Smartsheet Inc (SMAR) 2023 Q2 法說會逐字稿

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Smartsheet Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Aaron Turner, Head of Investor Relations, you may begin your conference.

下午好。我的名字是艾瑪，今天我將成為您的會議接線員。在這個時候，我想歡迎大家參加 Smartsheet 2023 年第二季度收益電話會議。 （操作員說明）投資者關係主管 Aaron Turner，您可以開始會議了。

Thank you, Emma. Good afternoon, and welcome, everyone, to Smartsheet's Second Quarter of Fiscal Year 2023 Earnings Call. We will be discussing the results announced in our press release issued after the market closed today. With me today are Smartsheet CEO, Mark Mader; and our CFO, Pete Godbole.

謝謝你，艾瑪。大家下午好，歡迎大家參加 Smartsheet 的 2023 財年第二季度財報電話會議。我們將討論今天收市後發布的新聞稿中公佈的結果。今天和我在一起的是 Smartsheet 首席執行官 Mark Mader；和我們的首席財務官 Pete Godbole。

Today's call is being webcast and will also be available for replay on our Investor Relations website at investors.smartsheet.com. There is a slide presentation that accompanies Pete's prepared remarks, which can be viewed in the Events section of our Investor Relations website. During this call, we will make forward-looking statements within the meaning of the federal securities laws. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends. These forward-looking statements are subject to a number of risks and other factors, including, but not limited to, those described in our SEC filings available on our Investor Relations website and on the SEC website at www.sec.gov.

今天的電話會議正在進行網絡直播，也可以在我們的投資者關係網站investors.smartsheet.com 上重播。皮特准備好的評論附有一張幻燈片，可以在我們的投資者關係網站的活動部分查看。在本次電話會議中，我們將根據聯邦證券法做出前瞻性陳述。這些前瞻性陳述主要基於我們當前對未來事件和財務趨勢的預期和預測。這些前瞻性陳述受許多風險和其他因素的影響，包括但不限於我們在投資者關係網站和 SEC 網站 www.sec.gov 上提供的 SEC 文件中描述的那些。

Although we believe that the expectations reflected in the forward-looking statements are reasonable, our actual results may differ materially and adversely. All forward-looking statements made during this call are based on information available to us as of today, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law.

儘管我們認為前瞻性陳述中反映的預期是合理的，但我們的實際結果可能存在重大不利差異。本次電話會議期間做出的所有前瞻性陳述均基於我們今天可獲得的信息，除法律要求外，我們不承擔因新信息或未來事件而更新這些陳述的任何義務。

In addition to the U.S. GAAP financials, we will discuss certain non-GAAP financial measures. A reconciliation to the most directly comparable U.S. GAAP measures is available in the presentation that accompanies this call, which can also be found on our Investor Relations website. With that, let me turn the call over to Mark.

除了美國 GAAP 財務，我們還將討論某些非 GAAP 財務指標。本次電話會議隨附的演示文稿中提供了與最直接可比的美國公認會計原則措施的對賬，也可以在我們的投資者關係網站上找到。有了這個，讓我把電話轉給馬克。

Thank you, Aaron, and welcome, everyone, to our second quarter earnings call for fiscal year 2023. Q2 was another strong quarter for Smartsheet. Revenue in the quarter grew 42% to $186.7 million, and billings grew 44% to $205.6 million as enterprises across the globe continue to deploy Smartsheet at scale to solve their mission-critical workflows.

謝謝你，亞倫，歡迎大家參加我們 2023 財年第二季度的財報電話會議。第二季度是 Smartsheet 的另一個強勁季度。本季度收入增長 42% 至 1.867 億美元，賬單增長 44% 至 2.056 億美元，因為全球企業繼續大規模部署 Smartsheet 以解決其關鍵任務工作流程。

In Q2, 62 customers expanded their Smartsheet investment by over $100,000 and 201 expanded by over $50,000. We also added 3 more customers to the $1 million ARR tier and now have 36 customers over this ARR threshold. We ended Q2 with ARR surpassing $736 million and now have over 11.1 million Smartsheet users.

在第二季度，62 家客戶將其 Smartsheet 投資擴大了 100,000 美元以上，201 家客戶擴大了 50,000 美元以上。我們還在 100 萬美元的 ARR 級別中增加了 3 位客戶，現在有 36 位客戶超過了此 ARR 閾值。我們在第二季度結束時的 ARR 超過 7.36 億美元，現在擁有超過 1110 萬 Smartsheet 用戶。

Q2 was another great quarter for our new business motion, with new business bookings setting another quarterly record. We saw new wins at companies such as payment processor, REPAY; United Health Services hospitals; Bloomberg Industry Group; IMAX; Midwest Vision Partners; the broadcast management platform, Operative; LOGIC Consulting; and Affinity Health Partners.

第二季度是我們新業務動議的又一個重要季度，新業務預訂創下了另一個季度記錄。我們在支付處理器、REPAY 等公司看到了新的勝利；聯合健康服務醫院；彭博工業集團；巨無霸；中西部願景合作夥伴；廣播管理平台，Operative；邏輯諮詢；和 Affinity Health 合作夥伴。

However, we are not immune to the changing macroeconomic condition. In the month of July, we started to see macro impacts on our business, including longer sales cycles, some deal compression and additional approval layers. These impacts resulted in lower expansion rates. Additionally, our previous guidance assumed a ramp time for sales reps we hired at the beginning of the year to be consistent with what we'd experienced in the past. However, this ramp time has been slower than we anticipated. We're investing in new enablement tools and training to improve productivity. Given these factors, we're taking a thoughtful approach to guidance and are electing to lower our full year billings and revenue guidance with the assumption that the current macro environment persists.

然而，我們也不能倖免於不斷變化的宏觀經濟狀況。 7 月份，我們開始看到對我們業務的宏觀影響，包括更長的銷售週期、一些交易壓縮和額外的審批層。這些影響導致較低的擴張率。此外，我們之前的指導假設我們在年初僱用的銷售代表的斜坡時間與我們過去經歷的一致。然而，這個斜坡時間比我們預期的要慢。我們正在投資新的支持工具和培訓以提高生產力。鑑於這些因素，我們正在對指導採取深思熟慮的方法，並在假設當前宏觀環境持續存在的情況下選擇降低我們的全年賬單和收入指導。

While Pete will provide more details about how the changing macro economy is impacting our financials for the remainder of the year, I want to update you on the status of our key growth drivers, namely our portfolio of capabilities products, our success in the enterprise and Brandfolder.

雖然皮特將提供更多關於不斷變化的宏觀經濟如何影響我們今年剩餘時間的財務狀況的詳細信息，但我想向您介紹我們關鍵增長驅動因素的最新情況，即我們的功能產品組合、我們在企業中的成功以及品牌文件夾。

Our portfolio of Smartsheet premium add-ons that we refer to as capabilities continues to drive deep attachment within our customer base and further differentiate Smartsheet from the rest of the CWM category. Whether these capabilities are bundled in an advanced package or purchased individually, they power our customers' most important workflows, from Data Shuttle, which lets users act on data across multiple systems, to Control Center that lets users build and operate a system of work across hundreds to thousands of projects or workflows, to our Brandfolder digital asset management platform, our portfolio of capabilities lets customers connect to a range of workloads unmatched in the collaborative work management space. These differentiated offerings give our customers the keys to unlock massive value within their organizations.

我們稱之為功能的 Smartsheet 高級附加組件組合繼續推動我們客戶群的深度連接，並進一步將 Smartsheet 與 CWM 類別的其他產品區分開來。無論這些功能是捆綁在高級包中還是單獨購買，它們都支持我們客戶最重要的工作流程，從允許用戶跨多個系統處理數據的 Data Shuttle，到允許用戶構建和操作跨系統工作系統的 Control Center數百到數千個項目或工作流，我們的 Brandfolder 數字資產管理平台，我們的功能組合讓客戶能夠連接到協作工作管理空間中無與倫比的一系列工作負載。這些差異化的產品為我們的客戶提供了在其組織內釋放巨大價值的鑰匙。

An example of this is Infoblox, a leader in next-generation DNS management and security that has increased its Smartsheet usage by close to 4x since 2019. As more teams and departments at Infoblox adopted Smartsheet, they began to see opportunities to create more integrated, centralized workflows using premium capabilities. Over time, they deployed Data Shuttle to set up a sync between their CRM and Smartsheet, plus advanced reporting capabilities that help summarize their data and enable faster and more informed decision-making. In Q2, Infoblox upgraded to Advance to access the full value of Smartsheet's premium capabilities, and they plan to implement a scalable, automated and secure OKR solution using Control Center and Dynamic View. We're seeing more large customers deploy Advance to access multiple capabilities such as Data Shuttle, Control Center, Data Mesh and Bridge for complex workflows that need to integrate with other systems in their organization.

這方面的一個例子是 Infoblox，它是下一代 DNS 管理和安全領域的領導者，自 2019 年以來其 Smartsheet 的使用量增加了近 4 倍。隨著 Infoblox 的更多團隊和部門採用 Smartsheet，他們開始看到創造更多集成、使用高級功能的集中式工作流程。隨著時間的推移，他們部署了 Data Shuttle 以在其 CRM 和 Smartsheet 之間建立同步，以及有助於匯總數據並實現更快、更明智的決策的高級報告功能。在第二季度，Infoblox 升級到 Advance 以獲取 Smartsheet 高級功能的全部價值，他們計劃使用 Control Center 和 Dynamic View 實施可擴展、自動化和安全的 OKR 解決方案。我們看到越來越多的大客戶部署 Advance 來訪問多種功能，例如數據穿梭、控制中心、數據網格和橋接，以實現需要與組織中其他系統集成的複雜工作流。

For example, the technology and consulting provider, NV5, implemented control center to automate the creation of their primary customer engagement templates to save time and achieve consistency while still allowing for changes over time. They are also using Work Apps and Dynamic View to create custom views for field teams that only show them the information that is relevant for their role, helping ensure data security at scale.

例如，技術和諮詢提供商 NV5 實施了控制中心，以自動創建其主要客戶參與模板，以節省時間並實現一致性，同時仍允許隨時間進行更改。他們還使用工作應用程序和動態視圖為現場團隊創建自定義視圖，僅向他們顯示與其角色相關的信息，幫助確保大規模數據安全。

And revenue from capabilities continues to grow rapidly and now accounts for 28% of our subscription revenue compared with 22% in Q2 of last year. Advance, which packages various capabilities, was included in 300 deals in the first half of this fiscal year, including those with biopharmaceutical company, Sobi; Crown Roofing & Waterproofing, and Elligo Health Research. The growth potential for capabilities remains very strong. Through Q2, only around 7,000 of our more than 100,000 customers had deployed at least 1 capability. Those customers are realizing significant ROI on their Smartsheet deployments and are expanding at a rapid pace.

