickoff. I emphasized that great companies use crises to focus on what's most important but also to invest in the future while others pull back. Our team rose to that challenge. It's been incredible to see the rate of innovation that has continued, and in fact, accelerated even as we've had to adapt to a new work environment.

早在四月份，我就在我們的第二季度啟動時與我們的團隊進行了交談。我強調，偉大的公司利用危機來專注於最重要的事情，同時也在其他人撤退時投資於未來。我們的團隊迎接了這一挑戰。令人難以置信的是，即使我們不得不適應新的工作環境，創新的速度仍在繼續，事實上還在加速。

One place you can measure that investment is in hiring. Unlike many others in the industry, we did not slow down. We hired 257 new team members in Q2, which is a record for us and ahead of our hiring plan. But what's behind those numbers is even more impressive. We had nearly 47,000 applicants, up 750% year-over-year. If you do the math, that means we extended offers to less than 0.6% of applicants. We had a 96% offer acceptance rate company-wide and a 99% rate in our sales organization. The talent we're seeing is incredible.

您可以衡量投資的一個地方是招聘。與業內許多其他公司不同，我們並沒有放慢腳步。我們在第二季度僱用了 257 名新團隊成員，這是我們的記錄，並且領先於我們的招聘計劃。但這些數字背後的內容更令人印象深刻。我們有近 47,000 名申請人，同比增長 750%。如果您算一下，這意味著我們向不到 0.6% 的申請人提供了錄取通知書。我們在全公司範圍內有 96% 的報價接受率，在我們的銷售組織中有 99% 的報價接受率。我們看到的人才令人難以置信。

My parents were proud when I got into HBS, turns out the odds of getting a job at Cloudflare these days are much harder. When, 18 months from now, you hear about some incredible new feature or a big customer win, know that the investments in the people who made that happen came during this time, when we stepped on the gas while others were pumping the brakes.

當我進入哈佛商學院時，我的父母為我感到自豪，事實證明，如今在 Cloudflare 找到一份工作的可能性要大得多。從現在起 18 個月後，當您聽說一些令人難以置信的新功能或贏得大客戶時，要知道在這段時間裡，對實現這一切的人的投資是在我們踩油門而其他人踩剎車的時候發生的。

Even as we made these investments, we continue to make substantial progress on our path toward profitability. This quarter, we delivered nearly 2,000 basis points in operating leverage year-over-year. And even as we saw unprecedented spikes in traffic and cyberattacks, our gross margins remain north of 76% and within our long-term target model. But of course, there's no metric more important to judging the health of any business than its ability to win the trust of new customers. To that end, I wanted to walk through a handful of customer stories for the quarter.

儘管我們進行了這些投資，但我們在盈利的道路上繼續取得實質性進展。本季度，我們的經營槓桿率同比提高了近 2,000 個基點。即使我們看到流量和網絡攻擊出現前所未有的激增，我們的毛利率仍保持在 76% 以上，並且在我們的長期目標模型之內。但當然，對於判斷任何企業的健康狀況而言，沒有比其贏得新客戶信任的能力更重要的指標了。為此，我想介紹本季度的一些客戶案例。

One of the largest and oldest European financial services firm signed a 3-year deal worth $450,000 per year for Cloudflare for Teams, our zero trust cloud-based replacement for legacy VPNs and firewalls. They talked to many of the major zero trust cloud security players and chose Cloudflare for the capabilities of our current offering as well as what they described as our future-proof road map. We believe there will be an opportunity to further expand this customer as our browser isolation technology is rolled out in the second half of this year.

歐洲最大和歷史最悠久的金融服務公司之一為 Cloudflare for Teams 簽署了一項為期 3 年的協議，每年價值 450,000 美元，這是我們基於雲的零信任替代傳統 VPN 和防火牆的產品。他們與許多主要的零信任雲安全參與者進行了交談，並選擇了 Cloudflare，因為我們當前產品的功能以及他們所說的面向未來的路線圖。我們相信，隨著我們的瀏覽器隔離技術在今年下半年推出，我們將有機會進一步擴大該客戶。

A large U.S.-based industrial manufacturer signed a deal worth $350,000 per year to adopt Cloudflare's web application firewall solution. They were moving to the cloud as part of their digital transformation, replacing legacy on-premise hardware and saw Cloudflare as the clear winner in cloud security. Having established a trusted relationship with them last quarter, this quarter, we are talking to them about adopting our Cloudflare for Teams solution for their 50,000 employees.

美國一家大型工業製造商簽署了一項每年價值 350,000 美元的協議，以採用 Cloudflare 的 Web 應用程序防火牆解決方案。作為數字化轉型的一部分，他們正在遷移到雲端，取代傳統的本地硬件，並將 Cloudflare 視為雲安全領域的明顯贏家。在上個季度與他們建立了信任關係後，本季度我們將與他們討論為他們的 50,000 名員工採用我們的 Cloudflare for Teams 解決方案。

A leading identity and access management provider signed a 2-year deal worth $0.5 million per year. They've moved workloads away from Amazon Web Services due to better speed and flexibility of our platform. They are part of a general trend we are seeing from the most security-savvy organizations who tell us they trust Cloudflare's platform, respect our team, believe in our ability to continue to innovate and are betting on our technology.

一家領先的身份和訪問管理提供商簽署了一項為期 2 年的協議，每年價值 50 萬美元。由於我們平台的速度和靈活性更高，他們已將工作負載從 Amazon Web Services 轉移出去。它們是我們從最精通安全的組織那裡看到的總體趨勢的一部分，他們告訴我們他們信任 Cloudflare 的平台，尊重我們的團隊，相信我們繼續創新的能力，並押注於我們的技術。

A born-in-the-cloud gaming platform signed an expansion of their existing cloud player contract for an additional $1.8 million annually. This platform, which if you have kids at home, they're almost certainly using, chose Cloudflare to ensure the best possible experience for all their users worldwide. I've been excited to watch how they use Cloudflare Workers, our serverless computing platform, to scale and empower the explosive growth they've seen over the first half of 2020. That's one great example of a Cloudflare Workers customer, but I wanted to finish by giving you a picture of how developers generally are adopting our serverless computing platform.

一個誕生於雲端的遊戲平台簽署了對現有云播放器合同的擴展，每年額外支付 180 萬美元。這個平台，如果你家裡有孩子，他們幾乎肯定會使用這個平台，它選擇了 Cloudflare 來確保為全球所有用戶提供最佳體驗。我很高興看到他們如何使用我們的無服務器計算平台 Cloudflare Workers 來擴展和推動他們在 2020 年上半年看到的爆炸式增長。這是 Cloudflare Workers 客戶的一個很好的例子，但我想最後向您展示開發人員通常如何採用我們的無服務器計算平台。

Cloudflare Workers launched nearly 3 years ago. Part of what was powerful about Workers was that it was a true Turing-complete, serverless computing platform that allowed developers to build sophisticated applications and run them edge-to-edge across our entire network. Today, approximately 10% of traffic flowing through Cloudflare's network is powered by Workers. About 20% of new large customer deals include Workers. And in Q2 alone, 22,000 new developers wrote their first application using Workers, up 440% year-over-year. We're not satisfied being just a niche edge computing platform. We want to be the go-to serverless computing platform for all developers and applications.

Cloudflare Workers 於近 3 年前推出。 Workers 的部分強大之處在於它是一個真正的圖靈完備的無服務器計算平台，允許開發人員構建複雜的應用程序並在我們的整個網絡中以邊到邊的方式運行它們。如今，流經 Cloudflare 網絡的流量中約有 10% 由 Workers 提供支持。大約 20% 的新大客戶交易包括 Workers。僅在第二季度，就有 22,000 名新開發人員使用 Workers 編寫了他們的第一個應用程序，同比增長 440%。我們不滿足於只是一個利基邊緣計算平台。我們希望成為所有開發人員和應用程序的首選無服務器計算平台。

To that end, last week, we announced a number of new Cloudflare Workers features. We significantly raised CPU limits, allowing customers to build even more sophisticated applications. We released pricing that is up to 75% less expensive than the same workload than AWS Lambda while still being margin accretive for us. And we expanded our tools to support the languages developers already know and love like JavaScript, C, C++, Python, Rust, Scala and even COBOL.

為此，上週我們宣布了一些新的 Cloudflare Workers 功能。我們顯著提高了 CPU 限制，允許客戶構建更複雜的應用程序。我們發布的定價比相同工作負載的 AWS Lambda 便宜多達 75%，同時仍能增加我們的利潤。我們擴展了我們的工具以支持開發人員已經了解和喜愛的語言，例如 JavaScript、C、C++、Python、Rust、Scala 甚至 COBOL。

What I'm excited to see is the developers choosing Cloudflare Workers aren't doing so just because it's the fastest but also because it's the most consistent, secure, cost-effective computing platform that's easy for them to use and help solve the thorny global compliance issues their CIOs increasingly care about. Watch this space. As Michelle likes to say, we're just getting started.

