Rapid7 Inc (RPD) 2023 Q4 法說會逐字稿

Good afternoon. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Rapid7 fourth-quarter earnings conference call. (Operator Instructions)

午安.我叫克里斯塔，今天我將擔任你們的會議接線生。此時此刻，我歡迎大家參加Rapid7第四季財報電話會議。（操作員說明）

Thank you. I would now like to turn the conference over to Elizabeth Chwalk, Director of Investor Relations. Elizabeth, you may begin.

謝謝。我現在想將會議交給投資者關係總監伊麗莎白·查沃克 (Elizabeth Chwalk)。伊麗莎白，你可以開始了。

Thank you, operator, and good afternoon, everyone. We appreciate you joining us today to discuss Rapid7's fourth-quarter and full-year 2023 financial and operating results, in addition to our financial outlook for the first quarter and full fiscal year 2024. With me on the call today are Corey Thomas, our CFO; and Tim Adams, our CFO.

謝謝接線員，大家下午好。感謝您今天加入我們討論 Rapid7 的第四季度和 2023 年全年財務和營運業績，以及我們對 2024 年第一季和整個財年的財務展望。今天與我一起參加電話會議的是我們的財務長 Corey Thomas；和我們的財務長 Tim Adams。

We have distributed our earnings press release over the wire, and it is now posted on our website at investors.rapid7.com, along with the updated company presentation and financial metrics file. This call is being broadcast live via webcast. And following the call, an audio replay will be available at investors.rapid7.com.

我們已經透過網路分發了我們的收益新聞稿，現在它與更新的公司演示和財務指標文件一起發佈在我們的網站 Investors.rapid7.com 上。該電話會議正在透過網路直播進行直播。電話會議結束後，將在 Investors.rapid7.com 上提供音訊重播。

During this call, we may make statements related to our business that are considered forward-looking under federal securities laws. These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and includes statements related to the company's positioning strategy, business plans, restructuring plan, and financial guidance for the first quarter and full year 2024, and the assumptions underlying such goals and guidance.

在這次電話會議中，我們可能會發表與我們的業務相關的聲明，這些聲明根據聯邦證券法被視為前瞻性聲明。這些聲明是根據 1995 年《私人證券訴訟改革法案》的安全港條款做出的，包括與公司定位策略、業務計劃、重組計劃和 2024 年第一季和全年財務指導相關的聲明，以及假設這些目標和指導的基礎。

These forward-looking statements are based on our current expectations and beliefs and on information currently available to us. Actual outcomes and results may differ materially from the future results expressed or implied in these statements due to a number of risks and uncertainties, including those contained in our most recent quarterly report on Form 10-Q filed on November 6, 2023, and in the subsequent reports that we file with the SEC. The information provided on this conference call should be considered in light of such risk.

這些前瞻性陳述是基於我們目前的期望和信念以及我們目前可獲得的資訊。由於存在許多風險和不確定性，包括我們於 2023 年 11 月 6 日提交的最新季度報告 10-Q 表格中所包含的風險和不確定性，以及在我們向 SEC 提交的後續報告。應根據此類風險考慮本次電話會議中提供的資訊。

Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements, and reported results should not be considered as an indication of future performance. Rapid7 does not assume any obligation to update the information presented on this conference call, except to the extent required by applicable law.

實際結果和某些事件的時間可能與此類前瞻性陳述預測或暗示的結果或時間有重大差異，且報告的結果不應被視為未來績效的指標。Rapid7 不承擔任何更新本次電話會議中提供的資訊的義務，除非適用法律要求。

Our commentary today will primarily be in non-GAAP terms. And reconciliations between our historical GAAP and non-GAAP results can be found in today's earnings press release and on our website at investors.rapid7.com. At times, in our prepared remarks or in responses to your questions, we may offer incremental metrics to provide greater insight into the dynamics of our business or our quarterly results. Please be advised that this additional detail may be one time in nature, and we may or may not update these metrics in the future.

我們今天的評論將主要採用非公認會計準則術語。我們的歷史 GAAP 和非 GAAP 業績之間的調節可以在今天的收益新聞稿和我們的網站 Investors.rapid7.com 上找到。有時，當我們準備好的評論或回答您的問題時，我們可能會提供增量指標，以便更深入地了解我們的業務動態或季度業績。請注意，這項附加詳細資訊本質上可能是一次性的，我們將來可能會也可能不會更新這些指標。

With that, I'd like to turn the call over to our CEO, Corey Thomas. Corey?

說到這裡，我想將電話轉給我們的執行長科里·托馬斯 (Corey Thomas)。科里？

Good afternoon, and thank you to everyone for joining us on today's call. Rapid7 had a strong close to 2023, ended the year with $806 million in ARR, growing 13% over the prior year, while delivering revenue, operating income and free cash flow above our guided ranges.

下午好，感謝大家參加今天的電話會議。Rapid7 接近 2023 年表現強勁，年終 ARR 為 8.06 億美元，比上年增長 13%，同時收入、營業收入和自由現金流均高於我們的指導範圍。

Sustained customer demand for our platform offerings, anchored by our detection and response in cloud security solutions, and improvements in execution supported a strong top-line finish to the year. At the same time, our focus on operating efficiency and streamlining our cost structure drove $84 million of free cash flow in the year, exceeding our target and reflecting nearly 500 basis points of free cash flow margin expansion over the prior year.

客戶對我們平台產品的持續需求，以我們雲端安全解決方案的檢測和回應為基礎，以及執行方面的改進，支撐了今年強勁的營收。同時，我們對營運效率和精簡成本結構的關注推動了今年自由現金流達 8,400 萬美元，超出了我們的目標，反映出自由現金流利潤率比上一年擴大了近 500 個基點。

As we look back at the last year, there are a few highlights that stand out. First, we continue to drive product innovation across our Insight platform. We further elevated our market-leading capabilities and our compelling customer value proposition with advancements in areas like AI-driven cloud anomaly detection. We exited the year with a scale security operations platform that extends over the fragmented attack surface, covering strategic workloads across detection response, cloud-native security or CNAPP in vulnerability management. Secondly, our sales force successfully reoriented towards our platform consolidation solutions to meet customers' most pressing needs, while navigating larger and longer deal cycles with conversion rates that improved as the year went on.

回顧過去的一年，有一些亮點值得關注。首先，我們持續推動 Insight 平台的產品創新。透過人工智慧驅動的雲端異常檢測等領域的進步，我們進一步提升了我們的市場領先能力和令人信服的客戶價值主張。我們在這一年結束時推出了一個規模化的安全營運平台，涵蓋了分散的攻擊面，涵蓋了跨檢測響應、雲端原生安全或漏洞管理中的 CNAPP 的戰略工作負載。其次，我們的銷售團隊成功地重新調整了我們的平台整合解決方案，以滿足客戶最緊迫的需求，同時應對更大、更長的交易週期，並且隨著時間的推移，轉換率不斷提高。

Our package offerings gained steady traction throughout 2023 and now constitute roughly $100 million in ARR, driven by healthy contribution for both landing new customers and upgrading existing customers. We have reflected the deal size and conversion dynamics of our growing package mix into our forward expectations for seasonality, given the ongoing success of our consolidation value proposition.

我們的套餐產品在 2023 年全年獲得了穩定的關注，在吸引新客戶和升級現有客戶方面做出的健康貢獻的推動下，目前的 ARR 約為 1 億美元。鑑於我們整合價值主張的持續成功，我們已將不斷增長的一攬子組合的交易規模和轉換動態反映到我們對季節性的前瞻性預期中。

And lastly, we rightsized our cost structure to build a foundation for efficient growth. This was a critical initial step that positions us to be able to drive efficient growth in our business over time.

最後，我們調整了成本結構，為高效率成長奠定了基礎。這是關鍵的第一步，使我們能夠隨著時間的推移推動業務的高效成長。

A great example of our progress in 2023 is illustrated by a new customer win in the fourth quarter. A publicly traded media company with a maturing security program was extensively evaluating new solutions and looking to consolidate multiple vendors across their security operation center or SOC. The large and complex nature of the company's digital footprint and their lean team, combined with Rapid7's ability to work better together with an endpoint provider, made us stand out against legacy SIEM competitors.

第四季贏得的新客戶就是我們在 2023 年取得進展的一個很好的例子。一家擁有成熟安全計畫的上市媒體公司正在廣泛評估新的解決方案，並希望在其安全營運中心或 SOC 中整合多個供應商。該公司數位足蹟的龐大和複雜性及其精幹團隊，再加上 Rapid7 與端點提供商更好地合作的能力，使我們在傳統 SIEM 競爭對手中脫穎而出。

This customer chose Rapid7 for three main reasons: the breadth of our cloud-native platform; our ability to consolidate critical capabilities across multiple SecOps categories, including SIEM or XDR and VM; and lastly, our ease of adoption and integrations with other security vendors. We displaced a competitor with our managed direct complete consolidated offering, securing a multi-year deal with over $0.5 million in ARR.

這位客戶選擇 Rapid7 的三個主要原因：我們的雲端原生平台的廣度；我們有能力整合多個 SecOps 類別的關鍵功能，包括 SIEM 或 XDR 和 VM；最後，我們易於採用以及與其他安全供應商整合。我們透過託管的直接完整整合產品取代了競爭對手，獲得了年收入超過 50 萬美元的多年期協議。

We believe the progress we made in 2023 sets us up well to win market share, accelerate growth, and be a leading security platform consolidator in the next few years. Looking forward, we see 2024 as a critical year to accelerate our platform differentiation by driving focus investments to lead in mainstream cloud security adoption, drive security productivity with AI, extend our service and partner ecosystem to deliver sustainable and efficient growth going forward.

我們相信，我們在 2023 年取得的進展將使我們能夠在未來幾年贏得市場份額、加速成長並成為領先的安全平台整合者。展望未來，我們認為2024 年是加速我們平台差異化的關鍵一年，我們將推動重點投資，引領主流雲端安全採用，利用人工智慧提高安全生產力，擴展我們的服務和合作夥伴生態系統，以實現未來可持續、高效的成長。

We are delivering this strategic execution against a backdrop of stable yet noisy demand environment. Amidst this backdrop, we are leaning into our areas of strategic focus and building our security operations platform for acceleration. We're investing and innovating in areas where we see substantial demand over a multiyear horizon and where there's a clear opportunity to elevate our customer value proposition and the services ecosystem that supports it. We're making deliberate investments to build the strongest managed SOC ecosystem and deliver a leading data platform that contextualize this risk across a fragmented complex environment.

