SEMrush Holdings Inc (SEMR) 2024 Q1 法說會逐字稿

Hello, everyone, and welcome to the SEMrush Holdings first quarter 2024 results conference Call.

大家好，歡迎參加 SEMrush Holdings 2024 年第一季業績電話會議。

My name is Drew, and I'll be the operator for today's call.

我叫德魯，我將擔任今天電話的接線生。

(Operator Instructions)

（操作員說明）

With that I'll hand over to Brinlea Johnson Investor Relations.

接下來我將把工作交給 Brinlea Johnson 投資者關係部。

Please go ahead.

請繼續。

Good morning, and welcome to SEMrush Holdings first quarter 2024 conference call.

早安，歡迎參加 SEMrush Holdings 2024 年第一季電話會議。

We'll be discussing the results announced in our press release issued after market close on Monday, May 6.

我們將討論 5 月 6 日星期一收盤後發布的新聞稿中宣布的結果。

With me on the call is our CEO, Oleg Shchegolev; President, Eugene Levin, and our CFO, Brian Mulroy.

與我一起參加電話會議的是我們的執行長 Oleg Shchegolev；總裁 Eugene Levin 和我們的財務長 Brian Mulroy。

Today's call will contain forward-looking statements, which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

今天的電話會議將包含前瞻性陳述，這些陳述是根據 1995 年《私人證券訴訟改革法案》的安全港條款做出的。

Forward-looking statements include, but are not limited to statements concerning our expected future business and financial performance and financial condition, expected growth, adoption and demand for existing and any products and features our expected growth of the customer base and specific customer segments, expansion of our content, check tool industry and market trends, our competitive position, market opportunities, sales and marketing activities, future spending and incremental investments.

前瞻性陳述包括但不限於有關我們預期的未來業務和財務業績和財務狀況、現有產品和任何產品的預期增長、採用和需求的陳述，以及我們對客戶群和特定客戶群的預期增長、擴張的陳述我們的內容、檢視工具產業和市場趨勢、我們的競爭地位、市場機會、銷售和行銷活動、未來支出和增量投資。

Our guidance for the second quarter of 2024 and the full year 2024 and statements about future pricing and operating results, including margin improvement, revenue growth and profitability.

我們對 2024 年第二季和 2024 年全年的指導以及有關未來定價和營運業績的聲明，包括利潤率改善、收入成長和獲利能力。

Forward-looking statements are statements other than statements of fact and can be identified by words such as expect, plan, anticipate, intend, plan, believe, seek or will these statements reflect our views as of today, only and should not be relied upon as representing our views as of any subsequent date.

前瞻性陳述是事實陳述以外的陳述，可以透過預期、計劃、預期、打算、計劃、相信、尋求等詞語來識別，或者這些陳述僅反映我們截至目前的觀點，不應依賴代表我們截至任何後續日期的觀點。

We do not undertake any duty to update these statements.

我們不承擔更新這些聲明的任何責任。

Forward-looking statements address matters that are subject to risks and uncertainties that could cause actual results to differ materially from these forward-looking statements.

前瞻性陳述所涉及的事項存在風險和不確定性，可能導致實際結果與這些前瞻性陳述有重大差異。

For a discussion of the risks and important factors that could affect our actual results, please refer to our most recent quarterly report on Form 10 Q and our annual report on Form 10 K filed with the Securities and Exchange Commission as well as our other filings with the SEC.

有關可能影響我們實際結果的風險和重要因素的討論，請參閱我們向美國證券交易委員會提交的最新 10 Q 表格季度報告和 10 K 表格年度報告以及我們向美國證券交易委員會提交的其他文件。交易委員會。

During the course of today's call, we refer to certain non-GAAP financial measures.

在今天的電話會議中，我們提到了某些非公認會計準則財務指標。

There's a reconciliation schedule showing GAAP versus non-GAAP results currently available in our press release issued yesterday after market close, which can be found at investors dot suntrust.com.

我們昨天在收盤後發布的新聞稿中提供了顯示 GAAP 與非 GAAP 結果的核對時間表，您可以在投資者網站 suntrust.com 上找到該新聞稿。

As noted last quarter, our results for the first quarter and our forward-looking guidance uses our new non-GAAP definition, we are no longer providing guidance for non-GAAP net income and instead guiding to both non-GAAP operating margin and free cash flow margin.

如上季所述，我們第一季的業績和前瞻性指導使用了我們新的非公認會計原則定義，我們不再提供非公認會計原則淨利潤指導，而是指導非公認會計原則營業利潤率和自由現金流量裕度。

Definitions for these are presented in our earnings release has also updated our definition of non-GAAP income from operations on which non-GAAP operating margin is calculated to exclude amortization of acquired intangible assets, acquisition-related costs, restructuring costs and other one-time expenses outside the ordinary course of business.

我們的收益報告中列出了這些定義，也更新了我們對非公認會計原則營運收入的定義，計算非公認會計原則營業利潤時不包括收購的無形資產攤銷、收購相關成本、重組成本和其他一次性費用。

For example, our exit costs incurred primarily in 2022.

例如，我們的退出成本主要發生在 2022 年。

In addition to the current exclusion of stock-based compensation, the updated definitions are reflected in our first quarter 2024 financial results.

除了目前排除以股票為基礎的薪酬之外，更新的定義也反映在我們 2024 年第一季的財務表現。

All future financial statements will reflect the new definition for the current and prior periods.

所有未來的財務報表都將反映當前和前期的新定義。

We are also providing a reconciliation the old definition to the new definition for the periods presented.

我們也提供了所提出期間的舊定義與新定義的調節。

We believe this update allows investors to better understand our financial performance, better align with measures used internally by management in operating our business and permit a better evaluation of the efficacy of the methodology and information used by management to evaluate and measure our performance.

我們相信，此次更新可以讓投資者更了解我們的財務業績，更好地與管理層在經營我們業務時內部使用的措施保持一致，並更好地評估管理層用於評估和衡量我們業績的方法和資訊的有效性。

Now let me turn the call over to Oleg.

現在讓我把電話轉給奧列格。

Thank you and good morning to everyone.

謝謝大家，大家早安。

In the first quarter, we generated revenue of $85.8 million, up 21% year over year, and overall growth of 21% year over year.

第一季度，我們營收 8,580 萬美元，年增 21%，整體年增 21%。

We reported income from operations of $1.5 million, non-GAAP income from operations of $9.7 million in the first quarter.

我們報告第一季營運收入為 150 萬美元，非 GAAP 營運收入為 970 萬美元。

Importantly, we generated free cash flow of $12 million and a free cash flow margin of 14%.

重要的是，我們產生了 1200 萬美元的自由現金流和 14% 的自由現金流利潤率。

We exceeded our prior guidance and I am pleased to say we are raising our full year 2024 guidance.

我們超越了先前的指導，我很高興地說我們正在提高 2024 年全年指導。

Our business is focused on driving strong sustainable growth while also expanding profitability and generating free cash flow.

我們的業務專注於推動強勁的永續成長，同時擴大獲利能力並產生自由現金流。

Before handing it over to Eugene And Brian, I would like to touch on a few highlights about our strategy to continue to scale the business and capture the significant market opportunity we see ahead.