我很高興看到開發人員選擇 Cloudflare Workers 並不僅僅因為它速度最快，還因為它是最一致、最安全、最具成本效益的計算平台，易於使用並幫助解決棘手的全球問題他們的 CIO 越來越關心合規性問題。關注此空間。正如米歇爾喜歡說的，我們才剛剛開始。

With that, I'll turn it over to Thomas to walk through our financial results for the quarter. Thomas, take it away.

有了這個，我將把它交給托馬斯來瀏覽我們本季度的財務業績。托馬斯，把它拿走。

Thank you, Matthew, and thanks again to everyone for joining us. As Matthew mentioned, we continued the momentum from our first quarter, saw less headwinds from the COVID pandemic than previously anticipated and delivered another outstanding quarter with strengths in multiple areas of the business.

謝謝你，馬修，再次感謝大家加入我們。正如 Matthew 提到的那樣，我們延續了第一季度的勢頭，COVID 大流行帶來的不利因素比之前預期的要少，並且在業務的多個領域實現了另一個出色的季度。

Total revenue for the second quarter grew 48% year-over-year to $99.7 million. The growth in revenue was driven by another quarter of strong customer demand both in terms of new logo acquisition as well as expansion within our existing customer base.

第二季度總收入同比增長 48% 至 9970 萬美元。收入的增長是由另外四分之一的強勁客戶需求推動的，無論是在新徽標收購方面，還是在我們現有客戶群的擴張方面。

From a geographic perspective, the U.S. represented 49% of revenue and increased 46% year-over-year. Our international business represented 51% of revenue and increased 50% year-over-year. International growth was driven primarily by EMEA, which saw record year-over-year growth of 62%, helped by new product adoption from large enterprises.

從地理角度來看，美國占收入的 49%，同比增長 46%。我們的國際業務佔收入的 51%，同比增長 50%。國際增長主要由歐洲、中東和非洲地區推動，該地區同比增長創紀錄的 62%，這得益於大型企業採用新產品。

Turning to our customer metrics. We exited the quarter with more than 3 million total free and paying customers, representing an increase of 40% year-over-year. As a reminder, beginning last quarter, we shifted to revenue-based KPIs and away from billings as the basis for our KPIs.

轉向我們的客戶指標。本季度結束時，我們的免費和付費客戶總數超過 300 萬，同比增長 40%。提醒一下，從上個季度開始，我們轉向基於收入的 KPI，並不再以賬單作為我們 KPI 的基礎。

We added a record number of large and paying customers in the second quarter on both a sequential and year-over-year basis. We added roughly 7,000 paying customers in the second quarter, bringing the total number of paying customers to over 96,000. We added more than 80 large customers sequentially, ending the quarter with 637 paying customers with greater than $100,000 in annualized revenue, which is up 65% year-over-year. Roughly half of the 637 large customers have been on the platform for more than a year and the other half for less than 1 year.

我們在第二季度連續和同比增加了創紀錄數量的大客戶和付費客戶。我們在第二季度增加了大約 7,000 名付費客戶，使付費客戶總數超過 96,000 名。我們依次增加了 80 多個大客戶，本季度末有 637 個年化收入超過 100,000 美元的付費客戶，同比增長 65%。在 637 家大客戶中，大約一半已在該平台上線一年以上，另一半則不到 1 年。

Our second quarter dollar-based net retention was 115%, which decreased 2% sequentially and 7% year-over-year. The decline was primarily driven by nonstrategic accounts in Asia Pacific that churned off our platform. Outside of the Asia Pacific region, overall expansion in the quarter from large enterprise customers was strong with 9 of our top 10 deals in terms of new ACV coming from existing accounts.

我們第二季度基於美元的淨保留率為 115%，環比下降 2%，同比下降 7%。下降的主要原因是亞太地區的非戰略客戶流失了我們的平台。在亞太地區以外，本季度大型企業客戶的整體擴張勢頭強勁，新 ACV 前 10 大交易中有 9 筆來自現有客戶。

A meaningful number of large expansion deals came from customers that haven't yet been on the platform for a year, and therefore, have yet to contribute to dollar net retention. We view this as a healthy indication of our ability to expand our new customers quickly and expect this trend to continue into the second half of 2020.

相當數量的大型擴張交易來自尚未使用該平台一年的客戶，因此尚未對美元淨保留做出貢獻。我們認為這是一個健康的跡象，表明我們有能力快速擴大新客戶，並預計這一趨勢將持續到 2020 年下半年。

Second quarter gross margin was 76.8%, down 150 basis points sequentially and 130 basis points year-over-year, which is in line with the expectations we shared last quarter and our long-term target of 75% to 77%. We have been able to absorb Internet traffic levels 30% to 40% higher than pre-COVID without a significant impact to gross margin.

第二季度毛利率為 76.8%，環比下降 150 個基點，同比下降 130 個基點，這符合我們上季度的預期以及我們 75% 至 77% 的長期目標。我們已經能夠吸收比 COVID 之前高出 30% 到 40% 的互聯網流量水平，而不會對毛利率產生重大影響。

Turning to operating expenses. We remain focused on building a long-term business with sustainable growth while improving the operating leverage in our business. Second quarter operating expenses as a percentage of revenue decreased 8% sequentially and 20% year-over-year to 86%. As Matthew mentioned, we achieved record hiring in the second quarter with a focus on key geographies like Austin and Lisbon, increasing our headcount by 44% year-over-year and bringing our total number of employees to 1,535 at the end of the quarter.

轉向運營費用。我們仍然專注於建立可持續增長的長期業務，同時提高我們業務的經營槓桿。第二季度運營費用佔收入的百分比環比下降 8%，同比下降 20% 至 86%。正如 Matthew 提到的，我們在第二季度實現了創紀錄的招聘，重點放在奧斯汀和里斯本等關鍵地區，員工人數同比增長 44%，使我們的員工總數在本季度末達到 1,535 人。

Sales and marketing expenses were $47.4 million for the quarter, representing an increase of 9% sequentially and 33% year-over-year. Sales and marketing as a percentage of revenue remained flat at 48% sequentially and decreased 5% year-over-year. To add to what Matthew mentioned, we had a record quarter in terms of sales hiring, including quota-bearing reps, which is important as we look out to fiscal year '21.

本季度銷售和營銷費用為 4740 萬美元，環比增長 9%，同比增長 33%。銷售和營銷佔收入的百分比環比持平於 48%，同比下降 5%。除了 Matthew 提到的內容之外，我們在銷售招聘方面創下了創紀錄的季度，包括配額代表，這對於我們展望 21 財年非常重要。

Research and development expenses were $21.3 million in the quarter, representing an increase of 4% sequentially and 15% year-over-year. R&D as a percentage of revenue decreased to 21% from 22% last quarter and 27% in the same quarter last year. We've seen excellent progress building out our Lisbon office, which we expect to contribute to long-term R&D leverage.

本季度研發費用為 2130 萬美元，環比增長 4%，同比增長 15%。研發佔收入的百分比從上一季度的 22% 和去年同期的 27% 下降至 21%。我們在里斯本辦事處的建設方面取得了出色的進展，我們希望它能為長期的研發槓桿做出貢獻。

G&A expenses were $17.4 million for the quarter, representing a decrease of 21% sequentially and constant year-over-year. The sequential decrease was primarily driven by lower-than-expected bad debt expense and a reduction in events and office expenses. G&A as a percentage of revenue was 17%, representing a decrease of 7% sequentially and 8% year-over-year.

本季度的 G&A 費用為 1740 萬美元，環比下降 21%，同比下降。環比下降主要是由於壞賬費用低於預期以及活動和辦公費用的減少。 G&A 佔收入的百分比為 17%，環比下降 7%，同比下降 8%。

We continue to see operating leverage in the business as operating margin improved by over 1,800 basis points year-over-year and 600 basis points sequentially. Operating loss was $9.5 million in the second quarter compared to $18.7 million in the same period last year. We accelerated hiring in the second quarter in order to remain on track to achieve full year hiring plans and as such, expect to see variations in the magnitude of operating leverage going forward.

