Nutanix Inc (NTNX) 2021 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Nutanix Q1 Fiscal Year 2021 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

女士們、先生們，感謝大家的支持，歡迎參加 Nutanix 2021 財年第一季財報電話會議。 （操作員指示）請注意，今天的會議正在錄音。 （操作員指示）

Now I'd like to hand the conference over to your speaker today, Ms. Tonya. Please go ahead.

現在我想將會議交給今天的發言人托尼亞女士。請繼續。

Good afternoon, and welcome to today's conference call to discuss the results of our first quarter of fiscal 2021. This call is also being broadcast over the web and can be accessed in our Investor Relations website at ir.nutanix.com. Joining me today are Dheeraj Pandey, Nutanix' CEO; and Duston Williams, Nutanix' CFO.

下午好，歡迎參加今天的電話會議，討論我們 2021 財年第一季的業績。本次電話會議也將透過網路播出，您可以透過我們的投資者關係網站 ir.nutanix.com 存取。今天加入我的是 Nutanix 執行長 Dheeraj Pandey；以及 Nutanix 財務長 Duston Williams。

After the market closed today, Nutanix issued a press release announcing financial results for its first quarter of fiscal year 2021. If you'd like to read the release, please visit the Press Releases section of our IR website.

今天股市收盤後，Nutanix 發布了一份新聞稿，宣布了 2021 財年第一季的財務表現。如果您想閱讀該新聞稿，請造訪我們 IR 網站的新聞稿部分。

During today's call, management will make forward-looking statements, including statements regarding our business plans, strategies and outlooks, including our financial performance, use of financial targets and performance metrics and competitive position in future periods; the timing and impact of our current and future business model transition; the factors driving our growth; the timing and impact of our announced CEO transition plan; and the current and anticipated impact of the COVID-19 pandemic. These forward-looking statements involve risks and uncertainties, some of which are beyond our control, which could cause actual results to differ materially and adversely from those anticipated by these statements. For a detailed description of these factors, please refer to our SEC filings, including our most recent annual report on Form 10-K for fiscal 2020 filed with the SEC on September 23, 2020, as well as our earnings press release issued today. These forward-looking statements apply as of today, and we undertake no obligation to update these statements after this call. As a result, you should not rely on them as representing our views in the future.

在今天的電話會議中，管理層將做出前瞻性陳述，包括有關我們的業務計劃、戰略和展望的陳述，包括我們的財務業績、財務目標和績效指標的使用以及未來期間的競爭地位；我們當前和未來業務模式轉型的時間和影響；推動我們增長的因素；我們宣布的首席執行官過渡計劃的時間和影響；以及 COVID-19 的疫情和預期影響。這些前瞻性陳述涉及風險和不確定性，其中一些是我們無法控制的，可能導致實際結果與這些陳述預期的結果有重大不利差異。有關這些因素的詳細說明，請參閱我們向美國證券交易委員會 (SEC) 提交的文件，包括我們於 2020 年 9 月 23 日向美國證券交易委員會提交的 2020 財年 10-K 表格最新年度報告，以及我們今天發布的收益新聞稿。這些前瞻性陳述自今日起適用，我們不承擔在本次電話會議後更新這些陳述的義務。因此，您不應依賴它們來代表我們將來的觀點。

Please note, unless otherwise specifically referenced, all financial measures we use on today's call are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. We have provided, to the extent available, reconciliations to these non-GAAP financial measures to GAAP financial measures on our IR website and in our earnings press release.

請注意，除非另有特別說明，我們在今天的電話會議上使用的所有財務指標均以非 GAAP 為基礎表示，並且已進行調整以排除某些費用。我們已在投資者關係網站和收益新聞稿中盡可能提供了這些非 GAAP 財務指標與 GAAP 財務指標的對帳。

Lastly, Nutanix management will host virtual meetings with investors at the Crédit Suisse 24th Annual Technology Conference on December 1, the Wells Fargo TMT Summit on December 2, the Raymond James Technology Conference on December 7 and the Needham Growth Conference on January 11. We hope to connect with many of you there.

最後，Nutanix管理層將於12月1日在瑞士信貸第24屆年度技術大會、12月2日在富國銀行TMT峰會、12月7日在雷蒙德·詹姆斯技術大會以及1月11日在尼德姆增長大會上與投資者舉行線上會議。我們希望屆時能與各位投資者建立聯繫。

And with that, I'll turn the call over to Dheeraj. Dheeraj?

說完這些，我將把電話轉給 Dheeraj。迪拉傑？

Thank you, Tonya, and good afternoon, everyone.

謝謝你，托妮亞，大家午安。

Q1 was a very good quarter, positioning us well for the rest of fiscal '21. While Duston will go into more details on the financials, the headline is that we outperformed across all our key metrics. ACV billings were 14% ahead of the midpoint of our guidance and consensus. And notably, Q1 was our best ACV bookings quarter ever, the pandemic notwithstanding. In addition, we delivered strong gross margins, EPS and free cash flow performance.

第一季表現非常好，為我們在 21 財年剩餘時間內的表現奠定了良好的基礎。雖然達斯頓會詳細介紹財務狀況，但總體而言，我們在所有關鍵指標上都表現出色。 ACV 帳單比我們的指導和共識的中點高出 14%。值得注意的是，儘管受到疫情影響，但第一季仍是我們有史以來 ACV 預訂量最好的季度。此外，我們也實現了強勁的毛利率、每股盈餘和自由現金流表現。

We're delighted with our continued progress, and it is great to look back on our journey over the last 3 years and see how far we have come. Our product thesis of a hybrid and multi-cloud future built on top of our industry-leading hyperconverged infrastructure, the HCI of last decade, combined with an ambitious transition to a cloud-like subscription business model, is bearing fruit. Well, there's more to do. So the hardest work is behind us, and I'm proud and grateful for what we've collectively accomplished to date.

我們對我們的持續進步感到高興，回顧過去三年的歷程並看看我們已經走了多遠，這真是太好了。我們的產品主題是混合雲和多雲的未來，建立在我們行業領先的超融合基礎設施、過去十年的 HCI 之上，再加上向類似雲的訂閱業務模式的雄心勃勃的轉型，正在取得成果。嗯，還有很多事情要做。所以最艱難的工作已經過去了，我為我們迄今為止共同取得的成就感到自豪和感激。

There were a number of factors that contributed to our Q1 performance. First, our ACV-based sales compensation strategy delivered positive benefits to our business. In Q1, our average contract term shortened. And as a result of the shift, we saw lower overall discounting and we sold more new products, all while driving significant run rate ACV growth of 29% year-over-year at a $1.3 billion scale.

有許多因素影響了我們第一季的業績。首先，我們基於 ACV 的銷售補償策略為我們的業務帶來了積極效益。第一季度，我們的平均合約期限縮短了。而由於這項轉變，我們看到整體折扣降低，我們銷售了更多的新產品，同時推動 ACV 的運作率年增 29%，達到 13 億美元。

Next, as I mentioned, we saw strong adoption of our new products on top of growth in our core software. On a rolling 4-quarter basis, our new product attach rate during Q1 was 35%, up 7 percentage points from a year ago. In fact, new ACV for new products grew 87% year-over-year and 27% quarter-over-quarter. Within our newer products, we saw particularly good momentum with our data center solutions, Files and Flow, as well as DevOps and database-as-a-service solution, our Calm and Era. Notably, a significant number of new product deals also included more licenses for our core software, proving our thesis that as we drive demand for our new products, we also drive demand for our core software, which is the foundation for our hybrid cloud infrastructure, the new HCI of this decade. Demand for our solutions was consistent across all our geographies and many verticals, including federal, which had a good quarter as expected, owing to the seasonality of the U.S. government's fiscal year-end. The fed sector also had a number of 1-year contract duration deals contributing to the reduction of average contract durations in the quarter, which Duston will address in more detail.

接下來，正如我所提到的，除了核心軟體的成長之外，我們還看到新產品的採用率很高。連續 4 個季度，我們第一季的新產品配售率為 35%，比去年同期成長了 7 個百分點。事實上，新產品的 ACV 年比成長 87%，較上季成長 27%。在我們的新產品中，我們看到資料中心解決方案 Files 和 Flow 以及 DevOps 和資料庫即服務解決方案 Calm 和 Era 的發展勢頭特別好。值得注意的是，大量新產品交易還包括更多核心軟體許可證，證明了我們的論點：隨著我們推動新產品需求，我們也推動核心軟體需求，這是我們混合雲基礎設施的基礎，即本十年的新型 HCI。我們所有地區和許多垂直行業對我們解決方案的需求都是一致的，包括聯邦政府，由於美國政府財政年度結束時的季節性，聯邦政府本季度的業績如預期般良好。聯邦部門也簽訂了一些為期一年的合約期限交易，導致本季平均合約期限縮短，達斯頓將對此進行更詳細的闡述。

As always, our customer journeys are the best ways to speak of the quarter. A customer win during the quarter that combined many of the themes I've discussed was with one of the largest and oldest financial services firms in the world providing investment management, servicing and administration. This existing customer, which has spent more than $20 million in lifetime, spent another $1.7 million in ACV to expand their private cloud. We also had a very similar story with one of the largest power companies in Japan, which has spent upwards of $15 million lifetime digitizing their desktops and filers with our software stack, spending another $1.8 million in ACV in Q1.

像往常一樣，我們的客戶旅程是談論本季的最佳方式。本季我贏得了一個客戶，該客戶結合了我所討論的許多主題，是世界上規模最大、歷史最悠久的金融服務公司之一，提供投資管理、服務和管理服務。該現有客戶一生中花費超過 2,000 萬美元，又花費 170 萬美元的 ACV 來擴展其私有雲。我們也與日本最大的電力公司之一有過非常相似的經歷，該公司一生中花費了超過 1500 萬美元，使用我們的軟體堆疊對其桌面和文件進行數位化，並在第一季度又花費了 180 萬美元的 ACV。

Our strong results were also driven by our go-to-market momentum in the area of cloud. Specifically, the successful launch of our ACV sales compensation plan, together with effective sales enablement and training around ACV benefits. In addition, our sales teams have done an excellent job of improving the quality of the sales process by building a robust pipeline even during COVID-19, working closely with partners and adopting a multiproduct and multi-workload sales approach. The channel continues to play an extremely important role in how we help evolve our customer journey.

