Cloudflare Inc (NET) 2022 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to Cloudflare's First Quarter 2022 Earnings Call. (Operator Instructions) Thank you. Jayson Noland, Head of Investor Relations, you may begin your conference.

女士們，先生們，感謝你們的支持，歡迎參加 Cloudflare 2022 年第一季財報電話會議。 （操作員指示）謝謝。投資者關係主管傑森諾蘭 (Jayson Noland)，您可以開始您的會議了。

Thank you for joining us to discuss Cloudflare's financial results for the first quarter of 2022. With me on the call, we have Matthew Prince, Co-Founder and CEO; Michelle Zatlyn, Co-Founder, President and COO; and Thomas Seifert, CFO. By now, everyone should have access to our earnings announcement. This announcement, as well as our supplemental financial information, may be found on our Investor Relations website.

感謝您加入我們討論 Cloudflare 2022 年第一季的財務表現。與我一起參加電話會議的還有共同創辦人兼執行長 Matthew Prince； Michelle Zatlyn，共同創辦人、總裁兼營運長；以及財務長 Thomas Seifert。現在，每個人都應該可以看到我們的收益公告了。此公告以及我們的補充財務資訊可在我們投資者關係網站上找到。

As a reminder, we'll be making forward-looking statements during today's discussion, including, but not limited to, our customers, vendors and partners operations and future financial performance; anticipated product launches and the timing and market potential of those products, the company's anticipated future revenue, financial performance, operating performance, non-GAAP gross margin, non-GAAP net income or loss, non-GAAP net income or loss per share, shares outstanding, non-GAAP operating expenses, free cash flow, non-GAAP tax expense, dollar-based net retention rate, paying customers and large customers. 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.

提醒一下，我們將在今天的討論中做出前瞻性陳述，包括但不限於我們的客戶、供應商和合作夥伴的營運和未來的財務業績；預期的產品發布以及這些產品的時間和市場潛力、公司預期的未來收入、財務業績、經營業績績、非公認會計準則毛利率、非公認會計準則淨收入或虧損、非公認會計準則每股淨收入或虧損、流通股數、非公認會計準則營業費用、自由現金流、非公認會計準則稅費、基於美元的淨留存率、付費客戶及大客戶。這些聲明和其他評論並非對未來業績的保證，而是受制於一些我們無法控制的風險和不確定性，包括但不限於 COVID-19 疫情影響的程度和持續時間以及國內和全球總體經濟市場的不利條件。我們的實際結果可能與任何前瞻性陳述中預測或建議的結果有很大差異。

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

這些前瞻性陳述自今天起適用，您不應依賴它們來代表我們未來的觀點。我們不承擔本次電話會議後更新這些聲明的義務。有關可能影響我們未來經營業績和財務狀況的風險和不確定性的更完整討論，請參閱我們向美國證券交易委員會提交的文件以及今天的收益新聞稿。

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

除非另有說明，我們今天討論的所有數字（收入除外）都將基於調整後的非 GAAP 基礎。所有討論的當前和前期財務數據均反映在 ASC 606 中。您可以在我們的投資者關係網站上的收益報告中找到 GAAP 與非 GAAP 財務指標的對帳表。對於歷史時期，可以在剛才引用的補充財務資訊中找到 GAAP 與非 GAAP 的對帳。

Before finishing up, I'd like to invite you to join us for our Investor Day next week on Thursday, May 12. It's being held in conjunction with our user conference, Cloudflare Connect, in New York City. This event will start at 9:00 a.m. Eastern and finish around 11:45, with a live webcast accessible from our Investor Relations website.

在結束之前，我想邀請您參加我們下週四（5 月 12 日）的投資者日。活動將與我們在紐約市舉行的用戶大會 Cloudflare Connect 同時舉行。活動將於東部時間上午 9:00 開始，並於 11:45 左右結束，屆時可透過我們的投資者關係網站進行現場網路直播。

Additionally, we will be participating in the Jefferies Software Conference in San Francisco on June 1. Now I'd like to turn the call over to Matthew.

此外，我們將於 6 月 1 日參加在舊金山舉行的 Jefferies 軟體會議。現在我想將電話交給 Matthew。

Thank you, Jayson. We had a terrific quarter. In Q1, we achieved revenue of $212 million, up 54% year-over-year. We added a quarterly record of more than 14,000 new paying customers, up 10% quarter-over-quarter, bringing our total paying customer count to over 154,000. We add 121 new large customers, those that pay us over $100,000 per year, up 53% year-over-year to a total of 1,537. Today, 58% of our revenue comes from those large customers.

謝謝你，傑森。我們度過了一個非常棒的季度。第一季度，我們實現營收2.12億美元，年增54%。我們本季新增了超過 14,000 名付費客戶，比上一季成長 10%，使我們的付費客戶總數超過 154,000 名。我們增加了 121 個新的大客戶，這些客戶每年向我們支付超過 100,000 美元，年增 53%，總數達到 1,537 個。如今，我們58%的營收都來自這些大客戶。

Our largest customers continue to get larger and larger. Those spending over $500,000 a year, growing 68% year-over-year, and those spending over $1 million a year, growing 72% year-over-year. We now have 12 customers and partners spending over $5 million per year with us. And yet, we remain highly diversified, with no customer representing more than 5% of revenue.

我們最大的客戶規模越來越大。年支出超過 50 萬美元的人數年增 68%，年支出超過 100 萬美元的人數較去年同期成長 72%。我們現在有 12 個客戶和合作夥伴，每年在我們這裡消費超過 500 萬美元。然而，我們的業務仍然高度多元化，沒有任何客戶的收入占到我們總收入的 5% 以上。

Our land and expand motion continues to improve, with dollar-based net retention hitting a new record of 127% in the quarter, up 400 basis points year-over-year. New products and an increased interest in consolidating behind a single trusted vendor for network services has been the key to our continued customer expansion.

我們的土地和擴張行動持續改善，本季基於美元的淨留存率創下 127% 的新紀錄，年增 400 個基點。新產品以及對整合單一可信賴網路服務供應商的興趣日益濃厚是我們持續擴大客戶規模的關鍵。

Efficiency has always been a hallmark of our business. And even in these inflationary times, we achieved a gross margin in the quarter of 78.7%, up 110 basis points year-over-year. That continues to be above our target gross margin range of 75% to 77%, and affords us the opportunity to selectively target competitors' customers, offering them bundles of products that work seamlessly together, reducing the number of vendors they need and providing them with modern solutions, all while saving them money at the same time. We are finding this in a especially compelling value proposition when it seems everyone else is raising prices or can't even say for certain when they'll be able to deliver their legacy hardware boxes.

效率一直是我們業務的標誌。即使在通貨膨脹時期，我們本季的毛利率仍達到 78.7%，較去年同期成長 110 個基點。這仍然高於我們 75% 至 77% 的目標毛利率範圍，並使我們有機會選擇性地瞄準競爭對手的客戶，為他們提供無縫協作的產品組合，減少他們所需的供應商數量並為他們提供現代化的解決方案，同時為他們節省資金。當其他人都在提高價格，甚至不能確定何時能夠交付其傳統硬體盒時，我們發現這是一個特別引人注目的價值主張。

We closed our largest acquisition ever in the quarter, buying Area 1 Security for $162 million. We have a very high hurdle rate for acquisitions being strongly biased towards internal development but Area 1 technology and team are special. We started out as a customer. I remember shortly after we implemented their solution, writing to our Chief Security Officer to ask if something was wrong, I hadn't seen any phishing reports in a few weeks, where usually our team would report double digits per day. It turned out Area 1 and their incredible e-mail security tech was the answer. By the way, if you're still seeing phishing messages in your own box, tell your IT team to call us. We now have a great solution.

我們在本季完成了有史以來最大的一筆收購，以 1.62 億美元收購了 Area 1 Security。我們的收購門檻很高，嚴重偏向內部開發，但第一領域的技術和團隊比較特殊。我們一開始只是一名顧客。我記得在我們實施他們的解決方案後不久，寫信給我們的首席安全官詢問是否出了問題，幾週以來我沒有看到任何網絡釣魚報告，而通常我們的團隊每天會報告兩位數的網絡釣魚報告。事實證明，Area 1 及其令人難以置信的電子郵件安全技術就是答案。順便說一句，如果您仍然在自己的郵箱中看到網路釣魚訊息，請告訴您的 IT 團隊打電話給我們。我們現在有一個很好的解決方案。

Over the last few years, the customer of Area 1, we got to know their team. At Cloudflare, we're a bunch of geeks. We're good at snipping out when tech is real and when it's BS. The Area 1 team shares the same spirit, so they were fun to work with, and their tech definitely isn't BS. We talked to them briefly about a partnership, but it became quickly clear and made far more sense for them to join Cloudflare and fully integrate with our zero trust suite.

在過去的幾年裡，作為 Area 1 的客戶，我們了解了他們的團隊。在 Cloudflare，我們是一群極客。我們擅長分辨科技何時是真實的，何時是胡扯。 Area 1 團隊有著同樣的精神，因此與他們合作很有趣，而且他們的技術絕對不是 BS。我們與他們簡要討論了合作關係，但很快我們就清楚了，加入 Cloudflare 並與我們的零信任套件完全整合對他們來說更有意義。

Let me give you a sense of how that's going. We extended offers to all the Area 1 team, and even in this hot labor market, 98% of them chose to join Cloudflare. And I'm not giving up hope on that last one Area 1 team member who hasn't yet. I think that says something about how good it fit the 2 companies are together, the technologies and the culture.

讓我來介紹一下事情的進展。我們向所有 1 區團隊發出了錄取通知，即使在這個火熱的勞動力市場中，98% 的人仍然選擇加入 Cloudflare。我不會放棄對那位尚未到達的 1 區團隊成員的希望。我認為這說明了兩家公司在技術和文化方面的結合是多麼完美。

E-mail is the #1 source of network threats that no leading zero trust vendor has truly integrated e-mail security is a major blind spot the industry was guilty of. As you see others in the space now scramble to build, buy or partner to fill the hole we pointed out in their offerings, know that it's the best signal that Cloudflare's zero trust solution is resonating in the market and taking share no matter what they may say. And good luck to them. We got the best team and the best tech in the business.

電子郵件是網路威脅的首要來源，沒有一家領先的零信任供應商真正整合電子郵件安全，這是該行業的一個主要盲點。正如您所看到的，該領域的其他人現在爭相構建、購買或合作以填補我們指出的其產品中的空白，要知道，無論他們怎麼說，這都是 Cloudflare 的零信任解決方案在市場上引起共鳴並佔據市場份額的最佳信號。祝他們好運。我們擁有業內最好的團隊和最好的技術。

Let's talk about some customer wins in the quarter, starting with Area 1. In the second half of Q1, Cloudflare and Area 1 sales team started working together. We saw a number of customer wins from existing Cloudflare customers adding Area 1, as well as from Area 1 pipeline deals that accelerated after news broke of our acquisition. Practitioners trust Cloudflare, and know that if we buy a company, the tech works and will scale. New customers who onboarded to Area 1 in the quarter included a major Asian airline, a U.S. bulge bracket investment bank and a Fortune 1000 trucking company.

