Smartsheet Inc (SMAR) 2023 Q3 法說會逐字稿

Ladies and Gentlemen, thank you for standing by. My name is Brent, and I will be your conference operator today. At this time, I would like to welcome everyone to the Smartsheet Third Quarter Fiscal 2023 Earnings Conference Call. (Operator Instructions)

女士們，先生們，感謝你們的支持。我叫布倫特，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加 Smartsheet 2023 財年第三季度收益電話會議。 （操作員說明）

It is now my pleasure to turn today's call over to Mr. Aaron Turner, Head of Investor Relations. Sir, please go ahead.

現在我很高興將今天的電話轉給投資者關係主管 Aaron Turner 先生。先生，請繼續。

Thank you, Brent. Good afternoon, and welcome, everyone, to Smartsheet's Third Quarter of Fiscal Year 2023 Earnings Call. We will be discussing the results announced in our press release issued after the market closed today.

謝謝你，布倫特。下午好，歡迎大家參加 Smartsheet 2023 財年第三季度財報電話會議。我們將討論今天收市後發布的新聞稿中公佈的結果。

With me today are Smartsheet's CEO, Mark Mader; and our CFO, Pete Godbole.

今天和我在一起的是 Smartsheet 的首席執行官 Mark Mader；以及我們的首席財務官 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's 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。 Pete 的準備好的評論有一個幻燈片演示，可以在我們的投資者關係網站的“活動”部分查看。在此次電話會議中，我們將做出聯邦證券法含義內的前瞻性陳述。我們的這些前瞻性陳述主要基於我們目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美國證券交易委員會網站 www.sec.gov 上提供的美國證券交易委員會文件中所述的風險和其他因素。

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. In addition to the U.S. GAAP financials, we will discuss certain non-GAAP financial measures.

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。本次電話會議期間所做的所有前瞻性陳述均基於截至今日我們可獲得的信息，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。除了美國 GAAP 財務數據外，我們還將討論某些非 GAAP 財務指標。

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.

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 GAAP 措施的對賬，也可以在我們的投資者關係網站上找到。

And with that, let me turn the call over to Mark.

就這樣，讓我把電話轉給馬克。

Thanks, Aaron. Hello, and welcome to our third quarter earnings call for fiscal year 2023. Today, I'd like to focus on 3 topics: our solid performance in the quarter, how we're improving our operational efficiency in the current macro environment; and how delivering measurable ROI for customers drives our durable long-term growth. While Pete will provide additional details, I want to call out some of our strong financials from the quarter.

謝謝，亞倫。大家好，歡迎來到我們的 2023 財年第三季度財報電話會議。今天，我想重點討論 3 個主題：我們在本季度的穩健表現，我們如何在當前的宏觀環境中提高運營效率；以及為客戶提供可衡量的投資回報率如何推動我們持久的長期增長。雖然皮特將提供更多細節，但我想介紹一下本季度我們的一些強勁財務狀況。

Revenue for the quarter was $199.6 million, up 38% year-over-year. We added $56 million in annual recurring revenue, bringing our total ARR to more than $792 million. We added many new customers in the quarter, such as recruiting software providers seek out, Monster Energy, the social good empowerment platform, Bonterra and Arizona Beverages. And we expanded Smartsheet's footprint significantly at Picasa, AGC Biologics and Seattle Children's Hospital, among others.

本季度收入為 1.996 億美元，同比增長 38%。我們增加了 5600 萬美元的年度經常性收入，使我們的 ARR 總額超過 7.92 億美元。我們在本季度增加了許多新客戶，例如招聘軟件提供商 seek out、Monster Energy、社會公益賦能平台、Bonterra 和 Arizona Beverages。我們在 Picasa、AGC Biologics 和西雅圖兒童醫院等機構顯著擴大了 Smartsheet 的足跡。

Our strong expanded climb motion within our customer base continued with 235 customers expanding by $50,000 or more and 79 customers expanding by $100,000 or more. We also now have 40 customers with ARR over $1 million. And we ended the quarter with more than 11.7 million Smartsheet users. Last quarter, we discussed how our new sales reps were ramping more slowly than sales reps from previous years. This quarter, we saw improvements in quota attainment and pipeline generation from our newest reps. We exited the quarter with a record pipeline, improved after macro-related softening in Q2. We also made significant improvements to our profitability in Q3. Our Q3 non-GAAP operating loss was negative $4.3 million significantly better than our guidance and a 7 percentage point sequential margin improvement from Q2. This improvement is a function of the adjustments we've made to our hiring plan for the year, a heightened focus on operational rigor and financial policies and inherent economies of scale in our business model.

我們在客戶群中繼續進行強勁的擴張攀昇運動，有 235 名客戶的收入增加了 50,000 美元或更多，79 名客戶的收入增加了 100,000 美元或更多。我們現在還有 40 位客戶的 ARR 超過 100 萬美元。我們在本季度結束時擁有超過 1170 萬 Smartsheet 用戶。上個季度，我們討論了我們的新銷售代表如何比前幾年的銷售代表更慢。本季度，我們看到了最新代表在配額實現和管道生成方面的改進。我們以創紀錄的渠道退出了本季度，在第二季度宏觀相關的疲軟之後有所改善。我們還在第三季度顯著提高了盈利能力。我們第三季度的非 GAAP 營業虧損為負 430 萬美元，明顯好於我們的指導，並且比第二季度連續利潤率提高了 7 個百分點。這一改進是我們對今年的招聘計劃進行調整、更加註重運營嚴謹性和財務政策以及我們商業模式中固有的規模經濟的結果。

We expect these margin benefits to persist, allowing us to improve our non-GAAP operating income and free cash flow guidance for the year and beyond. The growth we experienced in the quarter came in large part from Smartsheet's ability to provide measurable ROI for customers as they navigate the macro backdrop. For example, in Q3, a Fortune 50 healthcare company expanded its Smartsheet investment by over $0.5 million, bringing their total Smartsheet ARR to nearly $2 million.

我們預計這些利潤率收益將持續存在，使我們能夠改善今年及以後的非 GAAP 營業收入和自由現金流量指導。我們在本季度經歷的增長在很大程度上來自 Smartsheet 在客戶瀏覽宏觀背景時為他們提供可衡量的投資回報率的能力。例如，在第三季度，一家財富 50 強醫療保健公司將其 Smartsheet 投資擴大了超過 50 萬美元，使他們的 Smartsheet ARR 總額達到近 200 萬美元。

Since moving to Advance Gold a year ago, they've seen a 56% increase in license growth as more teams across the organization leverage advanced capabilities to manage programs and processes at scale. Their Data Shuttle usage has increased almost 300% over the past year, and they now have 85 workflows powered by our Bridge integration product. One of the biggest benefits this customer is seeing from Smartsheet is improved efficiency, leading to a measurable ROI. For example, one team used a workflow powered by Bridge to automate a complex manual process for managing staff changes and application requests, decreasing the amount of time spent on it by more than 50%.

自從一年前遷移到 Advance Gold 以來，隨著整個組織中越來越多的團隊利用高級功能來大規模管理程序和流程，他們發現許可證增長了 56%。他們的 Data Shuttle 使用率在過去一年中增加了近 300%，他們現在有 85 個工作流程由我們的 Bridge 集成產品提供支持。該客戶從 Smartsheet 中看到的最大好處之一是提高了效率，從而帶來了可衡量的投資回報率。例如，一個團隊使用由 Bridge 提供支持的工作流來自動執行複雜的手動流程來管理員工變更和應用程序請求，從而將花費在該流程上的時間減少了 50% 以上。

We also saw a leading provider of customs brokerage and logistics upgrade to Smartsheet's enterprise licensing and Advance Gold platform after determining that advance would save them nearly 3,000 hours of labor each year. Those hours saved are delivering more than $300,000 in ROI for the company while giving it the ability to handle a larger volume of quick win transactions and improve employee engagement. In another Q3 advanced deal, the leading integrated reporting platform provider, Workiva moved up to advance, so the professional services group could leverage Control Center and the Smartsheet Salesforce connector to implement a new project and portfolio management solution.

我們還看到一家領先的報關和物流供應商升級到 Smartsheet 的企業許可和 Advance Gold 平台，因為他們確定升級每年可以節省近 3,000 小時的勞動力。節省下來的這些時間為公司帶來了超過 300,000 美元的投資回報率，同時使其能夠處理更大量的速贏交易並提高員工敬業度。在另一項第三季度的高級交易中，領先的集成報告平台提供商 Workiva 向前推進，因此專業服務集團可以利用 Control Center 和 Smartsheet Salesforce 連接器來實施新的項目和投資組合管理解決方案。

They chose Smartsheet as their PPM platform because it offers both introductory and professional-grade tools for project management that can scale to enterprise levels. This solution also gives project managers insight into project risks and time lines and makes it easy for them to see all assignments in one view, helping reduce project cost overruns. They estimate that in over 3 years, they will earn a 340% return on their Smartsheet investment. On the innovation front, we launched several Smartsheet capabilities and experiences at our September ENGAGE conference. where we welcome thousands of Smartsheet customers and partners in person for the first time in 3 years.

他們選擇 Smartsheet 作為他們的 PPM 平台，因為它為項目管理提供了入門級和專業級工具，可以擴展到企業級別。該解決方案還使項目經理能夠深入了解項目風險和時間線，並使他們能夠輕鬆地在一個視圖中查看所有任務，從而有助於減少項目成本超支。他們估計，在 3 年多的時間裡，他們的 Smartsheet 投資將獲得 340% 的回報。在創新方面，我們在 9 月的 ENGAGE 會議上推出了多項 Smartsheet 功能和體驗。 3 年來，我們首次親自迎接成千上萬的 Smartsheet 客戶和合作夥伴。

It was incredibly energizing and gratifying to connect with customers face-to-face and hear their Smartsheet stories. HP, Webex, AbbVie and many more presented during breakout sessions and shared how Smartsheet is empowering them to solve tough problems, deliver on promises and drive tangible results. At Engage, we launched portfolio WorkApps, which combines the power of control center for managing large portfolios with the end user simplicity of WorkApps. A global food services company recently chose portfolio WorkApps as the PPM solution for its global transformation initiatives.