來自功能的收入繼續快速增長，現在占我們訂閱收入的 28%，而去年第二季度這一比例為 22%。打包各種能力的 Advance 在本財年上半年被納入 300 筆交易，其中包括與生物製藥公司 Sobi 的交易； Crown Roofing & Waterproofing 和 Elligo Health Research。能力的增長潛力仍然非常強勁。到第二季度，我們 100,000 多名客戶中只有大約 7,000 家部署了至少一項功能。這些客戶在其 Smartsheet 部署中實現了顯著的投資回報率，並且正在快速擴展。

This value realization naturally gets the attention of senior executives who are increasingly involved in the decision-making process. This value-based enterprise go-to-market motion has demonstrated an increase in executive leaders selecting Smartsheet as their CWM platform of choice. I'd like to highlight a few Fortune 100 companies where that's happening.

這種價值實現自然會引起越來越多地參與決策過程的高級管理人員的注意。這種基於價值的企業進入市場的行動表明，越來越多的執行領導者選擇 Smartsheet 作為他們選擇的 CWM 平台。我想強調一些正在發生這種情況的財富 100 強公司。

In Q2, a Fortune 100 entertainment company expanded its Smartsheet investment by over $700,000, taking their total ARR to over $3 million. With this expansion, they migrated to the next tier of connected users for their Advance Gold deployment. This company has doubled the number of paid licensed users over the past year, adding roughly 3,000 enterprise licensed users and has now tens of thousands of connected users. And that number is expected to increase further as Smartsheet is now the central component in the company's effort to consolidate the work management solutions it uses. An executive in their IT department suggested that other CWM platform used in the organization will be retired in favor of Smartsheet.

在第二季度，一家財富 100 強娛樂公司將其 Smartsheet 投資擴大了超過 700,000 美元，使其總 ARR 超過 300 萬美元。通過這次擴展，他們遷移到下一層連接用戶以進行 Advance Gold 部署。過去一年，這家公司的付費許可用戶數量翻了一番，增加了大約 3,000 名企業許可用戶，現在擁有數万連接用戶。由於 Smartsheet 現在是公司努力整合其使用的工作管理解決方案的核心組成部分，預計這一數字還會進一步增加。他們 IT 部門的一位高管建議，該組織中使用的其他 CWM 平台將被淘汰，以支持 Smartsheet。

A Fortune 50 pharmaceutical company more than doubled its ARR to almost $1 million as its teams rely on Smartsheet to help them manage the spin-off of one of its divisions and will continue to use Smartsheet in the resulting 2 companies. Most important, the company's expected ROI of its Smartsheet deployment is $3 million in just year 1.

一家財富 50 強製藥公司的 ARR 增加了一倍多，達到近 100 萬美元，因為其團隊依靠 Smartsheet 幫助他們管理其一個部門的分拆，並將繼續在由此產生的 2 家公司中使用 Smartsheet。最重要的是，該公司對其 Smartsheet 部署的預期投資回報率僅在第一年就達到了 300 萬美元。

We also won an RFP at a Fortune 50 food and beverage company to become their global standard for collaborative work management. While this company is a low 6-figure customer today, this RFP win sets the table for rapid growth over the next few years.

我們還贏得了財富 50 強食品和飲料公司的 RFP，成為他們協作工作管理的全球標準。雖然這家公司今天的客戶數量只有 6 位數，但這次 RFP 中的勝利為未來幾年的快速增長奠定了基礎。

RFPs are still rare for our business, but this shows that in a rational head-to-head comparison, Smartsheet won, thanks to our years of investing in our platform to delivering extensibility, scalability and security that businesses demand.

RFP 對我們的業務來說仍然很少見，但這表明，在理性的正面比較中，Smartsheet 贏了，這要歸功於我們多年來對平台的投資，以提供企業所需的可擴展性、可擴展性和安全性。

One more example I'd like to share from Q2 is a Fortune 10 technology company that expanded by over $1.7 million in Q2, accelerating our growth within this organization to a total of $7.6 million in ARR. Last year, we became a globally approved CWM platform for the company. This approval has helped fuel significant adoption of Smartsheet across several dozen large departments.

我想在第二季度分享的另一個例子是一家財富 10 強技術公司，該公司在第二季度擴張了超過 170 萬美元，將我們在該組織內的增長加速到總 ARR 達到 760 萬美元。去年，我們成為該公司全球認可的 CWM 平台。這一批准有助於推動數十個大型部門對 Smartsheet 的大量採用。

Previously, I've emphasized the importance of our Brandfolder digital asset management platform as key to cementing our leadership in the CWM space. Naturally, we spend a lot of time understanding how to optimize workflow management for marketers. One of our insights is that marketers need to distribute content across more channels at higher velocity while ensuring brand consistency. Marketing teams are being asked to do more and more with fewer resources.

之前，我曾強調我們的 Brandfolder 數字資產管理平台的重要性，它是鞏固我們在 CWM 領域的領導地位的關鍵。自然，我們會花費大量時間來了解如何為營銷人員優化工作流程管理。我們的見解之一是營銷人員需要以更快的速度跨更多渠道分發內容，同時確保品牌一致性。營銷團隊被要求用更少的資源做更多的事情。

To meet customers' expanded content distribution needs, we've acquired the leading brand management templating and creative automation platform, Outfit. Outfit will turbocharge Brandfolder's content distribution capabilities, making us a leader in the content automation and management space. We're looking forward to introducing Outfit and the many other exciting new Smartsheet features and capabilities to thousands of users at our Engage 2022 Customer Conference taking place September 19 through 22 in person for the first time since 2019.

為了滿足客戶不斷擴大的內容分發需求，我們收購了領先的品牌管理模板和創意自動化平台 Outfit。 Outfit 將增強 Brandfolder 的內容分發能力，使我們成為內容自動化和管理領域的領導者。我們期待在 9 月 19 日至 22 日舉行的 Engage 2022 客戶大會上向數千名用戶介紹 Outfit 和許多其他令人興奮的新 Smartsheet 特性和功能，這是自 2019 年以來的首次。

In closing, the new economic reality organizations are facing has impacted a portion of our business, yet we remain confident in our ability to deliver long-term durable growth and profitability. This confidence is due to our position in the market, our differentiated suite of capabilities, and our market-leading presence in the largest companies in the world. We're carefully managing our resources to drive improved margins, and we remain on track to achieve breakeven free cash flow by end of this fiscal year. And now I'll turn it over to Pete. Pete?

最後，組織面臨的新經濟現實影響了我們的部分業務，但我們仍然對我們實現長期持久增長和盈利能力的能力充滿信心。這種信心是由於我們在市場中的地位、我們差異化的能力套件以及我們在世界上最大的公司中的市場領先地位。我們正在謹慎管理我們的資源以提高利潤率，並且我們仍有望在本財年末實現盈虧平衡的自由現金流。現在我將把它交給皮特。皮特？

Thank you, Mark, and good afternoon, everyone. As Mark mentioned, Q2 was a strong quarter that reflected durable growth, a product set that powers how work gets done in the largest enterprises around the world, and a resulting business model that show sustained progress to profitable growth. We saw this in 40-plus percent revenue and billings growth, dollar-based net retention rate greater than 130% and gross churn that is at a record low of less than 4%.

謝謝你，馬克，大家下午好。正如馬克所提到的，第二季度是一個強勁的季度，反映了持久的增長，一個為全球最大企業如何完成工作提供動力的產品組合，以及一個顯示持續盈利增長的商業模式。我們看到了 40% 以上的收入和賬單增長，基於美元的淨留存率超過 130%，總流失率低於 4%，創歷史新低。

In July, we began to see macro-related headwinds in the form of elongating sales cycles, procurement policy changes, deal compression and lower pipeline close rates. This trend has continued into August. We have incorporated those macro headwinds into our updated full year guidance, and I will provide additional details towards the end of my prepared remarks.

7 月，我們開始看到與宏觀相關的不利因素，包括銷售週期延長、採購政策變化、交易壓縮和管道關閉率降低。這種趨勢一直持續到八月。我們已將這些宏觀不利因素納入我們更新的全年指導，我將在我準備好的評論結束時提供更多細節。

Regarding the composition of our customer base, approximately 50% of our ARR now comes from enterprises with over 2,000 employees with only a quarter coming from SMBs. Our ARR also remains very diversified with only 13% coming from our largest vertical. As Mark mentioned, we recently acquired Outfit to enhance our Brandfolder offering. We expect the revenue and billings contribution from Outfit to be around $1 million each for the rest of the fiscal year.

關於我們客戶群的構成，我們現在大約 50% 的 ARR 來自擁有超過 2,000 名員工的企業，只有四分之一來自中小企業。我們的 ARR 仍然非常多樣化，只有 13% 來自我們最大的垂直市場。正如 Mark 所說，我們最近收購了 Outfit 以增強我們的 Brandfolder 產品。我們預計，在本財年剩餘時間內，Outfit 的收入和賬單貢獻將分別約為 100 萬美元。

I will now go through our financial results for the second quarter. Unless otherwise stated, all references to our expenses and operating results are on a non-GAAP basis and are reconciled to our GAAP results in the earnings release and presentation that was posted before the call.

我現在將介紹我們第二季度的財務業績。除非另有說明，否則對我們費用和經營業績的所有引用均基於非公認會計原則，並與我們在電話會議前發布的收益發布和演示文稿中的公認會計原則結果一致。

Second quarter revenue came in at $186.7 million, up 42% year-over-year. Subscription revenue was $173.5 million, representing year-over-year growth of 43%. Services revenue was $13.2 million, representing year-over-year growth of 24%.

第二季度收入為 1.867 億美元，同比增長 42%。訂閱收入為 1.735 億美元，同比增長 43%。服務收入為 1320 萬美元，同比增長 24%。

Turning to billings. Second quarter billings came in at $205.6 million, representing year-over-year growth of 44%. Approximately 91% of our subscription billings were annual, with 4% monthly. Quarterly and semiannual represented approximately 4% of the total. Multiyear billings represented approximately 1% of total billings.

