Smartsheet Inc (SMAR) 2024 Q2 法說會逐字稿

Good afternoon. My name is Emma, and I will be your conference operator today. At this time, I would like to welcome everyone to the Smartsheet Second Quarter Fiscal 2024 Conference Call. (Operator Instructions) Thank you.

下午好。我叫艾瑪，今天我將擔任你們的會議操作員。此時，我謹歡迎大家參加 Smartsheet 2024 財年第二季度電話會議。 （操作員說明）謝謝。

Aaron Turner, Head of Investor Relations. You may begin your conference.

亞倫·特納，投資者關係主管。您可以開始您的會議了。

Thank you, Emma. Good afternoon, and welcome, everyone, to Smartsheet's Second Quarter of Fiscal Year 204 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 is 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，艾瑪。下午好，歡迎大家參加 Smartsheet 204 財年第二季度收益電話會議。我們將討論今天收市後發布的新聞稿中宣布的結果。今天和我在一起的有 Smartsheet 的首席執行官 Mark Mader；以及我們的首席財務官皮特·戈博爾 (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。皮特准備好的講話附帶了幻燈片演示，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. Although we believe the expectations reflected in the forward-looking statements are reasonable, our actual results may differ materially and/or adversely.

在本次電話會議中，我們將做出聯邦證券法含義內的前瞻性聲明。我們的這些前瞻性陳述主要基於我們當前對未來事件和財務趨勢的預期和預測。這些前瞻性陳述受到許多風險和其他因素的影響，包括但不限於我們的投資者關係網站和 SEC 網站 www.sec.gov 上提供的 SEC 文件中描述的風險和其他因素。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和/或不利的差異。

All forward-looking statements made during this call are based on information available to us as of today. We do not assume any obligation to update these statements as a result 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. 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.

本次電話會議期間做出的所有前瞻性陳述均基於我們今天掌握的信息。我們不承擔因新信息或未來事件而更新這些聲明的任何義務，除非法律要求。除了美國公認會計準則財務數據外，我們還將討論某些非公認會計準則財務指標。本次電話會議隨附的演示文稿中提供了與最直接可比的美國公認會計準則措施的調節，也可以在我們的投資者關係網站上找到該演示文稿。

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

接下來，讓我把電話轉給馬克。

Thank you, Aaron, and good afternoon, everyone. Welcome to our second quarter earnings call for fiscal year 2024. While Pete will provide additional details, I'd like to highlight a few areas of our Q2 performance and share continued progress in our leadership of the enterprise work management market.

謝謝你，亞倫，大家下午好。歡迎參加我們的2024 財年第二季度財報電話會議。雖然Pete 將提供更多詳細信息，但我想重點介紹我們第二季度業績的幾個領域，並分享我們在企業工作管理市場領導地位方面的持續進展。

Smartsheet revenue for the quarter exceeded our guidance and grew by 26% year-over-year to $235.6 million, and billings grew 18% year-over-year to $243.1 million. In Q2, we generated non-GAAP operating margins of 8%, and free cash flow was $45.5 million. We ended the quarter with annual recurring revenue of $933 million and more than 13.4 million Smartsheet users. 75 customers expanded their Smartsheet investment by more than $100,000 in Q2 and 232 companies expanded by over $50,000. Additionally, we closed 3 transactions over $1 million and now have 51 customers with ARR over $1 million. Enterprise expansions for the quarter included Airbus U.S., Hewlett Packard Enterprise, Iron Mountain and Pacific Life Insurance Company, among others. And we saw new customer wins at organizations such as Breville, Equity Group Holdings and New York University.

本季度 Smartsheet 收入超出了我們的指導，同比增長 26% 至 2.356 億美元，賬單同比增長 18% 至 2.431 億美元。第二季度，我們的非 GAAP 營業利潤率為 8%，自由現金流為 4550 萬美元。截至本季度末，我們的年度經常性收入為 9.33 億美元，Smartsheet 用戶超過 1,340 萬。第二季度，75 家客戶的 Smartsheet 投資增加了超過 100,000 美元，232 家公司的投資增加了超過 50,000 美元。此外，我們完成了 3 筆超過 100 萬美元的交易，現在有 51 個客戶的 ARR 超過 100 萬美元。本季度的企業擴張包括空中客車美國公司、惠普企業公司、鐵山公司和太平洋人壽保險公司等。我們還看到 Breville、Equity Group Holdings 和紐約大學等組織贏得了新客戶。

We now have over 9,400 enterprise customers, which we define as organizations with over 2,000 employees. These customers make up over 50% of our ARR and are posting NRRs well above our overall rate. Our execution within the enterprise continues to be recognized by industry analysts and peer review sites. On the heels of being named the leader in Forrester's Collaborative Work Management Tools Wave, IDC published a report in July recognizing Smartsheet as a vendor who shaped the year in 2022. Additionally, Smartsheet received the distinction of being a customer's choice in the 2023 Gartner Peer Insights Voice of the Customer in the collaborative work management market segment in Q2. Smart received the highest rating and the highest percentage of customers willing to recommend the platform at 98%. Our portfolio of capabilities continues to be a core differentiating factor in our success in the enterprise. Our customers leverage our capabilities to attach the Smartsheet platform to mission-critical projects, programs and processes. In Q2, capabilities were present in each of our top 10 expansions. Smartsheet Advance, which is a bundle of our capabilities, had a strong quarter as well. We closed 216 Advance deals in Q2, an increase of 50% versus Q2 of last year.

