New Relic Inc (NEWR) 2023 Q4 法說會逐字稿

Good afternoon. My name is Hannah, and I will be your conference operator today. At this time, I would like to welcome everyone to the New Relic Fourth Quarter Fiscal Year 2023 Earnings Conference Call.

下午好。我叫漢娜，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 New Relic 2023 財年第四季度收益電話會議。

(Operator Instructions)

（操作員說明）

Thank you. It is now my pleasure to introduce your host, Ingo Friedrichowitz, Senior Vice President of Investor Relations and Corporate Finance. Thank you. You may begin.

謝謝。現在我很高興向您介紹主持人，投資者關係和公司財務高級副總裁 Ingo Friedrichowitz。謝謝。你可以開始了。

Good afternoon, and welcome to our fourth quarter and fiscal year 2023 earnings call. On the call with me are Bill Staples, our Chief Executive Officer; and David Barter, our Chief Financial Officer. On our Investor Relations website, you can find the earnings press release and investor summary slide deck, which is intended to supplement our prepared remarks during today's call. In addition, an audio replay of this call will be available on our website, ir.newrelic.com in a few hours.

下午好，歡迎參加我們的第四季度和 2023 財年財報電話會議。與我一起通話的是我們的首席執行官 Bill Staples；以及我們的首席財務官 David Barter。在我們的投資者關係網站上，您可以找到收益新聞稿和投資者摘要幻燈片，這些幻燈片旨在補充我們在今天的電話會議期間準備好的言論。此外，幾小時後我們的網站 ir.newrelic.com 上將提供本次通話的音頻重播。

During today's call, we will make forward-looking statements, including about our business outlook and strategies, which we base our predictions and expectations on as of today. Our actual results could differ materially due to a number of risks and uncertainties, including the risk factors in our fiscal year 2023 Form 10-K on file with the SEC. Also during this call, we will discuss certain non-GAAP financial measures. Unless otherwise noted, all of the expense and profitability metrics discussed on today's call are non-GAAP results. We have reconciled those to the most directly comparable GAAP financial measures in our earnings release. These non-GAAP measures are not intended to be a substitute for our GAAP results.

在今天的電話會議中，我們將做出前瞻性聲明，包括我們的業務前景和戰略，這是我們今天的預測和期望的基礎。由於許多風險和不確定性，包括我們向 SEC 備案的 2023 財年 10-K 表格中的風險因素，我們的實際結果可能會存在重大差異。此外，在本次電話會議中，我們還將討論某些非公認會計準則財務指標。除非另有說明，今天電話會議討論的所有費用和盈利指標均為非公認會計準則結果。我們已在收益報告中將這些指標與最直接可比的公認會計準則財務指標進行了調整。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。

And with that, I'd like to turn it over to Bill.

說到這裡，我想把它交給比爾。

Thank you, Ingo. I'm pleased with our fourth quarter results and execution, ending our fiscal year 2023 on a strong note. 2022 tested nearly every company's agility and focus amidst economic uncertainty, inflation and market volatility. Thousands of [Relics] around the world rising to the occasion and delivered consistent year-over-year revenue growth at the same 18% level as prior year. We also made steady progress against our strategy to pioneer our category's first true consumption business model.

謝謝你，英戈。我對我們第四季度的業績和執行情況感到滿意，我們以強勁的勢頭結束了 2023 財年。 2022 年，在經濟不確定性、通貨膨脹和市場波動的情況下，幾乎所有公司都面臨著敏捷性和專注力的考驗。世界各地數以千計的 [Relics] 紛紛響應，並實現了與去年相同 18% 水平的持續同比收入增長。我們在開創該類別首個真正的消費商業模式的戰略方面也取得了穩步進展。

In Q4, over 80% of our revenue came from our consumption business, growing at 55% year-over-year in total and over 30% year-over-year, excluding the benefit of migrations. This demonstrates just how competitive our new platform and business model is in the market today. The product team defined a year through innovation, delivering many market-leading launches including Data Plus, our premium data SKU, our major user experience upgrades and vulnerability management, just to name a few.

第四季度，我們80%以上的收入來自消費業務，總體同比增長55%，剔除遷移帶來的收益同比增長超過30%。這證明了我們的新平台和業務模式在當今市場上的競爭力。產品團隊通過創新定義了這一年，推出了許多市場領先的產品，包括 Data Plus、我們的優質數據 SKU、我們的主要用戶體驗升級和漏洞管理等等。

They also got a quick start to this fiscal year with a brand-new unified APM, infra and logs experience, and we're first to market with an OpenAI monitoring solution and observability first generative AI assistant, which is already defining the modern and visibility experience for the next decade. To be able to deliver that breadth of innovation while simultaneously driving an 8-point gross margin improvement over the course of the year is astounding and illustrates New Relic's world-class engineering.

他們還通過全新的統一 APM、基礎設施和日誌體驗在本財年快速啟動，我們率先向市場推出 OpenAI 監控解決方案和可觀察性第一的生成式 AI 助手，該助手已經定義了現代性和可見性未來十年的經驗。能夠提供如此廣泛的創新，同時在一年內將毛利率提高 8 個百分點，這令人震驚，並說明了 New Relic 的世界一流工程技術。

The whole company executed an impressive shift towards profitable growth, delivering durable double-digit operating income this quarter, ending the year at a new high watermark for the company with $26 million of operating income in Q4. Consistent year-over-year revenue growth, first to market innovation increased margins and profitability with so much distraction in the world today, there are not many companies who are closing the year on such a positive note.

整個公司在盈利增長方面取得了令人印象深刻的轉變，本季度實現了持續兩位數的營業收入，第四季度營業收入達到 2600 萬美元，創下了公司年終新高。持續的同比收入增長、首先進入市場的創新提高了利潤率和盈利能力，當今世界有如此多的干擾，沒有多少公司能夠以如此積極的態度結束這一年。

I'm very grateful for such terrific customers and all the hard work across the company, which made FY '23 a terrific year. Let's now dive into how our go-to-market execution unfolded this quarter. We once again saw strong new logo growth in the fourth quarter, adding more than 800 net new paid platform customers, a rate, which is significantly ahead of many other competitors in our category.

我非常感謝如此出色的客戶以及整個公司的辛勤工作，這使得 23 財年成為了了不起的一年。現在讓我們深入了解本季度我們的上市執行情況。我們在第四季度再次看到新徽標的強勁增長，淨增加了 800 多個新付費平台客戶，這一速度明顯領先於我們類別中的許多其他競爭對手。

As you know, New Relic's success in growing new paying customers is a result of our unique and efficient product-led growth motion, which starts with a perpetual free tier that allows customers to use the product and fall in love with it at their own pace and then pay with the credit cards as they begin to scale usage. We then naturally offer them additional discounts under contracts as they decide to commit annual or multiyear budgets to New Relic.

如您所知，New Relic 在增長新付費客戶方面的成功歸功於我們獨特且高效的產品主導型增長舉措，該舉措從永久免費套餐開始，允許客戶按照自己的節奏使用該產品並愛上它然後當信用卡開始擴大使用量時用信用卡付款。當他們決定向 New Relic 承諾年度或多年預算時，我們自然會根據合同向他們提供額外折扣。

Our free tier now reflects more than 41,000 active customers. And it includes engineers and teams and organizations of all sizes, including government, large enterprise, digital natives and entrepreneurs in every segment and vertical. These free tier customers, together with our 16,000 paid customers, constitute a customer base of more than 57,000 actively engaged organizations, making New Relic the most ubiquitously adopted observability platform.

我們的免費套餐目前擁有超過 41,000 名活躍客戶。它包括各種規模的工程師、團隊和組織，包括各個細分市場和垂直領域的政府、大型企業、數字原住民和企業家。這些免費客戶與我們的 16,000 名付費客戶一起構成了超過 57,000 個積極參與組織的客戶群，使 New Relic 成為最普遍採用的可觀察平台。

Let me share a couple of examples of large new-logo land, but we drove head-to-head wins versus leading competitors. First, we closed an agreement with a leading telecommunications provider to standardize on New Relic. This customer was using a host-based pricing model competitor and experienced overages, which constrained them from getting all the capabilities needed to achieve full stack observability. Second, our leading Wall Street rating agency signed a 6-figure savings plan with New Relic. After, their prior observability vendor was not able to achieve the customers' uptime and reliability targets, even after spending 5x more than originally planned.

讓我分享幾個大型新標誌土地的例子，但我們在與領先競爭對手的正面交鋒中取得了勝利。首先，我們與一家領先的電信提供商達成了一項協議，以實現 New Relic 的標準化。該客戶使用的是競爭對手基於主機的定價模型，並且經歷了超額，這限制了他們獲得實現全堆棧可觀察性所需的所有功能。其次，我們領先的華爾街評級機構與 New Relic 簽署了一項 6 位數的儲蓄計劃。此後，他們之前的可觀測性供應商無法實現客戶的正常運行時間和可靠性目標，即使花費比原計劃多 5 倍也是如此。

With New Relic, this customer now has access to more than 30 capabilities in one platform with better cost scaling to enable the agency to achieve their business goals. We are winning new customers through our growth engine at industry-leading rates as well as new strategic [lenders] who are standardizing on New Relic. These wins also reflect the economic reality that expenses matter and customers are increasingly focused on getting the best ROI for their observability investments, making New Relic a leading choice.

借助 New Relic，該客戶現在可以在一個平台上訪問 30 多種功能，並具有更好的成本擴展能力，使該機構能夠實現其業務目標。我們正在通過我們的增長引擎以行業領先的速度贏得新客戶，以及正在對 New Relic 進行標準化的新戰略[貸款人]。這些勝利也反映了經濟現實，即費用很重要，而且客戶越來越注重為其可觀測性投資獲得最佳投資回報率，這使得 New Relic 成為領先選擇。

Let's turn to our customer base. It's important to remember that we tend to land small through our efficient PLG sales motion and then expand in the ensuing quarters. As a result of this motion, the majority of our growth in any given quarter comes from our customer base. In the past few quarters, we've been focused on helping customers expand their contracts in situations where their consumption exceeds their contractual commitment. Equally, given economic pressures, we've been helping customers consolidate their tools and provide support to assist to their cloud and digital transformation initiatives as each continues to be a top CIO priority even in the current environment.

讓我們轉向我們的客戶群。重要的是要記住，我們傾向於通過高效的 PLG 銷售行動進行小規模投資，然後在接下來的幾個季度進行擴張。由於這項動議，我們在任何特定季度的增長大部分都來自我們的客戶群。在過去的幾個季度中，我們一直致力於幫助客戶在消費超出合同承諾的情況下擴大合同範圍。同樣，考慮到經濟壓力，我們一直在幫助客戶整合他們的工具並提供支持，以協助他們的雲和數字化轉型計劃，因為即使在當前環境下，每一項計劃仍然是首席信息官的首要任務。

Let me share just a few examples of how our customers are expanding with us. First, a leading North American retail store chain almost doubled their annual commitment this quarter with New Relic. They have been a long-time customer and decided with this renewal to replace their [logging] solution with New Relic logs as the retailer is rolling out additional instrumentation at their point of sales.

讓我分享一些客戶如何與我們一起擴展的例子。首先，一家領先的北美零售連鎖店本季度對 New Relic 的年度承諾幾乎翻了一番。他們是長期客戶，並決定通過此次更新將他們的[日誌記錄]解決方案替換為 New Relic 日誌，因為零售商正在其銷售點推出額外的儀器。

Second, a global cloud-based communications leader has materially increased their already large commitment to an 8-figure multiyear commitment. A key driver for this expansion has been the customers' standardization on OpenTelemetry, which makes it easier for them to ingest more data from different systems. New Relic was the natural choice for them, given their commitment to OpenTelemetry standard and being a leading contributor in the category.

