ServiceNow, Inc. (NOW) 2020 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Q1 2020 ServiceNow Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

各位女士、先生，感謝您稍候，歡迎參加 ServiceNow 2020 年第一季（Q1）財報電話會議。（接線員指示）請注意，今天的會議將被錄音。（接線員指示）

I would now like to hand the conference over to your speaker today, Vice President of Investor Relations, Lisa Banks. Thank you. Please go ahead.

現在我想把會議交給今天的講者——投資人關係副總裁 Lisa Banks。謝謝。請開始。

Good afternoon, and thank you for joining us for ServiceNow's First Quarter 2020 Earnings Conference Call. Consistent with where we are operating globally, our call today is work from home. Joining me are Bill McDermott, our President and Chief Executive Officer; and Gina Mastantuono, our Chief Financial Officer. During today's call, we will review our first quarter 2020 financial results and discuss our financial guidance for the second quarter of 2020 and full year 2020.

各位下午好，感謝您參加 ServiceNow 2020 年第一季財報電話會議。與我們在全球的營運狀況一致，我們今天的電話會議採居家辦公方式進行。與我一同出席的有我們的總裁暨執行長 Bill McDermott，以及財務長 Gina Mastantuono。在今天的會議中，我們將回顧 2020 年第一季的財務結果，並討論 2020 年第二季及 2020 全年的財務指引。

Before we get started, we want to emphasize that some of the information discussed on this conference call, particularly our guidance, is based on information as of April 29, 2020, and contains forward-looking statements that involve risks, uncertainties and assumptions, including those related to the impacts of COVID-19 on our business and global economic conditions. The forward-looking guidance we will provide today is based on our assumptions as to the macroeconomic environment in which we will be operating. Those assumptions are based on the facts as we know them today. Many of these assumptions relate to the matters that are beyond our control and changing revenue, including but not limited to the time frames for and severity of social distancing and other mitigation requirements, the impact of COVID-19 on our customers' purchasing decisions and the length of our sales cycles particularly for customers in certain industries. Significant changes in the future could cause us to modify our guidance higher or lower. Please refer to the press release and risk factors and MD&A in our SEC filings, including our most recent 10-K and our 10-Q that will be filed for Q1 2020, for information regarding such risks, uncertainties and assumptions that may cause actual results to differ materially from those set forth in such forward-looking statements.

在開始之前，我們要強調，本次電話會議中討論的部分資訊，特別是我們的指引，是以 2020 年 4 月 29 日當時所掌握的資訊為基礎，並包含前瞻性陳述；此類陳述涉及風險、不確定性與假設，其中包括與 COVID-19 對我們業務及全球經濟狀況影響相關者。我們今天提供的前瞻性指引係基於我們對所處宏觀經濟環境的假設。這些假設係根據我們目前所知的事實而定。許多假設與我們無法控制且會影響營收變動的事項相關，包括但不限於社交距離及其他緩解措施要求的時間範圍與嚴重程度、COVID-19 對客戶採購決策的影響，以及我們的銷售週期長度（特別是某些產業的客戶）。未來若出現重大變化，可能導致我們上調或下調指引。關於可能導致實際結果與此等前瞻性陳述所載內容出現重大差異的風險、不確定性與假設，請參閱我們今日稍早發布的新聞稿，以及我們向 SEC 提交文件中的風險因素與管理階層討論與分析（MD&A），包括我們最新的 10-K，以及將就 2020 年第一季提交的 10-Q。

We'd also like to point out that the company reports non-GAAP results in addition to and not as a substitute for or superior to financial measures calculated in accordance with GAAP. All financial figures we will discuss today are non-GAAP except for revenues, net income and remaining performance obligations. To see the reconciliation between these non-GAAP and GAAP results, please refer to our press release filed earlier today, our investor presentation and, for prior quarters, previously filed press releases, all of which are posted at investors.servicenow.com. A replay of today's call will also be posted on the website.

我們也要指出，公司除依 GAAP 計算的財務衡量指標外，亦報告非 GAAP 結果；非 GAAP 結果並非 GAAP 指標的替代品，也不應被視為優於 GAAP 指標。除營收、淨利與剩餘履約義務外，我們今天討論的所有財務數字皆為非 GAAP。若要查看非 GAAP 與 GAAP 結果之間的調節表，請參閱我們今日稍早提交的新聞稿、投資人簡報，以及先前季度已提交的新聞稿；上述資料均發布於 investors.servicenow.com。今日電話會議的重播也將發布於該網站。

Please note that due to the short-term uncertainty of the ongoing COVID-19 crisis, we have decided to postpone our Financial Analyst Day for a future date. We expect it will occur in the second half of the year so we can provide more visibility into 2021 and the longer-term operating environment.

請注意，由於持續中的 COVID-19 危機在短期內仍具不確定性，我們已決定將金融分析師日延後至未來日期舉行。我們預期將在今年下半年舉辦，以便就 2021 年及更長期的營運環境提供更高的能見度。

With that, I would now like to turn the call over to Bill.

接下來，我想把電話會議交給 Bill。

Thank you, Lisa, and good afternoon, everyone. Welcome to our Q1 earnings call. Let me begin by extending my hope that you and your loved ones are healthy and safe. We wish a speedy recovery for anyone affected by COVID-19. And of course, our hearts go out to those who tragically lost a loved one. For the millions of people economically impacted, we're doing our part to support those in need and to get the world working again. We are truly in this together.

謝謝你，Lisa，各位下午好。歡迎參加我們的第一季財報電話會議。首先，我希望您與您的親友都健康平安。我們祝福所有受 COVID-19 影響的人早日康復。當然，對於不幸失去摯愛的人，我們深表哀悼。對於數以百萬計在經濟上受到影響的人們，我們也正盡一己之力，支持有需要的人，並讓世界重新運轉。我們確實同舟共濟。

Here are the key takeaways I'll reinforce in today's remarks: First, ServiceNow is a unique platform, a very strong company. We are well positioned in this seminal moment. Next, digital transformation was a business imperative pre-COVID with $7.4 trillion of projected spend over the next 3 years. Post COVID, digital transformation will accelerate, and ServiceNow is the workflow standard for digital transformation. And most important, the Now Platform, the platform of platforms, has become the standard for workflow design experiences.

以下是我在今天談話中要再次強調的重點：第一，ServiceNow 是一個獨特的平台，也是一家非常強大的公司。在這個關鍵時刻，我們具備良好的定位。第二，在 COVID 之前，數位轉型就是企業的必要之務，未來 3 年預計支出達 7.4 兆美元。COVID 之後，數位轉型將加速，而 ServiceNow 是數位轉型的工作流程標準。最重要的是，Now Platform——平台中的平台——已成為工作流程設計體驗的標準。

As the COVID-19 pandemic spread around the world in Q1, ServiceNow focused on protecting the health and safety of our employees, serving our customers and supporting our communities. Leadership by example has never been more important. We never stopped pushing. We will not slow down. You've seen our earnings release. We delivered a strong Q1, beating guidance and consensus. We have shown we can deliver. In March, as the pandemic was being felt everywhere in the world, our more than 11,000 employees seamlessly transitioned to a work-from-home environment. I'm so incredibly proud of how ServiceNow employees adjusted. Our team focused, they executed, they delivered. Employees feel motivated, inspired and proud. After shifting to work from home, we held our biggest all-hands company meeting ever, a live, global, digital event where we laid out our plans to support each other and to serve our customers. Feedback from our recent employee satisfaction survey is also very encouraging. 99% are excited about our future. 95% feel more inspired by our purpose than ever. 98% feel confident in our crisis response. ServiceNow employees are ready to lead.

隨著 COVID-19 疫情在第一季於全球蔓延，ServiceNow 專注於保護員工的健康與安全、服務客戶並支持社區。以身作則的領導力從未如此重要。我們從未停止推進，也不會放慢腳步。您已看到我們的財報新聞稿。我們交出強勁的第一季成績，超越指引與市場共識。我們已證明我們能夠交付成果。3 月，當疫情在全球各地被感受到時，我們超過 11,000 名員工無縫轉換至居家辦公環境。我對 ServiceNow 員工的調適感到無比自豪。我們的團隊專注、執行、交付。員工感到充滿動力、受到啟發並引以為傲。轉為居家辦公後，我們舉辦了史上規模最大的全員大會——一場即時、全球、數位化的活動，我們在其中闡述彼此支持與服務客戶的計畫。近期員工滿意度調查的回饋也非常令人鼓舞：99% 對我們的未來感到興奮；95% 比以往任何時候都更受我們使命所激勵；98% 對我們的危機應對有信心。ServiceNow 員工已準備好帶頭前行。

We're strengthening the amazing purpose, culture and character of our company. Our seamless transition to work from home is a powerful demonstration of the Now Platform. Our cloud-native Now on Now solutions enabled our employees to maintain and often improve productivity. Our virtual agent technology, our Now Mobile app, our digitized workflows on the Now Platform, allowed employees to easily self-manage their work requirements. We didn't miss a beat supporting our customers. Our cloud uptime numbers remained world-class. Cloud consumption stayed high as customers relied on the Now Platform as a workflow workhorse. Around the world, we see that customers who are farthest along in their digital transformation are better equipped to manage this crisis. Companies lagging behind are realizing that they now have a burning platform. Accelerating digital transformation has become a business imperative.

我們正在強化公司卓越的使命、文化與品格。我們無縫轉換至居家辦公，是 Now Platform 的有力示範。我們雲端原生的 Now on Now 解決方案，使員工得以維持、甚至經常提升生產力。我們的虛擬代理技術、Now Mobile 應用程式，以及 Now Platform 上的數位化工作流程，讓員工能輕鬆自主管理其工作需求。在支援客戶方面，我們也毫不間斷。我們的雲端上線時間（uptime）數據仍維持世界級水準。隨著客戶仰賴 Now Platform 作為工作流程的主力引擎，雲端使用量保持高檔。在全球範圍內，我們看到數位轉型走得最前面的客戶，更能妥善應對這場危機。落後的企業正意識到，他們現在面臨迫在眉睫的壓力。加速數位轉型已成為企業的必要之務。

Behind every great experience is a great workflow. Today, that matters more than ever. The power of the Now Platform has become self-evident to customers in this pandemic. They are leveraging the Now Platform to quickly deploy workflow apps that enable better crisis management and business outcomes. Our COVID-19 emergency response apps are a great example. These 4 apps, 1 developed in partnership with the Washington State Department of Health and 3 developed by our own team, were released at no charge at the end of March. More than 5,000 installations have taken place. Washington State, San Francisco and Los Angeles are just a few examples of how we are helping government agencies respond. CIOs are telling us that their teams are using the Now Platform to deliver workflow-designed experiences that their companies need now. For example, the Lowe's Corporation was facing a surge of emergency paid leave request due to COVID-19. Within 96 hours, they built a mobile leave request app on the Now Platform and deployed it to 330,000 employees. This is what Q1 was all about, leading, helping our customers deal with reality, helping them do what needs to be done.

每一個卓越體驗的背後，都有卓越的工作流程。如今，這比以往任何時候都更重要。在這場疫情中，Now Platform 的力量對客戶而言已不言自明。他們正運用 Now Platform 快速部署工作流程應用程式，以實現更好的危機管理與業務成果。我們的 COVID-19 緊急應變應用程式就是很好的例子。這 4 款應用程式中，1 款與華盛頓州衛生部合作開發，另外 3 款由我們團隊自行開發，並於 3 月底免費發布。迄今已完成超過 5,000 次安裝。華盛頓州、舊金山與洛杉磯只是我們協助政府機關應對的幾個例子。CIO 們告訴我們，他們的團隊正使用 Now Platform 交付以工作流程設計的體驗，滿足公司當下的需求。舉例來說，Lowe's Corporation 因 COVID-19 面臨緊急帶薪休假申請激增。不到 96 小時，他們就在 Now Platform 上建置了一款行動休假申請應用程式，並部署給 33 萬名員工。這就是第一季的核心：領導、協助客戶面對現實，幫助他們完成必須完成的事。

Let's look at some of the results now. We had 37 deals greater than $1 million this quarter. That is up 48% year-over-year. In fact, most deals closed in the final weeks of March, consistent with normal linearity. Our renewal rate remained best-in-class at 97%. We saw strength in the Americas, our largest region. We also saw a strong growth in APJ despite the impact of COVID-19 throughout the quarter. Our Now cloud went live in Seoul, South Korea in March, where we signed 2 new customers representing major brands. We also saw strong deals completed in EMEA despite the challenging environment.