在將其交給尤金和布萊恩之前，我想談談我們繼續擴大業務規模並抓住未來重大市場機會的策略的一些要點。

We have strong competitive positioning as their platform of choice for businesses to improve their online visibility of this growing trend of businesses of all sizes, investing more time, effort and resources into enhancing their online visibility via leveraging our unique data sets to differentiate ourself in the market.

我們擁有強大的競爭優勢，作為企業的首選平台，可以提高各種規模企業的線上可見度，並投入更多的時間、精力和資源，透過利用我們獨特的數據集來提高其線上可見度，從而在行業中脫穎而出。

So we continue to make progress on each of our growth pillars.

因此，我們繼續在每個成長支柱上取得進展。

In the first quarter, we reported nearly 112,000 paying customers and now have over 1,125,000 active users.

第一季度，我們有近 112,000 名付費客戶，目前活躍用戶超過 1,125,000 名。

We believe there are millions of marketers and business owners who will benefit from our platform, and we plan to grow both our paying customers and our free equity base.

我們相信有數以百萬計的行銷人員和企業主將從我們的平台中受益，我們計劃擴大我們的付費客戶和我們的自由股權基礎。

So we have an extensive, loyal install base, which spans over 160 countries across all industries and market segments from solar panels to Fortune 500 companies.

因此，我們擁有廣泛、忠誠的安裝基礎，涵蓋 160 多個國家/地區，涵蓋從太陽能板到財富 500 強公司的所有行業和細分市場。

We continue to deliver higher value to our customers by cross-selling and upselling within our base.

我們透過在我們的基地內進行交叉銷售和追加銷售，繼續為客戶提供更高的價值。

And we increase our focus on moving upmarket.

我們更加重視進軍高端市場。

We expect an increase in average.

我們預計平均數會增加。

Our pool reached an important today is nearing 32 hundreds are strong profitability, a continuous mode and accretive to our base, our of us to continue to invest in the business.

今天我們的資金池達到了一個重要的目標，接近 3200 家，盈利能力很強，是一種持續的模式，可以增加我們的基礎，我們可以繼續投資於該業務。

We continue to build on our technology and customer foundation with investments designed to cover our business objectives.

我們繼續透過旨在實現我們業務目標的投資來鞏固我們的技術和客戶基礎。

Our reinvestments beverages includes launching new AI based tools like compensate and expanding into enterprise.

我們的再投資包括推出新的基於人工智慧的工具，例如補償和擴展到企業。

As we highlighted last quarter, we officially have soft-launched an enterprise issue of product into the market in late October 2023, and we are pleased to announce it is now generally available.

正如我們在上季度所強調的那樣，我們已於 2023 年 10 月下旬正式向市場試推出企業版產品，我們很高興地宣布該產品現已全面上市。

It is already being used by a select number of large-scale business customers, including one of the largest apparel companies and one of the largest market research companies.

它已被一些精選的大型企業客戶使用，其中包括最大的服裝公司之一和最大的市場研究公司之一。

While we are still in the early stages, the initial signs are we are seeing a very encouraging.

雖然我們仍處於早期階段，但初步跡象表明我們看到了非常令人鼓舞的情況。

Importantly, our enterprise offering and has the opportunity to create a meaningful inflection in our pool.

重要的是，我們的企業產品有機會在我們的池中創造有意義的變化。

And this product carries our pools, which tends to be 10 to 15 times on a company average.

這個產品承載著我們的資金池，這往往是公司平均值的 10 到 15 倍。

We believe our Illinois adopter customers are experiencing significant returns on the investments after migration to the platform, features like automated workflows, corporate-level SG&A controls, customized dashboards and building professional service network are helping our customers drive meaningful improvements in efficiency while also delivering significant time and cost savings.

我們相信，我們的伊利諾伊州採用者客戶在遷移到該平台後將獲得可觀的投資回報，自動化工作流程、企業級SG&A 控制、定制儀表板和構建專業服務網絡等功能正在幫助我們的客戶推動有意義的效率改進，同時也提供顯著的成果節省時間和成本。

Since then, if I recall, we remain focused on continuing to grow our core business, upselling and cross-selling our offerings and expanding our platform.

從那時起，如果我記得的話，我們仍然專注於繼續發展我們的核心業務、追加銷售和交叉銷售我們的產品以及擴展我們的平台。

In conclusion, I am very pleased with our start to 2020 outlook, and I'm optimistic about our ability to capitalize on future growth opportunities throughout the year.

總之，我對 2020 年的開局前景感到非常滿意，並且對我們全年利用未來成長機會的能力感到樂觀。

I will now turn the call over to Eugene and Brian to discuss the results of the quarter and our outlook in more detail.

我現在將把電話轉給尤金和布萊恩，更詳細地討論本季的業績和我們的前景。

Thank you, Ole.

謝謝你，奧萊。

We delivered another solid quarter, and I'm increasingly optimistic about our ability to deliver durable growth over the long term.

我們又實現了一個穩健的季度，我對我們實現長期持久成長的能力越來越樂觀。

I wanted to start with the migration.

我想從遷移開始。

Cembra is making up marks last quarter, I discussed a segment of our customer base, sophisticated accounts that we believe represents a significant growth engine for us.

Cembra 上個季度正在彌補成績，我討論了我們客戶群的一部分，我們認為複雜的客戶代表了我們的重要成長引擎。

Companies that fall into this broad segment are businesses that tend to have multiple marketing team members that are each Cembra user and they generally have significantly higher RPU or average revenue per user than our average and meaningfully stronger net revenue retention than ours.

屬於這一廣泛細分市場的公司往往擁有多個行銷團隊成員，每個成員都是Cembra 用戶，他們的RPU 或每個用戶的平均收入通常明顯高於我們的平均水平，且淨收入留存率明顯高於我們。

The relative strength of this customer set users increased confidence that our new enterprise product will be met with strong adoption, further supporting our goal of driving strong durable growth on both our top and bottom line to service this upmarket customers most effectively, we have been making several important adjustments to our go-to-market model to optimize LTV to cap ratio over the past several quarters, we are leveraging our product-led low-touch sales strategy and shifted more of our investment focus to the high value enterprise area.

該客戶群的相對實力增加了我們的新企業產品將得到廣泛採用的信心，進一步支持我們推動營收和利潤強勁持久增長的目標，以最有效地服務這些高端客戶，我們一直在努力在過去幾個季度中，我們對上市模式進行了幾次重要調整，以優化生命週期價值與上限比率，我們正在利用以產品為主導的低接觸銷售策略，並將更多的投資重點轉向高價值企業領域。

First, we have been realigning some of our sales investments from the SMB sector into this upmarket category to focus on converting our existing enterprise customers to use our new enterprise SCO product.

首先，我們一直在將一些銷售投資從中小企業領域重新調整到這個高端類別，以專注於將我們現有的企業客戶轉變為使用我們新的企業 SCO 產品。

Second, we have been making investments in our quote-to-cash process to properly handle the complexities that often surround enterprise clients.