其次，一家全球云通信領導者大幅增加了其本已巨大的承諾，將多年承諾金額提高到了 8 位數。這一擴展的關鍵驅動力是客戶對 OpenTelemetry 的標準化，這使他們能夠更輕鬆地從不同系統獲取更多數據。鑑於 New Relic 對 OpenTelemetry 標準的承諾並成為該類別的主要貢獻者，因此 New Relic 是他們的自然選擇。

Third, a leading financial services company increased its commitment to New Relic by more than 7x as this financial services company is going through a digital transformation of their front office, they needed to consolidate their various monitoring tools to gain comprehensive insights,to ensure high uptime and reliability. New Relic's platform does exactly that. And for a global business application provider more than doubled its commitment with New Relic upon shifting from a subscription contract to a consumption contract. This shift delivered more value to the customer by unlocking the entire all-in-one platform. While we are pleased with our customer base expansion, we are not immune to cloud optimization trends, which for us takes the form of user and data optimization.

第三，一家領先的金融服務公司將其對 New Relic 的承諾增加了 7 倍以上，因為這家金融服務公司正在對其前台進行數字化轉型，他們需要整合各種監控工具以獲得全面的見解，以確保高正常運行時間和可靠性。 New Relic 的平台正是這樣做的。對於一家全球商業應用程序提供商來說，從訂閱合同轉變為消費合同後，其對 New Relic 的承諾增加了一倍多。這一轉變通過解鎖整個一體化平台為客戶帶來了更多價值。雖然我們對客戶群的擴張感到滿意，但我們也不能免受雲優化趨勢的影響，對我們來說，雲優化的形式是用戶和數據優化。

In the fourth quarter, we all meet expected seasonal pattern, which we anticipated and guided toward this quarter, we saw optimization happening in 2 specific cohorts. First, while we have made steady progress at reducing the gap between consumption and commitment, we continue to see optimization most often occurring when customers are consuming far ahead of their commitment. Second, while we saw steady consumption growth across all spend cohorts, optimization tends to be more pronounced this quarter with our largest spending customers where the largest budgets are set.

在第四季度，我們都達到了預期的季節性模式，這是我們對本季度的預期和指導，我們看到兩個特定群體發生了優化。首先，雖然我們在縮小消費與承諾之間的差距方面取得了穩步進展，但我們仍然看到，當客戶的消費遠遠超過他們的承諾時，最常發生優化。其次，雖然我們看到所有支出群體的消費都在穩定增長，但本季度的優化往往更加明顯，因為我們最大的支出客戶設定了最大的預算。

For example, we were proud to be part of supporting one of the largest online entertainment companies who had a seasonal high, over the holidays, reaching nearly $30 million in annualized consumption run rate but then scaled down usage and drove optimization closer to $10 million annualized consumption during the quarter. They remain a healthy, happy customer of New Relic and appreciate their ability to scale usage on demand and pay only for what they use and avoid peak rate penalty billing, which is standard practice by our competitors.

例如，我們很自豪能夠為最大的在線娛樂公司之一提供支持，該公司在假期期間達到了季節性高點，年化消費運行率達到近 3,000 萬美元，但隨後縮減了使用量，並將優化推向接近 1,000 萬美元的年化消耗率本季度的消費。他們仍然是 New Relic 的健康、快樂的客戶，並欣賞他們按需擴展使用量、僅按使用量付費的能力，避免了高峰費率罰款，這是我們競爭對手的標準做法。

We work with our customers during such optimizations as we believe this deepens the partnership and allows us to grow faster as customers emerge from their optimization efforts. As seen in our strong RPO growth over the last several quarters, customers have opened up room to expand their consumption as their business is ready. We view the current climate as an excellent time to serve customers well and win increased market share.

我們在此類優化過程中與客戶合作，因為我們相信這會加深合作夥伴關係，並使我們能夠隨著客戶從優化工作中脫穎而出而更快地成長。從我們過去幾個季度 RPO 的強勁增長中可以看出，隨著業務準備就緒，客戶已經打開了擴大消費的空間。我們認為當前的形勢是為客戶提供良好服務並贏得更多市場份額的絕佳時機。

Next, I'd like to highlight some of the recent hallmark innovations on our all in one platform. We've strengthened our technical note in multiple areas. First, in generative AI, as I mentioned earlier, we were first to market with our announcement of New Relic Grok, the industry's first observability assistant, which will dramatically simplify users access and ability to derive insights from telemetry data. We were also first to market in our category with MLOps, and first to introduce support for monitoring OpenAI GPT, allowing customers to simultaneously track performance and cost metrics in real time.

接下來，我想重點介紹我們多合一平台上最近的一些標誌性創新。我們在多個領域加強了技術說明。首先，在生成人工智能方面，正如我之前提到的，我們首先發布了 New Relic Grok，這是業界第一個可觀察性助手，它將極大地簡化用戶的訪問和從遙測數據中獲取見解的能力。我們也是第一個在我們的類別中推出 MLOps 的市場，並且第一個推出對監控 OpenAI GPT 的支持，使客戶能夠同時實時跟踪性能和成本指標。

Second, our infrastructure capability has become even more competitive with deep integration to our market-leading APM capabilities so that engineers can truly achieve full stack visibility at 1/3 the cost of competitors. This allows us to build on key wins with Capital One, Confluence and others who moved off leading infrastructure-focused competitors.

其次，我們的基礎設施能力通過與市場領先的APM能力的深度集成而變得更具競爭力，使工程師能夠以競爭對手1/3的成本真正實現全棧可見性。這使我們能夠在與第一資本、Confluence 和其他以基礎設施為重點的領先競爭對手的競爭中取得重大勝利。

And third, we are reaching more developers with launching New Relic CodeStream for all core coding languages. CodeStream delivers insights into software performance, in line with code inside leading developer tools like VS Code, Visual Studio and IntelliJ, empowering more developers to quickly identify issues before they hit production and accelerate engineering velocity.

第三，我們通過針對所有核心編碼語言推出 New Relic CodeStream 來吸引更多開發人員。 CodeStream 提供對軟件性能的洞察，與 VS Code、Visual Studio 和 IntelliJ 等領先開發人員工具中的代碼一致，使更多開發人員能夠在投入生產之前快速識別問題並加快工程速度。

We're excited to share more about our platform advantages and future innovation road map at Analyst Day this Thursday. Let's now shift to the road ahead. We're operating in a segment with persistent secular tailwinds: digital transformation, cloud migration as well as increased technical complexity now including generative AI, which is driving an explosion of new applications that also need observability. In the short term, cloud optimizations remain a fact of life. But in the medium to long term, I'm confident observability will continue to grow in our consumption business model, which is rooted in customer success and the promise of paying only for what you use.

我們很高興在本週四的分析師日上分享更多有關我們的平台優勢和未來創新路線圖的信息。現在讓我們轉向前面的道路。我們所處的細分市場具有持續的長期順風：數字化轉型、雲遷移以及現在包括生成式人工智能在內的技術複雜性的增加，這正在推動同樣需要可觀察性的新應用程序的爆炸式增長。從短期來看，雲優化仍然是現實。但從中長期來看，我相信可觀察性將在我們的消費業務模式中繼續增長，這種模式植根於客戶的成功和只為你使用的東西付費的承諾。

We'll continue to strengthen. As Gartner already recognizes becoming the leading customer preferred way of doing business. In FY '23, we successfully grew our consumption business from 56% to 76% of total revenue and exited Q4 at more than 80%. We consider a customer, part of our consumption business when they adopt not only our user and data pricing, but also sign up for 1 of our modern consumption buying programs with incremental usage build automatically and revenue recognized on usage.

我們將繼續加強。正如 Gartner 已經認識到的那樣，它已成為領先的客戶首選的開展業務的方式。在 23 財年，我們的消費業務成功地將佔總收入的比例從 56% 增長到 76%，並以超過 80% 的速度退出第四季度。當客戶不僅採用我們的用戶和數據定價，而且還註冊了我們的現代消費購買計劃之一（自動構建增量使用並根據使用確認收入）時，我們將客戶視為我們消費業務的一部分。

We've been very successful with these migrations and now plan to accelerate our completion of the migration in the next 4 to 6 quarters. Completing the migration of our subscription base will have 2 benefits to the business. First, it unlocks growth potential with customers as indicated in the example I provided earlier. Second, it also means that at the end of that shift, we only have 1 business model, consumption, which will cost less to operate and helps us focus and reduce complexity in the business. We're excited to share more about this plan and additional metrics to help you understand and model the consumption business going forward.

我們在這些遷移方面非常成功，現在計劃在未來 4 到 6 個季度內加快完成遷移。完成訂閱基礎的遷移將為業務帶來兩個好處。首先，它釋放了客戶的增長潛力，如我之前提供的示例所示。其次，這也意味著在轉變結束時，我們只有一種業務模式，即消費，這將降低運營成本，並幫助我們集中精力並降低業務複雜性。我們很高興分享有關此計劃和其他指標的更多信息，以幫助您了解未來的消費業務並對其進行建模。

We hope to see many of you in person at the event this Thursday, and welcome everyone who can't join in person to tune into the live stream. Before turning over to David, I would like to share a few thoughts on growth in our medium- to long-term prospects. I'm incredibly excited about our business. Bookings and consumption growth in Q3 were quite strong. In Q4, we saw bookings strength and many customers increased their consumption in line with prior quarters. We also saw increased optimization by large and hot customers who are naturally focused on efficiency and thereby offsetting otherwise healthy growth.

我們希望在本週四的活動中見到你們中的許多人，並歡迎所有無法親自參加的人觀看直播。在向 David 提問之前，我想分享一些關於我們中長期增長前景的想法。我對我們的業務感到非常興奮。第三季度的預訂和消費增長相當強勁。在第四季度，我們看到預訂量強勁，許多客戶的消費量與前幾個季度持平。我們還看到大型熱門客戶加強了優化，他們自然關注效率，從而抵消了其他方面的健康增長。

Consumption growth came back in March, but the optimization trends limited the rebound through April. We are continuing to focus on what we control and be prudent as we enter the new fiscal year. We will continue to book deals with new and existing customers and close the gap between consumption and commitments. But as with other consumption businesses, we empower customers to decide the timing of their usage. And we must work hard every day to deliver value in order to recognize the revenue they committed to us over the lifetime of their annual or multiyear contracts.

3月份消費增速回升，但優化趨勢限制了4月份的反彈。當我們進入新的財政年度時，我們將繼續專注於我們所控制的事情並保持謹慎。我們將繼續與新老客戶簽訂交易，縮小消費與承諾之間的差距。但與其他消費業務一樣，我們授權客戶決定其使用時間。我們必須每天努力工作，創造價值，以兌現他們在年度或多年合同有效期內向我們承諾的收入。

We also control our pace of innovation and our operational excellence and continue to raise the standards of excellence. We will simplify our business and lower cost by accelerating the exit of our legacy subscription contracts over the next 4 to 6 quarters. This is faster than we contemplated at the start of the calendar year. This is because we see the opportunity to end this year a meaningfully, more efficient and profitable company poised for accelerating growth with the subscription business largely [shed].

我們還控制我們的創新步伐和卓越運營，並繼續提高卓越標準。我們將在未來 4 到 6 個季度加速退出舊訂閱合同，從而簡化業務並降低成本。這比我們年初預期的要快。這是因為我們看到了在今年年底成為一家有意義、更高效、盈利能力更強的公司的機會，該公司有望加速增長，訂閱業務將大幅減少。

We will continue to define our market with leading innovation. Generative AI is a tremendous opportunity for us to dramatically simplify observability and achieve our goal of making the practice ubiquitous for every engineer in team. Our continued investments in delivering a unique and fully integrated APM and logs and infrastructure experience build on our simple all-in-one platform message. During these economic times, there's no better way for customers to achieve the efficiency efforts they seek, while also increasing their top line and improving the productivity of their engineers.

我們將繼續以領先的創新來定義我們的市場。生成式人工智能對於我們來說是一個巨大的機會，可以極大地簡化可觀察性，並實現我們的目標，即讓團隊中的每個工程師都能夠普遍使用這種實踐。我們在提供獨特且完全集成的 APM 以及日誌和基礎設施體驗方面的持續投資建立在我們簡單的一體化平台消息的基礎上。在當前的經濟時期，沒有比這更好的方法來幫助客戶實現他們所尋求的效率努力，同時增加他們的收入並提高工程師的生產力。

I believe our business was designed to perform in tough times. While we may not always see it immediately in our revenue, I believe we're well positioned to take market share and position our company for meaningful growth and profitability.