我們現在擁有超過 9,400 家企業客戶，我們將其定義為擁有超過 2,000 名員工的組織。這些客戶占我們 ARR 的 50% 以上，並且公佈的 NRR 遠高於我們的總體比率。我們在企業內的執行力繼續受到行業分析師和同行評審網站的認可。繼被 Forrester 協作工作管理工具浪潮評為領導者之後，IDC 在 7 月發布了一份報告，認可 Smartsheet 是塑造 2022 年業績的供應商。此外，Smartsheet 在 2023 年 Gartner 同行評選中榮獲客戶選擇獎第二季度協作工作管理細分市場中客戶的見解。 Smart 獲得了最高評價，願意推薦該平台的客戶比例最高，達到 98%。我們的能力組合仍然是我們在企業中取得成功的核心差異化因素。我們的客戶利用我們的能力將 Smartsheet 平台附加到關鍵任務項目、計劃和流程中。在第二季度，我們排名前 10 的擴展包中都包含了功能。 Smartsheet Advance 是我們能力的集合，該季度也表現強勁。第二季度我們完成了 216 筆預付款交易，比去年第二季度增長了 50%。

To expand on this, here are some additional details of our 3 largest deals this quarter. A Big 4 consulting firm signed a 7-figure deal with us to streamline client engagement, simplify internal and client status reporting and automate a variety of processes across the organization. With Smartsheet Advance enabling the firm's business transformation, this customer estimates they've already saved $7.5 million across 590 projects completed as of May of this year. Importantly, Data Shuttle is allowing them to pull information from disparate data sources to quickly create reports without needing to develop costly direct integrations with proprietary systems. They'll also use Smartsheet to more effectively bid on engagements with clients and more efficiently plan, track and manage resources and budgets. This firm's increasing client-facing use of Smartsheet will also showcase our platform to their portfolio of blue-chip clients during engagements.

為了進一步闡述這一點，以下是我們本季度三筆最大交易的一些其他詳細信息。一家四大諮詢公司與我們簽署了一項價值 7 位數的協議，以簡化客戶參與、簡化內部和客戶狀態報告並自動化整個組織的各種流程。通過 Smartsheet Advance 實現公司的業務轉型，該客戶估計截至今年 5 月已完成的 590 個項目已節省了 750 萬美元。重要的是，Data Shuttle 允許他們從不同的數據源提取信息以快速創建報告，而無需開發成本高昂的與專有系統的直接集成。他們還將使用 Smartsheet 更有效地競標與客戶的互動，並更有效地規劃、跟踪和管理資源和預算。該公司越來越多地面向客戶使用 Smartsheet，這也將在合作期間向他們的藍籌客戶組合展示我們的平台。

We also signed a 7-figure expansion with a large global retailer where Smartsheet is being used to drive business transformation across multiple divisions. In its fulfillment centers, Smartsheet is helping leadership manage strategic planning and operations. And as they grow their brick-and-mortar locations, they're using Control Center to help manage new construction and store remodels. Smartsheet Advance also plays an important role in the company's retail marketing organization, where it supports their budget management, marketing and creative operations. Also in Q2, we closed a 7-figure Brandfolder deal with a Fortune 15 company. This customer will use Brandfolder to consolidate its tech stack while enabling marketing teams to eliminate manual processes and streamline the storage and management of digital inventory and video content. Brandfolder will help power their websites and mobile apps to reduce version control issues and help the team deliver a better online experience for customers and more efficiently generate millions in online revenue.

我們還與一家大型全球零售商簽署了 7 位數的擴張協議，其中 Smartsheet 被用於推動多個部門的業務轉型。在其履行中心，Smartsheet 正在幫助領導層管理戰略規劃和運營。隨著他們發展實體店，他們使用控制中心來幫助管理新建築和商店改造。 Smartsheet Advance 在公司的零售營銷組織中也發揮著重要作用，支持其預算管理、營銷和創意運營。同樣在第二季度，我們與一家財富 15 強公司達成了一筆價值 7 位數的 Brandfolder 交易。該客戶將使用 Brandfolder 整合其技術堆棧，同時使營銷團隊能夠消除手動流程並簡化數字庫存和視頻內容的存儲和管理。 Brandfolder 將幫助其網站和移動應用程序提供支持，以減少版本控制問題，並幫助團隊為客戶提供更好的在線體驗，並更有效地產生數百萬的在線收入。