讓我們來談談本季的一些客戶勝利，從區域 1 開始。在第一季的下半年，Cloudflare 和區域 1 銷售團隊開始合作。我們看到許多現有 Cloudflare 客戶增加了 Area 1，而且在我們收購的消息傳出後，Area 1 管道交易也加速發展。從業者信任 Cloudflare，並且知道如果我們收購一家公司，其技術就會發揮作用並擴大規模。本季加入 1 區的新客戶包括一家亞洲大型航空公司、美國大型投資銀行和一家財富 1000 強卡車運輸公司。

Let me dig into that trucking company example of it. They were an existing Cloudflare customer. They were in the midst of a pilot testing a wide range of e-mail security vendors. In those tests, Area 1 caught twice as many phishing e-mails as the next best competitor, that the tech was now part of Cloudflare made the decision a no-brainer. The trucking company signed a 7,500 seats, $385,000 2-year deal. Watch this space. There's going to be a lot more stories like this one.

讓我深入研究一下那個卡車運輸公司的例子。他們是現有的 Cloudflare 客戶。他們正在進行一項試點測試，測試範圍涵蓋眾多電子郵件安全供應商。在這些測試中，Area 1 捕獲的網路釣魚電子郵件數量是第二名競爭對手的兩倍，因此該技術現在已成為 Cloudflare 的一部分，這使得這一決定變得輕而易舉。該卡車運輸公司簽署了一份為期兩年、價值 385,000 美元、包含 7,500 個座位的合約。關注此空間。類似這樣的故事還會有很多。

We continue to see success with our other zero trust products. A Midwestern U.S. state bought 75,000 seats in a 3-year, $5.1 million deal. The state was replacing legacy hardware, and had decided to move to a cloud-based solution when they began talking to us. It was a competitive deal, but the preferred Cloudflare's tightly integrated approach that gave them a single pane of glass, with integrated policies and threat intelligence. They also love our performance and network that had presence inside their state borders. This was an example of the sale in partnership with a major systems integrator, which we expect will be part of more and more large zero trust sales.

我們的其他零信任產品繼續取得成功。美國中西部的一個州以 3 年 510 萬美元的價格購買了 75,000 個座位。當州政府開始與我們交談時，他們正在更換舊硬件，並決定轉向基於雲端的解決方案。這是一筆競爭性交易，但他們更喜歡 Cloudflare 的緊密整合方法，該方法為他們提供了單一管理平台，其中包含整合的策略和威脅情報。他們也喜歡我們在他們州內開展的業務和人脈。這是與主要係統整合商合作銷售的一個例子，我們預計這將成為越來越多的大型零信任銷售的一部分。

We are confident our implementation of these products has plenty of margin to support a robust partner ecosystem.

我們相信，這些產品的實施具有足夠的空間來支持強大的合作夥伴生態系統。

A large Indian media platform chose Cloudflare over Zscaler and Palo Alto Networks for their zero trust network. They signed a $150,000 deal for 5,000 seats. They appreciated how much more tightly integrated our solutions were than the competition.

一個大型印度媒體平台選擇 Cloudflare 而不是 Zscaler 和 Palo Alto Networks 作為其零信任網路。他們簽署了一份價值 15 萬美元的合同，購買 5,000 個座位。他們很欣賞我們的解決方案比競爭對手的解決方案整合得更緊密。

We are going head-to-head with Zscaler and Palo Alto Networks more and more, and we like our win rates when we do.

我們越來越多地與 Zscaler 和 Palo Alto Networks 展開正面交鋒，我們很高興看到我們的勝率。

A European Fortune 500 automotive company adopted Cloudflare's zero trust approach to help manage their global fleet of more than 10 million vehicles. They signed a contract worth $320,000 per year. We're seeing more and more of these IoT zero trust use cases, and believe there is significant opportunity to expand with this customer.

一家歐洲財富 500 強汽車公司採用 Cloudflare 的零信任方法來幫助管理其全球超過 1000 萬輛汽車的車隊。他們簽署了一份每年價值32萬美元的合約。我們看到越來越多的物聯網零信任用例，並相信與該客戶合作有很大的擴展機會。

Speaking of expansion, a Fortune 500 software company expanded their relationship with us, bringing their annual run rate to $15 million per year. The new contract expanded our relationship to another internal IT division. We're helping them build their future scalable, secure, modern network. They repeatedly let us know, we were the only vendor they trusted in the space for such a mission-critical service.

說到擴張，一家財富 500 強軟體公司擴大了與我們的關係，使其年運行率達到 1500 萬美元。新合約將我們的關係擴展至另一個內部 IT 部門。我們正在幫助他們建立未來可擴展、安全、現代化的網路。他們一再告訴我們，我們是他們在這個領域唯一值得信賴的提供這種關鍵任務服務的供應商。

On the theme of trust, a large social network signed a $3 million, 5-year contract. They are using our global network to authenticate the security of one of their messaging products. They have built the authentication application on Workers, our serverless compute platform, that Workers can keep up with their tremendous scale and volume is a testament to its effortless scalability.

圍繞著信任這個主題，一家大型社交網路簽署了一份價值 300 萬美元、為期 5 年的合約。他們正在使用我們的全球網路來驗證其一款訊息產品的安全性。他們在我們的無伺服器運算平台 Workers 上建立了身份驗證應用程序，Workers 可以跟上其龐大的規模和容量，證明了其輕鬆的可擴展性。

Sticking with Workers, a large Australian software company adopted Workers to help power a collaboration tool. They signed a $145,000 contracts. They're using Workers' durable object functionality to build real-time global synchronization into the product. What we're seeing with Workers is that there's a natural expansion as smart software teams realize what they can do when they can write code and effectively deploy it directly into the Internet fabric. We expect this customer will continue to use Workers for more of their projects now that they've proven success with this one.

一家大型澳洲軟體公司堅持使用 Workers，採用 Workers 來幫助支援協作工具。他們簽署了一份價值145,000美元的合約。他們正在使用 Workers 的持久性物件功能在產品中建立即時全域同步。我們在 Workers 中看到的是，隨著智慧軟體團隊意識到當他們能夠編寫程式碼並將其直接有效地部署到互聯網結構中時，他們可以做什麼，Workers 就會自然而然地擴展。我們預計，既然該客戶已經證明該專案是成功的，他們將繼續在更多專案中使用 Workers。

A Fortune 500 health care company signed a $1.2 million, 3-year deal. It's a pretty standard network security and performance use case for us, replacing legacy hardware. What I thought was interesting with that the IT team had moved from a large financial services customer of ours. As they change jobs, they brought Cloudflare to their new employer. I think we're going to see a lot more of this as practitioners have succeeded in their last job by leaning on us are moving on and moving up in their careers to new opportunities.

一家財富 500 強醫療保健公司簽署了一份價值 120 萬美元、為期 3 年的協議。對我們來說，這是一個非常標準的網路安全和效能用例，可以取代傳統硬體。我認為有趣的是，IT 團隊是從我們的一個大型金融服務客戶轉移過來的。當他們換工作時，他們將 Cloudflare 帶到了新雇主那裡。我認為，我們會看到更多這樣的情況，因為依靠我們，從業者在上一份工作中取得了成功，他們正在繼續前進，並在職業生涯中不斷進步，獲得新的機會。

A Fortune 500 financial services company went all in on Cloudflare. They said that they see us as the future. They signed a $1.5 million, 3-year deal. It was driven by their Chief Security Officer. From start to finish, the sales cycle was around 4 months. They ripped out a number of legacy vendors and consolidated a number of network services behind us. They were tired of trying to find best-of-breed with every product, and instead ending, up with a Frankenstein map. They realized they could with us have the best-of-breed network that was tightly integrated with the features all efficient work together. We expect they will continue to grow their contracts now that they brought fully into Cloudflare architecture.

財富 500 強金融服務公司全力投資 Cloudflare。他們說，他們把我們視為未來。他們簽署了一份為期 3 年、價值 150 萬美元的合約。它是由他們的首席安全官駕駛的。從開始到結束，銷售週期大約是4個月。他們淘汰了許多傳統供應商，並整合了我們的許多網路服務。他們厭倦了嘗試在每款產品中尋找最佳產品，而最終卻只能得到一張科學怪人地圖。他們意識到，他們可以與我們一起擁有緊密整合、高效協作的最佳網路。我們預計，既然他們已經完全採用 Cloudflare 架構，他們的合約將繼續增加。

One last story. A Fortune 1000 gaming company signed a $3.3 million, 3-year contract. I love this story. They were using AWS, but found their security couldn't prevent the attacks they were seeing. After struggling to keep their application online, AWS's team eventually told them, "You should just use Cloudflare." And so they did. We side to let them and lots of other customers know that R2 is progressing to open beta next week, and we expect we'll be able to save them lots of AWS egress fees as well.

最後一個故事。一家財富 1000 強遊戲公司簽署了一份價值 330 萬美元、為期 3 年的合約。我喜歡這個故事。他們正在使用 AWS，但發現他們的安全措施無法阻止他們所看到的攻擊。在努力保持應用程式在線之後，AWS 團隊最終告訴他們，「你應該使用 Cloudflare。」他們也確實這麼做了。我們希望他們和許多其他客戶知道 R2 將於下週進入公開測試階段，我們也預計我們也能夠為他們節省大量的 AWS 出口費用。

I wanted to close by talking about what we're seeing in Russia and Ukraine. I mentioned the region at the end of the last earnings call. A number of you reached out to say a theme out of place at the time. Unfortunately, it proved pressure. At Cloudflare, our global network serves as an early warning sensor for what's happening across the Internet.

最後我想談談我們在俄羅斯和烏克蘭看到的情況。我在上次財報電話會議結束時提到了該地區。你們中的許多人當時都談到了一個不合時宜的主題。不幸的是，這證明了壓力。在 Cloudflare，我們的全球網路充當著網路上正在發生的事情的預警感測器。

In the month leading up to Russia invasion, we saw characteristics cyber probing and other warning signs that were similar to what we've seen in Georgia and Crimea years earlier. Concerned, we've briefed Western government and offered our services to critical infrastructure providers and government institutions in Ukraine well before the physical invasion began. Many organizations there took us up on our offer of protection.

在俄羅斯入侵前的一個月，我們看到了網路探測的特徵和其他警訊，與幾年前在喬治亞和克里米亞看到的情況類似。我們感到擔憂，早在烏克蘭發生實際入侵之前，我們就向西方政府通報了情況，並向烏克蘭關鍵基礎設施提供者和政府機構提供了我們的服務。那裡的許多組織接受了我們所提供的保護。

One of the stories of the war has been the relative lack of cyberattacks. That's not exactly accurate. There have been attacks. However, the number that have been successful are thankfully few. I'm proud of the role that Cloudflare has played to that end.