現在來看一些成果。我們本季有 37 筆超過 100 萬美元的交易，年增 48%。事實上，多數交易在 3 月最後幾週完成，符合正常的線性趨勢。我們的續約率維持同業最佳水準，達 97%。我們在美洲地區（我們最大的區域）表現強勁。儘管整個季度都受到 COVID-19 影響，我們也看到 APJ 的強勁成長。我們的 Now 雲於 3 月在南韓首爾正式上線，並簽下 2 家新客戶，代表主要品牌。即使環境充滿挑戰，我們在 EMEA 也完成了多筆強勁交易。

Q1 results reinforce the strength of our portfolio. Hear this: 18 of our top 20 deals with companies such as Merck, Humana and Siemens included 3 or more products. This included our second largest new customer transaction ever, which was signed with a Fortune 50 leading U.S. insurance company. We saw great momentum with ITSM Pro, which delivers increased automation and operational resiliency for our customers. Our business continuity and integrated risk management products continued their strong momentum. 16 of our top deals included multiple IT products. Chevron, for example, is realizing the power of the Now Platform by using multiple ServiceNow products across their business to drive productivity. They're now using our suite of IT products, and they deployed our HR products to their entire 44,000-person workforce. We saw a continued traction in HR and customer service management. Customers such as the U.S. Department of Health and Human Services are leveraging HR service delivery to respond to COVID-19. Half of our top 20 deals included HR.

Q1 業績再次印證我們產品組合的強勁實力。聽好了：在我們與 Merck、Humana 及 Siemens 等公司達成的前 20 大交易中，有 18 筆包含 3 項或以上產品。其中包括我們史上第二大新客戶交易，與一家《財富》50 強的美國領先保險公司簽署。我們在 ITSM Pro 上看到強勁動能，該方案可為客戶帶來更高的自動化與營運韌性。我們的業務持續性與整合式風險管理產品也延續強勁成長動能。我們前幾大交易中有 16 筆包含多項 IT 產品。以 Chevron 為例，他們在全公司範圍內使用多項 ServiceNow 產品，藉由 Now Platform 推動生產力，正體現其威力。他們目前使用我們的 IT 產品套件，並已將我們的 HR 產品部署至其全體 44,000 名員工。我們在 HR 與客戶服務管理方面也持續取得進展。美國衛生與公共服務部等客戶正運用 HR 服務交付來因應 COVID-19。我們前 20 大交易中有一半包含 HR。

We now have more than 50 CSM customers greater than $1 million, including one of the fastest-growing digital streaming services. This company launched an innovative, game-changing digital business. They did it with ServiceNow. Our customer service management technology is foundational, helping them scale faster than anyone imagined possible. In Q1, we also landed our largest CSM deal ever in APJ. Japanese-based Murata Manufacturing purchased CSM to enhance their customer support, reduce time to resolution and increase customer satisfaction. We also launched Orlando in March, our most innovative Now Platform release ever. Our day 1 adoption was ServiceNow's highest ever. Orlando features Now Intelligence, which gives customers unmatched AI, analytics and mobile capabilities across the Now Platform to support any workflow design experience. Driving new levels of enterprise productivity is what Orlando is all about. The Office of Information Technology at Princeton University, for example, successfully upgraded to Orlando and went live with CSM. For instance, CIO Jay Dominick says they moved fast to implement CSM functionality to serve current and prospective graduate students, staff, faculty and other stakeholders.

我們目前擁有超過 50 家 CSM 客戶，其合約金額超過 100 萬美元，其中包括一家成長最快的數位串流服務之一。該公司推出了創新、顛覆性的數位業務，而他們是透過 ServiceNow 做到的。我們的客戶服務管理技術是其基礎，協助他們以超乎想像的速度擴張。在 Q1，我們也在 APJ 拿下史上最大的一筆 CSM 交易。日本的 Murata Manufacturing 購買 CSM，以強化客戶支援、縮短解決時間並提升客戶滿意度。我們也在 3 月推出 Orlando，這是我們迄今最具創新性的 Now Platform 版本。我們的第 1 天採用率創下 ServiceNow 史上新高。Orlando 具備 Now Intelligence，為客戶在整個 Now Platform 上提供無與倫比的 AI、分析與行動能力，以支援任何工作流程設計體驗。Orlando 的核心就是推動企業生產力達到新高度。以普林斯頓大學資訊科技辦公室為例，他們成功升級至 Orlando 並上線 CSM。例如，CIO Jay Dominick 表示，他們迅速導入 CSM 功能，以服務目前與潛在的研究生、職員、教職員及其他利害關係人。

And I'm talking to many CEOs and C-suite leaders worldwide. Here's what they're telling me. In crisis, they are focused on protecting revenue, ensuring business continuity and driving productivity. They want an enterprise workflow platform that delivers ROI in 12 months or less. The good news is fast time to value is a ServiceNow core strength. The ServiceNow advantage is one architecture, one data model, one platform. This gives us strategic authority to be the clear choice for all customers across IT, employee and customer workflows across all geographies, industries and personas. Our partner ecosystem sees it -- sees this clearly, and they're doubling down on ServiceNow. We value how our partners, Accenture, Deloitte, DXC, EY, KPMG and many others, have stepped up to support our shared customers.

我也正在與全球許多 CEO 與 C-suite 高階主管對談。以下是他們告訴我的：在危機中，他們專注於保護營收、確保業務持續性並提升生產力。他們希望有一個企業工作流程平台，能在 12 個月或更短時間內帶來 ROI。好消息是，快速實現價值正是 ServiceNow 的核心強項。ServiceNow 的優勢在於：單一架構、單一資料模型、單一平台。這讓我們具備策略性的領導地位，成為跨 IT、員工與客戶工作流程、涵蓋所有地區、產業與角色的明確首選。我們的合作夥伴生態系也看到了——非常清楚——因此他們正加碼投入 ServiceNow。我們十分重視合作夥伴如 Accenture、Deloitte、DXC、EY、KPMG 等眾多夥伴挺身而出，支持我們共同的客戶。

Our Q2 fast-start playbook is focused on the priorities that matter most to our customers. We're engaging our customers like never before. Our Q2 fast-start playbook includes 5 key messages: digitally scale operations quickly and efficiently; reduce technology debt, there's a lot out there; ensure resilience for critical business operations; deliver employees the right digital experience from anywhere; and create new workflows fast. Each one of these priorities drives great employee and customer experiences. Last week, in fact, we engaged current and potential customers with these. These solutions, in a global, company-wide prospecting day, were built to drive pipeline. The results were simply outstanding. Our teams delivered 3x greater pipeline than any previous prospecting day ever. Our messages and solutions are resonating in every sector and every geography around the world.

我們的 Q2 快速啟動作戰手冊聚焦於客戶最重視的優先事項。我們以前所未有的方式與客戶互動。我們的 Q2 快速啟動作戰手冊包含 5 個關鍵訊息：快速且高效率地以數位方式擴大營運；降低技術負債——外面真的很多；確保關鍵業務營運的韌性；讓員工在任何地方都能獲得正確的數位體驗；以及快速建立新工作流程。這些優先事項每一項都能帶來卓越的員工與客戶體驗。事實上，上週我們就以這些主題與現有及潛在客戶互動。這些解決方案在一個全球、全公司範圍的開發日中推出，旨在推動銷售管線。成果非常出色。我們團隊創造的管線是以往任何一次開發日的 3 倍。我們的訊息與解決方案正在全球各產業、各地區引起共鳴。

We're also engaging customers and building pipeline through our digital Knowledge event. This launches on May 5. I encourage everyone to join us. We have 6 weeks of incredible content and digital experiences for our ServiceNow community. Knowledge already has more than twice the number of registered attendees that we had anticipated in the physical event we planned in Orlando. We expect the audience to keep growing throughout the next 6 weeks. It is going to be one heck of an experience. And this is a great example of how we have pivoted. We remain focused on delivering our customers and partners the connection, inspiration and education that makes Knowledge such a special event every year. And most importantly, it keeps the ServiceNow community strong.

我們也透過數位 Knowledge 活動與客戶互動並建立銷售管線。活動將於 5 月 5 日啟動。我鼓勵大家一起加入。我們將為 ServiceNow 社群帶來為期 6 週的精彩內容與數位體驗。Knowledge 的註冊人數已超過我們原先規劃在奧蘭多舉辦實體活動時預期的兩倍以上。我們預期在接下來 6 週內觀眾人數仍會持續成長。這將會是一場非常精彩的體驗。這也是我們如何快速轉向的絕佳例子。我們仍專注於為客戶與合作夥伴提供連結、啟發與學習，這正是 Knowledge 每年成為特別活動的原因。最重要的是，它讓 ServiceNow 社群保持強大。

Hey, I've covered a lot here. So let me recap. We seamlessly transitioned to a work-from-home environment and drove very strong Q1 performance. Our customers are innovating on the Now Platform to meet their crisis management, business continuity and productivity needs. ServiceNow is enabling customers to do what they must do to get the job done. Our pipeline is really strong. Our solutions are resonating. Our customers are asking for more. These are the actions and insights that have informed our outlook. Gina will provide more details on our guidance. She has led an exceptional analysis and thorough, bottoms-up effort on all possible scenarios. Our guidance reflects a slightly broader range considering the well-known uncertainties our customers face as a result of COVID-19 in the marketplace. Even as I say that, please keep in mind that ServiceNow is strong in all industries across the Fortune 500 and we are confident in our opportunities, our ongoing customer demand and our solutions and in the strong pipeline we see in our business. We are aware of the hard work ahead. We are taking nothing for granted. This is an innovation-led company with an incredible team. We have a proven track record and an unwavering commitment to customer success. Ladies and gentlemen, if it can be done, ServiceNow will do it. We are on the move.

我講了很多內容，所以讓我總結一下。我們無縫轉換到居家辦公環境，並在 Q1 交出非常強勁的表現。我們的客戶正在 Now Platform 上創新，以滿足其危機管理、業務持續性與生產力需求。ServiceNow 正在協助客戶完成他們必須完成的工作。我們的銷售管線非常強勁。我們的解決方案正在引起共鳴。客戶也要求更多。這些行動與洞見形塑了我們的展望。Gina 將提供更多關於我們財測指引的細節。她針對所有可能情境進行了卓越的分析與徹底的自下而上評估。我們的指引反映出略為更寬的區間，考量到 COVID-19 在市場上為客戶帶來眾所周知的不確定性。即便如此，請記住 ServiceNow 在《財富》500 強的各行各業都很強，我們對自身機會、持續的客戶需求、我們的解決方案，以及我們在業務中看到的強勁管線充滿信心。我們也清楚前方仍有艱鉅工作。我們不會把任何事視為理所當然。這是一家以創新驅動的公司，擁有一支令人驚嘆的團隊。我們有經驗證的實績，以及對客戶成功的堅定承諾。各位女士先生，只要做得到，ServiceNow 就會做到。我們正在前進。

I'd like to thank you very much for your time and attention. And I'll now turn over the call to Gina.

非常感謝各位撥冗與專注聆聽。接下來我把電話會議交給 Gina。

Thank you, Bill. We had a strong Q1, continuing the momentum coming out of 2019. We exceeded the high end of our guidance for subscription revenues and subscription billing, and we delivered another strong quarter of operating profit and free cash flow.