轉向比林斯。第二季度的賬單為 2.056 億美元，同比增長 44%。我們大約 91% 的訂閱賬單是按年支付的，其中 4% 是按月支付的。季度和半年度約佔總數的 4%。多年賬單約佔總賬單的 1%。

Moving on to our reported metrics. The number of customers with ARR over $50,000 grew 48% year-over-year to 2,738, and the number of customers with ARR over $100,000 grew 63% year-over-year to 1,220. These customer segments now represent 58% and 44%, respectively, of total ARR. The percentage of our ARR coming from customers with ARR over $5,000 is now 88%.

繼續我們報告的指標。 ARR 超過 50,000 美元的客戶數量同比增長 48% 至 2,738，ARR 超過 100,000 美元的客戶數量同比增長 63% 至 1,220。這些客戶群現在分別佔總 ARR 的 58% 和 44%。我們的 ARR 來自 ARR 超過 5,000 美元的客戶的百分比現在是 88%。

Next, our domain average ACV grew 28% year-over-year to $7,557. As a reminder, we continue to experience healthy growth of new customers. New customers typically begin their Smartsheet journey at smaller dollar values than our overall average ACV. These initial lands put some pressure on our domain average ACV growth rate in the near term but provide a healthy base for expansion in the future. We ended the quarter with a dollar-based net retention rate of 131%. The full churn rate dropped further and is now below 4%. Given the current macro environment, we see a scenario that would cause our overall dollar-based net retention rate to be in the mid- to high 120s by the end of the year.

接下來，我們的域名平均 ACV 同比增長 28% 至 7,557 美元。提醒一下，我們繼續經歷新客戶的健康增長。新客戶通常以低於我們整體平均 ACV 的美元價值開始他們的 Smartsheet 之旅。這些初始土地在短期內對我們的領域平均 ACV 增長率施加了一些壓力，但為未來的擴張提供了健康的基礎。我們以 131% 的美元淨保留率結束了本季度。整體流失率進一步下降，目前低於 4%。鑑於當前的宏觀環境，我們看到一種情況會導致我們以美元為基礎的整體淨保留率在年底前達到 120 多歲的中高水平。

Now turning back to the financials. Our total gross margin was 82%. Our Q2 subscription gross margin was 87%. We continue to expect our gross margin for FY '23 to remain above 80%. Overall, operating loss in the quarter was negative $16.1 million or minus 9% of revenue, which represents a 5 percentage point sequential margin improvement. The margin improvement was a result of cost-saving initiatives we discussed last quarter, which included moderation of our hiring plan and cost rationalization. Additionally, we led a significant portion of our revenue outperformance dropped to the bottom line, demonstrating the operating leverage inherent in our business.

現在回到財務方面。我們的總毛利率為 82%。我們第二季度的訂閱毛利率為 87%。我們繼續預計我們 23 財年的毛利率將保持在 80% 以上。總體而言，本季度的運營虧損為負 1610 萬美元或收入的負 9%，這意味著利潤率環比提高了 5 個百分點。利潤率的提高是我們上個季度討論的成本節約計劃的結果，其中包括我們的招聘計劃和成本合理化。此外，我們導致我們的大部分收入超越業績下降到了底線，這表明我們業務固有的運營槓桿。

Free cash flow for the quarter was positive $7.1 million, bringing our free cash flow total in the first half to negative $2 million. Looking ahead in Q3, we have 3 large cash outflows that are unique to the quarter related to our engage customer conference, 1 extra payroll run in the quarter and a semiannual contractual payment related to a cloud provider. Given these outflows, we expect our Q3 free cash flow to be negative $20 million.

本季度的自由現金流為正 710 萬美元，使我們上半年的自由現金流總額為負 200 萬美元。展望第三季度，我們有 3 筆與我們的參與客戶會議相關的季度獨有的大量現金流出，本季度有 1 筆額外的工資單以及與雲提供商相關的半年度合同付款。鑑於這些流出，我們預計我們的第三季度自由現金流為負 2000 萬美元。

Now let me move on to guidance. As we mentioned previously, towards the end of July, we saw macro-related headwinds begin to emerge. These headwinds continued in August and have impacted our sales productivity and ramp time for our newer sales reps. Given these trends and our preference for prudence, we are taking a thoughtful approach to our full year guidance and electing to guide under the assumption that the macro pressures continue through the end of the year.

現在讓我繼續指導。正如我們之前提到的，在 7 月底，我們看到與宏觀相關的不利因素開始出現。這些不利因素在 8 月繼續存在，並影響了我們的銷售效率和新銷售代表的爬坡時間。鑑於這些趨勢以及我們對審慎的偏好，我們正在對全年指導採取深思熟慮的方法，並在宏觀壓力持續到年底的假設下選擇指導。

For the third quarter of FY '23, we expect revenue to be in the range of $193 million to $194 million and non-GAAP operating loss to be in the range of $21 million to $19 million. As a reminder, in Q3, we will host our first in-person customer conference in 3 years, which we believe will result in incremental expenses of around $5 million on our sales and marketing line. We expect non-GAAP net loss per share to be between $0.16 and $0.15 based on weighted average shares outstanding of 130.5 million.

對於 23 財年第三季度，我們預計收入將在 1.93 億美元至 1.94 億美元之間，非 GAAP 運營虧損將在 2100 萬美元至 1900 萬美元之間。提醒一下，在第三季度，我們將舉辦 3 年來的首次面對面客戶會議，我們相信這將導致我們的銷售和營銷線路增加約 500 萬美元的費用。根據 1.305 億股的加權平均流通股，我們預計非公認會計準則每股淨虧損將在 0.16 美元至 0.15 美元之間。

For the full fiscal year '23, billings are expected to be in the range of $870 million to $880 million, representing growth of 32% to 33%. We expect our revenue to be $750 million to $755 million, representing growth of 36% to 37%. We expect services to be 7% of total revenue.

對於整個 23 財年，預計賬單將在 8.7 億美元至 8.8 億美元之間，增長 32% 至 33%。我們預計我們的收入將在 7.5 億美元至 7.55 億美元之間，增長 36% 至 37%。我們預計服務將佔總收入的 7%。

We are improving our non-GAAP operating loss to be in the range of $75 million to $65 million and non-GAAP net loss per share to be between $0.56 and $0.49 and for the year based on approximately 125 million weighted average shares outstanding. This improvement in our profitability is due to cost reductions and efficiencies identified in non-revenue-generating areas of our business, combined with a more measured investment posture we articulated earlier this year and a careful evaluation of our expenses and policies. We are maintaining our free cash flow guidance for the year of breakeven.

根據大約 1.25 億股加權平均流通股，我們正在將非 GAAP 經營虧損改善至 7500 萬美元至 6500 萬美元，非 GAAP 每股淨虧損在 0.56 美元至 0.49 美元之間。我們盈利能力的這種提高是由於在我們業務的非創收領域確定的成本降低和效率，加上我們今年早些時候闡明的更加謹慎的投資態勢以及對我們的費用和政策的仔細評估。我們維持盈虧平衡年度的自由現金流指引。

To conclude, Smartsheet is a system of work able to scale for the largest, most demanding businesses in the world. With ARR approaching $0.75 billion and revenue growth in the high 30s, I believe our value proposition positions us to deliver long-term durable growth with improving margins and outsized cash flows. Now let me turn it back to the operator for questions. Operator?

總而言之，Smartsheet 是一個能夠為世界上最大、要求最高的企業擴展的工作系統。隨著 ARR 接近 7.5 億美元和 30 多歲的收入增長，我相信我們的價值主張使我們能夠通過提高利潤率和超大現金流實現長期持久增長。現在讓我把它轉回給接線員提問。操作員？

(Operator Instructions) Your first question today comes from the line of John DiFucci with Guggenheim Partners.

（操作員說明）您今天的第一個問題來自 John DiFucci 與 Guggenheim Partners 的合作。

I have a question for Mark and then a follow-up for Pete. Mark, your commentary about the strength of the quarter, that sort of agrees with our calculations anyway for new business in the period. I realized there were some things that you're seeing in the macro environment it makes sense to me to be, as you and people said, more prudent regarding your outlook. But just a clarification on the ramp time for new ramps. Is the time required growing simply because of the macro backdrop? Or has the job gotten more difficult as you build out your platform?

我有一個問題要問馬克，然後是皮特的後續問題。馬克，你對本季度實力的評論，無論如何都符合我們對這一時期新業務的計算。我意識到你在宏觀環境中看到了一些事情，正如你和人們所說，對你的前景更加謹慎對我來說是有意義的。但只是澄清新坡道的坡道時間。是否僅僅因為宏觀背景而增加了所需的時間？還是隨著您構建平台，工作變得更加困難？

I mean I think about Smartsheet years ago when I first became acquainted with you, and it's -- Smartsheet, the application is just -- it's a much more sophisticated. It's still easy to use, but it's a more sophisticated complex application. I'm just wondering if that job has just gotten more sophisticated, the requirements for the sales job.

我的意思是，當我幾年前第一次認識您時，我想到了 Smartsheet，它是——Smartsheet，該應用程序只是——它更複雜。它仍然很容易使用，但它是一個更複雜的複雜應用程序。我只是想知道該工作是否變得更加複雜，即銷售工作的要求。

I think the requirements have, John, but I've also seen the support mechanisms we have around enablement and the tooling dramatically improve from the early days. So I think with that larger surface the offering and more value we can deliver, I think we have put good support structures in place for that. So I would point to macro as being the largest impact.

John，我認為需求已經存在，但我也看到我們圍繞啟用和工具的支持機制從早期開始就得到了顯著改進。所以我認為有了更大的表面，我們可以提供更多的產品和更多的價值，我認為我們已經為此建立了良好的支持結構。所以我會指出宏觀是最大的影響。

And when you look at bringing in many new sales reps at the beginning of the year, where they're being assigned to existing accounts, most of our bookings motion is expansion, those new reps are going to talk to existing customers. And I think that relationship between the new rep who's trying to articulate value to an experienced customer, I think during these times, there's a more pronounced effect that comes from it.

當您考慮在年初引入許多新的銷售代表時，他們被分配到現有客戶，我們的大部分預訂動議都是擴展，這些新代表將與現有客戶交談。我認為試圖向有經驗的客戶表達價值的新代表之間的關係，我認為在這段時間裡，它產生了更明顯的影響。

But we're supporting our reps. We're investing in new tooling. And I think it's going to result in capacity that we get to carry next year as well. So I think there will be a payoff.