我們是在穩定而吵雜的需求環境背景下實施這項策略的。在此背景下，我們正在專注於我們的策略重點領域，並建立我們的安全營運平台以加速發展。我們正在對一些領域進行投資和創新，這些領域我們認為在多年內有大量需求，並且有明顯的機會來提升我們的客戶價值主張和支持它的服務生態系統。我們正在進行深思熟慮的投資，以建立最強大的託管 SOC 生態系統，並提供領先的數據平台，在分散的複雜環境中將這種風險置於背景中。

Here are the four key areas where we are focused on and invested in as we build our leadership position in the extended SOC. The first is on integrating and contextualizing more data across the digital attack surface, particularly as security teams are managing data across traditional and cloud environments. Either consolidation of data on our Insight platform allows customers to apply the best operational context to their security programs. The breadth and quality of our platform features are strong, and our internal SOC has years of expertise and data to better understand the attacker. In 2024, we're focused on elevating the customer experience with a better, more integrated Rapid7 technology platform to support fragmented IT environments.

以下是我們在擴展 SOC 中建立領導地位時重點關注和投資的四個關鍵領域。第一個是跨數位攻擊面整合和關聯更多數據，特別是當安全團隊跨傳統和雲端環境管理數據時。無論是在我們的 Insight 平台上整合數據，客戶都可以將最佳的營運環境應用到他們的安全計畫中。我們平台功能的廣度和品質都很強大，我們的內部 SOC 擁有多年的專業知識和數據，可以更好地了解攻擊者。2024 年，我們致力於透過更好、更整合的 Rapid7 技術平台來提升客戶體驗，以支援分散的 IT 環境。

The second area of investment will be around driving cloud security adoption in mainstream enterprises. As security programs mature, lean teams with significant resource constraints increasingly need to secure their cloud environments. We believe the majority of cloud security buyers in the coming years will look different from the typical buyer we've historically seen.

第二個投資領域將圍繞著推動主流企業採用雲端安全。隨著安全計畫的成熟，資源受限的精實團隊越來越需要保護其雲端環境。我們相信，未來幾年大多數雲端安全買家將與我們歷史上見過的典型買家有所不同。

We are focused on delivering CNAPP solutions that are simple to use, affordable, and integrated into our broader security operations platform. And our packaging and distribution is being finetuned for our mainstream enterprise customers. We're also extending our capabilities building on the solid traction in cloud security posture management to be a leader in cloud detection and response.

我們專注於提供易於使用、價格實惠且整合到我們更廣泛的安全營運平台中的 CNAPP 解決方案。我們的包裝和分銷正在針對主流企業客戶進行微調。我們也在雲端安全態勢管理的堅實基礎上擴展我們的能力，成為雲端偵測和回應領域的領導者。

The third area of focus is the use of AI for improving security operations. Our AI-powered SOC continues to drive our leadership in managed detection and response, one of the areas of highest growth in customer demand within security operations. We are focused on use of machine learning and large language models or LLMs to improve our SecOps coverage and detections in multiple areas, including anomalous activity monitoring, analyst workflows, and quality assurance.

第三個重點領域是利用人工智慧改善安全營運。我們的人工智慧驅動的 SOC 繼續推動我們在託管檢測和回應方面的領導地位，這是安全營運中客戶需求成長最快的領域之一。我們專注於使用機器學習和大型語言模型或法學碩士來提高我們在多個領域的 SecOps 覆蓋範圍和檢測，包括異常活動監控、分析師工作流程和品質保證。

In addition, we're working on leveraging LLMs to drive efficiency and accelerate response times. We are building and refining these capabilities inside our SOC and managed delivery ecosystem to help get product innovations to market faster. And we'll continue to expand on these AI capabilities with a focus on productivity and efficiency, all while safeguarding our customers' data. Lastly, we will be investing in our services and partner ecosystem with an emphasis on growing key channel relationships, accelerating our MSSP partnerships and increasingly engaging with customers in marketplaces like AWS.

此外，我們正在努力利用法學碩士來提高效率並加快回應時間。我們正在我們的 SOC 和託管交付生態系統中建立和完善這些功能，以幫助將產品創新更快地推向市場。我們將繼續擴展這些人工智慧功能，並專注於生產力和效率，同時保護客戶的資料。最後，我們將投資於我們的服務和合作夥伴生態系統，重點是發展關鍵通路關係、加速我們的 MSSP 合作夥伴關係以及更多地與 AWS 等市場中的客戶互動。

As we look out at the rest of the year, Rapid7 has a compelling opportunity to build better, more connected customer experiences across our platform. We believe that the foundational work we're doing will position us to drive market share gains and higher durable growth over the medium to long term. At the same time, we are focused on optimizing for efficient growth and remain laser-focused on scaling free cash flow. Consistent with our previous commentary, we expect to generate at least $160 million of free cash flow in 2024.

展望今年剩餘時間，Rapid7 有一個絕佳的機會在我們的平台上打造更好、更互聯的客戶體驗。我們相信，我們正在做的基礎工作將使我們能夠在中長期推動市場份額的成長和更高的持久成長。同時，我們專注於優化以實現高效成長，並繼續專注於擴大自由現金流。與我們先前的評論一致，我們預計 2024 年將產生至少 1.6 億美元的自由現金流。

Looking towards our overall financial outlook for the year, as we processed a healthy finish to 2023, balanced with our expectation for a continuation of the recent stable demand backdrop, we remain focused on providing a high confidence range for our 2024 financial outlook, which Tim will detail in his remarks.

展望今年的整體財務前景，我們在 2023 年實現了健康的收官之際，與我們對近期穩定需求背景持續的預期相平衡，我們仍然專注於為 2024 年的財務前景提供高信心範圍，蒂姆將在他的演講中詳細說明。

We are focused on making deliberate platform and services investments to reaccelerate and drive durable, long-term growth. We're optimizing around our technology and distribution channels, which we believe will position us for the best multi-year growth outlook.

我們專注於進行深思熟慮的平台和服務投資，以重新加速並推動持久的長期成長。我們正在圍繞我們的技術和分銷管道進行優化，我們相信這將使我們獲得最佳的多年成長前景。

With that, thank you for joining us on the call today. I'll now turn the call over to our CFO, Tim Adams, to share additional detail on our financial results and outlook.

感謝您今天加入我們的電話會議。我現在將把電話轉給我們的財務長蒂姆·亞當斯，分享有關我們財務業績和前景的更多細節。

Thank you, Corey. Good afternoon, everyone, and thank you for joining us on the call today. Before I turn to the results, a quick reminder that except for revenue, all financial results we will discuss today are non-GAAP financial measures unless otherwise stated. Additionally, reconciliations between our GAAP and non-GAAP results can be found in our earnings press release.

謝謝你，科里。大家下午好，感謝您今天加入我們的電話會議。在我討論結果之前，先快速提醒一下，除了收入之外，我們今天討論的所有財務結果都是非公認會計準則財務指標，除非另有說明。此外，我們的公認會計原則和非公認會計原則結果之間的調節可以在我們的收益新聞稿中找到。

Rapid7 ended the year with $806 million in ARR, growing 13% over the prior year. Growth was led by healthy customer demand for our integrated security operations platform, and supported by expansion and innovation in our detection and response and cloud security capabilities. We saw a strong traction as our consolidated offerings ramped throughout the year, with improving sales conversion rates as the combined value and efficacy of our solutions increasingly resonate with mainstream enterprise customers.

Rapid7 年底的 ARR 為 8.06 億美元，比上年增長 13%。客戶對我們的整合安全營運平台的健康需求帶動了成長，並得到了我們的檢測和回應以及雲端安全功能的擴展和創新的支持。隨著我們的整合產品全年不斷增加，我們看到了強勁的吸引力，隨著我們解決方案的綜合價值和功效日益與主流企業客戶產生共鳴，銷售轉換率也不斷提高。

ASPs increased as we benefited from larger deals tied to our package offerings. And we saw roughly balanced contributions from new and existing customers throughout the year, with particular strength in cross-selling to our existing base. These dynamics speak to the effectiveness of our technology and our strong value proposition as customers consolidate across our Insight platform.

由於我們受益於與我們的套餐產品相關的更大交易，平均售價有所增加。全年我們看到新客戶和現有客戶的貢獻大致平衡，尤其是對我們現有客戶群的交叉銷售。隨著客戶在我們的 Insight 平台上進行整合，這些動態證明了我們技術的有效性以及我們強大的價值主張。

Our customer base grew 5% year over year to end 2023 with over 11,500 customers globally. ARR per customer grew 7% over the prior year to approximately $70,000 at year end. Full-year revenue of $778 million grew 14% over the prior year and exceeded the high end of our guidance range. Product revenue also grew 14% over the prior year to a full-year total of $740 million.

截至 2023 年底，我們的客戶群年增 5%，在全球擁有超過 11,500 名客戶。截至年底，每位客戶的 ARR 比上一年增長了 7%，達到約 70,000 美元。全年收入為 7.78 億美元，比上年增長 14%，超出了我們指導範圍的上限。產品收入也比上年增長 14%，達到 7.4 億美元。

Our commitment to profitable growth, including the changes we made to our cost structure in August, drove meaningful expansion in operating income and free cash flow, and we exceeded our guided ranges on both metrics for the year. We delivered $102 million of operating income, which represents a full-year margin expansion of over 800 basis points. And we generated $84 million of free cash flow, which reflects an 11% free cash flow margin for the year.

我們對獲利成長的承諾，包括我們在八月對成本結構所做的改變，推動了營業收入和自由現金流的有意義的擴張，並且我們今年在這兩個指標上都超出了指導範圍。我們實現了 1.02 億美元的營業收入，這意味著全年利潤率成長了 800 多個基點。我們產生了 8,400 萬美元的自由現金流，這反映了今年 11% 的自由現金流利潤率。

Now turning to our fourth-quarter results. Total Q4 revenue of $205 million was up 11% over the prior year and above the high end of our guidance. Product revenue grew 13% year over year to $195 million, while professional services declined 10% to $10 million as we actively deemphasize certain lower-value services.

現在轉向我們的第四季業績。第四季總收入為 2.05 億美元，比上年增長 11%，高於我們指導的上限。產品收入年增 13% 至 1.95 億美元，而專業服務收入下降 10% 至 1,000 萬美元，因為我們積極淡化某些低價值服務。

Our international revenue grew 21% over the prior year and represented 23% of total revenue for the fourth quarter, while North America revenue grew 9% and represented 77% of total revenue. Product gross margin was 76% in the quarter, and total gross margin for the quarter was 74%, both in line with the prior year.