與客戶面對面交流並聆聽他們的 Smartsheet 故事令人難以置信地充滿活力和滿足。 HP、Webex、AbbVie 和許多其他公司在分組會議期間進行了展示，並分享了 Smartsheet 如何幫助他們解決棘手問題、兌現承諾並取得切實成果。在 Engage，我們推出了 Portfolio WorkApps，它結合了用於管理大型投資組合的控制中心的強大功能和 WorkApps 的最終用戶簡便性。一家全球食品服務公司最近選擇了 Portfolio WorkApps 作為其全球轉型計劃的 PPM 解決方案。

The company has a complex global operating model and portfolio WorkApps gives its portfolio managers the ability to create portfolio views tailored to specific organizational roles that span multiple regions, countries and segments. By leveraging portfolio WorkApps, the company now has a clear line of sight into any given initiative across a global matrix environment, allowing leadership to drive a strategic road map and achieve KPI targets. We're also deepening our investment in the PPM space by launching new resource management capabilities such as capacity view that gives resource managers increased visibility of their capacity for planning and deploying talent. We're continually refining our governance and security controls to meet customers' current and future needs. At ENGAGE, we shared details on data egress, a new layer of control over how Smartsheet data can be exported outside of an organization. Such robust security and governance capabilities, which protect confidential information via granular control are a key reason many companies choose our platform. For example, in Q3, a large mortgage lender chose Smartsheet over another CWM solution when the competitor's solution was unable to comply with certain mandatory requirements.

該公司擁有復雜的全球運營模型和投資組合 WorkApps 使其投資組合經理能夠創建針對跨越多個地區、國家和部門的特定組織角色量身定制的投資組合視圖。通過利用產品組合 WorkApps，該公司現在可以清楚地了解全球矩陣環境中的任何給定計劃，從而使領導層能夠推動戰略路線圖並實現 KPI 目標。我們還通過推出新的資源管理功能（例如容量視圖）來深化我們在 PPM 領域的投資，使資源經理能夠更好地了解他們規劃和部署人才的能力。我們不斷完善我們的治理和安全控制，以滿足客戶當前和未來的需求。在 ENGAGE，我們分享了有關數據出口的詳細信息，這是對如何將 Smartsheet 數據導出到組織外部的新控制層。這種通過精細控制保護機密信息的強大安全和治理能力是許多公司選擇我們平台的關鍵原因。例如，在第 3 季度，當競爭對手的解決方案無法滿足某些強制性要求時，一家大型抵押貸款機構選擇了 Smartsheet 而不是另一個 CWM 解決方案。

This customer was impressed with Smartsheet's enterprise-grade security and like how easy it was for teams across various lines of business to start using the platform. Ultimately, they felt Smartsheet was the best platform to help them meet their COO's goals for managing the business more securely and efficiently. We also announced our new desktop application, which was enthusiastically received by people. As worth of new ML-powered home and reimagined search functions. These investments streamline the daily Smartsheet experience for all users by enabling them to find and act on their work quickly. On last quarter's earnings call, I mentioned our acquisition of the Outfit brand management templating and creative automation platform, which we have integrated with Brandfolder.

這位客戶對 Smartsheet 的企業級安全性印象深刻，並且喜歡跨業務線的團隊開始使用該平台是多麼容易。最終，他們認為 Smartsheet 是幫助他們實現 COO 更安全、更高效地管理業務的目標的最佳平台。我們還發布了新的桌面應用程序，受到了人們的熱烈歡迎。與新的 ML 支持的家庭和重新構想的搜索功能一樣有價值。這些投資使所有用戶能夠快速找到工作並採取行動，從而簡化了所有用戶的日常 Smartsheet 體驗。在上一季度的財報電話會議上，我提到了我們收購了 Outfit 品牌管理模板和創意自動化平台，我們已將其與 Brandfolder 集成。

The synergy of the Brandfolder Outfit solution is already providing its value for customers in a meaningful way. In Q3, we landed a $300,000 plus deal with a major appliance manufacturer that will be using Brandfolder plus outfit as their single source of truth for digital asset management and production. Each brand within the company will use Brandfolder to track and manage assets, helping reduce assets for all. Outfit will provide a self-service model for building automated asset templates that they can distribute to wholesalers and retailers to ensure consistent brand marketing. This Outfit powered content automation solution will help the company reduce a 14- to 16-week creative and distribution process to 4 weeks, driving a 400% faster time to market for their marketing campaigns. By providing transparent and efficient content creation distribution and tracking capabilities. The new system allows the company to utilize its existing in-house creative team while eliminating significant outside agency-related costs.

Brandfolder Outfit 解決方案的協同作用已經以有意義的方式為客戶提供了價值。在第三季度，我們與一家大型家電製造商達成了一項超過 300,000 美元的交易，該製造商將使用 Brandfolder plus outfit 作為他們數字資產管理和生產的唯一真實來源。公司內的每個品牌都將使用 Brandfolder 來跟踪和管理資產，幫助減少所有人的資產。 Outfit 將提供一種自助服務模式，用於構建自動化資產模板，他們可以將這些模板分發給批發商和零售商，以確保一致的品牌營銷。這個由 Outfit 提供支持的內容自動化解決方案將幫助公司將 14 到 16 週的創意和分發流程縮短到 4 週，從而將營銷活動的上市時間縮短 400%。通過提供透明高效的內容創建分發和跟踪功能。新系統允許公司利用其現有的內部創意團隊，同時消除大量與外部代理相關的成本。

As you've heard today, despite the current macro environment, we had a strong quarter and remain well positioned for continued growth. Just last month, in their Q4 2022 report, Smartsheet was named a leader in the Forrester Wave for collaborative work management tools. The report recognized that Smartsheet continues to provide an extremely broad set of use cases among the leaders in this Forrester Wave. And that Smartsheet strengths are the extensive availability of work types, flexible use case creation and end user automation capabilities. With people under greater pressure to choose the right CWM solution for their needs, reports like this are important in helping guide their decision-making. In closing, Q3 was another solid quarter for our company, especially considering the global macro headwinds. With our performance in the quarter, a continued focus on operational efficiency and the way we're delivering ROI for customers, I remain confident in our ability to deliver long-term durable growth with improving profitability.

正如您今天所聽到的那樣，儘管當前的宏觀環境不佳，但我們的季度表現強勁，並且仍處於持續增長的有利位置。就在上個月，在他們的 2022 年第四季度報告中，Smartsheet 被 Forrester Wave 評為協作工作管理工具的領導者。該報告承認 Smartsheet 繼續在本次 Forrester Wave 的領導者中提供極其廣泛的用例集。 Smartsheet 的優勢在於工作類型的廣泛可用性、靈活的用例創建和最終用戶自動化功能。隨著人們面臨著更大的壓力來選擇合適的 CWM 解決方案來滿足他們的需求，這樣的報告對於幫助指導他們的決策非常重要。最後，第三季度對我們公司來說又是一個穩定的季度，尤其是考慮到全球宏觀逆風。憑藉我們在本季度的業績、對運營效率的持續關注以及我們為客戶提供投資回報率的方式，我對我們實現長期持久增長並提高盈利能力的能力充滿信心。

Now, Let me turn you over to Pete. Pete?

現在，讓我把你交給皮特。皮特？

Thank you, Mark, and good afternoon, everyone. As Mark mentioned, Q3 was a strong quarter that reflected durable growth and improving profitability. We exceeded our guidance on both the top and bottom line as customers continue to turn to Smartsheet for their diverse set of mission-critical work management needs, and we benefit from improving economies of scale and an intense focus on operational efficiency.

謝謝馬克，大家下午好。正如馬克所提到的，第三季度是一個強勁的季度，反映了持久的增長和盈利能力的提高。隨著客戶繼續轉向 Smartsheet 來滿足他們多樣化的任務關鍵型工作管理需求，我們在最高和最低限度上都超出了我們的指導，我們受益於規模經濟的提高和對運營效率的高度關注。

We saw particular strength among our enterprise customers as these customers continue to deploy our capability-based products to streamline their most mission-critical workflows. Capabilities grew to 29% of subscription revenue in Q3, aided by strong growth in our advanced offering and Brandfolder. I will now go through our financial results for the third quarter. Unless otherwise stated, all references to our expenses and operating results on a non-GAAP basis and are reconciled to our GAAP results in the earnings release and presentation that was posted before the call. Third quarter revenue came in at $199.6 million, up 38% year-over-year.

我們在企業客戶中看到了特別的優勢，因為這些客戶繼續部署我們基於功能的產品以簡化他們最關鍵的任務工作流程。在我們的高級產品和 Brandfolder 的強勁增長的幫助下，功能在第三季度增長到訂閱收入的 29%。我現在將介紹我們第三季度的財務業績。除非另有說明，否則所有對我們費用和經營業績的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相一致。第三季度收入為 1.996 億美元，同比增長 38%。

Subscription revenue was $186.1 million, representing year-over-year growth of 40%. Services revenue was $13.5 million representing year-over-year growth of 12%.

訂閱收入為 1.861 億美元，同比增長 40%。服務收入為 1350 萬美元，同比增長 12%。

Turning to billings. Third quarter billings came in at $219.6 million, representing year-over-year growth of 36%, approximately 92% of our subscription billings were annual with 4% monthly. Quarterly and semiannual represented approximately 3% of the total. Multiyear billings represented less than 1% of total billings. Moving on to our reported metrics.