As the leader in enterprise work management, our customers are running mission-critical programs and processes at significant scale on Smartsheet. Whether that's tracking the sourcing of millions of parts for a manufacturer or running programs with tens of thousands of projects, the Smartsheet platform continues to be the choice of customers needing to operate at enterprise scale. Scale will continue to be one of our biggest differentiators. Our platform's ability to scale allows our customers to leverage Smartsheet to build sophisticated solutions that run the kind of complex workloads that enable organizations to achieve their goals. Over the past 12 months, we've gone from supporting hundreds to thousands of concurrent projects with every Control Center blueprint. Very soon, customers will be able to run tens of thousands of concurrent projects per blueprint.

作為企業工作管理領域的領導者，我們的客戶正在 Smartsheet 上大規模運行任務關鍵型程序和流程。無論是跟踪製造商數百萬個零件的採購，還是運行數万個項目的程序，Smartsheet 平台仍然是需要企業規模運營的客戶的選擇。規模將繼續成為我們最大的差異化因素之一。我們平台的擴展能力使我們的客戶能夠利用 Smartsheet 構建複雜的解決方案，運行複雜的工作負載，使組織能夠實現其目標。在過去的 12 個月中，我們的每個控制中心藍圖都支持從數百個並發項目到數千個。很快，客戶將能夠在每個藍圖上運行數以萬計的並發項目。

Another element of scale is our commonly used and powerful computational feature, cross-sheet cell linking. It enables our customers to aggregate data across thousands of active and completed projects to build reports and dashboards to communicate program or portfolio health and progress. We increased the cell link's limit from 30,000 to 0.5 million per sheet. And we're aiming to achieve another 10x increase in scale next year to get to 5 million cell links per sheet, so customers can manage more interconnected projects.

規模的另一個要素是我們常用且強大的計算功能，跨表單元格鏈接。它使我們的客戶能夠匯總數千個活躍和已完成項目的數據，以構建報告和儀表板來傳達計劃或投資組合的健康狀況和進度。我們將單元格鏈接的限制從每張 30,000 個增加到 50 萬個。我們的目標是明年將規模再擴大 10 倍，達到每片 500 萬個單元鏈路，以便客戶可以管理更多互連項目。

Additionally, in Q2, platform improvements resulted in formula computations running 10x faster. In sum, these enhancements enable our customers to now manage significantly larger programs and portfolios, quickly aggregate and compute data at scale and visualize information in real time to achieve great efficiency across their global operations. And recently, we also made it easier for our customers to find and derive value from 2 of our most used premium capabilities: Data Shuttle and Dynamic View. Through self-discovery, our customers can now easily get hands-on experience with these powerful and popular capabilities without needing to engage with a salesperson.

此外，在第二季度，平台改進使公式計算的運行速度提高了 10 倍。總之，這些增強功能使我們的客戶現在能夠管理更大的項目和產品組合，快速聚合和大規模計算數據，並實時可視化信息，從而在全球運營中實現極高的效率。最近，我們還讓客戶更輕鬆地從我們最常用的兩種高級功能中找到並獲取價值：Data Shuttle 和 Dynamic View。通過自我發現，我們的客戶現在可以輕鬆獲得這些強大且流行的功能的實踐經驗，而無需與銷售人員接觸。

Data Shuttle automates data movement between other systems of record and Smartsheet so customers can quickly visualize and act on this data in their projects, programs and processes. Dynamic View power secure and confidential workflows across vendors or internal processes by enabling personalized views of the data in sheets and reports. By creating curated views, teams simplify error-prone manual work typically done over e-mail and messaging. We commenced the rollout for self-discovery across both Data Shuttle and Dynamic View for our business and enterprise customers at the end of Q2. By the end of September, we will complete the rollout.

Data Shuttle 可自動執行其他記錄系統和 Smartsheet 之間的數據移動，以便客戶可以在其項目、計劃和流程中快速可視化這些數據並對其採取行動。動態視圖通過支持工​​作表和報告中數據的個性化視圖，為跨供應商或內部流程的安全且保密的工作流程提供支持。通過創建精選視圖，團隊可以簡化通常通過電子郵件和消息傳遞完成的容易出錯的手動工作。我們於第二季度末開始為我們的商業和企業客戶推出跨 Data Shuttle 和 Dynamic View 的自我發現功能。到九月底，我們將完成部署。

Following the July announcement of Smartsheet's integrated generative AI capabilities, 3 features are currently being used by customers in private beta. Our plan is to make these and others more broadly available after our ENGAGE customer conference in September. AI assistant and AI solution builder will be available to all customers to get started more quickly and to deliver value faster. These features enable our customers to continue moving their projects and processes forward without leaving their workflows, leveraging our AI features to create a solution by describing their needs. With respect to monetization, AI formula builder, AI content generation and AI insights will only be available to paid users on enterprise plans. We expect these powerful features to incentivize plant upgrades and expansions. In some instances, we expect customers to also purchase higher usage tiers based on need. Brandfolder image captioning, people tagging and basic image editing will also be available in multiple usage tiers as part of Brandfolder's pricing plans. Over time, these features should become a meaningful catalyst for free to paid license conversion and enterprise plan upgrades.