這場戰爭的一大亮點是網路攻擊相對較少。這並不完全準確。曾發生過襲擊。然而，值得慶幸的是，成功的案例屈指可數。我為 Cloudflare 為此所發揮的作用感到自豪。

In Russia, Belarus and the Russian-occupied regions of Ukraine. We terminated all users tied to sanction parties and put additional checks in place for new customers signing up for our services. The region, including Ukraine, represents less than 1% of revenue. So we do not anticipate meaningful financial impact to our business, but we are conservatively reserving for the worst case, just like we did at the beginning of COVID.

在俄羅斯、白俄羅斯和烏克蘭的俄羅斯佔領區。我們終止了所有與制裁方相關的用戶，並對註冊我們服務的新客戶實施了額外的檢查。包括烏克蘭在內的地區收入佔比不到 1%。因此，我們預計我們的業務不會受到重大的財務影響，但我們會保守地為最壞的情況做好準備，就像我們在 COVID 開始時所做的那樣。

One surprising thing that happened in the quarter was that our 1.1.1.1 app rose to #1 in the Russian app stores. We build that app, and give it away to consumers for free as the world's largest test bed for a key component of our zero trust solution. It turned out in what was an increasingly thoughtful network environment inside Russia. Citizens there wanting to see what was really going on, installed the app in order to access Western media. Now we won't make any money on this. So some of you may wonder why am I telling you about it during the earnings call. Because it turns out doing the right thing and being there when some on the Internet needs us has always been core to Cloudflare and has always turned out to be good business for us over the long term. It's why I love my job. Successfully operating inside the hostile network environment that is Russia today makes our mobile app better for our enterprise zero trust customers. Ensuring Ukrainian critical infrastructure stays online means we can stand up to the biggest nation state-sponsored attacks for our largest government, financial services and other off-targeted customers, and briefing government on what's about to happen proves the power and unique insight we get from our global network.

本季發生的一件令人驚訝的事情是，我們的 1.1.1.1 應用程式在俄羅斯應用程式商店中排名第一。我們建立了該應用程序，並將其免費提供給消費者，作為我們零信任解決方案關鍵組件的全球最大測試平台。事實證明，俄羅斯國內的網路環境正在日益完善。那裡的公民想要了解事情的真相，因此安裝了這款應用程式以便存取西方媒體。現在我們不會從中賺到任何錢。因此你們中的一些人可能想知道為什麼我在收益電話會議期間告訴你們這個消息。因為事實證明，做正確的事情並在互聯網上有人需要我們時出現一直是 Cloudflare 的核心，並且從長遠來看對我們來說一直是一項良好的業務。這就是我熱愛我的工作的原因。在當今俄羅斯的惡劣網路環境中成功運作使我們的行動應用程式更好地服務我們的企業零信任客戶。確保烏克蘭關鍵基礎設施保持在線意味著我們可以為我們最大的政府、金融服務和其他非目標客戶抵禦最大規模的國家支持的攻擊，向政府通報即將發生的事情證明了我們從全球網絡獲得的力量和獨特洞察力。

We're in the trust business. We always have been. And in Q1, we built a lot of trust in a lot of quarters. Even in what I believe will prove to have been the hardest quarter for the industry since Q1 of 2020. Trust is the secret to why we continue to grow paying customers in a record pace. It's why we received 133,000 job applications and saw attrition actually ticked down, while many others are struggling to hire. And while we continue to have a seat at the table in conversations around the future regulation of the Internet alongside today's check giants.

我們從事信託業務。我們一直都是這樣。在第一季度，我們在許多方面建立了極大的信任。即使我認為這將是自 2020 年第一季以來該行業最艱難的一個季度，信任仍然是我們繼續以創紀錄的速度成長付費客戶的秘訣。這就是為什麼我們收到了 133,000 份工作申請，員工流失率實際上有所下降，而其他許多人卻在努力招募。同時，我們繼續與當今的支票巨頭一起討論未來網路監管的問題。

We will be there as the Internet needs us in Ukraine, Russia and everywhere else. And as we are, we are sowing the seeds to build what we intend to become not just what some of you may think of a SaaS, a steady, efficient, fast-growing SaaS company today, but an iconic trusted technology company that will define the future of the Internet for decades to come.

只要烏克蘭、俄羅斯和其他地方的網路需要我們，我們就會在那裡。而我們現在正在播下種子，希望我們能夠成為一家不僅僅是你們有些人認為的 SaaS 公司，一家穩定、高效、快速增長的 SaaS 公司，而是一家標誌性的值得信賴的技術公司，它將定義未來幾十年互聯網的未來。

With that, I'll turn it over to Thomas to dive into our steady, efficient fast-growing numbers. Thomas, take it away.

說完這些，我將把麥克風交給湯瑪斯，讓他深入探討我們穩定、有效率、快速成長的數字。湯瑪斯，把它拿走。

Thank you, Matthew, and thank you to everyone for joining us. We continued the momentum from the fourth quarter and delivered a strong Q1, exceeding the high end of our revenue guidance with strength in multiple areas of the business. Turning to revenue.

謝謝你，馬修，也謝謝大家的參與。我們延續了第四季度的勢頭，並取得了強勁的第一季業績，超出了我們預期的收入上限，業務的多個領域都表現強勁。談到收入。

Total revenue for the first quarter increased 54% year-over-year to $212.2 million. The growth in revenue was driven by strong adoption of our product portfolio and continued traction with our enterprise customer base.

第一季總營收年增54%至2.122億美元。收入的成長得益於我們產品組合的廣泛採用以及企業客戶群的持續吸引力。

From a geographic perspective, in Q1, we saw continued strength in both the U.S. and internationally. The U.S. represented 53% of revenue and increased 56% year-over-year. EMEA represented 26% of revenue and increased 57% year-over-year. APAC represented 14% of revenue and increased 31% year-over-year.

從地理角度來看，第一季度，我們看到美國和國際市場持續保持強勁成長。美國佔總營收的53%，年增56%。歐洲、中東和非洲地區佔總營收的 26%，年增 57%。亞太地區佔總營收的 14%，年增 31%。

We are pleased to see growth continue to accelerate in APAC and see EMEA repeat as our highest growth geography this quarter.

我們很高興看到亞太地區的成長持續加速，並且歐洲、中東和非洲地區再次成為本季成長最快的地區。

Turning to customer metrics. We exited the quarter with 154,109 paying customers, representing an increase of 29% year-over-year. We ended the year with 1,537 large customers, representing an increase of 63% year-over-year or an addition of 121 large customers in the quarter.

轉向客戶指標。本季末，我們擁有 154,109 名付費客戶，較去年同期成長 29%。截至本財年末，我們擁有 1,537 個大客戶，年增 63%，即本季增加了 121 個大客戶。

We were pleased to see large customer revenue contribution increase again sequentially. Significant expansion from our large customers contributed to a record dollar-based net retention rate of 127%, representing an increase of 200 basis points sequentially. We continue to see broad-based strength across our enterprise go-to-market efforts, which we look forward to providing additional insights during our Investor Day next week.

我們很高興看到大客戶收入貢獻再次連續增加。我們大客戶的大幅擴張推動了美元淨留存率達到創紀錄的 127%，比上一季增加了 200 個基點。我們繼續看到企業進入市場的努力具有廣泛優勢，我們期待在下週的投資者日期間提供更多見解。

Moving to gross margin. First quarter gross margin was 78.7%, consistent with last quarter. Network CapEx represented 9% of revenue in the first quarter. Going forward, we expect to see some level of quarter-to-quarter variability given strategic purchase decisions and continue to expect network CapEx to be 12% to 14% of revenue for fiscal 2022.

轉向毛利率。第一季毛利率為78.7%，與上季持平。網路資本支出佔第一季營收的 9%。展望未來，考慮到策略採購決策，我們預期季度間會出現一定程度的波動，並繼續預期網路資本支出將佔 2022 財年收入的 12% 至 14%。

Turning to operating expenses. First quarter operating expenses as a percentage of revenue decreased 2% sequentially and decreased 7% year-over-year to 76%. We had another strong hiring quarter where we saw our total number of employees increased 42% year-over-year, bringing our total number of employees to approximately 2,750 at the end of the quarter.

談到營運費用。第一季營運費用佔營收的百分比季減 2%，年減 7% 至 76%。我們又經歷了一個強勁的招聘季度，我們的員工總數同比增長了 42%，到本季度末，我們的員工總數已達到約 2,750 人。

Sales and marketing expenses were $89.7 million for the quarter. Sales and marketing as a percentage of revenue decreased 2% sequentially and decreased to 42% from 46% in the same quarter last year.

本季銷售和行銷費用為 8,970 萬美元。銷售和行銷佔營收的百分比較上季下降2%，從去年同期的46%下降至42%。

Research and development expenses were $40.3 million in the quarter. R&D as a percentage of revenue stayed flat sequentially and decreased to 19% from 21% in the same quarter last year. G&A expenses were $32 million for the quarter. G&A as a percentage of revenue increased 1% sequentially and decreased to 15% from 17% in the same quarter last year.

本季研發費用為 4,030 萬美元。研發費用佔營收的比例與上一季持平，從去年同期的 21% 下降至 19%。本季的一般及行政費用為 3,200 萬美元。一般及行政費用佔營收的百分比季增 1%，從去年同期的 17% 降至 15%。

We saw continued operating leverage strength in the first quarter with operating margin improving 770 basis points year-over-year. Operating income was $4.9 million compared to an operating loss of $7.5 million in the same period last year. Q1 was our third consecutive quarter of achieving operating profit. And as a reminder, we intend to grow our operating expenses in line with the revenue staying here or at breakeven and reinvest excess profitability back into the business to address the enormous opportunity in front of us.

我們在第一季看到經營槓桿持續保持強勁，經營利潤率年增了 770 個基點。營業收入為 490 萬美元，而去年同期的營業虧損為 750 萬美元。第一季是我們連續第三個季度實現營業利潤。提醒一下，我們打算根據收入水平或損益平衡來增加營運費用，並將多餘的盈利重新投資到業務中，以應對我們面前的巨大機會。

Turning to net income and the balance sheet. Our net income in the quarter was $3.5 million or net income per share of $0.01. Tax expense for the first quarter was $1.7 million. We ended the first quarter with $1.7 billion in cash, cash equivalents and available-for-sale securities. Free cash flow was negative $64.4 million or 30% of revenue compared to negative $2.2 million or 2% of revenue in the same period last year.

轉向淨收入和資產負債表。本季我們的淨收入為 350 萬美元，即每股淨收入 0.01 美元。第一季的稅費為170萬美元。第一季結束時，我們擁有 17 億美元的現金、現金等價物和可供出售證券。自由現金流為負 6,440 萬美元，佔營收的 30%，而去年同期為負 220 萬美元，佔營收的 2%。

Operating cash flow was negative $35.5 million in the first quarter or 70% of revenue, compared to $23.5 million or 17% of revenue in the same period last year. The decrease in cash flow was primarily related to a unique withholding tax payment of approximately $30 million.