轉向賬單。第三季度的賬單收入為 2.196 億美元，同比增長 36%，我們大約 92% 的訂閱賬單是年度賬單，每月 4%。季度和半年度報告約佔總數的 3%。多年帳單佔總帳單的比例不到 1%。繼續我們報告的指標。

The number of customers with ARR over $50,000 grew 43% year-over-year to 2,962 and the number of customers with ARR over $100,000, grew 55% year-over-year to 1,346. These customer segments now represent 60% and 46%, respectively, of total ARR. The percentage of our ARR coming from customers with ARR over $5,000 is now 89%. Next, our domain average ACV grew 25% year-over-year to $7,951. We ended the quarter with a dollar-based net retention rate of 129%. The full churn rate remains below 4% given the current macro environment, we expect our overall dollar-based net retention rate to be in the mid-120s by the end of the year.

ARR 超過 50,000 美元的客戶數量同比增長 43% 至 2,962 名，ARR 超過 100,000 美元的客戶數量同比增長 55% 至 1,346 名。這些客戶群現在分別佔總 ARR 的 60% 和 46%。我們的 ARR 來自 ARR 超過 5,000 美元的客戶的百分比現在是 89%。接下來，我們的域平均 ACV 同比增長 25% 至 7,951 美元。我們以 129% 的美元淨保留率結束了本季度。鑑於當前的宏觀環境，完全流失率仍低於 4%，我們預計到今年年底，我們以美元為基礎的整體淨保留率將處於 120 年代中期。

Now turning back to the financials. Our total gross margin was 81%. Our Q3 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 $4.3 million or negative 2% of revenue, which represents a 7 percentage point sequential margin improvement. The margin improvement was the result of cost-saving initiatives we discussed in previous quarters, which included moderation of our hiring plan and cost rationalization.

現在回到財務方面。我們的總毛利率為 81%。我們第三季度的訂閱毛利率為 87%。我們繼續預計 23 財年的毛利率將保持在 80% 以上。總體而言，本季度的營業虧損為負 430 萬美元或占收入的負 2%，這意味著連續利潤率提高了 7 個百分點。利潤率的提高是我們在前幾個季度討論的成本節約舉措的結果，其中包括我們的招聘計劃和成本合理化的適度調整。

Additionally, we led portion of our revenue outperformance dropped to the bottom line, demonstrating the operating leverage inherent in our business model. Based on our improved gross retention, we also moved to our 4-year amortization period for our commission base -- commission expense from a 3-year amortization period. This accounting change contributed about 3 points of margin improvement in Q3. Free cash flow in the quarter was negative $4.6 million.

此外，我們領先的部分收入下降至底線，展示了我們業務模式中固有的運營槓桿。基於我們改進的總保留率，我們還將佣金基礎的 4 年攤銷期 - 從 3 年攤銷期的佣金支出。這一會計變更為第三季度的利潤率提高了約 3 個百分點。本季度的自由現金流為負 460 萬美元。

Now let me move on to guidance. Before I go into the details, a few comments on our approach to guidance. The macro environment dynamic, which impacts near-term visibility. We are, therefore, electing to remain appropriately prudent as it relates to our top line performance. For the fourth quarter of FY '23, we expect revenue to be in the range of $205 million to $207 million and non-GAAP operating loss to be in the range of negative $2 to $0. We expect non-GAAP net loss per share to be negative $0.02 to $0.00 based on weighted average shares outstanding of 131.5 million. For the full fiscal year '23, we are raising our billings guidance to $878 million to $885 million, representing growth of 33% to 34%. We are also raising our revenue guidance to $760 million to $762 million, representing growth of 38%. We expect services to be 7% of total revenue. We are improving our non-GAAP operating loss to be in the range of $45 million to $43 million and non-GAAP net loss per share to be $0.31 to $0.30 for the year based on approximately 130 million weighted average shares outstanding.

現在讓我繼續進行指導。在我進入細節之前，先對我們的指導方法發表一些評論。影響近期能見度的宏觀環境動態。因此，我們選擇保持適當的審慎態度，因為這與我們的頂線業績有關。對於 23 財年第四季度，我們預計收入將在 2.05 億美元至 2.07 億美元之間，非 GAAP 營業虧損將在負 2 美元至 0 美元之間。基於 1.315 億股加權平均流通股，我們預計非 GAAP 每股淨虧損為負 0.02 美元至 0.00 美元。對於整個 23 財年，我們將賬單指導提高到 8.78 億美元至 8.85 億美元，增長 33% 至 34%。我們還將收入指引上調至 7.6 億美元至 7.62 億美元，增長 38%。我們預計服務收入佔總收入的 7%。基於約 1.3 億股加權平均流通股，我們正在改善非 GAAP 營業虧損，使其在 4500 萬美元至 4300 萬美元之間，非 GAAP 每股淨虧損為 0.31 美元至 0.30 美元。

We are raising our free cash flow guidance for the year to $5 million. To conclude, Q3 was another strong quarter. We continue to demonstrate our ability to drive durable growth with improving profitability as the most demanding businesses in the world turn to Smartsheet for their mission-critical and data-intensive work management needs. Now let me turn it back to the operator for questions. Operator?

我們將今年的自由現金流量指引提高到 500 萬美元。總而言之，第三季度是另一個強勁的季度。隨著世界上最苛刻的企業轉向 Smartsheet 來滿足其關鍵任務和數據密集型工作管理需求，我們將繼續展示我們通過提高盈利能力來推動持久增長的能力。現在讓我把它轉回給接線員提問。操作員？

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

（操作員說明）您的第一個問題來自古根海姆證券公司的 John DiFucci。

I wanted to dig in on your comment about improved pipeline conversion given the softening macro backdrop. You raised billings guidance for the year modestly, which is certainly positive. As we think about next year, are you assuming that pipeline conversion stays at current levels or improves throughout the year? And how should we think about pipeline conversion relative to workforce productivity, some of the investments you've made on the front and the sales force continues to ramp. Sorry for the long question. That's my bad habit.

考慮到疲軟的宏觀背景，我想深入了解你對改進管道轉換的評論。你適度提高了今年的賬單指導，這肯定是積極的。當我們考慮明年時，您是否假設管道轉換保持在當前水平或全年有所改善？我們應該如何考慮相對於勞動力生產力的管道轉換，你在前面所做的一些投資和銷售人員繼續增加。很抱歉這個問題很長。那是我的壞習慣。

John, this is Pete. I'll take your question in parts. The first part of your question was pipeline conversion essentially, what I talked about last time was ramping our new reps, we saw our pipeline conversions related to rep productivity improve from that sense. And what we saw in terms of the physical view closing and pipeline, October was a strong month for us as it relates to pipeline closing. So those are the 2 elements of dimension on sort of how pipeline conversion looked. One, from a rep standpoint, and the other from the business deals and how they closed. Can you repeat the second part of your question you asked about, so I just want to take them in sequence.

約翰，這是皮特。我會分幾部分回答你的問題。你問題的第一部分本質上是管道轉換，我上次談到的是增加我們的新代表，我們看到與代表生產力相關的管道轉換從這個意義上得到改善。我們在物理視圖關閉和管道方面看到的是，10 月對我們來說是一個強勁的月份，因為它與管道關閉有關。因此，這些是關於管道轉換外觀的維度的 2 個元素。一個是從銷售代表的角度來看，另一個是從商業交易以及它們如何結束的角度來看。你能重複一下你問的問題的第二部分嗎，所以我只想按順序回答。

As we think about next year, should we assume that pipeline conversion stays at the current levels, or should we assume it gets better or who knows macro backdrop, maybe that changes for the worst, too. How should we think about it? How do you think about it as it relates to guidance?

當我們考慮明年時，我們是否應該假設管道轉換保持在當前水平，或者我們應該假設它會變得更好或者誰知道宏觀背景，也許最壞的情況也會發生變化。我們應該如何思考呢？當它與指導相關時，您如何看待它？

So we haven't come up with guidance for next year. But what I would tell you is 2 things, it's going to be a function of sort of what the macro is because that's going to decide sort of the number of deals and how those are progressing. We will go into the year with a sales team that's very ramped, and that's going to be positive to conversion.

所以我們還沒有提出明年的指導意見。但我要告訴你的是兩件事，這將是某種宏的函數，因為這將決定交易的數量和進展情況。我們將帶著一支非常有活力的銷售團隊進入這一年，這將對轉化產生積極影響。

Your next question is from the line of DJ Hynes with Canaccord Genuity.

您的下一個問題來自 DJ Hynes 和 Canaccord Genuity。

Congrats on the nice set of numbers here. Mark, one for you. I'm curious how, if at all, you've evolved the go-to-market messaging in the current environment? I mean, obviously, ROI is important in any sale. You mentioned it several times in your prepared remarks. I'm wondering if there are certain products or use cases that get more emphasis in a tougher environment?

祝賀這裡有一組不錯的數字。馬克，給你一個。我很好奇，如果有的話，您是如何在當前環境中發展上市消息傳遞的？我的意思是，顯然，投資回報率在任何銷售中都很重要。你在準備好的發言稿中多次提到了這一點。我想知道是否有某些產品或用例在更艱難的環境中得到更多重視？

I think when you break it down in its most simplest terms, we're helping companies drive revenue or achieve cost savings. And when you can apply a program or process, something is scaled to one of the things that they're trying to achieve and using plans speak like that, you typically have an opportunity to have a conversation. So when we think about things like control center, Data Shuttle moving information more quickly and efficiently across systems. We think about having fewer hands on things so you can get shorter cycle times. These are all very hard ROI calculations you can make. So I think the shift, the continued shift from the soft benefits in terms of employee engagement, which is super important, but harder to calculate a benefit from. Customers are responding to how we've oriented ourselves into such discussions. And I think that goes across not only selling seats to somebody, but also introducing our capabilities, which are really the underpinning for a lot of those calculations.

