Smartsheet Inc (SMAR) 2023 Q4 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 Fourth Quarter Fiscal 2023 Earnings Conference Call. (Operator Instructions) It is now my pleasure to turn today's call over to Mr. Aaron Turner, Head of Investor Relations. Sir, please go ahead.

女士們，先生們，謝謝你們的支持。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 財年第四季度收益電話會議。 （操作員說明）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 Fourth Quarter and 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's CEO, Mark Mader; and our CFO, 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.

謝謝你，布倫特。下午好，歡迎大家參加 Smartsheet 的第四季度和 2023 財年財報電話會議。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 的首席執行官 Mark Mader；以及我們的首席財務官 Pete Godbole。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。

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.

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.

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。

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 財務數據外，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 GAAP 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。

Hello, and welcome to our fourth quarter earnings call for fiscal year '23. Our fourth quarter results caped off a strong year for Smartsheet, a year in which we extended our leadership position in collaborative work management, delivered our best year ever for new customer bookings, acquired outfit to strengthen our marketing and creative management solutions, added 2.2 million users to the Smartsheet platform and generated positive free cash flow for the year for the first time.

大家好，歡迎來到我們的 23 財年第四季度財報電話會議。我們第四季度的業績為 Smartsheet 強勁的一年畫上了句號，這一年我們擴大了在協作工作管理方面的領導地位，為新客戶預訂創造了有史以來最好的一年，收購了裝備以加強我們的營銷和創意管理解決方案，增加了 220 萬用戶訪問 Smartsheet 平台，並在當年首次產生了正的自由現金流。

While Pete will provide additional details, I want to call out some of our highlights from the quarter. Revenue for the quarter was $212 million, up 35% year-over-year. We added $62 million in annual recurring revenue in Q4, bringing our total ARR to more than $854 million.

雖然 Pete 將提供更多細節，但我想介紹一下本季度的一些亮點。本季度收入為 2.12 億美元，同比增長 35%。我們在第四季度增加了 6200 萬美元的年度經常性收入，使我們的 ARR 總額超過 8.54 億美元。

In Q4, we saw expansions at Volvo, USA Today and Allscripts, among many others. And we had new customer wins at companies such as (inaudible). Our expansion motion within our customer base continued with 311 customers expanding by $50,000 or more and 118 expanding by $100,000 or more.

在第四季度，我們看到了沃爾沃、今日美國和 Allscripts 等公司的擴張。我們在（聽不清）等公司贏得了新客戶。我們在客戶群中的擴張行動繼續進行，有 311 家客戶的銷售額增加了 50,000 美元或更多，118 家客戶的銷售額增加了 100,000 美元或更多。

In Q4, we had 2 transactions of more than $1 million and now have a total of 45 customers with ARR over $1 million. Despite these successes, we've seen the changing macroeconomic environment negatively impact expansion rates across customer segments. However, even with these less favorable macro backdrops, our enterprise customers continue to exhibit the fastest growth rates.

在第四季度，我們有 2 筆交易超過 100 萬美元，現在共有 45 位客戶的 ARR 超過 100 萬美元。儘管取得了這些成功，但我們已經看到不斷變化的宏觀經濟環境對各個客戶群的擴張率產生了負面影響。然而，即使在這些不太有利的宏觀背景下，我們的企業客戶繼續表現出最快的增長速度。

Our product investment and go-to-market strategy is focused on winning the enterprise, and we have seen great success in this segment. We now have over 3,300 large enterprise customers, defined as organizations with over 10,000 employees. ARR from just this customer segment is now over $260 million and grew over 40% in FY '23.

我們的產品投資和上市戰略專注於贏得企業，我們在這一領域取得了巨大成功。我們現在擁有超過 3,300 家大型企業客戶，即擁有超過 10,000 名員工的組織。僅此客戶群的 ARR 現在就超過 2.6 億美元，並且在 23 財年增長了 40% 以上。

We believe this segment alone represents a multibillion-dollar revenue opportunity for Smartsheet.

我們相信，僅這一細分市場就為 Smartsheet 帶來了數十億美元的收入機會。

While we may have seen some companies be more thoughtful with spending in this environment, we believe that in the long term, enterprises, especially large enterprises, remain the best opportunity to drive long-term profitable growth. and no one in this category is winning the enterprise like we are.

雖然我們可能已經看到一些公司在這種環境下的支出更加周到，但我們認為，從長遠來看，企業，尤其是大型企業，仍然是推動長期盈利增長的最佳機會。這一類別中沒有人像我們這樣贏得企業。

In FY '23, in response to the changing macroeconomic environment, we took steps to improve our profitability. These actions resulted in Q4 profitability, non-GAAP operating income and free cash flow exceeding our guidance. As we look ahead, we expect our scale combined with our increasingly efficient operating model to generate positive operating margins and over $110 million of free cash flow in FY '24.

在 23 財年，為應對不斷變化的宏觀經濟環境，我們採取措施提高盈利能力。這些行動導致第四季度的盈利能力、非 GAAP 營業收入和自由現金流超出了我們的指導。展望未來，我們預計我們的規模與我們日益高效的運營模式相結合，將在 24 財年產生正的運營利潤率和超過 1.1 億美元的自由現金流。

Our scale and profitable business model further secure Smartsheet as the leader in collaborative work management. We are operating at an ARR scale, enterprise adoption rate and profitability level that are unmatched in category. This leadership position is recognized by top-tier review sites and publications. We recently earned a top 5 placement on G2's 2023 Best Products for Enterprise List, making us the only CWM platform to rank anywhere in the top 50. The list recognizes software companies that have best-in-class enterprise customer service, products and experiences. And earlier this month, we were recognized for our industry-leading enterprise work management and digital asset management solutions on Fast Company's Most Innovative Companies List in the enterprise category.

我們的規模和有利可圖的商業模式進一步鞏固了 Smartsheet 作為協作工作管理領域領導者的地位。我們正在以同類產品中無與倫比的 ARR 規模、企業採用率和盈利水平運營。這一領導地位得到了頂級評論網站和出版物的認可。我們最近在 G2 的 2023 年最佳企業產品榜單中名列前 5 名，這使我們成為唯一一個躋身前 50 名的 CWM 平台。該榜單表彰了擁有一流企業客戶服務、產品和體驗的軟件公司。本月早些時候，我們憑藉行業領先的企業工作管理和數字資產管理解決方案在 Fast Company 的企業類別最具創新力公司名單中獲得認可。

At Smartsheet, adoption of our capabilities-based products play a key role in our enterprise success. These capabilities now make up 31% of our subscription revenue, up 5 points year-over-year. Capabilities drove many large customer expansions in Q4. For example, a leading enterprise human capital management provider signed a 3-year enterprise license agreement that will give all 8,000 Smartsheet users at the company access to our full suite of advanced capabilities.

在 Smartsheet，採用我們基於功能的產品對我們的企業成功起著關鍵作用。這些功能現在占我們訂閱收入的 31%，同比增長 5 個百分點。能力在第四季度推動了許多大型客戶的擴張。例如，一家領先的企業人力資本管理提供商簽署了一份為期 3 年的企業許可協議，該協議將使公司的所有 8,000 名 Smartsheet 用戶都能使用我們的全套高級功能。

Through January, on a year-over-year basis, they created 67% more forms, provisioned 132% more control center projects and created 210% more WorkApps. A key smart use case at this HCM provider is in professional services org, where they use Smartsheet to manage customer deployments. Smartsheet has become their global standard for customer deployments in part because our enterprise-grade security gives them the ability to manage sensitive customer data on our platform while still allowing for efficient collaboration.

截至 1 月，與去年同期相比，他們創建的表單增加了 67%，配置的控制中心項目增加了 132%，並創建了 WorkApps 增加了 210%。這家 HCM 提供商的一個關鍵智能用例是在專業服務組織中，他們使用 Smartsheet 來管理客戶部署。 Smartsheet 已成為其客戶部署的全球標準，部分原因是我們的企業級安全性使他們能夠在我們的平台上管理敏感的客戶數據，同時仍允許高效協作。

Our secure collaboration model has allowed this company to bring more than 42,000 external collaborators from different client organizations onto the Smartsheet platform.

我們的安全協作模型使該公司能夠將來自不同客戶組織的 42,000 多名外部協作者帶到 Smartsheet 平台上。

Q4 was a strong quarter for Smartsheet Advance. A Fortune 500 global manufacturer had a high 6-figure annual expansion that included an upgrade to a higher-advanced tier. This upgrade resulted from the viral adoption of Smartsheet across the organization. This year alone, they created over 5,000 dashboards, increased their WorkApps used by 430% and provisioned nearly 5,000 projects using control center.

第四季度是 Smartsheet Advance 的強勁季度。一家財富 500 強全球製造商的年度擴張高達 6 位數，其中包括升級到更高級的級別。此次升級源於 Smartsheet 在整個組織中的廣泛採用。僅今年一年，他們就創建了 5,000 多個儀表板，將 WorkApps 的使用量增加了 430%，並使用控制中心配置了近 5,000 個項目。

This company will now use Smartsheet to help achieve its $1 billion 3-year operational cost savings initiative.

該公司現在將使用 Smartsheet 來幫助實現其 10 億美元的 3 年運營成本節約計劃。

Advanced usage through connected users also drove a 7-figure expansion at a Fortune 100 telecom company, which brought the customer's total ARR to over $3 million. Over 50,000 Smartsheet users across 11 departments in 8 countries now use Smartsheet. This deal was driven by increased demand and adoption as more teams look to centralize their work on Smartsheet.

一家財富 100 強電信公司通過聯網用戶實現的高級使用也推動了 7 位數的增長，使客戶的總 ARR 超過 300 萬美元。 8 個國家 11 個部門的 50,000 多名 Smartsheet 用戶現在使用 Smartsheet。隨著越來越多的團隊希望將他們的工作集中在 Smartsheet 上，需求和採用的增加推動了這筆交易。

Our platform underpins over 1,000 WorkApps, 4,000 projects managed using control center and over 28,000 dashboards. It is now the starting point for thousands of workflows that span integrated apps such as Salesforce, Jira and Slack, and serves as a central hub for the company's collaboration with more than 500 external organizations.

我們的平台支撐著 1,000 多個 WorkApp、4,000 個使用控制中心管理的項目和超過 28,000 個儀表板。它現在是跨越 Salesforce、Jira 和 Slack 等集成應用程序的數千個工作流的起點，並充當公司與 500 多個外部組織協作的中心樞紐。

Wins such as these speak to the power of the advanced model where the value of Smartsheet increases as the use of Smartsheet grows. In January, we published our inaugural Future of Work Management report, which showed that over 80% of workers at every level across organizations say, project management is being done by people whose title or job description doesn't include Project Manager. The research also showed a significant perception gap between leaders and workers with respect to their current project management tools.