其次，我們一直在對報價到現金流程進行投資，以妥善處理企業客戶經常遇到的複雜問題。

These are things like establishing a deal desk and building out proper discipline around large deals, sales parts we have been making this investments for some time.

這些事情包括建立一個交易台並圍繞大型交易建立適當的紀律，我們已經在這方面進行了一段時間的投資。

And the significant presence we already have in this segment gives us confidence in our ability to successfully handle the ramp that we foresee from our enterprise product.

我們在這領域已經擁有的重要地位讓我們相信我們有能力成功應對我們從企業產品中預見的成長。

In addition to enterprise product initiatives, we continue to leverage AI in our platform.

除了企業產品計劃之外，我們還繼續在我們的平台中利用人工智慧。

We continue to see excellent adoption of some of our AI products and features included in our recently released a high-powered content creation tool called content chips.

我們繼續看到我們最近發布的高效能內容創建工具（稱為內容晶片）中包含的一些人工智慧產品和功能得到了出色的採用。

Content shake is a smart pricing tool that combines AI with real live competitor insights to guide you from ideation to publishing directly to the blog, January's SEO friendly articles, Kris personalized content ideas, composes copy with AI and helps you optimize for organic traffic engagement and ranking.

Content shake 是一款智慧定價工具，它將AI 與即時競爭對手的洞察相結合，引導您從構思到直接發佈到部落格、1 月份的SEO 友善文章、Kris 個人化內容創意、使用AI 撰寫文案並幫助您優化有機流量參與度和排行。

We're monetizing content shake on its own, but it is important to understand that we are also monetizing AI in several different points.

我們正在透過內容震動本身來貨幣化，但重要的是要了解我們也在幾個不同的方面透過人工智慧貨幣化。

First, we have a features built into all of our tools and the inclusion of those features help us drive new clients acquisition and also aid in retention as they improve the customer experience.

首先，我們的所有工具中都內建了一些功能，這些功能的加入有助於我們推動新客戶的獲取，並在改善客戶體驗時幫助保留客戶。

Second, we have structured some of our product tiers to only include the AI. features in the higher price tiers.

其次，我們已經建立了一些產品層，僅包含人工智慧。較高價格層的功能。

This attracts clients to the higher price tiers and contributes to overall RPU growth.

這會吸引客戶選擇更高的價格層，並有助於整體 RPU 的成長。

And the third way we monetize AI is through separately sold subscriptions like the content shake products I just mentioned.

我們將人工智慧貨幣化的第三種方式是透過單獨銷售的訂閱，就像我剛才提到的內容搖晃產品。

We're also using AI to help drive efficiency in our own R&D departments.

我們也使用人工智慧來幫助提高我們自己的研發部門的效率。

And we have recently seen success using our AI tools for all marketing efforts where we are not only producing more content, but we are also making higher quality content.

最近，我們在所有行銷工作中使用人工智慧工具都取得了成功，我們不僅製作了更多內容，而且還製作了更高品質的內容。

Step ranks well and drives improved engagement in summary, I'm confident in SAM, Russia's positioning in search market and our extensive product portfolio.

Step 排名良好，並推動了參與度的提高。

We're seeing increased adoption of our AI products and continuing to innovate and bring new offerings to the market.

我們看到我們的人工智慧產品越來越多地被採用，並不斷創新並向市場推出新產品。

Our sophisticated accounts are growing and helping to fuel our prudent and strong net retention.

我們複雜的帳戶不斷增長，有助於推動我們謹慎而強勁的淨保留。

And I'm very excited about our ability to service our market customers and continue to expand our portfolio of offerings.

我對我們為市場客戶提供服務並繼續擴展我們的產品組合的能力感到非常興奮。

I will now turn the call over to Brian, who will provide a more detailed discussion of our financial performance and guidance.

我現在將把電話轉給布萊恩，他將更詳細地討論我們的財務表現和指導。

Go ahead, Brian.

繼續吧，布萊恩。

Thank you, Eugene.

謝謝你，尤金。

As Oleg and Eugene mentioned, we had a strong first quarter across the board.

正如奧列格和尤金所提到的，我們第一季的整體業績表現強勁。

Our revenue was 85.8 million, growing 21% year over year growth was driven by new customer additions and expansion of our average revenue per customer as we continue to execute on our cross-sell and upsell strategy.

我們的收入為 8,580 萬美元，年成長 21%，成長的推動因素是新客戶的增加以及我們繼續執行交叉銷售和追加銷售策略時每個客戶平均收入的擴大。

Our annual recurring revenue for the quarter grew 21% year over year to $354.2 million.

本季我們的年度經常性收入年增 21%，達到 3.542 億美元。

There are several factors that can cause our net new ARR to fluctuate from quarter to quarter.

有幾個因素可能導致我們的淨新 ARR 逐季度波動。

And as a result, we believe ARR trends are best observed on an annual rather than quarterly basis.

因此，我們認為，最好以年度而非季度為基礎觀察 ARR 趨勢。

Our calculated ARR per paying user grew 9.8% year over year.

我們計算出的每位付費用戶 ARR 年增 9.8%。

And our dollar-based net revenue retention for the first quarter was 107%.

我們第一季以美元計算的淨收入保留率為 107%。

We believe our dollar-based net revenue retention has troughed and over time should begin to trend back up, particularly as our more sophisticated accounts increase as a percentage of our mix.

我們相信，我們以美元為基礎的淨收入保留已經見底，隨著時間的推移，應該會開始回升，特別是當我們更複雜的帳戶在我們的組合中所佔的比例增加時。

Since these customers have higher net retention than our company average, we recognize the importance of having strong retention metrics and accordingly, have recently made some changes to our sales team's incentives that we expect could exert some gentle upward pressure on these figures.

由於這些客戶的淨保留率高於我們公司的平均水平，因此我們認識到擁有強大的保留指標的重要性，因此，最近對我們的銷售團隊的激勵措施進行了一些更改，我們預計這可能會對這些數字施加一些溫和的上行壓力。

Moving down the income statement.

將損益表向下移動。

During the first quarter, we had positive non-GAAP operating income of $9.7 million.

第一季度，我們的非 GAAP 營業收入為 970 萬美元。

We reported another significant improvement to our non-GAAP operating margin of 11.3% which is up 20 basis points year over year and surpassed our guidance for the first quarter.

我們報告稱，我們的非 GAAP 營業利潤率再次顯著改善，達到 11.3%，同比增長 20 個基點，超過了我們第一季的指導。

This improvement is a result of a number of factors.

這種改進是多種因素共同作用的結果。

First, our gross margin improved nearly 80 basis points year over year to 82.9%.

首先，我們的毛利率年增近80個基點至82.9%。

Gross margin benefited from higher revenue and our continued ability to gain scale and leverage from our efficiently engineered platform.

毛利率得益於收入的增加以及我們透過高效設計的平台持續擴大規模和發揮槓桿作用的能力。

We continue to expect strong gross margins above 80% in the near term and view the way in which our stack is engineered as a key competitive differentiator.