我認為當您以最簡單的方式對其進行分解時，我們正在幫助公司增加收入或實現成本節約。當你可以應用一個程序或過程時，某些事情會被縮放到他們試圖實現的事情之一，並且使用計劃這樣說話，你通常有機會進行對話。因此，當我們考慮諸如控制中心之類的事情時，Data Shuttle 可以更快、更高效地跨系統移動信息。我們考慮減少人工操作，這樣您就可以獲得更短的周期時間。這些都是您可以進行的非常困難的投資回報率計算。所以我認為這種轉變，從員工敬業度方面的軟福利的持續轉變，這是非常重要的，但更難計算出從中獲得的好處。客戶正在回應我們如何將自己定位到此類討論中。而且我認為這不僅涉及向某人出售席位，而且還介紹了我們的能力，這確實是許多計算的基礎。

Yes. That's helpful. And then as a follow-up, look, I mean, a strong quarter improving conversion rates, record pipeline. Does it at all make you kind of rethink the moderation in hiring plans that we've talked about? And I realize this stuff doesn't whip around in 90-day cycles. But I guess I'm getting kind of the commitment to longer-term margin expansion based on what you're seeing?

是的。這很有幫助。然後作為後續行動，看，我的意思是，一個強勁的季度提高了轉化率，創紀錄的管道。這是否會讓您重新考慮我們所討論的招聘計劃中的節制？而且我意識到這些東西不會在 90 天的周期內出現。但我想我會根據你所看到的情況做出對長期利潤率擴張的承諾？

I think we had a really robust start to the year. We brought on a healthy number of team members. And we have not gone through a massive layoff in our company. So we have retained really good strength. We've invested in ramping those individuals. And as Pete just said, I think going into the end of the year with a ramp team, a larger ramp team than we had a year ago, that actually gives us quite a bit of confidence to out and execute. So I think it would be in a different position had we finished the year with a very (inaudible) all of that great talent we brought on the beginning of the year. So I feel like we're still the beneficiaries of some of those earlier in the year moves.

我認為我們今年的開局非常強勁。我們帶來了大量的團隊成員。而且我們公司還沒有經歷過大規模裁員。所以我們保留了非常好的實力。我們已經投資於提升這些人。正如皮特剛才所說，我認為進入今年年底，我們將擁有一支比一年前更大的斜坡團隊，這實際上給了我們相當大的信心去執行。因此，我認為如果我們在今年年初帶來了非常（聽不清）的所有優秀人才，那麼情況會有所不同。所以我覺得我們仍然是今年早些時候一些舉措的受益者。

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

你的下一個問題來自 Jefferies 的 Brent Thill。

Mark, you were in the CRO last time we went through the recession. Obviously, you're in a completely different position. But any learnings parallels that you're seeing in KPIs you're monitoring going into calendar '23?

馬克，上次我們經歷經濟衰退時你在 CRO。顯然，您處於完全不同的位置。但是，您在 23 年日曆中監控的 KPI 中看到的任何學習相似之處是什麼？

Yes. I think one of the big lessons, Brent, is just being quick, and the another sole notion survival of the quickest. I think you have to pair that, though, would be thoughtful. And it's like we're not just solving for Q3, we're not just solving for Q4. FY '24 is right around the corner. Pete and I are started talking about FY '25. So it's like these are all important dimensions. And I think one of the learnings is not to get too over-rotated on that next 90-day window. And I think Pete has been a good partner to me in helping manage some of that balance. So I think that's probably the largest takeaway.

是的。布倫特，我認為重要的教訓之一就是要快，而另一個唯一的概念是最快的生存。不過，我認為您必須將其配對，這會很周到。就像我們不只是解決 Q3，我們不只是解決 Q4。 FY '24 指日可待。皮特和我開始談論 FY '25。所以好像這些都是重要的維度。我認為其中一個教訓是不要在接下來的 90 天窗口中過度輪換。我認為 Pete 一直是我的好夥伴，幫助我實現了一些平衡。所以我認為這可能是最大的收穫。

Yes. I mean, Pete, just as a quick follow-up on the rep productivity. I mean, it's kind of counter to what we're hearing at other companies. What do you think inverted the quota attainment for you, what changed there? Was it something that happened in the demand environment? Was it one particular geography? What -- was there anything you can put your pulse on because that's kind of counter to what we're hearing in other companies right now?

是的。我的意思是，Pete，只是對代表生產力的快速跟進。我的意思是，這與我們在其他公司聽到的情況有點相反。你認為是什麼改變了你的配額實現，那裡發生了什麼變化？這是需求環境中發生的事情嗎？這是一個特定的地理位置嗎？什麼 - 有什麼你可以把你的脈搏放在心上，因為這與我們現在在其他公司聽到的有點相反嗎？

Yes, the rep productivity that I was describing was for our newer reps. We had a series of what I call well-timed and absolutely meticulously defined initiatives of how we would ramp the newer reps into territories they had never managed accounts, they had never managed. And I think we're seeing the dividends of that play. So we've seen the productivity of those reps client. Now remember, we had a significant class that we ramped in. So when you're looking at the weighted average of the impact of that many people getting ramped up with a systematic set of plays, that's what we're seeing.

是的，我描述的代表生產力是針對我們新代表的。我們有一系列我稱之為適時且絕對精心定義的舉措，這些舉措是關於我們如何將新代表推向他們從未管理過的客戶，他們從未管理過的領域。我認為我們正在看到那場比賽的紅利。所以我們已經看到了那些代表客戶的生產力。現在請記住，我們有一個重要的班級，我們已經開始了。所以當你看到許多人通過一系列系統的比賽得到提升的影響的加權平均值時，這就是我們所看到的。

I think it's also an important, Brent, to recognize that we're making a relative statement. We were not pleased with where we were last quarter in terms of rep productivity on certain cohorts. We're seeing improvement there. So heading in the right direction. I think that is a statement though against what we saw last quarter as opposed to we are exceeding at all levels on all fronts. I think we still have a good room to go to continue to improve.

布倫特，我認為認識到我們正在做一個相對的聲明也很重要。就某些群體的代表生產力而言，我們對上個季度的表現不滿意。我們在那裡看到了改善。所以朝著正確的方向前進。我認為這是一個聲明，儘管與我們上個季度看到的情況相反，而不是我們在各個方面都超過了各個級別。我認為我們還有很大的空間去繼續改進。

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

你的下一個問題來自摩根大通的 Pinjalim Bora。

Congrats on the quarter. Mark, I just wanted to understand a little bit. I guess it's a great quarter. It seems like numbers are great, but we are hearing a lot of consternation from other companies as well, right? Last quarter was you had faced some difficulties. So I'm trying to understand how does the macro feel for you? Is it the improvement that you did within some of these messaging plays that helped you this quarter versus the normal discussions on a macro front. Is that kind of similar to last quarter? Or is it -- does it feel a little bit better or worse?

祝賀這個季度。馬克，我只是想了解一點。我想這是一個很棒的季度。看起來數字不錯，但我們也從其他公司聽到很多驚愕，對吧？上個季度你遇到了一些困難。所以我想了解宏觀對您的感覺如何？與宏觀方面的正常討論相比，您在本季度幫助您的一些消息傳遞遊戲中所做的改進是否有所幫助？這與上一季度有何相似之處？或者是——感覺好一點還是更糟？

I think it feels quite similar. I think the way we're engaging in those conversations are starting to produce yield for us. But I would say that the tenor within the customer environment is quite similar. I would say how we're responding to that has proven to be positive. And I think that is a function of reps feeling more confident, thus being able to present these solutions in ways that resonate with them. But I would say it is as much getting yourself higher in that priority list for customer consideration as opposed to the amount of budget customers have starting to swell again. So I think it's really our placement in that stack rank, that's helping us.

我覺得感覺挺像的。我認為我們參與這些對話的方式開始為我們帶來收益。但我會說客戶環境中的基調非常相似。我會說我們對此的回應方式已被證明是積極的。我認為這是銷售代表感到更加自信的一個功能，因此能夠以與他們產生共鳴的方式呈現這些解決方案。但我要說的是，讓自己在客戶考慮的優先級列表中排名更高，而不是客戶開始再次膨脹的預算量。所以我認為這真的是我們在那個堆棧排名中的位置，這對我們有幫助。

Yes. Got it. One follow-up. I wanted to ask you about WorkApps. We have some -- we have had some conversations with some of your customers who are talking about consolidation, not just around work management applications, but consolidation of other third-party apps, in-house apps, scheduling app or something else, right, which are being built on top of WorkApps. Are you seeing that? Is that kind of a driver for the enterprise plan at this point where people are trying to save money to more with less?

是的。知道了。一個跟進。我想問你有關 WorkApps 的問題。我們有一些 - 我們已經與一些正在談論整合的客戶進行了一些對話，不僅僅是圍繞工作管理應用程序，而是整合其他第三方應用程序、內部應用程序、日程安排應用程序或其他東西，對吧，它們構建在 WorkApps 之上。你看到了嗎？在人們試圖用更少的錢節省更多的錢的這一點上，這是否是企業計劃的驅動力？

Yes. I think any time you have a -- the beautiful thing about the platform as opposed to a point tool is that it can be utilized in a multitude of ways. And I think any time someone sees a set of technologies that they can utilize across multiple use cases and drive a higher yield for an amount of spending. That's a good thing. So I think WorkApps is a contributing for us there. I wouldn't say WorkApps is the tip of the spear. It's one of a whole multitude of things that we're presenting to clients. I think in the coming years, I think WorkApps will continue to gain steam, the release we had an ENGAGE by connecting it to control center, which has been a really successful offering for us. Customers are really happy to see that.