謝謝你，Bill。我們的 Q1 表現強勁，延續 2019 年以來的動能。我們的訂閱營收與訂閱開立帳單金額均超越指引區間上緣，並再次交出強勁的營業利益與自由現金流。

Q1 subscription revenues were $995 million, representing 36% year-over-year constant currency growth. Q1 subscription billings were $1.055 billion, representing 32% year-over-year adjusted growth. Remaining performance obligations, RPO, ended the quarter at approximately $6.6 billion, representing 32% year-over-year constant currency growth. And current RPO was approximately $3.3 billion, representing 33% year-over-year constant currency growth. Our renewal rate remained best in class at 97%. The strong top line performance during the quarter was driven by continued expansion of our existing customers. We also continue to see strength in adding new customers. We closed 3 new customers that are paying greater than $1 million in ACV. Our cohort of customers paying us more than $1 million annually continues to grow significantly, up 30% year-over-year. We now have 933 customers paying us more than $1 million in ACV. We saw strong profitability in Q1 with operating margin at 24% driven by our strong revenue performance and lower travel expenses due to the current work-from-home environment. Our free cash flow margin was 39%, benefiting from a seasonally high amount of collections from our strong Q4 billings. Our first quarter results demonstrate our position as the trusted innovator and partner to help our customers digitally transform.

Q1 訂閱營收為 9.95 億美元，按固定匯率計算年增 36%。Q1 訂閱開立帳單金額為 10.55 億美元，年增 32%（調整後）。剩餘履約義務（RPO）於季末約為 66 億美元，按固定匯率計算年增 32%。其中，當期 RPO 約為 33 億美元，按固定匯率計算年增 33%。我們的續約率維持同業最佳水準，達 97%。本季強勁的營收表現主要來自既有客戶的持續擴張。我們也持續看到新增客戶的強勁表現。我們成交了 3 家新客戶，其年度合約價值（ACV）超過 100 萬美元。每年支付我們超過 100 萬美元的客戶群持續顯著成長，年增 30%。目前共有 933 家客戶的 ACV 超過 100 萬美元。Q1 獲利能力強勁，營業利益率為 24%，主要受惠於強勁的營收表現，以及因目前居家辦公環境而降低的差旅費用。我們的自由現金流利潤率為 39%，受惠於 Q4 強勁開立帳單帶來的季節性較高收款。第一季結果展現了我們作為值得信賴的創新者與合作夥伴的地位，協助客戶推動數位轉型。

Before I move to guidance, I want to briefly discuss the impact of COVID-19 on our business. Many of our customers are now operating under very challenging circumstances. In response, companies especially those in highly affected industries, such as transportation, hospitality, retail and energy, may reevaluate how they're spending their dollars. CIO surveys and our own conversations with customers suggest though that software spending will prove to be more durable. We're seeing companies place a greater emphasis on return on investment and time to value. We remain well positioned to weather the short-term challenges. The Now Platform remains a mission-critical part of our customers' operations. We have a strong customer base across almost every industry, and over 80% of our business is serving large enterprises globally. As a result, we expect to sustain our high renewal rates. In fact, we saw many of our customers in the highly affected industries renew their contract and expand their usage of the Now Platform in the quarter with a large portion of this occurring in March.

在我進入財測指引之前，我想先簡要談談 COVID-19 對我們業務的影響。我們的許多客戶目前都在非常艱難的環境下營運。作為回應，企業——尤其是受影響嚴重的產業，例如運輸、旅宿、零售與能源——可能會重新評估其資金支出方式。CIO 調查以及我們與客戶的對話顯示，軟體支出仍將更具韌性。我們看到企業更加重視投資報酬率以及實現價值的時間。我們仍具備良好條件以度過短期挑戰。Now Platform 仍是客戶營運中不可或缺的關鍵任務平台。我們在幾乎所有產業都擁有強大的客戶基礎，且我們超過 80% 的業務是在全球服務大型企業。因此，我們預期能維持高續約率。事實上，我們看到許多來自受影響嚴重產業的客戶在本季續約並擴大 Now Platform 的使用，其中相當大一部分發生在 3 月。

As Bill mentioned, we entered Q2 with a fast-start playbook and I've been thoroughly impressed with how quickly we pivoted our go-to-market motion in this work-from-home environment. We've seen early success as our pipeline continues to grow, and we have been successful in closing business with both new and existing customers in the first few weeks of April. With that said, the challenges our customers are facing particularly in Q2 have been taken into account in our assumptions. While our customers value the Now Platform and we know they are prioritizing their investment in it, customers may delay new transformation initiatives until we have greater visibility into the future operations of their business. Given the current operating environment, we expect some variability. However, we believe this will be most acutely felt by our customer base in the highly affected industries we previously discussed, which represent approximately 20% of our business. The other 80% are in industries that are less effective. We are very committed to helping our customers manage through this difficult time. When required, we've taken measures to provide our customers with greater flexibility to manage through these challenges. As Bill said, we are engaging our customers like never before. We have done rigorous analysis to understand both the risks and opportunities ahead of us.

如 Bill 所提到的，我們以「快速啟動」作戰手冊進入第二季，而我對我們在居家辦公環境下能如此迅速調整市場進入策略（go-to-market motion）深感佩服。我們已看到初步成效，因為我們的銷售管道持續成長，且在 4 月前幾週，我們成功與新客戶及既有客戶完成成交。儘管如此，我們也已將客戶所面臨的挑戰——特別是在第二季——納入我們的假設之中。雖然客戶重視 Now Platform，且我們知道他們正優先投入於此，但在對其未來營運有更高能見度之前，客戶可能會延後新的轉型計畫。鑑於目前的營運環境，我們預期會出現一定程度的波動。然而，我們認為這種影響將最明顯地出現在我們先前討論的受影響嚴重產業客群，約占我們業務的 20%。其餘 80% 來自受影響較小的產業。我們非常致力於協助客戶度過這段艱難時期。在需要時，我們已採取措施，提供客戶更大的彈性以因應這些挑戰。正如 Bill 所說，我們正以前所未有的方式與客戶互動。我們也進行了嚴謹分析，以了解未來的風險與機會。

Because of the potential short-term impact to our business, we have made the following adjustments to our guidance methodology: First, our guidance assumes that the most significant headwind will occur in Q2 and Q3. We're also assuming these headwinds will ease and the economy will open more broadly by the end of the year. Second, we've increased the guidance range for subscription billing. This accounts for the increased uncertainty of new business, timing of renewals and billing terms particularly with customers in highly affected industries. While our guidance is based on the current assumptions about the macro environment, we are confident in our updated guidance and believe that by making these adjustments, we are appropriately factoring in the risks created by COVID-19. As a reminder, we have good visibility into our subscription billing. On average, 50% is driven by backlog, more than 25% by renewals, and the remaining portion comes from net new ACV. Subscription revenue is even more predictable. Approximately 80% of the revenue that will be recognized for the remainder of 2020 is already contracted and included in our backlog.

由於我們業務可能受到短期影響，我們已對指引方法做出以下調整：第一，我們的指引假設最顯著的逆風將出現在第二季與第三季。我們也假設這些逆風將逐步緩解，且經濟將在年底前更廣泛地重啟。第二，我們擴大了訂閱計費（subscription billing）的指引區間。此舉反映新業務不確定性增加、續約時點與計費條款的變動，尤其是受影響嚴重產業的客戶。雖然我們的指引是基於目前對總體環境的假設，但我們對更新後的指引有信心，並相信透過這些調整，我們已適切地納入 COVID-19 所帶來的風險。提醒一下，我們對訂閱計費具有良好能見度。平均而言，50% 由待履行訂單（backlog）驅動，超過 25% 由續約驅動，其餘部分來自淨新增 ACV。訂閱營收更具可預測性。2020 年剩餘期間將認列的營收中，約 80% 已簽約並納入我們的 backlog。

Now let's turn to guidance for the second quarter and full year 2020, which reflects the impact of COVID-19 and the FX headwinds as a result of declines in the British pound of 5%; the euro, 1%; and Australian dollars, 12% versus the U.S. dollar. For Q2, we expect subscription revenues between $995 million and $1 billion, representing 29% to 30% year-over-year constant currency growth. We expect subscription billings between $960 million and $980 million, representing 20% to 22% year-over-year adjusted growth. We expect a 23% operating margin, up 500 basis points year-over-year due to a reduction in travel expenses and the transition of Knowledge to a digital experience.

接下來談 2020 年第二季與全年指引，其中反映 COVID-19 的影響，以及因英鎊下跌 5%、歐元下跌 1%、澳幣下跌 12%（相對美元）所造成的匯率逆風。就第二季而言，我們預期訂閱營收介於 9.95 億美元至 10 億美元之間，代表以固定匯率計算的年增 29% 至 30%。我們預期訂閱計費介於 9.60 億美元至 9.80 億美元之間，代表年增 20% 至 22% 的調整後成長。我們預期營業利益率為 23%，較去年同期提升 500 個基點，主要因差旅費用下降，以及 Knowledge 轉為數位化體驗。

For the full year 2020, we expect subscription revenues to be between $4.125 billion and $4.145 billion, representing 28% to 29% year-over-year constant currency growth. This guidance reflects the headwind of $52 million from foreign currency and $43 million reduction driven by lower net new ACV compared to the midpoint of our previous guidance range. We expect subscription billings between $4.60 billion and $4.66 billion, representing 23% to 25% year-over-year adjusted growth. This reflects the headwind of $52 million of foreign exchange and $123 million reduction driven by the lower net new ACV compared to the midpoint of our previous guidance range. We continue to expect 2020 subscription gross margin at 86%, and we are raising our guidance for full year 2020 operating margin to 23%. This reflects savings from reduced travel, lower G&A hiring and the transition of Knowledge20 through digital experience. Looking into next year, we expect our investment in these areas to return to previous levels. Importantly, as we continue to feel confident about the long-term opportunity and path to $10 billion in revenue and beyond, we will continue to invest in strategic areas such as R&D and sales, and we expect to maintain a thoughtful pace of hiring throughout 2020. As always, we will continue to be disciplined as we evaluate our investments to ensure we generate the greatest ROI possible. We are maintaining full year 2020 free cash flow margin guidance of 29%, reflecting an increase in operating margin offset by a decrease in collections due to the expected increase in DSOs. Finally, we expect second quarter and full year 2020 diluted weighted average outstanding shares of 196 million.

就 2020 全年而言，我們預期訂閱營收介於 41.25 億美元至 41.45 億美元之間，代表以固定匯率計算的年增 28% 至 29%。此指引反映外幣帶來 5,200 萬美元的逆風，以及相較於先前指引區間中點，因淨新增 ACV 較低所導致的 4,300 萬美元下修。我們預期訂閱計費介於 46.0 億美元至 46.6 億美元之間，代表年增 23% 至 25% 的調整後成長。這反映外匯 5,200 萬美元的逆風，以及相較於先前指引區間中點，因淨新增 ACV 較低所導致的 1.23 億美元下修。我們仍預期 2020 年訂閱毛利率為 86%，並將 2020 全年營業利益率指引上調至 23%。這反映差旅支出降低、一般與行政（G&A）招募減少，以及 Knowledge20 轉為數位化體驗所帶來的節省。展望明年，我們預期在這些領域的投資將回到先前水準。重要的是，隨著我們持續對長期機會以及邁向 100 億美元以上營收的路徑充滿信心，我們將持續投資於研發與銷售等策略領域，並預期在 2020 年維持審慎的招募節奏。一如既往，我們將在評估投資時保持紀律，以確保產生最大的投資報酬率。我們維持 2020 全年自由現金流利潤率指引為 29%，反映營業利益率提升，但因預期 DSO 增加導致收款下降而部分抵銷。最後，我們預期 2020 年第二季與全年稀釋後加權平均流通股數為 1.96 億股。

In summary, as we navigate through this global pandemic, a few things have become clear. Digital transformation is accelerating as companies react to unexpected disruptions of their business. We will help companies transform the way work gets done. We have a world-class management team and the right product portfolio to weather the short-term challenges. We will help our customers evolve and we'll emerge from this crisis an even stronger and better positioned company. We're in a very strong financial position exiting Q1 with $6.6 billion in RPO and a strong net cash position of $2.2 billion. We will continue to invest for long-term growth. We have never been prouder of our employees and their continued focus on serving our customers, partners and communities. Our hungry and humble culture is stronger than ever. We can't thank our employees enough for their hard work and dedication.