諸如此類的勝利證明了先進模型的力量，其中 Smartsheet 的價值隨著 Smartsheet 使用的增長而增加。 1 月，我們發布了首份《工作管理的未來》報告，該報告顯示，超過 80% 的組織各個級別的員工表示，項目管理由其頭銜或職位描述中不包括項目經理的人員完成。該研究還表明，領導者和員工對其當前項目管理工具的認識存在顯著差距。

60% of leaders say they've made the necessary investment in tools, but just 36% of workers who responded feel this way. This gap drives a robust, continuous flow of opportunity for Smartsheet.

60% 的領導者表示他們已經對工具進行了必要的投資，但只有 36% 的員工有這種感覺。這一差距為 Smartsheet 帶來了強勁、持續的機會。

Here's a great example of how the best tools can empower people and business transformation. In Q4, we had an RFP win against 3 CWM competitors, which expanded our footprint at a Fortune 500 global biopharma company. The seeds of this win were planted when one team member in the purchasing organization took the initiative to design a Smartsheet-based system to automate the company's complex and time-consuming paper and e-mail-based purchase order management process.

這是一個很好的例子，說明最好的工具如何能夠幫助人們和業務轉型。在第四季度，我們贏得了 3 家 CWM 競爭對手的 RFP，這擴大了我們在財富 500 強全球生物製藥公司的足跡。當採購組織中的一名團隊成員主動設計一個基於 Smartsheet 的系統來自動化公司複雜且耗時的基於紙張和電子郵件的採購訂單管理流程時，就種下了勝利的種子。

Smartsheet didn't just modernize PO management, our platform also reached the company's transformation office, where Smartsheet is now supporting the company's critical initiatives. As the company's business transformation platform, Smartsheet Control Center and WorkApps are now helping them manage 5 strategic portfolios of work, each containing dozens of work streams that will guide the company towards its goal of positively impacting the health of 2.5 billion people in the next 10 years.

Smartsheet 不僅實現了 PO 管理的現代化，我們的平台還進入了公司的轉型辦公室，Smartsheet 現在正在那裡支持公司的關鍵計劃。作為公司的業務轉型平台，Smartsheet Control Center 和 WorkApps 現在正在幫助他們管理 5 個戰略工作組合，每個工作組合包含數十個工作流，這些工作流將引導公司實現其在未來 10 年內對 25 億人的健康產生積極影響的目標年。

On the product front, we closed out another year of customer-focused innovation, having delivered over 400 product enhancements. In Q4, we launched the Smartsheet Desktop Application, content automation with integration of outfit, capacity view and numerous automation enhancements. We also further increased platform scalability to power sophisticated workflows and drive thousands of business-critical work streams for customers of all sizes.

在產品方面，我們結束了又一年以客戶為中心的創新，交付了 400 多項產品改進。在第 4 季度，我們推出了 Smartsheet 桌面應用程序、內容自動化與裝備、容量視圖和眾多自動化增強功能的集成。我們還進一步提高了平台的可擴展性，以支持複雜的工作流程，並為各種規模的客戶推動數以千計的業務關鍵型工作流。

In FY '24, our investment efforts will be focused on helping our biggest customers grow faster with us as well as driving efficiency and how we sell to and serve our emerging customers.

在 24 財年，我們的投資工作將集中在幫助我們最大的客戶與我們一起更快地成長以及提高效率以及我們如何向新興客戶銷售和服務。

To enhance customer experience and value, we continue to evaluate and integrate artificial intelligence into the Smartsheet platform. Our AI innovation began in 2018 following our acquisition of Converse.AI. More recently, we have enabled petabyte-scale intelligent content management through our proprietary powered AI engine (inaudible) Intelligence. Using recognition models, content is analyzed and tagged, making it easier for people to find creative assets with natural language search. And for over a year, predictive models have powered navigation recommendations in Smartsheet.

為了提升客戶體驗和價值，我們繼續評估人工智能並將其集成到 Smartsheet 平台中。我們的 AI 創新始於 2018 年收購 Converse.AI 之後。最近，我們通過專有的人工智能引擎（聽不清）智能實現了 PB 級智能內容管理。使用識別模型對內容進行分析和標記，使人們更容易通過自然語言搜索找到創意資產。一年多來，預測模型為 Smartsheet 中的導航推薦提供了支持。

Now our sights are set on the next wave of innovation, degenerative AI. The progress we've made in our early development is very promising and the impact to accelerating customer onboarding, solving for advanced business designs and unlocking self-directed discovery can serve as a catalyst for growth in FY '25 and beyond.

現在，我們的目光投向了下一波創新浪潮——退化人工智能。我們在早期開發中取得的進展非常有希望，加速客戶入職、解決高級業務設計和解鎖自主發現的影響可以作為 25 財年及以後增長的催化劑。

In closing, I'm proud of how our team executed in FY '23, expanding our enterprise leadership position, while navigating macro headwinds and driving significant efficiencies in the business. We continue to keep our customers' needs top of mind as we prioritize investments that enable them to drive meaningful change for their organizations.

最後，我為我們的團隊在 23 財年的執行情況感到自豪，擴大了我們的企業領導地位，同時應對宏觀逆風並顯著提高業務效率。我們繼續將客戶的需求放在首位，因為我們優先考慮投資，使他們能夠為他們的組織推動有意義的變革。

Q4 was another showcase of our CWM leadership, our winning enterprise strategy, the power of our platform and the scalability of our business model. We are excited to continue this momentum in FY '24 and beyond. Before I turn the call over to Pete, I want to acknowledge the transition of Smartsheet's Board Chair role.

第四季度再次展示了我們的 CWM 領導地位、我們成功的企業戰略、我們平台的力量和我們商業模式的可擴展性。我們很高興在 24 財年及以後繼續保持這種勢頭。在我將電話轉給皮特之前，我想確認 Smartsheet 董事會主席角色的轉變。

We recently appointed Mike Gregoire as the new Chair of our Board of Directors. He succeeds Geoff Barker, who has been on our Board since 2012 and has served as Chair since 2017 and will remain on the Board following this transition. We appreciate and thank Geoff for his leadership. His commitment to governance and execution during the company's transition from private to public and in the years that followed, strengthened our ability to deliver value to customers and shareholders.

我們最近任命 Mike Gregoire 為我們董事會的新主席。他接替了 Geoff Barker，Geoff Barker 自 2012 年以來一直在我們的董事會任職，自 2017 年以來一直擔任主席，並將在此次交接後繼續留在董事會。我們讚賞並感謝 Geoff 的領導。在公司從私營向上市公司過渡期間以及隨後的幾年裡，他對治理和執行的承諾加強了我們為客戶和股東創造價值的能力。

Mike has been a valuable member of the Smartsheet Board since late 2019. His expertise in operating technology companies at scale aligns very well for our next phase of growth. We are pleased to welcome Mike to the chair position and look forward to working with him more closely. Now let me turn the call over to Pete. Pete?

自 2019 年底以來，邁克一直是 Smartsheet 董事會的重要成員。他在大規模運營技術公司方面的專業知識與我們下一階段的增長非常吻合。我們很高興歡迎邁克擔任主席一職，並期待與他更密切地合作。現在讓我把電話轉給皮特。皮特？

Thank you, Mark, and good afternoon, everyone. As Mark mentioned, Q4 was another strong quarter. We exceeded our guidance across the top and bottom line and posted quarterly operating income for the first time. We saw particular strength in our largest customers who continue to exhibit expansion rates above our overall net dollar retention rate, an advance, which contributed a record level of billings and revenue in the quarter.

謝謝馬克，大家下午好。正如馬克所提到的，第四季度是另一個強勁的季度。我們超出了頂線和底線的指導，並首次公佈了季度營業收入。我們在最大的客戶中看到了特別的優勢，他們繼續表現出高於我們整體淨美元保留率的擴張率，這是一項進步，這在本季度貢獻了創紀錄的賬單和收入水平。

Despite strength in these areas, we saw the impacts of a worsening macro environment. Similar to past quarters, we see these pressures manifest as smaller deal sizes and longer sales cycles, which ultimately led to lower expansion rates among our customers.

儘管這些領域表現強勁，但我們看到了宏觀環境惡化的影響。與過去幾個季度類似，我們看到這些壓力表現為較小的交易規模和較長的銷售週期，最終導致我們客戶的擴張率降低。

In FY '23, we placed an intense focus on driving operational efficiencies, which has resulted in a faster path to profitability than previously contemplated. We focused on driving operational efficiencies by eliminating lower value activities, while maintaining sales capacity. These operating efficiencies have contributed to our outperformance in our operating income and free cash flow in Q4 and our guidance for FY '24.

在 23 財年，我們將重點放在提高運營效率上，這導致比以前預期的更快地實現盈利。我們專注於通過消除低價值活動來提高運營效率，同時保持銷售能力。這些運營效率促成了我們在第四季度的營業收入和自由現金流以及我們對 24 財年的指導方面的出色表現。

We expect the macro to worsen in FY '24, but the plan we have created positions the company to capitalize on an improving economy when that eventually occurs. We are continuing to pursue sustained growth and profitability in a disciplined and thoughtful manner, while focusing on allocating capital to growth initiatives.

我們預計宏觀經濟將在 24 財年惡化，但我們制定的計劃使公司能夠在這種情況最終發生時利用不斷改善的經濟。我們將繼續以紀律嚴明和深思熟慮的方式追求持續增長和盈利，同時專注於將資本分配給增長計劃。

Our strategy of focusing on large accounts for the last several years has been a part of that thinking and this year, we plan to invest in 4 areas: first, widen our competitive lead on the dimension of enterprise scale; second, unlock product-led discovery and adoption; third, enhance IT, governance, control and security; and fourth, elevate our user experience.

我們過去幾年的主打大客戶的策略就是其中的一部分，今年我們計劃在四個方面進行投資：一是擴大我們在企業規模維度上的競爭優勢；第二，解鎖以產品為導向的發現和採用；第三，加強信息技術、治理、控制和安全；第四，提升我們的用戶體驗。

I will now go through our financial results for the full year and fourth 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.

我現在將介紹我們全年和第四季度的財務業績。除非另有說明，否則所有對我們費用和運營結果的引用均基於非 GAAP 基礎，並與我們在電話會議前發布的收益發布和演示文稿中的 GAAP 結果相一致。

For the full fiscal year '23, we ended with total revenue of $766.9 million, up 39% year-over-year. Billings of $892 million, up 35% year-over-year. Operating loss of $36 million and free cash flow of $9.8 million.