第一季經營現金流為負 3,550 萬美元，佔營收的 70%，而去年同期經營現金流為 2,350 萬美元，佔營收的 17%。現金流的減少主要與約 3000 萬美元的獨特預扣稅支付有關。

As mentioned last quarter, we expected to see some cash flow variability in the first half of 2022, but we continue to expect to return to positive free cash flow in the second half of this year. Remaining performance obligations, or RPO, came in at $688 million, representing an increase of 10% sequentially and 57% year-over-year. Current RPO was 76% of total RPO.

正如上個季度所提到的，我們預計 2022 年上半年現金流會出現一些波動，但我們仍然預計今年下半年自由現金流將恢復為正值。剩餘履約義務（RPO）為 6.88 億美元，季增 10%，年增 57%。目前 RPO 佔總 RPO 的 76%。

Turning to guidance. As Matthew mentioned, we closed the Area 1 acquisition on April 1, which is expected to contribute less than 1% to revenue and the dilutive impact on profitability is reflected in guidance in both the second quarter and full year. Additionally, in the first quarter, we also ended all relationships with users tied to sanction parties in Russia, which represented less than a 1% impact to revenue.

轉向指導。正如馬修所提到的，我們於 4 月 1 日完成了 1 號區域的收購，預計該收購對收入的貢獻不到 1%，對盈利能力的稀釋影響反映在第二季度和全年的指引中。此外，在第一季度，我們也終止了與俄羅斯制裁方有關的所有用戶的關係，這對收入的影響不到 1%。

For the second quarter, we expect revenue in the range of $226.5 million to $227.5 million, representing an increase of 49% year-over-year. We expect an operating loss, including Area 1, in the range of $2 million to $1 million. We expect a net loss per share of $0.01 to breakeven.

對於第二季度，我們預計營收將在 2.265 億美元至 2.275 億美元之間，年增 49%。我們預計包括 1 區在內的營運虧損將在 200 萬至 100 萬美元之間。我們預計每股淨虧損 0.01 美元，以實現收支平衡。

For modeling purposes, please note that if we report positive net income in the second quarter, we expect our share count to be 344 million fully diluted share for the 325 million basic shares if we report a net loss. We expect a tax expense of $1.8 million.

為了建模的目的，請注意，如果我們在第二季報告正淨收入，如果我們報告淨虧損，我們預計我們的股票數量將為 3.44 億股完全稀釋股票，而基本股票為 3.25 億股。我們預計稅費為 180 萬美元。

For the full year 2022, we expect revenue in the range of $955 million to $959 million, representing an increase of 45% to 46% year-over-year. We expect operating income for the full year in the range of $10 million to $14 million, and we expect net income per share over that period in the range of $0.03 to $0.04, assuming approximately 345 million common shares outstanding. We expect a tax expense of $7.7 million.

我們預計 2022 年全年營收將在 9.55 億美元至 9.59 億美元之間，年增 45% 至 46%。我們預計全年營業收入將在 1,000 萬美元至 1,400 萬美元之間，假設流通普通股約為 3.45 億股，我們預計該期間每股淨收入將在 0.03 美元至 0.04 美元之間。我們預計稅費為 770 萬美元。

In closing, it was another very strong quarter. I, again, want to thank our employees for delivering these great results and for their continued dedication. We look forward to hosting our second Investor Day next Thursday, where we'll do a deeper dive on our product portfolio and recent acquisitions as well as updates on our financial progress and market opportunity.

總而言之，這又是一個非常強勁的季度。我再次感謝我們的員工取得的出色成績以及他們的持續奉獻。我們期待下週四舉辦第二屆投資者日，屆時我們將深入探討我們的產品組合和最近的收購以及我們的財務進展和市場機會的最新情況。

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

現在，我想開始回答大家的提問。接線員，請投票詢問問題。

(Operator Instructions) Your first question of Matt Hedberg with RBC Capital Markets.

（操作員指示）您向 RBC Capital Markets 的 Matt Hedberg 提出的第一個問題。

It's Dan Berg so for Matt Hedberg. So, dollar-based net retention continues to track well, the 127% was really nice to see, obviously having success with large customer expansion. Maybe a little more, if you could, and what is it that gets customers to buy into the broader set of the platform? And what really gets those enterprise customers to the next level of usage?

丹伯格 (Dan Berg) 是馬特赫德伯格 (Matt Hedberg)。因此，基於美元的淨留存率繼續保持良好勢頭，127% 的成長率確實令人欣喜，顯然在大規模客戶擴張方面取得了成功。如果可以的話，也許可以多問一點，是什麼讓客戶購買該平台的更廣泛的產品？那麼什麼才能真正讓這些企業客戶的使用水準達到一個新的高度呢？

Sure. I think that what we have seen is that once the customer is on our network, we can see traffic across their systems typically and make intelligent recommendations over what additional products. So I'll give you a specific example. We're -- we have an incredible bot management product that is good at stopping malicious automated traffic on a customer's site. One of the things we do is even before someone is using the bond management product, we can look at their traffic patterns, see how many bots they have and then generate a report for them that says, "You have a bot problem. Here's what we see. Would you like us to help you with it?"

當然。我認為，我們看到的是，一旦客戶連接到我們的網絡，我們通常就可以看到他們系統中的流量，並針對其他產品提出智慧建議。所以我給你一個具體的例子。我們擁有一款出色的機器人管理產品，能夠有效阻止客戶網站上的惡意自動流量。我們所做的事情之一是，甚至在有人使用債券管理產品之前，我們就可以查看他們的流量模式，看看他們有多少個機器人，然後為他們生成一份報告，上面寫著：“你有一個機器人問題。這是我們看到的。你想讓我們幫你解決這個問題嗎？”

And so I think that those sorts of intelligent recommendations have been very good at getting customers to adopt additional products on our platform. I think going forward, as we've talked about in previous earnings calls, what you'll see us do more and more is bundle together our services into much broader licenses. And so you can see that with even some of the examples that I brought up on the prepared remarks earlier, where companies that buy into our total infrastructure commit to a certain spend with us, and then they are able to just continuously add additional products, and we true that up on an annual basis.

因此，我認為這些智慧推薦非常有助於讓客戶採用我們平台上的其他產品。我認為，正如我們在之前的財報電話會議上所討論的那樣，展望未來，你會看到我們越來越多地將我們的服務捆綁到更廣泛的許可證中。因此，您可以看到，甚至從我之前在準備好的發言中提到的一些例子中，購買我們全部基礎設施的公司承諾與我們進行一定的支出，然後他們就可以不斷添加額外的產品，我們每年都會對此進行確認。

I think we are really unique in that we have that broad set of different products, where once you're using our service, we can start making intelligent recommendations, and we can solve so many problems for customers that those sort of site-wide licenses make sense. And I think that, that will continue to be a big piece of our growth going forward.

我認為我們的獨特之處在於我們擁有廣泛不同的產品，一旦您使用我們的服務，我們就可以開始提供智慧建議，並且可以為客戶解決很多問題，因此這種網站範圍的許可是有意義的。我認為這將繼續成為我們未來成長的重要組成部分。

I wanted to add to that tie back to the incredible innovation engine that you should keep in mind, too. Not only the expansion working, but there are more products and features available to sell every quarter. That plays into our DNR strategy moving forward.

我還想補充一點，你們也應該牢記這一點，那就是令人難以置信的創新引擎。不僅擴充有效，而且每季都有更多的產品和功能可供銷售。這對我們未來的 DNR 策略起到了推動作用。

Very helpful from both of you. And then new customer generation, really robust in the quarter, a record, as you mentioned. Anything worth pointing out there as a driver or accounting for that strong new customer number?

你們兩位都非常有幫助。正如您所說，本季新客戶的產生確實非常強勁，創下了紀錄。有什麼值得指出的因素可以作為推動或解釋如此強勁的新客戶數量的因素嗎？

Yes. I don't mean to critique your work, but your early note that went out suggested that we now have 14,000 customers. In fact, we actually added 14,000 new customers in the quarter, paying customers in the quarter, and are now at over 150,000 paying customers across the platform. I think that, that again is just us showing that across regardless of the size of customer, we've been able to very effectively get them onto our platform, nurture them over time, get them to use additional products and services and grow them into larger and larger customers.

是的。我並不是要批評你的工作，但你早期發布的報告顯示我們現在有 14,000 名客戶。事實上，我們在本季增加了 14,000 名新客戶，即付費客戶，目前整個平台的付費客戶已超過 15 萬名。我認為，這再次表明，無論客戶規模如何，我們都能夠非常有效地將他們引入我們的平台，隨著時間的推移培養他們，讓他們使用其他產品和服務，並將他們發展成為越來越大的客戶。

And so I think it's -- at some level, when you look at growth like that, there's never one particular thing that you can point to and say, "That was what was going on." Because, again, we service such a broad set of customers from very small to very, very large. But I'm really proud of the team and the hard work that they've done in order to deliver in continuing to grow our entire customer base. And that's -- and it's great to see us have a record add of 14,000 new customers in the quarter.

所以我認為——從某種程度上來說，當你看待這樣的成長時，你永遠無法指出某件特定的事情並說「這就是正在發生的事情」。因為我們服務的客戶範圍非常廣泛，從非常小的客戶到非常大的客戶。但我真的為這個團隊以及他們為繼續擴大我們整個客戶群所做的努力感到自豪。我們很高興看到本季我們新增了 14,000 名客戶，創下了歷史記錄。

Your next question comes from the line of Joel Fishbein with Truist.

您的下一個問題來自 Truist 的 Joel Fishbein。

Fantastic execution again. Matthew, a couple of other companies that are cloud-centric have reported that Internet traffic has been trending down over the past several months. I'd love to just get your take on what's happening and how Cloudflare is positioned and how your Internet traffic has been flowing.

再次出色的執行。馬修，其他幾家以雲端為中心的公司報告稱，過去幾個月網路流量呈下降趨勢。我很想了解您對當前情況的看法、Cloudflare 的定位以及您的網路流量如何流動。

Yes. We haven't seen that. I think it has been continued growth. So to, first of all, answer your question, just straight up, we said year-over-year traffic growth across our network of 75.8%, quarter-over-quarter growth of 15.9%, and that's in line with sort of the quarter-over-quarter growth that we've seen for the last period.

是的。我們還沒見過這種情況。我認為它一直在持續增長。首先，直接回答你的問題，我們說我們網路的流量年增 75.8%，環比增長 15.9%，這與我們上一時期看到的環比增長一致。

It's worth remembering that we don't bill primarily based on usage. We bill in a much more predictable way. And so I think that, that is a good indication that we are taking share from the rest of the industry.