繼 7 月份宣布推出 Smartsheet 的集成生成式 AI 功能後，目前客戶正在內測中使用 3 項功能。我們的計劃是在 9 月份的 ENGAGE 客戶會議之後，讓這些內容和其他內容得到更廣泛的使用。人工智能助手和人工智能解決方案構建器將可供所有客戶更快地入門並更快地交付價值。這些功能使我們的客戶能夠在不離開工作流程的情況下繼續推進他們的項目和流程，利用我們的人工智能功能通過描述他們的需求來創建解決方案。在貨幣化方面，人工智能公式構建器、人工智能內容生成和人工智能見解將僅向企業計劃的付費用戶提供。我們期望這些強大的功能能夠激勵工廠升級和擴建。在某些情況下，我們希望客戶還根據需要購買更高的使用級別。作為 Brandfolder 定價計劃的一部分，Brandfolder 圖像字幕、人員標記和基本圖像編輯也將在多個使用級別中提供。隨著時間的推移，這些功能應該成為免費到付費許可證轉換和企業計劃升級的有意義的催化劑。

Heading into the second half of FY '24, we remain well positioned for efficient growth, powered by the creativity and energy of thousands of Smartsheet team members and partners worldwide. Our team's dedication and hard work serves to enhance the Smartsheet platform and drives our success with customers. In less than 2 weeks at our sold-out ENGAGE customer conference, we will unveil how we are changing the way organizations operate and innovate faster at even greater scale. We are rapidly evolving our entire platform to extend our leadership position from the expansion of features, to governance, to scale and to gen AI. And across all these areas, we're looking forward to enrolling our customers in the future of Smartsheet.

進入 24 財年下半年，在全球數千名 Smartsheet 團隊成員和合作夥伴的創造力和活力的推動下，我們仍處於高效增長的有利位置。我們團隊的奉獻和辛勤工作有助於增強 Smartsheet 平台並推動我們與客戶取得成功。在不到兩週的時間裡，我們將在座無虛席的 ENGAGE 客戶會議上公佈我們如何改變組織的運營方式，並在更大範圍內更快地進行創新。我們正在快速發展我們的整個平台，以擴大我們的領導地位，從功能擴展到治理、規模化和生成人工智能。在所有這些領域，我們期待著讓我們的客戶參與 Smartsheet 的未來。

Now let me turn the call over to Pete. Pete?

現在讓我把電話轉給皮特。皮特？

Thank you, Mark. As Mark mentioned, we outperformed all aspects of our guidance in Q2, demonstrating the durable top line growth and free cash flow inherent in our business model. ARR grew 27% to $933 million, and we are well on our way to surpassing $1 billion in ARR by the end of the fiscal year. In Q2, we saw some signs of macro stabilization, particularly with our enterprise customers and with Smartsheet Advance. However, we are still seeing elements of budgetary caution across our customer base, which is impacting our higher velocity transactions and sales cycle durations.

謝謝你，馬克。正如馬克提到的，我們在第二季度的各個方面都超出了我們的指導，展示了我們業務模式固有的持久的收入增長和自由現金流。 ARR 增長了 27%，達到 9.33 億美元，到本財年末，我們的 ARR 有望突破 10 億美元。在第二季度，我們看到了一些宏觀穩定的跡象，特別是我們的企業客戶和 Smartsheet Advance。然而，我們仍然看到整個客戶群對預算持謹慎態度，這影響了我們更高的交易速度和銷售週期持續時間。

I will now go through our financial results for the second quarter. Unless otherwise stated, all references to our expenses and operating results are on a non-GAAP basis and are reconciled to our GAAP results in the earnings release and presentation that was posted before the call. Second quarter revenue came in at $235.6 million, up 26% year-over-year. Subscription revenue was $221.5 million, representing year-over-year growth of 28%. Services revenue was $14.1 million, representing year-over-year growth of 7%. Revenue from capabilities made up 32% of subscription revenue.

我現在將介紹第二季度的財務業績。除非另有說明，所有對我們費用和經營業績的提及均基於非公認會計原則（non-GAAP），並與電話會議前發布的收益發布和演示中的公認會計原則（GAAP）結果進行了協調。第二季度收入為 2.356 億美元，同比增長 26%。訂閱收入為 2.215 億美元，同比增長 28%。服務收入為 1,410 萬美元，同比增長 7%。來自功能的收入佔訂閱收入的 32%。

Turning to billings. Second quarter billings came in at $243.1 million, representing year-over-year growth of 18%. Approximately 94% of our subscription billings were annual, with about 4% monthly. Quarterly and semiannual represented approximately 2% of the total.