我們繼續預期短期內毛利率將超過 80%，並將我們的堆疊設計方式視為關鍵的競爭優勢。

Our healthy gross margins also provides us the flexibility to invest below the gross profit line, which gives us a structural advantage in the market.

我們健康的毛利率也為我們提供了在毛利線以下進行投資的靈活性，這使我們在市場上具有結構性優勢。

Second, we continue to execute on our commitment to drive efficiencies while also pursuing growth.

其次，我們持續履行提高效率的承諾，同時追求成長。

It is important to note that we have been able to increase our operating margins while making go-to-market investments for our enterprise products.

值得注意的是，我們在對企業產品進行市場投資的同時，也能夠提高營業利潤。

We expect that we will continue to be able to make incremental investments to strengthen our position here while also driving further operating leverage in the business.

我們預計，我們將能夠繼續進行增量投資，以鞏固我們在此處的地位，同時進一步推動業務的營運槓桿。

And we don't expect to see any headwinds to a more traditional SMB business as we realign these resources.

當我們重新調整這些資源時，我們預計傳統的中小企業業務不會遇到任何阻力。

This is because we pursue a product-led growth strategy that leverages a self-service sign-up process and drive meaningful leverage that we're able to reinvest.

這是因為我們奉行以產品為主導的成長策略，該策略利用自助服務註冊流程並推動我們能夠進行再投資的有意義的槓桿作用。

Turning to the balance sheet, we ended the quarter with cash and cash equivalents and short-term investments of $243.1 million, up $4.6 million from the previous quarter.

轉向資產負債表，本季末我們的現金和現金等價物以及短期投資為 2.431 億美元，比上一季增加 460 萬美元。

Our cash flow from operations in the first quarter was $14.8 million.

第一季我們的營運現金流為 1,480 萬美元。

Turning to guidance, I'm confident in the underlying trends in the business and capabilities of our team that continue to deliver strong growth and profitability.

談到指導，我對我們團隊的業務和能力的基本趨勢充滿信心，這些趨勢將繼續帶來強勁的成長和獲利能力。

Our business is off to a strong start this year, and we are encouraged not only by what we have accomplished so far, but we are optimistic about what we see as the opportunities in front of us.

今年我們的業務開局良好，我們不僅對迄今為止所取得的成就感到鼓舞，而且對擺在我們面前的機會感到樂觀。

For the second quarter of 2024, we expect revenue in the range of $89.1 million to $90.1 million, which at the midpoint would represent growth of approximately 20% year over year.

對於 2024 年第二季度，我們預計營收在 8,910 萬美元至 9,010 萬美元之間，中間值將年增約 20%。

We expect second quarter non-GAAP operating margin to be approximately 11%.

我們預計第二季非 GAAP 營運利潤率約為 11%。

For the full year 2024, we are raising our guidance and expect revenue in a range of $366 million to $369 million, up from our prior range of $364 to $368 million, which translates to growth of 19% to 20% and represents a $1.5 million increase at the midpoint.

對於 2024 年全年，我們提高了指導，預計收入範圍為 3.66 億美元至 3.69 億美元，高於之前的 364 美元至 3.68 億美元，這意味著增長 19% 至 20%，相當於 150 萬美元在中點增加。

We expect full year 2024 non-GAAP operating margins to be between 10.5% and 11.5%, up 50 basis points from our prior guidance range and full year free cash flow margins to be approximately 8%.

我們預計 2024 年全年非 GAAP 營業利潤率將在 10.5% 至 11.5% 之間，比我們先前的指導範圍上升 50 個基點，全年自由現金流利潤率將約為 8%。

To help you with your modeling, the difference between our non-GAAP operating margin and our free cash flow margin is the result of interest income offset by capital expenditures and cash taxes.

為了幫助您進行建模，我們的非公認會計原則營業利潤率和自由現金流量利潤率之間的差異是利息收入被資本支出和現金稅抵消的結果。

Finally, our guidance assumes a euro exchange rate of 1.08. As a reminder, approximately 30% of our expenses are denominated in euros.

最後，我們的指導假設歐元匯率為 1.08。提醒一下，我們大約 30% 的開支以歐元計價。

In closing, we are confident in our ability to grow and scale our business and remain committed to a disciplined and balanced approach to spending, we are focused on driving improved efficiency and profitability, even while we invest in future growth opportunities that we expect will deliver long-term value to our shareholders.

最後，我們對發展和擴大業務的能力充滿信心，並繼續致力於採取嚴格和平衡的支出方式，我們專注於提高效率和盈利能力，即使我們投資於我們預計將帶來的未來增長機會為我們的股東帶來長期價值。

With that, we are happy to take your questions.

因此，我們很樂意回答您的問題。

Operator, please open the line for questions.

接線員，請開通提問線。

(Operator Instructions) Scott Berg, Needham.

（操作員說明）Scott Berg，Needham。

Hi, everyone.

大家好。

Next quarter here and thanks for taking my questions.

下個季度就到這裡，感謝您提出我的問題。

I have two, I wanted to start with a macro question a little bit more high level, your ARR additions last three quarters have been and very good, especially on a year-over-year basis?

我有兩個問題，我想從一個更高層次的宏觀問題開始，你們過去三個季度的 ARR 成長非常好，尤其是與去年同期相比？

Yes, we're seeing demand for software that's predominantly sold to SMB type companies be a little bit inconsistent or softer over the last several quarters.

是的，我們發現過去幾季對主要銷售給中小企業類型公司的軟體的需求有點不穩定或疲軟。

Can you help us understand maybe something in the product or maybe something in your go to market strategy that's helping you kind of bucked this trend to deal through off some really good results last couple of quarters.

您能否幫助我們了解產品中的某些內容，或您的市場推廣策略中的某些內容，這些內容可以幫助您扭轉這一趨勢，在過去幾個季度取得一些非常好的業績。

Thank you.

謝謝。

And you have a list of if market condition, I would say we don't see any kind of significant changes of the macro for all businesses in all segments, we believe which is still challenging.

如果你有一份市場狀況清單，我想說我們沒有看到所有細分市場的所有業務的宏觀發生任何重大變化，我們認為這仍然具有挑戰性。

At the same time we delivered, I believe, not Lumistar results in current and current environment.

同時，我相信，在當前和當前的環境下，我們交付的結果並不是 Lumistar。

And we have a right?

我們有權利嗎？

Yes.

是的。

I mean, Scott, the key for us is no macro is impacting us just like every other company.

我的意思是，史考特，對我們來說關鍵是沒有宏觀因素像其他公司一樣影響我們。

But we're faring really well.

但我們過得非常好。

We have a really strong market position, really good market secular market shifts that are happening.

我們擁有非常強大的市場地位，非常好的市場正在發生長期市場轉變。

We're suspending and companies are shifting from one area to an area where we actually provide good technology and service, and we have a really strong competitive moat.

我們正在暫停，公司正在從一個領域轉移到我們實際上提供良好技術和服務的領域，我們擁有非常強大的競爭護城河。

And then more recently, we've been able to launch a lot of new AI products that we're monetizing in the three ways that Eugene mentioned earlier.

最近，我們已經能夠推出許多新的人工智慧產品，我們透過尤金之前提到的三種方式來貨幣化。

And of course, we have our upmarket play into enterprise.