值得記住的是，我們主要不是根據使用情況來計費。我們的計費方式更加可預測。所以我認為這是一個很好的跡象，表明我們正在從其他行業中搶佔市場份額。

But even in the post-COVID times, the traffic across our network continues to grow. And we do that while still maintaining above what our target gross margins are. I think the other thing which you didn't ask about, but I think it's interesting to compare, is how much usage has grown across our network. And where bandwidth has grown 75.8% year-over-year, CPU usage has actually grown 89.1%. And over the quarter, it's 15.9% for bandwidth and 21.8% growth for CPU usage.

但即使在疫情過後，我們網路的流量仍在持續成長。我們這樣做的同時，仍然保持高於目標的毛利率。我認為您沒有問到的另一件事，但我認為比較一下很有趣，那就是我們的網路使用量增加了多少。頻寬年增 75.8%，而 CPU 使用率實際上成長了 89.1%。本季度，頻寬使用率成長了 15.9%，CPU 使用率成長了 21.8%。

What I think is -- why that's interesting and that's important, because I think that that's actually showing where people are not just using Cloudflare for moving bits around, but they're using Cloudflare in order to do intelligent processing of those bits, and that intelligence, which is really driven by like our Workers' edge computing product, as well as some of our security products, that's actually growing faster than bandwidth. And I think that, that delta shows why we're able to continue to grow revenue at the 54% that we did in the quarter. Does that answer your question?

我認為——為什麼這很有趣而且很重要，因為我認為這實際上表明人們不僅僅使用 Cloudflare 來移動比特，而且還使用 Cloudflare 對這些比特進行智能處理，而這種智能實際上是由我們的 Workers 邊緣計算產品以及我們的一些安全產品驅動的，其增長速度實際上比頻寬更快。我認為，這個增量顯示了為什麼我們的營收能夠在本季繼續成長 54%。這回答了你的問題嗎？

More than I wanted, but thank you. That was great. Appreciate it.

比我想要的還多，不過還是謝謝你。那很棒。非常感謝。

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

您的下一個問題來自 Jefferies 的 Brent Thill。

Matthew, the Area 1 acquisition, I think, is a unique one for you and kind of maybe outside your core lane that you've gone. Can you just talk to that? And then Also, when you think about the go-to-market and the synergies among the other suite, can you just talk through how you think that unveils over the next several quarters?

馬修，我認為，對 1 號區域的收購對您來說是一個獨特的收購，並且可能超出了您的核心業務範圍。你能談談這個嗎？另外，當您考慮上市和其他套件之間的協同作用時，您能否談談您認為未來幾季將如何展現？

Yes. I think -- so first of all, any acquisition is a bit unusual for us because we have such a strong bias towards internal development and building products ourselves. I think though, Area 1 and e-mail security, in particular, makes just a ton of sense for us to do something around. If you look across every other protocol that is sent across the Internet, we protect whether it's HTTP traffic or it's your SIP traffic to your phone system or it's SSH traffic, anything that's out there, any protocol, we protect. And we had just not dived into protecting SMTP and the e-mail protocols.

是的。我認為——首先，任何收購對我們來說都有點不尋常，因為我們非常傾向於內部開發和自己製造產品。不過，我認為，針對區域 1 和電子郵件安全，我們採取一些措施是非常有意義的。如果您查看透過網路傳送的所有其他協議，我們都會保護它，無論是 HTTP 流量、還是您到電話系統的 SIP 流量或 SSH 流量，任何存在的內容、任何協議，我們都會保護。我們還沒有深入研究保護 SMTP 和電子郵件協定。

And I think a little bit of that is, honestly, my fault and our CTO john's fault, because both of us had worked in e-mail security prior to come to Cloudflare. And I think we have the scar tissue to prove from it. And so all the time, our sales team would come to us and say, "Hey, customers really would love us to have an e-mail security product." Our engineering team would say, "We have a ton of data that could help inform an e-mail security product. We should build it." And I think John and I would often veto that. I think that, that, frankly, was a blind spot on both of our sites. Because if you look at the data, e-mail security is by far the #1 source of threats that come into an organization. Almost every headline hacking incident that you've read about in the last 2 years, e-mail was the initial way that, that vulnerability was taken into account.

老實說，我認為這有一點是我的錯，也是我們技術長約翰的錯，因為在加入 Cloudflare 之前，我們兩個都從事電子郵件安全工作。我認為我們已經有傷疤來證明這一點。因此，我們的銷售團隊總是會來找我們說：「嘿，客戶真的很希望我們有一款電子郵件安全產品。」我們的工程團隊會說：「我們擁有大量數據，可以幫助開發電子郵件安全產品。我們應該開發它。」我認為約翰和我經常會否決這一點。坦白說，我認為這是我們兩個網站的盲點。因為如果你查看數據，你會發現電子郵件安全是迄今為止組織面臨的最大威脅來源。過去兩年中，幾乎你所讀到的每一起駭客事件，電子郵件都是最初考慮到這種漏洞的方式。

So I think it makes a ton of sense for us to have a solution. It's also incredibly powerful because we're the DNS provider that we can make it one-click deployment, where it's a customer of ours clicks a single button and instantly, they get the benefits of the Area 1 solution, and they can continue to use whoever their existing e-mail provider is, whether that's Outlook and Microsoft Office or its G-suite or if it's something that they're hosting on-premise. Much like Cloudflare, Area 1 is a proxy, but it's just a proxy for e-mail traffic.

所以我認為我們找到一個解決方案是非常有意義的。它也非常強大，因為我們是 DNS 供應商，我們可以實現一鍵部署，我們的客戶只需單擊一個按鈕即可立即獲得 Area 1 解決方案的好處，他們可以繼續使用他們現有的電子郵件提供商，無論是 Outlook 和 Microsoft Office 或其 G-suite，還是他們在本地託管的東西。與 Cloudflare 非常相似，Area 1 是一個代理，但它只是一個電子郵件流量的代理。

So I think it's a very natural point for us to integrate. I think, it's a very easy sales motion for our customers to go through. And to the second part of your question, I think it integrates with the rest of our zero trust suite extremely well. So for instance, when you get an e-mail from an unknown sender. We can automatically isolate that e-mail using our browser isolation product so that any link that you click on in that link don't actually render on your laptop, but they're actually rendered at the edge of our network. So any malicious content that's in those links, we can stop.

所以我認為我們的整合是一個非常自然的重點。我認為，對於我們的客戶來說，這是一個非常簡單的銷售動作。對於您問題的第二部分，我認為它與我們其餘的零信任套件整合得非常好。例如，當您收到來自未知寄件者的電子郵件時。我們可以使用我們的瀏覽器隔離產品自動隔離該電子郵件，以便您在該連結中點擊的任何連結實際上都不會呈現在您的筆記型電腦上，但它們實際上會呈現在我們的網路邊緣。因此，我們可以阻止這些連結中的任何惡意內容。

And so I think that this is going to be a very effective way to introduce our zero trust suite to the market. It gets people to start to adopt a seat-based approach to our product very easy for our existing customers to deploy with 1 click. And I think it's going to be a gateway to the rest of our zero trust product, selling more of our gateway and access and browser isolation products as well. Does that answer your question?

因此，我認為這將是一種將我們的零信任套件推向市場的非常有效的方式。它讓人們開始採用基於座位的方式來使用我們的產品，我們的現有客戶只需單擊即可輕鬆部署。我認為它將成為我們其他零信任產品的門戶，同時銷售更多的網關、存取和瀏覽器隔離產品。這回答了你的問題嗎？

That was very comprehensive.

那非常全面。

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

您的下一個問題來自 Piper Sandler 的 James Fish。

Nice quarter there. I wanted to hear a little bit more about the wave 2 products like Teams and Magic Transit, Magic WAN are doing, especially as it seems like these are driving the largest dollar growth still. Additionally, how has Cloudflare for Offices progress this quarter? And is there any way to think of how many customers are a penetration rate of using some of these wave 2 solutions that I'm talking about here?

那裡很不錯。我想了解更多關於 Teams、Magic Transit、Magic WAN 等第二波產品的情況，尤其是這些產品似乎仍在推動最大的美元成長。此外，Cloudflare for Offices 本季進展如何？有什麼方法可以計算出有多少客戶使用我在這裡談論的一些第二波解決方案的滲透率？

Yes. So I think that the wave 2 solutions, and I would characterize it a little bit differently. I would say that we have products like Magic Transit, Magic Firewall, that really do complement some of our more traditional products. They're all about protecting content, protecting your infrastructure. And then we have products like Gateway and Access and Browser Isolation, which are all about protecting users.

是的。所以我認為第二波解決方案，我會對它進行稍微不同的描述。我想說，我們有像 Magic Transit、Magic Firewall 這樣的產品，它們確實可以補充我們的一些更傳統的產品。它們都是為了保護內容、保護您的基礎設施。然後我們還有網關和存取以及瀏覽器隔離等產品，它們都是為了保護使用者。

And so I think you pumped those sort of into wave 2. And that's true from a timing perspective, but they actually are slightly different and they -- and I think that they are both growing very well. But they are somewhat different in terms of the way that we go to market with those products. And in some cases, who the exact buyer is within an organization for those products.

所以我認為你把這些都注入了第二波。從時間角度來看確實如此，但它們實際上略有不同，而且我認為它們都發展得很好。但就我們將這些產品推向市場的方式而言，它們略有不同。在某些情況下，組織內這些產品的具體買家是誰。

And so I think we've seen really strong adoption for the Magic Transit product. That is replacing a lot of the traditional network DDoS protection services. I think particular strength in carriers that are starting to use the product as well, which I think -- which is a really exciting opportunity. And it's -- we're getting that because of the fact that we can just stand in front of much more traffic than possible -- as possible through any sort of box-based solution.

因此我認為我們已經看到 Magic Transit 產品的廣泛採用。這正在取代許多傳統的網路 DDoS 防護服務。我認為開始使用該產品的營運商也具有特別的優勢，我認為這是一個非常令人興奮的機會。我們之所以能實現這一點，是因為我們可以承受比任何基於盒子的解決方案都要大得多的流量。

I think on the user-based products, we're seeing really good adoption of those, both for customers who are coming first for those products but then also for us to be able to sell those products to our existing customers. And there's a really natural extension between our traditional firewall products and the access product, and those dovetail very well together.

我認為，就基於用戶的產品而言，我們看到這些產品的採用率確實很高，不僅對於首先購買這些產品的客戶而言，而且對於我們能夠將這些產品銷售給現有客戶而言也是如此。我們傳統的防火牆產品和接取產品之間存在著非常自然的延伸，並且它們可以很好地結合在一起。

I think Cloudflare for Offices continues to progress really well, although it's very early in terms of what that will look like. We have, in the quarter, we announced some of the hardware that we are deploying, and we are starting to build that out within networks. I would say that rather than that us measuring the success of that product today based on the revenue that it generates, I think we are much more measuring the success of that product based on the willingness of landlords and network providers to invite us into their facilities and allow us to directly interconnect. And I think that, that is in every region where we've deployed the Cloudflare for Offices. That is trending at or ahead of what our expectations are.