轉向比林斯。第二季度營收為 2.431 億美元，同比增長 18%。我們約 94% 的訂閱賬單是年度賬單，約 4% 是每月賬單。季度和半年度約佔總數的2%。

Moving on to our reported metrics. The number of customers with ARR over $50,000 grew 30% year-over-year to 3,552 and the number of customers with ARR over $100,000, grew 36% year-over-year to 1,665. These customer segments now represent 64% and 50%, respectively, of total ARR. The percentage of our ARR coming from customers with ARR over $5,000 is now at 90%.

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 30% 至 3,552 家，ARR 超過 100,000 美元的客戶數量同比增長 36% 至 1,665 家。這些客戶群目前分別佔總 ARR 的 64% 和 50%。我們的 ARR 百分比目前為 90%，來自 ARR 超過 5,000 美元的客戶。

Next, our domain average ACV grew 17% year-over-year to $8,863. We ended the quarter with a dollar-based net retention rate, inclusive of all our customers, of 121%. The full churn rate was 4%. We expect to exit FY '24 with a dollar-based net retention rate, inclusive of all our customers, of around 116% to 117%.

接下來，我們的域名平均 ACV 同比增長 17% 至 8,863 美元。本季度末，我們以美元計算的淨保留率（包括所有客戶）為 121%。完全流失率為 4%。我們預計 24 財年結束時，以美元計算的淨保留率（包括所有客戶）約為 116% 至 117%。

Now turning back to the financials. Our total gross margin was 83%. Our Q2 subscription gross margin was 87%. We expect our gross margin for FY '24 to remain at or above 82%. Overall operating income in the quarter was $19.2 million or 8% of revenue. Free cash flow in the quarter was $45.5 million. This brings our first half free cash flow to nearly $77 million. For modeling purposes, in Q3, we have 3 large cash outflows that are unique to the quarter. These include expenses related to our ENGAGE customer conference, one extra payroll run in the quarter, and a semiannual contractual payment related to a cloud provider. Given these outflows, we expect our Q3 free cash flow to be around $5 million.

現在回到財務方面。我們的總毛利率為83%。我們第二季度的認購毛利率為 87%。我們預計 24 財年的毛利率將保持在 82% 或以上。該季度的總體營業收入為 1,920 萬美元，佔收入的 8%。該季度的自由現金流為 4550 萬美元。這使我們上半年的自由現金流達到近 7700 萬美元。出於建模目的，在第三季度，我們有 3 筆本季度特有的大量現金流出。其中包括與我們的 ENGAGE 客戶會議相關的費用、本季度額外發放的工資以及與雲提供商相關的半年合同付款。考慮到這些資金流出，我們預計第三季度的自由現金流約為 500 萬美元。

Now let me move on to guidance. For the third quarter of FY '24, we expect revenue to be in the range of $240 million to $242 million and non-GAAP operating income to be in the range of $8 million to $10 million. We expect non-GAAP net income per share to be $0.08 to $0.09 based on diluted weighted average shares outstanding of 139 million. For the full fiscal year '24, we now expect revenue of $950 million to $953 million, representing growth of 24%. We expect services to be 6% of total revenue. We expect non-GAAP operating income to be in the range of $62 million to $67 million, representing an operating margin of 7%, and non-GAAP net income per share to be $0.53 to $0.57 for the year based on 139 million diluted weighted average shares outstanding.

現在讓我繼續指導。對於 24 財年第三季度，我們預計收入將在 2.4 億美元至 2.42 億美元之間，非 GAAP 營業收入將在 800 萬美元至 1000 萬美元之間。根據 1.39 億股稀釋加權平均數，我們預計非 GAAP 每股淨利潤為 0.08 至 0.09 美元。對於 24 年整個財年，我們目前預計收入為 9.5 億至 9.53 億美元，增長 24%。我們預計服務將佔總收入的 6%。我們預計非 GAAP 營業收入將在 6200 萬美元至 6700 萬美元之間，營業利潤率為 7%，基於 1.39 億稀釋加權平均數計算的非 GAAP 每股淨利潤將在 0.53 至 0.57 美元之間已發行股票。

We are reiterating our FY '24 billings growth of 20% and raising our free cash flow guidance for FY '24 to $120 million. Also for modeling purposes, we expect our Q3 billings to be 24% of our full year billings. To conclude, Q2 was highlighted by outperformance across all aspects of our guidance. Enterprises across the world continue to leverage Smartsheet to power their most sophisticated workflows. And we look forward to showing the next evolution of our market-leading platform at our ENGAGE customer conference in 2 weeks.

我們重申 24 財年的賬單增長 20%，並將 24 財年的自由現金流指引提高至 1.2 億美元。同樣出於建模目的，我們預計第三季度的賬單將佔全年賬單的 24%。總而言之，第二季度的突出表現是我們指導的各個方面都表現出色。世界各地的企業繼續利用 Smartsheet 來支持其最複雜的工作流程。我們期待在兩週後的 ENGAGE 客戶會議上展示我們市場領先平台的下一步發展。

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 today comes from the line of Terry Tillman with Truist.