我相信我們的業務是為了在困難時期表現出色而設計的。雖然我們可能並不總能立即在我們的收入中看到這一點，但我相信我們有能力佔據市場份額，並使我們的公司實現有意義的增長和盈利。

Dave, with that, I'll turn it over to you.

戴夫，這樣，我就把它交給你了。

Thank you, Bill. We exceeded the top end of our guidance for revenue and operating income. Our revenue was $242.5 million, an increase of 18% from a year ago. Operating income was $26.1 million, representing a margin of 10.7%. This excludes the restructuring charge booked in the quarter to write off our excess real estate. Our earnings per share was $0.42 on a diluted share count of 70.2 million. Consumption represented more than 80% of our revenue in the quarter. We're pleased with the continued growth of new customers, customer base expansions and the shift of customers from cloud subscriptions to consumption. We now have approximately 12,000 customers on our consumption business model, up more than 35% from a year ago. Cloud optimization and the seasonal pattern of consumption did impact our Q4 results.

謝謝你，比爾。我們超出了收入和營業收入指導的上限。我們的收入為 2.425 億美元，比去年同期增長 18%。營業收入為 2610 萬美元，利潤率為 10.7%。這不包括本季度為沖銷多餘房地產而記入的重組費用。我們的每股收益為 0.42 美元，稀釋後的股票數量為 7020 萬股。消費占我們本季度收入的 80% 以上。我們對新客戶的持續增長、客戶群的擴大以及客戶從雲訂閱向消費的轉變感到高興。目前，我們的消費業務模式擁有大約 12,000 名客戶，比一年前增長了 35% 以上。雲優化和季節性消費模式確實影響了我們第四季度的業績。

As expected, consumption did decline seasonally below the peak realized in December. However, while consumption did expand in March, it was not until April that we climbed back to the December peak. In the end, the depth of the pullback in consumption and the time it took to return was longer than we expected when we provided our prior guidance. A counterpoint to this trend with the level of customer commitments. During Q4, RPO increased by 14% year-over-year, driven by a healthy number of customer-based expansions. We're pleased with the growth and contractual commitments. We remain encouraged about future growth, knowing how many customers who expanded with us in December and March quarters are not yet consuming in line with their contractual commitments.

正如預期的那樣，消費確實季節性下降，低於 12 月份實現的峰值。然而，雖然3月份消費確實有所擴張，但直到4月份我們才回到12月份的峰值。最終，消費回調的深度和恢復所需的時間比我們之前提供指引時的預期要長。與這一趨勢相反的是客戶承諾的水平。第四季度，在大量基於客戶的擴張的推動下，RPO 同比增長 14%。我們對增長和合同承諾感到滿意。我們對未來的增長仍然感到鼓舞，因為我們知道有多少在 12 月和 3 月季度與我們一起擴張的客戶尚未按照合同承諾進行消費。

Furthermore, customers who had been consuming at elevated levels have come down to healthier levels. We believe these 2 factors position the company for growth in the coming year.

此外，原本消費水平較高的顧客已降至更健康的水平。我們相信這兩個因素將使公司在來年實現增長。

Turning to profitability. We're pleased with the company's progress. Gross margin climbed to 79%, up 1.4 points over last quarter and 8 points compared to last year. This reflects our own cloud optimization initiatives and architectural enhancements. Our cost of revenue continues to decline, while we grow our business and invest to expand on Microsoft Azure and to retire data centers. Our engineering team is not finished with their optimization. They expect to capture more efficiency in the coming year while expanding our cloud footprint to new hyperscalers and regions.

轉向盈利能力。我們對公司的進步感到滿意。毛利率攀升至79%，比上季度提高1.4個百分點，比去年提高8個百分點。這反映了我們自己的雲優化舉措和架構增強。我們的收入成本持續下降，同時我們不斷發展業務並投資擴展 Microsoft Azure 並淘汰數據中心。我們的工程團隊尚未完成優化。他們希望在來年提高效率，同時將我們的雲足跡擴展到新的超大規模企業和地區。

During the fourth quarter, we also took steps towards ensuring we could produce durable double-digit margins. As we communicated in March, we eliminated by our restructuring charge our excess real estate. Over 65% of this charge was non-cash in nature. During the quarter, we also planned our product investment and our sales investment for the coming year. We expect that we will continue investing approximately 25% of revenue in R&D, including the portion more required to capitalize.

在第四季度，我們還採取了措施，確保能夠實現持久的兩位數利潤率。正如我們在三月份所傳達的那樣，我們通過重組費用消除了多餘的房地產。其中超過 65% 的費用是非現金性質的。本季度我們還規劃了來年的產品投資和銷售投資。我們預計將繼續將約 25% 的收入投資於研發，包括資本化所需的更多部分。

We're excited for the upcoming product releases. The new platform investments in generative AI, logs and infrastructure will provide significant value to our consumption customers. We believe our product-led growth model, combined with graduating customers to a sales-led motion, will enable us to scale the company with greater efficiency. Overall, we believe that increased gross margin combined with sales and G&A efficiency will lead to a meaningful improvement in profitability and durable double-digit margins.

我們對即將發布的產品感到興奮。新平台在生成人工智能、日誌和基礎設施方面的投資將為我們的消費客戶提供巨大的價值。我們相信，我們以產品為主導的增長模式，加上將客戶逐步轉向以銷售為主導的動議，將使我們能夠以更高的效率擴大公司規模。總體而言，我們認為，毛利率的提高加上銷售和一般管理費用效率將導致盈利能力和持久兩位數利潤率的顯著提高。

Let's shift to the balance sheet. We ended the fourth quarter with $880 million in cash, cash equivalents and investments. As we indicated on our last earnings call, we used $500 million of our cash on hand to repay the convertible note that came due on May 1. As of last week, we now have more than $425 million of cash, cash equivalents and investments. We believe the company is in a strong cash position. We are not currently interested in or pursuing additional financing at this time that would dilute our shareholders. We believe the business will continue to generate improving levels of free cash flow. It's our expectation we will generate free cash flow of approximately $150 million and end the fiscal year with approximately $500 million or more of cash, cash equivalents and investments.

讓我們轉向資產負債表。截至第四季度末，我們的現金、現金等價物和投資為 8.8 億美元。正如我們在上次財報電話會議上表示的那樣，我們使用了 5 億美元的手頭現金來償還 5 月 1 日到期的可轉換票據。截至上週，我們現在擁有超過 4.25 億美元的現金、現金等價物和投資。我們相信該公司現金狀況強勁。我們目前沒有興趣或尋求會稀釋我們股東權益的額外融資。我們相信該業務將繼續產生不斷提高的自由現金流水平。我們預計，我們將產生約 1.5 億美元的自由現金流，並在本財年結束時擁有約 5 億美元或更多的現金、現金等價物和投資。

While still in the early days, profitability and cash flow are starting to become a clear strength of our business we believe both measures will continue to step up. With that, let's move on to the guidance for Q1 and full fiscal year 2024. As we develop the guidance for the coming year, 2 factors influenced our thinking. First, there is uncertainty and things outside of our control. It's not immediately clear to us how the macro climate will unfold. It's not clear when cloud optimization activity is fully in the rearview mirror. These factors compel us to be prudent.

儘管仍處於早期階段，盈利能力和現金流已開始成為我們業務的明顯優勢，但我們相信這兩項指標將繼續加強。接下來，讓我們繼續討論 2024 年第一季度和整個財年的指導。在我們制定來年的指導時，有兩個因素影響了我們的想法。首先，存在不確定性和我們無法控制的事情。我們目前尚不清楚宏觀氣候將如何發展。目前尚不清楚雲優化活動何時完全成為後視鏡。這些因素迫使我們必須謹慎行事。

And second, as Bill highlighted, New Relic is at an exciting inflection point. We are operating a very successful consumption business with approximately 12,000 customers and $700 million of revenue. We efficiently acquire new customers and expand customer relationships. Consumption revenue has been going in excess of 30% without the benefit of migrations and over 50%, including migrations. We believe now is the time to press and complete the transition after 3 years of hard work. It will likely introduce more churn in the coming year, but we will be a better business for doing this.

其次，正如 Bill 所強調的那樣，New Relic 正處於一個令人興奮的轉折點。我們經營著非常成功的消費業務，擁有大約 12,000 名客戶和 7 億美元的收入。我們有效地獲取新客戶並擴大客戶關係。在沒有移民帶來的好處的情況下，消費收入增長了 30% 以上，而在包括移民的情況下，消費收入增長了 50% 以上。我們相信，經過3年的努力，現在是時候推動並完成轉型了。來年可能會帶來更多的客戶流失，但這樣做會讓我們的業務變得更好。

It unlocks profitability. We expect operating margin in the second half of fiscal year 2024 will be approximately 2x compared to our profitability in the second half of fiscal year 2023. We also believe this shift unlocks growth. Our innovation pipeline is strong, under a consumption contract, our customers will be able to benefit from our generative AI and expanded infrastructure and logs capabilities. We're excited for the coming year. We're confident we will exit the coming year poised to deliver meaningful levels of growth and profitability.

它釋放了盈利能力。我們預計 2024 財年下半年的營業利潤率將約為 2023 財年下半年盈利能力的 2 倍。我們還相信這一轉變將釋放增長潛力。我們的創新渠道很強大，根據消費合同，我們的客戶將能夠從我們的生成式人工智能以及擴展的基礎設施和日誌功能中受益。我們對來年感到興奮。我們相信，我們將在來年實現有意義的增長和盈利水平。

Factoring in these points for the first quarter of fiscal year 2020 we expect consumption revenue to grow approximately 38%, which will be offset by the contraction of our subscription revenue. As a result, we expect total revenue between $238 million and $240 million, representing growth of approximately 10% to 11%. We expect non-GAAP income from operations between $26 million and $28 million.

考慮到這些因素，我們預計 2020 財年第一季度的消費收入將增長約 38%，這將被訂閱收入的收縮所抵消。因此，我們預計總收入將在 2.38 億美元至 2.4 億美元之間，增長約 10% 至 11%。我們預計非 GAAP 運營收入在 2600 萬美元至 2800 萬美元之間。

For the full year fiscal 2024, we expect consumption revenue to grow approximately 30%, which will be offset by the contraction of our subscription revenue. We expect total revenue between $1.02 billion and $1.03 billion, representing growth of approximately 10% to 11%. We expect non-GAAP income from operations between $145 million and $155 million.

對於 2024 財年全年，我們預計消費收入將增長約 30%，這將被訂閱收入的收縮所抵消。我們預計總收入在 10.2 億美元至 10.3 億美元之間，增長約 10% 至 11%。我們預計非 GAAP 運營收入在 1.45 億美元至 1.55 億美元之間。

To conclude, I am pleased with our financial model and the substantial improvement. Consumption revenue has been growing at a healthy rate. We are delivering enhanced levels of profitability and cash flow. I believe we're offering shareholders and customers a measurably better business. With the shift to consumption largely behind us in the next 12 months, we expect to deliver to shareholders levels of growth and profitability in line with market leaders. We will be holding our Analyst Day this Thursday afternoon, May 25, at the New York Stock Exchange. I encourage you to attend or listen to the webcast. We're greatly looking forward to sharing new insights on our strategy innovation pipeline, go-to-market and financial model. There also will be a customer panel. I'm sure you'll enjoy hearing their perspective on observability and the emerging trends.

最後，我對我們的財務模式和實質性改進感到滿意。消費收入保持健康增長。我們正在提供更高水平的盈利能力和現金流。我相信我們正在為股東和客戶提供明顯更好的業務。隨著消費轉向在未來 12 個月內基本結束，我們預計將為股東帶來與市場領先者一致的增長和盈利水平。我們將於 5 月 25 日星期四下午在紐約證券交易所舉行分析師日活動。我鼓勵您參加或收聽網絡廣播。我們非常期待分享有關我們的戰略創新渠道、上市和財務模式的新見解。還將有一個客戶小組。我相信您會喜歡聽到他們對可觀察性和新興趨勢的看法。

With that, let's open up the call for questions. Operator?

接下來，讓我們開始提問。操作員？

(Operator Instructions) The first question is from the line of Rob Oliver with Baird.