我認為 Cloudflare for Offices 正在繼續取得良好的進展，儘管就其未來發展而言還為時過早。在本季度，我們宣布了我們正在部署的一些硬件，並且我們開始在網路中建立這些硬體。我想說的是，我們今天衡量該產品成功與否的標準不是基於它產生的收入，而是更多地基於房東和網絡提供商是否願意邀請我們進入他們的設施並允許我們直接互連。我認為，在我們部署了 Cloudflare for Offices 的每個地區都是如此。這一趨勢符合或超越了我們的預期。

Your next question comes from the line of Phil Winslow with Credit Suisse.

您的下一個問題來自瑞士信貸的 Phil Winslow。

Congrats on another great quarter. I wanted to focus in on Workers and R2. You talked about some pretty significant wins there, Matthew. One of the things you've also talked about, too, is how sort of it takes a long time to sort of get escape velocity and a platform in terms of developer adoption, et cetera. How are you thinking about sort of where we stand right now? And is there anything sort of surprising you in sort of the rate and pace of adoption of Workers or just sort of call it the broader platform when you think about R2?

恭喜您又一個出色的季度。我想集中精力於工人和 R2。馬修，你談到了一些非常重要的勝利。您也談到的一件事是，從開發人員採用等方面來看，要達到逃逸速度和平台需要很長時間。您如何看待我們現在的處境？當您考慮 R2 時，Workers 或稱為更廣泛的平台的採用速度和步伐是否令您感到驚訝？

Sure. So first of all, as I mentioned, R2 is going to progress from a closed beta to an open beta next week. And next week, we have Platform Week, which is really very much focused on all of the different ways that Cloudflare can be a platform for developers to develop on, but really a focus around the various Workers' products. And I think we'll have some very exciting surprises as part of what we're rolling out over the course of the week as well.

當然。首先，正如我所提到的，R2 將於下週從封閉測試版進入公開測試版。下週，我們將舉辦平台週活動，重點關注 Cloudflare 作為開發人員開發平台的所有不同方式，但重點主要圍繞著各種 Workers 產品。我認為，在本週推出的活動中，我們還會有一些非常令人興奮的驚喜。

I think that if you study developer platforms, for them to really reach escape velocity, takes between 8 and 12 years. And so Workers was launched in late 2017, so we're continuing to develop it. We're on that curve. I think the thing that has surprised me is that we're seeing very big companies with very sophisticated development teams getting excited about and realizing that Workers is a solution for a lot of the problems they have.

我認為，如果你研究開發者平台，它們要真正達到逃逸速度，需要 8 到 12 年的時間。 Workers 於 2017 年底推出，我們正在繼續開發它。我們正處於那條曲線上。我認為令我感到驚訝的是，我們看到擁有非常複雜的開發團隊的大公司對 Workers 感到興奮並意識到它可以解決他們面臨的許多問題。

The 2 examples that I mentioned in the prepared remarks, one major social network, that's a very sophisticated developer team that chose to build using Workers. And I think what we found is that once a team like that sees the power of what they can do with Workers, that really excites them, both within the organization they're at and also as they change jobs, and go to other places where they take the technology with them. The same thing is true with the Australian software company, where doing something like real-time collaboration across multiple continents, if you're trying to do that with a traditional public cloud, it's a ton of work. With durable objects and Workers, it almost just works out of the box. And in fact, we have examples of how that's done. And I think that, that was something that was, again, incredibly well-received by that very sophisticated software engineering team, and we expect that they will continue to do more with the product.

我在準備好的演講中提到的兩個例子，一個是主要的社交網絡，這是一個非常複雜的開發團隊，他們選擇使用 Workers 來建立。我認為我們發現，一旦這樣的團隊看到了 Workers 的強大功能，他們就會感到非常興奮，無論是在他們所在的組織內，還是在他們換工作或去其他地方時，他們都會帶著這項技術一起去。這家澳洲軟體公司也面臨同樣的情況，如果試圖使用傳統的公有雲來實現跨大洲的即時協作，那將是一項艱鉅的工作。有了耐用的物體和工人，它幾乎可以開箱即用。事實上，我們有這樣做的例子。我認為，這再次受到了非常成熟的軟體工程團隊的熱烈歡迎，我們期望他們能夠繼續對該產品做出更多改進。

So I think, again, it's going to be some time before it's something that we would -- that is dramatically contributing to revenue. But I am very pleasantly surprised at how many developers are flocking to the workers ecosystem, and we'll be talking a lot more about it next week.

所以我認為，這還需要一段時間才能成為我們想要實現的目標——大幅增加收入。但我很高興看到如此多的開發人員湧向工人生態系統，下週我們將對此進行更多討論。

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

您的下一個問題來自摩根士丹利的 Keith Weiss。

It's Matt Wilson on for Keith Weiss. Matt, you again mentioned the opportunity to use gross margins as a weapon against customers who -- or against competitors who are more vulnerable to pricing and cost pressures. Can you detail what has allowed Cloudflare to resist these pressures, both on the pricing and cost front?

馬特威爾森 (Matt Wilson) 取代基斯韋斯 (Keith Weiss)。馬特，你再次提到了利用毛利率作為武器來對付那些更容易受到定價和成本壓力影響的客戶或競爭對手的機會。您能詳細說明一下 Cloudflare 為何能夠抵抗這些壓力（包括定價和成本方面）嗎？

I think efficiency is just at our core. And so our network has always been designed in such a way to be able to get to be as efficient as possible. And so that has allowed us to deliver the services that we do. I think we sometimes get compared with some of the more traditional CDN-type vendors, and that's just never how we have seen ourselves, and it's not business that we have chased.

我認為效率是我們的核心。因此，我們的網路始終以盡可能高效的方式設計。這使我們能夠提供我們所提供的服務。我認為我們有時會與一些更傳統的 CDN 類型的供應商進行比較，但我們從來沒有這樣看待自己，這也不是我們追求的業務。

And so I think that where, if you're selling just bit delivery, it turns out that being a little bit faster -- really the returns are incredibly diminishing. Whereas if you're selling security, if you're selling intelligence, which is built into the network, if you're selling the ability to drive that, that has a very compelling use case.

所以我認為，如果你只銷售比特配送，那麼速度稍微快一點，回報實際上就會大大減少。而如果你銷售的是安全性，如果你銷售的是網路內建的智能，如果你銷售的是驅動這些功能的能力，那麼這些用例就非常引人注目。

I think from the beginning, we also always said that Cloudflare, one of the first tenants of Cloudflare was never lose on price. And I think that forced us to be efficient from the beginning. And so customers, I think, in this time where everyone is looking for ways to figure out how they can save money on their IT budgets and where many other vendors are trying to figure out how they can either hold or raise prices, I think we can continue to be pushing forward and taking share and especially taking that high-margin share from both existing hardware vendors who are having a hard time even delivering their products, as well as other cloud vendors that, again, I think are not as efficient as we've been.

我想從一開始，我們也一直說，Cloudflare，Cloudflare 的第一批租戶之一，從來沒有在價格上虧過。我認為這迫使我們從一開始就提高效率。因此，我認為，在每個人都在想方設法節省 IT 預算，而許多其他供應商也在想方設法維持或提高價格的當下，我們可以繼續向前邁進，搶佔市場份額，尤其是從那些甚至難以交付產品的現有硬體供應商以及其他雲端供應商那裡搶佔高利潤份額，我認為這些供應商的效率不如我們。

So I think that's been key to our story since the earliest days. It will continue to be key to our story. And I think it's that efficiency is a hallmark of who we are at Cloudflare.

所以我認為從一開始這就是我們故事的關鍵。它將繼續成為我們故事的關鍵。我認為效率是 Cloudflare 的標誌。

Awesome. Thank you for those details. And maybe on this one for Thomas. When can we kind of expect this gross margin strategy to show off in the numbers.

驚人的。感謝您提供這些詳細資訊。也許這個適合托馬斯。我們什麼時候可以期待這種毛利率策略在數字上顯現出來。

I'm not sure what you mean by showing up in the numbers. I think that we have been able to digest the significant revenue growth that we have been able to digest the significant traffic growth that Matthew just alluded to, and been able to scale at a flat to up gross margin, I think is already a testament to the elasticity of the network.

我不確定你說的出現在數字中是什麼意思。我認為我們已經能夠消化馬修剛才提到的顯著的收入增長，我們已經能夠消化顯著的流量增長，並且能夠以平穩或上升的毛利率擴大規模，我認為這已經證明了網絡的彈性。

And I just want to reiterate that because I think that is our -- one of our competitive mote, the ability that all products are running on every server in every city. And because of that, the complete network service, are your decrease of freedom to manage cost and demand and supply every server that we add, every city that we add regardless of where in the world at decrease of freedom to manage the flexibility and the elasticity of this network.

我只想重申這一點，因為我認為這是我們的競爭優勢之一，即所有產品都能在每個城市的每台伺服器上運作。正因為如此，整個網路服務都會減少您管理成本和需求的自由度，我們添加的每個伺服器、我們添加的每個城市，無論在世界何處，都會減少您管理網路靈活性和彈性的自由度。

So I think you see that already today. We've seen tremendous growth product-wise, revenue-wise, traffic-wise, every metric that you look at that would measure that and have been able to digest that in stable to slightly up gross margins. I think it's already a testament to that.

所以我想你今天已經看到了這一點。我們看到產品、收入、流量等方面都取得了巨大的成長，所有可以衡量這些成長的指標都能夠反映出這一點，並且我們能夠透過穩定或略微上升的毛利率來消化這些成長。我認為這已經證明了這一點。

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

您的下一個問題來自威廉布萊爾的詹姆斯布林。

Just sort of on that point a little bit. So are you basically sort of managing to kind of a breakeven non-GAAP operating income line, plus or minus a couple of million here just to maximize the revenue?

只是稍微談談這一點。那麼，您基本上是在設法實現非 GAAP 營業收入的收支平衡，在此基礎上加減數百萬，以實現收入最大化嗎？

And then just from an expansion standpoint. As you build out more network, more point of presence, does that enable you to go deeper into some of the multinationals that right now maybe you don't have access to because of that?

然後僅從擴展的角度來看。隨著您建立更多的網路、更多的存取點，這是否使您能夠更深入地接觸一些目前您可能無法接觸到的跨國公司？

Sure, Jim. So I think that we've been very consistent at saying that we are going to hold as close to breakeven on our operating margin as we can. I said on a previous call that if we showed massively positive earnings per share, that would mean something that we did something wrong because if we can continue to grow at the rates that we're guiding towards, there's nowhere else we should be putting that money other than back into the business to grow the business as quickly as possible.