是的。我認為任何時候你都有一個 - 與點工具相比，平台的美妙之處在於它可以以多種方式使用。而且我認為，任何時候有人看到他們可以在多個用例中使用的一組技術，並以一定的支出獲得更高的收益。這是好事。所以我認為 WorkApps 在那里為我們做出了貢獻。我不會說 WorkApps 是矛尖。這是我們向客戶展示的眾多內容之一。我認為在未來幾年，我認為 WorkApps 將繼續獲得發展，我們通過將其連接到控制中心來發布 ENGAGE，這對我們來說是一個非常成功的產品。客戶真的很高興看到這一點。

I think we'll see some benefits of that marriage between touch control center and WorkApps in the quarters to come.

我認為我們會在未來幾個季度看到觸控中心和 WorkApps 之間的結合帶來的一些好處。

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

你的下一個問題來自摩根士丹利的 Josh Baer。

Congrats on a strong quarter. I wanted to ask one on macro and sort of in relation to guidance. We can see the deceleration in the implied Q4 billings guidance and the commentary just around the decline in the net retention rate. So I was hoping you could talk about some of the macro assumptions that's embedded in that guidance? And when you talk about prudence, what does that mean if you could add some details there?

祝賀一個強勁的季度。我想問一個關於宏觀和與指導有關的問題。我們可以看到隱含的第四季度賬單指引和評論圍繞淨保留率下降的減速。所以我希望你能談談該指南中嵌入的一些宏觀假設？當你談到審慎時，如果你可以在那裡添加一些細節，那意味著什麼？

Absolutely. So Josh, the growth decel implied in our billings guidance is a function of the strong comp from Q4 from a year ago. And we've combined that with sort of a prudent outlook given the macro environment, which includes an expectation of lower customer budget spending sort of compared to prior periods. And that's what substantiates the macro in your question, which is we're seeing a macro that's worsening. But the good news is when I gave you guidance a quarter ago, I gave you a composite guide of Q3 and Q4 and we had projected that Q4 would be softer given a worsening macro that was built in. So that's the basis of the assumption.

絕對地。所以喬希，我們的賬單指導中暗示的增長減速是一年前第四季度強勁表現的一個函數。鑑於宏觀環境，我們將其與某種審慎的展望相結合，其中包括與前期相比客戶預算支出有所降低的預期。這就是在你的問題中證實宏觀的原因，即我們看到一個正在惡化的宏觀。但好消息是，當我在一個季度前給你指導時，我給了你第三季度和第四季度的綜合指南，我們預計第四季度會更加疲軟，因為內置的宏觀經濟正在惡化。這就是假設的基礎。

Okay. Great. That makes a lot of sense. And then if you could just add any commentary on the linearity of sort of demand trends month-to-month throughout the quarter and into November. Have you been seeing things get worse over the last months leading into Q4?

好的。偉大的。這很有意義。然後，如果您可以在整個季度和 11 月逐月添加任何關於需求趨勢線性度的評論。在進入第四季度的過去幾個月裡，您是否看到情況變得更糟？

So the -- October was a strong month for us relative to the, what I call the close rates and the pipeline close rates we saw. November turned out steady to our expectations. We expected the macro cycle to be in play, and it produced results that are very consistent with our expectations. So remember, in Q4, there is a great deal of business to be booked in December and January. So that's what's built into our assumption as we've guided to the quarter.

因此，相對於我所說的收盤價和我們看到的管道收盤價，10 月對我們來說是一個強勁的月份。 11 月結果穩定，符合我們的預期。我們預計宏觀週期會發揮作用，它產生的結果與我們的預期非常一致。所以請記住，在第四季度，12 月和 1 月有大量業務需要預訂。這就是我們指導本季度時假設的內容。

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

你的下一個問題來自 Scott Berg 與 Needham 的對話。

Congrats on good quarter and I guess that 2 questions here. First of all, Pete, you talked about capabilities where I think it was 29% of revenues in the quarter. As the company continues to move upmarket more, what does that mix look like at kind of, I don't know, peak levels? And then how should we think about the ARPU lift that you're gaining from those customers that are adding on some of these capabilities today?

祝賀你的好季度，我想這裡有 2 個問題。首先，皮特，你談到了我認為佔本季度收入 29% 的能力。隨著公司繼續向高端市場轉移，這種組合在某種程度上是什麼樣的，我不知道，最高水平？那麼我們應該如何考慮您從那些今天添加其中一些功能的客戶那裡獲得的 ARPU 提升？

Still the, I think, a [meta] statement of sort of where we see capabilities. And I think when you talk about a percentage of capabilities of total, it sort of implies that there isn't going to be as much growth on the user license part of it. We see both as really solid drivers. We see the width of our use case, if you remember the information Mark provided on the latest reports, we have a wide variety of use cases that drive what I call our expand motion. Think of capabilities as the client piece of it. We think of that number as being -- as growing over time because they are fast growing relative to our core license business. And we gave some guidance during our last Analyst Day on how big they could be but we're stretching the surface on that part of it.

我認為，仍然是關於我們在哪裡看到能力的 [元] 聲明。而且我認為，當您談論總功能的百分比時，這有點意味著其中的用戶許可部分不會有太大的增長。我們認為兩者都是真正可靠的驅動因素。我們看到了用例的寬度，如果您還記得 Mark 在最新報告中提供的信息，我們有各種各樣的用例，這些用例推動了我所說的擴展運動。將功能視為它的客戶端。我們認為這個數字是——隨著時間的推移而增長，因為它們相對於我們的核心許可業務正在快速增長。在上一個分析師日期間，我們就它們的規模給出了一些指導，但我們正在擴大這部分的表面。

So I do feel like as customers start to unlock the scale that they need after they've deployed the solution, you're going to see more and more customers small and large start to use them in the most demanding way.

所以我確實覺得，隨著客戶在部署解決方案後開始釋放他們所需的規模，你會看到越來越多的大小客戶開始以最苛刻的方式使用它們。

Got it. That's helpful. And then from a follow-up perspective, maybe this is for Mark. I wanted to see if you can talk about the competitive environment a little bit. And I asked the question in the framework. You had a competitor report their results tonight that were not nearly as strong as yours we'll go with that.

知道了。這很有幫助。然後從後續的角度來看，也許這是給馬克的。我想看看你是否可以談談競爭環境。我在框架中問了這個問題。你有一個競爭對手今晚報告了他們的結果，他們的結果幾乎沒有你的那麼強，我們會接受的。

Are you seeing anything different out there that might be driving the strength of your business versus others maybe not continuing as well.

您是否看到有什麼不同之處可能會推動您的業務發展，而其他人可能不會繼續發展。

It's harder for me to make a relative statement, Scott. I think as I said earlier, I can share what customers appear to be responding well to in our offering. And I think the capabilities alongside the core licenses, that is a composite that people are responding to, and it manifests itself not only in growth but also retention. If you have multiple value points that you can deliver to somebody, I think you have a healthier relationship. And I think that's helping drive our business.

斯科特，我很難做出相對的陳述。我想正如我之前所說，我可以分享客戶似乎對我們的產品反應良好的內容。我認為核心許可的功能是人們正在響應的組合，它不僅體現在增長上，也體現在保留上。如果你有多個價值點可以傳遞給某人，我認為你們的關係會更健康。我認為這有助於推動我們的業務。

Congrats on the good quarter.

恭喜這個好季度。

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

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

Also my congratulations. Mark, maybe could you give us a bit of perspective on the desktop app and what kind of feedback you're getting from this launch at this point?

還有我的祝賀。馬克，也許你能給我們一些關於桌面應用程序的觀點，以及你現在從這次發布中得到什麼樣的反饋？

Yes, George, I think one of the things that's always I find funny over the many years we've been doing this is somehow software companies get so excited about the next most extremely high-value obscure feature than someone says, but I really want the easy thing. And I think the desktop app is just such a beautiful example of that where people want to see it in the tray on their machine. They want to be able to get quick access to it. They don't want the tabs that represent all their work in Smartsheet co-mingled with a bunch of other tabs in their Chrome or Safari browsers or Microsoft browser. So these are very simple things that people respond to.

是的，喬治，我認為多年來我們一直在做這件事，我一直覺得很有趣的事情之一就是軟件公司對下一個最高價值的晦澀功能感到非常興奮，而不是有人說的，但我真的很想簡單的事情。而且我認為桌面應用程序就是這樣一個很好的例子，人們希望在他們機器的托盤中看到它。他們希望能夠快速訪問它。他們不希望代表他們在 Smartsheet 中所有工作的選項卡與他們的 Chrome 或 Safari 瀏覽器或 Microsoft 瀏覽器中的一堆其他選項卡混合在一起。所以這些都是人們回應的非常簡單的事情。

And I think when someone is living in your app and you can make their life easier, either through better design, or more quicker access, they're thankful for it. I think some of our team members were surprised at ENGAGE. And this is something which you just can't substitute with the digital conference. When you look at the number of people queued up at a booth, wanting to learn about this thing versus many other things, you really get that topical sense for [how] this matters. And the desktop app is one of those. It's been something we've been working on for some time. Thousands of people, many thousands of people are using it today. I think it's still an EAP. It will be released shortly, broadly. So we'll continue to invest behind that.

而且我認為，當有人住在您的應用程序中並且您可以通過更好的設計或更快速的訪問來讓他們的生活更輕鬆時，他們會為此心存感激。我認為我們的一些團隊成員對 ENGAGE 感到驚訝。這是數字會議無法替代的。當您查看在展位前排隊、想要了解這件事與許多其他事情的人數時，您就會真正了解這件事的重要性。桌面應用程序就是其中之一。這是我們一直在努力的事情。今天有成千上萬的人在使用它。我認為它仍然是一個EAP。它將很快廣泛發布。因此，我們將繼續投資於此。

And with that, maybe could you give some perspective on when people are in the app, are you seeing them engage with multiple products in a more broad way with the overall platform?

有了這個，也許你能給出一些關於人們何時使用應用程序的觀點，你是否看到他們以更廣泛的方式與整個平台一起使用多種產品？

When you say more products you mean more elements of our product or integrations with...