我們的強勁業績也得益於我們在雲端運算領域的市場開拓勢頭。具體來說，我們成功推出了 ACV 銷售補償計劃，並圍繞 ACV 福利進行了有效的銷售支援和培訓。此外，即使在新冠疫情期間，我們的銷售團隊也透過建立強大的管道、與合作夥伴密切合作以及採用多產品和多工作負載的銷售方式，出色地提高了銷售流程的品質。管道在我們幫助改善客戶旅程方面繼續發揮著極其重要的作用。

To that end, we announced a simplified channel program to deliver even more profitability and an accelerated road map to help partners embrace the cloud business model. Additionally, we made meaningful improvements to Nutanix University, our education arm. The program now provides more certifications across new skill levels in technology tracks to increase the stickiness of Nutanix software and overall consumption of our technology. We quadrupled participation in this program in the past year with over 38,000 learners and counting. Our on-prem partnerships with HPE, Dell, Lenovo and others continue to be an important part of our strategy for offering freedom of choice to our customers. In fact, we had our best quarter-to-date with HPE in new ACV as well as meaningful new customer acquisition.

為此，我們宣布了一項簡化的通路計劃，以提供更高的獲利能力，並製定了加速的路線圖，幫助合作夥伴採用雲端業務模式。此外，我們也對教育部門 Nutanix University 進行了有意義的改進。該計劃現在為技術軌道上的新技能水平提供更多認證，以提高 Nutanix 軟體的黏性和我們技術的整體消費。去年，我們參與該計劃的人數增加了四倍，目前已有超過 38,000 名學習者，並且還在增加。我們與 HPE、戴爾、聯想等公司的內部合作繼續成為我們為客戶提供自由選擇策略的重要組成部分。事實上，我們與 HPE 合作，在本季度取得了迄今為止最好的成績，包括新的 ACV 以及有意義的新客戶獲取。

A great example of a new customer we gained during this quarter is a large European furniture retailer who selected our core software, database-as-a-service solution, Era, and automation software, Calm. We plan to implement a fully automated distributed cloud solution that will reduce IT implementation time from weeks to days with no IT staff on site, especially as they navigate the pandemic.

我們在本季獲得的新客戶的一個很好的例子是一家大型歐洲家具零售商，他們選擇了我們的核心軟體、資料庫即服務解決方案 Era 和自動化軟體 Calm。我們計劃實施一套全自動分散式雲端解決方案，將 IT 實施時間從幾週縮短到幾天，且無需 IT 人員在現場，尤其是在應對疫情期間。

Speaking on the pandemic and digital transformation it has helped accelerate, for the past several quarters, we have become a meaningfully digital marketing organization. Test Drive, our 0 touch self-service for prospects, continues to provide distinctive top of the funnel engagement and has been shown to shorten sales cycles while delivering the highest conversion rate of all of our marketing programs. We also continue to hold virtual events globally. And in Q1, we held the largest event ever, virtual or in person, in our company's history. Our 100% virtual .NEXT event had record attendance of over 40,000 prospects, customers and partners and is on track to deliver strong pipeline generation in the quarter at a significantly lower cost than in-person events.

談到疫情及其加速的數位轉型，在過去幾個季度裡，我們已經成為一個有意義的數位行銷組織。試駕是我們為潛在客戶提供的零接觸自助服務，它繼續提供獨特的漏斗頂端參與，並已被證明可以縮短銷售週期，同時提供我們所有行銷計劃中最高的轉換率。我們也將繼續在全球舉辦虛擬活動。在第一季度，我們舉辦了公司歷史上規模最大的活動，無論是虛擬的還是面對面的。我們的 100% 虛擬 .NEXT 活動創下了超過 40,000 名潛在客戶、客戶和合作夥伴的出席記錄，並且預計將在本季度以比現場活動低得多的成本實現強勁的管道生成。

Let me also share with you how we are morphing from being a pioneer in on-prem hyperconverged infrastructure to being an authentic hybrid cloud infrastructure, the new HCI company. During the quarter, we announced the general availability of Clusters, our HCI on AWS. We also announced a significant partnership with Microsoft to bring our product portfolio on to Azure. This partnership substantially evolves our company's strategy, enabling us to provide solutions that will deliver seamless application, data and license mobility, including a singular experience in management across all clouds. This is a major competitive advantage as we become the foremost infrastructure software company with a bring your own license approach to help our customers in their hybrid computing journey.

我也想與大家分享我們如何從本地超融合基礎設施的先驅轉變為真正的混合雲基礎設施，即新型 HCI 公司。在本季度，我們宣布了 AWS 上的 HCI Clusters 的全面上市。我們也宣布與微軟建立重要合作關係，將我們的產品組合引入 Azure。此次合作極大地改變了我們公司的策略，使我們能夠提供能夠實現無縫應用程式、資料和許可證移動性的解決方案，包括跨所有雲端管理的獨特體驗。這是一個主要的競爭優勢，因為我們成為領先的基礎設施軟體公司，採用自備許可證的方式幫助我們的客戶進行混合運算之旅。

As we've stated in the past, the availability of Nutanix Clusters on AWS also offers new benefits, including extending the simplicity and ease of use of our software to the public cloud. This represents a significant step forward in realizing our vision to make computing invisible anywhere by delivering a unified fabric across multiple clouds, public or private. A financial services institution in the APJ region is an example of a new customer who purchased Clusters on AWS during the quarter in a 1-year contract. They selected Nutanix to help support their growing test and dev needs for services to their clients, and Nutanix Clusters in AWS provides them with the flexibility and frictionless migration to any cloud they require.

正如我們過去所說，Nutanix Clusters 在 AWS 上的可用性也帶來了新的好處，包括將我們軟體的簡單性和易用性擴展到公有雲。這代表著我們在實現願景方面邁出了重要一步，即透過在多個公有雲或私有雲上提供統一的結構，使運算在任何地方都變得不可見。亞太及日本地區的金融服務機構就是一個例子，該機構的新客戶在本季以 1 年合約的形式購買了 AWS 集群。他們選擇 Nutanix 來幫助支援他們不斷增長的為客戶提供服務的測試和開發需求，而 AWS 中的 Nutanix Clusters 為他們提供了靈活性和無摩擦遷移到他們所需的任何雲端的能力。

We continue to innovate both our core platform and new products in the quarter. This includes new capabilities to our core software platform as well as the launch of our Kubernetes-based PaaS solution, platform-as-a-service, and significant updates to our database-as-a-service solution, Era. As subscription business models continue to underscore the need for consumption and renewals, our product reliability and outstanding customer service continue to be a big driver of our loyalty and repeat business. For the seventh year in a row, we were awarded the NorthFace Scoreboard Award from CRMI in recognition of our customer centricity. And because of our sustained excellence for having won this award for more than 5 years, we were also confirmed the NorthFace Summit-class award, which is a rare honor.

本季我們將繼續創新我們的核心平台和新產品。這包括我們核心軟體平台的新功能以及基於 Kubernetes 的 PaaS 解決方案、平台即服務的推出，以及我們的資料庫即服務解決方案 Era 的重大更新。隨著訂閱業務模式繼續強調消費和續訂的必要性，我們的產品可靠性和出色的客戶服務繼續成為我們忠誠度和重複業務的重要驅動力。我們連續第七年榮獲 CRMI 頒發的 NorthFace Scoreboard 獎，以表彰我們以客戶為中心的理念。並且由於我們連續五年多獲得該獎項的優異表現，我們也被確認獲得NorthFace Summit級獎項，這是一項難得的榮譽。

Finally, as we think about our performance relative to our future opportunity, I'd like to talk briefly about our addressable markets and how they continue to grow and evolve. Gartner predicts that by 2025, 80% of organizations will be using hyperconverged solutions, doubling from 40% in 2020. We've been encouraged to see that IT spending has held up despite the pandemic as companies prioritize modernization with private and public clouds, hands-free automation and remote work and business continuity projects. This is validated by the results for third annual Enterprise Cloud Index, which we launched last week. Across 3,400 IT professionals around the world, 46% of respondents said they increased their hybrid investments as a result of the pandemic. Global IT teams are planning substantial infrastructure changes and collectively see hybrid cloud deployments increasing 37 percentage points over the next 5 years. In short, these trends provide a powerful tailwind in the lift and shift to cloud, both private and public.

最後，當我們思考相對於未來機會的表現時，我想簡單談談我們的潛在市場以及它們如何繼續成長和發展。 Gartner 預測，到 2025 年，80% 的組織將使用超融合解決方案，比 2020 年的 40% 翻倍。我們很高興地看到，儘管疫情肆虐，但 IT 支出仍然保持穩定，因為企業優先考慮透過私有雲和公有雲、免持自動化、遠端工作和業務連續性專案進行現代化改造。我們上週發布的第三份年度企業雲指數的結果證實了這一點。在全球 3,400 名 IT 專業人士中，46% 的受訪者表示，由於疫情，他們增加了混合投資。全球 IT 團隊正在規劃重大的基礎架構變革，並預計未來 5 年混合雲部署將增加 37 個百分點。簡而言之，這些趨勢為私有雲和公有雲的遷移提供了強大的推動力。

With that, let me hand it over to Duston. Duston?

說完這些，讓我把它交給達斯頓。達斯頓？

Thank you, Dheeraj. Going into the quarter, we provided guidance that took into consideration both an uncertain macro environment and our transition to an ACV-based sales compensation model. We clearly outperformed our expectations and are very pleased with the strong start to the fiscal year.

謝謝你，Dheeraj。進入本季度，我們提供的指導既考慮了不確定的宏觀環境，也考慮了我們向基於 ACV 的銷售補償模式的過渡。我們明顯超越了預期，對本財年的強勁開局感到非常滿意。

As we entered FY '21, our overall thesis for the business going forward is centered on the following: our industry-leading product set that seamlessly enables on-prem, off-prem and the convergence of both remains the best and most elegant solution in the marketplace.