我們繼續看到該業務的經營槓桿，因為營業利潤率同比提高了 1,800 多個基點，環比提高了 600 個基點。第二季度營業虧損為 950 萬美元，而去年同期為 1870 萬美元。我們在第二季度加快了招聘速度，以保持實現全年招聘計劃的軌道，因此，預計未來經營槓桿的幅度會發生變化。

Net loss in the quarter was $9.6 million or net loss per share of $0.03. Our effective tax rate for Q2 was negative 12.2%, with a strong and flexible balance sheet, ending the second quarter with $1.1 billion in cash, cash equivalents and available-for-sale securities. Early in the quarter, we issued a $575 million convertible note offering with total net proceeds of $562 million. In connection with the offering, we bought a capped call with 100% premium in order to protect our common shareholders from dilution.

本季度淨虧損為 960 萬美元或每股淨虧損 0.03 美元。我們第二季度的有效稅率為負 12.2%，擁有強大而靈活的資產負債表，第二季度末現金、現金等價物和可供出售證券為 11 億美元。本季度初，我們發行了 5.75 億美元的可轉換票據，募集資金淨額總額為 5.62 億美元。關於此次發行，我們以 100% 的溢價購買了有上限的看漲期權，以保護我們的普通股股東免受稀釋。

Second quarter free cash flow was negative $20.2 million or 20% of revenue compared to negative $16.9 million or 25% of revenue in the same period last year. Operating cash flow was positive $4 million in the second quarter. The improvement was primarily due to greater profitability and improved working capital helped by strong collections. Our DSOs remained well within the historical range, which we view as encouraging against the recessionary environment. We expect to see variability in operating cash flow due to ongoing fluctuations in working capital and the growth in our enterprise business.

第二季度自由現金流為負 2020 萬美元，佔收入的 20%，而去年同期為負 1690 萬美元，佔收入的 25%。第二季度經營現金流為正 400 萬美元。改善主要是由於強大的收款幫助提高了盈利能力和改善了營運資金。我們的 DSO 保持在歷史範圍內，我們認為這對經濟衰退的環境來說是令人鼓舞的。由於營運資金的持續波動和我們企業業務的增長，我們預計經營現金流會出現變化。

Before moving to guidance for the third quarter and full year, I would like to provide an update on the COVID-related impacts and associated provisions we shared last quarter. Last quarter, we disclosed that customers highly affected by COVID-related challenges, particularly those in macro-sensitive industries such as transportation, hospitality and retail, represented approximately 8% of our business. In the second quarter, this cohort grew mid-single digits sequentially but decreased slightly as a percent of total revenue. Customers in these industries are seeing challenges but continue to invest to build out a web presence in order to remain relevant and competitive.

在轉向第三季度和全年的指導之前，我想提供我們上個季度分享的與 COVID 相關的影響和相關規定的最新情況。上個季度，我們透露，受 COVID 相關挑戰影響很大的客戶，尤其是交通、酒店和零售等宏觀敏感行業的客戶，約占我們業務的 8%。在第二季度，這一群體的環比增長為中等個位數，但佔總收入的百分比略有下降。這些行業的客戶看到了挑戰，但繼續投資建立網絡形象，以保持相關性和競爭力。

We also disclosed last quarter that we saw customer concessions uptick in March and decline in April. We are pleased to share that second quarter contract modifications came in well below the $2 million headwind we anticipated, with these customer modification requests having trended down during the quarter to historical levels.

我們還在上個季度披露，我們看到客戶優惠在 3 月份上升，4 月份下降。我們很高興地與大家分享，第二季度的合同修改遠低於我們預期的 200 萬美元逆風，這些客戶修改請求在本季度呈下降趨勢至歷史水平。

During the quarter, we were pleased to observe a slight decrease in our sales cycle and remaining within the range we've seen historically. In addition, we also saw an uptick in our sales productivity, which improved 7% sequentially. We continue to exceed our new ACV and customer renewal targets. July has trended as planned from a net new ACV and renewals perspective. And despite the current environment, we observed a sequential increase in win rates, which returned to historical ranges. Remaining performance obligation, or RPO, ended the quarter at $274 million, up 18% quarter-over-quarter and up 58% year-over-year.

在本季度，我們很高興地看到我們的銷售週期略有下降，並保持在我們歷史上看到的範圍內。此外，我們的銷售效率也有所提高，環比提高了 7%。我們繼續超越我們新的 ACV 和客戶更新目標。從淨新 ACV 和續訂的角度來看，7 月的趨勢按計劃進行。儘管存在當前環境，但我們觀察到勝率連續上升，回到了歷史範圍。剩餘履約義務 (RPO) 本季度末為 2.74 億美元，環比增長 18%，同比增長 58%。

Although uncertainties remain in the current environment, we are confident in the continued growth of our business and the durability of our subscription model with the variable revenue continuing to be less than 5% of total revenue. Therefore, we are pleased to raise guidance, both for the third quarter as well as for the fiscal year.

儘管當前環境仍存在不確定性，但我們對業務的持續增長和訂閱模式的持久性充滿信心，可變收入繼續低於總收入的 5%。因此，我們很高興提高第三季度和本財年的指引。

For the third quarter, we expect revenue in the range of $102.5 million to $103.5 million, representing an increase of 39% to 40% year-over-year. We expect operating loss in the range of $16 million to $15 million. We expect net loss per share in the range of $0.06 to $0.05, assuming approximately 302 million common shares outstanding. And we expect an effective tax rate of negative 6.2%.

對於第三季度，我們預計收入在 1.025 億美元至 1.035 億美元之間，同比增長 39% 至 40%。我們預計營業虧損在 1600 萬至 1500 萬美元之間。我們預計每股淨虧損在 0.06 美元至 0.05 美元之間，假設流通在外的普通股約為 3.02 億股。我們預計有效稅率為負 6.2%。

For the full year 2020, we expect revenue in the range of $404 million to $408 million, representing an increase of 41% to 42% year-over-year. We expect operating loss for the full year in the range of $55 million to $53 million. We expect net loss per share over the period in the range of $0.18 to $0.17, assuming approximately 301 million common shares outstanding. We expect an effective tax rate for 2020 of negative 8.6%.

對於 2020 年全年，我們預計收入在 4.04 億美元至 4.08 億美元之間，同比增長 41% 至 42%。我們預計全年營業虧損在 5500 萬至 5300 萬美元之間。我們預計在此期間每股淨虧損在 0.18 美元至 0.17 美元之間，假設流通在外的普通股約為 3.01 億股。我們預計 2020 年的有效稅率為負 8.6%。

In closing, we are optimistic about the continued durability of our business and the efficiency of our platform. We are thankful for the resiliency of our employees, the strength of our customer relationships and overall productivity in a work-from-home environment. As such, we believe we are well positioned to execute despite these challenging times.

最後，我們對我們業務的持續耐用性和我們平台的效率持樂觀態度。我們感謝員工的韌性、強大的客戶關係以及在家工作環境中的整體生產力。因此，我們相信，儘管面臨這些充滿挑戰的時期，我們仍然有能力執行。

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

有了這個，我想打開它來提問。接線員，請投票提問。

(Operator Instructions) Your first question comes from the line of Matt Hedberg with RBC Capital Market.

（操作員說明）您的第一個問題來自 RBC Capital Market 的 Matt Hedberg。

Congrats on a really strong quarter. And certainly, it's a tough environment. That does not go unnoticed. What really stood out to me is growth in large customers. I think it was 65%. And also, Matt, you talked about record productivity and really strong new hires when others are pulling back. I guess given like these trends seem to be accelerating here, in a large enterprise expansion, does this typically mean you're displacing a legacy on-prem vendor? Or rather is this greenfield wins to support net new cloud workload?

祝賀一個非常強勁的季度。當然，這是一個艱難的環境。這不會被忽視。真正讓我印象深刻的是大客戶的增長。我認為是 65%。還有，馬特，你談到了創紀錄的生產力和當其他人退縮時真正強大的新員工。我想鑑於這些趨勢似乎在這裡加速，在大型企業擴張中，這通常是否意味著您要取代傳統的本地供應商？或者更確切地說，這個綠地是為了支持淨新的雲工作負載嗎？

Yes. Matt, thanks for the question, and thanks for the kudos. We've been really happy with our ability to close larger and larger customers. We're up to now about 16% of the Fortune 1000 are using Cloudflare. That's up from 13% in Q1. I think we see a number of different places that people come to us, but our belief is there are no new dollars in the world. And so we don't think it is a greenfield opportunity but rather traditionally that we are replacing what is usually a existing on-premise hardware-based solution as part of the digital transformation that enterprises are going through right now, whether they were planning on doing that in 2020 or not.