總結來說，當我們在這場全球疫情中前行時，有幾點已變得清晰。隨著企業因應突如其來的營運中斷，數位轉型正在加速。我們將協助企業改變工作的完成方式。我們擁有世界級的管理團隊與合適的產品組合，足以度過短期挑戰。我們將協助客戶持續演進，並在這場危機後以更強大、定位更佳的公司姿態走出來。我們在第一季結束時財務狀況非常穩健，RPO 為 66 億美元，且淨現金部位強勁，達 22 億美元。我們將持續為長期成長投資。我們從未如此以員工為傲，他們持續專注於服務我們的客戶、合作夥伴與社群。我們「渴望且謙遜」的文化比以往更強大。我們對員工的辛勤付出與奉獻感激不盡。

With that, operator, we'd like to now turn over the call for questions. Thank you.

接下來，接線員，我們想把電話會議交給提問環節。謝謝。

(Operator Instructions) Your first question comes from the line of Alex Zukin with RBC Capital Markets.

（接線員指示）您的第一個問題來自 RBC Capital Markets 的 Alex Zukin。

Congrats on a good quarter. Bill, I guess you gave us some great insight on the kinds of customer conversations you're having right now. If you -- given where you sit and kind of how you're driving these conversations forward, can you give us a real-time look at the pace of business closing right now in April? You talked about the fast-start playbook. How -- can you just help us understand what you're facing right now and how you're pivoting the message given the breadth and flexibility of the portfolio? And then I've got a quick follow-up.

恭喜你們交出一個不錯的季度表現。Bill，我想你剛才對目前正在進行的客戶對話類型提供了很好的洞見。若以你所在的位置、以及你如何推動這些對話向前來看，你能否讓我們即時了解一下 4 月目前成交的節奏？你提到了「快速啟動」作戰手冊。你能否協助我們理解你們現在面臨的情況，以及在產品組合的廣度與彈性之下，你們如何調整訊息與策略？另外我還有一個簡短的追問。

Alex, it's a great question. As you know, the in-process measures of what companies do in times of crisis cannot be overstated in their importance and you're in a race against the clock in terms of how you execute. Having been through a few cycles in my career like this, it was clear to me that we had to immediately jump in on the COVID response actions we took with the 4 apps to work-from-home initiatives, the all-hands communication to get people rallied around our customer and then also, along with our leadership team, galvanize the company around a Q2 playbook that really sold into what the customer needed in the face of a market crisis. Gina did a great job telling you about the market dynamic that we handle mainly high-end customers in the Fortune 500 and 80% of them are in industries that, of course, feel some effects of COVID, but it's the 20% that feel the greatest shocks of COVID. So the stage is set for ServiceNow to perform well. What I'm seeing in the trenches as it relates to April is a continuation to what Gina and I told you about March. From a linearity basis, March closed as we would expect March to close, and April has actually started faster than April did last year. So on a year-over-year basis, our pipeline is bigger than it was last April. And what we actually have in the door is, on a percentage basis, higher than we had last April. And the forecast is not shaky. It is very solid when you talk to our sales leader, the executives that report into him, and you participate in the daily conversations in the trenches like I do with people that run companies and run government entities. So right now, things are going very well at ServiceNow.

Alex，這是個很好的問題。如你所知，在危機時刻企業所採取的進行中措施，其重要性再怎麼強調都不為過，而在執行層面你是在與時間賽跑。我職涯中經歷過幾次像這樣的循環，很清楚我們必須立刻投入我們針對 COVID 所採取的應對行動：透過 4 個應用程式推動居家辦公（work-from-home）倡議、全員（all-hands）溝通讓大家凝聚在我們的客戶周圍，並且也要與我們的領導團隊一起，讓公司圍繞一個 Q2 作戰手冊（playbook）團結起來，真正針對市場危機下客戶所需要的內容去推進銷售。Gina 很好地向你說明了市場動態：我們主要服務《財富》500 強中的高端客戶，其中 80% 所在產業當然會感受到一些 COVID 的影響，但真正受到 COVID 最大衝擊的是那 20%。因此，舞台已經為 ServiceNow 的良好表現搭建好了。就我在第一線看到的 4 月情況而言，延續了我和 Gina 對你談到的 3 月狀況。從線性（linearity）的角度看，3 月的結束符合我們對 3 月應有的預期，而 4 月的開局實際上比去年 4 月更快。因此，以年對年（year-over-year）來看，我們的管線（pipeline）比去年 4 月更大。而我們目前已進門（in the door）的部分，以百分比來看也高於去年 4 月。而且預測並不搖擺。當你與我們的銷售主管、向他匯報的高階主管交談，並像我一樣參與第一線每天的對話——與經營企業與政府機構的人交流——你會發現它非常穩健。所以目前 ServiceNow 的進展非常順利。

Perfect. And then maybe just one follow-up for Gina. You mentioned payment terms or DSOs. And investors right now, I think, are closely scrutinizing customer churn, dollar churn, contract flexibility, payment terms. So maybe what are you seeing right now from customers, particularly in that 20% of industries that are impacted? And how does that inform some of your visibility and confidence around the guidance for subscription billings, current RPO and any other factors?

很好。那接著也許再追問 Gina 一個問題。你提到付款條件或 DSO（應收帳款週轉天數）。我想投資人現在正密切檢視客戶流失（customer churn）、金額流失（dollar churn）、合約彈性、付款條件。所以你目前從客戶端看到的是什麼，特別是那 20% 受影響的產業？這又如何影響你對訂閱帳單（subscription billings）、當前 RPO（current RPO）以及其他因素之指引（guidance）的能見度與信心？

Sure. Well, I'll say that we've not had any customers at this point that are unable to make payments. And so our customer base remains very healthy. That being said, we have provided some flexibility and extended payment terms to a portion of our company -- of our customers, and those are the ones that I was talking about in the highly affected industries but so far has not been [a significant portion of our] customer base. We don't anticipate that payment deferrals or adjusted payment terms will have a meaningful impact on revenue or billings. It is why we cast our free cash flow margin guidance flat even though we're increasing our operating margin by 100 basis points. We do feel like there'll be a little bit that will push into early '21. But for the most part, we feel very comfortable in our guide on free cash flow and billings.

當然。我會說，截至目前我們沒有任何客戶無法付款。因此，我們的客戶基礎仍然非常健康。話雖如此，我們確實對一部分客戶提供了一些彈性並延長了付款條件——也就是我所提到那些受影響較嚴重產業中的客戶——但到目前為止，這並不是我們客戶基礎中的[很大一部分]。我們不預期付款遞延或調整付款條件會對營收或帳單（billings）造成實質影響。這也是為什麼即使我們把營業利益率（operating margin）提高 100 個基點，我們仍將自由現金流利潤率（free cash flow margin）的指引維持持平。我們確實覺得會有一小部分會推遲到 2021 年初。但整體而言，我們對自由現金流與帳單的指引感到非常有把握。

Your next question comes from the line of Brad Zelnick with Crédit Suisse.

下一個問題來自 Crédit Suisse 的 Brad Zelnick。

Great. Congrats on the continued leadership as demonstrated by these results. Bill, if I can, can you elaborate on how you're adapting your go-to-market strategy during these crazy times? Clearly, your value prop only becomes more appealing as the entire world pivots to digital. But how have the field priorities changed, if at all, as it relates to new logo versus expansion business?

很好。恭喜你們以這些結果展現持續的領導地位。Bill，如果可以的話，你能否更詳細說明在這些瘋狂時期你們如何調整 go-to-market（市場進入）策略？顯然，隨著全世界轉向數位化，你們的價值主張（value prop）只會更具吸引力。但就新客（new logo）與擴張（expansion）業務而言，前線的優先順序是否有任何改變？

Well, one of the new logos, Brad, that I had mentioned was Merck, and there were quite a few new logos in Q1. But here's the big thing. It might be a little counterintuitive actually. But one of my goals, as I told you in the last earnings call, was to be the trusted innovator for the C-suite and actually to elevate the level of contact that ServiceNow utilized in the marketplace. Right now, C-level executives and CEOs in particular are easier to get to than they ever have been because they're in their home office and they're looking for a good phone call or a good Zoom. And in ServiceNow, they're finding one. So what we're doing is we're aligning the presale especially on the value drivers that are important to a customer in their specific industry, in their specific persona. And on an outside-in basis, we're studying very carefully, especially in the COVID environment, what we can do to help them. We schedule our team to essentially do in a physical world, we have what we called, executive briefing center meetings. Now in a virtual world, we simply have the same executive briefing center meeting, only we can have many more of them because we don't have the wear and tear or the difficulty of getting calendars aligned because people have time on their hands for things that are mission-critical and things that can give them immediate time to value and the priorities that they care about. And as I said, Brad, they care a lot about protecting the revenue they already have. Obviously, everyone wants to grow, but job 1 is protect what it has.

嗯，Brad，我提到過的一個新客是 Merck，而且 Q1 也有相當多的新客。但重點在這裡：這其實可能有點反直覺。不過，我的其中一個目標——正如我在上次財報電話會議中告訴你的——是成為 C-suite 值得信賴的創新者，並且提升 ServiceNow 在市場上所採用的接觸層級。現在，C 級高管，尤其是 CEO，比以往任何時候都更容易接觸到，因為他們在家中辦公室，正在尋找一通好的電話或一次好的 Zoom。而在 ServiceNow，他們找到了。所以我們正在做的是，特別在售前（presale）端，圍繞對客戶在其特定產業、特定角色（persona）中重要的價值驅動因素（value drivers）來對齊。我們也以由外而內（outside-in）的方式，非常仔細地研究——尤其在 COVID 環境下——我們能做些什麼來幫助他們。我們安排團隊去做一件事：在實體世界裡，我們有我們所稱的高階主管簡報中心（executive briefing center）會議。現在在虛擬世界裡，我們只是做同樣的高階主管簡報中心會議，只是我們可以做更多場，因為不再有舟車勞頓，也不再有難以對齊行事曆的問題；人們手上有時間投入在關鍵任務（mission-critical）以及能立即實現價值（time to value）的事情上，也就是他們在意的優先事項。而且如我所說，Brad，他們非常在意保護既有的營收。當然每個人都想成長，但第一要務（job 1）是保護自己已擁有的。

And then this business continuity thing, you can't overstate it. For example, there's very -- one very large consulting company out there with hundreds of thousands of people. And think about something like asset management and how you get the tool set, whether it's a phone or a computer or anything the workforce might need to work from home physically to them, trace and track it and make sure that it's executed well across the value chain. So think about all those enterprise asset management needs now being managed on a workflow basis between a virtual and a physical world. So this platform of platforms is really resonating. So I believe that it's logical for people to be concerned to say, "Wow, you're primarily an enterprise, direct sales go-to-market," but actually, it works even better in digital because the activity set increases and it's just easier to do business with C-level executives now than it ever has been before.