當我們進入 21 財年時，我們未來業務的整體論點集中在以下幾點：我們行業領先的產品組合可無縫支持本地、異地以及兩者的融合，仍然是市場上最好、最優雅的解決方案。

Next, new products will continue to drive the growth of our core HCI offering by further extending our solution to address new opportunities that were previously out of reach with our core solution alone. Optionality truly matters to our customers and prospects, and offering subscription options with variable terms and their corresponding flexibility will continue to add significant optionality, which in turn leads to additional ACV growth. Our ACV-first focus will ultimately strengthen our business model via term compression leading to lower discounting, better deal economics, accelerated ACV growth and a shorter time to more efficient renewals.

接下來，新產品將進一步擴展我們的解決方案，以應對以前僅靠我們的核心解決方案無法實現的新機遇，從而繼續推動我們核心 HCI 產品的成長。可選性對我們的客戶和潛在客戶來說確實很重要，提供具有可變條款及其相應靈活性的訂閱選項將繼續增加顯著的可選性，從而帶來額外的 ACV 成長。我們以 ACV 為先的重點最終將透過期限壓縮來加強我們的業務模式，從而降低折扣、改善交易經濟效益、加速 ACV 成長並縮短更有效率的續約時間。

And finally, we expect our go-to-market execution will continue to show improvement. And this, combined with a market-leading solution, ultimately becomes a very powerful combination for ACV growth going forward.

最後，我們預期我們的市場執行情況將持續改善。並且，與市場領先的解決方案相結合，最終將成為未來 ACV 成長的強大組合。

The business thesis set forth above clearly played out in Q1. During the quarter, our core product continued to perform very well, with new customer ACV bookings representing 23% of total ACV bookings ex renewals. We also added about 680 net new customers in the quarter despite the ongoing macro uncertainties related to COVID.

上述商業論點在第一季得到了清晰的體現。在本季度，我們的核心產品持續表現良好，新客戶 ACV 預訂量佔續約前 ACV 總預訂量的 23%。儘管與 COVID 相關的宏觀不確定性持續存在，但我們本季也增加了約 680 名淨新客戶。

Linearity was also very good during Q1. We generated a record amount of new pipeline, and we also added a substantial amount of ACV backlog compared to a typical usage of backlog in previous Q1s. As you may recall, during our Q4 earnings call, it was our belief that our ACV-based sales comp would put a renewed focus on new product sales. And not surprisingly, new products performed very well in Q1.

第一季的線性也非常好。我們產生了創紀錄數量的新管道，與先前第一季的典型積壓使用情況相比，我們還增加了大量 ACV 積壓。您可能還記得，在我們的第四季財報電話會議上，我們相信基於 ACV 的銷售額將重新專注於新產品的銷售。毫不奇怪，新產品在第一季表現非常出色。

As Dheeraj noted, we had a record quarter of new ACV related to our new products, with Calm, Era, Files, Flow and Objects all delivering record ACV quarters. New products also played a role in improving our deal economics during the quarter.

正如 Dheeraj 所指出的，我們新產品相關的新 ACV 創下了新紀錄，其中 Calm、Era、Files、Flow 和 Objects 均創下了新紀錄。新產品也為改善本季的交易經濟狀況發揮了作用。

Furthermore, the benefit of subscription optionality clearly came into play during the quarter, with more customers opting for the budget flexibility of 1-year deals. Our outperformance on 1-year deals in Q1 has added an incremental $20 million to $25 million to the renewals pool that will come up in Q1 FY '22, which is over and above our previous plan. We expect these renewals to be more predictable and transacted at significantly less cost compared to our new and upsell business, which will drive leverage in our model.

此外，訂閱可選性的優勢在本季度明顯發揮了作用，更多客戶選擇一年期套餐的預算彈性。我們在第一季的一年期交易中表現出色，為 2022 財年第一季的續約資金池增加了 2,000 萬至 2,500 萬美元，這超出了我們先前的計劃。我們預計，與我們的新業務和追加銷售業務相比，這些續約將更加可預測，交易成本也將大大降低，這將提高我們模式的槓桿作用。

As we look ahead, we are very optimistic about the setup for the balance of the fiscal year. In Q1, we experienced lower discounting that resulted in better deal economics as well as some term compression, all as we expected. The specifics around the actual Q1 term compression also mirrored our previously communicated expectations, specifically that our new ACV-based sales comp plan with compressed terms and we would see a shift from 5-year deals to more 3-year and 1-year deals. And when terms did compress, existing customers would not experience any significant term compression, while new customers would potentially see larger amounts of term compression.

展望未來，我們對本財政年度的平衡安排非常樂觀。在第一季度，我們經歷了更低的折扣，從而帶來了更好的交易經濟效益以及一些期限壓縮，這一切都如我們預期的那樣。實際第一季期限壓縮的具體細節也反映了我們先前傳達的預期，具體來說，我們的新基於 ACV 的銷售補償計劃採用壓縮期限，我們將看到從 5 年期交易轉向更多的 3 年期和 1 年期交易。當期限確實壓縮時，現有客戶不會經歷任何明顯的期限壓縮，而新客戶可能會看到更大程度的期限壓縮。

In Q1, average contract term decreased to 3.5 years compared to 3.8 years in Q4 '20, which was somewhat lower than our expectations. Federal completed several large 1-year deals, which contributed to the average decrease. Since our federal business is usually a much smaller percentage of our total business in Q2 versus Q1, we do not expect the federal business to have the same level of impact on average term in Q2. While we do not plan to disclose this level of detail every quarter, average contract term of existing customers ex renewals decreased by 1/10 of a year, while average contract term of new customers declined by 6/10 of a year.

第一季度，平均合約期限從 20 年第四季的 3.8 年下降至 3.5 年，略低於我們的預期。聯邦完成了幾筆為期一年的大型交易，導致平均價格下降。由於我們的聯邦業務在第二季所佔總業務的比例通常比第一季要小得多，因此我們預期聯邦業務對第二季的平均期限的影響程度不會相同。雖然我們不打算每季都揭露這種細節，但現有客戶（不包括續約）的平均合約期限減少了十分之一，而新客戶的平均合約期限減少了十分之六。

Lastly, our go-to-market is showing consistent execution, as evidenced by our top line outperformance over the last few quarters. Although we only have 1 quarter under our belt in FY '21, we are very encouraged with our progress to date.

最後，我們的行銷策略展現了一致的執行力，過去幾季我們的營收表現優異就證明了這一點。儘管我們在 21 財年只經歷了一個季度，但我們對迄今為止的進展感到非常鼓舞。

Now I'll move on to some specific Q1 financial highlights. ACV billings were $138 million, reflecting 10% growth year-over-year, well above our guidance range of $118 million to $121 million. Run rate ACV as of the end of Q1 was $1.29 billion, growing 29% year-over-year compared to our guidance of at least 20% growth.

現在我將介紹一些具體的第一季財務亮點。 ACV 帳單為 1.38 億美元，年增 10%，遠高於我們 1.18 億美元至 1.21 億美元的指引範圍。截至第一季末的運行率 ACV 為 12.9 億美元，年成長 29%，而我們預期的成長幅度至少為 20%。

Revenue, which as expected was impacted by decreased average term length, was $313 million, down 1% year-over-year. Our non-GAAP gross margin in Q1 was 81.9% versus our guidance of 81%. operating expenses were $341 million, down 12% year-over-year and versus our guidance of $350 million to $360 million. End user computing as a percent of total business was flat versus Q4 '20 as the spike in demand we saw at the beginning of COVID moderated.

正如預期的那樣，收入受到平均期限縮短的影響，為 3.13 億美元，年減 1%。我們第一季的非公認會計準則毛利率為 81.9%，而我們的預期為 81%。營運費用為 3.41 億美元，年減 12%，而我們的預期為 3.5 億美元至 3.6 億美元。由於新冠疫情初期需求激增，最終用戶計算佔總業務的百分比與 2020 年第四季相比持平。

During the quarter, we completed our previously announced $125 million stock buyback. We purchased 5.175 million shares at an average price of $24.15 per share. As a reminder, the stock buyback was executed with the intention of offsetting the additional dilution that we will incur related to the PIK, or paid-in-kind, interest feature on the Bain convertible notes. Our non-GAAP net loss was $89 million for the quarter or a loss of $0.44 per share.

本季度，我們完成了先前宣布的 1.25 億美元股票回購。我們以每股 24.15 美元的平均價格購買了 517.5 萬股。提醒一下，股票回購的目的是為了抵消與貝恩可轉換票據的 PIK 或實物支付利息特性相關的額外稀釋。本季我們的非公認會計準則淨虧損為 8,900 萬美元，即每股虧損 0.44 美元。

Our free cash flow for Q1, which was aided by very good linearity, was negative $16 million. This performance was significantly better than our internal expectations. We closed the quarter with cash and short-term investments of $1.32 billion versus $720 million in Q4 '20. The Q1 cash total includes $750 million from the Bain convertible note less expenses and $125 million stock buyback. And DSOs in Q1 were 54 days versus 68 days in Q4 '20, also driven by good linearity.

我們第一季的自由現金流為負 1600 萬美元，這得益於非常好的線性。這一表現明顯優於我們的內部預期。本季末，我們的現金和短期投資為 13.2 億美元，而 2020 年第四季為 7.2 億美元。第一季現金總額包括來自貝恩可轉換票據的 7.5 億美元減去費用和 1.25 億美元的股票回購。第一季的 DSO 為 54 天，而 2020 年第四季為 68 天，這也是由良好的線性驅動的。

Now turning to our Q2 '21 guidance. ACV billings can be between $145 million and $148 million, representing year-over-year growth of 4% to 6%. Gross margin of approximately 81.5%. Operating expenses between $360 million and $307 million, representing a year-over-year decline of 7% to 9%. Weighted average shares outstanding of approximately 202 million.

現在轉向我們的 2021 年第二季指引。 ACV 帳單金額介於 1.45 億美元至 1.48 億美元之間，年增 4% 至 6%。毛利率約81.5%。營運費用在 3.6 億美元至 3.07 億美元之間，年減 7% 至 9%。加權平均流通股數約為2.02億股。

Now a few modeling assumptions. Our guidance for Q2 includes a slightly negative COVID impact as we continue to be cautious in the light of the second and third waves of COVID that could create additional macro uncertainty. On a bookings basis, the implied year-over-year growth rate of our Q2 '21 ACV is expected to be substantially higher as we consumed backlog in Q2 '20.