是的。馬特，感謝您提出問題，並感謝您的稱讚。我們對能夠關閉越來越大的客戶的能力感到非常滿意。到目前為止，我們大約有 16% 的財富 1000 強企業正在使用 Cloudflare。這高於第一季度的 13%。我認為我們看到人們來到我們這裡的許多不同地方，但我們相信世界上沒有新的美元。因此，我們不認為這是一個全新的機會，而是傳統上我們正在取代通常是現有的基於硬件的本地解決方案，作為企業目前正在經歷的數字化轉型的一部分，無論他們是否計劃是否在 2020 年這樣做。

Got it. That's helpful. And then the other thing, obviously, it's been in the news with Workers Unbound. Personally, when we talk to partners and customers alike, we think Workers could be one of just the biggest long-term opportunities you have. And you did give a lot of helpful metrics to think about this opportunity. Could you give a little bit more details about what Unbound actually means for adoption of that service? It strikes me that there's a number of positives there. You highlighted some of them, but just maybe a little bit more details on Unbound.

知道了。這很有幫助。然後另一件事，很明顯，它已經出現在 Workers Unbound 的新聞中。就個人而言，當我們與合作夥伴和客戶交談時，我們認為 Workers 可能是您擁有的最大的長期機會之一。你確實提供了很多有用的指標來考慮這個機會。您能否詳細說明 Unbound 對於採用該服務意味著什麼？令我印象深刻的是，那裡有許多積極因素。你強調了其中的一些，但可能只是關於 Unbound 的更多細節。

Yes. When -- so we've had an edge computing offering in the market now for nearly 3 years. And I think over that period of time, we've learned a lot about what developers really want from a computing platform. And I think that when you and I spoke 3 years ago, I probably talked about powering IoT devices and driverless cars and how being faster was really the killer feature for that edge computing product. I think what we've learned over the last 3 years is that actually, when developers think about what they're doing, one of the terms in computer science is that you don't want to have premature optimization that, that's actually a real mistake.

是的。什麼時候 - 所以我們現在已經在市場上提供了近 3 年的邊緣計算產品。而且我認為在那段時間裡，我們已經了解了很多關於開發人員真正想要從計算平台獲得什麼的知識。我想當你和我在 3 年前交談時，我可能談到了為物聯網設備和無人駕駛汽車提供動力，以及速度如何真正成為邊緣計算產品的殺手級功能。我認為我們在過去 3 年中學到的是，實際上，當開發人員考慮他們正在做的事情時，計算機科學中的一個術語是你不想過早優化，這實際上是一個真正的錯誤。

And so fast is great, but if you think of it as sort of the Maslow's hierarchy of developers' needs, fast is like self-actualization. It's the last thing that you get, not the first. And so what we are really building with Unbound is something that is just an edge computing platform, which we think are going to be largely niche applications. But instead, think of it as a true serverless application that can provide a number of different functions.

如此之快固然很棒，但如果您將其視為某種馬斯洛的開發人員需求層次結構，那麼快速就像是自我實現。這是你得到的最後一件事，而不是第一件事。因此，我們真正用 Unbound 構建的只是一個邊緣計算平台，我們認為這將主要是利基應用程序。但相反，將其視為可以提供許多不同功能的真正的無服務器應用程序。

And the one that I think is the most interesting and encouraging for us, and we think it's just an enormous opportunity, is around something that's incredibly boring in some respects, which is compliance. As we have more and more countries around the world requiring data localization and keeping their customers -- keeping their citizens' data inside the borders of their countries, that's where you need a network like Cloudflare.

我認為對我們來說最有趣和最鼓舞人心的是，我們認為這只是一個巨大的機會，它圍繞著在某些方面非常無聊的事情，即合規性。隨著世界上越來越多的國家需要數據本地化並保持他們的客戶——將他們公民的數據保存在他們國家的邊界內，這就是你需要像 Cloudflare 這樣的網絡的地方。

And the fact that today we're already in more than 100 countries around the world, and you can, as a developer, write to one platform and be in compliance with those increasingly complicated requirements, I think that's going to be a really very large opportunity for us. And that's what we're hearing from the largest customers that are interested in Unbound.

事實上，今天我們已經在全球 100 多個國家/地區開展業務，作為開發人員，您可以寫入一個平台並遵守那些日益複雜的要求，我認為這將是一個非常大的我們的機會。這就是我們從對 Unbound 感興趣的最大客戶那裡聽到的。

And your next question comes from the line of James Fish with Piper Sandler.

你的下一個問題來自 James Fish 和 Piper Sandler 的台詞。

Congrats on the quarter and appreciate the details on Workers there this quarter, Matthew, and the color on the call, Thomas. In our checks heading into the quarter, we were able to have a lot more conversations than normal regarding Cloudflare who we typically don't see as much really channel ads. In fact, you guys even disclosed how much is coming from indirect sources. But can you talk about how your go-to-market is changing and what you're seeing from more the traditional channel and integrators out there, including between landing net new customers versus expansion?

祝賀本季度，並感謝本季度 Matthew 的 Workers 和 Thomas 的顏色。在我們進入本季度的檢查中，我們能夠進行比平時更多的關於 Cloudflare 的對話，而我們通常看不到真正的頻道廣告。事實上，你們甚至透露了有多少來自間接來源。但是你能談談你的上市方式是如何變化的嗎？你從更多的傳統渠道和集成商那裡看到了什麼，包括登陸新客戶與擴張之間的關係？

Yes. I think that channel is something where we see a lot of opportunity for us to continue to grow and improve. We continue to move up market, and we're working with partners that can help us do that. And I think there are 2 areas that I'm particularly excited about. One of the things that was difficult about the channel for us in the beginning was we made Cloudflare so easy to sign up for. It wasn't clear what value a reseller could add as a value-added reseller. And so I think that was a trickier place for us.

是的。我認為這個渠道是我們看到很多機會讓我們繼續成長和改進的地方。我們繼續提升市場，我們正在與可以幫助我們做到這一點的合作夥伴合作。我認為有兩個領域讓我特別興奮。一開始對我們來說，這個頻道的困難之一是我們讓 Cloudflare 變得如此容易註冊。不清楚經銷商作為增值經銷商可以增加什麼價值。所以我認為這對我們來說是一個更棘手的地方。

With products like Workers, what we're increasingly seeing is channel partners that have real specialty in certain areas being able to really bring real value and develop IP on our platform that they can then sell over and over and over again. And so I think it's still early days of that, but we're seeing that from large partners like an IBM and other system integrators that are able to deliver that and really seeing value across our platform.

對於像 Workers 這樣的產品，我們越來越多地看到，在某些領域具有真正專長的渠道合作夥伴能夠真正帶來真正的價值並在我們的平台上開發 IP，然後他們可以一遍又一遍地銷售。所以我認為現在還處於早期階段，但我們已經從 IBM 和其他系統集成商等大型合作夥伴那裡看到了這一點，它們能夠提供這一點，並真正看到我們平台的價值。

I think the second thing is that the Cloudflare for Teams suite, if you look at other companies that have cloud-based zero trust solution, a lot of them have gone to market through channel partners. And so I think we are taking that and putting that as an extra tool in the bags of those channel partners. And I think that's going to be an opportunity for us to really build a relationship with those partners and then hopefully educate them over time to sell the full suite of Cloudflare products.

我認為第二件事是 Cloudflare for Teams 套件，如果你看看其他擁有基於雲的零信任解決方案的公司，他們中的很多人都是通過渠道合作夥伴進入市場的。所以我認為我們正在接受它並將其作為一種額外的工具放在那些渠道合作夥伴的包裡。我認為這將是我們與這些合作夥伴真正建立關係並希望隨著時間的推移教育他們銷售全套 Cloudflare 產品的機會。

And then, Matthew, just to kind of follow up. Obviously, there's a lot of political news out there going on. But can you kind of help us frame up if we shouldn't expect any impact related to any of the bans that are going on to your business? More related to you guys, do you have a larger China presence, including a couple of large China relationships? I guess how are you guys thinking about that for the back half of the year potentially?

然後，馬修，只是想跟進一下。顯然，那裡有很多政治新聞。但是，如果我們不應該期望任何與您的業務相關的任何禁令相關的影響，您能幫我們制定框架嗎？與你們更相關，你們在中國有更大的影響力，包括幾個大型中國關係嗎？我想你們是如何考慮下半年的可能的？

So that's something that we're following closely. And obviously, we don't have a crystal ball in terms of how those relations develop. On a pure metrics basis, China revenue is low single digits for us, much less than 5% of total revenue. And so that's -- even in the worst-case scenario, we don't see that as a significant change in our business.