我們的國際營收比上年成長 21%，佔第四季總營收的 23%，而北美營收成長 9%，佔總營收的 77%。本季產品毛利率為76%，本季總毛利率為74%，均與去年同期持平。

Operating expenses in the fourth quarter reflect changes to the cost structure starting in the third quarter of 2023. Sales and marketing expense declined 5% year over year and represented 32% of revenue, down from 38% in the prior year. R&D expense was slightly lower than the prior year and represented 16% of revenue down from 18%, while G&A represented 6% of revenue, down from 8% in the prior year.

第四季的營運支出反映了自 2023 年第三季開始的成本結構的變化。銷售和行銷費用年減 5%，佔營收的 32%，低於前一年的 38%。研發費用略低於上年，佔營收的 16%，從上年的 18% 下降，而 G&A 佔營收的 6%，從上年的 8% 下降。

All in all, fourth-quarter operating income of $41 million was better than our guidance and represented a 20% operating margin exiting the year. Our adjusted EBITDA was $48 million in the quarter, and net income per share was $0.72.

總而言之，第四季營業收入為 4,100 萬美元，優於我們的指導，全年營業利潤率為 20%。本季調整後的 EBITDA 為 4,800 萬美元，每股淨利為 0.72 美元。

Moving to our balance sheet and cash flow. We ended the year with cash, cash equivalents, and investments of $439 million compared to $373 million at the end of Q3 2023. We delivered better-than-expected fourth quarter cash flow from operations on higher operating profitability, which helped drive over $60 million of free cash flow in the quarter.

轉向我們的資產負債表和現金流。截至 2023 年第三季末，我們的現金、現金等價物和投資為 4.39 億美元，而 2023 年第三季末為 3.73 億美元。由於營運獲利能力提高，我們第四季的營運現金流好於預期，這有助於推動本季超過 6,000 萬美元的自由現金流。

This brings us to our guidance for this year. As we enter 2024, we assume a relatively stable macro economic backdrop and customer spending environment, consistent with the back half of 2023. This assumption informs our high confidence growth outlook for ARR this year.

這給我們帶來了今年的指導。進入 2024 年，我們假設宏觀經濟背景和客戶支出環境相對穩定，與 2023 年下半年一致。這一假設使我們對今年 ARR 的成長前景充滿信心。

For the full year 2024, we expect ending total ARR of $885 million to $895 million, which represents growth of 10% to 11%. As Corey shared earlier, this range reflects our strategy to focus this year on deliberate investments for more efficient, durable, medium- to long-term growth. In terms of seasonality, as deal sizes get larger and reflect a scaling contribution from the success of our platform and package deals, our new ARR linearity assumptions for the full year reflect slightly stronger seasonality with a naturally lower contribution in the first quarter.

對於 2024 年全年，我們預計最終總 ARR 為 8.85 億至 8.95 億美元，成長 10% 至 11%。正如科里早些時候分享的那樣，這一範圍反映了我們今年的戰略重點是進行深思熟慮的投資，以實現更有效率、持久的中長期成長。就季節性而言，隨著交易規模變大，並反映出我們平台和一攬子交易的成功所帶來的規模貢獻，我們對全年的新ARR 線性假設反映出季節性稍強，第一季度的貢獻自然較低。

Turning to the income statement. We expect total revenue for the full year to be in the range of $848 million to $856 million, representing growth of 9% to 10%. As we continue to focus on the strategic areas of our business, we expect product revenues to grow slightly faster than this range, offset in part by professional services revenue, which we expect to decline to approximately $30 million for the full year.

轉向損益表。我們預計全年總收入將在 8.48 億美元至 8.56 億美元之間，成長 9% 至 10%。隨著我們繼續專注於業務的策略領域，我們預期產品收入的成長速度將略快於此範圍，部分被專業服務收入所抵消，我們預計全年專業服務收入將下降至約 3,000 萬美元。

On profitability measures, we anticipate strong growth in operating income, which we expect to be in the range of $150 million to $158 million for the full year, implying operating margin expansion of roughly 500 basis points. We expect net income per share to be in the range of $2.10 to $2.21 based on an estimated 75.1 million diluted weighted average shares outstanding.

在獲利能力方面，我們預計營業收入將強勁成長，預計全年營業收入將在 1.5 億美元至 1.58 億美元之間，這意味著營業利潤率將擴大約 500 個基點。根據估計的 7,510 萬股稀釋加權平均流通股，我們預計每股淨利潤將在 2.10 美元至 2.21 美元之間。

For full year 2024, we expect to generate at least $160 million in free cash flow. This implies roughly 800 basis points of free cash flow margin expansion.

2024 年全年，我們預計將產生至少 1.6 億美元的自由現金流。這意味著自由現金流利潤率擴大約 800 個基點。

In terms of free cash flow seasonality, we expect a modest contribution in the first quarter, driven by a number of cash expenses that are concentrated early in the year, including the FY23 bonus payments and timing of tax payments. We would then anticipate a notable ramp in free cash flow in the second quarter.

就自由現金流季節性而言，我們預計第一季的貢獻將適度，這是由集中在今年年初的一些現金支出推動的，包括 2023 財年獎金支付和納稅時間。我們預計第二季自由現金流將顯著增加。

Moving to quarterly guidance. For the first quarter of 2024, we expect total revenue in the range of $203 million to $205 million, representing year-over-year growth of 11% to 12%. We expect non-GAAP operating income for the first quarter in the range of $37 million to $39 million, and non-GAAP net income per share of $0.52 to $0.55, which is based on 74.4 million diluted weighted average shares outstanding.

轉向季度指引。2024 年第一季度，我們預計總營收在 2.03 億美元至 2.05 億美元之間，年增 11% 至 12%。我們預計第一季非GAAP 營業收入將在3,700 萬美元至3,900 萬美元之間，非GAAP 每股淨利潤將在0.52 美元至0.55 美元之間，這是基於7,440 萬股稀釋加權平均流通股計算的。

We made important progress in 2023 across product innovation, go-to-market improvements, and rightsizing our cost structure. This year, we have a compelling opportunity to build on that foundation to position ourselves for reacceleration and share gains in the next few years.

2023 年，我們在產品創新、上市改進和成本結構調整方面取得了重要進展。今年，我們有一個令人信服的機會，可以在此基礎上再接再厲，為未來幾年的重新加速和分享收益做好準備。

Thank you for taking the time to join us on the call today. And now we will open the call for questions. Operator?

感謝您今天抽空參加我們的電話會議。現在我們將開始提問。操作員？

(Operator Instructions) Hamza Fodderwala, Morgan Stanley.

（操作員指令）Hamza Fodderwala，摩根士丹利。

(technical difficulty) Seems like a lot of opportunity for consolidation within security operations among your customer base. I am curious can you talk a little bit more about how you're working with some of your strategic services partners to help drive some of that consolidation, and how you are offering perhaps some of your own services as well to augment and complement what your partners are offering too?

（技術難度）似乎有許多在客戶群中整合安全操作的機會。我很好奇您能否多談談您如何與一些策略服務合作夥伴合作來幫助推動一些整合，以及您如何提供一些您自己的服務來增強和補充您的服務合作夥伴也提供？

Yeah, it's a great point, Hamza. Most customers right now are trying to figure out how to deal with the twin factors of enhancing security programs that have to be improved. We talked about the security backlog demand, need for talent, need for projects and the fact that they have to do on a budget. And so one of the things that they're looking to do is to both consolidate their security programs, but to do it in a way to drive more efficiency. And that requires partners and talents on that.

是的，這是一個很好的觀點，哈姆札。目前大多數客戶都在試圖找出如何處理必須改進的增強安全程序的雙重因素。我們討論了安全積壓需求、人才需求、專案需求以及他們必須在預算範圍內完成的事實。因此，他們想要做的事情之一就是鞏固他們的安全計劃，但要以提高效率的方式來做。這需要合作夥伴和人才。

We are actively building out our managed services partner ecosystem -- our partner ecosystem in general, which is sort of like a big area of focus, but also partners that can actually provide cost-effective services to our customers that allow them to upgrade their security programs along the way. We are incredibly attractive to partners because we allow them to actually look at the landscape across the SIEM and XDR as well as the cloud security and the traditional vulnerability management. So they can look at both the overall attack surface and risk side of the equation as well as the detection and response side of the equation.

我們正在積沿途的節目。我們對合作夥伴具有極大的吸引力，因為我們讓他們實際了解 SIEM 和 XDR 以及雲端安全和傳統漏洞管理的情況。因此，他們可以查看等式的整體攻擊面和風險方面，以及等式的偵測和回應方面。

And so that's attractive to partners. We're also working on some this near and dear to our partners' heart is the ability to process more and more of the alerts that come in from other security products. And so I would just say this is a very big focus that we have both with our partners and with ourselves. We do have services offering and NDR services internally inside of Rapid7. But our focus is an ecosystem approach actually tackling this problem that customers are demanding. And thank you so much, Hamza.

這對合作夥伴很有吸引力。我們也致力於開發一些與合作夥伴密切相關的功能，即處理越來越多來自其他安全產品的警報的能力。所以我想說，這是我們與合作夥伴和我們自己共同關注的一個非常重要的焦點。我們確實在 Rapid7 內部提供服務和 NDR 服務。但我們的重點是一種生態系統方法，能夠真正解決客戶所要求的這個問題。非常感謝你，哈姆札。

Matt Hedberg, RBC Capital Markets.

馬特‧赫德伯格，加拿大皇家銀行資本市場部。

Hi, this is [Anusha] on for Matt Hedberg. Thanks for taking my questions. Can you talk a little bit more about the assumptions embedded in the 2024 guidance as it relates to the conversion rates and that new pipeline as well as the macro environment?

大家好，我是馬特·赫德伯格的 [阿努莎]。感謝您回答我的問題。您能否多談談 2024 年指導中包含的與轉換率、新管道以及宏觀環境相關的假設？

Yes. So at a high level, I have to say we think the macro environment is fairly stable. And we are optimistic. What I'll remind you of is that as we did our restructuring last year, we are really oriented around how we actually deliver the best long-term free cash flow growth, which is the intersection of ARR growth, which, again, we want to actually drive share and win share over the medium term and be a share leader in the ARR growth, and as well as margin expansion. Those are the two factors that we see as sort of driving the overall free cash flow growth strategy.

是的。因此，從高水準來看，我不得不說，我們認為宏觀環境相當穩定。我們很樂觀。我要提醒您的是，正如我們去年進行的重組一樣，我們真正關注的是如何真正實現最佳的長期自由現金流增長，這是 ARR 增長的交集，我們再次希望在中期內真正推動市場份額並贏得市場份額，並在ARR 成長和利潤率擴張方面成為市場領導者。我們認為這是推動整體自由現金流成長策略的兩個因素。

As we actually think about that, to your question about how do we actually think about guidance and alignment, we're really on that strategy that we outlined in the second half of the year of saying setting ourselves up to make sure that we have very, very high confidence and conviction that we can hit targets that are outlined, but also have a setup so that we can actually exceed one or more of the targets.