但我們支持我們的代表。我們正在投資新工具。而且我認為這將導致我們明年也可以承載能力。所以我認為會有回報。

Okay. Good. And so it's good to hear you're not going to give them an out to say it's a harder job. That's great.

好的。好的。所以很高興聽到你不會讓他們說這是一項更難的工作。那太棒了。

Pete, listen, this looks like, to us, anyway, a really strong quarter and a big uptick from last quarter, at least from the way we look at it. And again, I get the prudent guidance here. But I'm just wondering when you gave the guidance, are you assuming the macro backdrop just sort of stays as it is? Or that it continues to soften through the rest of the year?

皮特，聽著，無論如何，對我們來說，這看起來像是一個非常強勁的季度，並且比上一季度有了很大的增長，至少從我們的角度來看是這樣。再一次，我在這裡得到了謹慎的指導。但我只是想知道您何時給出指導，您是否假設宏觀背景保持不變？還是在今年餘下的時間裡繼續走軟？

So our assumption, John, is that the economic backdrop stays fairly consistent and slightly weakens as we go through the year.

因此，約翰，我們的假設是經濟背景保持相當一致，並且隨著我們這一年的發展而略有減弱。

Your next question comes from the line of Terry Tillman with Truist Securities.

您的下一個問題來自 Truist Securities 的 Terry Tillman。

This is Robert Dee on for Terry. My first question relates to macro positioning. I'm curious, how does the playbook change, if at all, for continuing to drive new logo strength in a tougher macro environment? And what are some of the assumptions for new logo adds implied in the current guide? And then I have 1 follow-up.

這是特里的羅伯特迪。我的第一個問題與宏觀定位有關。我很好奇，在更艱難的宏觀環境中繼續推動新的標誌力量，如果有改變的話，劇本會如何改變？當前指南中隱含的新徽標添加的一些假設是什麼？然後我有 1 次跟進。

So our assumption, as you looked at -- your question was on looking at sort of where we're seeing the macro changes in our environment. I think we've seen it across the board. We've seen it in all segments of our business. And what I would say is that it's not in any particular vertical. It's spread across all elements of it. And that's what we've assumed in our forward-looking guide. We've extended what we saw in July and August all the way through the year.

所以我們的假設，正如你所看到的——你的問題是關於我們在哪裡看到環境中的宏觀變化。我認為我們已經全面看到了這一點。我們在業務的所有領域都看到了這一點。我想說的是，它沒有任何特定的垂直方向。它分佈在它的所有元素中。這就是我們在前瞻性指南中所假設的。我們已經將我們在 7 月和 8 月看到的情況一直延伸到全年。

And on the new logos, we continue to see with quite a low entry point in terms of dollars, both the volume and the velocity has remained. And as I speak to peers and other SaaS businesses, it's what many of us are seeing. And so we're seeing on the more critical eye coming to the larger expansion opportunities where maybe there are additional layers of approval coming into play. But on the sub couple thousand dollar new business logo, those are still flowing quite well.

在新徽標上，我們繼續看到以美元計的切入點相當低，數量和速度都保持不變。當我與同行和其他 SaaS 企業交談時，這是我們許多人所看到的。因此，我們看到了對更大的擴張機會更加挑剔的目光，其中可能會有額外的批准層級發揮作用。但是在幾千美元以下的新商業標誌上，那些仍然流動得很好。

Okay. Great. And then as a follow-up, nice to see some impressive benefit stats on Brandfolder out of Forrester last week. How has Brandfolder's ROI proposition been resonating with customers, both for those who have adopted the solution and for folks who haven't? And how might that evolve with the addition of Outfit?

好的。偉大的。然後作為後續行動，很高興看到上週 Forrester 在 Brandfolder 上的一些令人印象深刻的收益統計數據。 Brandfolder 的 ROI 主張如何與客戶產生共鳴，無論是對於那些已經採用該解決方案的人，還是對於那些沒有採用該解決方案的人？隨著 Outfit 的加入，這將如何演變？

Well, the addition of Outfit is an interesting one because it's a response to what we're hearing from some of our larger enterprise opportunities where they have larger teams who have larger production needs, and that need for content automation really ties out to the enterprise opportunity. So I think it's a really strong -- it's a very favorable impact to Brandfolder's ROI statement.

嗯，Outfit 的加入很有趣，因為它是對我們從一些更大的企業機會中聽到的回應，他們有更大的團隊，有更大的生產需求，而對內容自動化的需求確實與企業息息相關機會。所以我認為這是一個非常強大的 - 它對 Brandfolder 的 ROI 聲明產生了非常有利的影響。

But even in midsized companies, I think there's still a lot of learning in the market right now about graduating from simply having your digital assets available to you to be able to tag them, distribute them, measure the usage of them. And when people take the time to read that ROIs that we hear from a rep, we're seeing very, very positive response.

但即使在中型公司中，我認為現在市場上仍然有很多關於如何從簡單地讓你的數字資產可供你使用，以便能夠標記它們、分發它們、衡量它們的使用情況。當人們花時間閱讀我們從代表那裡聽到的投資回報率時，我們會看到非常非常積極的回應。

We're still in that early phase of getting Brandfolder ramped on all of our reps. So that co-selling motion between our Brandfolder team and our mainline reps, that's something which we would expect to continue to strengthen throughout the year.

我們仍處於讓 Brandfolder 增加我們所有代表的早期階段。因此，我們的 Brandfolder 團隊和我們的主線銷售代表之間的聯合銷售活動，我們預計這一點將在全年繼續加強。

Your next question comes from the line of Michael Turrin with Wells Fargo.

您的下一個問題來自富國銀行的 Michael Turrin。

First is just kind of a higher-level question. It ties into some of what you're saying, and it's consistent with what we're hearing more broadly across software, just signs of elongation, more scrutiny and sales cycles and deal decisions. I'm just wondering if you're finding tangible stats around ROI or efficiency gains? Or just how well equipped your sales team is to raise their hand and position as these conversations just kind of just continue to layer on across software?

首先是一個更高層次的問題。它與您所說的某些內容相關聯，並且與我們在整個軟件中更廣泛地聽到的內容一致，只是延長的跡象、更多的審查和銷售週期以及交易決策。我只是想知道您是否找到了有關投資回報率或效率提升的有形統計數據？或者，當這些對話繼續在軟件中層層疊加時，您的銷售團隊在舉手和立場方面的能力如何？

I think -- especially when we're introducing our premium capabilities, those capabilities either Advance, which is the package of them, or the one-off capabilities, I think those lend themselves most strongly to an ROI statement. And when people can move from qualitative to quantitative measures, the confidence goes way up in the sales cycle. I think what we're looking to do is how do you get more of those capabilities exposed to more people earlier.

我認為 - 特別是當我們介紹我們的高級功能時，這些功能要么是高級功能，要么是它們的軟件包，要么是一次性功能，我認為這些功能最適合投資回報率聲明。當人們可以從定性測量轉向定量測量時，銷售週期的信心就會大大提高。我認為我們要做的是如何讓更多的這些功能更早地暴露給更多的人。

So part of what we're doing on the engineering side over the next year is figuring out how we can get more of that portfolio exposed to people on a self-directed basis as opposed to a human-assisted sales basis. So I think it will be very interesting to see next year how that more self-directed digital motion can open up more the portfolio.

因此，我們明年在工程方面所做的部分工作是弄清楚我們如何能夠在自主的基礎上而不是人工輔助的銷售基礎上讓更多的投資組合接觸到人們。因此，我認為明年將非常有趣的是，更多自主的數字運動如何打開更多的投資組合。

But when you talk about things like Control Center and Data Shuttle and content automation life cycle, it is grounded in doing more things, letting the system do more things in an automated way that can tie up directly to a human being or set of human beings not needing to be as involved. And that's where people feel very confident in the formula. And so my aspiration is how do we get more of those capabilities driven into the median buyer as opposed to 7,000 of our more than 100,000 customers.

但是當你談到控制中心和數據穿梭以及內容自動化生命週期之類的東西時，它的基礎是做更多的事情，讓系統以自動化的方式做更多的事情，可以直接與一個人或一組人聯繫起來不需要參與。這就是人們對公式非常有信心的地方。因此，我的願望是，我們如何將更多這些功能引入中位買家，而不是我們 100,000 多名客戶中的 7,000 名。

That's super helpful. I think you've already gotten some questions just around the metrics on Q4 looks strong. You're talking about low churn and the expansion rates holding in relatively well. In terms of what you're guiding for, just -- is it fair to assume that more of those impacts show up on the net new side of your business?

這非常有幫助。我認為您已經對第四季度的指標提出了一些問題，看起來很強勁。你說的是低流失率和相對較好的擴張率。就您的指導而言，只是 - 假設更多這些影響出現在您業務的全新方面是否公平？

I know there's generally a 4Q heavier billings dynamic. So just anything you can add around visibility you have into the existing base there, given some of the uncertainty you're seeing?

我知道通常有一個 4Q 較重的帳單動態。因此，考慮到您所看到的一些不確定性，您可以在現有基礎中添加任何關於可見性的內容嗎？

Yes, Michael, it's -- if you look at the change in our billings guidance, which is the key part of the conversation, it is all on the existing expansion business, and it's really net expansion side of it where this is playing out. And if you sort of break it down into a few categories, you'd say, of the total change, 1% of it probably comes from FX, 1% of it is almost tied to Europe and the economic weakness we're seeing in Europe. And of the balance of the numbers, there's probably 2% of it tied to just taking this large class of sales reps and getting them to the median level of productivity for our experienced reps, and then the rest of it is in the macro changes out there. Hopefully, that gives you the color you're looking for.

是的，邁克爾，它是 - 如果你看看我們的賬單指南的變化，這是對話的關鍵部分，這一切都在現有的擴張業務上，而且它確實是它的淨擴張方面正在發揮作用。如果你把它分成幾類，你會說，在總變化中，1% 可能來自外匯，其中 1% 幾乎與歐洲和我們所看到的經濟疲軟有關歐洲。在其餘的數字中，可能有 2% 與將這一大類銷售代表的工作效率提高到我們經驗豐富的代表的中等水平有關，其餘的則在宏觀變化中那裡。希望這可以為您提供所需的顏色。

Your next question comes from the line of Brent Thill with Jefferies.