當您說更多產品時，您的意思是我們產品的更多元素或與……的集成。

Yes, more elements of your product.

是的，您產品的更多元素。

Yes. And I think as we dovetail things like Brandfolder into the experience and our resource management more into our core experience, by lowering that hurdle height for people to easily traverse, yes, we are seeing that happen. The one thing that I'm quite looking forward to and I shared this on a prior call, as we remove -- further remove the friction from people being able to explore our entire portfolio. As Pete said a second ago, today a lot of those capabilities are really consultative sale. And what Praerit and the engineering team are working on continue to let people discover, explore, realize the value and then ultimately buy those in a self-directed manner. So I think in the coming 2 years, you're going to see a much greater diversity in people using more things in our products because we're lowering that friction.

是的。而且我認為，當我們將 Brandfolder 之類的東西融入到體驗中，並將我們的資源管理更多地融入到我們的核心體驗中時，通過降低人們輕鬆穿越的障礙高度，是的，我們正在看到這種情況發生。我非常期待的一件事，我在之前的電話會議上分享了這一點，因為我們刪除了 - 進一步消除了人們能夠探索我們整個產品組合的摩擦。正如皮特剛才所說，今天很多這些能力實際上都是諮詢銷售。 Praerit 和工程團隊正在努力繼續讓人們發現、探索、實現價值，然後最終以自主的方式購買這些產品。所以我認為在接下來的兩年裡，你會看到人們在我們的產品中使用更多的東西，因為我們正在降低摩擦。

Your next question comes from the line of Alex Zukin with Wolfe Research.

您的下一個問題來自 Wolfe Research 的 Alex Zukin。

This is Ethan Brook on for Alex Zukin. Congrats on the quarter. I wanted to ask, I appreciate the color for where NRR will go next quarter. But as you think about looking to next year, is like mid-120 [brings] the right way we should think about I guess where NRR would stabilize, and if you look to next year, it's high 20s growth the right way we should be thinking about it.

這是 Alex Zukin 的 Ethan Brook。祝賀這個季度。我想問，我很欣賞 NRR 下個季度的發展方向。但是當你考慮展望明年時，就像 120 歲中期 [帶來] 我們應該思考的正確方式我猜 NRR 會穩定在哪裡，如果你展望明年，我們應該以正確的方式實現 20 多歲的高增長考慮此事。

Ethan, we're not talking about next year because that's a part of the whole construct of how we see next year. It's related to what we see bookings, billings, all those elements. So it's a little premature to talk about sort of where that number will be. I think longer term, we see great capability for that number to grow just based on our history and sort of the products we've got in the pipeline. So that's the way I'll leave it.

Ethan，我們不是在談論明年，因為這是我們對明年的看法的整體結構的一部分。它與我們看到的預訂、賬單以及所有這些元素有關。所以現在談論這個數字的位置還為時過早。我認為從長遠來看，我們看到這個數字有很大的增長能力，只是基於我們的歷史和我們正在開發的產品種類。所以這就是我要離開的方式。

Great. And then congrats also on showing the great improvement in incremental margins improved from like negative 20 to negative 3%. I guess is this the kind of the pace and rate we should think about margin improvement going forward? And I guess how are you thinking about balancing, I guess, improving this margin, (inaudible) a little bit more? Can we expect a little bit more on the margin side? And also, I just want to ask, is the 10% free cash flow margin for calendar '24 still on the table?

偉大的。然後也祝賀增量利潤率從負 20% 提高到負 3% 的巨大改善。我想這是我們應該考慮提高利潤率的步伐和速度嗎？我想你是如何考慮平衡的，我想，提高這個利潤率，（聽不清）多一點？我們可以在保證金方面期望更多一點嗎？而且，我只想問，24 年日曆的 10% 自由現金流保證金是否仍在討論中？

So Ethan, I appreciate the question. We've made significant strides by really focusing on operational improvements and moderating hiring. So we've seen that play out in the margins you've just seen. What I would tell you is we're going to continue that effort by trying to go after efficient growth, and that's going to be something we'll continue for several years as we go through it. That being said, we're not going through specific callouts of how much margin improvement there is and what rate it clips at. There's a little bit of work to be done before we get to that point.

所以 Ethan，我很欣賞這個問題。通過真正專注於運營改進和適度招聘，我們取得了重大進展。所以我們已經看到了你剛剛看到的利潤率。我要告訴你的是，我們將通過努力追求有效增長來繼續努力，這將是我們將在經歷它的過程中持續數年的事情。話雖這麼說，我們並沒有具體說明利潤率提高了多少以及它的削減率是多少。在我們達到這一點之前，還有一些工作要做。

Congrats, again, on the good quarter.

再次祝賀你的好季度。

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

你的下一個問題來自 RBC Capital Markets 的 Rishi Jaluria。

This is Richard Poland on for Rishi Jaluria. I guess just in terms of the macro environment versus what you saw 90 days ago, is there any way to kind of bifurcate what you're seeing between SMB and enterprise and just kind of -- are there any pockets of either demand improvement or demand softening that you'd call out within that?

這是 Richard Poland 的 Rishi Jaluria。我想就宏觀環境與您 90 天前所見相比，是否有任何方法可以將您在 SMB 和企業之間看到的情況分開，以及 - 是否有任何需求改善或需求的口袋軟化你會在其中呼喚？

So Richard, this is Pete. What we've seen is we've seen, if you would parse the segments of the market differently. I would say in the U.S. mid-market, we've seen sort of global impacts more broadly so. I would say we've had strength in the enterprise based on just the number of transactions we've been able to book with these enterprises. So those would be like the texture on it. I think you're looking for that level. I think in terms of verticals, we've seen strength in manufacturing, global energy architecture, construction, if you will, and some of the weaker verticals for us have been technology, probably consumer good, and media, if you will.

理查德，這是皮特。如果您以不同的方式解析市場細分，我們所看到的就是我們所看到的。我想說，在美國中端市場，我們已經看到了更廣泛的全球影響。我會說，我們在企業中的實力僅基於我們能夠與這些企業進行的交易數量。所以那些就像上面的紋理。我認為您正在尋找那個級別。我認為就垂直領域而言，我們已經看到了製造業、全球能源架構、建築領域的實力，如果你願意的話，對我們來說一些較弱的垂直領域是技術，可能是消費品和媒體。

Great. That's very helpful. And then just as I think about SBC, I mean, stock-based compensation came down nicely in the quarter. Should we expect that to continue to trend down. Just kind of any update on your thoughts around how you think about stock-based comp?

偉大的。這很有幫助。然後就像我想到 SBC 一樣，我的意思是，基於股票的薪酬在本季度下降得很好。我們是否應該期望它繼續呈下降趨勢。關於您如何看待基於股票的補償，您的想法有什麼更新嗎？

Yes. Stock-based comp is really important to us because it's a key element of how we look at the business. I think you should expect a few things to happen. I'll answer your question right at the outset, do we expect stock-based compensation in the future to decline as a percent of revenue? Yes, it should decline. That's the way the results will come out.

是的。基於股票的補償對我們來說非常重要，因為它是我們看待業務的關鍵要素。我認為你應該期待一些事情的發生。我會在一開始就回答你的問題，我們是否預計未來基於股票的薪酬佔收入的百分比會下降？是的，它應該下降。這就是結果出來的方式。

Now when you think of stock-based compensation, think of it as a number of people times the how much you offer them being the driver. We've essentially, going forward, moderated our hiring plan because we don't need to hire the same pace. We're doing this very differently. So what you're going to see is a positive impact on the number of people we're bringing in and the impact it has on stock comp. That being said, stock comp is dictated by the history of what you've done in the past. So when you look at it, you say large part of it is already set by the prior hires that we've put in place. But -- so those are the 2 effects that play into the total stock comp that gets created, and we're focused on making sure that it goes down year-over-year as a percent of revenue.

現在，當您想到基於股票的薪酬時，可以將其視為人數乘以您為他們提供的司機薪酬。從本質上講，我們已經調整了我們的招聘計劃，因為我們不需要以同樣的速度招聘。我們正在以非常不同的方式做這件事。所以你將看到的是對我們帶來的人數及其對股票補償的影響的積極影響。話雖這麼說，股票薪酬取決於你過去所做的事情的歷史。因此，當您查看它時，您會說其中很大一部分已經由我們之前聘用的人員設定。但是 - 所以這些是影響創建的總股票組合的兩種影響，我們專注於確保它佔收入的百分比逐年下降。

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

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

This is Robert G. on for Terry. Curious to get an update on the newer onboarding experience and some of the other recent initiatives around helping users start quickly. Have you all started to see greater usage and penetration with newer customers today versus newer customers from say a year ago, what have been the specific drivers of that, if so?

這是特里的羅伯特·G。很想了解有關新的入職體驗的最新信息，以及最近圍繞幫助用戶快速入門的一些其他舉措。與一年前的新客戶相比，你們是否都開始看到今天新客戶的使用率和滲透率更高，如果是這樣，具體的驅動因素是什麼？

Yes. We have a number of measures there, Robert. And one of the things that we've seen a nice uptick in is the percentage of new participants who are successful in creating their first solution, the first thing that they're starting to try and work with. We saw really nice improvements in that. That was one of the early success factors that we were trying to solve for. There are a number of other designs and elements that are being rolled in later this quarter targeted for Q1 and Q2, which I think will also have beneficial results in terms of conversion rate. But really pleased with what the team has put out there in terms of improving that experience.