另外，這個業務持續性（business continuity）的事情，你怎麼強調都不為過。舉例來說，外面有一家非常大型的顧問公司，員工數以十萬計。想想像資產管理（asset management）這樣的事情：你如何把工具組——不論是手機、電腦或員工在家工作可能需要的任何東西——實體送到他們手上，並加以追蹤與追溯（trace and track），確保在整個價值鏈（value chain）上都能良好執行。所以想想看，所有這些企業資產管理（enterprise asset management）的需求，現在如何以工作流程（workflow）的方式在虛擬與實體世界之間被管理。因此，這個「平台中的平台」（platform of platforms）確實引起強烈共鳴。所以我認為，人們擔心說「哇，你們主要是企業級、直銷（direct sales）的 go-to-market」是合理的，但事實上在數位環境下它運作得更好，因為活動集合（activity set）增加了，而且現在與 C 級高管做生意比以往任何時候都更容易。

The other thing I would mention to you, and I said it in my opening remarks, is it's all about value, right? The one thing about value that's changed though is the fuse has to be really short. Not dissimilar to 2008, it has to be very, very short. I told you a story about Lowe's where we had them up and running on something with 330,000 employees in 96 hours. We have people installing ITSM Pro in a couple of weeks, and just compare that to the old system of record world and how long it takes to get to value. So we're so relevant. And I want everybody to just think about the old value chains and how they are splitting apart and being reassembled into these end-to-end, mobile-first workflows on the Now Platform and how quickly you can get to value and just how willing people are to engage digitally. And even the order agreements, it's all digital. You don't have to go out there and get things signed anymore. So that's pretty much the net of it.

我還想提到另一點，我在開場致詞中也說過：一切都關乎價值，對吧？不過，價值這件事改變的一點是，引信（fuse）必須非常短。這和 2008 年並沒有太大不同，引信必須非常、非常短。我跟你講過 Lowe's 的故事：我們讓他們在 96 小時內就讓某個方案上線運作，涵蓋 33 萬名員工。我們也有人在幾週內就部署 ITSM Pro；把這和過去「系統紀錄」（system of record）的世界相比，看看要花多久才能實現價值。所以我們非常切題。我希望大家想一想舊的價值鏈如何正在被拆解，並在 Now Platform 上被重新組裝成端到端（end-to-end）、行動優先（mobile-first）的工作流程；你能多快實現價值，以及人們多願意以數位方式互動。甚至連訂單協議（order agreements）也都是數位化的。你不必再出去讓人簽字了。大致就是這樣。

It's all very helpful, Bill. Maybe just quickly for Gina. I think you mentioned slowing down on hiring. How has the hiring plan evolved since the beginning of the year? And have you noticed that it has gotten easier over the last several weeks or a month or so to find talent?

這些都很有幫助，Bill。也許再很快問 Gina 一下。我想你提到放慢招募（hiring）。自年初以來，招募計畫如何演變？而且你是否注意到在過去幾週或一個月左右，尋找人才是否變得更容易？

Yes. I would say that when I talked about slowing hiring, we were talking specifically about G&A now and into the back half. We will continue to aggressively hire [obviously] in sales and in fact through the end of Q1 and even through today have been [according to plan] in our hiring in some of those areas. And so we have really not seen a slowdown to date in our ability to hire and attract really strong talent, which is great. I think what we're trying to do is be really thoughtful about hiring as we go forward especially in (inaudible). We will absolutely continue to hire for the critical work from the critical areas. I want to make sure that we are well positioned to weather the short-term storm here.

是的。我會說，當我談到放緩招募時，我們談的是目前以及下半年特別針對 G&A 的部分。我們將持續在銷售方面積極招募［顯然］，事實上直到第一季末，甚至到今天為止，我們在其中一些領域的招募一直［依照計畫］進行。因此，到目前為止，我們在招募並吸引非常優秀的人才方面，確實還沒有看到放緩，這很棒。我認為我們接下來要做的是，在往前走的招募上保持非常審慎，特別是在（聽不清）方面。我們絕對會持續在關鍵領域為關鍵工作招募。我想確保我們已做好充分準備，能夠挺過眼前的短期風暴。

Brad, I just want to give you and everyone else on the call a little color, right? To build on what Gina is saying, we're hiring 9s and 10s. And just to net it out, this is a brand destination that's super successful and talented people now know about. One example is our Chief AI Officer, Vijay Narayanan. Keep in mind this guy has 15 patents. He ran data science solutions at Microsoft and engineering at Pinterest. We have the ability to attract the very, very best people in the market. And he was getting offers from everybody, and he chose ServiceNow. So we're -- as we bring in engineers, as we bring in talented go-to-market people, we're also making sure that they're 9s and 10s. We're not interested in 8s and below. We'll leave that to the open market to rationalize.

Brad，我只是想給你以及電話會議上的各位一些補充說明，對吧？延續 Gina 的說法，我們招的是 9 分和 10 分的人才。簡單說，這是一個非常成功的品牌目的地，現在有才華的人都知道我們。舉例來說，我們的首席 AI 長 Vijay Narayanan。請記住，這位先生擁有 15 項專利。他曾在 Microsoft 負責資料科學解決方案，也在 Pinterest 負責工程。我們有能力吸引市場上最、最頂尖的人才。他也拿到各家公司的邀約，但他選擇了 ServiceNow。所以我們——在我們引進工程師、引進有才華的 go-to-market 人才時，我們也確保他們是 9 分和 10 分。我們對 8 分及以下不感興趣。那就留給公開市場去合理化吧。

Your next question comes from the line of Sarah Hindlian-Bowler with Macquarie.

下一個問題來自 Macquarie 的 Sarah Hindlian-Bowler。

Bill and Gina, especially for providing us an outlook, I think we all understand it's very challenging given what we're seeing right now, and sharing your process with us was extremely helpful. So thank you for doing that. And I wanted to ask you a few questions. My first one is for you, Bill. We're hearing a lot about some of our companies -- now granted they have far more SMB exposure than you do but really working ahead of time on the renewal side. And I was wondering if ServiceNow is pulling together a renewals team or some kind of prioritized focus on making sure that some of those distressed customers come through even under potential contract extensions? And then I have a follow-up with Gina.

Bill 和 Gina，特別是你們提供了展望，我想我們都理解在目前所見情況下這非常具挑戰性，而你們與我們分享你們的流程也非常有幫助。所以謝謝你們這麼做。我想問幾個問題。第一個是給 Bill 的。我們聽到很多公司——當然他們的 SMB 曝險比你們高得多——在續約端提前做了很多工作。我想知道 ServiceNow 是否正在組建一個續約團隊，或是某種優先聚焦，來確保那些處於困境的客戶即使在可能的合約展延下也能順利續約？然後我還有一個問題要追問 Gina。

Absolutely. Sarah, first of all, thank you very much for the question. We really want everybody to know that this company is all about driving long-term customer loyalty. The sustenance of these customer relationships is everything in the cloud economics sense, but even more, it's everything in the sense of the ServiceNow culture. We have presale, sale, post-sale customer support, our consulting and partner ecosystem aligned in a value chain. We do this by industry. We also segment it by persona. In the 20% of our customer installed base most affected by COVID-19, we have a cross-functional team that also includes legal, finance, presale, sale and post-sale involved in the process. So we do all we can to make our customers successful. We haven't had a single down-sell. We have been flexible on cash where we needed to be, which Gina stated. But we're also looking at things that are win-win in their orientation.

當然。Sarah，首先非常感謝你的提問。我們非常希望讓大家知道，這家公司的一切都圍繞著推動長期的客戶忠誠度。在雲端經濟學的意義上，維繫這些客戶關係至關重要；但更重要的是，在 ServiceNow 的文化中，這同樣是一切。我們把售前、銷售、售後客戶支援、我們的顧問服務以及合作夥伴生態系，沿著一條價值鏈對齊。我們按產業來做，也按角色（persona）來分群。在我們客戶安裝基礎中受 COVID-19 影響最大的 20% 客戶裡，我們有一個跨職能團隊，亦包含法務、財務、售前、銷售與售後共同參與流程。因此，我們竭盡所能讓客戶成功。我們沒有出現任何一次降級銷售（down-sell）。在需要的地方，我們在現金安排上保持彈性，正如 Gina 所說。但我們也在尋找對雙方都有利（win-win）的做法。

So even if COVID were even worse than it is today, we expect that it will get better. But even if it was worse, we find that customers are realizing that the Now Platform is a "keep the lights on" technology in these companies. It is a have to have, and therefore, nobody has disputed whether or not they need to renew. It's just simply a consequence of can we help them get through this very difficult time. So keep that in mind. The loyalty effect is getting even stronger because customers really are relying on the platform even more. And as I look at the root causes of why companies win and lose, customers have to love that product in good times and in bad and be willing to stick with that product because they really believe it's essential to their future. And that has been the case in every engagement, even the ones where customers needed our help the most.

所以即使 COVID 比今天更糟，我們也預期它會好轉。但即便更糟，我們發現客戶正在意識到 Now Platform 在這些公司裡是一種「維持營運」的技術。它是必需品，因此，沒有人質疑他們是否需要續約。這只是我們能否幫助他們度過這段非常艱難時期的問題。所以請記住這點。忠誠度效應正在變得更強，因為客戶確實更加依賴這個平台。而當我回頭看公司勝敗的根本原因時，客戶必須在景氣好與不好時都喜愛那個產品，並願意持續使用，因為他們真的相信它對他們的未來至關重要。而在每一次互動中都是如此，即使是在那些最需要我們協助的客戶身上也是一樣。

Awesome, Bill. That was extremely helpful. I appreciate it. Very thorough. And Gina, I just wanted to follow up with a fairly simple question but an interesting one. Especially given the depth of work you've done on the guidance, the fiscal year outlook, the way you've cut numbers was better than I was fearing and definitely a relief to me. And you walked through how you were building the model. I'm wondering if there is some maybe primary one particular driver. I know being the customer success platform is relevant. But are you potentially also seeing or expecting to see a continued boost from enabling IT operations in a very distributed perimeter and a work-from-home environment? And is that the primary driver of the revenue build? Or is it as mathematical as you've outlined?

太棒了，Bill。這非常有幫助。我很感謝。非常周全。Gina，我想用一個相對簡單但很有意思的問題追問。特別是考量你在指引、財政年度展望上做了很深入的工作，你下修數字的方式比我原本擔心的要好，對我來說也確實鬆了一口氣。你也說明了你如何建立模型。我想知道是否有某個主要、特定的驅動因素。我知道作為客戶成功平台是相關的。但你們是否也可能正在看到或預期會持續受惠於：在非常分散的邊界與居家辦公環境下，協助啟用 IT 營運？這是否是營收建構的主要驅動因素？還是如你所概述的那樣偏向數學模型推導？

Yes. Thanks, Sarah, for the question. I think that as IT becomes the business now, IT ops is going to be super important. But that's not the only place where we continue to see strength. And so we did a very bottoms-up, deep dive analysis and completed extensive scenario planning for our pipeline coverage, our conversion, our renewal rates, et cetera. And so it's really about whether or not -- from our original guide, we're just thinking that some of our customers in these highly impacted industries, we believe our renewal rates will stay strong. But as we think about net new and digital priorities, some of them may be delayed. And so that's really where we're focused on when we brought down the guide. We absolutely believe that we'll be able to maintain our strong renewal rates. We believe that digital transformation will remain a big priority, as Bill has talked about. And so we feel very confident right now with our current guidance.