現在有幾個建模假設。我們對第二季的指導包括略微負面的 COVID 影響，因為鑑於第二波和第三波 COVID 可能造成額外的宏觀不確定性，我們繼續保持謹慎。從預訂量來看，由於我們在 20 年第二季消耗了積壓訂單，預計 2021 年第二季 ACV 的隱含年增率將大幅提高。

As a reminder, similar to what we have experienced over the last 2 years, we would expect Q3 to exhibit sequential seasonality, which suggests a slight decrease in ACV billings in Q3 versus Q2. And based on the Q2 '21 ACV billings guidance, we would expect run rate ACV to continue its strong growth trend and grow approximately 25% year-over-year. We are projecting a slight decrease in term length in Q2 compared to 3.5 years in Q1.

提醒一下，與過去兩年的經歷類似，我們預計第三季將呈現連續的季節性，這意味著第三季的 ACV 帳單與第二季相比會略有下降。根據 21 年第二季 ACV 帳單指引，我們預期運行率 ACV 將持續維持強勁成長趨勢，年成長約 25%。我們預計第二季的期限與第一季的 3.5 年相比將略有縮短。

From a free cash flow perspective, we are not currently expecting Q2 linearity to mirror that of Q1. And therefore, we expect our cash usage to increase in Q2. Regardless of the exact amount of cash usage in Q2, we would expect the free cash flow for the first half of FY '21 to exceed our internal plan set forth at the beginning of the fiscal year. While we maintain our focus on go-to-market efficiencies and we continue to benefit from lower travel costs, as we have previously communicated, we anticipate fiscal '21 operating expenses to be flat to slightly higher than last year as we continue to grow and invest in the business.

從自由現金流的角度來看，我們目前預期第二季的線性不會與第一季的線性相似。因此，我們預計第二季的現金使用量將會增加。無論第二季的具體現金使用量是多少，我們預計 21 財年上半年的自由現金流將超過我們在財年初制定的內部計畫。正如我們之前所傳達的，雖然我們繼續專注於市場進入效率，並繼續受益於較低的差旅成本，但隨著我們繼續成長和投資業務，我們預計 21 財年的營運費用將與去年持平或略高。

And finally, as we did last quarter to help with your modeling, included in our earnings presentation located on our IR website are historical trends for ACV billings, run rate ACV, billings term length and a bridge on how to model and convert our current and future ACV billings guidance to total billings.

最後，正如我們上個季度為幫助您建模所做的那樣，我們 IR 網站上的收益演示文稿中包含了 ACV 賬單的歷史趨勢、運行率 ACV、賬單期限長度以及如何建模和將我們當前和未來的 ACV 賬單指導轉換為總賬單的橋樑。

With that, I'd like to pass it back to Dheeraj for additional remarks before we take questions. Thank you.

在我們回答問題之前，我想將其交還給 Dheeraj 以徵求他的補充意見。謝謝。

Thanks, Duston. I want to close this quarter's earnings call with a thank you to everyone who has participated in the journey to get where we are now. We're extremely encouraged with the progress in the last 3 years of our business model transformation. While we still have work to do, these results demonstrate the power of the subscription thesis. Our Board continues to make progress on the CEO search. We look forward to updating you when we have meaningful news.

謝謝，達斯頓。在本季收益電話會議結束時，我想向所有參與我們目前所取得的進展的人表示感謝。我們對過去三年商業模式轉型所取得的進展感到非常鼓舞。雖然我們還有很多工作要做，但這些結果證明了訂閱理論的力量。我們的董事會在尋找執行長方面繼續取得進展。當我們有有意義的消息時，我們期待向您更新。

Personally, it has been a journey of a lifetime to serve our customers and partners, working alongside mutants, as we call our employees. With a future-proof business model, a customer base that fundamentally values reliability and a technology portfolio that has such a strong product market fit, our best is yet to come. This is the decade to watch for a company that so values simple, secure and seamless.

就我個人而言，為我們的客戶和合作夥伴提供服務，與我們的員工（變種人）一起工作，是一生的旅程。憑藉面向未來的商業模式、從根本上重視可靠性的客戶群以及具有強大產品市場契合度的技術組合，我們最好的未來尚未到來。對於一家如此重視簡單、安全和無縫的公司來說，這是值得關注的十年。

Now we'll open it up for questions.

現在我們開始提問。

(Operator Instructions) Your first question will come from the line of Jason Ader of William Blair.

（操作員指示）您的第一個問題來自 William Blair 的 Jason Ader。

My question is on the ACV transition. And it seems like maybe there were a little bit of surprises, but if you could just talk about broadly speaking what surprised you, what didn't surprise you and why you did better than you expected.

我的問題是關於 ACV 轉型的。似乎可能有一點點意外，但如果您能大致談談什麼讓您感到驚訝，什麼沒有讓您感到驚訝，以及為什麼您的表現比預期的要好。

Yes. I'll take a shot, and Dheeraj, feel free to jump in here, too. Jason, I would say there was very few, if any, real surprises. I think we had a -- which we talked about, we had an opinion and view going into Q1, and pretty much all those views played out as planned. We thought terms would decrease. We thought they decreased more in new customers, less on existing customers. We thought that, that would lead to higher deal economics. Deal economics improved. Optionality, we knew, mattered. And it mattered not only for our customers, but for our sales reps because they have more tools now to offer as they go attack their quotas. So I can't really think of anything. Yes, it was maybe 1/10 lower or so on the terms than we expected, but that's not an exact science anyway. So there was just very little surprises that we hadn't thought through, quite honestly.

是的。我會嘗試一下，Dheeraj，你也可以加入進來。傑森，我想說，如果有的話，真正的驚喜也非常少。我認為我們已經討論過了，我們對第一季有自己的看法和觀點，而且幾乎所有這些看法都按計劃進行了。我們認為條款會減少。我們認為新客戶減少較多，現有客戶減少較少。我們認為，這將帶來更高的交易經濟效益。交易經濟狀況有所改善。我們知道，可選性很重要。這不僅對我們的客戶很重要，對我們的銷售代表也很重要，因為他們現在有更多的工具可以提供，以完成他們的配額。所以我真的想不出什麼。是的，這可能比我們預期的要低 1/10 左右，但這並不是一門精確的科學。所以說實話，我們沒有想到的驚喜很少。

And I think the ACV from -- certainly from a sales comp, I think, played out better than probably we anticipated, and I think everybody has kind of rallied around that. And optionality, again, matters and you saw what it delivered for a quarter and a good guide for Q2.

我認為，從銷售額來看，ACV 的表現可能比我們預期的要好，而且我認為每個人都對此表示贊同。再次強調，可選性很重要，您已經看到了它在一個季度中的表現以及對第二季度的良好指導。

And the demand environment was better than you expected?

需求環境比您預期的好嗎？

Well, based on record pipeline, we were pretty pleased with -- especially in this environment. Obviously, it's not perfect. And the economy is not humming at full 100%. There's still verticals that are very impacted here. Yes, I think we were pretty pleased overall from that perspective, too.

嗯，根據記錄流程，我們非常滿意——特別是在這種環境下。顯然，它並不完美。但經濟並未完全復甦。這裡仍然有一些垂直行業受到很大影響。是的，我認為從這個角度來看我們總體上也相當滿意。

Yes. And I think the only thing I'll add to that, Jason and Duston, is how -- very much like federal was for us early on in 2011 through 2015, I think the federal business with ACV has really embraced this. And we kind of knew it when we were going into it that O&M is going to be our friend because a lot of federal spenders, operations and maintenance, where they keep it under the radar in terms of spend and budgeting. So it turned out to be a great quarter for federal. Part of it is because of the 1-year deals that Duston talked about.

是的。傑森和達斯頓，我想我唯一要補充的是——就像 2011 年初到 2015 年聯邦政府對我們所做的那樣，我認為聯邦政府與 ACV 的業務確實接受了這一點。當我們進入這個領域時，我們就知道 O&M 將成為我們的朋友，因為許多聯邦支出者、營運和維護人員在支出和預算方面都保持低調。因此，對於聯邦來說，這是一個偉大的季度。部分原因是達斯頓談到的一年合約。

Maybe the other pleasant surprise has been how our salespeople embraced it to really think that this makes them a lot more competitive than selling 3-, 5-, 7-year deals.

也許另一個令人驚訝的是我們的銷售人員如何接受它並真正認為這使他們比銷售 3 年、5 年、7 年的交易更具競爭力。

Your next question comes from the line of Ittai Kidron of Oppenheimer.

您的下一個問題來自奧本海默 (Oppenheimer) 的伊泰·基德隆 (Ittai Kidron)。

A couple of questions from me. First of all, from a sales force capacity, how do you guys think about the evolution of the capacity going forward just given that renewal activity is now going to be done on an annual basis instead of a multiyear basis? So more time from a sales capacity standpoint would be dedicated to renewals than getting new business. How do you think about the evolution of capacity? Does that mean you need to hire aggressively again on that front in order to create more new customer capacity?

我有幾個問題。首先，從銷售團隊的能力來看，鑑於續約活動現在將以年度為基礎而不是多年為基礎進行，你們如何看待未來能力的發展？因此，從銷售能力的角度來看，更多的時間將用於續約而不是獲取新業務。您如何看待容量的演變？這是否意味著您需要再次積極招募以創造更多新客戶容量？

So can you...

那你也可以...

Yes. that -- sure. Go ahead, Dheeraj.

是的。那——當然。繼續吧，Dheeraj。

Yes. So I think the field reps are all focused on land and expand, which is all new ACV-focused. Now they will get a ding if they didn't get the renewal. But all in all, we expect them to be really focused on land and expand. Always there's customer success team, which is all on the inside on the phone that's really doing adopt and renew, and that's how they are going to be comped as well.

是的。所以我認為現場代表都專注於土地和擴張，這都是以新的 ACV 為重點的。現在，如果他們沒有獲得續約，他們就會受到打擊。但總而言之，我們希望他們真正專注於土地並進行擴張。總是有客戶成功團隊，他們都是內部人員，透過電話真正地進行採用和更新，這也是他們獲得補償的方式。

Yes. No, what I'd add to that, Ittai, is that the whole thesis around this -- one of the main premise here around the move to ACV is leverage, right? And that's the exact point. All the renewals will not take aggressive hiring, right, because that's going to be handled predominantly by a separate team. Now we have to go build up that separate team. But all these renewals will not require a one-for-one sales rep adds. So that's where pretty much any subscription business gets a lot of their leverage. We just haven't had the renewals flow in yet. And you saw the impact from just the acceleration of 1-year deals in the quarter. We've added $20 million, $25 million to the pool in Q1 '21 -- '22. And that's not going to require new reps to go attack that. So that's the premise of the ACV move.