（操作員說明）您今天的第一個問題來自 Terry Tillman 與 Truist 的對話。

Nice to see the billings and profit and cash flow upside in 2Q. We've heard about a report and even folks asking us about one of your enterprise customers, Cisco, potentially migrating away from Smartsheet. I know they've been a long-standing customer. I don't know if you can talk about this, but is there any truth to that? And just generally, what's the health of some of your larger longer-standing enterprise customers? And then I had a follow-up.

很高興看到第二季度的賬單、利潤和現金流量上升。我們聽說過一份報告，甚至有人向我們詢問您的企業客戶 Cisco 可能會從 Smartsheet 遷移的情況。我知道他們是我們的長期客戶。我不知道你是否可以談論這個，但這有道理嗎？一般來說，您的一些大型長期企業客戶的健康狀況如何？然後我進行了跟進。

Terry, thanks for the question. Yes, we're aware of that report and it is not accurate. We -- in Q2, Cisco signed a multiyear, multimillion dollar extension with us. With respect to the health of the large customers, we had a really nice milestone reached in going north of 50 customers contributing over $1 million of ARR. We hit a new high watermark on our over $0.5 million accounts, almost getting to 150 or 149 today. So I really like the stable of customers we have that are growing that are about to become our next 7-figure customers plus. So again, really pleased with the progress we're making there. And I think the remarks I had around the improvements we have in our scale and the sophistication of solutions, I think it plays directly (inaudible) support those types of customers.

特里，謝謝你的提問。是的，我們知道該報告，但它不准確。在第二季度，思科與我們簽署了一項為期數年、價值數百萬美元的延期協議。就大客戶的健康狀況而言，我們實現了一個非常好的里程碑，有 50 名客戶貢獻了超過 100 萬美元的 ARR。我們的賬戶價值超過 50 萬美元，創下新高，今天幾乎達到 150 或 149 個。因此，我真的很喜歡我們擁有的穩定客戶，這些客戶正在不斷增長，即將成為我們下一個超過 7 位數的客戶。再說一次，我們對我們在那裡取得的進展感到非常滿意。我認為我對我們的規模和解決方案的複雜性的改進所做的評論，我認為它直接（聽不清）支持這些類型的客戶。

And I guess just a follow-up question is, you all have added a lot of sales capacity really going back from last year. And as we look through the rest of this year, how are you feeling about where you are, kind of scorecard in terms of the productivity ramp of these new sales reps? Do you see that inflecting more in 3Q or 4Q? Or is this kind of more of a multi-quarter thing where still there's more benefits and fruit of the labor into next year around the ramping sales force?

我想接下來的一個問題是，從去年開始，你們都增加了很多銷售能力。當我們回顧今年剩下的時間時，您對自己的處境有何感想？就這些新銷售代表的生產力提升而言，這是一種記分卡嗎？您認為第三季度或第四季度的變化更大嗎？或者這更像是一個跨季度的事情，明年隨著銷售隊伍的不斷壯大，仍然會有更多的好處和勞動成果？

So Terry, this is Pete. When we look at the sales force productivity, obviously, that suffered because of the macro. We've seen that play out. And primarily because of the high-velocity transactional business that has impacted that. So we see continued progress in our enterprise sales productivity, which grew quarter-on-quarter. We're expecting that to continue into the future and maintain.

特里，這是皮特。當我們觀察銷售人員的生產力時，顯然，這是由於宏觀因素而受到影響。我們已經看到了這種情況的發生。主要是因為高速交易業務對此產生了影響。因此，我們看到我們的企業銷售生產力持續進步，逐季增長。我們預計這種情況將持續到未來並維持下去。

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

你的下一個問題來自摩根士丹利的喬什·貝爾 (Josh Baer)。

I wanted to ask one on the billings outlook for the rest of the year, 20% for the year, 24% in Q3, that's like 17% growth, I believe. And then that leaves 24% year-over-year growth for Q4. Anything that you could talk through sort of those dynamics of the step down in billings in Q3 and then the reacceleration in Q4, whether it's the stub, billings dynamic, comps or anything onetime, just kind of thinking about that trajectory.

我想詢問今年剩餘時間的比林斯前景，今年 20%，第三季度 24%，我相信這相當於 17% 的增長。第四季度的同比增長率為 24%。您可以談論第三季度比林斯下降然後第四季度重新加速的動態，無論是存根、比林斯動態、比較還是任何一次性的東西，只要考慮一下該軌跡即可。

Josh, it comes down to something very simple. It comes down to the comps that we're looking at. If you look at Q4 of last year, if you looked at the year-on-year growth, it was the slowest growing quarter of the year. We grew at 28% year-on-year. That was down from 36% in Q3. So it's just the comps that look to create the impression of acceleration. But when you look at the 2-year stack, like you just go back to 2022, which is a fairly normal year, and you look at what we've achieved in the first half and you take the billings guidance we've provided and you create an implied view, you'll see that, that implies the decel actually in the second half compared to what we've delivered in the first half.