當我們實際思考這一點時，對於您關於我們實際上如何考慮指導和協調的問題，我們確實採用了我們在今年下半年概述的策略，即我們要做好準備，以確保我們有非常好的目標。 ，非常有信心和信念，我們可以實現所概述的目標，但也有一個設置，以便我們實際上可以超越一個或多個目標。

In this market where the market is a little bit noisy, of course, we would love to actually hit and focus on ARR as a dominant approach to growth. But we also don't want to be hamstrung by that. Our take is that if the market gets a little bit incrementally noisy, then we can actually focus on margin expansion. And that's just a fine way to actually go and drive free cash flow expansion.

當然，在這個市場有點吵雜的市場中，我們希望真正實現並專注於 ARR 作為成長的主要方法。但我們也不希望因此而受到阻礙。我們的看法是，如果市場變得越來越吵雜，那麼我們實際上可以專注於利潤率擴張。這只是真正推動自由現金流擴張的好方法。

So we really think about the guidance being a setup to make sure that we can both hit, and we actually have to set up to actually deliver better under different circumstances with the trade-off between margin expansion and free cash flow growth. We always go and want to go and take share, but we don't control the market.

因此，我們確實認為該指導方針是確保我們都能實現目標的一種設置，而且我們實際上必須設置在不同情況下實際交付更好的產品，並在利潤率擴張和自由現金流增長之間進行權衡。我們總是去並且想要去佔領份額，但我們無法控制市場。

Saket Kalia, Barclays.

薩基特·卡利亞，巴克萊銀行。

Okay, great. Hey, guys. Thanks for taking my questions here. Tim, my first one for you. Great expense control for next year to drive that free cash flow guide. Maybe the question is, how are you thinking about billings growth as part of that free cash flow equation? I know ARR was the focus, but -- and there seems to be a lot of confidence there. But any thoughts on how to model billings vis-à-vis that ARR guide as we think about those contributors to free cash flow?

好的，太好了。大家好。感謝您在這裡提出我的問題。提姆，我給你的第一個。明年將大力控制開支，以推動自由現金流指南。也許問題是，您如何看待比林斯成長作為自由現金流方程式的一部分？我知道 ARR 是焦點，但——而且那裡似乎有很大的信心。但是，當我們考慮自由現金流的貢獻者時，對如何根據 ARR 指南對帳單進行建模有什麼想法嗎？

Yeah, hey, Saket. Thanks for the question. Generally, you would think of billings and ARR growth rates being very, very similar. A minor exception for 2024, which I've mentioned in my prepared comments, our professional services revenue. We expect that to be down modestly in '24 compared to '23. So that gives you a minor headwind to billings relative to ARR growth, but they're pretty tightly aligned with that one exception.

是的，嘿，薩凱特。謝謝你的提問。一般來說，您會認為帳單和 ARR 成長率非常非常相似。2024 年有一個小例外，我在準備好的評論中提到了我們的專業服務收入。我們預計 24 年這一數字將比 23 年略有下降。因此，相對於 ARR 成長，這給您帶來了較小的帳單阻力，但它們與這一例外情況非常緊密地一致。

Got it. Corey, if I could squeeze in a follow-up for you. Really balanced growth in ARR here in '23 between customer growth and ARR per customer. But it's that latter one I want to focus on, just the ARR per customer and just the success and scale that you're seeing with packages. Maybe the question is what are some of the non-VM products that you're finding customers are using the most? Obviously, they get offered a lot of the products as part of those packages. Which of the products that you find that they're using the most as they adopt those packages?

知道了。科里，我能否為你擠出一個後續行動。23 年，客戶成長和每位客戶的 ARR 之間的 ARR 成長確實達到了平衡。但我想重點關注的是後一個，即每個客戶的 ARR 以及您在套餐中看到的成功和規模。也許問題是您發現客戶最常使用的一些非虛擬機器產品是什麼？顯然，他們獲得了許多產品作為這些套餐的一部分。您發現他們在採用這些軟體包時使用最多的是哪些產品？

Yeah, look. The big driver and one of the biggest drivers, I would just say, is the detection and response, which is -- it was shared last year. It is a scaled business. It has very healthy growth rates, but it also has a lot of late customer demands.

是的，看。我只想說，最大的驅動因素和最大的驅動因素之一是檢測和回應，這是去年分享的。這是一項規模化的業務。它具有非常健康的成長率，但也有很多後期客戶需求。

It is a must-have. We've always said that's what we actually liked about that business. It's a must-do, must-have business. People have to be able to monitor attacks in their environments. That's not saying that the exposure or attack surface management is not valuable. We think it's incredibly valuable. In fact, we'll continue to focus on growth.

這是必備的。我們總是說這就是我們真正喜歡這項業務的地方。這是一項必須做、必須做的生意。人們必須能夠監控其環境中的攻擊。這並不是說暴露或攻擊面管理沒有價值。我們認為它非常有價值。事實上，我們將繼續關注成長。

In some ways, though, our strategy is, frankly, to be a market adoption, a unit share leader in the vulnerability exposure, attack surface management areas because that really sets us up well to make sure that we're providing value on the attack surface response to our customers overall. But if you look at from a raw dollars' perspective, it's clearly detection response that's generating the dollars, even though we're focused on really having the product distribution on our overall risk management and exposure management solutions.

但在某些方面，坦白說，我們的策略是成為市場採用者、漏洞暴露、攻擊面管理領域的單位份額領導者，因為這確實使我們能夠確保我們在攻擊中提供價值對我們客戶的總體反應。但如果你從原始美元的角度來看，很明顯，偵測回應正在產生美元，即使我們真正專注於在我們的整體風險管理和風險管理解決方案上進行產品分配。

Jonathan Ho, William Blair.

喬納森·何，威廉·布萊爾。

Hi. I just wanted to follow up on Saket's question and maybe delve a little bit deeper into your guidance for 2024. Is there a way for you to maybe break out for us what you expect at a high level or just directionally in terms of the growth rates for traditional VM detection and response as well as the cloud side of things as well? Thank you.

你好。我只是想跟進 Saket 的問題，也許更深入地了解您對 2024 年的指導。您是否可以透過某種方式向我們透露您對傳統虛擬機器檢測和回應以及雲端方面的成長率的高水準或定向預期？謝謝。

So thanks for the question. It's not really the way to break that out because, again, as we do the platform consolidation offerings, it's offering most of them. Like VM is a feature of every platform overall. What I would just say is, one way -- maybe the easiest way to actually think about it is that we have, I would just say, very reasonable, very, very high confidence growth in our guidance that's just anchored on, I would say, the trends that we're seeing continuing at very reasonable levels.

謝謝你的提問。這並不是真正解決這個問題的方法，因為當我們提供平台整合產品時，它提供了其中的大部分產品。就像 VM 一樣，它是每個平台的一個整體功能。我想說的是，一種方式 - 也許真正考慮這個問題的最簡單方法是，我想說，我們對我們的指導的信心增長非常合理，非常非常高，我想說，我們看到的趨勢繼續保持在非常合理的水平。

I actually think we actually have upsides. We actually take our cloud security solutions more mainstream. That's not something that we're factoring on for this year. It's something that we're looking at as a big growth driver over multiple years. We expect to see the same type of progress that we actually saw, which was solid over the course of the last year. We think our market in cloud security is a big one, but it's really like it goes from niche specialists to mainstream cloud security providers, and I talked a little bit about that earlier.

我實際上認為我們確實有優點。實際上，我們的雲端安全解決方案更加主流。這不是我們今年考慮的因素。我們將其視為多年來重要的成長動力。我們期望看到與我們實際看到的相同類型的進展，這在去年是堅實的。我們認為我們的雲端安全市場很大，但它實際上就像是從利基專家到主流雲端安全供應商，我之前談到過這一點。

But we see that as a big growth drop over multiple years. It could be upside to this year, without a doubt. I would just say the core linchpin is the continued progress that we see in detection and response. And we expect that to be fairly somewhat consistent. And we see upside from some of the other emerging areas, but they're not factored into our baseline assumptions.

但我們認為多年來成長大幅下降。毫無疑問，今年的情況可能會有所改善。我只想說核心關鍵是我們在檢測和回應方面看到的持續進展。我們預計這會相當一致。我們看到了其他一些新興領域的優勢，但它們沒有被納入我們的基準假設中。

When we think about -- to your question about the given guidance, we actually just really center the guidance on what we actually have seen, have visibility, have high confidence in. And this is something we're working on delivering that discloses into how we actually think about upside.

當我們思考你關於給定指導的問題時，我們實際上只是將指導集中在我們實際看到的、有可見性的、有高度信心的內容上。這是我們正在努力提供的東西，它揭示了我們如何真正思考積極的一面。

Corey, the only thing I would add, which you mentioned in your prepared comments, is we're really seeing the market adopt these packages and it's really resonating with customers. It's over $100 million of ARR, and they were introduced roughly about a year ago. So we're really starting to see that traction. And that gives you a larger ASP per customer.

科里，我唯一要補充的是，您在準備好的評論中提到，我們確實看到市場採用這些軟體包，並且確實引起了客戶的共鳴。ARR 超過 1 億美元，約一年前推出。所以我們真的開始看到這種吸引力。這將為您帶來更高的每位客戶平均售價。

Rob Owens, Piper Sandler.

羅伯歐文斯，派珀桑德勒。

Good evening and thanks for taking my question. Corey, I was hoping you could maybe drill down into that commentary about driving more cloud security in a mainstream environment and exactly what you're implying there. And number two for me is just around customer count and kind of looking at the 11,500. But obviously, you have seen declining customer counts over the last couple of years in terms of either net new or year-over-year growth, however you want to look at it.

晚上好，感謝您提出我的問題。Corey，我希望您能深入研究有關在主流環境中推動更多雲端安全性的評論以及您所暗示的內容。對我來說，第二個就是客戶數量，大約是 11,500 人。但顯然，無論您如何看待，過去幾年中無論是淨新增長還是同比增長，客戶數量都在下降。

What's really the catalyst to get that moving again? What's it going to take? Is it the partner network? Is it maturation of the sales force in terms of selling the platform? Just what's going to get that moving? Because it's not that big of a number, I guess, in the relative scheme of things.