是的。不，我想補充的是，Ittai，圍繞這一點的整個論點——轉向 ACV 的主要前提之一是槓桿作用，對嗎？這就是確切的要點。所有的續約都不會採取積極的招募方式，因為這主要由一個單獨的團隊來處理。現在我們必須去建立那個獨立的團隊。但所有這些續約都不需要一對一的銷售代表添加。因此，幾乎所有訂閱業務都可以從中獲得很大的優勢。我們只是還沒有收到續約資訊。並且您也看到了本季一年期交易加速帶來的影響。我們在 2021 年至 2022 年第一季向該資金池增加了 2,000 萬美元、2,500 萬美元。這並不需要新的代表來解決這個問題。這就是 ACV 舉措的前提。

Got it. Okay. And maybe as a follow-up, maybe just then on that topic. Clearly, you've done very well in cutting the contract term quite aggressively in the quarter. I guess it was just a little bit outperformance there. But does this help you -- make you perhaps think differently about where is your long-term steady state from a term standpoint or the pace by which you can get there?

知道了。好的。或許作為後續，或許就此話題而言。顯然，你們在本季大幅縮短合約期限方面做得非常好。我想這只是略微超出預期的表現。但這對你有幫助嗎——讓你從長期角度以不同的方式思考你的長期穩定狀態在哪裡，或者你達到該狀態的速度是多少？

Not dramatically. Federal played a role in some of the term compression in Q1. They won't be the same percent of the business in Q2. So there's some offsetting factors there. We've got this view of kind of low 3-year average somewhere at the end of the fiscal year. We'll see how that plays out. I think the more that our sales reps get used to this model and maybe, to a certain degree, the more our customers get used to this model, with the optionality and things like that, maybe we see a little bit bigger push. But 1 quarter is too early to give a real opinionated view, especially because how federal kind of played into this a little bit. But certainly, we're encouraged from what we've seen from the first quarter anyway.

不是很顯著。聯邦在第一季的期限壓縮中發揮了一定作用。他們在第二季的業務佔比不會相同。因此，存在一些抵消因素。我們認為，在財政年度結束時的某個時候，三年平均值會比較低。我們將拭目以待事情將如何發展。我認為我們的銷售代表越習慣這種模式，也許在某種程度上，我們的客戶越習慣這種模式，有了可選性和諸如此類的東西，也許我們會看到更大的推動力。但僅僅一個季度就得出真正的結論還為時過早，尤其是考慮到聯邦政府在這方面發揮了一定作用。但無論如何，第一季的表現確實令我們感到鼓舞。

And there's going to be opposing forces as well. The large enterprises, and in places like Japan, they're probably still going to be longer term. Some of our very large customers are still longer term. And then you look at federal and commercial on the other side, that will go shorter term. So I think it's going to be a healthy yin-yang between these 2.

而且還會有反對的力量。大型企業以及日本等地的企業可能仍會採取較長期的行動。我們的一些非常大的客戶仍與我們保持長期合作關係。然後你再看看另一方面的聯邦和商業，這將是短期的。所以我認為這兩者之間會形成一種健康的陰陽。

Your next question will come from the line of Alex Kurtz of KeyBanc.

您的下一個問題來自 KeyBanc 的 Alex Kurtz。

I had a question, but I want to start with a clarification. Duston, on the contract duration target, that 3 you just threw out, was that the end of fiscal '22 you were targeting?

我有一個問題，但我想先澄清一下。達斯頓，關於合約期限目標，您剛才提到的 3 個目標是到 22 財政年度結束嗎？

Well, I was mentioning low -- again, we've got 1 quarter. But what I was referencing there, kind of in the low 3s at the end of fiscal '21.

好吧，我剛才提到低——再說一次，我們有一個季度。但我所指的是，21 財年末的出局率大概是 3% 左右。

And do you think there's a chance that given what you saw with the 1-year opportunities that this thing could sort of dip below 3 at some point in fiscal '22 or too early to tell?

而且，根據您所看到的 1 年期機會，您是否認為這個數字有可能在 22 財年的某個時候跌破 3，或者現在下結論還為時過早？

It's too early to tell. But we've got -- as Dheeraj said, you've got some older school customers that still will hang and cling to 5-year deals, too. So I think, again, 1 quarter, it's just too early to tell. But we're encouraged of everything that kind of we thought was going to happen pretty much happened. But give us another quarter and we'll give another -- I think a better opinion.

現在下結論還為時過早。但正如 Dheeraj 所說，我們有一些老學校客戶，他們仍然會堅持簽訂 5 年合約。所以我認為，現在說第一季還為時過早。但令我們感到鼓舞的是，我們所預料的一切幾乎都發生了。但再給我們一個季度，我們就會給另一個季度——我認為更好的意見。

And I think we will be able to -- I just want to say that we'll be able to go and tweak this depending on how much cash we need to collect as well based on simple sales incentives and such as well as part of sales compensation. So we're not overly worried. We feel like now we have a great architecture in place and we can go and tweak the way we want it.

我認為我們能夠——我只是想說，我們將能夠根據我們需要收集多少現金以及基於簡單的銷售激勵和部分銷售補​​償來對此進行調整。所以我們並不太擔心。我們覺得現在我們已經有了一個很棒的架構，我們可以用我們想要的方式來調整。

I appreciate that, Dheeraj. A question to you about the person to replace you over the -- when that decision happened. There's been a lot of discussions with investors about what the right profile would look like and capabilities and experience. Now that you're a little bit into this process, maybe you could share your vision about the person that would take over your role as CEO and what you would like to see that person bring to the table? I know you touched on it a little bit last quarter. If you could expand, I think that would be very helpful.

我很感激，Dheeraj。我想問您一個問題，關於誰將接替您——這個決定是什麼時候做出的。我們與投資者進行過多次討論，討論合適的個人資料、能力和經驗。現在您已經稍微了解了這個過程，也許您可以分享一下您對接替您擔任執行長職位的人的看法，以及您希望這個人能帶來什麼？我知道您在上個季度稍微談到了這一點。如果您可以擴展的話，我認為這將會非常有幫助。

Yes. I think the big piece is, how do you balance the short term and the long term because you can't overdo one or the other. You have to be strategy-focused, be able to look around the corner because computing is an industry that's changing so fast that you can't take your eyes off the strategy ball. Basically, someone who can embrace process, people, technology and product. So I think we've gotten some great candidates in the pipeline. And we definitely would like the relevance of the infrastructure to be there. There's a lot of people out there in the business software space. We're looking at quite a few people in infrastructure as well. And I think all in all, somebody who has a 3- to 5-year view and a vision would be very, very important, especially for our sales engineers, our developers, our system reliability engineers. There's a lot of engineering in the company in various different departments that also need to look up to somebody for a strategy and the public cloud landscape that's out in front of us.

是的。我認為最重要的問題是，如何平衡短期和長期目標，因為你不能過度追求其中一個目標。你必須以策略為中心，能夠預見未來，因為電腦產業的變化太快，你不能把目光從策略上移開。基本上，就是能夠接受流程、人員、技術和產品的人。所以我認為我們已經找到了一些優秀的候選人。我們確實希望基礎設施具有相關性。商業軟體領域有很多人。我們也關注基礎建設領域的不少人才。總而言之，我認為，擁有 3 到 5 年視野和遠見的人非常非常重要，尤其是對我們的銷售工程師、開發人員和系統可靠性工程師而言。公司中不同部門的許多工程師也需要尋求某人的幫助來制定策略以及擺在我們面前的公共雲格局。

Your next question will come from the line of Jack Andrews of Needham.

您的下一個問題來自尼德姆的傑克安德魯斯。

Congratulations on the good start to the new fiscal year. I wanted to see if you could drill down a bit more on the new product strength that you're experiencing. You mentioned a number of products that you're seeing success with, but could you drill down on the specific types of use cases? Are they mainly DevOps-related or something else? And the related question is, are you seeing the success? Have you changed any sales incentives around new products? Or is -- do you credit the shift to ACV is helping to drive this new product attach rate?

祝賀新財政年度開局良好。我想看看您是否可以更深入地了解您正在體驗的新產品的優勢。您提到了許多取得成功的產品，但您能深入探討一下具體類型的用例嗎？它們主要與 DevOps 相關還是其他什麼？相關的問題是，您看到成功了嗎？您是否改變過新產品的銷售獎勵措施？或者—您是否認為轉向 ACV 有助於提高這項新產品的附加率？

Duston, do you want me to take that? Or should you take it?

達斯頓，你想讓我拿走它嗎？或者你應該接受它嗎？

I'll let you take the use cases, Dheeraj.

我會讓你採取用例，Dheeraj。

Okay. Cool. Yes. So first of all, we saw really good unit economics, as Duston said, because of short, midterm lens. So we're not taking money out of one pocket and putting it in the other. We are very, very mindful of that. New products have to fend for themselves and they have to pull through the core. So a lot of what we watch for is no financial engineering of money moving from core business to new products. I think all in all, we saw some great traction in database-as-a-service. Again, amazingly good economics with large databases, Oracle, SQL, SAP, Epic and health care. We're seeing a ton of large database workloads, and we've made them so simple that DB is loving this new architecture and the fact that they can drag and drop it from one cloud to another.

好的。涼爽的。是的。首先，正如達斯頓所說，由於短期、中期的視角，我們看到了非常好的單位經濟效益。所以我們不會把錢從一個口袋拿出來放到另一個口袋。我們非常非常清楚這一點。新產品必須自力更生，必須透過核心來拉動。因此，我們關注的重點是不要透過金融工程將資金從核心業務轉移到新產品。我認為總的來說，我們看到了資料庫即服務的巨大發展勢頭。再次，大型資料庫、Oracle、SQL、SAP、Epic 和醫療保健的經濟效益非常好。我們看到了大量的大型資料庫工作負載，我們使它們變得如此簡單，以至於 DB 喜歡這種新的架構以及他們可以將其從一個雲端拖放到另一個雲端的事實。

The other one is around unstructured data, files and objects with the special containers. We're doing a really good job around that DevOps use case. And finally, desktop-as-a-service. I think there's a lot of work we've done, not just for Citrix and VMware Horizon, but also around our own brokers. So all in all, I think databases, unstructured data and desktop-as-a-service, some great use cases around that. Duston?