（操作員說明）第一個問題來自 Rob Oliver 和 Baird 的線路。

David, this first 1 is for you. I appreciate the color you gave around how you contemplated that top line guidance for '24. But I'd like to probe that a little bit, if I may. Number one, what would you say is more of a factor here? Is it sort of macro, which clearly there's some uncertainties? Or is it the latter point to which you mentioned, which is sounds like there's going to be some churn. Is that churn factored in on the subscription side in addition to the normal migrations to consumption? And then the last part of it is, are -- or anything in the coming product portfolio that is in the guide currently? Or is that incremental?

大衛，第一個是給你的。我很欣賞你對 24 年頂線指導的思考方式。但如果可以的話，我想稍微探討一下。第一，您認為這裡更重要的因素是什麼？這是宏觀的嗎？顯然存在一些不確定性？或者是你提到的後一點，聽起來好像會有一些流失。除了正常的消費遷移之外，訂閱方面是否也考慮了這種流失？最後一部分是，或者當前指南中即將推出的產品組合中的任何內容？或者說這是增量的？

Rob, thanks so much for the question. I think churn is certainly contemplated and I'll even go a step beyond that to say churn is contemplated at levels above what we've seen before. I think we're at that point where we know the residual customers pretty well. I think we have an idea of how it will unfold. We think the migrations will be kind of clustered, if you will, in Q2, Q3 in the latter part of March. But I think we got an idea of how this one will unfold. And so that certainly weighs on my mind, having been involved with business model transitions before. So that's kind of the first thing that certainly influenced my thinking.

羅布，非常感謝你的提問。我認為流失肯定是被考慮的，我什至會更進一步說，流失的水平高於我們之前看到的水平。我認為我們已經非常了解剩餘客戶了。我想我們已經知道它將如何展開。我們認為，如果你願意的話，遷移將在 3 月下旬的第二季度、第三季度呈集群狀。但我認為我們已經知道這件事將如何展開。因此，這無疑給我帶來了沉重的負擔，因為我之前就參與過商業模式轉型。所以這肯定是影響我想法的第一件事。

And then, of course, certainly, being in the consumption model, which is over 80% of our revenue, we look at consumption on a day-by-day basis. So we know -- we kind of looked very carefully at how we exited March, how we began April. And then again, we've planned, I think, pretty carefully with our go-to-market team around how we expect consumption to work in the current environment, knowing the cloud optimizations that have taken place. and then our thesis on the cloud optimizations that could occur in the future.

當然，當然，在消費模式中，消費模式占我們收入的 80% 以上，我們每天都會關註消費情況。所以我們知道——我們非常仔細地研究了三月是如何結束的，四月是如何開始的。再說一次，我認為，我們已經與我們的上市團隊非常仔細地計劃了我們期望消費在當前環境中如何運作，了解已經發生的雲優化。然後是我們關於未來可能發生的雲優化的論文。

In regards to the second part sorry (inaudible). Well, I think there was a second question around products. But let me -- before I go into that, did I answer the first part of your question?

關於第二部分，抱歉（聽不清）。嗯，我認為還有關於產品的第二個問題。但在我開始討論之前，我是否回答了你問題的第一部分？

You did. Yes. I appreciate that.

你做到了。是的。我很感激。

Okay. And then in terms of the second part, I think maybe what you're alluding to would be generative AI or maybe some of the enhancements that have come out on infrastructure or logs. We're not -- we're -- let me say it this way. we're excited about what those represent for customers, but we haven't specifically modeled them in terms of what they could specifically contribute to our consumption revenue.

好的。然後就第二部分而言，我認為您所指的可能是生成式人工智能，或者可能是基礎設施或日誌方面的一些增強功能。我們不是——我們是——讓我這樣說。我們對這些對客戶所代表的東西感到興奮，但我們還沒有根據它們對我們的消費收入的具體貢獻來具體建模它們。

Got it. And then if I may, just 1 quick follow-up for Bill. Bill, thank David. So just you guys, obviously, a ton of progress that you've made since you arrived. I was looking at the slide percentage of customers now with robust capabilities getting towards 90%. So clearly, people taking more of the full New Relic platform. You mentioned how you guys tend to land small. Can you talk about that move from land to increase usage. How does this typically play out given the strength you guys have had in sort of enterprise expansions? Is there usually a lag period where we sort of see that consumption start to pick up as people get more comfortable with the solution?

知道了。如果可以的話，請對比爾進行快速跟進。比爾，謝謝大衛。所以，顯然，自你們到來以來，你們已經取得了很大的進步。我看到現在擁有強大能力的客戶比例已接近 90%。很明顯，人們更多地使用完整的 New Relic 平台。你提到你們傾向於小規模。您能談談從陸地轉向增加使用的情況嗎？考慮到你們在企業擴張方面的實力，這通常會如何發揮作用？通常是否會存在一段滯後期，隨著人們對解決方案更加滿意，我們會看到消費開始回升？

Yes. Good question, Rob. And this is 1 of the topics we're going to unpack more on Thursday at our Analyst Day. We've been talking about this event since I think the November earnings call, so long in the making, and we've got both our product and go-to-market leaders that will talk specifically about how we land and expand. But in short, I'll share, it's really been exciting to see -- not only have we transitioned the business from subscription to consumption, unified our platform, back end and front end, but we've really grown a new and vibrant, healthy, deeply engaged customer base over the last couple of years. You can see in the investor supplemental just how quickly new customers are coming into the platform.

是的。好問題，羅布。這是我們將在周四的分析師日上詳細介紹的主題之一。我認為自從 11 月份的財報電話會議以來，我們就一直在討論這一事件，而且我們的產品和市場推廣領導者將專門談論我們如何落地和擴張。但簡而言之，我會分享，這確實令人興奮 - 我們不僅將業務從訂閱轉變為消費，統一了我們的平台、後端和前端，而且我們確實發展了一個新的、充滿活力的、在過去的幾年裡，我們擁有健康、深入參與的客戶群。您可以在投資者補充中看到新客戶進入該平台的速度有多快。

And as you mentioned, they start small with us as they come through the free tier and then add their credit card. And then really the pace at which they grow is nurtured through 2 things. First, through product-led growth motions in the product, we nurture experiences, which naturally lead to them instrumenting more and sending us more data as well as adding more users, the way at which they do that is obviously dependent on their business needs, some grow faster than others. And we pick up signals from the product usage itself to then connect them with humans in the form of ISRs who can help them get a contract, but then secures additional discounts and maybe an annual budget for them to work off of or actually accelerate into our enterprise sales teams where they can get additional technical services and attention from our enterprise sellers, depending again on their total addressable spend or the total opportunity within their company or organization.

正如您所提到的，他們從我們這裡開始，通過免費套餐，然後添加他們的信用卡。他們的成長速度實際上是通過兩件事來培養的。首先，通過產品中以產品為主導的增長動作，我們培育經驗，這自然會導致他們進行更多的檢測並向我們發送更多的數據以及增加更多的用戶，他們這樣做的方式顯然取決於他們的業務需求，有些人比其他人成長得更快。我們從產品使用本身獲取信號，然後以ISR的形式將他們與人類聯繫起來，ISR可以幫助他們獲得合同，然後獲得額外的折扣，也許還有年度預算，供他們工作或實際上加速進入我們的企業銷售團隊，他們可以從我們的企業銷售人員那裡獲得額外的技術服務和關注，這又取決於他們的總可尋址支出或其公司或組織內的總機會。

And so we're feeding off those product signals or -- as soon as we see opportunities there, connecting them with humans and then accelerating the growth into larger customers over time. We see, in terms of timing, we see that can happen sometimes within 1 to 2 quarters. Other times, it takes customers a few quarters to fully mature into a sales-led organization for us.

因此，我們正在利用這些產品信號，或者一旦我們看到那裡的機會，就將它們與人類聯繫起來，然後隨著時間的推移加速增長為更大的客戶。我們看到，就時間而言，有時會在一到兩個季度內發生。其他時候，客戶需要幾個季度的時間才能完全成熟，成為我們以銷售為主導的組織。

Your next question is from the line of Kingsley Crane with Canaccord.

您的下一個問題來自 Kingsley Crane 和 Canaccord 的產品線。

So one for Bill, one for Dave. Bill, I appreciate the comment on being first to market with generative AI with Grok. How should we think about the business impact of Grok in the near term? Is this improving customer experience? And then what is the pathway for this to drive consumption?

所以一份給比爾，一份給戴夫。 Bill，我很欣賞關於 Grok 率先將生成式人工智能推向市場的評論。我們應該如何看待 Grok 在短期內對業務的影響？這是否改善了客戶體驗？那麼拉動消費的途徑是什麼？

Yes. Exciting topic. I'm sure your news feeds like mine are filled with lots of excitement about what generative AI holds for each of us collectively and individually. I believe New Relic's really set ourselves up well for the emergence of generative AI, which thrives on large data sets. As you know, we talk about it all the time, we're the only observability platform to truly have a unified platform where all data types and data sources can be ingested and stored and accessed with 1 API and 1 query language. So in the short term, the opportunity for customers who want to take advantage of this technology is to bring us more data and increases data consumption, obviously.

是的。令人興奮的話題。我確信您和我一樣的新聞提要都充滿了對生成人工智能對我們每個人集體和個人的影響的興奮。我相信 New Relic 確實為生成式人工智能的出現做好了準備，生成式人工智能在大數據集上蓬勃發展。如您所知，我們一直在談論這一點，我們是唯一真正擁有統一平台的可觀察性平台，可以使用 1 個 API 和 1 種查詢語言來攝取、存儲和訪問所有數據類型和數據源。因此，從短期來看，對於想要利用這項技術的客戶來說，機會顯然是為我們帶來更多數據並增加數據消耗。

And it can help them then unlock those insights more quickly as we build out our generative AI capabilities. One of the reasons we've been able to be first to market is this unified data platform, an all-in-one model that we've been innovating in the last couple of years. It allowed us to be first to market with an MLOps solution, the first to support OpenAI GPT monitoring and the first to introduce a generative AI assistant with New Relic Grok, which will dramatically simplify how to get insights out of telemetry data.

當我們構建生成式人工智能能力時，它可以幫助他們更快地釋放這些見解。我們能夠率先進入市場的原因之一是這個統一的數據平台，這是我們在過去幾年中一直在創新的一體化模型。它使我們能夠率先向市場推出 MLOps 解決方案、第一個支持 OpenAI GPT 監控的解決方案，以及第一個通過 New Relic Grok 引入生成式 AI 助手的解決方案，這將極大地簡化從遙測數據中獲取洞察的方式。

We're excited to share more with that, in fact, potentially a live demo here on Thursday at the analyst event. So I'd encourage you to tune in from that. On the business model side and how it's going to help our business grow, it's really also uniquely aligned with the business model we put in place. Remember, 3 years ago, when we pivoted from product-specific packaging and pricing to the platform model with users and data. We intentionally shifted the cost of data to be as low as possible to allow engineers to [instrument] more systems and make it easier to standardize on New Relic offsetting less efficient and higher-priced competitors.

我們很高興能與大家分享更多內容，事實上，可能會在周四的分析師活動中進行現場演示。所以我鼓勵你關注這一點。在商業模式方面以及它將如何幫助我們的業務增長，它確實也與我們實施的商業模式獨特地一致。請記住，3 年前，當我們從特定於產品的包裝和定價轉向包含用戶和數據的平台模型時。我們有意將數據成本降低到盡可能低，以便工程師能夠[檢測]更多系統，並更容易在 New Relic 上實現標準化，從而抵消效率較低和價格較高的競爭對手的影響。

New Relic Grok then represents a large opportunity to increase user engagement on top of that data over time by dramatically simplifying the ability to scan and get insights from the data using natural language. So we believe our business model actually helps us capture that expansion better than competitors who are still priced on effectively host-based models that are really expensive data ingest meters.