真正推動這項進程的催化劑是什麼？需要什麼？是合作夥伴網路嗎？是銷售平台方面銷售團隊的成熟度嗎？到底什麼才能讓它動起來呢？我想，因為相對而言，這個數字並不是那麼大。

Yeah, I think both of those are very sort of like there. So on the first question -- by the way, Rob, what was your first question before I tackle the second one?

是的，我認為兩者都非常相似。那麼，關於第一個問題——順便說一句，羅布，在我解決第二個問題之前，你的第一個問題是什麼？

Mainstream cloud.

主流雲。

Yeah, mainstream cloud.

是的，主流雲。

Yeah. What's this mainstream cloud meaning exactly?

是的。這種主流雲究竟意味著什麼？

Yeah. So the way that we've seen the market so far, keep in mind, when we were starting doing cloud, we got direct access. And so we have a very healthy cloud business and a growing cloud business. We have not -- I was just being explicit -- is that we are accelerating our investment in the cloud, because what we've actually found is that the early adopters of cloud security technologies were cloud security specialist teams. They were special teams that were not the main security teams that did nothing but except cloud security, and they were very focused on that.

是的。因此，請記住，到目前為止我們看待市場的方式，當我們開始做雲端時，我們可以直接訪問。因此，我們擁有非常健康的雲端業務和不斷成長的雲端業務。我們並沒有——我只是明確地說——是我們正在加速對雲端的投資，因為我們實際上發現雲端安全技術的早期採用者是雲端安全專家團隊。他們是特殊團隊，不是主要的安全團隊，除了雲端安全之外什麼都不做，而且他們非常專注於此。

And we've been participating in that market. And you see people like the Wizes of the world doing quite well and something like that. What we actually see as we go out, though, if you think about like the -- when we think about the mainstream enterprise, think about that Russell 3000 and their property equivalent and all those other companies out there, those are folks that are not going to have like 5 to 10 people and stuff just for cloud security. They actually have to actually have security as part of their core vending. It has to be integrated in. It still has to be highly functional. It has to be accessible, easy to use. It has to deliver the key results. But it has to be in the context of their overall security operations program.

我們一直在參與這個市場。你會看到像世界上的智者這樣的人做得很好等等。然而，當我們走出去時，我們實際看到的是什麼，如果你想一想——當我們想到主流企業時，想想羅素 3000 指數和它們的房地產等價物以及所有其他公司，這些公司不是將有大約5 到10 名人員和人員專門負責雲端安全。他們實際上必須將安全性作為其核心自動販賣機的一部分。它必須被整合到。它仍然必須具有高功能性。它必須易於訪問、易於使用。它必須交付關鍵成果。但這必須在其整體安全營運計劃的背景下進行。

Lots of those customers have now adopted cloud security. We look at cloud security is a massively untouched market. A similar way, Rob, the way to think about it is that when we went into the SIEM market, originally, people are just like, well, that market's not going be around forever, and it's a little bit tapped. And we said, no, most SIEMs are only designed for very complex, large, complex enterprises. Most mainstream enterprises don't have a functional SIEM because they have not been designed for that ease of use, that mass market efficacy and efficiency.

許多客戶現在已經採用了雲端安全。我們認為雲端安全是一個尚未觸及的龐大市場。Rob，類似地，當我們進入 SIEM 市場時，人們最初的想法是，這個市場不會永遠存在，而且它已經被開發了一點。我們說，不，大多數 SIEM 只為非常複雜、大型、複雜的企業而設計。大多數主流企業沒有功能性的 SIEM，因為它們的設計並未考慮到易用性、大眾市場功效和效率。

We see the same dynamics in cloud. We view that as a largely untapped market. There are things that we actually are doing right now and investing in to actually allow very complicated things about how you assess risk environment, how do you do detection and response in cloud environments to actually be part of a mainstream security operations and risk program. But that's the core of what we're actually looking at when we talk about that mainstream enterprise. It's the large majority of companies that have not purchased cloud security and are not going to do it at the traditional price tags of $0.5 million-plus for those types of solutions.

我們在雲端中看到了同樣的動態。我們認為這是一個很大程度上尚未開發的市場。我們現在實際上正在做一些事情並進行投資，以實際上允許非常複雜的事情，例如如何評估風險環境，如何在雲端環境中進行檢測和回應，從而真正成為主流安全操作和風險計劃的一部分。但這是我們在談論主流企業時實際關注的核心。大多數公司尚未購買雲端安全，也不會以 50 萬美元以上的傳統價格購買這些類型的解決方案。

And so that's where we see the big opportunity playing out over the next few years. And we think we're all set up for that. Again, we're seeing early adoption there. We're well set up for that. And again, I think we have the opportunity to make progress this year around it.

因此，這就是我們看到未來幾年出現的巨大機會的地方。我們認為我們已經為此做好了準備。我們再次看到那裡的早期採用。我們已經為此做好了充分準備。再說一遍，我認為今年我們有機會圍繞這個問題取得進展。

To your other question, which I think I should go into, which is about the customer count, what I would just say is lots of the customer count -- look, I think we have plenty of space to grow customer count, but I actually want to grow it strategically. And I think what I've shared before was that our customer count volume from years past had a lot of transactional sales in it.

對於你的另一個問題，我認為我應該討論這個問題，這是關於客戶數量的，我想說的是很多客戶數量——看，我認為我們有足夠的空間來增加客戶數量，但實際上我想要策略性地發展它。我想我之前分享過的是，我們過去幾年的客戶數量中有很多交易銷售。

The thing I like about 11,000 customers is we made a much more strategic base that allows us to truly achieve our TAM and allows us to truly actually get material ARR per customer. And we expect that to continue to increase.

我喜歡 11,000 名客戶的一點是，我們建立了一個更具策略性的基礎，使我們能夠真正實現我們的 TAM，並讓我們真正獲得每個客戶的材料 ARR。我們預計這一數字將繼續增加。

We will grow the customer base. I'll just say listen, sales is sales, the fact that we're having a lot of success with the consolidation efforts. And so what it does mean is that your average sales rep needs fewer customers in order to actually hit ARR targets. Even though the sales productivity and the ARR per sales reps, we expect to continue to improve this year.

我們將擴大客戶群。我只想說，聽著，銷售就是銷售，事實上我們在整合方面取得了巨大的成功。因此，這意味著您的平均銷售代表需要更少的客戶才能真正達到 ARR 目標。儘管銷售生產力和每個銷售代表的 ARR，我們預計今年將繼續提高。

Part of how we actually do that, Rob, to your point is we have a big focus on that partner ecosystem. I think you and I have talked about it in the past are critical. You've asked a lot of questions about that. We think that we are ready and equipped. We have a compelling portfolio. I would say that that is still the -- we're seeing lots of momentum. I would say still an upside [jumper] for the year as we're onboarding partners. We're focusing on a smaller set of partners that actually have massive distribution capabilities, and we're tuning that in. So I think I got both of your questions there.

Rob，就您的觀點而言，我們實際做到這一點的部分原因是我們非常關注合作夥伴生態系統。我認為你和我過去討論過這個問題是關鍵。您對此提出了很多問題。我們認為我們已經準備好並裝備好了。我們擁有引人注目的產品組合。我想說的是，我們仍然看到了很大的動力。我想說，由於我們是新入職夥伴，今年仍有上行空間。我們專注於一小部分實際上擁有大量分銷能力的合作夥伴，並且我們正在對其進行調整。所以我想我已經回答了你的兩個問題。

Gregg Moskowitz, Mizuho.

格雷格·莫斯科維茨，瑞穗。

Yeah, hi. This is Mike on for Gregg. Thanks for taking my question here and perhaps a follow-up to Rob. You mentioned last quarter that following the restructuring, you really zeroed in on your installed base, right? Did that focus continue with the same intensity this quarter? Or have you recalibrated back to your traditional approach with respect to new logo and expansion business? Thanks.

是的，嗨。這是格雷格的麥克。感謝您在這裡提出我的問題，也許是對 Rob 的後續。您上個季度提到，在重組之後，您確實專注於您的安裝基礎，對嗎？本季這種關注是否繼續保持同樣的強度？或者您已重新調整回針對新徽標和擴展業務的傳統方法？謝謝。

Well, I would just say, look, we are in noisy markets. It's actually just, I think, more straightforward to actually tighten and focusing on your installed base. I would just say that's generally achieving because you have existing relationships, you have existing contracts, you have existing vehicles.

好吧，我只想說，看，我們正處於喧鬧的市場。我認為，實際上更直接地收緊並專注於您的安裝基礎。我只想說，這通常是可以實現的，因為你有現有的關係，你有現有的合同，你有現有的車輛。

I don't think that bias is actually changed. What I would say to the question in the previous question that Rob had is we are looking to expand the installed base. But because our ASPs are growing and the package consolidation is successful, instead of trying to actually force it, we're actually really being very thoughtful about our distribution and how we drive distribution and partnerships.

我認為偏見並沒有真正改變。對於 Rob 提出的上一個問題，我想說的是，我們正在尋求擴大安裝基礎。但因為我們的 ASP 正在成長，並且包整合是成功的，所以我們實際上對我們的分銷以及如何推動分銷和合作夥伴關係非常深思熟慮，而不是試圖真正強迫它。

And so we have a strategy in the near term to actually -- again, I want to be very explicit -- our goal is to actually take share and drive growth and be a very strong grower in the medium term. Our investments this year -- if you ask, we're opening our investments this year. We're putting more investments into the partnership and distribution and growing that investment at a higher weight than the growth in our direct sales force. And that's a very intentional thing because we actually think that that gives us scale of net new customer adds, but it also allows us to actually service more customers who actually need more care.

因此，我們在短期內製定了一項策略，實際上——我想再次非常明確地——我們的目標是真正佔據份額並推動成長，並在中期成為一個非常強大的成長者。我們今年的投資——如果你問的話，我們今年將開放我們的投資。我們正在對合作夥伴關係和分銷進行更多投資，並且投資的成長比重高於直銷隊伍的成長。這是一件非常有意的事情，因為我們實際上認為這使我們增加了淨新客戶規模，但它也使我們能夠真正為更多真正需要更多護理的客戶提供服務。

Adam Tindle, Raymond James.

亞當·廷德爾，雷蒙德·詹姆斯。

Okay, thank you. Tim, I just wanted to start out with the fiscal '24 guidance, which is really impressive on profitability. If I look at it, revenue is going to be increasing about $75 million year over year and EBIT up over $50 million year over year. So call it a 75% or so contribution margin on that.