喬希，這可以歸結為非常簡單的事情。這取決於我們正在考慮的比較。如果你看去年第四季度，如果你看同比增長，那是今年增長最慢的季度。我們的同比增長率為 28%。這比第三季度的 36% 有所下降。因此，只有那些比賽才能營造出加速的印象。但是，當您查看 2 年堆棧時，就像您回到 2022 年一樣，這是相當正常的一年，您會看到我們在上半年取得的成就，並採用我們提供的比林斯指導，您創建一個隱含視圖，您會看到，這意味著與我們在上半場交付的內容相比，下半場實際上有減速。

Okay. That's really helpful. And then wanted to just ask on the AI features that are being tested in private beta now. What's the feedback? Any sense for how many customers are using these features? And then also, what's the interest level from the broader customer base on -- around AI?

好的。這真的很有幫助。然後想問一下現在正在私人測試版中測試的人工智能功能。反饋如何？知道有多少客戶在使用這些功能嗎？此外，更廣泛的客戶群對人工智能的興趣程度如何？

Yes. I think there's real hunger for getting educated on how to apply AI to systems that they already understand. I think the best way to land a new concept with someone is to inject it into something they've already used, as opposed to trying to land them on a brand-new concept in sort of in a [femoral] way. So the interest rate is very high. We've controlled the release of this. We kicked off, what, 4, 6 weeks ago. And we really look at planning on opening the top on this at ENGAGE. We want to really create a nice curated experience for all of our customers and do that in a very methodical yet expanded way. So I do expect over Q3 for that number to expand to many thousands of customers who are using this.

是的。我認為人們真正渴望接受如何將人工智能應用到他們已經理解的系統中的教育。我認為讓某人接受一個新概念的最好方法是將其註入到他們已經使用過的東西中，而不是試圖以某種[股骨]的方式讓他們接受一個全新的概念。所以利率非常高。我們已經控制了這個的發布。我們四六週前就開始了。我們確實正在考慮在 ENGAGE 上打開這個頂部的計劃。我們希望真正為所有客戶創造良好的策劃體驗，並以一種非常有條理但擴展的方式做到這一點。因此，我確實預計第三季度該數字將擴大到使用此服務的數千名客戶。

The things we've heard so far are validating, people are saying that they are seeing a dramatic reduction in cost to doing things like building visualizations with dashboard widgets, which is our AI Insights product.

到目前為止，我們聽到的消息正在得到驗證，人們說他們看到使用儀表板小部件（我們的 AI Insights 產品）構建可視化等操作的成本大幅降低。

And we've started to now also show some of our customers what we're doing on those other premium AI features around formula building and content generation. The thing I love about these areas is that they have extraordinarily high foot traffic in our products today. Nearly half of our inquiries on our community and our support dimensions are in the context of computation and logic they're trying to build into these workflows, and that's exactly what this addresses.

我們現在也開始向一些客戶展示我們在圍繞公式構建和內容生成的其他高級人工智能功能方面所做的工作。我喜歡這些區域的一點是，它們今天購買我們產品的人流量非常高。我們對社區和支持維度的詢問中有近一半是在他們試圖構建到這些工作流程中的計算和邏輯的背景下，而這正是本文要解決的問題。

So I think the relevance of this applied AI that we're introducing is extraordinarily high. I think one of the reasons why ENGAGE sold out a month before showtime is because people are really interested in some of these things. So we'll have a lot more to report out on this at the end of Q3 once we get thousands of customers through the chute on this. I'm expecting quite favorable things.

所以我認為我們引入的這種應用人工智能的相關性非常高。我認為《ENGAGE》在上映前一個月就售罄的原因之一是因為人們對其中一些東西真的很感興趣。因此，一旦我們獲得了數千名客戶的支持，我們將在第三季度末對此進行更多報告。我期待著非常有利的事情。

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

你的下一個問題來自傑克·羅伯格和威廉·布萊爾的對話。

Can you just talk a little bit more about the retention expansion dynamics this year and what's happening at renewal time just given the macro? It seems like gross retention is pretty steady. But when customers are expanding, where are they expanding most? Is that more on the advanced capabilities front or new products like Brandfolder and Outfit starting to layer in more meaningfully. Just given you called out that 7-figure deal on Brandfolder, it would be great to get that commentary.