New Relic Grok 極大地簡化了使用自然語言掃描數據並從中獲取見解的能力，從而提供了一個巨大的機會，隨著時間的推移，可以提高用戶對數據的參與度。因此，我們相信我們的業務模式實際上可以幫助我們比競爭對手更好地抓住這種擴張機會，因為競爭對手仍然以有效的基於主機的模型定價，而這些模型是非常昂貴的數據採集儀表。

Bill, that's really helpful context and certainly exciting. So for Dave, when we look at the numbers, it looks like most of the consumption growth in excess of guided total revenue growth is being driven by conversions in this next year. How should we think about a conversion rate from non-consumption to consumption embedded in that guidance?

比爾，這確實是很有幫助的背景，而且當然令人興奮。因此，對於戴夫來說，當我們查看這些數字時，看起來超過指導總收入增長的大部分消費增長都是由明年的轉換推動的。我們應該如何考慮該指南中包含的從非消費到消費的轉化率？

Yes, that's

是的，那就是

(technical difficulty)

（技術難度）

have to figure out how we lay it out better in future slides. I think the -- maybe the best way to think about it is when we think about the exit rate of subscription, it exited around $38 million and change it will progressively step down quarter-over-quarter. And what you'll see is that consumption will step up quarter-over-quarter. There won't be a dollar for dollar. So what will happen in this case is our expectation is that as people shift from subscription to consumption, there will be an initial optimization before growth occurs. And so I'd say, net-net, we're actually not looking at the shift from subscription to consumption as a near-term catalyst, but probably a longer-term catalyst as people adopt more and more capabilities. Our thesis around the core drivers, and I think we put this in the investor supplemental last year, or if you were to exclude the effect of migrations consumption was growing just over 30% in Q4.

必須弄清楚我們如何在未來的幻燈片中更好地佈局它。我認為，也許最好的思考方式是，當我們考慮訂閱退出率時，退出率約為 3800 萬美元，並且將逐季度逐步下降。您將看到消費將逐季度增加。不會有一美元對一美元。因此，在這種情況下，我們的預期是，隨著人們從訂閱轉向消費，在增長發生之前將會有一個初步的優化。所以我想說，網絡，我們實際上並沒有把從訂閱到消費的轉變視為短期催化劑，但隨著人們採用越來越多的功能，可能會成為長期催化劑。我們的論文圍繞核心驅動因素，我認為我們將其納入去年的投資者補充報告中，或者如果排除移民的影響，第四季度消費增長略高於 30%。

Our thesis of this year, what you'll see in consumption is that excluding migrations, it ends up growing around 20%, plus or minus a few points. And I think that is probably the better way to think about it is that year-over-year, we were last year growing kind of in the 30s this year will grow around 20% again, plus or minus a few. So hopefully, that kind of helps you set up the model both in terms of the SEC geography, but then also in terms of the core drivers and trends.

我們今年的論點是，你會在消費中看到，排除移民，消費最終增長約 20%，上下浮動幾個百分點。我認為更好的思考方式可能是，我們去年的增長率約為 30%，今年將再次增長 20% 左右，加上或減去一些。因此，希望這能幫助您在 SEC 地理方面以及核心驅動因素和趨勢方面建立模型。

Our next question is from Mike Cikos with Needham.

我們的下一個問題是 Mike Cikos 和 Needham 提出的。

This is Matt Calitri on for Mike. Bill, start with you, we picked up in the field that New Relic is specifically building momentum and credibility around OpenTelemetry use cases with developers. Can you talk to the importance of OpenTelemetry to your customers? And also why other competitors aren't being more proactive and leaning into OpenTelemetry?

我是邁克的馬特·卡利特里。 Bill，從你開始，我們在該領域發現 New Relic 正在專門與開發人員圍繞 OpenTelemetry 用例建立動力和可信度。您能談談 OpenTelemetry 對您的客戶的重要性嗎？為什麼其他競爭對手沒有更加積極主動並傾向於 OpenTelemetry？

Yes. Thank you. OpenTelemetry has been something that we've been excited about for 3 years, actually, when I first joined, it was emerging as a cloud cognitive computing foundation project and something that I recognized as an emerging standard that would be important to our category going forward. We've been investing deeply in it. In fact, we're 1 of the top contributors to this standard, which is effectively a data standard for telemetry data, defines a data model and a way of sending and capturing that data which can be vendor-neutral.

是的。謝謝。 OpenTelemetry 已經讓我們興奮了 3 年，實際上，當我第一次加入時，它正在作為一個雲認知計算基礎項目而出現，我認為它是一個新興標準，對我們類別的未來發展非常重要。我們一直在這方面進行深入投資。事實上，我們是該標準的主要貢獻者之一，該標準實際上是遙測數據的數據標準，定義了數據模型以及發送和捕獲供應商中立的數據的方式。

We believe it's incredibly important because every piece of hardware every operating system and every language, every cloud service, every device in the future will admit telemetry data, often by default or one [config] switch away. And that allows engineers to then capture the telemetry data coming off of all of those systems, all of those technologies and the winning observability platform will be the platform that can capture that data at scale in a very efficient way and then deliver insights on that data.

我們相信這非常重要，因為未來的每一個硬件、每一個操作系統、每一種語言、每一種雲服務、每一個設備都將接受遙測數據，通常是默認情況下或一個[配置]切換。這使得工程師能夠捕獲來自所有這些系統的遙測數據，所有這些技術和獲勝的可觀測性平台將成為能夠以非常有效的方式大規模捕獲數據，然後提供對該數據的見解的平台。

So that is what we've been focused on, not only nurturing that standard, but building the data platform that makes it possible to unlock the value of that open standard. And I think that's starting to get recognized by customers. Many customers want to embrace standards as a way of not only making it easier to adopt instrumentation and that will unlock it without having to go get proprietary agents and configure it separate from the technology choices they make. But also to allow them more flexibility in picking the vendor of choice that's going to give them the most efficiency, especially in this economy and the best insights and experience. And that's exactly what New Relic has been focusing on, and I think it's starting to get recognition for.

這就是我們一直關注的重點，不僅培育該標準，而且構建數據平台，使釋放該開放標準的價值成為可能。我認為這已經開始得到客戶的認可。許多客戶希望採用標準，不僅可以更輕鬆地採用儀器，而且可以解鎖儀器，而無需尋求專有代理並將其與他們所做的技術選擇分開配置。同時也讓他們在選擇供應商時更加靈活，這將為他們帶來最大的效率，特別是在當前的經濟形勢下，以及最好的見解和經驗。這正是 New Relic 一直關注的重點，我認為它已經開始得到認可。

Awesome. That's very helpful. And David, can you help investors think about the anticipated pricing benefit incorporated in the guidance? And more specifically, what's the implied benefit from adoption of New Relic Data Plus bundle?

驚人的。這非常有幫助。大衛，您能否幫助投資者思考指南中包含的預期定價優勢？更具體地說，採用 New Relic Data Plus 捆綁包的隱含好處是什麼？

Yes, it's a great question. I think overall, if you recall, the December renewal cohort was probably our first big cohort it started getting the benefit of the price. We saw that again in March, and we've certainly factored in a structural tailwind associated with continuing to capture price this year.

是的，這是一個很好的問題。我認為總的來說，如果你還記得的話，12 月的續訂隊列可能是我們的第一個大隊列，它開始從價格中受益。我們在三月份再次看到了這一點，並且我們當然已經考慮到了與今年繼續捕獲價格相關的結構性順風。

Data Plus, I'd say, is Bill and I think it -- we'd still say it's kind of early days for Data Plus. I think we're very pleased with the adoption. Customers are certainly getting the benefit, whether it's through vulnerability management, some of the additional features like FedRAMP, HIPAA. So I think overall, the Data Plus adoption is well on its way. And again, it's one of those elements that will give us probably a structural tailwind around both price and mix over time. So I would say we're kind of well on our way in that area.

我想說，Data Plus 是 Bill，而且我認為——我們仍然會說，Data Plus 還處於早期階段。我認為我們對收養感到非常滿意。客戶肯定會從中受益，無論是通過漏洞管理還是 FedRAMP、HIPAA 等一些附加功能。所以我認為總體而言，數據加的採用進展順利。再說一遍，隨著時間的推移，它可能會給我們帶來價格和產品組合的結構性推動力。所以我想說我們在這個領域進展順利。

Our next question is from Fred Lee with Credit Suisse.

我們的下一個問題來自瑞士信貸銀行的 Fred Lee。

This is Tim on for Fred. Bill, the first question is for you. You recently launched a new, deeply integrated infrastructure monitoring and APM solution. Could you give us concrete examples on how it is differentiated in the marketplace especially relative to some competitors which have been marketing itself as a single pane of class historically? And how do you expect it to impact your competitive win rate?

這是弗雷德的蒂姆。比爾，第一個問題是問你的。您最近推出了一個新的、深度集成的基礎設施監控和 APM 解決方案。您能否給我們提供具體的例子，說明它如何在市場上脫穎而出，特別是相對於一些歷史上一直將自己宣傳為單一類別的競爭對手？您預計它會如何影響您的競爭獲勝率？

Great question. We're really excited about the new infrastructure experience that we launched. Thanks for calling that out. It was just last week. And it's been a journey for us. We first introduced infrastructure monitoring a few years ago through an acquisition. We've been improving the experience as we move to the all-in-one platform. But this, for us, was a chance to really take it to another level. And really, the theme to think about is infrastructure monitoring in a silo can only get used so far. What's really valuable for engineers is understanding how that infrastructure connects to the applications and services that run on that infrastructure. And then the users and the devices that may be connecting to those applications and the total experience from that infrastructure all the way up to the end user.

很好的問題。我們對我們推出的新基礎設施體驗感到非常興奮。感謝您指出這一點。就在上週。這對我們來說是一段旅程。幾年前，我們通過收購首次引入了基礎設施監控。隨著我們轉向一體化平台，我們一直在改善體驗。但這對我們來說是一個真正將其提升到另一個水平的機會。實際上，要考慮的主題是孤島中的基礎設施監控目前只能使用。對於工程師來說真正有價值的是了解該基礎設施如何連接到在該基礎設施上運行的應用程序和服務。然後是可能連接到這些應用程序的用戶和設備，以及從該基礎設施一直到最終用戶的總體體驗。

And that is what we've been striving to deliver in this experience that's so unique and differentiated. There's now 1 spot that engineers can go to see infrastructure and applications and services connected and correlated. So you can see both within the APM experience that New Relic is known for is world-class, the infrastructure underneath the apps and services and the health of those correlated. You can also see from the infrastructure experience the set of applications and services running on them and the correlation between those things.

這就是我們一直努力在這種獨特且與眾不同的體驗中提供的東西。現在，工程師可以在 1 個地點查看基礎設施、應用程序和服務的連接和關聯情況。因此，您可以在 New Relic 聞名的世界一流的 APM 體驗中看到應用程序和服務下面的基礎設施以及相關的運行狀況。您還可以從基礎設施體驗中看到運行在其上的應用程序和服務集以及這些事物之間的相關性。

It's also a goal of ours to deliver through this experience. The ability to understand when something goes wrong in any layer of the stack, whether it's in your infrastructure or in the application, what tends to happen is engineers from all teams joining the call to try and tease apart where the failures are happening. And with this new experience, you can now see -- pinpoint where the issue is as well as the blast radius or the impact of the result and its cascading impacts on other systems that are depending on that.

通過這種體驗來提供服務也是我們的目標。能夠了解堆棧的任何層（無論是在基礎設施中還是在應用程序中）出現問題時，往往會發生的情況是來自所有團隊的工程師加入電話會議，嘗試找出發生故障的位置。通過這種新體驗，您現在可以看到 - 查明問題所在以及爆炸半徑或結果的影響及其對依賴於此的其他系統的級聯影響。

And last, I'd say 1 of the other major differentiation points is just the incremental cost and total TCO is so much better. With New Relic, the incremental cost at infrastructure monitoring per host can be 2 to 4x less expensive with New Relic for any customer that's got APM already and maybe using an alternative infrastructure monitoring solution, it's a no-brainer to add that telemetry to New Relic now to get that deeply connected experience and save money in the process.