所以這是我們正在密切關注的事情。顯然，就這些關係如何發展而言，我們沒有水晶球。從純粹的指標來看，中國收入對我們來說是低個位數，遠低於總收入的 5%。因此，即使在最壞的情況下，我們也不認為這是我們業務的重大變化。

What I think is more important is that long-term strategy of the United States, we sell more as a U.S. company to the Chinese market. And so we actually think that by being the infrastructure that helps U.S. companies better sell to the Chinese market, we actually think that's aligned with the long-term interest actually on both sides of the political -- both sides of the Pacific Ocean. And so far, we haven't seen anything that makes us suspect that we will be -- face unusual challenges. But even if we do, again, it's a small part of our business.

我認為更重要的是美國的長期戰略，我們作為美國公司向中國市場銷售更多產品。因此，我們實際上認為，通過成為幫助美國公司更好地向中國市場銷售的基礎設施，我們實際上認為這符合政治雙方——太平洋兩岸的長期利益。到目前為止，我們還沒有看到任何讓我們懷疑我們將面臨不尋常挑戰的事情。但即使我們這樣做了，這也只是我們業務的一小部分。

Your next question comes from the line of Sterling Auty with JPMorgan.

你的下一個問題來自摩根大通的 Sterling Auty 系列。

This is Drew on for Sterling. You kind of touched on this a bit, but I was just wondering if you could provide some more color on how the China opportunity is ramping, particularly with the JD Cloud data center addition and what kind of demand you're seeing in that region.

這是斯特林的德魯。你稍微談到了這一點，但我只是想知道你是否可以提供更多關於中國機會如何增加的顏色，特別是京東雲數據中心的增加以及你在該地區看到什麼樣的需求。

Yes. So we continue to see demand from Chinese companies -- or let me say it differently. I think there are 2 different directions that we're seeing demand. So one is from Chinese companies, which are trying to sell outside of China. And the second is for U.S. companies that want to sell into China. I think the former of those, we've seen continued strength in. I think there's a little bit of uncertainty around the latter. But again, it's been a relatively small piece of our business.

是的。因此，我們繼續看到來自中國公司的需求——或者讓我換個說法。我認為我們看到需求有兩個不同的方向。所以一個來自中國公司，他們正試圖在中國以外的地方銷售。第二個是針對想要向中國銷售產品的美國公司。我認為前者，我們已經看到了持續的強勢。我認為後者存在一些不確定性。但同樣，這是我們業務中相對較小的一部分。

The JD Cloud partnership is going very well. We expect that, that will turn on in the first half of 2021, which is what it was on schedule for. And they have so far been a terrific partner for us. And the same is true of Baidu. They've now been a partner for us for over 5 years, and again, we think that it's very much aligned in being the infrastructure that can help more companies sell into China. And we think that, that's been a very unique opportunity that we can provide to the market.

京東雲合作夥伴關係進展順利。我們預計，這將在 2021 年上半年啟動，這是按計劃進行的。到目前為止，他們一直是我們的絕佳合作夥伴。百度也是如此。他們現在已經成為我們的合作夥伴超過 5 年了，我們再次認為，它在成為可以幫助更多公司進入中國銷售的基礎設施方面非常一致。我們認為，這是我們可以為市場提供的一個非常獨特的機會。

Our next question comes from the line of Phil Winslow with Wells Fargo.

我們的下一個問題來自 Phil Winslow 與 Wells Fargo 的對話。

Congrats on another great quarter. I actually just have 2 of them. First, one of the things you talked about is how customers benefit from the new products without changing their infrastructure just because of the way that your network is built. When you think about, I guess, the tipping point, especially sort of in a COVID world of having sort of multiple functions from Cloudflare, are you starting to see adoption of more functions because of the COVID world? How are you thinking about that tipping point? And then just have one follow-up to that.

祝賀又一個偉大的季度。實際上我只有兩個。首先，您談到的其中一件事是客戶如何從新產品中受益，而無需僅僅因為您的網絡構建方式而改變他們的基礎設施。我猜，當你想到臨界點時，尤其是在 COVID 世界中具有 Cloudflare 的多種功能時，你是否開始看到由於 COVID 世界而採用更多功能？你如何看待這個臨界點？然後就此進行後續跟進。

Yes. I think our strategy from the beginning has been how can we get customers onto our network, how can we get traffic flowing through our network, learn from what that is and then help migrate customers to use more and more of our platform. And so we -- I think we are seeing that in 2 directions.

是的。我認為我們的戰略從一開始就是我們如何讓客戶進入我們的網絡，我們如何讓流量流經我們的網絡，從中學習是什麼，然後幫助遷移客戶以使用越來越多的我們的平台。所以我們 - 我認為我們在兩個方向上看到了這一點。

One is we are technically able to recommend other products to customers. So a very consistent play that we're running right now is we may be helping somebody with their basic firewall application, but we see that they are experiencing a lot of automated bot traffic. We can do analysis on that bot traffic and then recommend that as an additional solution to them. And so that is helping us expand across those customers.

一是我們在技術上能夠向客戶推薦其他產品。所以我們現在正在運行的一個非常一致的遊戲是我們可能正在幫助一些人使用他們的基本防火牆應用程序，但我們看到他們正在經歷大量的自動化機器人流量。我們可以對該機器人流量進行分析，然後將其作為附加解決方案推薦給他們。因此，這有助於我們擴展這些客戶。

The second part is much less technical but just simply that we've really built trust as a provider that offers an enormous and very compelling return on the investments that they've made. And so that allows us, with that trust, to go back to them, get introductions inside of the organization, let our sales team move laterally and build much more long-term and dynamic relationship-driven sales. And so we really think that the secret of Cloudflare is that 1 plus 1 equals 3, and I think that what you're seeing in the market and what you're seeing from our customers is that we're seeing that same pattern happen over and over again.

第二部分的技術性要低得多，而只是簡單地說，我們真正建立了作為提供商的信任，為他們所做的投資提供了巨大且非常引人注目的回報。這樣一來，我們就可以帶著這種信任回到他們身邊，在組織內部進行介紹，讓我們的銷售團隊橫向移動，建立更長期、更有活力的關係驅動銷售。所以我們真的認為 Cloudflare 的秘密是 1 加 1 等於 3，我認為你在市場上看到的和你從我們的客戶那裡看到的是我們看到同樣的模式發生了又一遍。

One thing that's been really interesting has been how quickly that's happening. And I think a little bit of that might be coming due to COVID, where we are oftentimes now having a customer land with one product, and then as Thomas said, sometimes just the very next quarter, expand with an additional product. And so we're seeing really strong adoption and really strong expansion. That doesn't necessarily always happen over multiple years though. And so I think that that's, in some ways, why we actually internally see a much stronger expansion than you might see in something like that dollar-based net retention statistic.

真正有趣的一件事是這種情況發生的速度有多快。而且我認為其中一點可能是由於 COVID，我們現在經常有一個客戶登陸一個產品，然後正如 Thomas 所說，有時就在下一個季度，擴展一個額外的產品。因此，我們看到了非常強勁的採用和非常強勁的擴張。不過，這不一定總是發生多年。所以我認為，在某些方面，這就是為什麼我們實際上在內部看到的擴張比你在基於美元的淨保留統計數據中看到的要強得多。

Got it. Great. And then just one follow-up. Obviously, nobody loves Workers more than us, but I want to talk about 2 of your other new products. Magic Transit and Teams. For Teams, wondering if you could give us a sense of just how many customers or just users you're up to now with Teams? And then also Magic Transit, just sort of any update there on the progress?

知道了。偉大的。然後只是一個跟進。顯然，沒有人比我們更愛 Workers，但我想談談你們的其他 2 款新產品。神奇的交通和團隊。對於 Teams，想知道您是否可以讓我們了解您現在使用 Teams 的客戶數量或用戶數量？然後還有 Magic Transit，關於進展的任何更新？

Yes. So with Teams, we haven't disclosed exactly how many customers we have on the platform. That's sold on a seats basis, but we have been -- as we said in the last call, we've been really, really heartened by how many people we've been able to help during COVID. And we had over 2,000 companies sign up for our promotion that gave that product away through September of this year. And so we've been now reaching out to those customers and have been very encouraged by those early conversations of converting what have been on that pre-COVID plan into paying customers. And we think that Teams is one of the products that we're most excited about and will be a meaningful driver of revenue, especially in 2021.