您的下一個問題來自 Jefferies 的 Brent Thill。

Pete, just on the margin, how are you thinking about the environment we're in and the expenses that you're carrying going forward? Are you still holding your plan for quarter reps? And investments that you had planned in early year, are you tapping the brakes a bit there as well to tying up that approach?

皮特，就在邊緣，您如何看待我們所處的環境以及您將承擔的費用？你還在堅持你的季度代表計劃嗎？以及您在年初計劃的投資，您是否也在踩剎車以捆綁這種方法？

Brent, I think what we're focused on is driving operational efficiencies in what I call the nonrevenue generating growth that we've got. We've moderated our hiring plan, focusing on ancillary and support roles that aren't core to revenue-generating sort of activities, if you will. We've also taken the approach of, what I call, hiring in different locations and really focusing on things which every expense dollar is important and taking the approach of we'll review every dollar and find efficiencies there.

布倫特，我認為我們關注的是推動運營效率，我稱之為我們所擁有的無收入增長。如果您願意，我們已經調整了我們的招聘計劃，重點關注那些不是創收活動的核心的輔助和支持角色。我們還採取了我所說的在不同地點招聘的方法，並真正專注於每一筆費用都很重要的事情，並採取我們將審查每一美元並在那裡找到效率的方法。

As it relates to the sales rep and the quota class, we feel really good about the capacity we're carrying in, and it's going to set us up really well, not just for this year, but the way we think of FY '24 and how that appears. Now we'll make changes to our sales capacity based on sort of management adjustments as we onboard reps, but that's the plan.

由於它與銷售代表和配額類別有關，我們對我們所承載的能力感覺非常好，這將使我們非常好，不僅僅是今年，而是我們對 24 財年的看法以及它是如何出現的。現在，我們將在入職代表時根據管理調整來改變我們的銷售能力，但這就是計劃。

Okay. And then just a quick follow-up. When you guys talk about some of the pressure you're seeing, is it more seat-based? Are you seeing more in seats? Or this upsell to higher value inside the installed base? What are you seeing there?

好的。然後只是快速跟進。當你們談論你們所看到的一些壓力時，是不是更基於座位？你在座位上看到更多嗎？還是在已安裝的基礎上向更高的價值追加銷售？你在那兒看到什麼？

I think we're seeing it in two forms. I think we're seeing it -- I would describe it in terms of customers who are early in the journey are seeing more of it. So that could be a seat-based expansion or their ability to buy capabilities and packages, you're seeing some of that. But I think you're not seeing it as much in customers who are way down the journey with us and have seen the full value, and they're, I would say, expanding at rates which were consistent with what we planned.

我認為我們看到它有兩種形式。我認為我們正在看到它——我會用在旅程早期的客戶看到更多它來描述它。因此，這可能是基於座位的擴展或他們購買功能和套餐的能力，你會看到其中的一些。但我認為你並沒有在與我們一起走過旅程並看到全部價值的客戶中看到它，而且我想說，他們正在以與我們計劃一致的速度擴張。

Your next question comes from the line of George Iwanyc with Oppenheimer.

您的下一個問題來自 George Iwanyc 與 Oppenheimer 的對話。

So maybe following up on the sales investment priorities that you just talked about, Pete, can you give us some perspective on the R&D priorities and how you're looking at the near-term investments that you're prioritizing now?

所以也許跟進你剛才談到的銷售投資優先事項，Pete，你能給我們一些關於研發優先事項的看法，以及你如何看待你現在優先考慮的近期投資嗎？

Yes. We've thought of R&D as -- we hired a large class of our R&D kind of capacity we needed early in the year, and we continue to build that through Q2 in sort of very targeted areas we knew we needed to grow in. So that's been the playbook. We're going to be looking at opportunistic hiring in R&D as we go through the year, but we're certainly not sort of indexed to the same level of hiring we had in the first half.

是的。我們認為研發是——我們在年初聘請了一大類我們需要的研發能力，並且我們在第二季度繼續在我們知道需要發展的非常有針對性的領域建立這種能力。所以這就是劇本。在這一年中，我們將關注研發領域的機會主義招聘，但我們肯定不會與上半年的招聘水平掛鉤。

Okay. And maybe, Mark, following up on that, can you give us a sense -- like you talked about the self-service investment. Are there other areas either from an M&A perspective or a road map that you're really focused on?

好的。也許，馬克，跟進這件事，你能給我們一個感覺——就像你談到自助服務投資一樣。從併購的角度或路線圖來看，您是否真正關注其他領域？

Yes. As we head into Engage, we're going to be announcing a number of things in late September. And they really go across the entire portfolio, from enterprise control and governance capabilities to scale capabilities in our Control Center line, to experiential things that impact every new collaborator and every new person who signs up for our service. And I think one of the things -- one of the benefits we get from operating at scale is that we don't have to make choices at the expense of one of those important areas. So I really feel good about the investment balance we've achieved, and we have not had to eliminate focus from any one of those important veins.

是的。當我們進入 Engage 時，我們將在 9 月下旬宣布一些事情。它們確實涵蓋了整個產品組合，從企業控制和治理功能到我們控制中心系列中的擴展功能，再到影響每個新合作者和每個註冊我們服務的新人的體驗性事物。我認為其中一件事——我們從大規模運營中獲得的好處之一是我們不必以犧牲其中一個重要領域為代價做出選擇。因此，我對我們實現的投資平衡感到非常滿意，而且我們不必從任何一個重要的脈絡中消除注意力。

Your next question comes from the line of Rishi Jaluria with RBC.

您的下一個問題來自 Rishi Jaluria 與 RBC 的系列。

Maybe first, I wanted to start just doubling down a little bit on Brandfolder and Outfit. it does feel like you're maybe -- and please tell me if I'm wrong on this interpretation. It does feel like you are kind of doubling down on the marketing use case. I know this is a horizontal platform, and there's virtually unlimited use cases.

也許首先，我想開始在 Brandfolder 和 Outfit 上加倍努力。感覺你可能是——如果我對這種解釋有誤，請告訴我。感覺就像您在營銷用例上加倍努力。我知道這是一個水平平台，幾乎有無限的用例。

But can you maybe talk a little bit about the feedback that you've been getting from customers and prospects that led to kind of this motion to go deeper on the marketing side? And then I have a follow-up.

但是你能不能談談你從客戶和潛在客戶那裡得到的反饋，這些反饋導致了這種在營銷方面更深入的動議？然後我有一個跟進。

Yes. I think when you could identify a pattern of requests, especially within the enterprise class buyer, it's a huge gift when you see a pattern emerge in terms of what multiple people want. And this notion of being able to store and classify and distribute content, everyone gets that.

是的。我認為，當您可以識別出一種請求模式時，尤其是在企業級買家中，當您看到一個模式出現在多人想要的方面時，這是一個巨大的禮物。而這種能夠存儲、分類和分發內容的概念，每個人都明白。

I would say the importance of not just being able to create a template, which is here's my digital asset, I need to overlay some content on it, but saying I need to do that at scale because I'm running a campaign with 300 different assets that needs to be created. If you don't have that, you're basically telling someone build it manually, do 300 assets. And what content automation does for you, it says, define your frame, have your content, which will live in a Smartsheet, and then merge that and you can eliminate a lot of manual load within your design team. Like that is a really easily understood concept.

我會說不僅能夠創建模板（這是我的數字資產）的重要性，我需要在其上覆蓋一些內容，而且說我需要大規模地這樣做，因為我正在運行一個包含 300 種不同的廣告系列需要創建的資產。如果你沒有那個，你基本上是在告訴某人手動構建它，做 300 個資產。它說，內容自動化為您做了什麼，定義您的框架，擁有您的內容，這些內容將存在於 Smartsheet 中，然後將其合併，您可以消除設計團隊中的大量手動負擔。就像那是一個非常容易理解的概念。

What we're seeing within Brandfolder is that the resonance of digital assets is starting to expand beyond marketers. So when you have people within health, within construction, within tech all keying off on that, I think it's still early, but we are definitely seeing signs of relevance outside of the marketing function. But I think the content we're -- as we talk about quantifying value, the absence of this content automation, I think, puts you back in the -- we're seeing this sort of a manual discussion, which is really counter to our thesis. So I think it's a really nice complement to what our brand promise has been.

我們在 Brandfolder 中看到的是，數字資產的共鳴開始擴展到營銷人員之外。因此，當你讓健康、建築、技術領域的人都關注這一點時，我認為現在還為時過早，但我們肯定會看到營銷職能之外的相關跡象。但我認為我們的內容——當我們談論量化價值時，我認為缺乏這種內容自動化會讓你回到——我們正在看到這種手動討論，這確實與我們的論文。所以我認為這是對我們品牌承諾的一個很好的補充。

Wonderful. That's really helpful. And then, look, I appreciate all the commentary around expense control. Obviously, the prudent thing to do in this environment. But maybe one that I'd like to drill down a little bit more on this the stock comp, right? It definitely continues to get elevated, right? SBC is now about 25% of revenue. You're tracking close to 4% annual dilution. I know it's obviously a messy way to analyze it.

精彩的。這真的很有幫助。然後，看，我很欣賞所有關於費用控制的評論。顯然，在這種環境下謹慎行事。但也許我想在這個股票組合上再深入一點，對吧？它肯定會繼續升高，對嗎？ SBC 現在約佔收入的 25%。您正在跟踪接近 4% 的年度稀釋率。我知道這顯然是一種混亂的分析方式。

But maybe taking a step back, can you talk a little bit about your philosophy around stock comp? And any kind of longer-term or medium-term plans you may have to kind of get stock comp down over time?

但也許退後一步，你能談談你關於股票補償的理念嗎？隨著時間的推移，您可能需要採取任何長期或中期計劃來降低庫存？

So Rishi, this is Pete. Your question on stock comp, let's talk about the texture of how stock comp is created. You're generally carrying a cohort of multiyears of grants, which all there into sort of annual compensation levels, they become a part of the stock grant calculation. We're extremely mindful in controlling and managing this expense, and it starts with how we think of stock and how we think about leveraging it.

所以里希，這是皮特。您對股票補償的問題，讓我們談談如何創建股票補償的紋理。您通常會攜帶一組多年的贈款，這些贈款都包含在某種年度薪酬水平中，它們成為股票贈款計算的一部分。我們在控制和管理這筆費用方面非常注意，這從我們如何看待股票以及我們如何看待利用它開始。

So we haven't taken the approach of what I call regreening our entire population. We've taken a very thoughtful approach of saying, we're going to focus on a selective number of hires coming into the business, granting them stock on what we consider as a reasonable basis, and really managing the total stock grants first, and then driving that into compensation expense and ensuring that we have outcomes that are acceptable to us. So that's been a part of a deliberate effort, Mark, myself and the management team have gone through.