當然，我們在企業領域也有高端業務。

So we think there's a lot of factors that are allowing us to navigate through this environment and still deliver really strong durable growth.

因此，我們認為有很多因素使我們能夠度過這種環境並仍然實現真正強勁的持久成長。

Got it.

知道了。

Helpful.

有幫助。

And then the last question for me is, Brian, you mentioned you expect in our to trough in this most recent quarter here sounds like you make some system changes on the sales side to maybe incent that cross-sell expansion a little bit more.

然後我的最後一個問題是，布萊恩，你提到你預計我們會在最近一個季度陷入低谷，這聽起來像是你在銷售方面進行了一些系統更改，以可能更多地刺激交叉銷售擴張。

But how do we think about the impact of your new enterprise sales motion on our overtime.

但我們如何看待你們新的企業銷售動議對我們加班的影響。

Is that a sale that's still very much a land and expand opportunity, maybe buy modules or seats or are your enterprise customers having the opportunity to maybe land much larger that might not offer some expansion opportunities there?

這次銷售是否仍然是一個土地和擴展機會，也許購買模組或席位，或者您的企業客戶是否有機會獲得更大的土地，但可能不會在那裡提供一些擴展機會？

Yes, sure.

是的，當然。

Yes.

是的。

So two things and are really pleased with the performance I'm pleased with the performance over many quarters, we've been able to maintain very strong, durable retention on a gross and a net basis.

因此，有兩件事對我們的表現非常滿意，我對許多季度的表現感到滿意，我們能夠在毛額和淨額基礎上保持非常強勁、持久的保留率。

And in the most recent fourth quarter, we've seen a trough at 107%.

在最近的第四季度，我們看到了 107% 的低潮。

And we have talked about that over the past couple of quarters that it is somewhat of a lagging metric that measures performance over 21, 24 month period.

在過去的幾個季度中，我們已經討論過，它在某種程度上是衡量 21、24 個月期間績效的滯後指標。

So it's doing exactly what we expected and troughing, and we expect it will tick up over time, especially as we move up market and start to take advantage of the enterprise SEO product.

因此，它的表現完全符合我們的預期和低谷，我們預計它會隨著時間的推移而上升，特別是當我們進入高端市場並開始利用企業 SEO 產品時。

The key for us is for sure, there are land-and-expand components to our enterprise play, but our early potential there is more of an expands.

對我們來說，關鍵是肯定的是，我們的企業遊戲中有土地和擴張的組成部分，但我們的早期潛力更多的是擴張。

We've been talking about the fact that we do already have more than 5,000 enterprise accounts.

我們一直在談論這樣一個事實：我們確實已經擁有 5,000 多個企業帳戶。

They've been very loyal and have adopted a majority of our platform and are asking for more features to do their best work.

他們非常忠誠，並採用了我們的大部分平台，並要求提供更多功能來更好地工作。

We've delivered that with the launch of our new enterprise SEO products.

我們透過推出新的企業 SEO 產品實現了這一目標。

And as you know, that commands are prove about 10 to 15 times what our average ARR per paying customer.

如您所知，該指令的執行速度大約是我們每個付費客戶的平均 ARR 的 10 到 15 倍。

So we do expect that to be in the early days and expand of our existing enterprise accounts and therefore, having good upward pressure on our metrics.

因此，我們確實預計這將是在早期階段，並擴大我們現有的企業帳戶，因此，我們的指標將面臨良好的上行壓力。

Understood.

明白了。

Thank you for taking my questions.

感謝您回答我的問題。

Surinder Thind, Jefferies.

蘇林德·辛德，傑弗里斯。

And thank you a follow on to kind of the enterprise customers in your local markets.

感謝您對當地市場的企業客戶的追蹤。

Can you maybe talk about them behavior or potential between the US enterprise customers and maybe international opportunity?

您能否談談美國企業客戶之間的行為或潛力以及國際機會？

Yes.

是的。

Thank you.

謝謝。

Thank you for the question.

感謝你的提問。

Also.

也.

Of course, United States is a number one market right now for us, almost half of the opportunity from our point of view at the same time.

當然，美國目前對我們來說是第一大市場，從我們的角度來看，美國幾乎同時擁有一半的機會。

If you actually look at a list of our early customers that we acquired since soft launch in the end of October, we are at least half of them are international companies.

如果您實際上查看我們自 10 月底軟啟動以來獲得的早期客戶名單，您會發現其中至少有一半是國際公司。

We have very strong traction in Germany and France and other markets.

我們在德國、法國和其他市場擁有非常強大的吸引力。

And as you probably know, in general, we always had a philosophy in mind to build products for global use because even our US customers there are a lot of them are also multinational companies who sell overseas and across the globe.

正如您可能知道的那樣，總的來說，我們始終秉持著打造全球使用產品的理念，因為即使我們的美國客戶也有很多也是在海外和全球範圍內銷售的跨國公司。

So from that point of view, product is definitely built for global use.

因此從這個角度來看，產品絕對是為全球使用而設計的。

And in terms of go to market again, Cembra also has presence in over 100, three different countries for enterprise.

在再次進入市場方面，Cembra 也在三個不同國家的 100 多個企業開展業務。

The list is probably going to be a little bit smaller, but still we're going to ramp on our team is based on geographic presence of our customer base proportionately.

這份清單可能會稍微小一些，但我們仍然會根據客戶群的地理分佈按比例增加我們的團隊。

And another thing you know, world is actually not as big as it might seem because from a go-to-market point of view, what matters the most is, what languages people speak.

你知道的另一件事是，世界實際上並不像看起來那麼大，因為從進入市場的角度來看，最重要的是人們講什麼語言。

And you know, you probably know there are only several really popular languages and will need to scale sales force with native speakers who can help us with go-to-market in those markets.

而且您可能知道只有幾種真正流行的語言，並且需要擴大母語人士的銷售隊伍，他們可以幫助我們進入這些市場。

But that's really pretty much all the work that needs to be done in terms of international, our international expansion.

但這實際上是我們在國際化、國際擴張方面需要完成的所有工作。

Thank you.

謝謝。

And then as a follow-up on just the sales structure for the enterprise opportunity here, how would you describe the changes that you've made?

然後，作為此處企業機會的銷售結構的後續行動，您將如何描述您所做的改變？

I mean, you've kind of talked about it on the call, but how disruptive are the changes or how significant are the changes?

我的意思是，您在電話會議上談到了這一點，但這些變化有多大破壞性或變化有多大？

Because obviously, SMB sales are very different than enterprise sales.

因為顯然，中小企業銷售與企業銷售有很大不同。

And then how much more change should we expect before we kind of get to what I would call full productivity levels?

那麼，在我們達到我所說的全面生產力水平之前，我們還應該期待多少變化呢？

Yes.

是的。

So good question.

好問題。

Just two questions there.

只有兩個問題。

One is what changes that we're making to SMB and how does that impact it?

一是我們正在對中小企業做出哪些改變以及這對其有何影響？

And then what investments in enterprise?