是的。因此，對於 Teams，我們還沒有透露平台上有多少客戶。這是按席位出售的，但我們一直——正如我們在上次電話會議中所說的那樣，我們對在 COVID 期間能夠幫助多少人感到非常、非常鼓舞。我們有超過 2,000 家公司報名參加我們的促銷活動，該促銷活動一直持續到今年 9 月。因此，我們現在一直在接觸這些客戶，並且對那些將 COVID 前計劃中的內容轉化為付費客戶的早期對話感到非常鼓舞。我們認為 Teams 是我們最興奮的產品之一，並將成為有意義的收入驅動因素，尤其是在 2021 年。

The Magic Transit, it really is one of those sleeper products that's taken off. And one of the announcements that we had earlier this week is that you can now directly interconnect your network directly into ours. And so I think, watch that space. We're getting larger and larger wins, and that is more deeply integrating us into the infrastructure of our customers, which we think makes Cloudflare a very sticky product and allows us to provide more solutions to our customers over the long term.

Magic Transit，它確實是那些脫穎而出的臥舖產品之一。本週早些時候我們發布的公告之一是您現在可以將您的網絡直接互連到我們的網絡。所以我想，注意那個空間。我們獲得的勝利越來越大，這使我們更深入地融入客戶的基礎設施，我們認為這使 Cloudflare 成為一個非常有粘性的產品，並使我們能夠長期為客戶提供更多的解決方案。

Your next question comes from the line of Alex Henderson with Needham.

你的下一個問題來自 Alex Henderson 與 Needham 的對話。

So I wanted to step back from the granularity of the quarter a little bit to what I think is probably the key longer-term picture. It seems pretty clear to me that with 1 billion applications growing at a 40% plus clip and with Kubernetes' orchestration going from 15% of new applications being deployed to over 50 in the next 3 years that you guys really are the best connective tissue between those applications to other applications, domain to domain and from applications to users. So in that context, how do you view this broader picture as Kubernetes' adoption accelerates?

所以我想從本季度的粒度稍微退後一步，回到我認為可能是關鍵的長期圖景。在我看來，隨著 10 億個應用程序以 40% 以上的速度增長，並且 Kubernetes 的編排在未來 3 年內從 15% 的新應用程序部署到超過 50 個，你們真的是最好的結締組織這些應用程序到其他應用程序、域到域以及從應用程序到用戶。那麼在這種情況下，隨著 Kubernetes 的採用加速，您如何看待這個更廣泛的圖景？

So internally, we're a big Kubernetes fan and a user ourselves. What I will say is that what we're hearing from developers is that even Kubernetes is really a step on sort of the journey towards developer nirvana, which is, can you get rid of having a tech ops team entirely? Can you stop having to think about the underlying infrastructure? Can you just write code and it automatically will scale up or scale down to what you are delivering? And that's really the magic of what we have built with Workers, and that's really the promise of serverless platform. And so I think you're exactly right that the fact that Cloudflare is this connective tissue as the network puts us in a very strategic relationship. But we actually think that the world beyond VM, the world beyond containers, the world beyond that kind of orchestration platform is something where an individual developer could, on their own, build a $1 billion company without ever having to have a tech ops team.

所以在內部，我們是 Kubernetes 的忠實粉絲，也是我們自己的用戶。我要說的是，我們從開發人員那裡聽到的是，即使是 Kubernetes 也確實是邁向開發人員天堂之旅的一步，也就是說，你能完全擺脫擁有技術運營團隊嗎？你能不再需要考慮底層基礎設施嗎？您是否可以只編寫代碼，它會自動按比例放大或縮小以適應您交付的內容？這真的是我們用 Workers 構建的東西的魔力，也是無服務器平台的真正承諾。因此，我認為您完全正確，因為 Cloudflare 是這種結締組織，因為網絡使我們建立了非常戰略性的關係。但我們實際上認為，在 VM 之外的世界，容器之外的世界，那種編排平台之外的世界，個人開發人員可以憑藉自己的力量建立一家價值 10 億美元的公司，而無需擁有技術運營團隊。

And I think that that's really the promise that products like AWS Lambda, the Google Cloud functions, that Azure functions are targeting. And what we're proud of is that workers is taking those workloads and being able to deliver that to developers in a way that is faster, more consistent, more cost effective, easier to use. And over time, I think it's going to be a much more compliance-friendly platform, especially as the Internet development ecosystem gets more and more complicated over time.

我認為這確實是 AWS Lambda、Google Cloud 等產品的承諾，而 Azure 功能正是針對這些產品。我們感到自豪的是，工作人員正在承擔這些工作負載，並能夠以更快、更一致、更具成本效益、更易於使用的方式將其交付給開發人員。隨著時間的推移，我認為它將成為一個更加合規友好的平台，尤其是隨著互聯網開發生態系統隨著時間的推移變得越來越複雜。

So going to the second part of the question, you're directly heading in the direction I was going, which is to the extent that Workers enable serverless and drives probably the most efficient platform for coders to move to, can you talk a little bit about why yours is better than the competition in terms of the way your platform is designed, particularly with the isolates and the near 0 cold starts and why that is so differentiated versus the competition? Because it's a critical point that you guys not only have the most open platform for the way you're writing it, i.e., you're not just doing, say, one language like Varnish but rather than doing all the programming languages the customers, i.e., the coders want and have at the same time a platform that delivers exceptional security and very fast performance on the edge.

所以進入問題的第二部分，你直接朝著我要去的方向前進，即 Workers 啟用無服務器和驅動器可能是編碼人員遷移到的最有效平台的程度，你能談談嗎關於為什麼您的平台設計方式比競爭對手更好，特別是隔離和接近 0 的冷啟動，以及為什麼與競爭對手相比如此差異化？因為這是一個關鍵點，你們不僅擁有最開放的平台來編寫它，也就是說，你們不只是在做，比如說，像 Varnish 這樣的一種語言，而不是為客戶做所有的編程語言，即，編碼人員希望並同時擁有一個平台，該平台可在邊緣提供卓越的安全性和非常快的性能。

Yes. When I was a network administrator back in the early '90s at my college, when we wanted to turn up a new application, we had to actually physically buy a new server. And at the time, we actually bought servers from Gateway and I think cow-covered boxes were fun. And the time to turn up a new application took a lot of time. And then along came VMware and virtual machine. And what that allowed was multiple different applications to run on a single machine, and that gave rise to the very first cloud providers that were out there.

是的。上世紀 90 年代初，當我在我的大學擔任網絡管理員時，當我們想要啟動一個新應用程序時，我們不得不實際購買一台新服務器。當時，我們實際上是從 Gateway 購買服務器的，我認為牛皮箱很有趣。而且打開新應用程序的時間花費了很多時間。然後是 VMware 和虛擬機。這使得多個不同的應用程序可以在一台機器上運行，這催生了第一批雲提供商。

But even virtual machines had a lot of overhead as they ran. So that's where you had companies like dotCloud, which became Docker, and the real revolution in containers, which were a lighter-weight version of a virtual machine. The goal here is always to make sure that you can run code in a secure, safe, multi-tenant environment and containers with a slightly lighter-weight version. And that's what most of the serverless platforms out there today are building on top of, are those containers. And the downside of that is that those containers, when you have to scale up, it takes a lot of time. So for example, with something like AWS Lambda, it will automatically spin up another machine or with another container when there is load that demands it. But the problem is that it can take hundreds of milliseconds up to seconds for that application to be ready. And that inconsistency is a really bad experience for users, which is really the knock on a lot of these serverless platforms that are out there today.

但即使是虛擬機在運行時也會有很多開銷。所以這就是 dotCloud 這樣的公司，它變成了 Docker，以及真正的容器革命，它是虛擬機的輕量級版本。這裡的目標始終是確保您可以在安全、安全、多租戶的環境和容器中運行代碼，並使用稍微輕量級的版本。這就是當今大多數無服務器平台構建的基礎，就是那些容器。缺點是那些容器，當你必須擴大規模時，會花費很多時間。因此，例如，使用 AWS Lambda 之類的東西，它會在有負載需要時自動啟動另一台機器或另一個容器。但問題是該應用程序可能需要數百毫秒到幾秒才能準備就緒。這種不一致對用戶來說是一種非常糟糕的體驗，這確實是當今許多這些無服務器平台的敲門磚。

What we realized was that in order to make Workers as powerful as we wanted it to be, we needed to make it a platform that was even more efficient than what you could get with containers. And that's why we moved to a technology called isolates. And so isolates are just the next generation, and it gives us some real advantages. It means we can have literally -- we announced last week 0 microsecond, 0 nanosecond cold start times where your application is ready the minute you want to run it. It means we can support a wide variety of different languages. We don't require developers to have to learn our language. We want to go to them, not have them come to us. And I think one of the really important things is that data efficiency has actually allowed us to price the product in a way which is incredibly competitive, again, as much as 75% less expensive than AWS Lambda for the exact same workloads. And that means that -- and the reason we can do that is because we just have much less overhead. So we think that this is the next step and the next generation in the same way that VMs were a revolution from bare metal and containers were a revolution from VMs. We think containers are the -- excuse me, isolates are the step. And that's what powers Workers, and that's how we can be as efficient and flexible as we've been able to become.