好的謝謝。蒂姆，我只想從 24 財年指導開始，該指導在盈利能力方面確實令人印象深刻。如果我看一下，營收將年增約 7,500 萬美元，息稅前利潤將年增超過 5,000 萬美元。所以稱之為 75% 左右的邊際貢獻。

If you did that same analysis during fiscal '23, I think you'd come up with a similar contribution margin or drop-through of revenue to EBIT. So I guess the question would be because fiscal '23 had risk and cost control and stuff like that, how you thought about the buildup to drive similar leverage, operating leverage in fiscal '24 as fiscal '23 and the logistics behind it. And I've got a follow-up for Corey.

如果您在 23 財年進行相同的分析，我認為您會得出類似的邊際貢獻或息稅前利潤下降。所以我想問題是因為 23 財年有風險和成本控制之類的東西，你如何考慮推動類似槓桿的積累，24 財年的營運槓桿與 23 財年的營運槓桿及其背後的物流。我還有科里的後續報道。

Yeah, Adam, we try to be very thoughtful when we go into the planning session as we move into 2024. And a lot of that stems from the actions that we took six months ago with the restructuring. And we really tried to be very deliberate at a department level where we're going to make our investments.

是的，Adam，當我們進入 2024 年的規劃會議時，我們會盡量深思熟慮。其中很大一部分源自於我們六個月前採取的重組行動。我們確實嘗試在部門層級進行非常深思熟慮的投資。

Corey mentioned a little bit early in the prepared remarks about some of this investment in innovation. So I would expect R&D as we go into next year to tick up a little bit as a percentage of revenue. But when we look across the base, I think we see nice leverage across the board in sales and marketing and G&A, and we want to make sure we're investing in the appropriate areas. And I think we can do all of that based on the way we built the plan for this year and still double that free cash flow to at least $160 million as we go into 2024.

科里在準備好的發言中早些時候提到了一些創新投資。因此，我預計明年研發佔營收的比例會略有上升。但當我們縱觀整個基礎時，我認為我們在銷售、行銷以及一般管理費用方面看到了全面的良好槓桿作用，我們希望確保我們在適當的領域進行投資。我認為我們可以根據今年制定計劃的方式來完成所有這些工作，並且在進入 2024 年時仍將自由現金流增加一倍，達到至少 1.6 億美元。

Okay. And quickly, Corey, this obvious improved profitability is impressive, but I wonder how you would reflect on the impact on growth. You added $90 million of net new ARR this year. Looks like guidance implies around $85 million net new ARR next year, so flat to slightly down.

好的。很快，科里，這種明顯的盈利能力改善令人印象深刻，但我想知道您如何看待這對成長的影響。今年您增加了 9000 萬美元的淨新 ARR。看來指導意味著明年的淨新 ARR 約為 8500 萬美元，因此持平或略有下降。

What would it take to maybe push to a new level of net new ARR, a step function above this level on growth? And do you think you could do so while holding this level of profitability?

怎樣才能將淨新 ARR 推向新水平（高於該增長水平的階躍函數）？您認為在保持這種盈利水平的情況下您可以做到這一點嗎？

So one, it's a very good question. What I would say is that we have plenty of growth levers in the business, whether you look at our distribution partners or whether you look at the new products and capabilities that we actually -- plan to actually bring online.

所以，這是一個非常好的問題。我想說的是，我們在業務中擁有大量的成長槓桿，無論您看看我們的分銷合作夥伴，還是我們實際上計劃實際推出的新產品和功能。

Whether you look at the fact -- whether we see the same market momentum and consistency that was on Q4 and that you see a healthier market, not just stable, but it gets even healthier. So we have, I would just say, growth drivers and catalysts in our own business. There's market ones. There's things that we're doing in our partner distribution ecosystem. So we have a number of catalysts and growth drivers.

無論您是否看到事實 - 我們是否看到與第四季度相同的市場動力和一致性，以及您是否看到一個更健康的市場，不僅穩定，而且變得更加健康。因此，我只想說，我們自己的業務有成長動力和催化劑。市場上有的。我們正在合作夥伴分銷生態系統中做一些事情。因此，我們有許多催化劑和成長動力。

What I'll just say is from a guidance perspective, we just don't think that's material to actually put into our baseline guidance assumptions. So we're always going to pursue -- look at pursuing higher growth. But in our model, what we're committed to is actually delivering very strong free cash flow growth, of which I am thrilled, and my focus is for that to come from higher ARR growth. But if the market is tighter or tougher, then that can just easily come from margin expansion, which Tim and our finance team has plenty of room to do.

我想說的是，從指導的角度來看，我們只是認為這對於實際納入我們的基準指導假設並不重要。因此，我們始終要追求更高的成長。但在我們的模型中，我們致力於實現非常強勁的自由現金流成長，對此我感到很興奮，我的重點是來自更高的 ARR 成長。但如果市場更加緊張或嚴峻，那麼這很容易來自於利潤擴張，而蒂姆和我們的財務團隊有足夠的空間可以做到這一點。

Fatima Boolani, Citi.

法蒂瑪·布拉尼，花旗銀行。

Good afternoon. Thank you for taking my questions. Corey or Tim, I wanted to revisit the ARR outlook and maybe ask you this question from a different angle.

午安.感謝您回答我的問題。Corey 或 Tim，我想重新審視 ARR 的前景，也許會從不同的角度問你們這個問題。

So when I stack up all of the goodness that you're seeing with respect to the package momentum, the larger deal sizes, the ASP increases commensurate with that, why would we see a deceleration and frankly, a lot in and out of your net new ARR? If you can give us the flip side of the coin on what are some of the conservative elements that you're baking into your outlook here.

因此，當我將您所看到的一攬子動力、更大的交易規模、平均售價相應增加的所有好處疊加起來時，為什麼我們會看到減速，坦率地說，大量進出您的網絡新的ARR ？如果您能為我們介紹一下硬幣的反面，您在觀點中融入了哪些保守元素。

Perhaps, there is some cannibalization and maybe some compression of existing spend. I just really like to better understand the other side of the coin on that implied conservatism, even though things are going well and you're frankly entering year two of a much stronger, better equipped and enabled sales force in selling these packages. Thank you.

或許，現有支出會受到一些蠶食和壓縮。我真的很想更好地理解硬幣的另一面，即隱含的保守主義，儘管一切進展順利，而且坦率地說，你已經進入了第二年，銷售隊伍的銷售能力要強大得多、裝備更好、能力更強。謝謝。

No, it's a very fair and good question today. So I think that the first thing I would just say is that we do expect the market to be noisy. And so overall -- so the first thing you just say is that, look, if we actually -- while Q4 was consistent and stable, we saw upward momentum on deals getting funded, and that was very healthy. Look, if the market stays very healthy, then we have room. That's a good thing. We actually have upside there. That's not a problem.

不，今天這是一個非常公平且很好的問題。因此，我認為我要說的第一件事是，我們確實預計市場會很吵鬧。總的來說 - 所以你剛才說的第一件事是，看，如果我們真的 - 雖然第四季度是一致和穩定的，但我們看到融資交易的上升勢頭，這是非常健康的。你看，如果市場保持非常健康，那麼我們就有空間。這是好事。我們實際上有優勢。那不是問題。

It would be inappropriate from my perspective to actually assume that all market noisiness and challenges are behind us. That's just not something that I'm going to do what we're going to do from a fundamental planning perspective. But if it is, that's like -- that's very consistent. I would just say that's probably one of the biggest factors that I will consider.

從我的角度來看，實際上假設所有市場噪音和挑戰都已經過去是不合適的。從基本規劃的角度來看，這不是我要做的事。但如果是的話，那就非常一致了。我只想說這可能是我會考慮的最重要的因素之一。

And then to your other points, if things stay -- I would just say like if I look at the positive signals and those stay consistent, if our conversion rates are great -- we're seeing some of the best conversion rates we've actually seen. I don't assume that record-high conversion rates stay record high. I'll just be explicit about that, even though they've been record highs for a couple of quarters. That's great.

然後到你的其他觀點，如果情況保持不變——我想說的是，如果我看到積極的信號並且這些信號保持一致，如果我們的轉換率很高——我們就會看到一些我們所見過的最好的轉換率實際看到的。我不認為創紀錄的高轉換率會一直維持在歷史高點。我只是明確說明這一點，儘管它們已經連續幾季創下歷史新高。那太棒了。

If you look at what we're doing from a distribution and building pipeline perspective, as we've actually come back from the [rift], we're really investing heavily in our partner ecosystem. I would just say that our assumption is that turns out later this year and into early next year, but that actually may turn on sooner, and that's actually a great thing that actually happens there.

如果你從分銷和建造管道的角度來看我們正在做的事情，因為我們實際上已經從[裂痕]中恢復過來，我們確實在我們的合作夥伴生態系統上進行了大量投資。我只想說，我們的假設是，這種情況會在今年晚些時候和明年初發生，但實際上可能會更快發生，這實際上是一件偉大的事情，實際上發生在那裡。

And so if the positive things that we actually see in the business and outlook continue, then we'll definitely, to your point, be able to perform above. We do not factor that into the baseline exceptions to just stay in a noisy market that things are going to actually be all good. I think that that's more of just the approach that we take.

因此，如果我們在業務和前景中實際看到的積極的事情持續下去，那麼按照您的觀點，我們肯定能夠實現上述目標。我們不會將其納入基線例外情況，只是留在喧鬧的市場中，認為一切實際上都會好起來。我認為這更多的是我們採取的方法。

What we are committed to, on the flip side -- and this is something that we actually instituted at the end of last year coming out of our restructuring -- is we're committed to actually delivering strong free cash flow growth and setting ourselves up to actually exceed expectations somewhere along the line in the medium-term setup. And that is like a commitment that we're going to make is like, hey, if the market is noisy, then we actually have margin expansion. But if we've seen the health and consistency that we actually saw coming out of last year and that continued stably throughout this year and it goes up, then we'll feel very good about things, and we'll be going stronger.

另一方面，我們致力於實現強勁的自由現金流成長並建立自己的基礎，這是我們去年年底在重組中實際制定的。在中期設置中實際上超出了預期。這就像我們要做出的承諾一樣，嘿，如果市場吵雜，那麼我們實際上會擴大利潤率。但如果我們看到了去年實際看到的健康狀況和一致性，並且今年一直穩定持續，並且有所上升，那麼我們就會感覺非常好，我們會變得更強。

Corey, I would just add, we're seeing strong demand from CISOs because they have a backlog of projects.

Corey，我想補充一點，我們看到 CISO 的強烈需求，因為他們有積壓的項目。

They do.