那麼對企業進行哪些投資呢？

So on the SMB side, we've been very fortunate that we have a very low cost, frictionless selling process.

因此，在中小企業方面，我們非常幸運，我們擁有成本非常低、無摩擦的銷售流程。

We've been able to enhance that over the last couple of years with AI and automation that has allowed us to really maintain good success and efficiency with a product-led selling motion.

在過去的幾年裡，我們已經能夠透過人工智慧和自動化來增強這一點，這使我們能夠透過以產品為主導的銷售活動真正保持良好的成功和效率。

And because of that, we've been able to efficiently grow and manage the transactions for our SMBs and mid-market customers that's given us a structural advantage.

正因為如此，我們能夠有效地成長和管理中小企業和中端市場客戶的交易，這給了我們結構性優勢。

It's allowed us to reinvest that efficiency into an enterprise upmarket play.

它使我們能夠將這種效率重新投資到企業高端市場。

And we have been doing that over the past couple of years.

過去幾年我們一直在這樣做。

And there's three fundamental things that we're focused on.

我們專注於三個基本的事情。

One is their systems and infrastructure that we need sort of a demand generation engine, a CRM engine that manages the lead to opportunity process in an ERP system to manage quote-to-cash.

一是他們的系統和基礎設施，我們需要一種需求產生引擎，一個 CRM 引擎，用於管理 ERP 系統中的潛在客戶到機會流程，以管理報價到現金。

So we've been investing that and preparing for these types of transactions.

因此，我們一直在投資並為此類交易做準備。

From a human resources perspective, we're investing in a deal desk to help facilitate the transactions and the negotiations with procurements and of course, on scaling up the enterprise sellers that have that skill set and experience to be able to develop relationships and strong partnerships with companies to be able to evolve from just a transaction to a value-based sale that will allow us to be successful.

從人力資源的角度來看，我們正在投資一個交易台，以幫助促進交易和採購談判，當然，也擴大擁有技能和經驗的企業賣家的規模，以便能夠發展關係和牢固的合作夥伴關係與公司一起能夠從單純的交易發展為基於價值的銷售，這將使我們取得成功。

So we're making those investments.

所以我們正在進行這些投資。

We're not expecting that this will be disruptive because the SMB dynamics have been things efficiencies that have been building in the business over time, and we're able to see the impact and then adjust the investments accordingly.

我們預計這不會造成破壞，因為中小企業的動態是隨著時間的推移在業務中建立的效率，我們能夠看到影響，然後相應地調整投資。

And for enterprise, it's new for us.

對於企業來說，這對我們來說是新的。

So while we do have more than 5,000 enterprise accounts, this top market selling motion and the enterprise SEO product is new and we're taking into account the risks and the opportunity and setting expectations accordingly.

因此，雖然我們確實擁有 5,000 多個企業帳戶，但這種頂級市場銷售動議和企業 SEO 產品是新的，我們正在考慮風險和機遇，並相應地設定期望。

Scott Aelita, KeyBanc.

斯科特·艾麗塔，KeyBanc。

Hey, guys.

大家好。

It's Jackson Ader from KeyBanc Capital Markets.

我是來自 KeyBanc Capital Markets 的 Jackson Ader。

I hope you're doing well.

我希望你一切都好。

So the first question is from Brian.

第一個問題是布萊恩提出的。

I know you guys have talked about the balance of growth and profit.

我知道你們已經談到了成長和利潤的平衡。

But just given the results of late, have shown more more upside kind of being heavily skewed toward margin, is there a could you in fact, deliver a little bit faster ARR growth if you were to make some additional investments.

但考慮到最近的結果，已經顯示出更多的上行趨勢嚴重偏向於利潤率，如果您要進行一些額外的投資，您實際上是否可以實現更快的 ARR 成長。

And I'm curious if the answer is yes, like where would you make those investments?

我很好奇答案是否是肯定的，例如您會在哪裡進行這些投資？

Yes, this is a really, really good question.

是的，這是一個非常非常好的問題。

It's something that we think about every single day.

這是我們每天都在思考的事情。

We're always challenging ourselves and the leaders throughout the organization to make sure they're focusing on investments that will drive long-term growth and value for us and our shareholders and our goal here, we've talked about this our goal at some rushes to achieve in an efficient frontier.

我們總是挑戰自己和整個組織的領導者，以確保他們專注於能夠為我們和我們的股東以及我們的目標帶來長期成長和價值的投資，我們已經在一些地方談到了我們的目標急於在高效領域取得成就。

So we want to be investing in the business.

所以我們想投資這項業務。

So long as that investment drives incremental results, but we don't want to be overspending and getting past that efficient frontier where the incremental return doesn't justify the investment for Sam rush in 2024.

只要該投資能帶來增量成果，但我們不想過度支出並超越有效邊界，因為增量回報不足以證明 Samrush 在 2024 年的投資是合理的。

We are investing quite a bit.

我們正在投入相當多的資金。

So we're investing on this enterprise upmarket play, as evidenced by the most recent general availability of enterprise SEO.

因此，我們正在投資這種企業高端市場，正如企業 SEO 的最新普遍可用性所證明的那樣。

We've been doing a lot of product investments in a I knew Gene talked about one new product content shake, a I and a number of others earlier this morning that we've monetized in a few different ways, and we're constantly focused on what that next close adjacency is for our customers that will allow us to expand our platform beyond our core competency.

我們一直在進行大量的產品投資，我知道吉恩談到了一種新的產品內容震動，今天早上早些時候，我和其他一些產品我們已經通過幾種不同的方式實現了貨幣化，並且我們不斷專注於關於我們的客戶的下一個緊密鄰接是什麼，這將使我們能夠將我們的平台擴展到我們的核心能力之外。

So we're continuing to invest.

所以我們會繼續投資。

We do believe in 2024 and the foreseeable future that there is a lot of opportunity.

我們確實相信 2024 年和可預見的未來會有很多機會。

We have a strong foundation with 112,000 paying customers over 1 million for users.

我們擁有堅實的基礎，擁有 112,000 名付費客戶，用戶數量超過 100 萬。

And we have quite a bit of cash on the balance sheet to put to work and we'll be doing that over time.

我們的資產負債表上有相當多的現金可以投入使用，隨著時間的推移，我們會這樣做。

Okay, great.

好的，太好了。

And then just a quick follow-up kind of practical question.

然後是一個快速跟進的實際問題。

Does those 5,000 enterprise customers that you're talking about?

您所說的 5,000 家企業客戶是嗎？

What is can we get a sense for like for what their current RPU looks like.

我們可以了解一下他們目前的 RPU 是什麼樣子的嗎？

It looks like today today, the propensity or the know that willingness I guess, to spend 10 to 15 times more than your typical customer?

看起來今天今天，我猜你有比你的典型客戶多花 10 到 15 倍的傾向或意願嗎？

Yes, definitely, they already pay more and their expansion, their LTVs much higher than average as well.

是的，當然，他們已經支付了更多費用，而且他們的擴張、LTV 也遠高於平均水平。

So they're not just of <unk> buying more expensive subscriptions.

所以他們不僅僅是購買更昂貴的訂閱。

They're more active they're more likely to have multiple people using the product of.