是的。Sarah，謝謝你的問題。我認為，當 IT 現在成為業務本身時，IT ops 會非常重要。但這不是我們持續看到強勁動能的唯一領域。因此我們做了非常自下而上（bottoms-up）的深入分析，並針對我們的管線覆蓋（pipeline coverage）、轉換率（conversion）、續約率等完成了廣泛的情境規劃。所以這真的取決於——相較於我們原先的指引，我們認為在這些受影響嚴重的產業中，有些客戶的續約率仍會保持強勁。但當我們思考淨新增（net new）與數位優先事項時，其中一些可能會延後。因此，這就是我們下修指引時聚焦的地方。我們絕對相信我們能維持強勁的續約率。我們相信數位轉型仍將是重大優先事項，正如 Bill 所談到的。因此，以目前的指引來看，我們現在非常有信心。

And Sarah, one thing and I think everybody will be interested to know this. It's kind of your question but it's probably on everyone's mind. Why is it that we have such confidence? It's really because the customer is telling us they have confidence in us. So take the Department of Home Affairs in Australia. What they are doing is basically integrating the outdated, underperforming, old solutions into an integrated platform. And that is helping them simplify their environment, drop down cost and improve productivity. The state of California, as an example, is a perfect one because they went for a cloud-first initiative. And that's all about getting stakeholders, vendors and partner agencies to cooperate. And that's why they chose ServiceNow customer service management. So what you're seeing here is a recognition that the integrated nature of the platform, what the platform can do and how it's so simple now to plug the processes into something that's modern, cloud and on the move versus the things that they're bogged down by in the old 20th century tech. So we're feeling good.

Sarah，還有一點，我想大家都會有興趣知道。這有點像你的問題，但可能也是每個人心中的疑問。我們為什麼這麼有信心？真正的原因是客戶告訴我們，他們對我們有信心。以澳洲的內政部（Department of Home Affairs）為例，他們基本上是在把過時、效能不佳的舊解決方案整合到一個整合式平台中。這幫助他們簡化環境、降低成本並提升生產力。再以加州政府為例，這是個完美的例子，因為他們推動 cloud-first 計畫。這一切都在於讓利害關係人、供應商與合作夥伴機構協同合作。這也是他們選擇 ServiceNow 客戶服務管理的原因。所以你看到的是：大家認知到平台的整合性、平台能做什麼，以及現在把流程接到一個現代化、雲端、可持續演進的系統上是多麼簡單，相較之下，他們過去被 20 世紀的舊技術所拖累。因此我們感覺很好。

Your next question comes from the line of Samad Samana with Jefferies.

下一個問題來自 Jefferies 的 Samad Samana。

Congrats on a great quarter. Maybe the first question -- and I know you guys have touched on it a little bit, but as you think about customers with everybody working remotely -- I know you've talked about the sales motion. But how about in terms of implementations, are those cycles moving at the same speed as before? Are they moving more quickly? And maybe what are the puts and takes around the ability to do a full implementation from a remote perspective?

恭喜你們交出一個很棒的季度。也許第一個問題——我知道你們已經稍微提到一些——但當你們思考在大家都遠端工作的情況下的客戶時——我知道你們談過銷售推進方式（sales motion）。那在導入（implementations）方面呢？那些週期是否仍以和以前相同的速度推進？是否更快？以及從遠端角度來看，完成完整導入的能力有哪些利弊權衡（puts and takes）？

Yes. That's actually a good question, Samad. I know initially, probably people had concerns as to how viable that was. But the reality is it is very viable and that's, in fact, what's happening. So not only can ServiceNow virtually implement the system but so too can the ServiceNow ecosystem. And initially, there may have been some training that was required with certain partners on how to do that. But our substantial partners absolutely know how to do that, and that is the manner in which ServiceNow is being implemented. It's done virtually by ServiceNow as well as our ecosystem partners, not an issue whatsoever.

是的。Samad，這其實是個好問題。我知道一開始，大家可能會擔心那樣做的可行性。但現實是，它非常可行，而且事實上也正在發生。所以不僅 ServiceNow 可以以虛擬方式導入系統，ServiceNow 的生態系也同樣可以。一開始，可能需要對某些合作夥伴進行一些如何執行的訓練。但我們的重要合作夥伴絕對知道怎麼做，而這也正是 ServiceNow 目前的導入方式。由 ServiceNow 以及我們的生態系合作夥伴以虛擬方式完成，完全不是問題。

That's helpful. And then maybe one more on just the go-to-market. With the T&E being down, with the events moving virtual, coming out of this -- and it's tough to answer, but it seems like maybe the customer acquisition cost may just structurally come down over time. How do you think about that? As those of us that are thinking beyond this crisis eventually abating, do you think that it will just allow customers to be acquired more efficiently just going forward? Thanks again for taking my questions and I wish everybody well.

這很有幫助。接著也許再問一個關於 go-to-market 的問題。隨著差旅與費用（T&E）下降、活動轉為線上，從這次情況走出來之後——這很難回答，但看起來客戶取得成本可能會在結構上隨時間下降。你怎麼看？對於我們這些在思考這場危機最終緩解之後的人，你是否認為未來將能更有效率地取得客戶？再次感謝你回答我的問題，也祝大家一切順利。

Well, Samad, I wish you well, too. And I'd tell you're asking some great questions here because who would have thought that ITSM Pro could have been implemented by our partners in 21 days or less remotely, pretty cool. And then who would have thought we would have canceled our Knowledge event in Orlando, which has been the physical event of the year, the epicenter of the ServiceNow story, where we expected to have 25,000 people physically in Orlando. We already have 50,000 registered and signed up for our event, our Knowledge event in a virtual environment. And yesterday, our Head of Marketing and Communications who is leading this event and doing a great job, I might add, told me that his anticipated head count now for the event is over 100,000. So you're on a good point here. We might very well learn that companies that are digitally transformed and attracting others who want to be digitally transformed might actually get some brand recognition power from this and actually a lower cost to sale because of the bandwagon effect. And the second part is our motion on a virtual basis of coordinating all of the pre- and post-sale layers I discussed is becoming far more refined than it was in the prior highly physical, high-touch world. So we might still be able to deliver high value but do so at a higher volume, in which case you can lower cost of sale, get more deals and more flow through to the bottom line. I wouldn't rule it out. I'll put it to you that way.

嗯，Samad，我也祝你一切順利。我得說你在這裡問的問題真的很棒，因為誰會想到 ITSM Pro 竟然可以由我們的合作夥伴在 21 天或更短時間內、以遠端方式完成導入，這很酷。又有誰會想到我們會取消在奧蘭多舉辦的 Knowledge 大會——那一直是年度最重要的實體活動，是 ServiceNow 故事的核心，我們原本預期會有 25,000 人親自到奧蘭多。但現在在虛擬環境中，我們的 Knowledge 活動已經有 50,000 人註冊報名。昨天，負責主導這場活動、而且我得補充他做得非常出色的行銷與傳播主管告訴我，他現在預估這場活動的參與人數將超過 100,000。所以你提到的點很對。我們很可能會學到：那些已完成數位轉型、並吸引其他也想數位轉型的公司，可能會因此獲得一些品牌辨識度的加乘，並因為跟風效應而降低銷售成本。第二點是，我先前提到的、以虛擬方式協調售前與售後各層面的運作模式，正變得比過去高度實體、重度接觸的世界更為精緻。因此我們或許仍能交付高價值，但同時以更高的量來交付；在那種情況下，你就能降低銷售成本、拿到更多案子，並讓更多成果流向最終盈餘。我不會排除這種可能。我就這麼跟你說。

Your next question comes from the line of Kirk Materne with Evercore ISI.

下一個問題來自 Evercore ISI 的 Kirk Materne。

Yes. And I'll add my congrats on the quarter and glad everyone is doing well. I guess Bill, just to start with you. Obviously, you all are standing out in what is a very difficult economic period. I mean the answer seems somewhat self -- or somewhat obvious, but when you're talking to CFOs, I think when we go out and hear about things like CapEx spend, obviously, budgets are under a lot more pressure. People are really focused on their bottom line maybe more so than ever and nervous about their own outcomes. So are you just getting the sense that you're consolidating wallet share within the IT organization or the organization in general? Are you tapping in the new line of business spend that perhaps you weren't before this happened? Because I think what stands out is not only do you have a good quarter, but obviously, your business seems to be doing really well through a month, and I think that will be pretty unique when we hear from everyone else. So can you just talk about sort of how you all are maybe just consolidating spend amongst your customers at this point in time?

是的。我也要恭喜你們這一季的表現，並很高興大家都安好。Bill，我想先從你開始。很明顯，在一個非常艱難的經濟時期，你們的表現特別突出。我的意思是，答案看起來有點——或多或少很明顯——但當你和 CFO 們交談時，我想當我們出去聽到像是資本支出（CapEx）之類的事情時，很顯然預算正承受更大壓力。大家比以往任何時候都更專注於最終盈餘，也對自身的結果感到緊張。所以你是否感覺到，你們正在 IT 組織內部、或更廣泛的整個組織中，整合錢包份額（wallet share）？你們是否正在切入一些新的業務線支出，而這在事件發生前你們可能還沒有切入？因為我覺得最突出的不只是你們有一個不錯的季度，而且很明顯你們的業務在一個月的時間裡也表現得非常好；我想當我們聽到其他公司時，這會相當獨特。你能否談談，在目前這個時間點，你們是如何在客戶之間整合支出、或讓客戶把支出更集中到你們這邊？

Yes. Sure. Well, Kirk, I want to thank you very much for the question. It's a really, really smart question because I start every meeting off with the C-level executives or heads of government that we're speaking with regularly daily, in fact, on this concept of behind every great experience is a great workflow. And the Now Platform is the platform of platforms. You heard me say that when I first came into the company, but digital workflows are becoming a substantially important asset within every company. And what we see happening here is we see that the great experiences that every CEO wants for their employees and customers includes mobile, web and conversational tools. We see clearly that the IT workflow is also essential to enable employee workflow, customer workflow. And then anything they want to uniquely customize, they can use the app engine on our platform to do it. And having this one platform with one data model and one architecture, which, by the way, no debt because of how well ServiceNow engineering has been handled for the last 15 years, you're able to really streamline, eliminate a lot of waste in these companies. And what I see happening is companies are telling me, why would I want to double down on a system of record when I can take the data from the system of record and put it into a new workflow, where, by the way, with the Orlando Now Platform, they can apply machine learning and AI and get the real analytics that they need to drive employee experiences and customer experiences.

是的。當然。Kirk，非常感謝你的提問。這真的是一個非常、非常聰明的問題，因為我每天、事實上是每天都在與我們定期交流的 C-level 高階主管或政府首長的每一場會議一開始，就先談這個概念：每一個卓越體驗的背後，都有一個卓越的工作流程。而 Now Platform 是平台中的平台。你們在我剛加入公司時就聽我說過，但數位工作流程正在成為每家公司極其重要的資產。我們看到的情況是，每位 CEO 希望為員工與客戶打造的卓越體驗，包含行動端、網頁端以及對話式工具。我們也清楚看到，IT 工作流程同樣是支撐員工工作流程、客戶工作流程的關鍵。然後，任何他們想要做的獨特客製化，都可以使用我們平台上的 app engine 來完成。擁有這樣一個平台、單一資料模型與單一架構——順帶一提，因為 ServiceNow 在過去 15 年的工程管理做得非常好，所以沒有技術債——你就能真正地精簡流程，為這些公司消除大量浪費。我看到正在發生的是，公司告訴我：既然我可以把系統紀錄（system of record）中的資料取出，放進一個新的工作流程裡，那我為什麼還要在系統紀錄上加倍投入？而且，透過 Orlando Now Platform，他們可以套用機器學習與 AI，取得他們所需要的真正分析能力，來推動員工體驗與客戶體驗。

So it's actually such a great return on investment. I haven't seen one scenario yet where I can't go to a C-level executive and say, "You wanted this from me today. I give you 5x or better the ACV value this year." And then it's kind of like, "Well, why wouldn't you do it?" One customer, for example, in the software asset management scenario will also do hardware asset management, as you know. That "I know that I have all the outdated solutions, I'm underutilizing, I have shelf wear," and so forth. And I said, "Well, we'll analyze it for you. It's something we do. We haven't found a business case yet where we can't take 20% of the cost out." And the guy goes, "Really? Then why don't we have it?" I said, "Look, if anyone's got any problem with it, I'll just split the profits with you." "No, no, no. I'll order it from you." So that's the kind of environment we're in. If you want to talk cost, we can take it out. If you want to talk experience, we're the workflow behind it. If you want to talk executional excellence in a virtual world, this is the platform that cuts across all the systems of record and enables all of the mobile, web and conversational experiences to help the employees do their job or inspire the customers to be happy and loyal. So I really think it's relevancy, it's quick return on investment, and it's making things better for everybody. And I really truly believe our purpose of helping people and really making work, work better for people is truly resonating at this critical time in the world's history.