當然，吉姆。因此我認為，我們一直非常一致地表示，我們將盡可能保持我們的營業利潤率接近損益兩平。我在之前的電話會議上說過，如果我們的每股收益大幅為正，那就意味著我們做錯了什麼，因為如果我們能夠繼續以我們預期的速度增長，那麼除了將資金重新投入到業務中以盡快發展業務之外，我們不應該再將這筆錢投入到其他任何地方。

And so I think that we are doing that, we've been very consistent in delivering that message. I don't think there's anything that has changed about that strategy. And again, I think we're managing towards a breakeven on operating margin.

所以我認為我們正在這樣做，我們一直在非常一致地傳遞這個訊息。我認為該策略沒有任何改變。而且我認為我們正在努力實現營業利潤率的收支平衡。

In terms of the POPs, I think that -- I mean, we're already in well over 100 countries around the world. I think that when multinationals look to us, it's not our POP presence that has ever been, certainly, since we went public, standing in the way of them adopting us. And I think that if you look at the companies that we're highlighting in some of the examples, these are almost all massive, multinational companies that rely on our network, and think that it's the case.

就 POP 而言，我認為——我的意思是，我們的業務已經遍布全球 100 多個國家。我認為，當跨國公司向我們尋求幫助時，自從我們上市以來，我們的 POP 存在就一直沒有阻礙他們採用我們。我認為，如果你看看我們在一些例子中強調的公司，你會發現它們幾乎都是依賴我們網路的大型跨國公司，並認為情況確實如此。

I think the thing which is powerful about as we build out more POPs is that counterintuitively, because of the design of our network and because of the efficiency of our network that both Thomas and I just alluded to, it actually drives our cost down over time rather than driving it up. It takes a certain amount of servers in order to process a certain number of requests. So your CapEx is actually driven by the amount of usage of your service more than anything else.

我認為，當我們建立更多 POP 時，其強大之處在於，與直覺相反，由於我們的網路設計和網路效率（正如 Thomas 和我剛才提到的），它實際上會隨著時間的推移降低我們的成本，而不是使其上升。需要一定數量的伺服器來處理一定數量的請求。因此，您的資本支出實際上更多是由您服務的使用量決定的。

What is powerful is because we have done the hard work on the networking and software side to make it so that any server, anywhere can handle any request, that means that as we continue to expand our network out that we're able to directly interconnect with the various ISPs and eyeball networks around the world and drive our cost down for things like bandwidth, co-location and other variable costs that are part of our business.

其強大之處在於，我們在網絡和軟體方面做了大量工作，使得任何地點的任何伺服器都可以處理任何請求，這意味著隨著我們不斷擴展網絡，我們能夠直接與世界各地的各種 ISP 和眼球網絡互連，並降低頻寬、主機託管和其他業務變動成本。

And so I think that, that's decomposing a little bit what the reason for our ability to continue to expand. And if in the future we need the darn snorkels and dive to the bottom of the ocean in order because we can get more efficiency in our network by putting a POP somewhere there, we are going to continue to do whatever is necessary to be able to deliver our services as efficiently and cost effectively as possible.

所以我認為，這稍微分解了我們能夠繼續擴張的原因。如果將來我們需要潛水呼吸管並潛入海底，因為我們可以透過在某個地方放置 POP 來提高網路效率，我們將繼續盡一切必要努力盡可能高效、經濟地提供我們的服務。

Your next question comes from the line of Adam Borg with Stifel.

您的下一個問題來自 Stifel 的 Adam Borg。

Maybe just for Matthew on the federal vertical. I just hoping you could provide an update just on fed ramp and the opportunities that you see. Obviously, you've seen some traction there with the joint win with Accenture, but just curious how you're thinking about the federal opportunity in 2022 more broadly.

也許只是針對聯邦垂直領域的馬修。我只是希望您能提供有關聯準會利率坡道和您所看到的機會的最新消息。顯然，您已經看到了與埃森哲聯合獲勝的一些進展，但我好奇您如何更廣泛地看待 2022 年的聯邦機會。

Yes. Federal is a big opportunity for us. FedRAMP we think we'll continue to unlock that. We got word actually today that we have thumbs up from our sponsoring agency and are just waiting kind of in line with the overall federal agency to get that approved. So we think that's all going well. We've done everything that we can do, and it's a little bit like being at the DMV. You've got to kind of just wait for your number to get called. But we're confident that it will get called hopefully sooner than later. And if anyone federal DMV is listening in, there's a lot of agencies that want to use us. So hopefully, we can meet that requirement.

是的。聯邦對我們來說是一個巨大的機會。 FedRAMP 我們認為我們將繼續解鎖這一點。事實上，我們今天得到消息說，我們已經獲得了贊助機構的批准，並且正在等待整個聯邦機構的批准。所以我們認為一切進展順利。我們已經做了所有能做的事情，這有點像在車管所 (DMV) 一樣。您只需等待您的號碼被叫到即可。但我們堅信，這項呼籲很快就會落實。如果有聯邦車輛管理部門 (DMV) 正在監聽，就會有很多機構想要利用我們。所以希望我們能夠滿足這項要求。

That is not holding us back from working with Accenture as well as other partners, and we've continued to see significant interest. I think the thing that I would come back to is the amount of trust that we have built in the sort of C-level equivalent of the federal government. The number of calls that our team, and including myself, have received from the people who are really trusted with securing the U.S. infrastructure, to understand what's going on in Ukraine, to ask us for help, protecting the infrastructure in the United States, I think that, that speaks incredibly well of us.

這並沒有阻止我們與埃森哲以及其他合作夥伴的合作，我們繼續看到他們的濃厚興趣。我想我要回顧的是，我們對相當於聯邦政府的高層官員建立了多少信任。我們的團隊，包括我自己在內，接到了來自那些真正被信任負責保護美國基礎設施的人打來的大量電話，他們想了解烏克蘭的情況，並向我們尋求幫助，保護美國的基礎設施，我認為這充分說明了我們的出色表現。

We actually launched, in partnership with CrowdStrike, as well as Ping Identity, in the quarter the Critical Infrastructure Protection Act. I was really honored by the White House is stepping up and saying that, that was something that they recommended any hospitals, utilities, or energy companies adopt as quickly as possible. So I think that we have an enormous amount of goodwill within the government. I think we are moving forward and think that there is an enormous opportunity to continue to deliver on that goodwill. And any day now, hopefully, the FedRAMP DMV will call our number, and we'll be able to announce that. That process is formally behind us.

實際上，我們在本季與 CrowdStrike 和 Ping Identity 合作推出了《關鍵基礎設施保護法案》。我真的很榮幸白宮能夠站出來表示，這是他們建議所有醫院、公用事業公司或能源公司盡快採取的做法。所以我認為我們政府內部有著巨大的善意。我認為我們正在向前邁進，並且認為有巨大的機會繼續履行這一善意。現在，希望 FedRAMP DMV 隨時撥打我們的電話，然後我們就能宣布這項消息。這一進程已正式結束。

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

您的下一個問題來自 Needham 的 Alex Henderson。

First off, I wanted to really compliment you guys on what a great job you've done protecting both the Ukrainian infrastructure, as well as the reporters that needed there and continuing to deliver access to Western news flow into Russia. It's really important stuff.

首先，我真心要讚揚你們，你們在保護烏克蘭基礎設施和需要在那裡工作的記者方面做得非常出色，並且繼續向俄羅斯提供西方新聞管道。這確實是一件重要的事情。

The question I wanted to ask was really around the Internet traffic question asked earlier. And maybe you could give us a couple of data points on the change in your coding total. But the traffic, obviously, up 75%, is well ahead of the growth in the marketplace, which I think is around 30%. So can you update us on where you are in terms of what percentage of Internet traffic you're carrying?

我想問的問題實際上是圍繞著之前提出的網路流量問題。也許您可以向我們提供一些有關您的編碼總數變化的數據點。但流量顯然成長了 75%，遠遠超過了市場的成長速度，我認為市場的成長速度約為 30%。那麼，您能否告訴我們，您所承載的網路流量佔比是多少？

And second, along the same lines, it's my understanding that API traffic has more than doubled over the last 18 months in terms of its rate of growth, from over 150% to something in excess of 300%, which ultimately suggests that there's very high rates of growth in the domain, the domain and domain to user traffic, which is obviously a key part of what you guys do, protecting and optimizing and accelerating that traffic. So can you talk to us a little bit about where you are on the statistics in terms of share? And what the implication of that API growth rate is? I realize you're not being paid per bit, but rather that would imply very rapid acceleration in the number of domains that are being traffic, too.

其次，同樣地，據我了解，API 流量的成長率在過去 18 個月中翻了一倍多，從 150% 以上增加到 300% 以上，這最終表明域、域和域到用戶流量的增長率非常高，這顯然是你們工作的關鍵部分，即保護、優化和加速流量。那麼，您能否向我們簡單介紹一下您在份額統計方面的狀況？ API 成長率意味著什麼？我知道你不是按比特付費的，但這也意味著流量網域數量的快速成長。

Yes, Alex, first of all, thank you for the kudos at the beginning. It's been a quarter where a lot of our team has been working tireless nights to make sure that as much of the Ukrainian infrastructure stays online and that services like 1.1.1.1 continue to allow people in parts of the world where they may not have free access to the Internet for them to be able to see what's happening. And I think that, that that's something that I'm really proud of our team to have done, and I appreciate you calling it out.

是的，亞歷克斯，首先，感謝你一開始的讚揚。本季度，我們團隊的許多成員都日以繼夜地工作，以確保盡可能多的烏克蘭基礎設施保持在線，並確保 1.1.1.1 等服務能夠繼續讓世界上那些可能無法免費訪問互聯網的地區的人們能夠了解正在發生的事情。我認為，我真的為我們的團隊所做的事情感到自豪，我很感謝你的指出。

In terms of Cloudflare's percentage of Internet traffic, I think it's -- we don't really -- we know what our numerator is, but we don't know what the denominator is. And I don't think there's a good source of that. I think that we look at some proxies for that in other places. One is what percentage of the top million websites are behind us. And that number is around 20% today. I think what that underrepresents is a lot of our other products. It doesn't take into account products like our zero trust products, it doesn't take into account things like Magic Transit and other products.

就 Cloudflare 的網路流量百分比而言，我認為——我們實際上並不知道——我們的分子是什麼，但我們不知道分母是什麼。我不認為這是一個好的來源。我認為我們在其他地方研究過一些代理。一是前一百萬的網站中，有多少比例落後於我們。如今，這一數字約為 20%。我認為這低估了我們的許多其他產品。它沒有考慮到我們的零信任產品之類的產品，也沒有考慮到 Magic Transit 和其他產品之類的產品。

But from a just pure what percentage of the web uses Cloudflare on, if you measure that using third-party sources, it's right around 20%. For API, I think that, that has been a trend that we've seen for quite some time, more and more of the traffic that passes through Cloudflare, its API traffic. In the quarter, we announced our updated API protection suite. We've seen really great adoption for that. Again, I think it's one of the things where it's all sort of the same protocols, but being able to understand that this is an API, validate that API, help developers really make sure that the schema that is being sent to and from that API is correct. Those are all things that our network is very good at delivering, and we're seeing strong customer interest and strong customer growth from that.