另一個是圍繞著具有特殊容器的非結構化資料、檔案和物件。我們在 DevOps 用例方面做得非常好。最後，桌面即服務。我認為我們已經做了很多工作，不僅針對 Citrix 和 VMware Horizo​​n，還圍繞著我們自己的經紀人。總而言之，我認為資料庫、非結構化資料和桌面即服務有一些很好的用例。達斯頓？

And then just -- yes, just on the sales comp part, for the most part -- I mean, it's something spread around. But for the most part, I believe it was the help -- it was certainly helped by the move to ACV because you got to remember, now $100,000 1-year deal for a new product is the same as -- it was the same as a $500,000 deal that they had to go try to do on a 5-year basis. So there's clearly more optionality, as I said, not only on our customers' perspective, but with the sales reps to go use these different tools from an ACV perspective and go drive additional quota retirement with smaller terms. And I will say this played well. There's obvious little things here and there, but it played well in all regions. I mean all regions were above quota, which we love to see, obviously. So that kind of gives you a little bit of feel of the power of optionality.

然後只是 — — 是的，就銷售補償部分而言，在大多數情況下 — — 我的意思是，它是傳播開來的。但在大多數情況下，我相信這是有幫助的——轉向 ACV 肯定有所幫助，因為你必須記住，現在 100,000 美元的 1 年期新產品交易是一樣的——它和他們必須嘗試以 5 年期為基礎的 500,000 美元交易是一樣的。因此，正如我所說，顯然有更多的可選性，不僅從我們的客戶的角度來看，而且銷售代表也可以從 ACV 的角度使用這些不同的工具，並以較小的條款推動額外的配額退休。我要說的是，這場比賽進行得很順利。雖然這裡和那裡有一些明顯的小問題，但它在所有地區都表現良好。我的意思是所有地區的人數都超過了配額，這顯然是我們樂意看到的。這讓你稍微感受到了可選性的力量。

Your next question will come from the line of James Fish of Piper Sandler.

您的下一個問題來自 Piper Sandler 的 James Fish。

Just want to drill down on the change to ACV-based compensation. Can you give further color as to what you're seeing from reps? And whether this caused any additional churn than normal as your employee count and your sales and marketing count actually was down sequentially?

只是想深入了解基於 ACV 的薪酬變化。您能否進一步說明您從代表處看到的情況？由於您的員工數量以及銷售和行銷數量實際上連續下降，這是否會導致比正常情況下更多的客戶流失？

I'm sorry, Jim, on the last part of the question, was what again?

抱歉，吉姆，關於問題的最後一部分，是什麼？

Just your sales and marketing and total employee count was down sequentially. So I'm just wondering, on the change to ACV-based compensation, can you give us further color as to what you're seeing from reps? And if it caused additional churn in the quarter than normal.

只是您的銷售和行銷以及員工總數連續下降。所以我只是想知道，關於基於 ACV 的薪酬變化，您能否進一步告訴我們您從銷售代表那裡看到的情況？如果它在本季度造成了比正常情況下更多的客戶流失。

Yes. I mean churn in general within the sales organization isn't much different from what it has been over the last several quarters. Now there might have been some more selective and maybe some forced churn. The focus may be on a little bit more software selling and things like that. But overall, the churn rates aren't significantly different. Now what Chris Kaddaras and team have done, though, in the field is they've certainly shifted to incremental leverage, how do we get more productivity out of the same reps. There's been some realignment with resources amongst regions and things like that. So that -- the real focus right now is that we have a reasonable amount of reps. How do you get them even more productive certainly from an ACV perspective and things like that. So that's the main focus right now. We won't add a significant amount of reps this fiscal year.

是的。我的意思是，銷售組織內部的整體客戶流失率與過去幾季的情況沒有太大差異。現在可能會有一些更具選擇性的流失，甚至可能會有一些強制性的流失。重點可能會放在軟體銷售和類似的事情上。但整體而言，客戶流失率並沒有顯著差異。現在，克里斯·卡德拉斯 (Chris Kaddaras) 和團隊在該領域所做的就是，他們肯定已經轉向了增量槓桿，我們如何從相同的代表那裡獲得更高的生產力。各地區之間的資源已經進行了一些重新調整等等。所以——現在真正的重點是我們有合理數量的代表。從 ACV 角度等等來看，如何讓他們更有效率呢？這就是目前的主要焦點。本財政年度我們不會增加大量銷售代表。

Your next question will come from Matt Hedberg of RBC.

您的下一個問題來自 RBC 的 Matt Hedberg。

It's Dan Bergstrom for Matt Hedberg. So Dheeraj, you mentioned Clusters in the prepared remarks. Just curious around early use case for early adopters there. Are customers looking for that -- the elasticity on demand bursting, mobility across clouds or optionality around the operating model? Just any thoughts around early adoption or what you're hearing from customers.

丹伯格斯特羅姆 (Dan Bergstrom) 為馬特赫德伯格 (Matt Hedberg) 配音。所以 Dheeraj，你在準備好的發言中提到了集群。只是對那裡的早期採用者的早期用例感到好奇。客戶是否在尋找這種東西——按需爆發的彈性、跨雲端的移動性或圍繞營運模式的可選性？只是關於早期採用的任何想法或您從客戶那裡聽到的內容。

Absolutely. Yes. I just want to have everybody probably also draw from the whole movement of virtualization 15 years ago. A lot of the enterprises are moving from Unix servers to Intel x86. And virtualization had to find a great use case, and that was test and dev. And then it became VDI at 5 years. Citrix was one of the biggest workloads for VMware apart from test and dev in 2008 and '09. So for us, I think we are, again, very use case-focused when it comes to Clusters. It's a very important piece of the puzzle just around very high I/O intensive workloads, low latency workloads, test and dev, virtual desktops. And also lift and shift. I think there's a big disaster recovery sort of initiative coming within the large enterprises as well.

絕對地。是的。我只是想讓大家也能從 15 年前的整個虛擬化運動中汲取經驗。許多企業正在從 Unix 伺服器轉向 Intel x86。虛擬化必須找到一個很好的用例，那就是測試和開發。五年後它變成了 VDI。 2008 年和 2009 年，除了測試和開發之外，Citrix 是 VMware 最大的工作量之一。因此，對於我們來說，我認為，當談到叢集時，我們再次非常注重用例。它是圍繞著高 I/O 密集型工作負載、低延遲工作負載、測試和開發、虛擬桌面等難題中非常重要的一環。並且還可以提升和轉移。我認為大型企業內部也會採取大規模的災難復原措施。

And the best part about Clusters is it's bring your own license, bring your own contract of AWS and it will be the same for Azure as well. So we expect that many of these early use cases around large databases, test and dev, as you saw from one of the wins I talked about, and finally, a lift and shift to the cloud.

Clusters 最好的部分是它自帶許可證，自帶 AWS 合同，對於 Azure 來說也是如此。因此，我們預計許多早期用例都圍繞著大型資料庫、測試和開發，正如您從我談到的其中一個勝利中看到的那樣，最終實現向雲端的提升和轉變。

Great. And then maybe for Duston on the expense side. You provided some color around guidance for the quarter, for the year. From here, should we think about maybe remaining prudent on the expenses for now? But would there be a potential to maybe accelerate investment into accelerated growth? Should we start to see that on the top line further out?

偉大的。然後也許對於達斯頓來說，在費用方面。您為本季度和本年度提供了一些指導。從現在開始，我們是否應該考慮暫時保持謹慎的開支？但是否有可能加速投資以加速成長？我們是否應該開始在更遠的頂線上看到這一點？

Duston, are you there?

達斯頓，你在嗎？

I'm so sorry. Yes. Just in the near to midterm, hopefully, from a top line perspective, we're going to get most of that through leverage, increased rep productivity. So you won't see some great hiring surge to get incremental ACV growth. We should be able to get a reasonable amount of incremental ACV growth with most of the resources we have. Currently now we need to continue to hire here and there or whatever. But I wouldn't -- clearly, I wouldn't put it as a surge of anything like that. I mean we've got a fair amount of resources spread throughout the regions as it is here and now.

我很抱歉。是的。就在近期到中期，希望從頂線角度來看，我們將透過槓桿、提高代表生產力來獲得大部分收益。因此，您不會看到出現大幅招聘熱潮來獲得增量 ACV 成長。我們應該能夠利用我們擁有的大部分資源來獲得合理的 ACV 增量成長。目前，我們需要繼續四處招募。但我不會——顯然，我不會把它看作是那樣的激增。我的意思是，我們現在已經在各個地區擁有了相當多的資源。

So at some point, there's some things that we've just benefited from clearly, and everybody else has. Obviously, no travel, right? So at some point, some travel will come back online. But even when -- when everything -- whatever normal is in the future, we won't spend -- hopefully, we won't spend nearly as much travel as we had in the past just because everybody's learned how to do things differently. So first and foremost, it's leverage, rep productivity and then selective hiring as we need realignment of resources as we need and to make sure, obviously, we're taking care of customers with products and support and things like that. So that's kind of the view here over the near to midterm.

所以在某種程度上，我們顯然從某些事情中受益，其他人也一樣。顯然，沒有旅行，對吧？因此，在某個時候，一些旅行將會恢復。但即使當一切恢復正常時，我們也不會花費——希望我們不會像過去那樣花那麼多錢去旅行，只是因為每個人都學會瞭如何以不同的方式做事。因此，首先也是最重要的是槓桿作用、代表生產力，然後是選擇性招聘，因為我們需要根據需要重新調整資源，並確保我們透過產品和支援等方式來照顧客戶。這就是我們對近期至中期選舉的看法。

Your next question will come from the line of Katy Huberty of Morgan Stanley.