在整個 23 財年，我們的總收入為 7.669 億美元，同比增長 39%。賬單額為 8.92 億美元，同比增長 35%。運營虧損 3600 萬美元，自由現金流為 980 萬美元。

We ended the year with annual recurring revenue of over $854 million, a year-over-year increase of $215 million.

年底，我們的年度經常性收入超過 8.54 億美元，同比增長 2.15 億美元。

Next, I will provide more color on our fourth quarter financial results. Fourth quarter revenue came in at $212.3 million, up 35% year-over-year. Subscription revenue was $198.9 million, representing year-over-year growth of 37%. The Services revenue was $13.5 million, representing year-over-year growth of 15%. Capabilities made up 31% of subscription revenue, up from 26% of revenue in Q4 of last year.

接下來，我將提供更多關於我們第四季度財務業績的顏色。第四季度收入為 2.123 億美元，同比增長 35%。訂閱收入為 1.989 億美元，同比增長 37%。服務收入為 1350 萬美元，同比增長 15%。功能佔訂閱收入的 31%，高於去年第四季度的 26%。

Turning to billings. Fourth quarter billings came in at $286.7 million, representing year-over-year growth of 28%. Approximately 94% of our subscription billings were annual with 3% monthly. Quarterly and semiannual represented approximately 3% of the total. Multiyear billings represented less than 0.5% of total billings.

轉向賬單。第四季度的賬單收入為 2.867 億美元，同比增長 28%。我們大約 94% 的訂閱賬單是年度的，3% 是每月的。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 0.5%。

Moving on to our reported metrics. The number of customers with ARR over $50,000 grew 36% year-over-year to 3,206 and the number of customers with ARR over $100,000 grew 45% year-over-year to 1,484. These customer segments now represent 62% and 48%, respectively, of total ARR. The percentage of our ARR coming from customers with ARR over $5,000 is now 89%.

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 36% 至 3,206 名，ARR 超過 100,000 美元的客戶數量同比增長 45% 至 1,484 名。這些客戶群現在分別佔總 ARR 的 62% 和 48%。我們的 ARR 來自 ARR 超過 5,000 美元的客戶的百分比現在是 89%。

Next, our domain average ACV grew 20% year-over-year to $8,377. We ended the quarter with a dollar-based net retention rate of 125%. The full churn rate remains below 4%. Consistent with our assumption of the macro environment in FY '24, we expect our net dollar retention rate to trend lower into the high teens by the end of the year.

接下來，我們的域平均 ACV 同比增長 20% 至 8,377 美元。我們以 125% 的美元淨保留率結束了本季度。完全流失率保持在 4% 以下。與我們對 24 財年宏觀環境的假設一致，我們預計到今年年底我們的淨美元保留率將呈下降趨勢，進入高位。

Now turning back to the financials. Our total gross margin was 82%. Our Q4 subscription gross margin was 86%. We expect our gross margin for FY '24 to remain above 80%.

現在回到財務方面。我們的總毛利率為 82%。我們第四季度的訂閱毛利率為 86%。我們預計 24 財年的毛利率將保持在 80% 以上。

Overall operating income in the quarter was $7.5 million or 4% of revenue, which represents a 6 percentage point sequential margin improvement. Free cash flow in the quarter was positive $16.4 million.

本季度的總體營業收入為 750 萬美元，佔收入的 4%，這意味著連續利潤率提高了 6 個百分點。本季度自由現金流為正 1640 萬美元。

Now let me move on to guidance. Our guidance reflects the expectations of a worsening macroeconomic environment. Therefore, we have incorporated more conservatism into our guidance philosophy. If the macro environment does not decline, this will be a source of upside to our current full year expectations.

現在讓我繼續進行指導。我們的指引反映了對宏觀經濟環境惡化的預期。因此，我們在指導理念中加入了更多的保守主義。如果宏觀環境不下滑，這將成為我們當前全年預期的上行來源。

In FY '23, we placed a heavy internal focus and operational rigor and moderating our hiring plan to adapt to the changing macro economy. In FY '24, these initiatives combined with the natural economies of scale in our business will result in significant improvements in our margin profile and free cash flow performance.

在 23 財年，我們將重點放在內部和運營上，並調整了我們的招聘計劃以適應不斷變化的宏觀經濟。在 24 財年，這些舉措與我們業務的自然規模經濟相結合，將顯著改善我們的利潤率和自由現金流表現。

In FY '24, we are investing in enterprise growth with the ramped sales team and continue to invest in widening the technology advantage of our platform. As a business approaching $1 billion of ARR, we are set up to leverage this natural scale via operational initiatives that we started in FY '23.

在 24 財年，我們將投資於擴大銷售團隊的企業增長，並繼續投資於擴大我們平台的技術優勢。作為一家接近 10 億美元 ARR 的企業，我們準備通過我們在 23 財年開始的運營計劃來利用這一自然規模。

For the first quarter of FY '24, we expect revenue to be in the range of $213 million to $215 million, and non-GAAP operating income to be in the range of $8 million to $10 million. We expect non-GAAP EPS to be $0.08 to $0.09 based on diluted weighted average shares outstanding of 136 million.

對於 24 財年第一季度，我們預計收入將在 2.13 億美元至 2.15 億美元之間，非 GAAP 營業收入將在 800 萬至 1000 萬美元之間。基於 1.36 億股稀釋加權平均流通股，我們預計非 GAAP 每股收益為 0.08 美元至 0.09 美元。

For the full fiscal year '24, we expect our revenue guidance to be $943 million to $948 million, representing growth of 23% to 24%. We expect services to be 6% of total revenue. We expect our non-GAAP operating income to be in the range of $35 million to $45 million, representing an operating margin of 4% to 5% and a non-GAAP net income per share to be $0.31 to $0.38 for the year based on approximately 137.5 million diluted weighted average shares outstanding.

對於整個 24 財年，我們預計我們的收入指引為 9.43 億美元至 9.48 億美元，增長 23% 至 24%。我們預計服務收入佔總收入的 6%。根據大約1.375 億股攤薄加權平均流通股。

We expect FY '24 billings growth to be 20%, and we expect our free cash flow for FY '24 to be $110 million.

我們預計 24 財年的賬單增長率為 20%，我們預計 24 財年的自由現金流為 1.1 億美元。

To conclude, Q4 was another strong quarter, highlighted by our continued outperformance, our strength in the enterprise and emerging profitability. We see FY '24 as a year where our enterprise investments set us up for durable, long-term growth.

總而言之，第四季度是另一個強勁的季度，突出體現在我們持續的出色表現、我們在企業領域的實力和新興的盈利能力。我們將 FY '24 視為我們的企業投資讓我們實現持久、長期增長的一年。

Now let me turn the call over to the operator. Operator?

現在讓我把電話轉給接線員。操作員？

(Operator Instructions) Your first question is 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。

Well, first of all, congrats on elevating Mike Gregoire to the Chairman position. I think he fits really well with our view at least of how you guys approach the business. He's pretty straightforward. It's also nice to see you demonstrate the profit power of the software model with both the results this quarter, but also in your guidance for next year. So it's great to see (inaudible). But my question, Pete, you said guidance reflects a worsening macro. So it sounds it's a little more conservative than usual, which I think is the right thing to do here.

好吧，首先，祝賀 Mike Gregoire 晉升為主席。我認為他非常符合我們的觀點，至少對你們處理業務的方式如此。他很直率。很高興看到您通過本季度的結果以及明年的指導來展示軟件模型的盈利能力。所以很高興看到（聽不清）。但我的問題是，皮特，你說指導反映了宏觀經濟的惡化。所以它聽起來比平時更保守一點，我認為這是正確的做法。

But last quarter, you gave some specifics around go-to-market metrics. And you talked about positive comments on pipeline, close rates, sales productivity, (inaudible). You also said you'd be close to a fully ramped sales force, and I think you sort of mentioned that too here. Can you sort of hit some of those, do you think that are most important? And what you're -- what is implied in guidance in this year? Are they all -- are you assuming all of those things sort of moderate throughout the year? Or are there some of them that actually hold steady and some sort of moderate?

但是上個季度，您給出了一些關於上市指標的細節。你談到了對管道、成交率、銷售效率的積極評價，（聽不清）。您還說您將接近一支全面升級的銷售隊伍，我想您在這裡也提到了這一點。你能說說其中的一些嗎，你認為那是最重要的嗎？你是什麼 - 今年的指導中暗示了什麼？他們都是——你是否假設所有這些事情全年都比較溫和？還是其中一些實際上保持穩定和某種溫和？

So John, I'll parse that question down to what you asked. So let's start with Q4. We exceeded our guidance relative to the expectations we have set based on advanced booking and larger transactions that we did. But as we built through the quarter, we saw a nominal worsening relative to past trends. And what that meant was a slight degradation in the close rate and an elongation of the sales cycle.

所以約翰，我會把這個問題解析為你問的內容。那麼讓我們從第四季度開始。相對於我們根據提前預訂和我們所做的更大交易設定的預期，我們超出了我們的指導。但隨著我們在本季度的建設，我們看到了相對於過去趨勢的名義上的惡化。這意味著成交率略有下降，銷售週期延長。

We're seeing a strong pipeline. It's the close rate that we're seeing the slight degradation on. So given that phenomena, what we've opted to do is be conservative in building a nominally worsening guide for those in FY '24 as it relates to our top line view.

我們看到了強大的管道。這是我們看到輕微退化的接近率。因此，鑑於這種現象，我們選擇做的是保守地為 24 財年的那些人建立一個名義上惡化的指南，因為它與我們的頂線觀點有關。

Okay. That makes sense. And if I could, just a quick follow-up to that, Pete. It sounds like the NRR is going to -- though you said it will decline to the high teens by the end of the year. So it sounds like it's progressively. And I realize that's a trailing 12-month metric. But does that imply that -- should I be thinking about that as like the year-over-year subscription growth or perhaps the ACV growth would also decelerate throughout the year too? Or is it not quite that?

好的。這就說得通了。如果可以的話，請快速跟進一下，Pete。聽起來 NRR 將要下降——儘管你說到今年年底它會下降到十幾歲。所以這聽起來像是漸進的。我意識到這是一個過去 12 個月的指標。但這是否意味著——我應該將其視為訂閱量同比增長，還是 ACV 增長也會在全年減速？還是不完全是這樣？

So the net dollar retention rate, John, aligns with our billings guide, if you think of the top line, those are intertwined. And the same factors that affect the billings guide we just walked through are at play for the net dollar retention rate. So you're seeing a basic macroeconomic impact. We have a pretty healthy growth rate but there's a macroeconomic impact that puts a slight pullback from those rates, if you will.