我們意識到，為了讓 Workers 像我們希望的那樣強大，我們需要讓它成為一個比容器更高效的平台。這就是為什麼我們轉向一種稱為隔離的技術。所以分離株只是下一代，它給了我們一些真正的優勢。這意味著我們可以從字面上看——我們上周宣布了 0 微秒、0 納秒的冷啟動時間，您的應用程序在您想要運行它的那一刻就準備好了。這意味著我們可以支持多種不同的語言。我們不要求開發人員必須學習我們的語言。我們想去找他們，而不是讓他們來找我們。我認為真正重要的事情之一是數據效率實際上讓我們能夠以一種極具競爭力的方式為產品定價，同樣，對於完全相同的工作負載，它比 AWS Lambda 便宜 75%。這意味著——我們之所以能夠這樣做，是因為我們的開銷要少得多。所以我們認為這是下一步和下一代，就像 VM 是裸機的革命，容器是 VM 的革命一樣。我們認為容器是——對不起，隔離是步驟。這就是 Workers 的力量，這就是我們如何能夠像我們已經能夠成為的那樣高效和靈活。

So if I could just follow just one last point on that. So as (inaudible) microservices out consistently and constantly, those cold starts are very frequent. So that would mean that it's a -- it has to happen that way in order to have the CI/CD pipeline work in that environment, right? Is that the right conclusion?

所以，如果我可以只關注最後一點。因此，隨著（聽不清）微服務持續不斷地出現，這些冷啟動非常頻繁。所以這意味著它是 - 它必須以這種方式發生才能使 CI/CD 管道在該環境中工作，對嗎？這是正確的結論嗎？

I think that's right. And I think that actually, as you distribute, we think that the distributed nature of building this into the network is good because it makes it faster by reducing network latency. But if we hadn't been able to reduce cold starts down that far, then we wouldn't -- then you have more -- it's spread -- the load is spread across more machines, which makes that a worse and worse problem.

我認為這是對的。而且我認為實際上，當你分發時，我們認為將其構建到網絡中的分佈式特性是好的，因為它通過減少網絡延遲使其更快。但是，如果我們不能將冷啟動減少那麼多，那麼我們就不會——然後你會有更多——它會分散——負載分散在更多的機器上，這使得這個問題變得越來越糟糕。

So by solving that, I think we have overcome one of the biggest limitations of an edge computing platform. And again, this isn't a beta. This isn't vaporware. This isn't something -- this is something that, last quarter, 22,000 developers wrote their first Workers application on. And it's just been really amazing to watch it develop in the market over the last 3 years.

因此，通過解決這個問題，我認為我們已經克服了邊緣計算平台的最大限制之一。再一次，這不是測試版。這不是汽具。這不是什麼東西——上個季度，22,000 名開發人員在上面編寫了他們的第一個 Workers 應用程序。在過去的 3 年裡，看到它在市場上的發展真是太棒了。

Thanks, Alex. Operator can we move on to the next analyst, please.

謝謝，亞歷克斯。接線員，我們可以轉到下一位分析師嗎？

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

你的下一個問題來自 Brent Thill 與 Jefferies 的合作。

Just back in the enterprise momentum, I'm just curious if you could give us your view in the back half of the year and how that pipeline is shaping up. And Matthew, what are you hearing as kind of the biggest constraint right now for you to open up the enterprise even more than you have today? What key things do you need to pass through to really make this move quick?

剛剛回到企業發展勢頭，我很好奇你能否在今年下半年給我們你的看法，以及這條管道是如何形成的。 Matthew，你聽說現在對你開辦企業的最大限制是什麼？您需要通過哪些關鍵事項才能真正加快這一舉措？

Yes. I'm going to let -- I'll answer the second half of the question, and then I'll let Thomas talk through a little bit of what we're seeing in terms of backlog. So I think that our strategy, when we launched from the beginning, was to start at the low end and move up over time. And I think we've done that incredibly well with well over 600 now customers that are paying us over $100,000 a year, 16% of the Fortune 1000, and taking off a lot of the requirement that those larger, more sophisticated customers are requiring in terms of compliance and other features that a more sophisticated customer has. And so I really think that we have proven that we can land those largest of the large customers. We're building the case studies around that. And I think that you'll see more and more of the largest enterprises in the world adopting Cloudflare. They may start on just one of our products. But again, I think we've demonstrated that once we have someone using any part of our platform, we can expand that over time.

是的。我要讓——我會回答問題的後半部分，然後我會讓 Thomas 談談我們在積壓方面看到的一些情況。所以我認為我們的策略，當我們從一開始就推出時，是從低端開始，然後隨著時間的推移向上移動。而且我認為我們已經做得非常好，現在有 600 多個客戶每年向我們支付超過 100,000 美元，佔財富 1000 強的 16%，並且取消了那些更大、更複雜的客戶在更老練的客戶擁有的合規條款和其他功能。所以我真的認為我們已經證明我們可以吸引那些最大的大客戶。我們正在圍繞它構建案例研究。我認為您會看到世界上越來越多的大型企業採用 Cloudflare。他們可能只從我們的一種產品開始。但同樣，我認為我們已經證明，一旦有人使用我們平台的任何部分，我們就可以隨著時間的推移對其進行擴展。

Thomas, you want to talk about backlog?

托馬斯，你想談談積壓嗎？

Yes. So we've seen really strong performance from a new ACV generation perspective there. The sales team has done an outstanding job. And because of that, our backlog and core RPO has gone up 18% quarter-over-quarter, 58% year-over-year. And that means that from a guidance perspective, 75% of the third quarter is already rolling off the balance sheet. We also think that the strong momentum we have seen on large expansion deals -- I mentioned in my script that 9 out of the 10 large deals were expansion deals with existing customers. If we look at our pipeline, we think that trend is also going to continue for the second half of 2020.

是的。因此，從新一代 ACV 的角度來看，我們已經看到了非常強勁的表現。銷售團隊做得非常出色。正因為如此，我們的積壓訂單和核心 RPO 環比增長 18%，同比增長 58%。這意味著從指導的角度來看，第三季度的 75% 已經從資產負債表中滾出。我們還認為，我們在大型擴張交易中看到的強勁勢頭——我在腳本中提到，10 筆大型交易中有 9 筆是與現有客戶的擴張交易。如果我們看看我們的管道，我們認為這種趨勢也將持續到 2020 年下半年。

Your next question comes from the line of Shaul Eyal with Oppenheimer.

你的下一個問題來自 Shaul Eyal 與 Oppenheimer 的對話。

Congrats on my end as well with respect to the quarterly performance and guidance. A question for Thomas. And it might be correlated, building on the prior question. I'm trying to get a sense with respect to guidance, just directionally. Clearly, last quarter, it was what appears to be playing more defense on all fronts. Pandemic just kicked off. You kept your guidance intact mostly. But this quarter, we are getting a beat and a raise. Those of us working with you historically in prior positions recall your thoughtfulness on guidance. One might even say conservatism level. Just trying to gauge an understanding and maybe some sort of compare/contrast with you on guidance this quarter versus the prior. And I have a follow-up.

也祝賀我的季度業績和指導。托馬斯的問題。它可能是相關的，建立在先前的問題之上。我試圖了解指導，只是方向性的。顯然，上個季度，這支球隊似乎在各個方面都加強了防守。大流行剛剛開始。你基本上保持了你的指導。但是這個季度，我們得到了突破和加薪。我們這些曾在以前的職位上與您共事過的人都記得您對指導的深思熟慮。甚至可以說是保守主義水平。只是試圖衡量一種理解，並可能與您就本季度的指導與之前的指導進行某種比較/對比。我有一個後續行動。

Yes. Thanks for the question. We wouldn't call it conservative. We would call it prudent. And you're right, the guidance last quarter was -- there was a lot more uncertainty out there. And we were very openly communicating that we wanted to keep the hands on the steering wheel, as Matthew called it, making sure that we show that we're in control of our business. We think we were. And the guidance was about protecting the downsides of us leaning in and reiterating guidance for the year.

是的。謝謝你的問題。我們不會稱之為保守。我們稱之為審慎。你是對的，上個季度的指導是——那裡有更多的不確定性。正如馬修所說，我們非常公開地表示我們希望把手放在方向盤上，以確保我們表明我們在控制我們的業務。我們認為我們是。該指南是關於保護我們傾向於並重申這一年的指導的不利因素。

For this quarter, we have a lot more data points. We finished the second quarter that is very strong. We have good insight into our pipeline. We have good visibility, what is going to roll off from a balance sheet perspective. So there's less uncertainty from what we can control. We've seen significantly less headwinds from a concession and from a bad debt perspective. And so that allowed us to maybe lean in a bit more.