他們更加活躍，更有可能讓多人使用他們的產品。

So they have all the signs that that correlate with PI will end.

因此，所有跡象表明與 PI 相關的現象將會結束。

Adam Hotchkiss, Goldman Sachs.

亞當·霍奇基斯，高盛。

Great.

偉大的。

Thanks for taking the questions.

感謝您提出問題。

I guess to start, I just wanted to touch a little bit more on the enterprise product.

我想首先，我只是想多接觸企業產品。

When it when we look at the early access page, we see stats like Ten-X, faster SEO productivity and generating a 360 degree view of customer data, which seems like a pretty ambitious message to send that prospective enterprises.

當我們查看早期訪問頁面時，我們會看到諸如Ten-X 之類的統計數據、更快的SEO 生產力以及生成客戶數據的360 度視圖，這似乎是向潛在企業發送的一個非常雄心勃勃的信息。

So could you just take a step back and give us a sense for what enterprise customers are asking for that the tiered offerings aren't giving them today.

那麼，您能否退後一步，讓我們了解企業客戶的需求，而分層產品目前無法滿足他們的需求。

And then when you think about how much of that is just a function of customers wanting to run more volume through your system versus actively looking to you to co-innovate on incremental products?

然後，當您考慮其中有多少只是客戶希望透過您的系統運行更多容量而不是積極尋求您在增量產品上共同創新的函數時？

How would you describe the balance of that customer relationship?

您如何描述該客戶關係的平衡？

Great question.

很好的問題。

So our yes, I mean, of course, you know to sell you have to sell.

所以我們是的，我的意思是，當然，你知道要出售你必須出售。

So of course, Ten-X is definitely achievable, but people need to put work in the you know, fine tune the product to their needs, which we help them win.

當然，Ten-X 絕對是可以實現的，但人們需要投入精力，根據他們的需求微調產品，我們幫助他們獲勝。

But to give you just a couple of examples of why I think 10 access, maybe even conservative, we have, for example, customers who use our internal linking module.

但舉幾個例子來說明為什麼我認為 10 次訪問（甚至可能是保守的），例如，我們有使用我們內部連結模組的客戶。

And when you do internal Lincoln for a small website, it's hard you can do it using whiteboard.

當您為小型網站進行內部林肯時，很難使用白板來完成。

You just put 20 pages and figure out how to connect them now our enterprise customers, they have millions of pages.

你只需放置 20 個頁面，然後弄清楚如何將它們連接起來，現在我們的企業客戶，他們有數百萬個頁面。

So there is no whiteboard in the world that is big enough to put all those pages and figure out how to connect them.

因此，世界上沒有足夠大的白板可以放置所有這些頁面並弄清楚如何連接它們。

So that's why we crawl their website.

這就是我們抓取他們網站的原因。

We understand what other websites linked to them.

我們了解哪些其他網站連結到他們。

So we can figure out externally profile internally and profile the map of the website and figure out what pages should be connected to other pages and sort of share that authority of the page with other pages using AI and machine learning.

因此，我們可以在內部找出外部分析並分析網站的地圖，並找出哪些頁面應該連接到其他頁面，並使用人工智慧和機器學習與其他頁面分享該頁面的權限。

And if you if you think about the incremental value, it's not just being 10 times more productive, it's actually finally being able to do the work that you would not be able to do without this technology and the difference between tiered offerings like that, we sell to SMBs and enterprise that SMBs don't have websites with millions of pages.

如果您考慮增量價值，您會發現，這不僅僅是生產力提高 10 倍，實際上最終能夠完成沒有這項技術就無法完成的工作以及此類分層產品之間的差異，我們向中小企業和企業推銷中小企業沒有擁有數百萬頁的網站。

So they don't need those features while large enterprises have millions of pages.

因此，當大型企業擁有數百萬個頁面時，他們不需要這些功能。

So they need additional products.

所以他們需要額外的產品。

And that's technically a philosophy that we have with Enterprise Products, things that we build in enterprise cloud platforms.

從技術上講，這就是我們對企業產品（我們在企業雲端平台中建構的產品）的理念。

They're purely incremental.

它們純粹是增量的。

They're not things that are just fancy versions of things you can buy with our SMB offering.

它們不僅僅是您可以透過我們的 SMB 產品購買的產品的精美版本。

There are incremental to use the same technology and data, but they solve totally different scope of problems that only big companies.

有增量使用相同的技術和數據，但它們解決的問題範圍完全不同於大公司。

Okay.

好的。

Thank you, Eugene.

謝謝你，尤金。

That's incredibly helpful.

這非常有幫助。

And then could you just talk a little bit more about your professional services strategy here?

那麼您能在這裡多談談您的專業服務策略嗎？

As you move up market that seem through what we've seen that you're opting to do that and collaborate with enterprise free rent fleet freelancers, excuse me, to help enterprises is it fair to say that this will exist in the place of building out more meaningful services in house.

當你進入市場時，從我們所看到的情況來看，你選擇這樣做，並與企業免費租賃車隊自由職業者合作，對不起，幫助企業，公平地說，這將存在於建築場所提供更有意義的內部服務。

And then maybe, Brian, if you could just touch on what the monetization arrangements look like with those free freelancers, that would be useful.

布萊恩，如果你能談談那些自由工作者的貨幣化安排是什麼樣的，那可能會很有用。

Yes, great question.

是的，很好的問題。

And I probably should have answered this in the first quarter as well because, of course, our services is another another area where enterprise product is differentiated from SMB product.

我可能也應該在第一季回答這個問題，因為當然，我們的服務是企業產品與中小企業產品不同的另一個領域。

And as you mentioned, big companies, they need extra services.

正如您所提到的，大公司，他們需要額外的服務。

They need someone to hold their hand.

他們需要有人牽著他們的手。

They need someone to provide second opinion and guide them.

他們需要有人提供第二意見並指導他們。

And of there are two options that companies software companies have when they tackle this problem.

軟體公司在解決這個問題時有兩種選擇。

Sometimes they decide to build a service arm inside the company, which has some benefits.

有時他們決定在公司內部建立一個服務部門，這有一些好處。

But from our point of view, it's actually margin dilutive and we're a software company.

但從我們的角度來看，這實際上會攤薄利潤，而我們是一家軟體公司。

We want to run very high margin business.

我們希望經營利潤率非常高的業務。

And the other approach is actually what we are doing to partner with industry leading experts in different areas and connect them with the pool of customers that we have.

另一種方法實際上是我們正在做的，與不同領域的行業領先專家合作，並將他們與我們擁有的客戶群聯繫起來。

And we are starting with freelancers and experts over time.

隨著時間的推移，我們從自由工作者和專家開始。

We think we could expand this to our agency clients as well and generate additional leads and demand for them by allowing them to work with our brand customers.

我們認為我們也可以將其擴展到我們的代理客戶，並透過允許他們與我們的品牌客戶合作來為他們產生更多的潛在客戶和需求。

And in terms of financial arrangements, what we do is we will productize their services and we arm provide for billing and handle transactions and then take our our small commission for facilitation and then pass other main revenue to our freelancers.