因此，約翰，淨美元保留率與我們的賬單指南保持一致，如果你想到頂線，它們是交織在一起的。影響我們剛剛瀏覽的賬單指南的相同因素也在影響淨美元保留率。所以你看到了基本的宏觀經濟影響。我們有一個相當健康的增長率，但如果你願意的話，宏觀經濟的影響會使這些增長率略有回落。

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, on the enterprise, it seemed like that held up better. Can you just give us a little more color on what you're seeing and kind of back to Pete's comments in the monitoring of demand? Or where are you factoring in for the enterprise close in the back half? And for Pete, just when you think about the economic headwinds worsening, did you see that across multiple countries? Was it more pronounced in Europe versus U.S.? Any color you can get from a geographic perspective would be great.

馬克，在企業方面，這似乎更好。您能否就您所看到的內容給我們更多的顏色，並回到 Pete 在需求監控方面的評論？或者你在哪裡考慮後半部分的企業收盤？對皮特來說，當你想到經濟逆風惡化時，你是否在多個國家看到了這一點？它在歐洲比在美國更明顯嗎？從地理角度來看，您可以獲得任何顏色都很棒。

Brent, I think one of the things that I was looking for in the quarter was how the conversion of pipeline that extended in the previous quarter played out. So one of the things that was really encouraging to see was in business that did extend last quarter, a lot of that business converted this quarter. And when I look at our net sequential adds on over $50,000, $100,000, we saw really healthy numbers. We added, I think, 138 over $100,000 customers. We added over 240 over $50,000. So I was really pleased to see that. So we continue to see strength there. I think the expectations from customers is clarity on what one's presenting to them and how it connects to value. Are you helping me identify new sources of revenue? Are you helping me retain my existing ones? Are you helping me drive savings? So some of them spoke to in my remarks, spoke to that ability to help customers expand or drive savings. And that remains very much alive and well.

布倫特，我認為我在本季度尋找的一件事是上一季度擴展的管道轉換如何發揮作用。因此，真正令人鼓舞的事情之一是在上個季度確實擴展了業務，本季度很多業務都發生了轉變。當我查看我們的淨連續增加超過 50,000 美元、100,000 美元時，我們看到了非常健康的數字。我認為，我們增加了 138 位超過 100,000 美元的客戶。我們在 50,000 美元以上增加了 240 多個。所以我真的很高興看到這一點。所以我們繼續看到那裡的力量。我認為客戶的期望是明確向他們展示什麼以及它如何與價值聯繫起來。你在幫我確定新的收入來源嗎？你在幫我保留現有的嗎？你在幫我節省開支嗎？所以他們中的一些人在我的評論中談到了幫助客戶擴大或推動儲蓄的能力。這仍然非常活躍。

I think the -- going into the year, I feel like we have a sales team, which is probably the most ramped team we have -- have had heading into a year. So I think that will continue to yield nicely on that part of our business.

我認為 - 進入這一年，我覺得我們有一個銷售團隊，這可能是我們擁有的最活躍的團隊 - 已經進入了一年。所以我認為這將繼續在我們業務的那一部分產生很好的收益。

Now as we make investments in our product, I'm also as motivated to continue to drive that product-led growth piece, which builds all the future growers. So we do talk about enterprise a lot, but I think there's also some really favorable things coming out this year, which helped lay that foundation for future growth. Pete?

現在，當我們對我們的產品進行投資時，我也有動力繼續推動以產品為主導的增長，這將培養所有未來的種植者。所以我們確實經常談論企業，但我認為今年也出現了一些非常有利的事情，這有助於為未來的增長奠定基礎。皮特？

Sure. And then to the second part of your question, we did see more macroeconomic, sort of, what I call, pressure in Europe. That's one part of it. But between the customer base over here, we saw really good success with our larger enterprise customers. And we probably saw a little more pressure with our SMB and smaller ARR customers. So that's a little bit of texture where we saw it.

當然。然後是你問題的第二部分，我們確實看到了更多的宏觀經濟，我稱之為歐洲的壓力。這是其中的一部分。但在這裡的客戶群中，我們看到了我們的大型企業客戶取得的巨大成功。我們可能看到我們的 SMB 和較小的 ARR 客戶的壓力更大。所以這是我們看到的一點紋理。

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。

This is Sophie Lee on for Josh Baer. I'm wondering if you saw any benefit of vendor consolidation? And if you saw any customers consolidating to the Smartsheet platform? If you can also highlight any customer conversations that changed meaningfully in the past quarter and some of the outcome of that discussion?

我是喬什·貝爾的蘇菲·李。我想知道您是否看到了供應商整合的任何好處？如果您看到任何客戶整合到 Smartsheet 平台？您是否還可以突出顯示在過去一個季度發生有意義變化的任何客戶對話以及該討論的一些結果？

I think on the consolidation front, Sophie, we're seeing -- it's quite common when we have a multi -- $100,000, multimillion dollar opportunity that there is presence of others in the environment. I think where we benefit is we have very commonly presence within multiple nodes of the business. We remain, I think, really grateful for those high conversion rates in those situations. I spoke to one of those in the biopharma space this year, which was a bake-off where we were able to demonstrate the value and they moved quite quickly. That is going to be a very large account for us over the next 10 years.

我認為在整合方面，索菲，我們看到 - 當我們有一個多 - 100,000 美元，數百萬美元的機會時，環境中存在其他人是很常見的。我認為我們受益的地方是我們在業務的多個節點中非常普遍。我認為，我們仍然非常感謝那些情況下的高轉化率。我今年與生物製藥領域的其中一位進行了交談，這是一次烘烤，我們能夠展示其價值，而且他們的行動非常迅速。在接下來的 10 年裡，這對我們來說將是一個非常大的賬戶。

So I would say the number of times, there is that formal RFP really high diligence bake-off, those are still pretty few and far between, but they typically happen on the accounts that really matter. So we definitely put energy into those when they do come about.

所以我想說的是，正式的 RFP 確實是高度勤奮的烘烤，這些次數仍然很少而且相差甚遠，但它們通常發生在真正重要的賬戶上。因此，當它們真正出現時，我們肯定會投入精力。

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

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

Good to see a solid quarter, and congrats on kind of the margin guide. Just 2 quick ones for me. First, if we dig in a little bit to the macro factors that you saw in the quarter versus what you guided to getting worse. I guess clearly, your churn was strong at some 4% but maybe if you split up what you're seeing around expansions with existing customers versus net new, where are you seeing that bigger impact from the macro, any downward pressure on renewals? And then I have a quick follow-up.

很高興看到一個穩定的季度，並祝賀利潤率指南。對我來說只有 2 個快速的。首先，如果我們稍微研究一下您在本季度看到的宏觀因素與您指導的變得更糟的因素。我想很清楚，你的客戶流失率很高，約為 4%，但如果你將現有客戶的擴張與淨新客戶分開，你會在哪裡看到宏觀的更大影響，對續訂的任何下行壓力？然後我有一個快速跟進。

So Alex, I'll take your question in pieces. So first of all, the net dollar retention rates are fairly healthy. And the pullback that we've seen is on the expansion side of it tied to sort of what's happening in the macro. And what we've seen is it's been relatively strong with our larger customers and our enterprise customers, and there's a little more pressure with the SMB and smaller ARR customers. So that's how we've seen it play out. We haven't seen, as I said, the churn number materially get impacted. So we've seen fairly strong commitment to the Smartsheet platform.

亞歷克斯，我會逐個回答你的問題。因此，首先，淨美元保留率相當健康。我們所看到的回調是在它的擴展方面與宏觀中正在發生的事情有關。我們所看到的是，我們的大客戶和企業客戶的表現相對強勁，而 SMB 和小型 ARR 客戶的壓力更大。這就是我們看到的結果。正如我所說，我們還沒有看到流失率受到實質性影響。因此，我們看到了對 Smartsheet 平台的相當堅定的承諾。

Perfect. And then, I guess, with respect to the margin guidance, maybe talk about through the linearities through the year, the exit rate that we should be looking at for fiscal '24. And specifically, as you contemplate kind of this net new growth algorithm -- growth profitability algorithm where your billings growth is at that kind of 20% level, what is the aspiration around sales efficiency in terms of that magic number or the ability to kind of generate a balance of both?

完美的。然後，我想，關於利潤率指導，也許可以通過全年的線性度來討論我們應該在 24 財年關注的退出率。具體來說，當你考慮這種淨新增長算法時——增長盈利算法，其中你的賬單增長在那種 20% 的水平上，在這個神奇的數字或能力方面，對銷售效率的期望是什麼產生兩者的平衡？

So I'll start by saying that this is a big market, and we think there's plenty of room in the growth in this market long term. We're bullish in this market, and we are the leaders in the enterprise segment and across the whole category. So when we think of this business in terms of the longer-term growth, we see this as a solid growth.

所以我首先要說這是一個大市場，我們認為這個市場的長期增長空間很大。我們看好這個市場，我們是企業領域和整個類別的領導者。因此，當我們從長期增長的角度考慮這項業務時，我們認為這是一個穩健的增長。

Now there's going to be macroeconomic adjustments as we go through different cycles of macroeconomic change. So that's one part of it. But the second part of your question is on the profitability and how we think of that moving forward. We're going to continue to be optimizing essentially the scale we've attained. So if you think of the scale we've achieved, we don't need to add a lot of resources just given the scale in terms of where we're at. And we're being more and more efficient because the -- every dollar we've already gained cost us a lot less to serve compared to the dollar we need to invest to gain. So that's playing into the economics you're seeing in sales and marketing is going to continue through. So you're going to see that play itself in the future as well.

現在，隨著我們經歷不同的宏觀經濟變化週期，將會進行宏觀經濟調整。這就是其中的一部分。但你問題的第二部分是關於盈利能力以及我們如何看待這一點。我們將繼續優化我們已經達到的規模。因此，如果你想到我們已經達到的規模，我們不需要添加很多資源，只是考慮到我們所處的規模。而且我們的效率越來越高，因為與我們需要投資獲得的美元相比，我們已經獲得的每一美元服務成本要低得多。因此，您在銷售和營銷中看到的經濟學將繼續發揮作用。所以你也會看到它在未來發揮作用。

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。

I had to look at the press release like 3 times because I kept looking at -- is that $110 million of free cash flow and surely it was. So great to see that. I have 2 questions. The first one is a multi-parter. And then the second question, I'll follow up with. But on the first question around product and packaging. I think, Mark, you said you have 3,300 customers that are considered enterprise. But I'm curious about is the penetration of Advance now in that segment? And then if we take a step back, if we're looking at 23% to 24% growth in the total revenue, how should we be thinking about the enterprise segment? And then I have a follow-up around (inaudible).