最後，我想說的另一個主要區別點就是增量成本，而且總 TCO 要好得多。對於任何已經擁有 APM 的客戶來說，使用 New Relic，每台主機基礎設施監控的增量成本可以降低 2 到 4 倍，並且可能使用替代基礎設施監控解決方案，將遙測添加到 New Relic 是理所當然的事情現在就可以獲得深度連接的體驗並在此過程中節省資金。

And then, Dave, if we look at -- the numbers you gave us on consumption and subscription revenue line over the past few years and cut them. It seems like the revenue that you lost from subscription had roughly a 5% uplift as that converted into consumption? And then on a go-forward basis, if we assume the 20% growth excluding migrations, you will imply that for next year, roughly the $120 million in revenue that you're guiding to losing in subscription revenue, only converts to roughly $70 million in consumption revenue, so a much more meaningful haircut. And so I'm wondering, relative to the customers that were migrating off of subscription last year, the cohort of customers that will migrate over the next 6 to 8 quarters, is there something fundamentally and structurally different about that customer cohort that had you expect higher churn rates?

然後，戴夫，如果我們看一下您在過去幾年中向我們提供的有關消費和訂閱收入的數字並削減它們。看起來您因訂閱而損失的收入在轉化為消費後增加了大約 5%？然後，在未來的基礎上，如果我們假設不包括遷移的增長率為 20%，那麼您將意味著明年，您預計在訂閱收入中損失的大約 1.2 億美元的收入只會轉換為大約 7000 萬美元在消費收入方面，因此削減更有意義。因此，我想知道，相對於去年不再訂閱的客戶，以及將在未來 6 到 8 個季度內遷移的客戶群體，與您所期望的客戶群體相比，是否存在根本性和結構性的不同更高的流失率？

Yes, it's a great question. Think of it as a -- probably as a pyramid. And there is a top cohort. And I'd say, traditionally out of the top cohort in any given quarter, we've had a couple of them churn. We kind of have a middle cohort, and it tends to be 5-figure contracts, and then I have a bottom cohort. And I think they're out of the top cohort, I think my churn will be higher and those are some more material contracts I think as I press down in my middle cohort, it will probably be in line with the average I think the challenge that I'll also run into, Tim, is that at my very bottom cohort I actually have a number of people who qualify for the free tier. And what I should have called out earlier is, there is -- I guess, that bottom cohort is about 2,000 customers, and I think about 1,000 of those customers could potentially just use the free tier to accomplish what they want.

是的，這是一個很好的問題。把它想像成一個——可能是一個金字塔。並且有一個頂尖的群體。我想說的是，傳統上在任何特定季度的頂尖群體中，我們都會有一些人流失。我們有一個中間群體，通常是 5 位數的合同，然後我有一個底部群體。我認為他們不在頂級群體中，我認為我的流失率會更高，這些是一些更重要的合同，我認為當我壓低中間群體時，它可能會與我認為挑戰的平均水平一致蒂姆，我還會遇到的一個問題是，在我的最底層群體中，實際上有很多人有資格獲得免費套餐。我應該早些時候指出的是，我猜，最底層的客戶群大約有 2,000 名客戶，我認為其中大約 1,000 名客戶可能只是使用免費套餐來完成他們想要的事情。

So I think I will have some customer count pressure as well as some ACR pressure as I ultimately kind of press over the next 4 to 6 quarters to complete the migration. And I guess it's not a huge surprise from the standpoint we've been at this for a little over 3 years. You kind of get to that point in any transition where you have a little bit more work to do. And I think this last wave will behave a little bit different than the prior waves, which obviously were the earlier adopters and the people that move quickly. And so that's the reason, Tim, for being a little bit more conservative or a little bit more cautious where these could have different performance characteristics.

因此，我認為我將面臨一些客戶數量壓力和 ACR 壓力，因為我最終會在接下來的 4 到 6 個季度內完成遷移。我想，從我們三年多來一直致力於此的角度來看，這並不是一個巨大的驚喜。在任何轉變中，你都會遇到這樣的情況：你還有更多的工作要做。我認為最後一波浪潮的表現將與前幾波有所不同，前幾波顯然是早期採用者和快速行動的人。這就是蒂姆，在這些可能具有不同性能特徵的情況下要更加保守或更加謹慎的原因。

Our next question is from the line of Rishi Jaluria with RBC.

我們的下一個問題來自 Rishi Jaluria 與 RBC 的聯繫。

Appreciate all the in the slide deck. It's almost like a mini Analyst Day of its own, which is really helpful ahead of Thursday, which we're really looking forward to. I wanted to start by asking another generative AI question, but maybe thinking about it a little bit on the secular tailwind side, right? So right here at Microsoft at their user conference is talking about 45% developer improvement in developer productivity with some of the generative AI tooling out there, 46% of new code being written by generative AI, feels like this is going to just drive up the number of applications, almost exponentially. Can you talk about how you're thinking about that as a potential secular driver? And what sort of kind of investments you want to make to be able to capitalize that and have a right to win for a good share of those workloads? And then I've got a quick follow-up.

欣賞幻燈片中的所有內容。這幾乎就像一個小型的分析師日，在周四之前非常有幫助，我們非常期待。我想首先問另一個生成人工智能問題，但也許從長期的順風側考慮一下，對嗎？因此，在微軟的用戶大會上，他們談論的是使用一些生成式 AI 工具，開發人員的生產力提高了 45%，46% 的新代碼是由生成式 AI 編寫的，感覺這只會推動申請數量幾乎呈指數級增長。作為一名潛在的世俗司機，您能談談您對此有何看法嗎？您希望進行什麼樣的投資才能充分利用這些投資並有權贏得這些工作負載的大部分份額？然後我會進行快速跟進。

Yes. Great question, Rishi. As I mentioned earlier, we're very excited about generative AI both because, as you mentioned, it's potentially a new secular tailwind. We talked about the 3 already, 1 being cloud migration and the growth of public cloud and other being digital transformation; and the third being technical complexity. And one way to think about generative AI's, it's another new technology layer to adapt and incorporate into applications. You could also think about it, like you said, as a fourth driver because it's driving a wave of not only enhanced applications but new applications that engineers need observability on. It's why we wanted to be first to market to provide monitoring for generative AI based applications with OpenAI's GPT, we were first to provide the ability to look at performance of those applications and the cost associated with them.

是的。很好的問題，Rishi。正如我之前提到的，我們對生成式人工智能感到非常興奮，因為正如您所提到的，它可能是一個新的長期順風車。我們已經討論了3個，1是雲遷移和公共雲的增長，其他是數字化轉型；第三是技術複雜性。思考生成人工智能的一種方式是，它是另一種適應並融入應用程序的新技術層。正如您所說，您也可以將其視為第四個驅動因素，因為它不僅推動了增強型應用程序的浪潮，而且推動了工程師需要可觀察性的新應用程序的浪潮。這就是為什麼我們希望率先進入市場，通過 OpenAI 的 GPT 為基於生成式 AI 的應用程序提供監控，我們首先提供查看這些應用程序的性能以及與之相關的成本的能力。

And we're setting ourselves up there because, ultimately, we believe the transformative impact of generative AI will be across all industries, all segments. And so we want to be best in class there. Like I said, though, the other really key part is incorporating generative AI into the observability experience, where our business model is actually uniquely aligned where other competitors in the observability category monetize really on data ingest with high-priced post-base SKUs we monetize both on data ingest, which has been growing really well, really successfully, but also on user engagement.

我們之所以這樣做，是因為最終我們相信生成式人工智能的變革性影響將遍及所有行業、所有領域。所以我們希望在那裡成為最好的。不過，正如我所說，另一個真正關鍵的部分是將生成式人工智能融入到可觀察性體驗中，我們的商業模式實際上是獨一無二的，可觀察性類別中的其他競爭對手實際上通過我們貨幣化的高價後期 SKU 來通過數據攝取來貨幣化。不僅是在數據攝取方面（增長得非常好、非常成功），而且還體現在用戶參與度方面。

And we believe the power of generative AI for the observability category itself can dramatically simplify access and speed to insight. And that's why we were also first to launch New Relic Grok. And we're increasingly innovating there to unlock that vision we have of making observability ubiquitous and reaching every engineer.

我們相信，生成式人工智能對於可觀察性類別本身的力量可以極大地簡化洞察的訪問和速度。這就是為什麼我們也是第一個推出 New Relic Grok 的原因。我們在這方面不斷進行創新，以實現我們的願景，即讓可觀測性無處不在並惠及每一位工程師。

All right. Great. That's really helpful. And then in the slide deck on Slide 28, you talk about full platform adoption and usage of multiple capabilities across New Relic versus a competitor with very subtle color coding. I wanted to get a sense, maybe if you can help us understand how are you measuring that? And what sort of efforts have you made to just drive greater usage of multiple capabilities across the platform?

好的。偉大的。這真的很有幫助。然後，在幻燈片 28 的幻燈片中，您討論了 New Relic 的全平台採用和多種功能的使用，以及與具有非常微妙的顏色編碼的競爭對手的比較。我想了解一下，也許您可以幫助我們了解您是如何衡量的？為了推動整個平台上多種功能的更多使用，您做了哪些努力？

Yes. Good question. It's a chart in particular that I think reflects the strength of our all-in-one platform model. 3 years ago, we foresaw this moment happening, which is the need for every enterprise to be more efficient, to drive standardization of their observability practice. And we wanted to remove all the packaging and pricing barriers, which would prevent them from standardizing on New Relic. And you can see through that chart how I think we're the #1 leading vendor in terms of platform adoption because more customers use more capabilities on New Relic than anyone else I'm aware of. And the way we've done that is not only remove the packaging and pricing barriers, which makes it very easy. It's product-led growth motion for an engineer who maybe came to New Relic for APM, but now with the new integrated experience, can see inside their APM experience that the infrastructure is not yet connected and it's 1 click away to connect it.

是的。好問題。我認為這張圖表特別反映了我們一體化平台模型的實力。三年前，我們就預見到了這一時刻的發生，即每個企業都需要提高效率，推動可觀測性實踐的標準化。我們希望消除所有包裝和定價障礙，這將阻止他們在 New Relic 上實現標準化。通過該圖表您可以看到，我認為我們在平台採用方面是排名第一的領先供應商，因為更多的客戶在 New Relic 上使用的功能比我所知道的任何其他人都多。我們這樣做的方式不僅消除了包裝和定價障礙，這使得它變得非常容易。對於可能來到 New Relic 進行 APM 的工程師來說，這是產品主導的增長動議，但現在有了新的集成體驗，可以在他們的 APM 體驗中看到基礎設施尚未連接，只需單擊一下即可連接它。

They can see the logs are not yet flowing into the application. Again, it's 1 click away to bring those logs in. And that makes them the expansion of customers once they come into the platform so much more quick and allows them to get more value and for us to grow our revenues.

他們可以看到日誌尚未流入應用程序。再次強調，只需點擊 1 次即可登錄這些日誌。這使得他們在進入平台後能夠更快地擴展客戶，並使他們能夠獲得更多價值，從而增加我們的收入。

The last thing I'll say about the expansion is we also then take the signals of how customers are using the product and engaging with it and feed it into our sales organization so that they know where customers are engaging and interested and can start human conversations again to more quickly train and enable and unlock budgets for our customers at scale.

關於擴展，我要說的最後一件事是，我們還會獲取客戶如何使用產品並與之互動的信號，並將其反饋給我們的銷售組織，以便他們知道客戶在哪裡參與和感興趣，並可以開始人類對話再次更快地大規模培訓、啟用和釋放客戶的預算。

The next question is from the line of Erik Suppiger with JMP Securities.

下一個問題來自 JMP 證券公司的 Erik Suppiger。

First off, I'm just curious, obviously, there's been rumors of private equity interest in New Relic, I'm curious if there are any comments that you have to respond to that? And then secondly, can you talk a little bit about -- you had mentioned your objective to grow at market rate. I think you've suggested that's 25%. Was there any comments that you're making about timing of when you intend to reach the market rate growth?