他們是這樣。

And the CFOs have gotten in the way a little bit to slow things down to release --

財務長有點阻礙，放慢了發布速度--

The funding of the projects that are in the backlog -- CISOs have a lot of stuff that they want to do. We actually saw that those get funded nicely like coming out of last year. And I would love to see in our aspirations to see those keeping funded. We don't have a demand problem. We do have like -- our customers have to continue to fund security, and the pace of that funding is something that we keep an eye on.

為積壓的專案提供資金－CISO 有很多他們想做的事情。事實上，我們看到這些項目像去年一樣得到了很好的資助。我很樂意看到我們希望看到那些繼續獲得資助的人。我們不存在需求問題。我們確實有這樣的情況——我們的客戶必須繼續為安全提供資金，而我們密切關注資金的進度。

Gray Powell, BTIG.

格雷·鮑威爾，BTIG。

Okay, great. Thanks for taking the question. Yeah. So that last answer was really thorough, but I did just have like one follow-up to Fatima and Adam's question. So if I just look at net new ARR trends, you bounced back to positive territory in Q3. Obviously, we had the Q4 results. The 2024 guidance implies that net new ARR additions is down.

好的，太好了。感謝您提出問題。是的。所以最後一個答案非常徹底，但我確實只是對法蒂瑪和亞當的問題做了一個後續回答。因此，如果我只看淨新 ARR 趨勢，您會在第三季反彈至正值區域。顯然，我們已經得到了第四季的結果。2024 年指引意味著新增 ARR 淨值有所下降。

I'm just curious, in terms of linearity, at some point, do you think we get back into positive net add growth in 2024? Is that something that could happen at the second half of the year, or is that really more of a 2025 event?

我只是很好奇，就線性而言，您認為在某個時候我們會在 2024 年恢復正淨增加增長嗎？這是否會在今年下半年發生，或者這實際上更像是 2025 年的事件？

Well, I think -- similar to the last question, I think you're asking, A, as you know more and if the market is stable and good, do you have the chance to grow higher. I'd say, yes. Look, we have the capacity to actually grow faster.

嗯，我認為——與上一個問題類似，我想你在問，A，因為你知道更多，如果市場穩定、良好，你有機會成長得更高嗎？我會說，是的。看，我們實際上有能力實現更快的成長。

That is not a framework that we're going to start out with. The framework that we're starting out with is basically the free cash flow framework. First is actually taking a definitive view that the market is completely stable. If that actually happens, and without doubt, we'll actually grow faster.

這不是我們要開始的框架。我們開始使用的框架基本上是自由現金流框架。首先是明確地認為市場是完全穩定的。如果這真的發生，毫無疑問，我們實際上會成長得更快。

Okay, really helpful. A lot of color there. I appreciate that. And then last one on my side, just did the risk from August have any outsized impact on productivity or conversion rates or anything in Q4? Or was Q4 pretty much exactly like you expected it to be?

好的，真的很有幫助。那裡有很多顏色。我很感激。我的最後一個問題是，8 月的風險是否對第四季度的生產力或轉換率或任何其他方面產生過大的影響？或者第四季與您的預期完全一樣嗎？

Q4 was pretty much exactly -- I would say even Q4 was slightly better than we expected. Again, we saw incredibly strong conversion rates. We saw customers funding projects. It was not budget flush to be clear. There was not like a lot of net new things. We had projects that customers have been waiting on spending on, they actually funded those projects.

第四季幾乎完全一樣——我想說，甚至第四季也比我們預期的要好一些。我們再次看到了令人難以置信的強勁轉換率。我們看到客戶為專案提供資金。要先明確的是，預算並不充裕。沒有很多新的東西。我們有客戶一直在等待支出的項目，他們實際上為這些項目提供了資金。

Our sales team executed extraordinarily well. We liked a lot of what we saw in Q4, and we liked a lot of the momentum that we actually have here in this year.

我們的銷售團隊表現非常出色。我們喜歡第四季看到的很多東西，也喜歡今年我們實際上擁有的許多動力。

Shrenik Kothari, Robert Baird.

施萊尼克·科塔里，羅伯特·貝爾德。

Yeah, thanks for taking my questions. So, Corey, you mentioned about, of course, deepening investments in the partner ecosystem. And you also highlighted leverage marketplaces like AWS. So just as a follow-up to an earlier question about the new customer growth, looks like CSPM is a percent of your strategy.

是的，謝謝你回答我的問題。所以，科里，您當然提到了深化對合作夥伴生態系統的投資。您也強調了 AWS 等槓桿市場。因此，就像之前有關新客戶成長的問題的後續一樣，CSPM 似乎是您策略的一部分。

Can you talk about the traction with the AWS Marketplace and how much potential do you see that as we already offer products that are integrated into the AWS ecosystem, aimed at reducing the cloud attack surfaces and mitigating cloud growth? So yeah, any color would be helpful here.

您能否談談 AWS Marketplace 的吸引力以及您認為它有多大潛力，因為我們已經提供了整合到 AWS 生態系統中的產品，旨在減少雲端攻擊面並減緩雲端成長？所以是的，任何顏色在這裡都會有幫助。

Yeah, I don't have the numbers off and we probably won't break them down. I would just say we saw good growth in AWS Marketplace traction in sales last year. We are expecting, I would just say, that growth to continue. This is part of our distribution strategy in engine. And I would just say it's continued momentum, and we have upside there. But we've seen healthy growth in demand through that marketplace and through our AWS partnership.

是的，我沒有這些數字，我們可能不會對它們進行詳細分析。我想說的是，去年我們看到 AWS Marketplace 的銷售成長良好。我只想說，我們期待這種成長繼續下去。這是我們引擎分銷策略的一部分。我想說的是，這種勢頭持續存在，而且我們還有上升空間。但透過該市場和我們的 AWS 合作夥伴關係，我們看到了需求的健康成長。

We are a strategic partner for AWS. They've been a good partner. It's been beneficial on the sales and go-to-customer side, and it's something that we and they are investing more into.

我們是AWS的策略夥伴。他們一直是很好的合作夥伴。這對銷售和接觸客戶方面是有益的，我們和他們正在這方面投入更多。

Alex Henderson, Needham & Company.

亞歷克斯·亨德森，李約瑟公司。

Thanks. A couple of comments made on the call just seemed a little difficult to analyze. And you said you plan to gain share, but I don't really know what you think the market growth rate is that you're gaining share against. So I was wondering if you could just give us some sort of parse on what the rate of the market growth is both in the near term and, say, intermediate time frame.

謝謝。電話中的一些評論似乎有點難以分析。你說你計劃獲得份額，但我真的不知道你認為你獲得份額的市場成長率是多少。所以我想知道您是否可以給我們一些關於近期和中期時間範圍內市場成長率的分析。

And in that context, you do talk a lot about the new customer adds. And it seems to me that you're still shedding some of the smaller customers and shifting mix to the larger customers. So it's somewhat of a bimodal number. If you could give us a little bit more quantification on what the larger customer growth rates look like versus the fallout at the bottom of the pie, that would be great. Thanks.

在這種情況下，你確實談論了很多關於新客戶的增加。在我看來，你們仍在擺脫一些較小的客戶，並將組合轉向較大的客戶。所以它有點像雙峰數。如果您能為我們提供更多關於較大客戶成長率與底部影響的量化數據，那就太好了。謝謝。

Yeah. So good questions. I'm not going to try to do the IDC, Gartner thing given the overall market growth rates because I probably misremember [stuff]. But what I would just say is that think about my comment largely, Alex, is that our assumption and our plan is to see growth rate acceleration over the midterm. You can think about that two- to three-year window.

是的。這麼好的問題。考慮到整體市場成長率，我不會嘗試做 IDC、Gartner 的事情，因為我可能記錯了[東西].但我想說的是，亞歷克斯，請考慮我的評論，我們的假設和計劃是在中期看到成長率加速。你可以考慮一下兩到三年的時間窗口。

So we do actually plan to see growth acceleration. And we plan for that to actually be ahead of where the analyst in the market is. And I think we could look at what they have as their growth rates is probably the best arbitrator. It's certainly something [to actually look at].

因此，我們確實計劃看到成長加速。我們計劃實際上領先於市場分析師的水平。我認為我們可以看看他們擁有什麼，因為他們的成長率可能是最好的仲裁者。這肯定是某事[實際看看]。

But we see the capacity. And our strategy for that, just to be very specific, is that this year, our investment is rotated to products and product differentiation and distribution and market expansion. So we're very focused about like what are the high-growth areas, detection and response, taking cloud security mainstream, getting more leverage for us and our partners through our AI and SOC investments, and then extending our partnership ecosystem, especially in the managed service space.

但我們看到了容量。我們的策略非常具體，今年我們的投資將轉向產品和產品差異化、分銷和市場擴張。因此，我們非常關注高成長領域、檢測和回應，將雲端安全納入主流，透過人工智慧和 SOC 投資為我們和我們的合作夥伴獲得更多影響力，然後擴展我們的合作夥伴生態系統，特別是在託管服務空間。

We think that those investments will allow us to both be differentiated to address more customer demand that we actually see in the overall market and actually have a more cost-efficient go-to-market motion and distribution motion. That's where we're actually putting our dollars and our investments. And we think that over the next three years, we can be a very, very strong both free cash flow grower but also a total top-line ARR grower with that actual setup and with that investment.

我們認為，這些投資將使我們能夠實現差異化，以滿足我們在整個市場中實際看到的更多客戶需求，並且實際上擁有更具成本效益的上市行動和分銷行動。這就是我們實際投入資金和投資的地方。我們認為，在接下來的三年裡，我們可以成為一個非常非常強大的自由現金流成長商，而且透過實際設定和投資，我們也可以成為一個總營收的 ARR 成長商。

I won't comment more on the guide because I think I talked about the different structure we have on the guide that we entered at the end of last year. So I think I've talked about that extensively. But that is just not the totality of how we actually see the midterm and the long term or even fully this year.

我不會對該指南進行更多評論，因為我想我談到了我們去年年底輸入的指南中的不同結構。所以我想我已經廣泛地討論過這個問題。但這並不是我們對中期和長期甚至今年的實際看法的全部。

Your other question about customer accounts, you're absolutely 100% right. And what I would just say is that you can say it's smaller customers. What I would just say is that both in customers, I think you know that, Alex, it actually matched a shift from transactional sales and yes, some smaller customers to a higher mix of strategic sales, where Rapid7 is a dominant security provider with all the opportunity for expansion and growth on that. So you're seeing a real shift in mix as reflected by our ARR per customer in there.