您的下一個問題來自摩根士丹利的凱蒂休伯蒂 (Katy Huberty)。

Just coming off the strong October quarter ACV performance, why would ACV billings growth decelerate in January, especially given what you said about the record pipeline levels, the fact that you didn't eat into backlog like you typically do in the first quarter and the successful .NEXT conference? Just some color as to why the outlook is a bit more conservative than the performance you just put in. Then I have a follow-up.

剛剛經歷了 10 月份強勁的 ACV 表現，為什麼 ACV 賬單增長會在 1 月份放緩，特別是考慮到您所說的創紀錄的管道水平、您沒有像第一季度那樣消耗積壓訂單的事實以及成功的 .NEXT 會議？我只是想解釋為什麼前景比您剛才提出的表現要保守一些。然後我有一個後續問題。

Yes. Again, we mentioned that we haven't gotten real aggressive with the Q2 outlook. We're concerned what's happening. Obviously, things are going in the wrong direction from a COVID perspective and shutdowns in second and third phases. So that's clearly encompassed in our billings. Obviously, to your point, we grew ACV billings 10% in Q1 year-over-year. We've guided 4% to 6%.

是的。我們再次提到，我們對第二季的前景還沒有真正抱持正面的態度。我們對正在發生的事情感到擔憂。顯然，從 COVID 的角度來看，事情正朝著錯誤的方向發展，第二階段和第三階段也處於關閉狀態。所以這顯然包含在我們的賬單中。顯然，正如您所說，我們第一季的 ACV 帳單年增了 10%。我們預計成長率為 4% 至 6%。

Now again, though, if you look at it on a bookings basis, which we're not disclosing anymore, but that 4% to 6% growth rate is probably 2x -- at least 2x higher on a comparative bookings basis. So there's some pretty good growth when you look at it on a bookings basis because, again, in Q2 '20, we brought -- actually used some backlog, which was a little unusual from that perspective. So I think the combination of -- on a bookings, it's quite a bit better. And again, we're a little -- again, we've got something baked in there from a COVID perspective to a certain degree.

不過，現在，如果您從預訂量的角度來看，我們不再披露，但 4% 到 6% 的增長率可能是 2 倍 - 至少在比較預訂量的基礎上高出 2 倍。因此，從預訂量來看，成長相當不錯，因為在 2020 年第二季度，我們實際上使用了一些積壓訂單，從這個角度來看，這有點不尋常。所以我認為，從預訂量來看，這種組合要好得多。再說一次，我們有點——再說一次，從 COVID 的角度來看，我們在某種程度上已經準備好了。

Yes. Just to add to...

是的。只是為了補充...

Just a follow-up in that last point. I was just going to say, are you seeing anything in the month of November that would cause you to want to be more conservative on the outlook? Or is it just the news headlines and the potential for rollback of economic closings?

這只是對最後一點的後續跟進。我只是想說，您是否在 11 月看到了什麼事情，讓您對前景持更保守的態度？或者這只是新聞頭條和取消經濟封鎖的可能性？

Yes. News headlines. It's not much different than our prior approach. I just think at this point, I think to get very aggressive just doesn't make sense in this environment.

是的。新聞標題。這與我們之前的方法沒有太大不同。我只是認為，在目前的情況下，採取非常激進的行動是沒有意義的。

Yes. Sorry, Dheeraj. I didn't mean to cut you off.

是的。抱歉，Dheeraj。我不是有意打斷你。

No, sorry. I was just saying that, look, we had 1 quarter where we understand ACV and the ACV-first strategy, but we get a second one. We understand that would be a coincidence. The third one would be a pattern. So I think next 2 quarters are going to be really important for us to learn about this ACV-first strategy.

不，抱歉。我只是說，你看，我們有一個季度了解了 ACV 和 ACV 優先策略，但我們還有第二個季度。我們知道這只是巧合。第三個是模式。因此我認為接下來的兩個季度對於我們了解 ACV 優先策略非常重要。

Okay. And then just lastly, Duston, how do you think about from here the time line to breakeven free cash flow? What has to happen to build confidence in that becoming a more near-term goal?

好的。最後，達斯頓，您認為從現在開始實現自由現金流收支平衡的時間表是怎樣的？要怎麼做才能增強信心，使之成為更近期的目標？

Well, we need to get terms kind of compressed to where they're going to even out. I don't know if that's 3-year, maybe a little bit above, maybe a little bit below. But we have to have that happen first. Because right now, we've got 2 offsetting factors as to how fast will terms come down. So that takes out, obviously, billings and revenue. And then on the flip side, regardless of terms, how fast can we accelerate the ACV growth to kind of offset that. But we need some stabilization in the terms first to have a good view. Now we think that's probably -- as probably the first half maybe of FY '22. And then I think the combination of some more productivities and prudent expense growth, products, all that stuff, it stepped up quite well after that point. But again, we need some stabilization. That's why I've always been the view that the quicker we get through the term compression, quite honestly, the better.

好吧，我們需要將術語壓縮到平衡的程度。我不知道這是否是 3 年，可能稍微高一點，也可能稍微低一點。但我們必須先實現這一點。因為現在，我們有兩個抵消因素來決定條款下降的速度。因此，這顯然會扣除帳單和收入。另一方面，無論條件如何，我們能多快加速 ACV 成長來抵消這一點。但我們首先需要穩定一些條件，才能有一個好的看法。現在我們認為這可能是——可能是 22 財年的上半年。然後我認為，更高的生產力和審慎的費用成長、產品等所有這些東西的結合，在那之後都會有相當好的發展。但同樣，我們需要一些穩定。這就是為什麼我一直認為，我們越快完成術語壓縮，坦白說，就越好。

Your next question comes from the line of Wamsi Mohan of Bank of America.

您的下一個問題來自美國銀行的 Wamsi Mohan。

Yes. Nice quarter. Can you tell us if the renewal activity changed much during the quarter? And how we should think about renewal billings as a percent of total billings in fiscal '21? Is 15% sort of in the ballpark there? And I have a follow-up.

是的。不錯的季度。您能告訴我們本季的續約活動是否發生了很大變化嗎？我們該如何看待續約帳單佔 21 財年總帳單的百分比？ 15% 大概是這個數字嗎？我還有一個後續問題。

Yes. We haven't given specifics on that, but the good news is we've given you now quite a bit of data to go start modeling that on your own. You now have Q4 and Q1 ACV -- as a percent of ACV by term length. So you know now, obviously, Q1 1-year deals will swap in 4 quarters. You got the 3-year, the 5-year and things like that. So we've disclosed quite a bit to do some pretty simple modeling from that perspective.

是的。我們還沒有給出具體細節，但好消息是我們已經給了你相當多的數據，可以讓你開始自己建模。現在，您有了 Q4 和 Q1 ACV——以期限長度為單位的 ACV 百分比。所以你現在知道，顯然，第一季的 1 年期交易將在 4 個季度內交換。你可以得到 3 年期、5 年期等等。因此，我們從這個角度披露了很多信息，並進行了一些相當簡單的建模。

On a TCV basis, over the last 12 months, it's been below -- roughly 10% or below renewals and things like that, and that will start to kick up. Again, we've already added $20 million, $25 million to Q1 '22 just based on what happened here in this quarter, and that will continue to accelerate. You'll see some more in '22. And then, again, we've talked about this, in FY '23, you've got a pretty big tranche of 3-year deals that start to kick in now from the initial push to subscription a few years ago.

以 TCV 為基礎，在過去 12 個月中，續約率一直低於——大約 10% 或以下，這種情況將開始上升。再次，僅根據本季發生的情況，我們已經為 2022 年第一季增加了 2000 萬美元、2500 萬美元，而且還將繼續加速。您將在 2022 年看到更多。然後，我們再次討論過這個問題，在 23 財年，您將獲得相當多的 3 年期交易，這些交易從幾年前最初的訂閱推動開始生效。

Okay. And can you maybe help us think about the strength between enterprise and SMB? And especially given the vaccine news now, how are you thinking about sort of a recovery in SMB? And maybe even just tell us like where your SMB exposure is.

好的。您能否幫助我們思考企業和中小企業之間的優勢？尤其是考慮到現在疫苗的消息，您如何看待中小企業的復甦？甚至可能只是告訴我們您的 SMB 風險在哪裡。

Do you want to take that, Dheeraj?

你想接受這個嗎，Dheeraj？

Yes. I mean, obviously, it's early. It's probably going to take another 3 quarters for administering the vaccine itself. And we have a fairly international business. We have -- there are quarters in which we do about 45%, 50% of our business outside the U.S. And when you talk about SMB, a lot of the mid-market outside the U.S., we consider as SMB. Even the enterprise outside the U.S., we look at that as commercial. So I think given the fact that we have customers in about 150 countries, we're taking a view that it will probably take 2 to 3 quarters of real administration of the vaccine itself.

是的。我的意思是，顯然現在還早。疫苗接種本身可能還需要三個季度的時間。我們的業務相當國際化。在某些季度，我們的業務約有 45% 到 50% 是在美國以外的。當你談到 SMB 時，我們將美國以外的許多中型市場視為 SMB。即使是美國以外的企業，我們也將其視為商業行為。因此，我認為，鑑於我們在大約 150 個國家/地區擁有客戶，我們認為實際接種疫苗本身可能需要 2 到 3 個季度的時間。

In the meanwhile, we are focused on new products, new workloads and whatever you can get from new customers. I think we've done a fairly good job, and we're changing a lot of our practices like digital prospecting. What can we do to reinvent ourselves, transform ourselves so that when the pent-up demand opens up, we have an amazing digital business. So we're doing everything we can right now to really open up for the SMB as they actually feel safer.

同時，我們專注於新產品、新工作量以及您從新客戶那裡獲得的一切。我認為我們做得相當不錯，而且我們正在改變很多做法，例如數位勘探。我們可以做些什麼來重塑自我、改變自我，以便當被壓抑的需求被釋放時，我們就能擁有令人驚嘆的數位業務。因此，我們現在正在盡一切努力真正向中小企業開放，讓他們確實感到更安全。

Your next question will come from the line of Aaron Rakers of Wells Fargo.