所以我們沒有採取我所說的重新綠化我們整個人口的方法。我們採取了一種非常周到的方法，我們將專注於選擇進入業務的員工數量，在我們認為合理的基礎上授予他們股票，並首先真正管理總股票授予，並且然後將其轉化為補償費用，並確保我們獲得我們可以接受的結果。所以這是刻意努力的一部分，馬克、我自己和管理團隊都經歷過。

Your next question comes from the line of Scott Berg with Needham.

您的下一個問題來自 Scott Berg 和 Needham 的觀點。

I guess I wanted to pivot just a little bit and talk about Outfit a little bit more. Obviously, small purchase price here. You're not obviously buying customers here, you're getting product on this. Help us understand a little bit more the fit with Brandfolder, and from a pricing product perspective, is this something that can really drive ARPU in a significant way over time as you develop the product as you want? Or is this more of maybe a smaller add-on that just helps create maybe some modest differentiation from the rest of the competitor set?

我想我想稍微調整一下，多談談 Outfit。顯然，這裡的購買價格很小。您顯然不是在這裡購買客戶，而是在此獲得產品。幫助我們更多地了解與 Brandfolder 的契合度，從定價產品的角度來看，隨著時間的推移，隨著您根據需要開發產品，這是否真的可以顯著推動 ARPU？或者這更像是一個更小的附加組件，它只是有助於與其他競爭對手建立一些適度的差異化？

I think, first, Scott, it would -- I really see it as an opportunity to improve our win rates with Brandfolder. So I think that's the primary benefit. There is evidence within their customer portfolio that larger organizations assign significant value to this. Now it is -- that is an emerging set of evidence, but we see at scale, some of those -- some of their customers being multiples of size of the average revenue that a Brandfolder customer would have stand-alone.

我認為，首先，Scott，它會 - 我真的認為這是一個提高 Brandfolder 勝率的機會。所以我認為這是主要的好處。在他們的客戶組合中有證據表明，大型組織為此賦予了重要價值。現在它是——這是一組新興的證據，但我們大規模地看到，其中一些——他們的一些客戶的規模是 Brandfolder 客戶獨立的平均收入的倍數。

So we will integrate it. We do see it as an add-on for which we will charge as opposed to having it be a freebie. The degree to which that will manifest itself in a meaningful adjustment to our revenue, early days. But I absolutely see this as a buy-up opportunity for customers because there's such value associated with it.

所以我們會整合它。我們確實將其視為一個附加組件，我們將對其收費，而不是讓它成為免費贈品。這將在早期對我們的收入進行有意義的調整中體現出來的程度。但我絕對認為這對客戶來說是一個購買機會，因為它具有這樣的價值。

Got it. Helpful. And then following up on Pete's comment earlier about sales rep hiring this year and most of the, I guess, not necessarily cost reductions, but delayed hiring as a non-kind of sales or revenue-generating positions you're going forward in the rest of the half is. Should we take that kind of the same way around the rest of the sales kind of ecosystem within the company outside of just the quota-bearing sales reps?

知道了。有幫助。然後跟進皮特早些時候關於今年招聘銷售代表的評論，我猜大部分不一定是降低成本，而是推遲招聘，作為一種非銷售或創收職位，你將在其餘部分繼續前進一半是。除了承擔配額的銷售代表之外，我們是否應該在公司內的其他銷售生態系統中採取同樣的方式？

Yes. I think we've taken the approach of the quota-carrying field carriers, there's many of them in those roles. We're generally leaving that capacity sort of as the capacity we want to deal with and help us with 24. But there's support roles in sales, which are a part of like our moderated hiring plan in terms of infrastructural that supports sales systems, those I consider more in the box of what I call the rest of the folks who support the sales organization.

是的。我認為我們已經採取了攜帶配額的現場運營商的方法，其中有很多人擔任這些角色。我們通常將這種能力保留為我們想要處理並幫助我們處理 24 的能力。但是在銷售中存在支持角色，這是我們在支持銷售系統的基礎設施方面的適度招聘計劃的一部分，那些我在其他支持銷售組織的人中考慮的更多。

Your next question comes from the line of Jacob Roberge with William Blair.

您的下一個問題來自 Jacob Roberge 和 William Blair。

I was just wondering if you could talk more about the demand that you're seeing in some of the -- those newer products like Work Apps or Data Shuttle and Brandfolder? And have any of these been more or less prioritized given the uncertain macro environment and some of the headwinds that you experienced over the last month?

我只是想知道你是否可以更多地談談你在一些新產品中看到的需求——比如 Work Apps 或 Data Shuttle 和 Brandfolder？考慮到不確定的宏觀環境和您在上個月遇到的一些不利因素，這些是否或多或少地被優先考慮？

Yes. I would say the ones that are really resonating are the ones where there's such a clear economic return on the decision. So Data Shuttle is a great example. You want to be manually managing ingress/egress of data in your system? Or do you want to put it on rails and hit the go button? I mean it's a super simple value prop, so that one is probably the highest velocity simplest to describe.

是的。我想說真正引起共鳴的是那些決定帶來如此明顯的經濟回報的人。所以 Data Shuttle 就是一個很好的例子。您想手動管理系統中數據的入口/出口嗎？或者你想把它放在軌道上然後點擊開始按鈕？我的意思是它是一個超級簡單的價值道具，所以它可能是最容易描述的最高速度。

I would say on the Control Center one, where it's analogous to Data Shuttle in the sense that do you want to have a program and replicate it manually and do all of the portfolio management hand to mouth? Or do you want to put it on rails and Control Center have it do it for you? Those are concepts which are landing really well.

我會在控制中心說，它類似於 Data Shuttle，從某種意義上說，您是否想要一個程序並手動複製它，並親手完成所有的投資組合管理？或者你想把它放在軌道上，控制中心讓它為你做嗎？這些是非常好的概念。

I would say on the Brandfolder side, the degree to which a company has big distribution needs, the degree to which it has content automation needs, the degree to which it has a templating need, that drives the degree to which there's a strong ROI case for Brandfolder. If it's simply -- I'd like to store my assets in a more digital -- more beautiful digital way, that's not really carrying the day fully.

我想說的是，在 Brandfolder 方面，一家公司有多大的分銷需求，它有多少內容自動化需求，它有多少模板需求，這會推動有一個強大的投資回報率案例的程度對於品牌文件夾。如果只是——我想以一種更數字化——更漂亮的數字化方式存儲我的資產，那並不能真正完成這一天。

So we're really mindful of understanding what that need is from the customer before we make that ROI promise. But again, back to those -- the Data Shuttles, the Control Centers and the Brandfolders, the ability for us to get our reps in a position where they can present that value is really, really landing well with folks right now.

因此，在我們做出 ROI 承諾之前，我們非常注意了解客戶的需求。但再一次，回到那些——數據穿梭、控制中心和品牌文件夾，我們讓我們的代表處於他們可以展示價值的位置的能力，現在真的非常非常適合人們。

And one of the -- second part of your question was what's changing in the demand environment. So we've seen people really appreciate the impact of our premium apps called capabilities that really help us. We are happy. We want to sell people the package because it's easier for them to consume, and it helps them long term. But we're open in this environment, and we're seeing customers elect, in cases, to buy them a la carte because that's the way they want to consume them. So we have the flexibility in our model to do both, and we're going to take the total addressable market in the way customers want to sort of use it.

您問題的第二部分之一是需求環境發生了什麼變化。因此，我們已經看到人們非常欣賞我們的高級應用程序的影響，這些應用程序稱為真正幫助我們的功能。我們很開心。我們想向人們推銷包裹，因為它更容易讓他們消費，並且可以長期幫助他們。但是我們在這種環境中是開放的，我們看到客戶選擇，以防萬一，點菜，因為這是他們想要消費的方式。因此，我們的模型可以靈活地做到這兩點，我們將以客戶希望使用的方式佔領整個潛在市場。

Great. That's really helpful. And then could I just double-click on some of the sales headwinds that you're experiencing? Is it really just a macro and training issue? Or are there any territorial or quota restructurings that you plan to complete over the kind of balance of the year?

偉大的。這真的很有幫助。然後我可以雙擊您遇到的一些銷售逆風嗎？這真的只是一個宏觀和培訓問題嗎？或者您是否計劃在今年的餘額中完成任何領土或配額重組？

So I think the headwinds we described were 3 parts. There was an elongated set of sales cycles we were seeing. We were talking about seeing some deal compression. And then there was an additional level of approval layers that were being introduced into the process. So those are the, what I call, macro elements that we were seeing across everything we were sort of experiencing in our entire base, if you will.

所以我認為我們描述的逆風是三個部分。我們看到了一系列延長的銷售週期。我們正在談論看到一些交易壓縮。然後在流程中引入了額外級別的審批層。所以這些就是我所說的宏觀元素，我們在整個基地所經歷的一切中看到的，如果你願意的話。

The second part of your question was what was additional is we had taken sort of a very large class, introduced that into the field. And what we found is that there was more ramp time needed to get these folks to be productive, not -- they're productive today, but they could be more productive relative to our experience trips. And that's the effort we're driving with single-minded focus to get to.

你問題的第二部分是額外的，我們已經上了一個非常大的課程，並將其引入該領域。我們發現，需要更多的斜坡時間來讓這些人變得富有成效，而不是——他們今天的工作效率很高，但相對於我們的體驗之旅，他們可能更有效率。這就是我們一心一意地努力實現的目標。

Your next question comes from the line of Keith Bachman with BMO.

您的下一個問題來自 BMO 的 Keith Bachman。

I have a couple really focused on margins, and I want to kind of build on the previous question on SBC. If I look at the -- your operating loss is improving pursuant to your new guidance. Yet even if I kind of look at Q4, it's still, guessing a little bit here, but negative 5% kind of operating margins. And the broader question I want to start with is, as we reflect on our models here, how do we get to improve profitability? What's the key attribute? Because your average ACV is still pretty small relative to your client base, $700,000. And so your sales and marketing is certainly high relative to most software companies.