我不得不看新聞稿 3 遍，因為我一直在看——那是 1.1 億美元的自由現金流，而且肯定是。很高興看到這一點。我有兩個問題。第一個是多方。然後是第二個問題，我會跟進。但是關於產品和包裝的第一個問題。我想，馬克，你說你有 3,300 個被認為是企業的客戶。但我很好奇 Advance 現在在該細分市場中的滲透率如何？然後，如果我們退後一步，如果我們看到總收入增長 23% 到 24%，我們應該如何考慮企業部門？然後我有一個後續行動（聽不清）。

Terry, the 3,300, again, that ties out to the large enterprise. That's over 10,000 employees. We obviously have many more companies north of 2,000 employees as well. So in that very large segment, it is still really early innings for Advance. We have -- while the bookings do tie out to a lot of the larger transactions we have, it's a minority of that base. So we think it's still -- we're trying to figure out ways in addition to our people-based processes to get these capabilities presented to people.

特里，3,300，再次與大型企業聯繫在一起。那是超過 10,000 名員工。顯然，我們還有更多超過 2,000 名員工的公司。因此，在那個非常大的細分市場中，Advance 仍然處於早期階段。我們有——雖然預訂確實與我們擁有的許多較大的交易相關，但它只是該基礎的一小部分。所以我們認為它仍然 - 我們正在嘗試找出除了我們以人為本的流程之外的方法來將這些功能呈現給人們。

As I said on past calls on some of our road shows, we are working on both getting our professional sales team able to solution advise and do outcome mapping with people, while getting our advanced product line into a self-discovered state. So what that means is people at those 3,300 customers using our product in the context of what they're trying to solve, whether it's integration, whether it's providing advanced access to data, having those things presented to them (inaudible) having them experience those things and then do -- really have inbound demand to us saying, hey, we use this thing, we'd like to talk to you about this capability, which ultimately leads to a discussion of Advance.

正如我在過去的一些路演電話會議上所說，我們正在努力讓我們的專業銷售團隊能夠提供解決方案建議並與人們進行結果映射，同時讓我們的高級產品線進入自我發現狀態。那麼這意味著這 3,300 名客戶中的人們在他們試圖解決的問題的背景下使用我們的產品，無論是集成，還是提供對數據的高級訪問，將這些東西呈現給他們（聽不清）讓他們體驗這些事情然後做——真的有入站需求對我們說，嘿，我們使用這個東西，我們想和你談談這個能力，這最終導致了對 Advance 的討論。

So we are still, call it, second inning on the Advance penetration as it relates to these super large customers. What's neat though is that we have enough data points now that really help us understand how people are adopting those, what it means for connected users and how that flows through on the economics.

因此，我們仍然可以稱之為與這些超級大客戶相關的高級滲透的第二局。不過，好消息是我們現在有足夠的數據點，可以真正幫助我們了解人們如何採用這些數據，這對連接的用戶意味著什麼，以及它如何影響經濟。

And Terry, the second part of your question is that -- was on the 23% to 24% revenue growth and how that parses out across segment. So our revenue growth is a function of our billings and our net dollar retention rates, you think of the largest customers, they grow with us the fastest as we -- as Mark shared on our biggest large enterprise customers, you can see the growth rate is really quick. And the best part about that is they will grow faster than our median growth rate but what's interesting is that our biggest customers are the most profitable for us as well. But that's the scale that leads to the $110 million you see, which you referenced at the start. So we're pretty excited by those economics.

特里，你問題的第二部分是關於 23% 到 24% 的收入增長以及如何跨部門解析。所以我們的收入增長是我們的賬單和我們的淨美元保留率的函數，你想到最大的客戶，他們與我們一起增長最快，因為我們 - 正如馬克分享我們最大的大型企業客戶，你可以看到增長率真的很快。最好的部分是它們的增長速度將超過我們的增長率中值，但有趣的是，我們最大的客戶對我們來說也是最有利可圖的。但這就是導致你看到的 1.1 億美元的規模，你在一開始就提到了這一點。所以我們對這些經濟學感到非常興奮。

Yes. Got it. And I guess just following up on the first part of the question. I mean, Mark, you were kind of going down the path of product discovery. And I know we've talked about that a bunch in the past. You go on the website. And if you just look at the sheer number of capabilities, a lot of these folks probably don't even know all of what is under the hood, but is there a point in time this year where there is a major kind of milestone where whether it's the technology, the AI or people they could really unleash this where potentially this could become an upside driver around some of the product discovery initiatives on whether it's billings or revenue?

是的。知道了。我想只是跟進問題的第一部分。我的意思是，馬克，你有點走上了產品發現的道路。我知道我們過去已經談過很多次了。你去網站。如果你只看能力的數量，很多人可能甚至不知道引擎蓋下的所有內容，但今年是否有某個時間點出現了一個重要的里程碑，是否它是技術、人工智能或他們真正可以釋放的人，這可能會成為圍繞某些產品發現計劃的上行驅動力，無論是賬單還是收入？

Yes, Terry, we expect to benefit from this beginning in the second half. So engineering is underway right now. Some of that self-discovery will be available heading into the second half. And consistent with how Pete and I have forecasted the business, until a new idea, a new concept, the new innovation yields, we don't bake it into our guide. So I would see that, Terry, if it performs to be incremental.

是的，特里，我們希望從下半年開始受益。所以工程正在進行中。一些自我發現將在下半年可用。與皮特和我對業務的預測一致，在新想法、新概念、新創新產生之前，我們不會將其納入我們的指南。所以我會看到，特里，如果它表現得是增量的。

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

你的下一個問題來自富國銀行證券公司的 Michael Turrin。

Great. Appreciate you taking the question and nice job with the close of the year. I think given the prepared remarks, the focus on enterprise is clear. Could you just speak to how margin complements that? I would think that could prove more people heavy, but clearly not the case given you're giving 10 percentage points of implied free cash flow margin expansion into next year. So can you just add more on what enables that from the Smartsheet side and how you're able to balance both an enterprise focus and the margin expansion in the current environment?

偉大的。感謝您在年底接受這個問題和出色的工作。我認為鑑於準備好的發言，對企業的關注是明確的。你能談談保證金如何補充嗎？我認為這可能會證明更多的人負擔重，但顯然情況並非如此，因為你將 10 個百分點的隱含自由現金流量利潤率擴展到明年。那麼，您能否從 Smartsheet 方面補充更多信息，以及如何在當前環境中平衡企業重點和利潤率擴張？

Sure. So Michael, 2 parts of it. The first one is, when you think of the enterprise customers and you think of their -- the growth rates they have, that's a really high number. It sort of is better than our average by a fair bit. And what that does for us is it creates a space where if you're looking at our growth and you're looking at how much we invest in retaining the dollars we've already got, that's a fairly low number.

當然。所以邁克爾，它的 2 個部分。第一個是，當你想到企業客戶時，你會想到他們的——他們的增長率，這是一個非常高的數字。它比我們的平均水平好一點。這對我們來說是創造了一個空間，如果你正在看我們的增長，你正在看我們為保留我們已經擁有的美元而投資了多少，那是一個相當低的數字。

So that provides the basis for the margin accretion. We are investing in getting the new dollar, but the base is growing by such a large number that it provides natural scale impact benefit to sales and marketing. So that's one part of the equation. And the second part of the question is just a simple part of -- we hired a lot of people last year given the size at which we are, and we don't need to hire the same number of people and that lower hiring that we're going to go through this year is margin accretive. Those are -- think of them as 2 simple facts that really drive the margin story.

因此，這為保證金增加提供了基礎。我們正在投資獲得新的美元，但基數增長如此之大，以至於它為銷售和營銷提供了自然的規模影響效益。所以這是等式的一部分。問題的第二部分只是一個簡單的部分——考慮到我們的規模，我們去年僱用了很多人，我們不需要雇用相同數量的人，而且我們不需要雇用更少的人今年要經歷的是利潤增長。這些是 - 將它們視為真正推動保證金故事的兩個簡單事實。

That's helpful. And then, I guess, just the other point that you mentioned in the prepared remarks, Pete, was just also making sure you're able to capture the improvement whenever that were to surface in the world. So it sounds like you have some natural capacity to grow into, but just how you continue to thoughtfully add capacity to make sure you're striking the right balance?

這很有幫助。然後，我想，Pete，您在準備好的發言中提到的另一點也只是確保您能夠在世界出現時捕捉到改進。所以聽起來你有一些天生的成長能力，但你如何繼續深思熟慮地增加能力以確保你取得正確的平衡？

Yes. For us, we are a sales-assisted motion. And now we've (inaudible) with obviously the self-discovery that makes that motion go faster. But if you think about the way we've modeled it, we've modeled our sales productivity in line with the way we think the macro is going to play. If the macro changes and it turns on us, you will see a ramp in sales productivity because we've already got a ramped sales force we brought in this year that's now enabled with the best technique. So we're ready to get there. So that's the upside we see as the environment changes or as Mark mentioned, as we see the benefit of some of these things, which we can measure, we can put more energy behind those initiatives and drive upside to the current plan we have.

是的。對我們來說，我們是一個銷售輔助運動。現在，我們（聽不清）顯然有了自我發現，這使該動作進行得更快。但是如果你考慮一下我們建模的方式，我們已經根據我們認為宏觀將發揮作用的方式對我們的銷售生產力進行了建模。如果宏觀發生變化並影響到我們，您將看到銷售生產力的提升，因為我們已經在今年引進了一支數量激增的銷售隊伍，現在已經採用了最好的技術。所以我們準備好到達那裡。所以這就是我們看到的環境變化的好處，或者正如馬克提到的那樣，當我們看到其中一些事情的好處時，我們可以衡量，我們可以在這些舉措背後投入更多的精力，並推動我們目前的計劃。

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, good to hear that you're kind of leaning in on generative AI. Maybe help us understand some of the use cases. But more fundamentally, how do you differentiate with generative AI when everyone is kind of rushing to implement those large language models? Do you think it becomes kind of table stakes at some point versus kind of increasing competitive advantage?

祝賀這個季度。馬克，很高興聽到你有點傾向於生成人工智能。也許可以幫助我們理解一些用例。但更根本的是，當每個人都急於實施那些大型語言模型時，你如何與生成人工智能區分開來？你認為它在某種程度上會成為一種賭注，而不是一種不斷增加的競爭優勢嗎？

Yes. I love the question. I think those who sprint towards embedding a standard capability that is not differentiating can say that they're participating. But I actually don't think it really separates you from the competition. I think the marriage between what is distinct and unique to your offering paired with generative AI, that's the magic. So when we think about our assets and digital asset management, whether it's the generation or images, manipulation of images that is paired with the Brandfolder and Outfit offerings.