是的。羅伯特，我們有很多措施。我們看到的一個很好的上升趨勢是成功創建第一個解決方案的新參與者的百分比，這是他們開始嘗試和使用的第一件事。我們在這方面看到了非常好的改進。這是我們試圖解決的早期成功因素之一。本季度晚些時候，還有許多針對第一季度和第二季度推出的其他設計和元素，我認為這也會在轉化率方面產生有益的結果。但對團隊在改善體驗方面所做的工作感到非常滿意。

One other really nice benefit from what the team put in, we have greater visibility into what somebody's intent is and that can come on a few fronts. The more we understand someone's intent, the better we can serve them, both in terms of consulting, advising templates to them, how we support them. So overall, it helps us serve better, help someone get navigated and started better. So pleased with the improvements.

團隊投入的另一個非常好的好處是，我們可以更清楚地了解某人的意圖，這可以在幾個方面實現。我們越了解某人的意圖，我們就能更好地為他們服務，無論是在諮詢、向他們提供模板建議，還是我們如何支持他們方面。所以總的來說，它可以幫助我們更好地服務，幫助人們更好地導航和開始。對改進感到非常滿意。

That's great. And just one quick follow-up. Hoping to dive a little deeper on Brandfolder, how attach rates and penetration for the solution been performing relative to expectations? And what trends are you seeing in the overall digital asset management market from a demand perspective?

那太棒了。並且只是一個快速跟進。希望更深入地了解 Brandfolder，該解決方案相對於預期的附加率和滲透率如何？從需求的角度來看，您認為整個數字資產管理市場有哪些趨勢？

So Robert, we were pretty pleased with our performance with Brandfolder. We're seeing broad resonance as people look at the combined Brandfolder Smartsheet solution together. I think what's really helped is, one, the customers' impact which comes from both those solutions together. And this year, we launched a model where we basically turned on our core Smartsheet sellers to help in selling Brandfolder, that's paid pretty good dividends for us as well. As far as the digital market and Brandfolder, I'll let Mark speak to that a little bit.

所以羅伯特，我們對 Brandfolder 的表現非常滿意。當人們一起查看組合的 Brandfolder Smartsheet 解決方案時，我們看到了廣泛的共鳴。我認為真正有幫助的是，第一，這兩種解決方案共同產生的客戶影響。今年，我們推出了一種模式，我們基本上啟用了我們的核心 Smartsheet 賣家來幫助銷售 Brandfolder，這也為我們帶來了可觀的回報。至於數字市場和 Brandfolder，我會讓 Mark 稍微談一談。

I think there's still a huge opportunity for us to educate our customers and prospects about what's available to them and I think, well we have examples that we can point to like this big appliance manufacturer who's doing pretty impressive stuff in terms of content automation. A lot of times when we share those stories with people, they're unfamiliar that, that's even possible.

我認為我們仍然有很大的機會來教育我們的客戶和潛在客戶，讓他們了解他們可以獲得什麼，而且我認為，我們有一些例子可以指出，比如這家大型家電製造商，他們在內容自動化方面做得非常出色。很多時候，當我們與人們分享這些故事時，他們並不熟悉，甚至有可能。

So I think while digital asset management has been around and sort of many -- some customers are fluent in it, the majority are not, and it's still in an education phase. I think with our -- as we talked about ramp up reps, we talk often about our newest cohort. I also think about ramping in productivity with our existing reps on new lines of business like Brandfolder and Outfit. And I think, I would say with the median rep on our team who's experienced is much better suited today to speak to that value proposition. So again, I think it's a very different phase in terms of stage, in terms of market understanding, and we're leaning into it.

所以我認為，雖然數字資產管理已經存在並且有很多 - 一些客戶精通它，但大多數人不是，而且它仍處於教育階段。我認為我們 - 當我們談論增加代表時，我們經常談論我們最新的隊列。我還考慮提高我們現有代表在 Brandfolder 和 Outfit 等新業務領域的工作效率。而且我認為，我會說我們團隊中經驗豐富的中位代表今天更適合談論這個價值主張。因此，我再次認為，就階段而言，就市場理解而言，這是一個非常不同的階段，我們正傾向於它。

Your next question is from the line of Jake Roberge with William Blair.

你的下一個問題來自 Jake Roberge 和 William Blair。

Congrats on the great results. Pete, you've talked a lot about cost rationalization and moderation of your hiring plan helping on the margin front. Given you beat by over $16 million on the operating margin front, could you dig a little more into the areas you're finding leverage in the model. And then when we think about moderation in hiring, do you expect that to continue into next year when comparing it to this year's hiring plan?

恭喜取得好成績。皮特，你談到了很多關於成本合理化和適度招聘計劃的問題，這有助於提高利潤率。鑑於您在營業利潤率方面超過 1600 萬美元，您能否更深入地研究您在模型中找到槓桿作用的領域。然後，當我們考慮適度招聘時，與今年的招聘計劃相比，您是否預計這種情況會持續到明年？

So the $16 million beat you're referencing is for the quarter, right? So I just want to make sure I answer your question.

所以你提到的 1600 萬美元節拍是針對本季度的，對吧？所以我只想確保我回答了你的問題。

Yes, for the quarter.

是的，對於本季度。

Great. So I'd say the 2 elements of that beat are coming from -- I'll lay it out for you, probably half the beat is coming from the revenue leverage that we've had as we've moderated and controlled costs. So revenues have grown up. We've moderated our hiring and people-related costs that go with it. that's produced sort of more than half the effect. About 3 points or 3 percentage points of it have come from -- we've looked at the customer duration that's associated with a greater gross retention rate, and that's meant a lower commission expense, that's accounted for about 3% of it. So that gives you some texture. And the rest of it is just hard core operational cost containment. Looking at every dollar that you're spending and asking whether it has value in terms of the priorities you've set up. That's the first part of it.

偉大的。所以我想說那個節拍的兩個要素來自——我會為你列出來，可能一半的節拍來自我們在緩和和控製成本時所擁有的收入槓桿。所以收入增長了。我們已經降低了隨之而來的招聘和人員相關成本。這產生了一半以上的效果。其中大約 3 個百分點或 3 個百分點來自——我們研究了與更高的總保留率相關的客戶持續時間，這意味著更低的佣金支出，約佔其中的 3%。所以這給了你一些質感。其餘的只是核心運營成本控制。查看您花費的每一美元，並詢問它是否對您設置的優先級有價值。這是它的第一部分。

And the second part of your question was on hiring in the future. We don't expect to have a similar sized hiring class coming on board and hiring expectations in the future will be significantly smaller. So we're going to see the benefit that we've created this year in a continued manner next year as we think of the operating leverage.

你問題的第二部分是關於未來的招聘。我們預計不會有類似規模的招聘班級加入，未來的招聘預期會小得多。因此，當我們考慮運營槓桿時，我們將在明年繼續看到我們今年創造的收益。

That's really helpful context. And then some of your peers have called out some headwinds from a user perspective, given slower hiring rates and some layoffs at tech companies. Have you seen any large customers reduce headcount as a result of those headwinds, or just given your enterprise customer base and that focus, are you more immune to those issues than some other peers?

這真的很有幫助。然後你的一些同行從用戶的角度提出了一些不利因素，考慮到科技公司的招聘速度放緩和一些裁員。您是否看到任何大客戶因這些逆風而裁員，或者只是考慮到您的企業客戶群和這種關注，您是否比其他同行更能避免這些問題？

I think for the last 5 years, our whole mindset about penetrating the enterprise has been what we call the earned enterprise. So what we don't do is we don't go in and sell what we think at the time is a big air or a deal and go wall to wall. We say, how can we mobilize, how can we deliver value and then we grow over time with them because very few of our large customers are full wall to wall where your dollar retention is reliant on the next person they hire. We're actually somewhat insulated from that. The other piece that's helpful to us is because some of our ARR is grounded in value components that we call capabilities, it's actually not tied out to a user license.

我認為在過去的 5 年裡，我們關於滲透企業的整個心態一直是我們所說的贏得企業。所以我們不做的是我們不進去賣我們當時認為是大空頭或一筆交易的東西，然後挨家挨戶地推銷。我們說，我們怎樣才能動員起來，我們怎樣才能創造價值，然後我們隨著時間的推移與他們一起成長，因為我們的大客戶中很少有人是牆到牆的，你的美元保留取決於他們僱用的下一個人。我們實際上與此絕緣。對我們有幫助的另一部分是因為我們的一些 ARR 是基於我們稱之為功能的價值組件，它實際上並沒有綁定到用戶許可。

And if you want to keep benefiting from that, you will keep subscribing to it. But it is not hinged on that next hire. And I think that's where our mixed model or hybrid model is turning out to be quite helpful.

如果您想繼續從中受益，您將繼續訂閱它。但這並不取決於下一位僱員。我認為這就是我們的混合模型或混合模型非常有用的地方。

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

你的下一個問題來自花旗的 Steve Enders。

This is George on for Steve. Just want to congrats on great execution in a difficult environment. I wanted to circle back on the discussion earlier about rep productivity. I think when you were talking last quarter, you were talking about expected improvement over the forward 3 to 6 month time frame. But I am just curious, obviously we have seen improvements over these first 3 months. What are you thinking about -- how are you viewing improvement potential in Q4? And is there any of that baked into the guidance?

這是喬治代替史蒂夫。只想祝賀在困難的環境中出色的執行力。我想回到之前關於銷售代表生產力的討論。我認為當你在上個季度談論時，你是在談論未來 3 到 6 個月時間框架內的預期改進。但我很好奇，顯然我們在前 3 個月看到了改進。您在想什麼——您如何看待第四季度的改進潛力？指南中是否包含任何內容？

George, this is Pete. I just wanted to quickly say, we are really pleased with how the field teams have sort of gone about improving productivity of newer reps who have started. We've seen the benefits of it as they've become productive. Our expectation is we will continue to see productivity improvements in those reps because our plans involve multi-quarter changes and how we get them productive. That's baked into our guidance. So you should think of our guidance as an overlay of improving new rep productivity, combined with the macro that we have thoughtfully and prudently considered.