首先，我只是好奇，顯然，有傳言稱私募股權公司對 New Relic 感興趣，我很好奇您是否有任何評論需要對此做出回應？其次，您能談談您提到的以市場速度增長的目標嗎？我想你建議的是 25%。對於打算何時實現市場利率增長，您有什麼評論嗎？

Why don't I take the first one? And Dave, you can talk about the second one. Of course, we also have more on that coming up on Thursday. With the first part of your question regarding the rumors, I assume you're speaking about the Wall Street Journal article about rumors of a transaction. There are always rumors in the market. As you can imagine, we don't comment directly on them. We're committed to acting in the best interest of our company and our shareholders as any public company would. For today's discussion, we're focused on our customers and continuing to execute our value creation strategy. And that's also what we'll be focused on, on Thursday for all those who can attend. So encourage you to come out and listen in.

我為什麼不選第一個呢？戴夫，你可以談談第二個問題。當然，週四我們還會有更多相關內容。關於您關於謠言的問題的第一部分，我假設您正在談論《華爾街日報》有關交易謠言的文章。市場上總是有傳言。正如您可以想像的那樣，我們不會直接對它們發表評論。我們致力於像任何上市公司一樣，以公司和股東的最佳利益行事。在今天的討論中，我們的重點是我們的客戶並繼續執行我們的價值創造戰略。這也是我們週四為所有能夠參加的人關注的重點。因此，鼓勵您站出來傾聽。

Erik, and then in regard to the market -- Erik, in regards to market growth, I think on Thursday, you'll also receive an updated financial model. Just to be clear, our focus is on profitable growth. And so we'll talk a lot about our road map and how we're going to get to a Rule of 40 plus. I think through this guidance, certainly, you're seeing a guide on profitability of 14% to 15%. And I think as you heard in our prepared remarks, I think we know how to get to 15%, and we're working on that pathway to 20%. And so that is something that we're pretty excited about as we complete the transition of all subscription customers in to consumption, we believe that we're setting up next year to be well on that path.

埃里克，然後關於市場——埃里克，關於市場增長，我想在周四，您還將收到更新的財務模型。需要明確的是，我們的重點是盈利增長。因此，我們將詳細討論我們的路線圖以及我們將如何實現 40+ 規則。我認為通過這個指導，你肯定會看到 14% 到 15% 的盈利能力指導。我認為正如您在我們準備好的發言中所聽到的那樣，我認為我們知道如何達到 15%，並且我們正在努力實現 20%。因此，當我們完成所有訂閱客戶向消費的轉變時，我們感到非常興奮，我們相信明年我們將在這條道路上取得進展。

So our view is that we are bringing the pieces together, and we're pretty excited to watch all the pieces come together, particularly as we look forward to operating 1 business model. So more to come on Thursday afternoon.

因此，我們的觀點是，我們正在將各個部分整合在一起，並且我們非常高興看到所有部分整合在一起，特別是當我們期待運營一種商業模式時。週四下午還會有更多內容。

The next question is from the line of Derrick Wood with TD Cowen.

下一個問題來自 Derrick Wood 和 TD Cowen。

it's Andrew on for Derrick. Dave, for you on the optimization. I just wonder if you could give any more color on what you're assuming there in guidance for both of those 2 headwinds, how much derisking have you done? And how is that kind of factored into the 30% consumption guide?

安德魯替補德里克。戴夫，為您進行優化。我只是想知道您是否可以對您在這兩個不利因素的指導中所假設的內容提供更多的色彩，您做了多少去風險的工作？ 30%的消費指南中是如何考慮這一因素的呢？

That's a great question. We carefully went through our customer cohorts. Obviously, I can't pledge to you that we got this perfect, but we really spent a lot of time going through the cohorts, how the optimization has taken place. I think you have our very best view looking at how we exited March, how we began April and then how we think the game plays out. So I think you have our closest to the pin view in terms of how this unfolds.

這是一個很好的問題。我們仔細檢查了我們的客戶群。顯然，我不能向您保證我們已經做到了完美，但我們確實花了很多時間來檢查隊列，了解優化是如何進行的。我認為您對我們如何結束三月、如何開始四月以及我們如何看待遊戲的結果有最好的看法。因此，我認為就此事的展開方式而言，您的觀點最接近我們的觀點。

Okay. Great. And then Q4 was a big renewal quarter. It sounds like it was a strong bookings quarter. Maybe just talk about how those commitments came in relative to what you expected? What is the growth you're seeing on average, apples-to-apples on renewals? How do you kind of gain more budget share there?

好的。偉大的。然後第四季度是一個重要的更新季度。聽起來這是一個強勁的預訂季度。也許只是談談這些承諾是如何與你的預期相對應的？您所看到的平均續訂增長率是多少？您如何在那裡獲得更多的預算份額？

Yes. We were really pleased with how it expanded. Again, I think you saw that percolate through RPO, both in terms of total as well as in terms of current. I guess the thing that I would highlight for you and just to keep in mind on consumption is even with an expanded commitment, we still have to wait for it to happen. And so there is a little bit of a difference with our business model where if I were guiding on subscription, I'd be guiding up several points right now based on the bookings but it takes time. Similar to some of our friends in consumption where you can take down a commitment, but it still takes time for the customer to implement and ultimately, to garner value. And so once they garner value, we generate revenue. But I'm pleased December was a good quarter end, March was a good quarter end, pleased with the commercial execution around taking expanded commitments and setting up the business for growth.

是的。我們對它的擴展感到非常滿意。同樣，我認為您已經看到了 RPO 的滲透，無論是在總量方面還是在當前方面。我想我要向你們強調的一件事是，即使有擴大的承諾，我們仍然必須等待它發生。因此，我們的商業模式有一點不同，如果我指導訂閱，我現在會根據預訂指導幾個點，但這需要時間。類似於我們一些消費領域的朋友，你可以放下承諾，但客戶執行並最終獲得價值仍然需要時間。因此，一旦它們獲得價值，我們就會產生收入。但我很高興 12 月是一個良好的季度末，3 月是一個良好的季度末，對圍繞擴大承諾和建立業務增長的商業執行感到滿意。

Our next question is from Sanjit Singh with Morgan Stanley.

我們的下一個問題來自摩根士丹利的桑吉特·辛格。

This is (inaudible) on for Sanjit. I just want to build on sort of the last question. And as we're kind of thinking about bridging the Q4 results or the Q1 guide and thinking about the usage trends sort of in the quarter, you talked a little bit about March and April. Is there any way you could sort of contextualize that further and maybe expand that into what you're seeing in May and sort of how that sets up with 1 month left in the quarter?

這是 Sanjit 的（聽不清）。我只想以最後一個問題為基礎。當我們考慮連接第四季度的結果或第一季度的指南並考慮本季度的使用趨勢時，您談到了三月和四月。您是否可以通過任何方式進一步了解這一情況，並可能將其擴展到您在 5 月份看到的情況以及本季度還剩 1 個月的情況如何？

It's a great question. I think we were -- I think what we tried to share in our prepared remarks was that the seasonal -- our component of peaking in the holidays and then coming down and hitting the trough in February, kind of, I'd say, the curve kind of unfolded as expected. It was certainly deeper because we did see the cloud optimization and it was -- that was something that was outside the seasonal element. And then it came back through March, but we didn't hit our peak in March as we had planned. And as I think we shared in our remarks, that peak actually happened in April. And so we're kind of tracking along a slightly different curvature and that's what is really reflected in the remark where in Q4 and in prior year, we were looking at excluding migrations growing about 30% or greater.

這是一個很好的問題。我認為我們在準備好的發言中試圖分享的是季節性因素，即我們在假期中達到頂峰，然後在二月份下降並達到低谷，我想說的是，曲線按預期展開。它肯定更深入，因為我們確實看到了雲優化，而且它是季節性因素之外的東西。然後到了三月份又回來了，但我們並沒有按照計劃在三月份達到峰值。正如我認為我們在評論中所分享的那樣，這個高峰實際上發生在四月份。因此，我們正在沿著略有不同的曲線進行跟踪，這就是在第四季度和前一年的評論中真正反映出來的，我們正在考慮排除增長約 30% 或更高的遷移。

And that's why I think we shared the remarks that we think this year we'll probably be closer to around 20%, plus or minus a handful of points. And I think that's what we're tracking right now. Again, we're going to continue working very closely with our customers around migrating subscriptions over to consumption and just continue bringing the business model together to have 1 business model by the time we exit the year.

這就是為什麼我認為我們認為今年我們可能會接近 20% 左右，加上或減去一些點。我認為這就是我們現在正在追踪的。同樣，我們將繼續與客戶密切合作，將訂閱遷移到消費，並繼續將業務模式整合在一起，在今年退出時擁有一種業務模式。

Okay. Great. And then just a quick one. Are customers still reducing usage towards the end of their contracts to get more in line with their commitments? Is that still a dynamic you're seeing or something to think about on a go-forward basis?

好的。偉大的。然後是快速的。客戶是否仍在合同結束時減少使用量，以更符合他們的承諾？這仍然是您所看到的動態或未來需要考慮的事情嗎？

It is. And we do see that pattern playing out, and that's where our focus has been shifting to multiyear contracts and also renewing customers early to avoid that type of dynamic from kicking in. And so that is a focus area and will continue to be a focus area for the next couple of quarters.

這是。我們確實看到了這種模式的出現，這就是我們的重點轉向多年期合同的地方，並儘早續訂客戶，以避免出現這種動態。因此，這是一個重點領域，並將繼續是一個重點領域接下來的幾個季度。

Our next question is from the line of Taz Koujalgi with Wedbush.

我們的下一個問題來自 Taz Koujalgi 和 Wedbush。

I have a 2-part question. You've been migrating customers now from the subscription model to consumption for almost 3 years. Can you comment on when the customer moves initially from subscription to consumption. What is the initial drop in their spend? Just a way to quantify what that drop looks like? And then how long does it take in terms of i don't know months or quarters for them to go back to their run rate that they had on the subscription arrangement? Any anecdotes or any color given what you've seen so far in the last few years?

我有一個由兩部分組成的問題。近三年來，您一直在將客戶從訂閱模式遷移到消費模式。您能否評論一下客戶最初從訂閱轉向消費的時間。他們的支出最初下降了多少？只是一種量化下降情況的方法嗎？然後，我不知道他們需要多長時間才能恢復到訂閱安排上的運行率？過去幾年中您所看到的任何軼事或任何顏色？

It's a great question, and I'm not sure if I have a fully satisfactory answer because the cohorts vary a lot. In general, what we'll see is that somebody has been using an extensive amount of logs as one example or maybe they are ingesting massive amounts of data for something for which it was a fixed-price arrangement. And so I think as they think about really how to set up observability. I think that usually results in the pullback where there is an optimization and there's an implementation around using our -- either our some of our technical advisers or a center of excellence to really instrument observability probably the right way. And that's usually what results in the pullback from my perspective, at least as I've gauged accounts.

這是一個很好的問題，我不確定我是否有一個完全令人滿意的答案，因為群體差異很大。一般來說，我們會看到有人一直在使用大量日誌作為一個例子，或者他們可能正在為固定價格安排的某些東西攝取大量數據。所以我認為，當他們真正思考如何建立可觀察性時。我認為這通常會導致回調，即進行優化，並使用我們的一些技術顧問或卓越中心來實施，以真正以正確的方式測量可觀察性。從我的角度來看，這通常是導致回調的原因，至少從我對賬戶的評估來看是這樣。

And as they identify that footprint and best practices that recently I saw a customer suddenly start spending and going into Prometheus as an example, where I've seen people start to expand new capabilities and workloads. But there is a rationalization process, and I wish I had a better answer for you where I can give you an exact amount of time it takes, but it does vary cohort by cohort that unfortunately doesn't yield to a standard answer.

當他們確定足跡和最佳實踐時，最近我看到客戶突然開始花錢並以 Prometheus 為例，我看到人們開始擴展新的功能和工作負載。但是有一個合理化的過程，我希望我能為你提供一個更好的答案，我可以給你一個確切的時間，但它確實因隊列而異，不幸的是並不能產生標準答案。

Got it. And then just a follow-up. So you -- it looks like you'll be migrating most of your base to consumption by next year, by fiscal '24. Does that mean that this was the last year when that, (inaudible) drag on the overall growth. And then fiscal '25 onwards, your overall revenue growth should be in line with your consumption revenue growth. You shouldn't have any drag any (inaudible)...