所以這其實帶來非常高的投資報酬率。我到目前為止還沒看過任何一種情境，讓我無法去對 C-level 高階主管說：「你今天想從我這裡得到這個。我今年給你 5 倍或更高於 ACV 價值的回報。」然後就有點像是：「那為什麼不做？」例如有一位客戶，在軟體資產管理的情境下，也會做硬體資產管理，你也知道。他說：「我知道我有很多過時的解決方案，我使用率不足，我有閒置浪費（shelf wear），」等等。我說：「好，我們會幫你分析。這是我們會做的事。我們還沒找到任何一個商業案例是我們無法把成本砍掉 20% 的。」那個人就說：「真的嗎？那我們為什麼還沒有？」我說：「你看，如果有人對這件事有任何問題，我就跟你對半分利潤。」他說：「不不不。我會跟你下單。」所以我們現在就是在這樣的環境裡。如果你想談成本，我們可以把它拿掉。如果你想談體驗，我們就是背後的工作流程。如果你想談在虛擬世界中的執行卓越，這就是那個跨越所有系統紀錄的平台，並啟用所有行動端、網頁端與對話式體驗，幫助員工把工作做好，或讓客戶感到滿意並保持忠誠。所以我真的認為，這是相關性、快速的投資報酬，以及讓每個人都變得更好。我也真心相信，我們「幫助人們、讓工作對人更好用」的使命，在世界歷史這個關鍵時刻確實正在引起共鳴。

Okay. That's really helpful. And just one really quick one for Gina. Just Gina, in your cash flow guidance for the full year, have you made any sort of assumptions around sort of invoicing duration changing and all? That sounded like outside that 20% of the customer base, you haven't seen any real need to think that way. But I was just trying to get a sense on sort of how you're modeling on that front.

好的。這真的很有幫助。最後再很快問 Gina 一個問題。Gina，在你們全年現金流指引中，你是否對開立發票期間（invoicing duration）變動之類的情況做了任何假設？聽起來除了那 20% 的客戶群之外，你們並沒有看到需要往那個方向思考的實際需求。但我只是想了解一下，你們在這方面是如何建模的。

Yes. As I said earlier, the real issue that we've seen it in hasn't been tremendous given that only 20% of our business is with customers in the heavily impacted industries. We are not seeing any real issue with respect to invoicing duration or timing.

是的。如我先前所說，我們目前看到的真正問題其實並不嚴重，因為我們的業務中只有 20% 來自受衝擊最嚴重的產業客戶。我們在開立發票的週期或時間點方面，沒有看到任何實質問題。

Your next question comes from the line of Jennifer Lowe with UBS.

下一個問題來自 UBS 的 Jennifer Lowe。

Maybe just to quickly follow up on the last question, some of the earlier ones. Gina, you've mentioned a couple of times that 20% is industries most directly impacted by the current crisis, 80% is less impacted. But as we think about sort of the assumptions feeding into the guidance, is the assumption that, that impact remains relatively contained in that 20% with relatively little sort of downstream effects on the other 80% of large corporations? Or are you assuming that there's some further disruption? I'm just trying to sort of quantify. Or to the extent that it's possible, just think about what happens if things expand beyond the industries that are currently impacted directly.

也許只是快速追問一下上一題，以及前面幾題。Gina，你提到過幾次，我們的 20% 是目前危機中受影響最直接的產業，80% 受影響較小。但當我們思考納入財測指引的各項假設時，假設是否是影響仍相對侷限在那 20%，對其餘 80% 的大型企業相對沒有太多下游連鎖效應？還是你們假設會有進一步的干擾？我只是想量化一下。或者在可能的範圍內，想想如果情況擴大到目前尚未直接受影響的產業，會發生什麼事。

Sure. Thanks for the question. So basically, not only is only 20% of our business in the heavily impacted industry, 80% of our business is Fortune 500. And so we are not as exposed to smaller SMB type of business. And so our guide does reflect some lower expectations from what we normally would see on our growth, on our net new ACV. The bulk of that, we believe, will come from companies that are more heavily impacted. But some, right -- some -- as some of these companies still may delay some of their spending and they look forward, we've definitely incorporated some of that as well.

當然。謝謝你的問題。基本上，不僅我們的業務只有 20% 在受衝擊最嚴重的產業，我們的業務中有 80% 來自《財富》500 大企業。因此，我們不像那些較小型的 SMB 類型企業那樣曝險。也因此，我們的指引確實反映了相較於平常，我們對成長、對淨新增 ACV 的預期較低。我們認為其中大部分將來自受影響較嚴重的公司。但也有一部分——對，確實有一部分——因為有些公司在展望未來時仍可能延後部分支出，我們也已將這些因素納入考量。

Great. And earlier, there was the mention that the guidance assumes things continue to stay difficult for a couple more quarters. But also April, there was some positive momentum on the pipeline front and things like that, and we're seeing press about industry starting to reopen maybe a little earlier than have been feared. So if we think about the sensitivity potentially on the more positive side, what are sort of the KPIs that you're looking at in your own business to get that forward look on how things are trending? And if we do start to see things open up a bit sooner, does that get us back to sort of what the guidance might have been previously? Or is there going to be just business that you don't think comes back? How do we frame out what the upside could look like?

很好。另外先前提到，指引假設未來幾季仍會維持困難。但同時，4 月在管線方面有一些正向動能之類的訊號，而且我們也看到媒體報導，部分產業可能比原先擔心的更早開始重啟。所以如果我們從較正面的敏感度來思考，你們在自身業務中會觀察哪些 KPI，來前瞻判斷趨勢如何？如果我們確實看到更早一些的重啟，是否會讓我們回到先前可能給出的指引水準？還是會有一些業務你們認為不會回來？我們該如何理解上行空間可能長什麼樣子？

No. I think that there's definitely potential upside if the economy opens up more broadly sooner, right? I think that as we talked about, we are very well positioned once the economy opens up. Digital transformation is more imperative than ever, and our customers are really engaging with us like never before. And so there certainly would be upside in my eyes if the market opened up sooner. As you know, we are very Q4 weighted. And we're also, within each quarter, very last month weighted. And so as we look at the actual conversion of the pipe, we talked about pipeline being stronger than ever, our current conversion rates are higher than normal. And so we are very well positioned if the economy opens up more broadly to potentially be in a position to have more opportunity versus the current guide. Does that help?

不。我認為如果經濟更早、更廣泛地重啟，確實存在上行空間，對吧？如我們所談到的，一旦經濟重啟，我們的定位非常有利。數位轉型比以往任何時候都更為迫切，而我們的客戶與我們的互動也前所未有地積極。因此在我看來，如果市場更早開放，確實會有上行空間。如你所知，我們的業績非常偏重 Q4；而且在每一季內，也非常偏重最後一個月。因此當我們觀察管線的實際轉換時——我們提到管線比以往任何時候都更強——目前的轉換率也高於正常水準。所以如果經濟更廣泛地重啟，我們的確處於非常有利的位置，可能相較於目前的指引擁有更多機會。這樣有回答到你的問題嗎？

Yes. That's great.

有。非常好。

Your next question comes from the line of Raimo Lenschow with Barclays.

下一個問題來自 Barclays 的 Raimo Lenschow。

A quick question, Bill, on digital transformation. So that can mean a lot of things for a lot of people but also for ServiceNow. Can you talk a little bit about how you're kind of tilting your sales approach here in terms of different subgroups especially when times are a little bit tougher, people look for quicker ROIs. Like how have you changed the sales approach over the last few weeks to kind of still do digital transformation but take advantage of maybe faster projects and faster time to money? And then Gina, quickly on gross margins this quarter, they were at record level for subscription. Was there anything special in there? Or what drove that?

一個簡短問題，Bill，關於數位轉型。這對很多人、很多公司（也包括 ServiceNow）而言可以代表很多不同的事情。你能否談談你們在這段期間如何調整銷售方式、在不同子領域上如何傾斜？尤其在環境較艱難時，人們會尋求更快的投資報酬率（ROI）。過去幾週你們如何改變銷售方式，既能推動數位轉型，又能把握可能更快的專案、以及更快的變現時間？另外 Gina，快速問一下本季的毛利率，訂閱毛利率創下歷史新高。裡面有什麼特別因素嗎？或是是什麼驅動的？

Well, Raimo, I'll start us off. As you'll remember from 2008, the world was feeling very good in September of 2008 about things until the crisis hit on the financial level. That was pretty substantial. And that was when cloud solutions that offered OpEx versus CapEx and fast time to value really became the ultimate move for the enterprise because the power moved across the management team. The CEO basically said, do what you have to do to get the job done, do it on your budget. And CapEx slowed and cloud took over as the pervasive computing theme of the 21st century at that moment. In our case, we're already a pure-play born in the cloud market leader. So what do you do? We essentially wrote a playbook with 5 main plays that do what you said, take our platform and our market-leading solutions and shape them in a way that gives customers what they need fast. So digitally scaling your operations quickly and efficiently, as an example, combines our CSM, our ITSM Pro, and our mobile capabilities and our ITOM capabilities in one out of the box, pre-packaged solution that's ready to run. If you want to reduce your technology debt, we have our SAM, software asset management, Cloud Insights and application management tool out of the box, ready to run. If you want to ensure resilience for your critical business operations, we have governance risk compliance, IT operations and security operations out of the box, ready to run.

Raimo，我先來回答。你會記得 2008 年的情況，直到 2008 年 9 月金融層面的危機爆發之前，全球對情勢都還感覺良好。那次衝擊相當巨大。也正是在那個時刻，提供以營運支出（OpEx）取代資本支出（CapEx）、並能快速實現價值的雲端解決方案，真正成為企業的終極選擇，因為決策權在管理團隊之間移動。CEO 基本上會說：做你必須做的事把工作完成，在你的預算內完成。於是 CapEx 放緩，而雲端在那一刻成為 21 世紀無所不在的運算主題。在我們的情況下，我們本來就是純雲端（pure-play）、生於雲端的市場領導者。那要怎麼做？我們基本上寫了一本作戰手冊，包含 5 個主要策略，正如你所說，把我們的平台與市場領先的解決方案，以能讓客戶快速取得所需的方式加以塑形。舉例來說，快速且有效率地以數位方式擴展營運，會把我們的 CSM、ITSM Pro、行動能力以及 ITOM 能力整合成一套開箱即用、預先封裝、可立即運行的解決方案。如果你想降低技術負債，我們有 SAM（軟體資產管理）、Cloud Insights 與應用程式管理工具，都是開箱即用、可立即運行。如果你想確保關鍵業務營運的韌性，我們有治理、風險與合規（GRC）、IT 營運與資安營運，都是開箱即用、可立即運行。

And we do this for the employees. We also do this when you're building any workflow. So for the employees, you want the right digital experience from anywhere. You listen to any CEO on a business council call and that's what they want, "Give me the right digital experience for my people anywhere." So we have the human resource service delivery pro ready to go, out of the box. It's all mobile and it's ready to run. And of course, I talked earlier in my remarks about asset management. You have to get the assets to the people where they're physically located, and you have to track and trace this stuff as well, again out of the box, ready to go. And finally, on creating new workflows fast when you need the most, the app engine is now a soaring component of the ServiceNow platform. And I think we really kicked off a new awareness for that with our COVID-19 apps. People like, "Whoa, I can do my own app? And I can do it at mass scale with that kind of speed? Are you kidding?" We built them in 3 days. I had one CEO who was fascinating. He said, "My goodness. I was trying to do an employee rewards program because I want to do -- I want to get a great score on Glassdoor. And on ServiceNow, I had a business analyst do it in 3 days." So everything we do is superfast, out of the box, ready to go, and we align the whole value chain within our company to provide that to customers in a virtual world.