我有幾個非常關注利潤，我想在 SBC 上一個問題的基礎上再接再厲。如果我看一下-根據您的新指導，您的經營虧損正在改善。然而，即使我看一下第四季度，它仍然是，在這裡稍微猜測一下，但營業利潤率為負 5%。我想開始的更廣泛的問題是，當我們在這裡反思我們的模型時，我們如何才能提高盈利能力？關鍵屬性是什麼？因為相對於你的客戶群，你的平均 ACV 仍然很小，700,000 美元。因此，與大多數軟件公司相比，您的銷售和營銷肯定很高。

So the question is, how do you improve your reach and grow your ACV? But at the same time, I think, satisfy investors that, in fact, you can improve your margins, not only improve, but start to generate non-GAAP operating profit dollars. But if you could just -- is it simply scale, but how do you solve that sales and marketing riddle and really reach the operating profitability?

所以問題是，你如何提高你的影響力並增加你的 ACV？但與此同時，我認為，讓投資者滿意的是，事實上，你可以提高利潤率，不僅提高，而且開始產生非公認會計原則的營業利潤。但如果你可以——它只是規模化，但你如何解決銷售和營銷難題並真正實現運營盈利？

Keith, your question has 2 components to it, and I'll speak to both. I think the first thing we're seeing in our business is our largest customers are driving the greatest profitability for us. So as we get bigger, just the natural migration of the model to a larger percentage of our business coming from these larger customers has an inherent lift in profitability.

基思，你的問題有兩個組成部分，我會和他們談談。我認為我們在業務中看到的第一件事是我們最大的客戶正在為我們帶來最大的盈利能力。因此，隨著我們變得越來越大，模型自然遷移到來自這些大客戶的更大比例的業務中，就會對盈利能力產生內在的提升。

The second part of that is when you think of like introducing newer products like Brandfolder, what we do is we leverage our mainstream sales force in what we call our prime co-prime model where we're not adding pro rata sales and marketing dollars, where we're leveraging an existing base to farm demand and using that as an uplift to our margin profile. So think of those as the 2 drivers, which would you think as drivers as examples in the sales and marketing efficiency count.

第二部分是當您考慮引入像 Brandfolder 這樣的新產品時，我們所做的就是利用我們的主流銷售隊伍，我們稱之為我們的主要聯合主要模型，我們不按比例增加銷售和營銷資金，我們正在利用現有的基礎來滿足需求，並將其作為我們利潤狀況的提升。因此，將它們視為 2 個驅動因素，您會將其視為銷售和營銷效率計數中的示例。

And then there are things which we achieve at scale. The larger we get, the more we get to use location, geographic hiring, efficiency and automation, which we get to build in. We've taken a single-minded focus in doing that effectively and efficiently. And between those elements, we have a story we've built out for this year, but we don't expect it to stop here. We expect it to continue into future years as well.

還有一些我們可以大規模實現的事情。我們越大，我們就越能利用位置、地理招聘、效率和自動化，這些都是我們建立起來的。我們一心一意地專注於有效地做到這一點。在這些元素之間，我們有一個為今年構建的故事，但我們預計它不會止步於此。我們預計它也將持續到未來幾年。

Okay. Okay. Yes, I think investors like to understand what the road map looks like, but I assume we'll find out your guidance in a few quarters on 2023 or FY '24, excuse me. But you led into my second question, is really how do you think about M&A. And if you -- are there parameters that you think about in terms of willingness to do deals that might positively or candidly negatively impact your operating margin trajectory? Are there any boundaries that you would not do a deal in terms of the margin impact? If you could just talk a little bit more about the philosophy on M&A as it relates to the impact on margins.

好的。好的。是的，我認為投資者喜歡了解路線圖的樣子，但我想我們會在 2023 年或 24 財年的幾個季度內找到你的指導，對不起。但是你引出了我的第二個問題，你真的是如何看待併購的。如果你——你是否考慮過交易意願方面的參數，這些參數可能會對你的營業利潤率軌跡產生積極或坦率的負面影響？就利潤率影響而言，是否存在您不會進行交易的界限？如果您能多談談併購哲學，因為它與對利潤率的影響有關。

To keep our signal that we've used in the past, it's historically always been where customers and enterprise buyers are telling us that there is a demand and there's a clear established signal. And why that's important is because you're establishing that into where you can eke out a return in terms of top line sales dollars and growth. So we are looking at adjacencies which fit that profile. That's the first thing we've done. Even with the most recent acquisition of Outfit, it really helps our Brandfolder sales perspective in future fiscal years, and that's what we've indexed on.

為了保持我們過去使用的信號，歷史上一直是客戶和企業買家告訴我們有需求並且有明確的既定信號的地方。為什麼這很重要，因為您正在將其確立為您可以在頂線銷售收入和增長方面獲得回報的地方。因此，我們正在尋找適合該配置文件的鄰接。這是我們做的第一件事。即使最近收購了 Outfit，它確實有助於我們在未來財政年度的 Brandfolder 銷售前景，這就是我們所索引的內容。

So you asked me about the boundary conditions, we're being extremely thoughtful about returns that acquisitions give us, and that's been the metric we've been using. What's the dilution impact it has, what's the accretion I expect on the top line, and how am I trading against those.

所以你問我邊界條件，我們非常考慮收購給我們帶來的回報，這就是我們一直在使用的指標。它的稀釋影響是什麼，我對收入的預期增加是什麼，以及我如何與這些進行交易。

Right. okay. All right. Well, congratulations to your results given the backdrop seems pretty solid. So congratulations. That's it for me.

正確的。好的。好的。好吧，鑑於背景似乎相當穩固，恭喜您的結果。那麼恭喜。對我來說就是這樣。

Thanks, Keith.

謝謝，基思。

Your next question comes from the line of Pinjalim Bora with JPMorgan.

您的下一個問題來自摩根大通的 Pinjalim Bora。

I want to go back to the elongated sales cycles comment. Could you give us maybe more texture around if it was more enterprise, small- and mid-market-business driven? Was there any difference between the various geos? And was the elongation largely around larger size deals versus smaller?

我想回到延長銷售週期的評論。如果它更多地由企業、中小型市場企業驅動，你能給我們更多的紋理嗎？各種地理之間有什麼區別嗎？延伸主要是圍繞較大規模的交易而不是較小的交易？

When we looked at it, there was a general elongation of sales cycle, but I think it was more pronounced in the enterprise because you think of the sophisticated buyer that looks at every deal and the mechanisms they have to react to things before they are fully trends in their business, we saw that. So that's kind of what we would represent as being elongating sales cycles by segment or tier.

當我們看到它時，銷售週期普遍延長，但我認為這在企業中更為明顯，因為您會想到成熟的買家，他們會查看每筆交易以及他們在完全完成之前必須對事物做出反應的機制他們的業務趨勢，我們看到了這一點。所以這就是我們所代表的按細分或層級延長銷售週期。

I see. Understood. Okay. And the other question, I guess, when I'm looking at the billings guidance, I did this math pretty quickly, but it seems like the second half slows about 10 points versus the first half. And it seems like the slowdown was more pronounced during 2020 when you had to take the billings guidance off the table at that time. Maybe compare the 2 environments. What are you hearing from customers are seeing in the deals now versus what was in the -- the July -- April-July time frame in 2020?

我懂了。明白了。好的。另一個問題，我想，當我查看比林斯指南時，我很快就完成了這個數學運算，但下半場似乎比上半場慢了大約 10 分。看起來放緩在 2020 年更為明顯，當時你不得不取消比林斯指南。也許比較這兩種環境。您從客戶那裡聽到的現在交易中的情況與 2020 年 7 月至 4 月至 7 月時間範圍內的情況相比有何不同？

I think we -- what we're seeing is the -- I think the conditions that we saw in 2020 were quite new to people, right? There were a set of variables that many people haven't faced before. So I would say there was -- while there is some lack of certainty on what -- how the conditions are improving or worsening, I would say we're dealing with a slightly more recognized set of variables than we did in 2020.

我認為我們——我們所看到的是——我認為我們在 2020 年看到的情況對人們來說是全新的，對吧？有許多人以前沒有遇到過的一系列變量。因此，我想說的是——雖然還不確定是什麼——情況是如何改善或惡化的，但我想說我們正在處理的一組變量比我們在 2020 年所做的要稍微多一些。

What's changed for us internally, what's different than 2020 is we had a different set of inputs we were dealing with. So this year, we brought on the largest class in company history in the first half. We didn't do that in 2020. So how we're reacting is fundamentally to a different set of conditions.

我們內部發生了什麼變化，與 2020 年不同的是我們處理的輸入集不同。所以今年上半年，我們帶來了公司歷史上最大的班級。我們在 2020 年沒有這樣做。因此，我們的反應從根本上是對一組不同的條件。

In terms of what the buyers are going through where the commonality does sit is they're asking for what's the value. What has changed a little bit this go around is not only what's the value, what's the return, but I would say there's more focus now on how quickly can you get that return to me. So I'd say the time horizon around the return on the investment is probably more pronounced than it was in 2020.

就買家所經歷的共同點而言，他們要求的是價值是什麼。改變了一點的不僅是價值是什麼，回報是多少，而且我想說的是，現在更關注的是你能多快得到回報。所以我想說，投資回報的時間範圍可能比 2020 年更明顯。

Your next question comes from the line of Steve Enders with Citi.

您的下一個問題來自花旗銀行的史蒂夫·恩德斯（Steve Enders）。

I guess I'll ask a little bit more on some of the go-to-market aspects of the business. I think you mentioned that you thought there was more you could do on the sales enablement side to try and turn things around. But how do you kind of feel about the levers that you could potentially pull and some of the different marketing strategies to put in place to try and drive some better penetration and expansion rates in accounts?

我想我會就業務的一些上市方面提出更多問題。我想你提到你認為在銷售支持方面你可以做更多的事情來嘗試扭轉局面。但是，您如何看待您可能拉動的槓桿以及一些不同的營銷策略，以嘗試在賬戶中推動更好的滲透率和擴張率？

I think one of the things that's a really welcome change is in past years, our Engage Conference has been a big driver in terms of customer education, understanding the possibilities, and also spending time with our most valuable teams in-person to develop account plans. It's the first time we're doing it in 3 years. Registration for an in-person event is going well. That will be an event where we have thousands of people in Seattle. So we have some of our largest teams, our largest customers already signed up, where you have teams of people showing up, representing those companies. So that's a really positive variable.