知道了。然後只是後續行動。所以，到明年，即 24 財年，您似乎將把大部分基礎轉向消費。這是否意味著這是最後一年（聽不清）拖累整體增長。然後從 25 財年開始，您的總體收入增長應該與消費收入增長保持一致。你不應該有任何阻力（聽不清）......

Correct. I think we called out 4 to 6 quarters. But clearly, if we can wrap it all up in 4 quarters, that's really our preference. So we'll be working hard to wrap it up this year. So that as we go into fiscal '25, that would be the first year where we wouldn't have that headwind. But it could take more than 4 quarters. But again, clearly, we're motivated.

正確的。我想我們打了 4 到 6 個季度。但顯然，如果我們能在四個季度內完成所有工作，那確實是我們的偏好。因此，我們今年將努力完成這一工作。因此，當我們進入 25 財年時，這將是我們第一年不會遇到這種逆風。但這可能需要四個多季度的時間。但很明顯，我們有動力。

The next question is from Michael Turits with KeyBanc.

下一個問題來自 KeyBanc 的 Michael Turits。

Michael Turits and I'm sorry if this was covered before. But you have pretty stable growth and didn't seem to be seeing the effects of cloud optimization much in prior quarters, even though the big cloud guys were. And 1 of your observability competitors (inaudible). And in this quarter, and Microsoft talked about starting the LAP optimization and a slower rate of [decel]. And your competitor also talked about usage growth rebounding. So what's the difference in terms of your trajectory, which seems to have been stable and this quarter got worse versus those other 2 who had been getting worse in the last quarter and [targets have seemed] to improve slightly, at least from a second derivative perspective this quarter?

邁克爾·圖里茨（Michael Turits），如果之前報導過這個問題，我很抱歉。但你的增長相當穩定，並且在前幾個季度似乎沒有看到雲優化的效果，儘管大型雲公司看到了。還有 1 位可觀察性競爭對手（聽不清）。而在本季度，和微軟談到了啟動LAP優化和較慢的速度[decel]。您的競爭對手也談到了使用量增長的反彈。那麼，就你的軌跡而言，有什麼區別，它似乎一直穩定，本季度變得更糟，而其他兩個在上個季度變得更糟，並且[目標似乎]略有改善，至少從二階導數來看是這樣本季度的前景？

Yes. Thanks, Michael. As we thought about the guidance, and David laid this out earlier, so let me take a crack at it. As we thought about the plan for FY '24, there's really 3 ongoing trends that are useful to tease apart. The first is our consumption business has been growing very strongly, and it's a source of confidence for us, both from past quarters as well as our future long-term prospects for the business. That's not been visible to you in the past. It's now in our 10-K and in the investor supplemental and we're excited to share that and unpack it more on Thursday as well.

是的。謝謝，邁克爾。當我們思考指導時，大衛之前已經闡述了這一點，所以讓我來嘗試一下。當我們考慮 24 財年的計劃時，確實有 3 個持續的趨勢值得梳理。首先，我們的消費業務增長非常強勁，這對我們來說是信心的源泉，無論是過去幾個季度還是我們未來的長期業務前景。這在過去對你來說是不可見的。它現在出現在我們的 10-K 和投資者補充材料中，我們很高興與大家分享，並在周四發布更多內容。

The second, though, and equally now visible is the disaggregation of that from our subscription business, which has been offsetting the success we've been having with consumption and continues to drag on total company growth and profitability. And that's why I understand so many of the questions have been -- including the last one, have been around that subscription migration and the final chapter of driving that. including the prospects for increased churn.

不過，現在同樣明顯的第二個問題是訂閱業務的分解，這抵消了我們在消費方面取得的成功，並繼續拖累公司整體增長和盈利能力。這就是為什麼我知道很多問題——包括最後一個問題——都圍繞著訂閱遷移以及推動這一過程的最後一章。包括客戶流失率增加的前景。

The third 1 and the 1 that you're asking around are the ongoing effects of the macro and optimization efforts. And when we talk about cloud optimization, we're talking about not only the cloud optimization that customers may be doing with their hyperscale provider, Azure or AWS or GCP but also cloud optimization that applies to New Relic. Even though we see that optimization in the long term being an opportunity for us because we've got the all-in-one model, we're the easiest for customers to standardize on and so we can offset higher-priced competitors. It's also an opportunity for customers to look at, are they getting value from every dollar of their New Relic spend.

第三個 1 和您詢問的 1 是宏觀和優化工作的持續影響。當我們談論云優化時，我們不僅談論客戶可能與其超大規模提供商 Azure、AWS 或 GCP 進行的雲優化，還談論適用於 New Relic 的雲優化。儘管我們認為從長遠來看，優化對我們來說是一個機會，因為我們擁有一體化模型，但我們是最容易讓客戶標準化的，因此我們可以抵消價格更高的競爭對手。這對客戶來說也是一個機會，可以了解他們是否從 New Relic 的每一美元支出中獲得價值。

And we see them, in some cases, optimizing the number of users they have in the platform or the amount of data they're sending us. And that's independent again from their hyperscaler public cloud optimization that they may also be doing. As we looked at in our FY '24 plan, we realized the right thing to do is to square these 3 trends with a strategy that accelerates New Relic's total company growth and profitability. So for FY '24, we're going to accelerate the long-term growth of the consumption business by embracing those optimization efforts and helping customers choose New Relic as the standard.

在某些情況下，我們看到他們優化了平台中的用戶數量或向我們發送的數據量。這再次獨立於他們可能也在做的超大規模公共雲優化。正如我們在 24 財年計劃中所看到的那樣，我們意識到正確的做法是將這 3 個趨勢與加速 New Relic 公司總體增長和盈利能力的戰略結合起來。因此，對於 24 財年，我們將通過這些優化工作並幫助客戶選擇 New Relic 作為標準來加速消費業務的長期增長。

We're also going to simplify and grow the consumption business by accelerating the transition of those subscription customers over to consumption at a rate that we previously hadn't anticipated. So that we can have a higher growth rate total company, higher total company growth rate as well as increased profitability by having 1 business model to focus on and grow over time. That was probably a longer answer and broader perspective on the cloud optimization question, but hopefully gives you the color on how those 3 trends interplay in our strategy.

我們還將通過以我們之前未曾預料到的速度加速這些訂閱客戶向消費的轉變，從而簡化和發展消費業務。這樣，我們就可以通過專注於一種商業模式並隨著時間的推移不斷發展，從而獲得更高的公司總體增長率、更高的公司總體增長率以及更高的盈利能力。對於雲優化問題，這可能是一個更長的答案和更廣泛的視角，但希望能讓您了解這 3 個趨勢如何在我們的策略中相互作用。

Our last question is from Mark Cash with Raymond James.

我們的最後一個問題是馬克·卡什和雷蒙德·詹姆斯提出的。

Right. This is Mark on for Adam. Bill, maybe building off a couple of questions you've gotten so far. The strength in the platform adoption while there's an expectation for higher churn that you've alluded to a few times as customers who [off] subs and including the top cohort. So where are these customers going, if churning? And are those customers typically buying fewer products you?

正確的。這是亞當的馬克。比爾，也許是基於您目前遇到的幾個問題。平台採用的優勢，同時預計會有更高的客戶流失率，您已經多次提到，作為那些[關閉]訂閱者（包括頂級群體）的客戶。那麼，如果這些客戶流失了，他們會去哪裡呢？這些客戶通常會購買較少的產品嗎？

Yes. Good question. In the disaggregation of the business, we talk about a total of 16,000 customers, 12,000 in consumption, about 4,000 in subscriptions. And Dave talked about for those 4,000 kind of 3 cohorts, a small number of very large contracts, a moderate number of medium size, say, 5 figure contracts and then 2,000 that are long tail, small customers and 1,000 of those customers probably belong in our free tier. So they're not going anywhere with -- let's start with those 1,000. They're staying on New Relic. They just qualify for a free tier going forward, and it saves them money, and we have an opportunity to continue to nurture them back into being paid customers. which we believe we will do over time.

是的。好問題。在業務分解中，我們總共有 16,000 個客戶，其中 12,000 個消費，大約 4,000 個訂閱。戴夫談到了這 4,000 種 3 類客戶，少量非常大的合同，中等數量的中型合同，比如說 5 位數的合同，然後是 2,000 個長尾、小客戶，其中 1,000 個客戶可能屬於我們的免費套餐。所以他們不會去任何地方——讓我們從那 1,000 個人開始。他們留在新遺物上。他們只是有資格獲得未來的免費套餐，這可以節省他們的錢，而且我們有機會繼續培養他們重新成為付費客戶。我們相信隨著時間的推移我們會做到這一點。

The other 1,000 of that long-tail customer base frankly exhibit a lot of behaviors of low engagement. And they may have signed up for New Relic. They're still in the legacy model. They may have signed up 5 years ago, 10 years ago with a credit card, they don't even maybe realize they're still paying for New Relic. And those customers, once we nurture them into the consumption model may choose to just cancel the subscription, they no longer need to service.

坦白說，該長尾客戶群中的另外 1,000 個客戶表現出了許多低參與度的行為。他們可能已經註冊了 New Relic。他們仍然處於遺留模型中。他們可能在 5 年前、10 年前就用信用卡註冊了，他們甚至可能沒有意識到他們仍在為 New Relic 付費。而那些客戶，一旦我們將他們培養成消費模式，他們可能會選擇取消訂閱，他們不再需要服務。

For the medium and large size customers, as Dave said, we've had a lot of success moving those in the past. We'll continue, we believe, to have success I think our customers that have been in the subscription customer -- subscription model for 3 years despite previous opportunities to move, they've often gotten very favorable pricing terms. And so they've been reluctant to move because they know they've got a great deal where they're at. And now that the time has come to move them there's increased pressure and more negotiation that we need to do to get them into the consumption model. Some may choose to go to competitors. Others, we see choose to go back to open source and try to post it your own route.

對於中型和大型客戶，正如戴夫所說，我們過去在移動這些客戶方面取得了很多成功。我們相信，我們將繼續取得成功，我認為我們的客戶已經採用訂閱客戶訂閱模式三年了，儘管之前有過遷移的機會，但他們經常獲得非常優惠的定價條件。因此，他們一直不願意搬家，因為他們知道自己已經得到了很多好處。現在是時候讓他們進入消費模式了，我們需要做更多的壓力和更多的談判才能讓他們進入消費模式。有些人可能會選擇去找競爭對手。其他人，我們看到選擇返回開源並嘗試將其發佈為您自己的路線。

But many will stay on New Relic. We believe the majority will stay on New Relic, but potentially with lower spend or a different pricing arrangement. And so that's what all has been factored into the guide for FY '24.

但許多人會留在 New Relic。我們相信大多數人會繼續使用 New Relic，但可能會降低支出或採用不同的定價安排。這就是 24 財年指南中所考慮的內容。

Very helpful. And then, David, if I could ask you one, I've just seen your K, you guys published that 73% of RPOs to be recognized going 12 months, but New Relic has typically provided cRPOs at 24-month number besides the last 2 filings. So could you find an update on the growth rate of 12-month cRPO or the value per year ago period?

很有幫助。然後，David，如果我可以問你一個問題，我剛剛看到你的 K，你們發布了 73% 的 RPO 需要 12 個月才能得到認可，但 New Relic 通常會提供 24 個月的 cRPO，除了最後一個數字之外2份備案。那麼，您能找到 12 個月 cRPO 增長率或上年同期值的最新信息嗎？

For 12 months cRPO?

12 個月的 cRPO？

Yes.

是的。

See if I have that at my fingertips. But if not, I'll find a way to roll it into 1 of our other mechanisms we're reporting. I think it was up 10% roughly, but -- I think we're looking at about $600 million for March of '23 compared to about $550 million for March of '22.

看看我是否有這個。但如果沒有，我會找到一種方法將其納入我們正在報告的其他機制之一中。我認為大約增長了 10%，但是 - 我認為 23 年 3 月的收入約為 6 億美元，而 22 年 3 月的收入約為 5.5 億美元。

Thank you. That concludes today's question-and-answer session as well as today's call. Thank you for your participation. You may now disconnect your lines.

謝謝。今天的問答環節和電話會議到此結束。感謝您的參與。您現在可以斷開線路。