是的。我喜歡這個問題。我認為那些衝刺嵌入沒有差異化的標準功能的人可以說他們正在參與。但我實際上並不認為它真的能將您與競爭對手區分開來。我認為你的產品的獨特性和獨特性與生成人工智能相結合，這就是魔力。因此，當我們考慮我們的資產和數字資產管理時，無論是生成還是圖像，圖像處理都與 Brandfolder 和 Outfit 產品相結合。

When I think about where we see major value unlocks in our world in terms of Smartsheet (inaudible), I think of the thousands of cases we get every single quarter from people saying, trying to figure out how to design the most advanced formula and logic-based workflows in our app.

當我想到我們在 Smartsheet（聽不清）方面看到世界上主要價值解鎖的地方時，我想到我們每個季度從人們那裡得到的數千個案例，試圖弄清楚如何設計最先進的公式和邏輯在我們的應用程序中基於工作流程。

We've already done research. We've already generated formulas and logic with the help of generative AI, which we think will be a major design win for customers. So when you think about -- it's not just driving down the cost, it is unlocking a whole new set of population that in the current form may be dissuaded from taking the next step. So I think it's in the context of the work people are tracking and designing in Smartsheet, the digital asset. And then the third vector is really all of the inflow we get from our customers into our help center.

我們已經做了研究。我們已經在生成式 AI 的幫助下生成了公式和邏輯，我們認為這將是客戶的一項重大設計勝利。因此，當您考慮時——這不僅僅是降低成本，它還釋放了一組全新的人口，以當前的形式可能會阻止他們採取下一步行動。所以我認為這是在人們在數字資產 Smartsheet 中跟踪和設計的工作環境中。然後第三個向量實際上是我們從客戶那裡獲得的所有流入我們幫助中心的信息。

People are trying to -- when you look at the percentage of cases that come in, it's not break/fix. It's typically grounded in how do I -- and how do I unlock with generative AI is significant. So the very promising remark that I made in my remarks ties up to those 3 vectors that we're pursuing. And you'll see us continue to engage our community and our customers through Early Adopter Program in the coming quarters. And I would say I'm quite bullish for the out years in terms of what that means for our customers.

人們正在嘗試——當你查看出現的案例百分比時，它不是中斷/修復。它通常以我如何做為基礎——我如何使用生成人工智能解鎖是很重要的。因此，我在發言中做出的非常有希望的發言與我們追求的這 3 個向量相關。您會看到我們在未來幾個季度繼續通過早期採用者計劃與我們的社區和客戶互動。而且我會說，就這對我們的客戶意味著什麼而言，我對未來幾年非常樂觀。

Got it. Understood. And Pete, one question for you on the FCF guide. Obviously, it's extremely strong. But help me understand kind of the context with respect to stock-based compensation on that. Seems like SBC is growing about 23%, our understanding is that hiring is probably going to moderate. Help us understand the FCF guide versus the SBC number. Is there a change in kind of comp structure going into this fiscal year?

知道了。明白了。皮特，有一個關於 FCF 指南的問題。顯然，它非常強大。但請幫助我了解關於基於股票的薪酬的背景。似乎 SBC 增長了約 23%，我們的理解是招聘可能會放緩。幫助我們了解 FCF 指南與 SBC 編號。本財年的薪酬結構是否有變化？

So the guide we provided obviously shows an improvement in the GAAP margins as well. So you can see a proportionate improvement in the GAAP margins consistent with the non-GAAP margin improvement, and it embeds a stock-based compensation element that basically shows it's being -- we're managing it to be flat year-on-year. And we've taken a sort of special emphasis and initiatives that we can use to reduce the stock-based compensation.

因此，我們提供的指南顯然也顯示了 GAAP 利潤率的改善。因此，您可以看到 GAAP 利潤率的相應改善與非 GAAP 利潤率的改善一致，並且它嵌入了一個基於股票的補償元素，這基本上表明它是——我們正在管理它，使其同比持平。我們採取了一種特別的重點和舉措，我們可以用來減少基於股票的薪酬。

Obviously, there is a stacking effect that happens in stock compensation of previous historical brands. So we're very mindful of what we're adding into the pile. And for example, this quarter, we made the change to convert the bonuses we paid to senior employees, which used to be in stock to convert them to cash. That's an example of, among many others of how we're managing stock-based compensation.

顯然，以往歷史品牌的庫存補償存在疊加效應。因此，我們非常注意要添加到堆中的內容。例如，本季度，我們進行了更改，將我們支付給高級員工的獎金轉換為現金，這些獎金以前是庫存的，可以轉換為現金。這是我們如何管理基於股票的薪酬的一個例子。

Your next question is 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。

Wonderful. First, I wanted to maybe hit a little bit on the macro side. And what sort of impact have you seen from your existing customer base? And what are you kind of contemplating from the seat count reductions or I guess the layoffs you've been seeing across and what that means on the seat count side? I know you're very well diversified, but we've seen a lot of layoffs in tech. So maybe you could talk through what you've seen so far, what you're modeling and any tools that you've kind of had in your arsenal to be able to counteract that or maybe slightly offset that? And then I've got a quick follow-up.

精彩的。首先，我想在宏觀方面打一點。您從現有客戶群中看到了什麼樣的影響？您對減少座位數有什麼想法，或者我猜您已經看到裁員，這在座位數方面意味著什麼？我知道你的多元化程度很高，但我們已經看到很多科技公司裁員。所以也許你可以談談你到目前為止所看到的，你正在建模什麼以及你在你的武器庫中擁有的任何工具能夠抵消或者稍微抵消它？然後我有一個快速的跟進。

Yes. So the -- for us, the major element of what we're seeing is when you think of the expansion, it's really on the gross expansion side of it. We're not seeing anything more than the normal historical movement on what we would consider reduction. And to parse that even further, we are seeing sort of what I call some seat churn, but that's not unusually different from the capability churn we see. So it's sort of aligned and moving in lockstep together.

是的。所以 - 對我們來說，我們所看到的主要因素是當你想到擴張時，它實際上是在它的總擴張方面。除了我們認為減少的正常歷史運動之外，我們沒有看到任何其他東西。為了進一步分析，我們看到了我所說的一些座位流失，但這與我們看到的能力流失並沒有什麼不同尋常。所以它有點一致，並且步調一致。

Some part of that obviously comes down to what we're doing. So what we're doing is we don't have an ELA type model. What we have is the earned enterprise, which means we don't sell seats ahead of their usage. People are using them, they leverage them. It is the same concept we use for connected users. You're not paying for users you don't need. That really helps keep people on the side of the ledger where they're staying with what they have. And then the question really becomes one of, what are you adding to the list? Or how much are you going to add and when are you going to add those?

其中一部分顯然歸結為我們正在做的事情。所以我們正在做的是我們沒有 ELA 類型模型。我們擁有的是賺取的企業，這意味著我們不會在使用前出售席位。人們正在使用它們，他們利用它們。這與我們用於連接用戶的概念相同。您無需為不需要的用戶付費。這確實有助於將人們留在分類帳的一邊，在那裡他們可以保留自己擁有的東西。然後問題真的變成了，你要在列表中添加什麼？或者你要添加多少，什麼時候添加？

Got it. That's helpful. And then the other kind of macro-related question, I wanted to better understand. Pete, when you were talking about the impacts that you're modeling, you've seen lower close rates, you're assuming that degrades further, which makes a lot of sense. Have you also seen deal compression as well in terms of you thought a deal would be, call it, $1 million in ARR, and it ends up coming at less than that, $800,000 or whatever be the case? And what are you modeling in terms of deal compression going forward? Is that embedded in guidance?

知道了。這很有幫助。然後是另一種與宏觀相關的問題，我想更好地理解。皮特，當你談論你正在建模的影響時，你已經看到較低的關閉率，你假設它會進一步降低，這很有意義。你是否也看到過交易壓縮，你認為交易會是 100 萬美元的 ARR，但最終會低於 800,000 美元或其他任何情況？你在未來的交易壓縮方面建模是什麼？這是否包含在指導中？

Yes. So Rishi, we've modeled the trends we've seen. And so what we have modeled is some degradation, the close rate. We've modeled some elongation in the sales cycles. And the deal compression that happens typically is people deciding not to buy is not the issue, they're buying either things a la carte and in smaller pieces. So it's still a healthy expansion rate, which is what I was looking at. Looking at our expansion rate is healthy. And even the one we've guided to is a healthy expansion rate. It's just a matter of moderation in the macroeconomic phase that exists.

是的。所以 Rishi，我們已經模擬了我們所看到的趨勢。所以我們建模的是一些退化，接近率。我們已經模擬了銷售週期的一些延長。通常發生的交易壓縮是人們決定不購買，這不是問題，他們要么點菜，要么小件購買。所以它仍然是一個健康的擴張率，這正是我所看到的。看看我們的擴張速度是健康的。甚至我們指導的那個也是健康的擴張率。這只是存在的宏觀經濟階段的適度問題。

Rishi, I think one thing also that has been helpful is there are some of the transactions this last quarter, I would class as compliance-based licensing. So we have an agreement with you, you use the product extensively. You have all these connected users and that discussion happens around, okay, here's the new level at which you're engaging with the platform. It's not you making a choice over, oh, I think this would be interesting, I didn't get value. It's a decision you made quarters ago that you're not clicking into and those discussions are usually much more high velocity because it's really maintaining compliance than it is making a new business decision.

Rishi，我認為還有一件事很有幫助，那就是上個季度有一些交易，我將其歸類為基於合規性的許可。因此我們與您達成協議，您廣泛使用該產品。您擁有所有這些連接的用戶，並且討論發生在周圍，好吧，這是您與平台互動的新級別。這不是你做出選擇，哦，我認為這會很有趣，我沒有得到價值。這是你在幾個季度前做出的決定，但你沒有參與其中，而且這些討論的速度通常要快得多，因為它實際上是在維護合規性，而不是做出新的業務決策。

Your next question is from the line of Jackson Ader with SVB Securities.

你的下一個問題來自 SVB 證券公司的 Jackson Ader。

The first one, just given that these things are happening concurrently, like how confident are you -- there's been a lot of discussion with (inaudible) how confident are you that none of the (inaudible) or close rates are impacted by some of the expense cuts that you've made over the last kind of 6 to 12 months?

第一個，考慮到這些事情是同時發生的，比如你有多自信——已經有很多討論（聽不清）你有多自信，沒有（聽不清）或關閉率不受某些影響在過去的 6 到 12 個月裡，您削減了多少開支？

Jackson, the short answer to your question is, if we've made expense reductions, we've made them in areas which are ancillary to the core selling or product areas. So we made changes, for example, in support resources. We made changes in expenses that we spend on, we just reduced the dollar value of those normal procurement type of things. So we haven't -- we've actually maintained our sales capacity, and that's one thing we're pretty excited about going into the year. So when you talk about deal compression or you talk about elongated sales cycles, that's really about what customers are feeling and experiencing as they're making plans of their own on how to plan their business.