喬治，這是皮特。我只是想快速地說，我們對現場團隊如何提高新開始的代表的工作效率感到非常滿意。隨著他們變得富有成效，我們已經看到了它的好處。我們的期望是，我們將繼續看到這些代表的工作效率有所提高，因為我們的計劃涉及多季度變更以及我們如何提高他們的工作效率。這已納入我們的指導方針。因此，您應該將我們的指導視為提高新銷售代表生產力的疊加，並結合我們深思熟慮和審慎考慮的宏觀政策。

Got it. That makes sense. And then just 1 quick follow-up on the billings upside came in quite ahead of -- Are we still remodelling. I was wondering if you could just dig into kind of what drove that upside and if there's anything unusual or onetime in nature that we should be aware of?

知道了。這就說得通了。然後，只有 1 個關於賬單上行的快速跟進就出現了——我們還在改造嗎？我想知道你是否可以深入了解是什麼推動了這種上升趨勢，以及是否有任何我們應該注意的不尋常或一次性的性質？

George, there was nothing unusual or onetime nature in those numbers. So it's organic bookings which translates into billings.

喬治，這些數字沒有什麼不尋常或一次性的。所以它是轉化為賬單的有機預訂。

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

你的下一個問題來自富國銀行的 Michael Turrin。

This is Michael Bird on for Michael Turrin. I wanted to dive into expansion rates again quickly, they have been pretty nicely in the quarter. And I know the exit rate expectations are still the same. Maybe with a discussion on potential seat expansion issue, you can walk us through the mix of seats versus capabilities on driving that expansion rate number and if that's changed meaningfully over the past quarter or 2?

這是 Michael Turrin 的 Michael Bird。我想快速再次深入研究擴張率，他們在本季度表現相當不錯。而且我知道退出率預期仍然相同。也許通過討論潛在的席位擴展問題，您可以帶我們了解席位與推動該擴張率數字的能力的組合，以及在過去的一個或兩個季度中是否發生了有意義的變化？

I'll start with the question. And then from a meta standpoint, Mark will chime in, in terms of how that's operating. We're not seeing a big difference between the seats and the, what I call, capabilities. Obviously, capabilities are still growing faster than the sear part of it, that is factored into the expansion rates we see. We gave you some stats on capabilities. We said that they're 29% of revenue. And if you looked at them sort of a year ago, they were 24%. So clearly, people are expanding with capabilities. but you're seeing a healthy mix of people with seats as well in that mix. So that's kind of a meta point of like how expansion rates are moving.

我將從問題開始。然後從元的角度來看，馬克將就其運作方式進行插話。我們沒有看到座位和我所說的能力之間有很大差異。顯然，能力的增長速度仍然快於它的一部分，這是我們看到的擴張率的一個因素。我們為您提供了一些有關功能的統計數據。我們說它們佔收入的 29%。如果你看看一年前的情況，他們是 24%。很明顯，人們正在擴展能力。但是您會看到有座位的人的健康組合。所以這有點像擴張率如何變化的元點。

Yes, I think -- I don't think I have much to add to that.

是的，我想——我認為我沒有太多要補充的。

Your next question comes from the line of Jason Ader with MoffettNathanson.

你的下一個問題來自 Jason Ader 和 MoffettNathanson 的對話。

This is Kyle Bule on for Jackson Ader. Just to dig a little bit deeper onto that expansion kind of the time line that you guys are seeing. Is the time line for expansion slowing at all? Or do you kind of see that slowing in the near term future here? Or has that kind of remaining constant as to what you've seen historically?

我是 Jackson Ader 的 Kyle Bule。只是為了更深入地挖掘你們所看到的那種擴展的時間線。擴張的時間線是否在放緩？還是您認為近期會放緩？或者對於你在歷史上看到的東西是否保持不變？

So the -- if you think of expansions and you convert them into its core fundamental, you're talking about bookings and how quickly they materialize. Obviously, expansions are a key part of bookings and billings. So you should think of it as being -- we've seen an elongation in sales cycles and we've seen deal compression. So let's talk about how that actually plays itself out. The way we've seen elongations, people just stay longer with a number of potential reviews that take place for any purchase, those are happening. The second part of it is the deal compression. The way that would happen with these capabilities and expansion is you can either buy a package, which is likely packaged up value in advance or you can still buy pieces of it, we don't tell customers how they should buy it, but they buy a la carte capabilities that hit a specific need, those represent if you buy the a la carte capabilities, you're getting a smaller bite in bookings. Obviously, over time, you're going to get all the bookings, but it means a different size. So that's how expansions play out.

所以——如果你想到擴展並將它們轉化為它的核心基礎，你就是在談論預訂以及它們實現的速度。顯然，擴展是預訂和計費的關鍵部分。所以你應該把它看作是——我們已經看到銷售週期的延長，我們已經看到交易壓縮。因此，讓我們談談它實際上是如何發揮作用的。我們看到延長的方式，人們只是停留更長時間，因為任何購買都會出現一些潛在的評論，這些正在發生。它的第二部分是交易壓縮。這些功能和擴展會發生的方式是您可以購買一個包裹，這可能是預先包裝好的價值，或者您仍然可以購買其中的一部分，我們不會告訴客戶他們應該如何購買，但他們會購買滿足特定需求的點菜功能，這些代表如果您購買點菜功能，您將獲得更小的預訂量。顯然，隨著時間的推移，您將獲得所有預訂，但這意味著不同的規模。這就是擴張的方式。

Okay. Great. That's helpful. And then I guess just in terms of next year's IT budgets, historically are you able to attribute a decent or a majority of revenue growth to IT budget expansion? How do you see it playing out if IT budgets kind of come down next year. Do you see that as having a meaningful impact on the top line growth?

好的。偉大的。這很有幫助。然後我想就明年的 IT 預算而言，從歷史上看，您是否能夠將可觀的或大部分收入增長歸因於 IT 預算擴張？如果明年 IT 預算有所下降，您如何看待它的結果。您認為這對收入增長有有意義的影響嗎？

So I would say that the budgets for our funding. Remember if you're dealing with -- this isn't one purchaser and 1 department. There are hundreds and thousands of people in enterprise who are buying it. See you have as much of people with line of business budgets that are buying it as they are IT folks in there. So I think it is fairly broad based in terms of budget.

所以我會說我們的資金預算。請記住，如果您正在處理 - 這不是一個採購員和一個部門。企業中有成百上千的人在購買它。看到您購買它的具有業務預算線的人與那裡的 IT 人員一樣多。所以我認為它在預算方面相當廣泛。

Your next question comes from with line of Fred Lee with Credit Suisse.

你的下一個問題來自瑞士信貸的 Fred Lee。

Very nice quarter, particularly in this environment. I was wondering if you were seeing any change in behavior from your competitions, specifically privately held companies that might be slowing their investment in market expense and then a quick follow-up after that.

非常好的季度，尤其是在這種環境下。我想知道您是否看到您的競爭行為有任何變化，特別是私營公司，它們可能會放慢對市場費用的投資，然後快速跟進。

No. Even given the thousands of transactions we do in the quarter, the median transaction is still really helping if someone progressed from their status quo, which isn't grounded in a CWM player and getting into CWM for the first time. So it's difficult for us to speak. It will not be really well grounded for us to speak to these huge patterns that we see. We have seen -- you do see it manifest itself in some other ways in terms of you definitely get a sense that those companies are hiring less. I think some of the people who joined companies, would have now been let go, obviously talk to people in the community, and I think there's less chatter around people considering going to such companies. I think that's one of the things that more established companies will benefit from in the coming quarters. In terms of what we're seeing in market, nothing that we've really heard from customers on that front.

不。即使考慮到我們在本季度進行的數千筆交易，如果有人從他們的現狀中取得進步，中位數交易仍然真的很有幫助，這不是基於 CWM 玩家並第一次進入 CWM。所以我們很難說話。對於我們所看到的這些巨大模式來說，我們並沒有很好的基礎。我們已經看到 - 你確實看到它以其他方式表現出來，你肯定會感覺到這些公司正在減少招聘。我認為一些加入公司的人現在會被解僱，顯然與社區中的人交談，而且我認為考慮去這些公司的人周圍的討論較少。我認為這是更多老牌公司在未來幾個季度將從中受益的事情之一。就我們在市場上看到的情況而言，我們在這方面沒有真正從客戶那裡聽到任何消息。

And just a quick follow-up on the net retention metric eventually in the 20s by the end of the year, I was wondering if you could drill down a little bit on what's contributing to the sequential decline in the metric?

到今年年底最終在 20 年代對淨保留指標進行快速跟進，我想知道你是否可以深入了解導致指標連續下降的原因？

So Fred, the net dollar retention rate metric is a full year look back. So we look at what happened over the full year, if you will. So when you think of what comes into the calculation when we report out at the end of Q4, is you're going to be replacing a very strong quarter with a macro that was very different, expansion need that was very different without something that's in a different macro phase. So you're just swapping out one quarter for the other, and that's where you see look back of a full year in expansion rates dropping to where we've guided.

所以弗雷德，淨美元保留率指標是全年回顧。所以我們看看全年發生了什麼，如果你願意的話。因此，當你想到我們在第四季度末報告時計算的內容時，你是否會用一個非常不同的宏觀、非常不同的擴張需求來取代一個非常強勁的季度，而沒有任何東西不同的宏觀階段。所以你只是把一個季度換成另一個季度，這就是你看到全年擴張率下降到我們指導的水平的地方。

There are no further questions at this time. I will now turn the call back to Mr. Aaron Turner.

目前沒有其他問題。我現在將電話轉回 Aaron Turner 先生。

Great. Well, thank you for joining us, everyone, and we will speak with you again next quarter.

偉大的。好吧，感謝大家加入我們，我們將在下個季度再次與您交談。

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

女士們，先生們，感謝你們的參與。今天的電話會議到此結束。您現在可以斷開連接。