你關於客戶帳戶的另一個問題，你絕對100%正確。我想說的是，你可以說是小客戶。我想說的是，在客戶中，我想你知道，Alex，它實際上匹配了從交易銷售的轉變，是的，一些較小的客戶轉向更高組合的戰略銷售，其中Rapid7 是一家占主導地位的安全提供者，擁有所有在此基礎上擴展和成長的機會。因此，您會看到組合的真正轉變，正如我們每個客戶的 ARR 所反映的那樣。

So it is an intentional, as you say, shedding, I would say, lower more transactional customers. It's transactional to focus, not really the dollar size to actually being more strategic. And I think we're executing great on that strategic pyramid. So to that point, that's -- I would say -- we're not focused.

所以，正如你所說，這是一種有意的流失，我想說的是，減少了更多的交易客戶。重點是交易性的，而不是真正更具策略性的美元規模。我認為我們在戰略金字塔上執行得很好。所以到目前為止，我想說的是，我們沒有集中註意力。

Your question on what's the growth rate, I think a while ago, we provided the platform growth rate. I don't want to have that metric on hand and ready to go right now.

你問的成長率是多少，我想不久前我們提供了平台成長率。我不想現在就擁有該指標並準備好使用。

That number is growing faster than the overall customer base.

這個數字的成長速度快於整體客戶群的成長速度。

It is. I just don't have it. Right.

這是。我就是沒有。正確的。

We didn't break it out. It's a few points higher than what we disclosed.

我們沒有把它打破。這比我們披露的要高幾個點。

Exactly. Okay.

確切地。好的。

Michael Turits, KeyBanc Capital Markets.

Michael Turits，KeyBanc 資本市場。

Just along similar vein of the questions that have been asked, but I guess I'll just ask two. Corey, I guess what are the areas of the business where you can best control your own destiny when it comes to that ARR acceleration? That's number one.

與已提出的問題類似，但我想我只會問兩個。Corey，我想在 ARR 加速方面，您最能掌控自己命運的業務領域是什麼？這是第一名。

And then two, just curious -- performance in the quarter, just curious if there was anything called out, whether it's demand trends or just execution from the team, whether it's Americas versus international, if there's anything to call out [with this messaging]. Thanks.

然後兩個，只是好奇 - 本季的表現，只是好奇是否有什麼值得指出的，無論是需求趨勢還是團隊的執行，無論是美洲還是國際，是否有什麼值得指出的[透過此訊息]。謝謝。

That's a good question. I might tag team that with Tim. Look, I actually thought Q4 was fairly solid from my perspective. There's nothing that stands out. Tim, I don't know whether you think about anything that stands out in --

這是個好問題。我可能會用蒂姆來標記團隊。聽著，從我的角度來看，我實際上認為第四季度相當穩定。沒有什麼突出的地方。提姆，我不知道你是否想到過什麼突出的事情--

EMEA performed very strong in Q4 in terms of new bookings.

歐洲、中東和非洲地區在第四季的新預訂量方面表現非常強勁。

Yeah, which is an improvement over the prior year, I think. So that was healthy. But I would just say that Q4 was overall very healthy in general. I think on the stuff that we could control, I would just say we're taking very, very disciplined midterm investments.

是的，我認為這比前一年有所進步。所以那是健康的。但我只想說，第四季整體來說非常健康。我認為在我們可以控制的事情上，我只想說我們正在進行非常非常嚴格的中期投資。

Look, we can control our distribution ecosystem. As I've said before, we are investing in the partner. As we bring on new distribution, things we're being quite successful at it, I just don't factor in -- and that's why I just said you could figure out how you want to talk about those. We don't factor in things that are in motion or in play, even if they're optimistic and doing well and hit. It's a baseline assumption. That's just not the way we're ever going approach it.

看，我們可以控制我們的分銷生態系統。正如我之前所說，我們正在投資合作夥伴。當我們推出新的發行版時，我們在這方面非常成功，我只是沒有考慮——這就是為什麼我剛剛說你可以弄清楚你想如何談論這些。我們不會考慮正在發生或正在發生的事情，即使它們是樂觀的、表現良好且成功的。這是一個基線假設。這不是我們處理問題的方式。

We talked to you about things that are actually already done and completed. But we have a lot of control. Look, we're in the right markets. We're in the growthier parts of security. Detection and response is our anchor tenet. We have incredible conversion rates. We're set up well. We don't have to change our market position.

我們與您討論了實際上已經完成和完成的事情。但我們有很多控制權。看，我們處於正確的市場。我們正處於安全領域成長最快的部分。偵測和回應是我們的核心宗旨。我們擁有令人難以置信的轉換率。我們已經安排好了。我們不必改變我們的市場地位。

So what I'll say is we have capacity to actually do well in the market. But what we're communicating, I think, overall, I'll reiterate is that the market -- I'll flip it around and just say the setup that we gave you is actually one of control. What we've actually said is that we can actually grow well and drive free cash flow independent of what happened to the market. And we think that's a great setup in a market that's a little bit noisy. And I would just say if the markets stay safe, if the market is stable, then we actually have plenty of capacity for top-line growth.

所以我要說的是，我們有能力在市場上取得好成績。但我認為，總的來說，我要重申的是，我們正在溝通的是市場——我會翻轉它，只是說我們給你的設置實際上是一種控制。我們實際上所說的是，我們實際上可以實現良好的成長，並獨立於市場發生的情況而推動自由現金流。我們認為，在一個有點吵雜的市場中，這是一個很好的設定。我只想說，如果市場保持安全，如果市場穩定，那麼我們實際上有足夠的能力來實現營收成長。

Joshua Tilton, Wolfe Research.

約書亞‧蒂爾頓，沃爾夫研究中心。

Hey, this is Patrick on for Josh. Corey, you've mentioned that the environment was noisy a few times now. Just wondering if you could unpack that a little bit further. And then also, one of your competitors mentioned that the mid-market was strong in the fourth quarter. Curious if you saw any of that outsized strength in the mid-market space or maybe increased competition? Thanks.

嘿，這是派崔克替喬許代言。科里，您曾多次提到環境很吵。只是想知道你是否可以進一步解開它。此外，您的一位競爭對手提到第四季中端市場表現強勁。好奇您是否在中端市場領域看到瞭如此巨大的實力或加劇了競爭？謝謝。

Yeah, I'll do the second one first. Mid-market was, I'll just say, stable and consistent for us, and it was healthy. I think we made adjustments earlier. So I think different people processing their observations about the mid-market. We processed ours at the start of last year. And I would say it was at or exceeded our expectations, and we think it's a healthy driver and contributor.

是的，我先做第二個。我只想說，中端市場對我們來說是穩定且一致的，而且是健康的。我想我們之前就做了調整。所以我認為不同的人會處理他們對中端市場的觀察。我們在去年初處理了我們的。我想說它達到或超越了我們的預期，我們認為它是一個健康的驅動程式和貢獻者。

And then remind me your first question again. I'm not good at the multiple questions.

然後再提醒我你的第一個問題。我不擅長做多個問題。

You've mentioned that the environment was noisy.

你提到環境很吵。

Yeah, yeah. So here's what I mean by noisy. When we talk to CISOs and security teams, we see plenty of demand. There is plenty of demand. What's been noisy is if you look over the course of last year, there was different points and times where people were having trouble getting those projects funded versus not.

是啊是啊。這就是我所說的吵雜的意思。當我們與 CISO 和安全團隊交談時，我們看到了大量的需求。需求量很大。令人爭議的是，如果你回顧去年的情況，你會發現在不同的時間點和時間，人們在為這些計畫提供資金方面遇到了困難，而沒有獲得資助。

And so we don't see a problem in actually security demand. The question is, can those security teams get those projects funded? If they're getting those projects funded, we feel great and things are great. But I'm not going to take that dependency that basically all the security projects that we actually see are actually going to get funded. That's what's been noisy.

因此，我們認為實際的安全需求並不存在問題。問題是，這些安全團隊能否獲得這些項目的資助？如果他們為這些項目提供資金，我們會感覺很棒，一切都很棒。但我不會認為基本上我們實際看到的所有安全項目實際上都會獲得資助。這就是吵鬧的原因。

Over the course of last year, you had different periods of time where security teams were told they had to slow down some of their investments. I would say that my hope is that what we're seeing from the regulatory environment and what we're seeing more broadly is going to encourage people to actually fund the projects that their security teams and their CISOs are asking for. But it's also not something that it will be wise to actually have a presumption that that's going to be the default case.

在去年的過程中，安全團隊在不同的時期被告知必須放慢一些投資。我想說的是，我希望我們從監管環境和更廣泛的角度看到的情況將鼓勵人們真正為其安全團隊和 CISO 所要求的項目提供資金。但實際上假設這將是預設情況也不是明智之舉。

Rob Galvin, Stifel.

羅布加爾文，斯蒂菲爾。

Thanks for taking my question. Corey, last quarter, you spoke of a growing number of longer-term contracts with weighted average deal duration up 20% year over year. And I'm wondering if you've seen the same trend persist into Q4 and what your expectations are for 2024 on this front. Thanks.

感謝您提出我的問題。Corey，上個季度，您提到長期合約數量不斷增加，加權平均交易期限年增 20%。我想知道您是否看到同樣的趨勢持續到第四季度，以及您對 2024 年這方面的期望是什麼。謝謝。

Yeah. But still, it was strong again in Q4. So we're really pleased with really seeing those contracts being extended out beyond one-year contracts. We're seeing a lot of three-year contracts, both on the new and the renewal side.

是的。但第四季仍然強勁。因此，我們非常高興看到這些合約延長至一年以上。我們看到很多三年合約，無論是新合約還是續約合約。

Yeah, I would just say that goes to what we talked about us becoming and being a strategic provider. I think I'm most proud of the team is that like if you look over the last three years, we have become a very strong strategic provider of security. And you see that both reflect in our consolidation offerings as well as our ASPs and ARR as well as the length and the duration of the contracts that customers want to do with us. So yeah, I think that's fair.

是的，我只想說這就是我們談論的我們成為策略提供者的問題。我想我最為這個團隊感到自豪的是，如果你看看過去三年，我們已經成為一個非常強大的策略安全提供者。您將看到，這兩者都反映在我們的整合產品、ASP 和 ARR 以及客戶希望與我們簽訂的合約的長度和期限中。所以是的，我認為這是公平的。

And that's all the time we have for questions. I will now turn the call back over to Corey Thomas for closing remarks.

這就是我們提問的時間。現在，我將把電話轉回給科里·托馬斯（Corey Thomas），讓其致閉幕詞。

Well, thank you all for joining us on the call today, and I wish you all a good evening. Thanks.

好的，謝謝大家今天參加我們的電話會議，祝大家晚上好。謝謝。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。