傑克遜，對你的問題的簡短回答是，如果我們減少了開支，我們已經在核心銷售或產品領域的輔助領域進行了削減。因此，我們進行了更改，例如，在支持資源方面。我們改變了我們花費的費用，我們只是降低了那些正常採購類型的東西的美元價值。所以我們沒有——我們實際上保持了我們的銷售能力，這是我們對進入這一年感到非常興奮的一件事。因此，當您談論交易壓縮或銷售週期延長時，這實際上是關於客戶在製定自己的業務計劃時的感受和體驗。

Okay. Yes, that makes sense. So they're outside of the scope that you would expect to see. Okay. And then, Mark, when we're talking about those rare instances where it might be a bigger RFP and Smartsheet is already installed in a couple of (inaudible), are there any business units that you feel like have an outside influence on the ultimate company-wide decision, whether it's finance or IT or sales, marketing, whatever?

好的。是的，這是有道理的。所以它們超出了您期望看到的範圍。好的。然後，馬克，當我們談論那些可能是更大的 RFP 並且 Smartsheet 已經安裝在幾個（聽不清）中的罕見情況時，是否有您認為對最終結果有外部影響的業務部門全公司範圍內的決策，無論是財務還是 IT 還是銷售、營銷等等？

I would say (inaudible) user population as well as those responsible for ensuring a safe and scaled environment. And I would say there are certain things that are non-negotiables where you have to conform, whether that's in how it's administered, how you are licensed, how you allow non-licensed people to interact with the information that is being stored. Those are all things that are, I think, pretty tried, true and tested in that enterprise environment. I would say that the organization from a functional standpoint, which I think are getting outsized sort of wait on the scale right now are those who are tying out to revenue and both growth and retention. So I think the presence of field ops, any organization is directly tied to customer experience, and financials, I would say, it plays a larger role today.

我會說（聽不清）用戶群體以及那些負責確保安全和規模化環境的人。我想說的是，有些事情是您必須遵守的，這是不可協商的，無論是管理方式、獲得許可的方式，還是允許未獲得許可的人與存儲的信息進行交互的方式。我認為，這些都是在該企業環境中經過充分嘗試、真實和測試的所有東西。我想說的是，從職能的角度來看，我認為現在正在等待的組織是那些與收入、增長和保留掛鉤的組織。所以我認為現場操作的存在，任何組織都與客戶體驗直接相關，而財務，我想說，它在今天發揮著更大的作用。

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

你的下一個問題來自 DJ Hynes with Canaccord。

Mark, can you talk about what you've seen with some of your more marketing-oriented use cases, Brandfolder, Outfit? It just feels like that's a category of spend that's seeing more scrutiny. So it would be great to get any observations there.

馬克，你能談談你在一些更面向營銷的用例中看到了什麼嗎？Brandfolder，Outfit？感覺這是一種受到更多審查的支出類別。因此，如果能在那裡進行任何觀察，那就太好了。

Yes. I think conversations in the marketing and creative management arena that tie out to sort of concrete financial benefit, like that presentation of value is landing very well. I think things are that are more qualitative in nature in terms of being more confident about the work you're managing, being a little bit more clear on the status of something still important, but probably not enough to tip the scales.

是的。我認為營銷和創意管理領域的對話與某種具體的經濟利益相關，比如價值的呈現非常順利。我認為事情在本質上更具定性，比如對你正在管理的工作更有信心，對仍然重要的事情的狀態更加清楚，但可能不足以扭轉局面。

So on most of our large marketing-based solution discussions now, we are grounding it in accelerating the completion of work, the elimination of third-party resource to get that work done and then the quantification of what that campaign or that asset is actually yielding for your company. And people are very interested to learn about how to quantify that. And the more weaken our marketers in going to their CFOs, Pete, no offence, right, in presenting the value, I think that really gives the marketing teams much more confidence. So it's a newer arena for many marketing organizations, but I think it's -- it actually is quite promising for the year ahead.

因此，在我們現在大多數基於營銷的大型解決方案討論中，我們將其立足於加速完成工作、消除第三方資源來完成工作，然後量化該活動或該資產的實際收益為您的公司。人們非常有興趣了解如何對其進行量化。而且我們的營銷人員在向他們的 CFO 求助時越弱，Pete，沒有冒犯，對，在展示價值方面，我認為這真的給了營銷團隊更多的信心。因此，對於許多營銷組織來說，這是一個較新的領域，但我認為它——它實際上對來年很有希望。

Yes. Okay. That's helpful. And then, Pete, just a follow-up for you. So look, in the context of the big margin upside next year, and I know this is a question you won't want to answer, but can you help frame like what kind of sales capacity you're thinking of adding in fiscal '24, maybe relative to what you did in fiscal 2023? And the reason I ask, like, I think investors are going to want some assurances that we're continuing to invest and position for growth in fiscal '25 and beyond. So any color there would be helpful for folks.

是的。好的。這很有幫助。然後，Pete，只是跟進你。所以看，在明年利潤率大幅上升的背景下，我知道這是一個你不想回答的問題，但你能幫忙設計一下你想在 24 財年增加什麼樣的銷售能力嗎？ ，也許相對於你在 2023 財年所做的事情？我問的原因，比如，我認為投資者會希望得到一些保證，即我們將繼續投資並為 25 財年及以後的增長做好準備。所以那裡的任何顏色都會對人們有所幫助。

So DJ, I think we're committed to growth. So think of that growth coming from a more efficient model. So quite simply, if you think of the size of our base that we bring in for renewal, the cost in terms of what it takes to service that base is much lower than what the cost is for bringing in a new dollar of business. That economic or that effect is going to stack into how many resources we need. And now we will continue to hire. We're going to hire this year as well. We'll hire next year, but the classes in size will be smaller than what we have historically done. So you see an accretion to margin as a part of our longer-term plan to grow margins.

所以 DJ，我認為我們致力於增長。因此，請考慮來自更高效模型的增長。所以很簡單，如果你考慮一下我們為更新帶來的基地的規模，那麼服務該基地所需的成本遠低於引入新業務的成本。這種經濟或那種影響將疊加到我們需要多少資源中。現在我們將繼續招聘。我們今年也打算招聘。我們明年會招人，但班級規模會比我們過去做過的要小。因此，您將利潤率的增加視為我們增加利潤率的長期計劃的一部分。

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

你的下一個問題來自 Scott Berg 與 Needham 的對話。

Everyone, congrats on the nice results this quarter. I guess, Mark, I want to start with a question on a totally different kind of, I guess, agenda is the company is pretty close to a $1 billion revenue run rate. How does Smartsheet look differently at a $2 billion run rate, do you think?

大家，祝賀本季度取得了不錯的成績。我想，馬克，我想從一個完全不同的問題開始，我想，議程是公司非常接近 10 億美元的收入運行率。您認為 Smartsheet 在 20 億美元的運行率下有何不同？

I think the enrollment, Scott, of many more customers having a diversified experience in Smartsheet, that will be very much present at $2 billion. So today, we talk about thousands of companies benefiting from Advance. I think a couple of years from now, we're going to see tens of thousands of organizations having a much more complete Smartsheet experience.

斯科特，我認為在 Smartsheet 中擁有多元化體驗的更多客戶的註冊人數將達到 20 億美元。所以今天，我們談論了數千家受益於 Advance 的公司。我認為幾年後，我們將看到數以萬計的組織擁有更完整的 Smartsheet 體驗。

So a couple of years ago at Analyst Day, someone said, what's the thing you would most like to have in your product and you know what, don't give me another thing. I want our customers to have perfect information on what's possible. Now fortunately, I have done a whole bunch of them in those 2 years, but I want those assets, those capabilities to land with our median customer. So we are working very hard, not just to cater to the largest of the large, but how do you get that midsized customer and that upper mid customer and even an emerging customer to understand the power of the platform. So I believe you're going to have a much more cross-connected product experience across the various disciplines within Smartsheet, whether it is on strategic transformation, it's marketing creative management, it's PPM, it's core work management. You're going to have much more complete usage. And today, you'd see -- you'll have evidence of hundreds of customers using us at scale, doing very sophisticated things that will be driving towards the (inaudible).

所以幾年前在分析師日，有人說，你最想在你的產品中擁有什麼，你知道什麼，別再給我了。我希望我們的客戶對可能性有充分的了解。現在幸運的是，在那兩年裡我做了一大堆，但我希望這些資產、那些能力能夠落到我們的中等客戶身上。因此，我們正在非常努力地工作，不僅僅是為了迎合大型企業中最大的一家，而是如何讓中型客戶和中高端客戶甚至新興客戶了解平台的力量。因此，我相信您將在 Smartsheet 的各個學科中獲得更多交叉連接的產品體驗，無論是戰略轉型、營銷創意管理、PPM 還是核心工作管理。您將擁有更完整的用法。今天，你會看到——你將有數百名客戶大規模使用我們的證據，做著非常複雜的事情，這些事情將推動（聽不清）。

And I would say what that will result in is not only more customers, but also a significantly higher average contribution per customer. So our ASP will climb meaningfully over the next few years as a result of that.

我想說的是，這不僅會帶來更多的客戶，而且還會大大提高每個客戶的平均貢獻。因此，我們的 ASP 將因此在未來幾年內大幅攀升。

Got it. That's very helpful. And then from a brief follow-up perspective, a lot of discussion on the macro, obviously, not a surprise given what's going on. But how do you all view your opportunity or recent working with partners? Partners continue to become increasingly more important component of, I think, some of your sales process, it's not that they necessarily sell directly, but they seem to influence it. Are you seeing anything different out of partners recently than maybe what you had in the past?

知道了。這很有幫助。然後從一個簡短的後續角度來看，很多關於宏觀的討論，顯然，考慮到正在發生的事情，這不足為奇。但是你們如何看待你們的機會或最近與合作夥伴的合作？合作夥伴繼續成為越來越重要的組成部分，我認為，在你的一些銷售過程中，他們不一定直接銷售，但他們似乎會影響它。您最近從合作夥伴身上看到的東西與過去有什麼不同嗎？

I'll start, Scott, by talking to -- a message I sent to -- a video message I did for the kickoff of one of our global SIs who has one of their global practices building a set of workflows and solutions on the Smartsheet platform. In this -- for this large global SI, every single M&A transaction and divestiture within this industry practice is backboned by Smartsheet. Every single project they do is navigated with Smartsheet. Every time they leave the customer site post that transaction being completed, Smartsheet is left behind with the customer for it to continue in those operations.