在財務安排方面，我們所做的是將他們的服務產品化，我們負責計費和處理交易，然後收取我們的小額佣金以提供便利，然後將其他主要收入傳遞給我們的自由工作者。

So we recognize as revenue only our commissions, so it's a clean, high margin revenue for us.

因此，我們只將佣金視為收入，因此這對我們來說是乾淨的、高利潤的收入。

Okay, really useful.

好的，確實有用。

Thanks so much.

非常感謝。

Elizabeth Porter, Morgan Stanley.

伊莉莎白‧波特，摩根士丹利。

Great.

偉大的。

Thank you so much.

太感謝了。

Just given the focus on the cross-sell and upsell plus addressing larger enterprise customers that can be a material upside to our film.

只是考慮到交叉銷售和追加銷售的重點以及針對大型企業客戶的需求，這可能是我們電影的實質優勢。

So what how should we think about the growth algo between new customers and RPU shifting between these two factors.

那我們應該如何思考新客戶和 RPU 在這兩個因素之間轉換的成長演算法。

I think historically, it's been a little bit more balanced may be skewed a bit more toward customers.

我認為從歷史上看，它更加平衡，可能更偏向客戶。

So just wanted to level set on the growth I'll go in the forward outlook as we go down these new initiatives.

因此，我只是想在我們實施這些新措施時對成長進行展望。

Thank you.

謝謝。

It wasn't as prime, yes.

是的，它並不那麼重要。

So we'd expect, as we've experienced in the past, that both will be significant growth drivers for us.

因此，正如我們過去所經歷的那樣，我們預計兩者都將成為我們的重要成長動力。

So we're still very pleased to see the amount of net adds that we experience every single quarter, the SMB and mid-market, which tends to be the bulk of the incremental net adds for us has been very strong and healthy, and we expect that will continue to be a growth driver for us at the same time as we've been talking about, we do see much healthier metrics as we're moving upmarket.

因此，我們仍然非常高興地看到我們每個季度經歷的淨增加量，中小企業和中端市場，這往往是我們增量淨增加的大部分，一直非常強勁和健康，而且我們預計這將繼續成為我們的成長動力，同時正如我們一直在談論的那樣，隨著我們向高端市場邁進，我們確實看到了更健康的指標。

We've talked about things like the retention, the average ARR per paying customer and even growth for that particular segment.

我們討論了諸如保留率、每個付費客戶的平均 ARR 甚至該特定細分市場的成長等問題。

So I think going forward, you might see a slight shift where the number of accounts and or sorry, the growth would actually shift a little bit more towards upsell and higher valued accounts, but we still expect that we'll see healthy growth from that as well.

因此，我認為展望未來，您可能會看到帳戶數量發生輕微變化，或者抱歉，增長實際上會更多地轉向追加銷售和更高價值的帳戶，但我們仍然預計我們會看到健康的增長以及。

Great.

偉大的。

And then as a follow-up, actually on the net add side that as of 4,000, but up just a bit below the 5,000 you've consistently added in prior Q1's.

然後作為後續行動，實際上淨增加數量為 4,000，但略低於您在先前第一季持續增加的 5,000。

So just curious if there were any factors to call out and then also touch on the seasonal trend of customers leaving in Q. one Q. four, but coming back in Q1 and how did that play out relative to prior years?

因此，我只是好奇是否有任何因素需要指出，然後還涉及客戶在第一季離開、但在第一季度返回的季節性趨勢，以及與前幾年相比情況如何？

So just building on what we're just talking about like any metric they can fluctuate from quarter to quarter.

因此，只要建立在我們剛剛討論的基礎上，就像任何指標一樣，它們可能會隨著季度的變化而波動。

There's always seasonal dynamics within one quarter or even year over year that could affect that number.

一個季度甚至一年中總是存在季節性動態，可能會影響這個數字。

But I think what you're seeing is just because we're putting more focus on higher valued upmarket enterprise accounts that you could see that as we're putting more focus on that but you could see that net add metric the impact going forward.

但我認為您所看到的只是因為我們更加關注價值較高的高端企業帳戶，您可以看到，隨著我們更加關注這一點，但您可以看到淨增加指標對未來的影響。

Mark Murphy, JPMorgan.

馬克墨菲，摩根大通。

Hey, this is already grew on promoting Murphy.

嘿，這已經是在宣傳墨菲的過程中成長起來的了。

Thanks for taking my question and congrats on the quarter.

感謝您提出我的問題並祝賀本季。

On the book to some of these investments you guys are expecting to make particularly on the on the upper end of the market on.

在這本書中，你們期望進行一些投資，特別是在高端市場。

Can you give us any sense of how you expect hiring trends this year?

您能否告訴我們您對今年招募趨勢的預期？

Thank you.

謝謝。

It was tough to hear you.

很難聽到你的聲音。

It was a little bit on a little bit choppy.

有點不穩定。

Can you just ask it again?

你能再問一下嗎？

Sorry, Barrio, it's tough to hear you, but it's not giving you the better your It's breaking up a little bit, but Trikon and my question was just around hiring and how we should expect headcount growth, particularly sales and marketing to transit this year and maybe compared to last year and year before that, I say, yes, good question.

抱歉，巴里奧，很難聽到你的聲音，但這並沒有給你帶來更好的結果。的銷售和行銷轉型也許與去年和前年相比，我說，是的，好問題。

We're not expecting a significant change.

我們預計不會發生重大變化。

So we've been talking about our investments in enterprise are being funded by the efficiencies we're seeing in SMB and mid-market.

因此，我們一直在談論我們對企業的投資是透過我們在中小企業和中端市場看到的效率來資助的。

And of course, the quantity of SMB and mid-market sellers is was higher.

當然，中小企業和中端市場賣家的數量也更多。

So now that we've been able to take advantage of leveraging AI and automation and really push a lot of the SMB sales through our e-commerce platform and take advantage of the product-led growth strategy.

因此，現在我們已經能夠利用人工智慧和自動化，透過我們的電子商務平台真正推動大量中小企業銷售，並利用產品主導的成長策略。

We're able to reinvest back into the enterprise.

我們能夠對企業進行再投資。

So while we're investing significantly and making a strong push into the enterprise, you shouldn't expect to see sales expense from an EDR perspective or even sales headcount change materially.

因此，雖然我們正在大力投資並大力投資企業業務，但從 EDR 的角度來看，您不應期望看到銷售費用甚至銷售人員數量發生重大變化。

There are no further questions in the queue at that time at this time.

此時隊列中沒有其他問題。

That concludes today's Q&A session.

今天的問答環節到此結束。

I'll now hand back over to the management team for closing remarks.

現在我將交回管理團隊進行總結發言。

Thank you all for joining us today.

感謝大家今天加入我們。

And I want to say again, we are very pleased with our execution in the first quarter and strong start to 2024, and we look forward to keeping you updated on our progress.

我想再說一遍，我們對第一季的執行情況和 2024 年的強勁開局感到非常滿意，我們期待向您通報我們的最新進展。

Thank you.

謝謝。

That concludes today's call.

今天的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。