我認為在過去幾年中真正值得歡迎的變化之一是，我們的參與會議在客戶教育、了解可能性以及與我們最有價值的團隊面對面製定客戶計劃方面發揮了重要作用.這是我們三年來第一次這樣做。現場活動的註冊進展順利。這將是我們在西雅圖有成千上萬人的活動。所以我們有一些最大的團隊，我們最大的客戶已經簽約，你有代表這些公司的團隊出現。所以這是一個非常積極的變量。

I would say other things that we're doing is improving our product marketing and how we cross-sell and cross-introduce the portfolio that we know is single-digit penetrated today. So a big product marketing push in the second half is around developing new materials, not just for enablement, but also to educate customers at the right time on what they could be doing with Smartsheet.

我想說的是，我們正在做的其他事情是改善我們的產品營銷，以及我們如何交叉銷售和交叉介紹我們知道今天滲透率達到個位數的產品組合。因此，下半年的一項重大產品營銷推動是圍繞開發新材料，不僅是為了實現，而且是在正確的時間教育客戶他們可以使用 Smartsheet 做什麼。

And I think part of that is through, we brought on a new CMO at the end of last year. Andrew and his team are hitting stride. They're developing new things. They're hiring new product marketing team members. And I expect that to start benefiting us in the second half. So we have some changing variables that should be positive as we exit this year and head into next.

我認為其中一部分是通過，我們在去年年底引入了一位新的 CMO。安德魯和他的團隊正在大踏步前進。他們正在開發新事物。他們正在招聘新產品營銷團隊成員。我預計這將在下半年開始使我們受益。因此，當我們今年退出並進入明年時，我們有一些變化的變量應該是積極的。

Okay. That's helpful. And then I guess kind of beyond the marketing area and what you're doing with Brandfolder there, I guess, how do you think about other verticals or other core use cases you could go after and really kind of simplify the solutions that kind of more tailor it for some specific areas?

好的。這很有幫助。然後我猜有點超出營銷領域以及您在那裡使用 Brandfolder 所做的事情，我猜您如何看待其他垂直或其他核心用例，您可以追求並真正簡化解決方案為某些特定領域量身定制？

Yes. We're doing work right now on identifying commonality around use cases within our largest customers. So we just presented to our Board this last week the approach we're taking on how to have a more recommendation-based set of use cases that we can introduce to our sales team, so there's commonality in the core value prop, not so much just like PPM and marketing, but like more specific granular functional use cases in certain industries where we've been very successful. So that is something which is very much in flight right now.

是的。我們現在正在努力確定我們最大客戶的用例的共性。因此，我們上周剛剛向董事會介紹了我們正在採取的方法，即如何擁有一組更基於推薦的用例，我們可以將這些用例介紹給我們的銷售團隊，因此核心價值支柱有共同點，而不是太多就像 PPM 和營銷一樣，但在我們已經非常成功的某些行業中，更具體的粒度功能用例。所以這是現在非常流行的東西。

I think the -- in terms of how our customers are responding to use cases, I would say we continue to see requests for more sophisticated capabilities. I'll give you an example. For years, we sold the ability to manage projects at scale. And when we talk about applying resource to them, which we do very well, we have given people the ability to track resource allocation across their work. Great.

我認為 - 就我們的客戶如何響應用例而言，我想說我們繼續看到對更複雜功能的要求。我給你舉個例子。多年來，我們出售了大規模管理項目的能力。當我們談論將資源應用到他們身上時，我們做得很好，我們讓人們能夠在他們的工作中跟踪資源分配。偉大的。

The largest companies in the world are also saying, "Help me understand the forecasting of that." Don't tell me how I'm assigned, but what type of capacity do I have looking forward across the skill sets I have? There's a whole set of capabilities in project and portfolio management and the management and utilization of resources that is being developed today, which is going to be coming out in the coming quarters. So we're extending the depth of some of these capabilities as opposed to saying, what are other simple things we can do in adjacent spaces.

世界上最大的公司也在說，“幫助我理解這個預測。”不要告訴我我是如何被分配的，但我對我所擁有的技能組合有什麼樣的能力？今天正在開發的項目和投資組合管理以及資源管理和利用方面的一整套功能，將在未來幾個季度推出。因此，我們正在擴展其中一些功能的深度，而不是說，我們可以在相鄰空間中做哪些其他簡單的事情。

So I think the differentiation in our category the winner long term will not simply be a very broad-based set of capabilities that are simple, but have very, very discrete differentiating enterprise capabilities that are deeply understood and in demand.

因此，我認為我們類別中長期贏家的差異化將不僅僅是一組非常廣泛的簡單能力，而是具有非常、非常離散的差異化企業能力，這些能力被深入理解和需求。

So as we build our portfolio, it's not about just broadening, it's about deepening. And so far, we've seen those capabilities work really well.

因此，當我們建立我們的投資組合時，不僅僅是擴大，而是深化。到目前為止，我們已經看到這些功能非常有效。

Your next question comes from the line of Josh Baer with Morgan Stanley.

您的下一個問題來自摩根士丹利的 Josh Baer。

I think with billings linearity, I'd assume weighted toward the end of the quarter. Just wondering why the macro impacts that surfaced in July didn't have a more significant impact versus the 44% billings growth and billings outperformance in the quarter?

我認為對於比林斯線性，我會假設在本季度末加權。只是想知道為什麼 7 月份出現的宏觀影響沒有比本季度 44% 的比林斯增長和比林斯出色的表現產生更顯著的影響？

The impact that we saw in July was partway through July, so you saw some impact of it. And frankly, without that impact, we had an even bigger quarter in how the quarter would have played out in billings. So that's the trend we saw. And I think we saw that trend play out or extend itself out as we went into August as well and which became the basis of our guide.

我們在 7 月看到的影響是 7 月的一半，所以你看到了它的一些影響。坦率地說，如果沒有這種影響，我們在本季度將如何在比林斯中發揮更大的季度。這就是我們看到的趨勢。而且我認為，隨著我們進入 8 月，我們看到了這種趨勢的發展或延伸，這成為了我們指南的基礎。

Okay. That makes sense. So would you say May and June were sort of in line with your expectations? Or like kind of thinking month by month, were those actually extra strong?

好的。那講得通。所以你會說五月和六月有點符合你的預期嗎？或者像月復一月的思考，那些真的特別強嗎？

No. I think month by month, they were fairly consistent with what we would have expected and what we'd historically seen. So there was nothing unusual about May or June.

不。我認為每個月，它們都與我們的預期和歷史上所看到的相當一致。所以五月或六月沒有什麼不尋常的。

Your next question comes from the line of Andy DeGasperi with Berenberg.

您的下一個問題來自 Andy DeGasperi 和 Berenberg 的台詞。

I guess, I mean, first, just on a follow-up on the employee side. I mean has employee retention been an issue since the realignment, particularly on the quota-carrying side, or have you not seen any changes?

我想，我的意思是，首先，只是在員工方面進行跟進。我的意思是，自重組以來，員工保留一直是個問題，尤其是在配額方面，還是您沒有看到任何變化？

We have not seen a meaningful change in attrition rates.

我們還沒有看到人員流失率發生有意義的變化。

Great. And then secondly, just on the -- given the change in market conditions, I just wondered if you've seen an improved competitive environment, particularly from the smaller CWM players. Why has that been unchanged as well?

偉大的。其次，考慮到市場條件的變化，我只是想知道你是否看到了競爭環境的改善，尤其是來自較小的 CWM 參與者。為什麼它也沒有改變？

It's -- we don't -- there's not a lot of head to head. As I said, when we have those -- like those rare but notable RFPs, we're talking single digits in a quarter, right? So it's difficult to say what the others are experiencing. Again, most of our deals are not contested. Most of our business is grounded in expansion where they're really committed to Smartsheet already. So it's difficult to say what they're saying.

這是 - 我們沒有 - 沒有太多的正面交鋒。正如我所說，當我們擁有這些——比如那些罕見但值得注意的 RFP 時，我們說的是四分之一的個位數，對吧？所以很難說其他人正在經歷什麼。同樣，我們的大部分交易都沒有爭議。我們的大部分業務都基於他們已經真正致力於 Smartsheet 的擴張。所以很難說出他們在說什麼。

I think what we're benefiting from is where a lot of our demand comes from the usage of our product where we're not overly reliant on the new marketing mechanism, like advertising mechanisms. We are seeing, through our analysis, that there's been a little bit of a raise in cost of people having to battle it out for the next new dollar. And that's something that we fortunately don't have to participate in as heavily.

我認為我們從中受益的是，我們的很多需求來自對我們產品的使用，我們沒有過度依賴新的營銷機制，比如廣告機制。通過我們的分析，我們看到人們不得不為下一個新美元而戰的成本略有增加。幸運的是，我們不必如此投入地參與其中。

Your last question today comes from the line of Robert Simmons with D.A. Davidson.

你今天的最後一個問題來自羅伯特西蒙斯與 D.A.戴維森。

First to clarify one thing on the headwinds that you're experiencing. Are you seeing increased client downgrades or user contraction at clients? Or is it really just kind of spend sort of things?

首先要澄清你遇到的逆風的一件事。您是否看到客戶降級或用戶收縮增加？還是真的只是花點錢？

Robert, we're seeing it entirely on the net expansion side. Our churn remains at a record low level, and I shared that our churn rate is now below 4%. So it's all on the net expansion side that we're seeing these headwinds.

羅伯特，我們完全在網絡擴張方面看到了它。我們的流失率保持在創紀錄的低水平，我分享說我們的流失率現在低於 4%。因此，我們看到這些不利因素都在淨擴張方面。

Got it. Great. And then have you built in any revenue benefits this year from holding engagement person? Or would that be upside to numbers?

知道了。偉大的。然後，您今年是否從聘用人員中獲得了任何收入收益？或者這對數字有好處嗎？

So we've built in some level of what I call -- what we would expect a modest amount of an improvement in our close rate based on what we are experiencing with Engage in September, but we haven't built in a big upside.

因此，我們已經建立了我所說的某種程度——根據我們在 9 月份使用 Engage 所經歷的情況，我們預計我們的收盤率會有適度的提高，但我們還沒有建立很大的上升空間。

This concludes today's Q&A. I'll now turn the call back over to Aaron Turner.

今天的問答到此結束。我現在將電話轉回給 Aaron Turner。

Great. Thank you so much, and thank you all for joining us today. We will speak with you again next quarter.

偉大的。非常感謝，也感謝大家今天加入我們。我們將在下個季度再次與您交談。

This concludes today's conference call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝您的出席。您現在可以斷開連接。