但從純粹的網路使用 Cloudflare 的百分比來看，如果使用第三方來源進行測量，則約為 20%。對於 API，我認為，這是我們相當長一段時間以來看到的趨勢，越來越多的流量通過 Cloudflare，即其 API 流量。本季度，我們發布了更新的 API 保護套件。我們已經看到了它被廣泛採用。再說一次，我認為這是所有相同協定的事情之一，但能夠理解這是一個 API，驗證該 API，幫助開發人員真正確保發送到該 API 和從該 API 發送的模式是正確的。這些都是我們的網路非常擅長提供的服務，我們看到了客戶的強烈興趣和強勁的客戶成長。

And the last thing I'd say is that Workers is a big -- there is no easier way to build an API today than on Workers. And I think that next week, during Platform Week, we're going to have a bunch of examples of customers and companies and developers that are doing exactly that. And I think that that's going to be a bigger and bigger piece of the Workers story going forward.

最後我想說的是，Workers 非常重要——如今沒有比在 Workers 上建立 API 更簡單的方法了。我認為下週平台週期間，我們將會有許多客戶、公司和開發人員正在這樣做的例子。我認為這將成為未來工人故事中越來越重要的一部分。

If I could just throw one additional question. In India and China. Can you give us an update on why that traffic isn't reaccelerating at a faster rate? And when it will start to eclipse the company averages?

我可以再問一個問題嗎？在印度和中國。您能否告訴我們為什麼交通沒有以更快的速度重新加速？什麼時候它會開始超越公司平均？

So I don't think we've broken out the traffic from India and China, and I don't know precisely what the growth rates are.

因此，我認為我們還沒有統計出印度和中國的流量，而且我也不清楚具體的成長率是多少。

Yes, that was a revenue question, Matt.

是的，這是一個收入問題，馬特。

From a revenue perspective. So again, I think that those are both regions that are interesting to us. They're very different from one another. I think that we have seen a lot of success selling into the Indian market and been able to continue to expand our services there. And we've done a great job at both selling to customers, as well as finding ways to interconnect with what is a very complicated ISP model in India.

從收入角度來看。所以，我再次認為這兩個地區都令我們感興趣。它們彼此之間有很大的不同。我認為我們在印度市場取得了很大成功，並且能夠繼續在那裡擴展我們的服務。我們在向客戶銷售產品以及尋找與印度非常複雜的 ISP 模型互連的方法方面都做得非常出色。

In China, we've always worked with partners. And so we have been a long-time partner with Baidu. We are a more recent partner with JD Cloud. And I think that in both -- in that case, that partnership is going extremely well. And again, it is complicated for any Western company to be operating in China. And so the fact that we have now been doing so since 2015, I think shows -- that shows the power of what we've been able to deliver.

在中國，我們一直與合作​​夥伴合作。因此，我們一直是百度的長期合作夥伴。我們是京東雲的最新合作夥伴。我認為，從這兩方面來看，這種合作關係進展非常順利。而且，任何西方公司在中國開展業務都是很複雜的。因此，我認為，我們自 2015 年以來就一直在這樣做，這表明了我們所取得的成就的力量。

Also, it's not always the purpose that we're trying to generate revenue from inside of China. The value of us having a network that extends into China is at least in equal part, if not greater, that we can form multinational companies that you can with one single network, deliver services to every country on earth, including inside of China. And I think that, that is unique for us to be able to do that and have the same features and functionality largely there that we have around the rest of the world. So I think both of those are markets at have their own complications, but we continue to operate in and see success.

此外，我們的目的並不總是試圖從中國國內創造收入。我們擁有一個延伸到中國的網絡的價值至少在某種程度上，如果不是更大的話，就是我們可以組成跨國公司，透過一個網絡，向地球上的每個國家（包括中國境內）提供服務。我認為，我們能夠做到這一點並且在那裡擁有與世界其他地方相同的特性和功能，這對我們來說是獨一無二的。所以我認為這兩個市場都有各自的複雜性，但我們會繼續運作並取得成功。

Operator, can we take one more question, please?

接線員，我們可以再回答一個問題嗎？

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

當然。您的最後一個問題來自 Evercore 的 Amit Daryanani。

Perfect. I guess I have 2 as well. I'll ask them at the same time. First off, I was hoping you could just talk about this growing concern of a recession in Europe and in America. So in that context, are you seeing any shift in your customers' buying patterns or deal closing rates or anything? Just any impact from risk of recession to how your sales team is operating?

完美的。我想我也有 2 個。我會同時問他們。首先，我希望您能談談人們對歐洲和美國經濟衰退日益增長的擔憂。那麼在這種情況下，您是否看到客戶的購買模式或交易成交率或其他方面發生了任何變化？經濟衰退的風險會對您的銷售團隊的運作產生什麼影響嗎？

And then if you can also just clarify, from an M&A perspective, how is that embedded into your revenue and operating profit guide for June quarter? What is the impact from the deals, if you may?

然後，您是否可以從併購角度澄清一下，這如何體現在 6 月季度的營收和營業利潤指南中？請問這些交易有何影響？

Sure. I'll take the first question, and then Thomas can close out with the second. As I said, I think that this will -- when the history books are written, turn out to be the most complicated quarter that tech companies have lived through, certainly since Q1 of 2020. And I think that there is real risk of a recession going forward. And even aside from that, I think that there is definitely we're all seeing the inflationary environment and the concerns around that.

當然。我先回答第一個問題，然後湯瑪斯可以回答第二個問題。正如我所說，我認為，當歷史記錄下來時，這將是科技公司經歷過的最複雜的季度，肯定是自 2020 年第一季以來的最複雜的一個季度。我認為未來確實存在經濟衰退的風險。除此之外，我認為我們都看到了通膨環境以及對此的擔憂。

What I like, though, is I can't imagine a company that is better positioned for a situation like that than we are. We're offering a service which is not a nice to have, but a must-have. We're offering a service in a way which saves customers money over what their existing solutions are. We've deployed the network in such a way that we can make sure that we service customers as we need them. And so what we saw in the quarter was definitely fires concern over what was going on in the world. But in many cases, that was actually having them come to us.

然而，我喜歡的是，我無法想像有哪家公司比我們更適合應付這種情況。我們提供的服務不是一種可有可無的服務，而是一種必要的服務。我們提供的服務可以讓客戶比他們現有的解決方案節省更多資金。我們以這樣的方式部署網絡，以確保我們能夠按照客戶需求為他們提供服務。因此，我們在本季看到的確實是人們對世界正在發生的事情的擔憂。但在很多情況下，這其實是讓他們來找我們。

And so I think that as there are challenging economic times, we are extremely well positioned to provide what are critical services to make sure the Internet continues to work. And to me, it feels a lot like the beginning of COVID, where I think there's a lot of concern that's out there. But over time, what we find is, time and time and time again, customers are turning to us, saying we want to consolidate our spend from instead of spending across 10 different vendors, we want to put it all behind you. They like the fact that we have that bundled integrated approach, and they like the fact that we're able to save them money over what their legacy solutions are that are in place.

因此我認為，在經濟面臨挑戰的時期，我們完全有能力提供關鍵服務，確保網路持續運作。對我來說，這感覺很像新冠疫情的初期，我認為人們有很多擔憂。但隨著時間的推移，我們發現，客戶一次又一次地轉向我們，說我們想要整合我們的支出，而不是將支出轉移到 10 個不同的供應商，我們想把這一切都拋在腦後。他們喜歡我們採用的捆綁式整合方法，也喜歡我們能夠透過現有的傳統解決方案為他們節省金錢。

So I think that, that positions us very well for what may be -- what was -- what I think was already a challenging quarter for many companies. and I think it might be a challenging period for companies over the next period to come.

所以我認為，這讓我們為可能出現的——我認為對許多公司來說已經是一個充滿挑戰的季度——做好了充分的準備。我認為接下來的一段時期對企業來說可能是個充滿挑戰的時期。

And addressing your guidance question, I think we followed our standard approach of trying to be thoughtful and prudent. When it came to the exposure to Russia, Ukraine and Belarus. So we already mentioned that we -- that was a less than 1% headwind revenue in the first quarter, and we reflected this also in the guidance we issued for the current quarter and for the rest of the year.

關於您的指導問題，我認為我們遵循了標準方法，力求深思熟慮和謹慎。當談到對俄羅斯、烏克蘭和白俄羅斯的接觸。因此，我們已經提到，第一季的逆風收入不到 1%，我們也在本季和今年剩餘時間發布的指引中反映了這一點。

And as I said in the prepared remarks, the acquisition of Area 1 is also reflected in guidance, both for the second quarter as well as for the full year. And that is true both for revenue, but less than 1% contribution for the year. But it's also true for the dilutive impact on profitability. So all are reflected in the guidance we gave.

正如我在準備好的演講中所說，對 1 號區域的收購也反映在第二季和全年的指引中。這對於收入來說確實如此，但全年貢獻卻不到 1%。但這對於獲利能力的稀釋影響也是真實的。所以這一切都反映在我們給予的指導上。

That's all the time we have for questions. I'd like to turn the call back to CEO, Matthew Prince, for closing remarks.

我們回答問題的時間就這麼多了。我想將電話轉回給執行長馬修‧普林斯 (Matthew Prince)，請他作最後發言。

This has been a challenging quarter as we've watched what world events have taken place. I'm incredibly proud of our team for having made sure that the Ukrainian infrastructure stayed online, that the people in the world could see what was really happening and providing a network with Cloudflare that really can stand up to any challenge that's ahead.

正如我們觀察世界發生的事件一樣，這是一個充滿挑戰的季度。我為我們的團隊感到無比自豪，他們確保了烏克蘭的基礎設施保持在線，讓全世界的人們能夠看到真實情況，並透過 Cloudflare 提供了一個真正能夠應對未來任何挑戰的網路。

I really appreciate all the work of all of the Cloudflare employees. I appreciate all of our customers. I'm looking forward to seeing many of you at our Investor Day and our Customer Day, which is next week in New York, and stay tuned for a lot of announcements. It's going to be a busy week for us, because it's also Platform Week, which is one of our Innovation Weeks, and we're expecting to announce a number of really great features. Thank you so much.

我非常感謝所有 Cloudflare 員工的努力。我感謝我們所有的顧客。我期待在下週於紐約舉行的投資者日和客戶日上見到你們，並請繼續關注我們的大量公告。對我們來說這將是忙碌的一周，因為這也是平台週，也是我們的創新週之一，我們期待宣布許多非常棒的功能。太感謝了。

This concludes today's conference call. Thank you for joining. You may now disconnect.

今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。