對於本季度，我們有更多的數據點。我們完成了非常強勁的第二季度。我們對我們的管道有很好的洞察力。我們有很好的能見度，從資產負債表的角度來看將會發生什麼。因此，我們可以控制的不確定性較小。從讓步和壞賬的角度來看，我們看到的不利因素要少得多。因此，這讓我們可以更深入一點。

But still, despite all that, there's still a huge amount of uncertainty out there. So we updated our models and we ran our simulations. And I would call it prudent, still prudent, but in light of a lot more data points we have and a lot more visibility we have, what pipeline and customer momentum is -- looks like for the second half.

但是，儘管如此，仍然存在大量的不確定性。所以我們更新了我們的模型並運行了我們的模擬。我會稱之為審慎，仍然審慎，但鑑於我們擁有更多的數據點和更多的可見性，下半年的管道和客戶勢頭是什麼。

That is fair enough. That's fair enough. And a tricky one. I don't know whether, Thomas, you want to take it, maybe Matthew. It was also -- I think I was asked maybe by Phil, but I might want to try and approach it a little differently. So the VPN access, the Team product currently given free as a public service to new users until September 1. Have you run some sort of a back-of-the-envelope analysis. What's the potential revenue you could have been generating? It doesn't have to be quantitative. So any qualitative comments there? Maybe some color on that will be highly appreciated.

這很公平。這很公平。還有一個棘手的。我不知道，Thomas，你是否想接受它，也許是 Matthew。這也是——我想我可能是被菲爾問到的，但我可能想嘗試以不同的方式處理它。因此，VPN 訪問，Team 產品目前作為一項公共服務免費提供給新用戶，直到 9 月 1 日。您是否進行了某種粗略的分析。您可能產生的潛在收入是多少？它不必是定量的。那麼有什麼定性的評論嗎？也許上面的一些顏色會受到高度讚賞。

Let me have a run at it first, and then Matthew is going to jump in. It's not like we have no paying customers on the Team product. Matthew in his script mentioned one of the oldest financial institutions in Europe that signed up for Cloudflare Access, and of course, that is a paying customer. When we talk about free, it's really the customers that we signed up when we opened it up at the beginning of the crisis. And we have looked at the conversion scenarios. It's fair to say that little of that or almost none of that, what is today free, is reflected in our guidance for the year because we want to be really considerate about how we approach that. The crisis is not done. There are a lot of customers that are still struggling and depend on us being a good business partner. So I think we will have a lot more to talk to you about when we come to our next earnings call. So -- but in terms of forecast, very little of this conversion is reflected in the forecast today.

讓我先試一試，然後 Matthew 會加入。我們的 Team 產品又不是沒有付費客戶。 Matthew 在他的腳本中提到了歐洲最古老的金融機構之一，它註冊了 Cloudflare Access，當然，那是一個付費客戶。當我們談論免費時，實際上是我們在危機初期開放時註冊的客戶。我們已經研究了轉換方案。可以公平地說，今天免費的很少或幾乎沒有反映在我們今年的指導中，因為我們想要真正考慮我們如何處理它。危機還沒有結束。許多客戶仍在苦苦掙扎，並依賴我們成為良好的業務合作夥伴。因此，我認為我們在下一次財報電話會議上將有更多內容要與您討論。所以 - 但就預測而言，這種轉換很少反映在今天的預測中。

Operator, can...

接線員，可以...

Sorry, just quickly. We're going to optimize for the doing right by our customers and for the long term. And so again, I think we're trying to be very prudent in terms of forecasting anything for those customers right now.

對不起，快點。從長遠來看，我們將為客戶的正確行為進行優化。因此，我認為我們現在正在努力非常謹慎地為這些客戶預測任何事情。

Thank you. operator can we take questions from one more analyst, please?

謝謝你。接線員我們可以再問一位分析師的問題嗎？

Yes. Your next question come from the line of James Breen with William Blair.

是的。你的下一個問題來自 James Breen 和 William Blair 的對話。

Just a couple. On the (inaudible) side, as you look at your customers, your customers growing (inaudible)

只是一對。在（聽不清）方面，當你看你的客戶時，你的客戶在增長（聽不清）

I'm sorry, you are breaking up. I think we'll jump to the next question in line.

對不起，你們要分手了。我想我們會跳到下一個問題。

Operator, can we take questions from one more analyst, please?

接線員，我們可以再請一位分析師提問嗎？

And your next question comes from the line of Pat Walravens with JMP Securities.

你的下一個問題來自 JMP Securities 的 Pat Walravens。

This is Joe Goodwin on for Pat. Can you give us an update on the size of the enterprise sales force? I believe it was around 25 or 30 perhaps not too long ago. And then just on the enterprise opportunity, what are some of the key changes you're seeing in the conversations that you're having with customers and prospects?

這是帕特的喬·古德溫。您能否向我們提供有關企業銷售人員規模的最新信息？我相信大概是在不久前的 25 或 30 歲左右。然後就企業機會而言，您在與客戶和潛在客戶的對話中看到的一些關鍵變化是什麼？

Let me take the first part and then Matthew is going to jump in, answering the second part. We are not going to give a lot of color and specific numbers. So that is developing. But you heard in the script and you heard Matthew talking about it from a hiring perspective. This was a very strong quarter for us on the sales side, especially also from a quota-carrying rep perspective.

讓我先講第一部分，然後 Matthew 將插手回答第二部分。我們不會給出很多顏色和具體數字。所以這是發展。但是你在劇本中聽到了，你聽到馬修從招聘的角度談論它。對於我們的銷售方面來說，這是一個非常強勁的季度，尤其是從配額銷售代表的角度來看。

So we are really happy with the progress we are making at building out the team and letting it scale from a headcount and from an expense perspective behind the demand curve we see. I think that was one of the unique things about our business model, is that we don't have to invest ahead of demand, but our ramp-up follows customers from a size perspective and from a geographic perspective. And we are making good progress, but we are staying true to our model, keeping our go-to-market efficient and our customer acquisition costs in line.

因此，我們對我們在組建團隊並讓它從我們看到的需求曲線背後的人數和費用角度進行擴展方面取得的進展感到非常高興。我認為這是我們商業模式的獨特之處之一，我們不必在需求之前進行投資，但我們的增長會從規模和地理角度跟隨客戶。我們正在取得良好進展，但我們仍堅持我們的模式，保持我們的上市效率和我們的客戶獲取成本。

And I think from a conversations with customers' perspective, I think that the thing that has been the most surprising, I think, to us and it's driven, I think, a little by COVID, has been that customers that traditionally have been slow to adopt the cloud from regions of the world like Europe, which has been a little bit more conservative, from areas like manufacturing and industrial, which have been a little bit slower traditionally, that we are hearing more and more of them say, okay, we get it. We really have to do this, and we can't wait any longer.

我認為，從與客戶的角度進行對話，我認為對我們來說最令人驚訝的事情是，我認為這在一定程度上是由 COVID 驅動的，因為客戶傳統上一直很慢從歐洲等世界地區採用雲，歐洲比較保守，從製造業和工業等傳統上速度較慢的地區採用雲，我們聽到越來越多的人說，好吧，我們得到它。我們真的必須這樣做，我們不能再等了。

And so I think that's been the very positive thing that we're hearing and that they really are starting to understand that Cloudflare is the next-generation network that can solve a lot of the problems that they used to have to buy boxes for. And that makes sense as part of -- and a large part of their overall digital transformation strategy.

所以我認為這是我們聽到的非常積極的事情，他們真的開始明白 Cloudflare 是下一代網絡，可以解決他們過去不得不購買盒子的許多問題。作為他們整體數字化轉型戰略的一部分，這是有道理的。

And there are no further questions at this time, and I'll turn it back over to the speakers for any closing remarks.

現在沒有其他問題了，我會把它轉回給發言人聽取任何結束語。

Just wanted to say thank you to our entire team at Cloudflare. It's been amazing to watch everyone adapt to, over the last 5 months, a remote working environment. I'm really proud of how productive everyone has remained. Thanks to everyone who's -- as a shareholder. We're going to keep going forward. And as Michelle likes to say, we're just getting started.

只想對 Cloudflare 的整個團隊表示感謝。在過去的 5 個月裡，看到每個人都適應了遠程工作環境，真是太棒了。我真的為每個人的工作效率感到自豪。感謝每一位 - 作為股東。我們將繼續前進。正如米歇爾喜歡說的那樣，我們才剛剛開始。

Thank you

謝謝

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。