斯科特，我將首先與——我發送給的一條消息——我為我們的一個全球 SI 的啟動所做的視頻消息交談，他們的全球實踐之一在 Smartsheet 上構建了一套工作流程和解決方案平台。在此 - 對於這個大型全球 SI，該行業實踐中的每筆併購交易和資產剝離都由 Smartsheet 支持。他們所做的每個項目都使用 Smartsheet 進行導航。每次他們在交易完成後離開客戶站點時，Smartsheet 都會留給客戶，以便其繼續進行這些操作。

So that is a few years ago, those types of discussions, those types of experiences never existed. It was much more the midsized SI. We still have hundreds and hundreds of SIs in the middle range who are contributing, influencing. We do as much co-selling with them as we do them closing deals independent of us. But I would say the really notable ones, the ones that sort of give me the most confidence in terms of high impact are those larger players who are developing practices around us. And that is not just one global SI. We have 3 of those in play right now.

所以那是幾年前，那些類型的討論，那些類型的經歷從未存在過。它更像是中型 SI。我們仍然有成百上千的中層 SI，他們正在做出貢獻，產生影響。我們與他們共同銷售的次數與他們獨立於我們完成交易的次數一樣多。但我會說真正值得注意的是那些在高影響力方面給我最大信心的是那些在我們周圍發展實踐的大公司。這不僅僅是一個全球 SI。我們現在有 3 個在玩。

Very good. Congrats on nice results this quarter.

非常好。祝賀本季度取得不錯的成績。

Your next question is from the line of Robert Simmons with D.A. Davidson.

你的下一個問題來自 Robert Simmons with D.A.戴維森。

I was wondering, given the way valuations have generally come down and maybe stabilized a little bit privately, what's your current thought for us on doing further M&A? And kind of how much cash do you need to keep on your balance sheet? So kind of what's going in your capacity or bandwidth?

我想知道，鑑於估值普遍下降並可能私下穩定一點的方式，您目前對我們進行進一步併購有何看法？您需要在資產負債表上保留多少現金？那麼您的容量或帶寬發生了什麼變化？

So we have a healthy cash balance. And our approach to M&A has been that we want to look for adjacencies when they come up, but they have to be accretive relative to our margin model. So we're not looking for visionary M&A that doesn't have a clear payback or a clear ROI. So that's been our strategy, and we continue to pursue that aggressively.

所以我們有健康的現金餘額。我們的併購方法是，當它們出現時，我們希望尋找鄰接，但它們必須相對於我們的保證金模型具有增值性。因此，我們不是在尋找沒有明確回報或明確投資回報率的有遠見的併購。所以這一直是我們的戰略，我們將繼續積極地追求這一戰略。

Got it. And then talking about an existing one. Can you tell us about how it has been performing, a little more quantitatively perhaps than you did before in terms of like a lot of -- like the actual performance?

知道了。然後談論現有的。你能告訴我們它是如何表現的嗎，也許比你以前所做的更多 - 就像實際表現一樣？

So Outfit has performed to our expectation. It's done a really kind of effective job. The way we went about Outfit was it really tags along with Brandfolder as a part of templating that you need when you're doing Brandfolder deals. And we're seeing a good sort of, what I call, synergistic effect and the product integration we're thinking about between Brandfolder and Outfit makes this even more compelling when that comes through.

所以 Outfit 的表現達到了我們的預期。它完成了一項非常有效的工作。我們處理 Outfit 的方式是它真的與 Brandfolder 一起標記，作為您在進行 Brandfolder 交易時需要的模板的一部分。我們看到了一種很好的，我稱之為協同效應，我們正在考慮的 Brandfolder 和 Outfit 之間的產品整合使得這在實現時更加引人注目。

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

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

Congrats on your results, especially on that profitability guidance. It was awesome to see. I understand there was a slight degradation in close rates and sales cycles, but you're still seeing some pretty strong new customer activity with new bookings and the user growth number. I know those customers start small, but were there any particular segments or industry verticals that stood out on that front?

祝賀你的結果，尤其是關於盈利能力的指導。看到真是太棒了。我知道關閉率和銷售週期略有下降，但您仍然看到一些非常強勁的新客戶活動，包括新預訂和用戶增長數量。我知道這些客戶從小規模開始，但在這方面是否有任何特定的細分市場或垂直行業脫穎而出？

I think if you look at the segments that come out for us, which are very strong, in that new user, et cetera, we've launched essentially a lot of new activities with customers. And what we're seeing is our largest customers that come in from the largest companies, new nodes within companies coming forward, they seem to be really resonating with our product. And what they're hearing is capabilities can be launched earlier. We still do deals with Advance, which surprises sometimes us internally that says it's a new customer, they start with the brand. That's somebody deciding that they don't want the primitives as they get started. They just want to start with what gets them the lift in productivity that they need.

我認為，如果你看看為我們帶來的細分市場，這些細分市場在新用戶等方面非常強大，我們基本上已經與客戶開展了很多新活動。我們看到的是我們最大的客戶來自最大的公司，公司內部的新節點不斷湧現，他們似乎真的對我們的產品產生了共鳴。他們聽到的是可以更早啟動功能。我們仍然與 Advance 做交易，這有時讓我們內部感到驚訝，他們說這是一個新客戶，他們從品牌開始。那是有人決定他們在開始時不想要原語。他們只想從提高他們所需的生產力的因素入手。

Okay. Great. And then would love to just touch on what you're seeing in the market from a competitive perspective. It seems like some of your competitors are calling out some headwinds and undergoing some fairly large risks, while you're obviously continuing to execute pretty well. Have you started seeing any competitive benefits in the pipeline as a result of those changes?

好的。偉大的。然後很想從競爭的角度談談你在市場上看到的東西。看起來你的一些競爭對手正在遭遇一些不利因素並承受一些相當大的風險，而你顯然繼續執行得很好。由於這些變化，您是否開始看到管道中的任何競爭優勢？

So what we are seeing is -- 2 things happening. First is the market for hiring talent has obviously gotten better, which is a macro statement about everything we've done. And then the one thing we are finding is on the marketing side, the competition for (inaudible), et cetera, is proving to be easier. The cost is dropping over there. So we're benefiting on those 2 fronts.

所以我們看到的是 - 發生了兩件事。首先是招聘人才的市場明顯好轉，這是對我們所做的一切的宏觀說明。然後我們發現的一件事是在營銷方面，（聽不清）等方面的競爭被證明更容易。那裡的成本正在下降。所以我們在這兩個方面受益。

I think in terms of the teams in our pursuit, the large opportunities that we pursue, where we have established footprints, those are very rarely highly contested. It's really us demonstrating value and seeking greater investment from our client. It's pretty rare that one of our large existing customers that's growing quickly that they're in the process of reconsidering -- considering a platform change. So it's -- we really haven't seen that manifest or the median sales cycle for us.

我認為就我們追求的團隊而言，我們追求的巨大機會，我們已經建立足蹟的地方，這些很少有激烈的競爭。這實際上是我們展示價值並從客戶那裡尋求更大的投資。我們很少有一個正在快速增長的大型現有客戶正在重新考慮 - 考慮平台更改。所以它 - 我們真的沒有看到我們的清單或中位數銷售週期。

Great. Congrats again on the great results.

偉大的。再次祝賀取得的好成績。

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

你的最後一個問題來自花旗的史蒂夫恩德斯。

This is George on for Steve. I guess on the macro, if you could discuss the degree of linearity you saw through the quarter, it sounds like things may be progressively got worse on the conversion rates and sales cycles. So just any comments there. And then what you've seen in February and March so far?

這是喬治代替史蒂夫。我想在宏觀上，如果你能討論你在本季度看到的線性程度，聽起來轉化率和銷售週期的情況可能會逐漸惡化。所以這裡只有任何評論。那麼到目前為止，您在 2 月和 3 月看到了什麼？

So as we looked at the quarter and how it played out, the build through the quarter had some element of what I call, degradation that took place between November, moving into December and January, that you could describe as the elements I described before, that macro degradation was a function of like elongated sales cycles and what I call some degradation of the close rate that we saw. We saw that play out as we progressed through the quarter. So that's first part of it.

因此，當我們查看該季度及其結果時，整個季度的構建具有我所說的某些元素，即發生在 11 月、進入 12 月和 1 月之間的退化，您可以將其描述為我之前描述的元素，宏觀退化是銷售週期延長的結果，我稱之為我們所看到的收盤價的一些退化。隨著我們在本季度的進展，我們看到了這一點。這就是它的第一部分。

What have we observed so far in February, I think we've got to a February start, which is consistent with the first month of the quarter. But essentially, the trend we expected to have continue, which is a part of our guide. It's built out. We have seen the close rate and what I call sales cycles, not sort of improved, they stayed sort of marginally a tad bit sort of worse than (inaudible). So that's how they played out.

到目前為止，我們在 2 月觀察到了什麼，我認為我們必須從 2 月開始，這與本季度的第一個月一致。但本質上，我們預期的趨勢將繼續下去，這是我們指南的一部分。它是建造出來的。我們已經看到了關閉率和我所說的銷售週期，而不是有所改善，它們仍然比（聽不清）稍微差一點。所以這就是他們的表現。

Got it. That's helpful. And then one quick follow-up on the margin guidance in your sales and marketing spend. I just wanted to kind of understand if there are any kind of KPIs that you would see that might lead you to sort of turn on that investment flow? Or is this kind of all sort of according to plan and regardless of what you see in the macro side, you're kind of going forward with this ramp sales force that you have today?

知道了。這很有幫助。然後快速跟進銷售和營銷支出中的利潤率指導。我只是想了解您是否會看到任何類型的 KPI 可能會導致您打開該投資流？還是這一切都是按計劃進行的，無論您在宏觀方面看到什麼，您都在推進您今天擁有的這支斜坡銷售隊伍？

I think, George, our model is based on sort of reading the signals and seeing what comes out. So I would describe it to you is if we see a macro opportunity, as long as the ROI and the payback is there, we will continue to invest, which sort of provides the stability in op margins, but allows us to accelerate revenue on one side of it. We'll do the same thing with -- for example, things we generate internally, we see something that has (inaudible) and it's driving to good ROIs, we'll continue to invest behind it. That's the approach we're taking.

George，我認為我們的模型是基於讀取信號並查看結果。所以我想向你描述的是，如果我們看到一個宏觀機會，只要有投資回報率和回報，我們就會繼續投資，這在某種程度上提供了運營利潤率的穩定性，但允許我們在一個方面加速收入它的一側。我們將做同樣的事情——例如，我們內部生成的東西，我們看到有（聽不清）的東西並且它正在推動良好的投資回報率，我們將繼續投資它。這就是我們正在採取的方法。

At this time, I will now turn the call back over to Mr. Aaron Turner.

現在，我將把電話轉回給 Aaron Turner 先生。

Great. Thanks, everyone, for joining us this quarter, and we'll talk to you again next quarter.

偉大的。感謝大家本季度加入我們，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。