您的下一個問題來自富國銀行的 Aaron Rakers。

Congrats on the quarter. Thinking about just the modeling variables. I'm curious if you could talk a little bit about how we should think about ACV to billings ratio and how you think about billings to revenue. I'm just curious because we did see some compression on those ratios in the quarter. I mean how do we think about those going forward? And I have a follow-up.

恭喜本季取得佳績。只考慮建模變數。我很好奇，您是否可以談談我們應該如何看待 ACV 與帳單比率，以及您如何看待帳單與收入。我只是很好奇，因為我們確實看到本季這些比率有所壓縮。我的意思是我們要如何看待這些未來的發展？我還有一個後續問題。

Sure. Again, Aaron, we've given you, I think, all the tools to go do that as far as working with ACV and TCV and doing where you think terms are going to come down. So all that is pretty easily doable with the tools that we've given you there. Again, with 1/10 of a decline or 2/10 or whatever it might be Q1 to Q2, you're not going to see massive movement. I don't think, anyway. We'll see how the quarter plays out in those ratios.

當然。再說一次，亞倫，我認為我們已經為你提供了所有工具，讓你能夠與 ACV 和 TCV 合作，並按照你認為條款會下降的方式去做。因此，使用我們提供的工具，所有這些都可以輕鬆完成。再說一次，如果第一季到第二季下降 1/10 或 2/10 或無論什麼幅度，你都不會看到大幅波動。無論如何，我不這麼認為。我們將觀察本季這些比率的表現。

On the bill to revenue ratio in general, not talking ACV but total billings, total revenue, that's probably a little easier to talk about. With the term compression, you've got slower total revenue and total billings growth, but you still got a fair amount coming off the balance sheet at a little bit higher rate. So that's why you saw the bill to revenue come down this quarter.

就帳單與收入比率而言，一般來說，不是談論 ACV，而是總帳單、總收入，這可能更容易談論一些。由於期限壓縮，您的總收入和總帳單成長會放緩，但您仍然可以以略高的利率從資產負債表中扣除相當多的金額。這就是為什麼你看到本季的帳單收入下降的原因。

And I think probably going forward for a bit, it's probably 1.1 to 1.15, somewhere around there on that ratio. But again, the good news is you've got a lot of tools there to go -- you can go pick where you think terms are going to be and you can back into ACV and then total billings and all that stuff. So it's a pretty unique exercise.

我認為，未來一段時間內，這個比例大概在 1.1 到 1.15 之間。但好消息是，您有很多工具可以使用——您可以選擇您認為的條款，然後您可以回到 ACV，然後是總帳單和所有這些東西。所以這是一個非常獨特的練習。

That's very helpful. And then as a quick follow-up. You mentioned on the beginning of the transcript about AWS and Microsoft and the engagement there. I'm just curious, can you go a little bit deeper in terms of the go-to-market engagement with those cloud providers?

這非常有幫助。然後進行快速跟進。您在記錄的開頭提到了 AWS 和微軟以及它們之間的合作。我只是好奇，您能否更深入地談談與這些雲端供應商的市場合作？

Yes. So the good thing is that this bring your own contract is very helpful for consumption point of view. I mean both AWS and Azure sellers get paid on consumption. And HCI is a killer workload to really get rapid consumption of everything that they sold, that they commit. They don't get paid on commits. They get paid on consumption. So we're really working hand-in-hand at Microsoft. We've actually built Nutanix-ready nodes, and those things will be burning the sort of -- it does a great job for customers as well as for the sellers. It burns the credits so that they don't lose them at the end of 3 years, which is what happens if you don't use the cloud credits.

是的。因此，好處是，從消費的角度來看，這種自備合約非常有幫助。我的意思是 AWS 和 Azure 賣家都會根據消費而獲得報酬。而 HCI 是一種殺手級工作負載，可以真正快速消耗他們所銷售和承諾的所有產品。他們不會因承諾而獲得報酬。他們根據消費獲得報酬。因此，我們確實在微軟攜手合作。我們實際上已經建立了 Nutanix 就緒節點，這些東西將會產生某種效果——它對客戶和賣家都有很大幫助。它會燒掉積分，這樣他們就不會在 3 年後失去它們，如果你不使用雲積分就會發生這種情況。

And for the sellers, it just means that they have better, faster consumption. That's how they get paid because consumption is revenue recognition for the cloud players. So we're really working hand-in-hand with both the cloud players and their sellers and doing webinars and a lot of joint prospecting. And honestly, there's a lot that they're also understanding and learning from the enterprise because the enterprise has a lot of mundane workloads, legacy workloads. I was talking to one of the customers the other day, and they're like, "The Windows machine does not reboot in the public cloud." It does not boot up in the public cloud because they have legacy devices and things of that nature. So there's a ton of that lift and shift that will come up, and we hope to actually not have to take 3 years to redesign the operating system or redesign the applications before this can all come together.

而對賣家來說，這只意味著他們可以更好、更快地消費。這就是他們獲得報酬的方式，因為消費就是雲端運算提供者的收入確認。因此，我們確實與雲端運算供應商及其賣家攜手合作，舉辦網路研討會並進行大量聯合勘探。老實說，他們也從企業那裡了解和學習了很多東西，因為企業有很多日常工作負載和遺留工作負載。前幾天我和一位客戶交談，他們說：「Windows 機器無法在公有雲中重新啟動。」它無法在公有雲中啟動，因為它們擁有遺留設備和類似的東西。因此，將會出現大量的提升和轉變，我們希望在這一切完成之前，實際上不必花費 3 年的時間來重新設計作業系統或重新設計應用程式。

Your next question will come from the line of Simon Leopold of Raymond James.

您的下一個問題來自雷蒙德詹姆斯公司的西蒙利奧波德。

First one, I just wanted to maybe set some context. You talked about the strong growth rates of new products and you've rattled off some of what contributes to that, but I'm not sure I got the baseline of what percent of ACV roughly is coming from new products and how should we see that evolve over time.

首先，我只是想說明一些背景。您談到了新產品的強勁成長率，並列舉了一些促成這一成長的因素，但我不確定我是否了解 ACV 的大致百分比來自新產品，以及我們應該如何看待這項變化。

Yes. We broke that out for a few quarters or a couple of points that 15% or so of new ACV is coming from new products. And we've got, obviously, a goal in '21 to accelerate that further. I don't think there's any reason why it shouldn't. We're off to a good start. Again, we've got all the tools to go focus on these products. So we've got a continued acceleration as a percent of new ACV built into the plan.

是的。我們發現，幾個季度或幾個點的新增 ACV 中有 15% 左右來自新產品。顯然，我們的目標是在 21 年進一步加速這一進程。我認為沒有理由不這樣做。我們已經有了一個好的開始。再次強調，我們擁有專注於這些產品的所有工具。因此，我們已將新 ACV 的百分比持續加速納入計劃。

Great. And then as a follow-up and maybe somewhat related. But when we see the duration trend, one of the aspects you mentioned in your prepared remarks was the high federal contribution. And I guess, my understanding is some agencies are restricted to 1-year term deals. So that has to play something in the mix. Could you maybe help us understand how much the federal contribution influenced the average duration and how we should think about sort of what's normal in quarters that don't have the big federal contribution? I hope that makes sense.

偉大的。然後作為後續行動，也許有些相關。但是當我們看到持續時間趨勢時，您在準備好的發言中提到的一個方面就是聯邦政府的高額貢獻。我想，我的理解是一些機構僅限於一年期的交易。所以這必須在混合中發揮某種作用。您能否幫助我們了解聯邦政府的貢獻對平均持續時間的影響有多大，以及我們應該如何看待在沒有大量聯邦政府貢獻的季度中什麼是正常的？我希望這是有道理的。

Yes, it makes perfect sense. I'm not sure we have a normal yet with 1 quarter, obviously. But federal, probably it depends how you exactly look at it with renewals or ex renewals or whatever. But 1/10, maybe you could get it to almost 2/10 of a year. But let's call it closer maybe to 1/10. So that -- federal will obviously come down as a percent of the total business here in Q2, which it always does from Q1.

是的，這很有道理。顯然，我不確定第一季的情況是否正常。但對聯邦來說，這可能取決於你如何看待續約、前續約或其他什麼。但是 1/10，也許你可以將其提高到一年的近 2/10。但我們最好將其稱為更接近 1/10。因此，聯邦業務在第二季度佔總業務的百分比顯然會下降，從第一季開始就一直如此。

And then do we get more knowledge with our sales force and more knowledge with the customer base going forward that you get some continued downward trend. That's why we assume it's a slight decrease in Q2. I'd be surprised if it was a little more than -- any more than that. But again, it just -- there's no normal yet. Give us another quarter, we'll give you another opinion, as I said earlier.

然後，我們是否會從銷售人員和客戶群中獲得更多的知識，從而發現持續下降的趨勢。這就是我們假設第二季會略有下降的原因。如果這個數字比這多一點，我會感到驚訝。但再說一遍，這只是——還沒有恢復正常。正如我之前所說，再給我們一個季度，我們會給你另一個意見。

But again, I'd be surprised if there was any drastic movement. And again, it comes back to the new customer mix in the existing customer mix. And new will go down faster most likely, just like we saw in Q1.

但是，如果出現任何劇烈變動，我會感到驚訝。再次，它又回到了現有客戶組合中的新客戶組合。而且新品的銷售下降速度很可能會更快，就像我們在第一季看到的那樣。

And just on the new business, by the way, 680 new logos. But on a percent of ACV, new business was actually up from Q4. So it was better than Q3. It was better than Q4. In -- I'm sorry, in Q1. So we saw some encouraging signs, anyway, as far as new customer ACV as a percent of total going up a little bit quarter-over-quarter, too. So that's just a side note there. But that's kind of the view.

順便說一下，光是在新業務方面就有 680 個新標誌。但從 ACV 的百分比來看，新業務實際上比第四季有所上升。所以它比第三季更好。這比第四季要好。在——抱歉，在第一季。因此，我們看到了一些令人鼓舞的跡象，就新客戶 ACV 佔總數的百分比而言，環比也略有上升。這只是附註而已。但這只是一種觀點。

And with that last question, that's all the time we have left for today. This concludes today's earnings call. Thank you very much for your participation, and you may now disconnect.

最後一個問題問完了，今天我們的時間就到此為止了。今天的收益電話會議到此結束。非常感謝您的參與，您現在可以斷開連接了。