而且我們也為員工做到這些。我們在你建立任何工作流程時也同樣如此。就員工而言，你希望在任何地方都能有正確的數位體驗。你聽任何 CEO 在商業委員會電話會議上講，這就是他們想要的：「讓我的人無論在哪裡，都能有正確的數位體驗。」因此我們有人力資源服務交付（HRSD）Pro，開箱即用、隨時可用；全都是行動化的，且可立即運行。當然，我先前在談話中也提到資產管理。你必須把資產送到員工實際所在的位置，並且也必須追蹤與追溯這些資產，同樣是開箱即用、隨時可用。最後，當你最需要時要快速建立新的工作流程，App Engine 現在已成為 ServiceNow 平台中快速成長的組件。我認為我們透過 COVID-19 應用程式，確實啟動了市場對此的新認知。人們會說：「哇，我可以自己做應用程式？而且可以用那種速度、大規模地做？你在開玩笑嗎？」我們在 3 天內就把它們做出來。我遇到一位 CEO 很有意思，他說：「天啊，我一直想做一個員工獎勵計畫，因為我想——我想在 Glassdoor 上拿到很高的評分。而在 ServiceNow 上，我讓一位商業分析師 3 天就做出來了。」所以我們做的每件事都非常快速、開箱即用、隨時可用，而且我們也在公司內部把整個價值鏈對齊，以便在虛擬世界中把這些交付給客戶。

And on your question with gross margins, we did see higher gross margins in the quarter of about 87%. That was really driven by a greater mix of self-hosted revenue during the quarter. We expect, in our guidance for the full year, that will be more normalized at 86%.

至於你問的毛利率，我們確實看到本季毛利率較高，約為 87%。這主要是因為本季自託管（self-hosted）營收的組合占比更高所致。我們預期在全年指引中，毛利率會較為正常化，約為 86%。

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

下一個問題來自 Wells Fargo 的 Phil Winslow。

Congrats on a great quarter. And above all, glad to hear that all of you are healthy and I hope the same for your families and your team. Bill, a question for you first. Obviously, as you mentioned, you've seen lots of downturns like this in the past over the course of your career. And frankly, you've actually sold a lot of different software products, HR, financials, CRM, obviously now ITOps and ITSM. When you talk to executives, how do you think the focus sort of within these segments has changed and priorities versus maybe past downturns? And then I just have one follow-up for you and Gina.

恭喜你們交出一個很棒的季度成績。最重要的是，很高興聽到你們大家都很健康，也希望你們的家人和團隊同樣平安。Bill，我先問你一個問題。顯然，如你所提到的，在你的職涯中你過去也見過很多像這樣的景氣下行。坦白說，你其實也賣過很多不同的軟體產品：人資、財務、CRM，當然現在還有 ITOps 和 ITSM。當你和企業高階主管交流時，你認為在這些領域內的關注焦點與優先順序，相較於過去的景氣下行，有哪些改變？另外我還有一個追問要問你和 Gina。

So I think -- first of all, thank you for your question, and safety and wellness to your family. Please give everybody my best, Phil. Executives today are very keen on digital transformation. You can't go to any meeting where a CEO among CEOs isn't in some way trying to digitize their company and trying to make sure that digital transformation is at the top of their to-do list because they know if they're not digitally transformed and their competitors are, they're going to get wiped out. So this is where the action is. We're in the sweet spot, and we don't have to sort of explain that. Now ServiceNow is hitting the main stage with the biggest companies in tech, and we have a very prized position because the problem with systems of record and the technologies that have passed is they do one thing well in a specific domain. It's not that that's unimportant, but those investments have been made. So the CEOs that I talked to want us to help make those investments work better. And that's where the platform of platforms comes in because we're so well positioned to take all the investments they've already made and enable them to do what they want done, which is to create workflows that inspire their people and provide outstanding service to their customers.

我想——首先，謝謝你的提問，也祝你家人平安健康。Phil，請代我向大家致意。如今的高階主管非常重視數位轉型。你不可能參加任何一場會議而不聽到 CEO 們以某種方式在推動公司數位化，並確保數位轉型位居待辦清單的最上方，因為他們知道，如果自己沒有完成數位轉型而競爭對手做到了，他們就會被淘汰。所以，行動就在這裡。我們正處於甜蜜點，甚至不需要特別去解釋。現在 ServiceNow 正與科技業最大型的公司同台，我們擁有非常珍貴的位置；因為傳統的系統（systems of record）以及過去的技術的問題在於，它們往往只在特定領域把某一件事做得很好。這並非不重要，但那些投資已經做了。因此，我所接觸的 CEO 希望我們協助讓那些既有投資發揮更好的效益。這就是「平台中的平台」發揮作用之處，因為我們非常適合把他們已經做過的所有投資整合起來，讓他們能完成想做的事——也就是打造能激勵員工的工作流程，並為客戶提供卓越的服務。

And Phil, one of the big learnings in CRM as an example, the engagement layer has been well penetrated. We all understand SFA, we all understand marketing, we all understand upsell, cross-sell engagement. But what hasn't been done so well is mid-office operations, how does a health care provider take care of 50 million claims and make sure things are done well for each and every constituent. Or it could be making sure on field service level, for example, deep analytics and machine learning is applied to understand how things can be corrected remotely. But when you do have to manage an incident, it's done with the right person, the right tool set, the right training with the right preparation so when they do activate a resolution process, the productivity curve goes way up, the customer satisfaction and loyalty effect hits. Now you're also seeing virtual agent on the platform where we can handle 50 million plus consumers at any one given time on the Internet. So it's really evolved, and ServiceNow is leading in digital transformation. And workflow is hitting mainstream awareness, which is a new curve for CEOs, and they like it.

Phil，以 CRM 為例，其中一個重要的學習是：互動層（engagement layer）已經被高度滲透。我們都理解 SFA，我們都理解行銷，我們都理解加購、交叉銷售的互動。但做得不夠好的，是中台營運：例如一家醫療保健提供者要如何處理 5,000 萬筆理賠，並確保每一位利害關係人都能被妥善服務。或者也可能是在現場服務層面，舉例來說，運用深度分析與機器學習來理解如何遠端修正問題。但當你確實必須管理一個事件（incident）時，要用對的人、對的工具組合、對的訓練與對的準備來處理；如此一來，當他們啟動解決流程時，生產力曲線就會大幅上升，客戶滿意度與忠誠度的效果也會顯現。現在你也看到平台上的虛擬代理（virtual agent），我們可以在任何特定時間於網際網路上同時服務 5,000 萬以上的消費者。所以它確實已經演進，而 ServiceNow 正引領數位轉型。工作流程（workflow）正在進入主流認知，這對 CEO 來說是一條新的曲線，而他們喜歡這一點。

Great. That was very helpful. And then when you think about the sales and marketing line, obviously, we saw a pretty significant jump in head count this quarter. One of the things that you've talked about is needing more distribution for a broadening product set. So I guess a jump-off for Bill and Gina, how are you thinking about just head count there in that line going forward as you balance sort of the long-term growth potential but also maybe near-term productivity?

很好。這非常有幫助。接著談到銷售與行銷費用線（sales and marketing line），顯然我們看到本季人頭數有相當顯著的增加。你們曾談到，隨著產品組合擴大，需要更廣的通路與覆蓋。因此我想請 Bill 和 Gina 說說，當你們在兼顧長期成長潛力與可能的短期生產力之間取得平衡時，未來對這條線的人力規模會如何思考？

Yes. Maybe what I could do is just start off and then I'll let Gina pick it up. So here's the deal. We have the platform of platforms. You know we are doing fantastic in ITSM. There's no question about all the solutions in that portfolio. Employee is taking off like a rocket and continues to grow. Incidentally, we're very supportive of the systems of record out there, and that's also helpful to the customer because we hide all the complexity and make the user experience great. On CSM, as I mentioned to you, we can handle the engagement layer, the mid-office or the field service layer, like no one in the market. But if there's someone already entrenched in a certain account, we have no quarrel with that. We just make everything that they do work better. And then there's, of course, the app engine. What I see as our priority is to make sure we align the value chain by industry and persona in every geography and we go to market with tremendous consistency and meticulous attention to detail on the presale, sale, post-sale customer support, services and ecosystem, and that motion is completely aligned. And now I think the virtual environment is the best way to do it at mass scale, quite frankly. I think we all learned that in this crisis.

是的。我或許可以先開個頭，然後再請 Gina 補充。事情是這樣：我們有「平台中的平台」。你知道我們在 ITSM 做得非常出色，這個產品組合裡的所有解決方案毫無疑問都很強。Employee（員工相關）正像火箭一樣起飛並持續成長。順帶一提，我們也非常支持市面上的 systems of record，這對客戶也很有幫助，因為我們把所有複雜性都隱藏起來，讓使用者體驗變得很棒。在 CSM 方面，如我先前提到的，我們能處理互動層、中台或現場服務層，市場上幾乎無人能及。但如果某個帳戶裡已經有人深耕，我們也不會與之爭執；我們只是讓他們所做的一切運作得更好。然後當然還有 app engine。就我所見，我們的優先事項是：確保在每個地理區域，依產業與角色（persona）對齊價值鏈，並以高度一致性與一絲不苟的細節來推進上市策略（go-to-market），涵蓋售前、銷售、售後客戶支援、服務與生態系，且這套動作完全對齊。坦白說，我現在認為虛擬環境是以大規模方式做到這一點的最佳途徑。我想我們都在這次危機中學到了這點。

Now in the past, we would invent a new product or a new line and then have to have a specialist sales force to support it. I think more and more, we're going to be able to do that with our core sales professionals because we're finding a new level of expertise in preshaping these things, in training on these things and aligning the value chain. So over time, I think we'll get more done with less as opposed to every time we want more, we have to add more. And that's the mentality we're putting into this. That's why we're only hiring 10s, maybe 9s that have high potential. Gina?

過去，我們會發明一個新產品或新產品線，然後必須配置一支專門的銷售團隊來支援。我認為未來愈來愈多時候，我們可以用核心銷售人員來做到，因為我們發現他們在前期塑造（preshaping）、相關訓練以及價值鏈對齊方面，正在形成新的專業水準。因此，隨著時間推進，我認為我們會用更少的人做更多的事，而不是每次想要更多就必須再加更多人。這就是我們正在灌輸的心態。這也是為什麼我們只招募 10 分、也許 9 分、但具有高潛力的人才。Gina？

Thanks, Bill. Yes. I would just say that you're right. We had strong growth in our sales and marketing head count in Q1. It was the strongest sales hire in quarter ever. And we continue to invest aggressively in our long-term growth in both sales and marketing as well as R&D. I would also say that we've also seen strong productivity, which tells us we're getting good yield on the hiring investment made and affords us the ability to maintain these aggressive targets. So we feel good. We will continue to invest here and continue to drive the long-term growth trajectory of the business.

謝謝你，Bill。是的。我想我只要補充：你說得對。我們在第一季的銷售與行銷人頭數成長很強勁，這是史上單季最強的銷售招募。我們也持續在銷售與行銷以及研發（R&D）方面，積極投資於長期成長。我也想說，我們同時看到很強的生產力，這告訴我們先前的人才招募投資帶來了良好的產出，使我們有能力維持這些積極的目標。因此我們感覺良好。我們會持續在這裡投資，並持續推動公司業務的長期成長軌跡。

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

各位女士先生，今天的電話會議到此結束。感謝各位參與。您現在可以掛線。