您能否多談談今年的保留擴張動態以及在宏觀情況下續訂時發生的情況？總保留率似乎相當穩定。但當客戶擴張時，他們在哪裡擴張最多呢？是更多地在先進功能方面，還是像 Brandfolder 和 Outfit 這樣的新產品開始更有意義地分層。剛剛您在 Brandfolder 上宣布了 7 位數的交易，如果能得到這樣的評論就太好了。

Yes. I think, Jake, what we're seeing is we're seeing expansion sort of coming across both in our seats as well as in our capabilities, a little more of a slant towards capabilities because in solutions selling, people need a lot of the capabilities tied to the seat. So you're seeing a little bit more of that. And in general, the dynamic we've had is our expansion rate is the one that fluctuates. Our gross churn has remained fairly steady at 4%. And this expansion is the piece that comes with the sort of macroeconomic forces that come into play. Now we're balancing that with some of these self-discovery of features that we're rolling out in the back half of the year, which I'm pretty excited about.

是的。我認為，傑克，我們所看到的是，我們看到我們的席位和我們的能力都在擴張，更多地傾向於能力，因為在解決方案銷售中，人們需要很多與座位相關的功能。所以你會看到更多這樣的情況。總的來說，我們的擴張速度是波動的。我們的總流失率相當穩定地保持在 4%。這種擴張是宏觀經濟力量發揮作用的結果。現在，我們正在平衡這一點與我們將在今年下半年推出的一些自我發現功能，對此我感到非常興奮。

Okay. Great. And then helpful commentary on just AI monetization, how that's going to track with enterprise skew upsells and free to paid conversions. Will you start monetizing that right after ENGAGE? So could we see some incremental benefits in Q4 and maybe Q1 of next year? And then, Pete, is there anything we should keep in mind on the expense side of the house as it relates to AI?

好的。偉大的。然後對人工智能貨幣化、如何跟踪企業傾斜追加銷售以及免費到付費轉化進行有用的評論。參與後您會立即開始獲利嗎？那麼我們能否在第四季度甚至明年第一季度看到一些增量收益？然後，Pete，在與人工智能相關的費用方面，我們應該記住什麼？

Yes. Jake, we have not yet set the time or the date for the GA of those features. It's all about enabling customers right now. What we will -- what we are giving our customers clarity on is at what plan level that will be available for them post GA. So we have not baked that into our second half numbers at this time. But again, working very hard to make sure it's positioned well for this upcoming year.

是的。傑克，我們還沒有確定這些功能正式發布的時間或日期。現在一切都是為了幫助客戶。我們將向客戶明確說明的是，在正式發布後他們可以使用什麼計劃級別。所以我們目前還沒有將其納入下半年的數據中。但同樣，我們非常努力地工作，以確保它在即將到來的一年中處於良好的位置。

And to the second part of your question in terms of what have we baked into the plan, there's no dollars of revenue baked in for AI in the back half that I guided to. But what I would tell you is we've assumed some costs hitting us as customers in beta and other forms start to try out the product. It's very small.

至於你問題的第二部分，即我們在計劃中融入了什麼，我指導的後半部分沒有為人工智能帶來任何收入。但我要告訴你的是，當測試版和其他形式的客戶開始嘗試該產品時，我們已經假設了一些成本會打擊我們。它非常小。

Your next question comes from the line of John DiFucci with Guggenheim Securities.

您的下一個問題來自古根海姆證券公司的約翰·迪福奇。

This is Tamjid Chowdhury on for John DiFucci. My first question, again, like on the billings growth, it's good to see that you maintained the guidance there. Can you maybe talk about like what kind of visibility you have into the second half of the year? If you can maybe talk about renewals, expansion renewals, that would be super helpful.

我是塔姆吉德·喬杜里 (Tamjid Chowdhury)，替約翰·迪福奇 (John DiFucci) 發言。我的第一個問題，就像比林斯增長一樣，很高興看到您維持了那裡的指導。您能否談談下半年的前景如何？如果你可以談論續訂、擴展續訂，那將會非常有幫助。

Yes. So when you start to think about some of the indicators we've used to give us that confidence, start with how we closed Q2. We closed Q2 I thought fairly well with improved execution from our field team. That was part 1 of it. But what we also saw on top of that was the pipeline entering Q3 was healthy. And when you couple both those elements with the fact that our close rate on pipeline we entered the quarter with is strong and maintaining strength. That's what gave us the confidence in the back half guide on billings.

是的。因此，當您開始思考我們用來給我們帶來信心的一些指標時，請從我們如何結束第二季度開始。我認為我們第二季度的業績相當好，因為我們的現場團隊的執行力有所提高。這是其中的第 1 部分。但除此之外我們還看到進入第三季度的管道狀況良好。當你將這兩個因素與我們進入本季度的管道接近率強勁並保持強勁這一事實結合起來時。這就是讓我們對後半部分比林斯指南充滿信心的原因。

Awesome. Super helpful. And then, Mark, you mentioned about self-discovery starting off with Data Shuttle and Dynamic View. What prompted that? And sort of like what are you trying to achieve from it? And any kind of early feedback, that would be super interesting.

驚人的。超級有幫助。然後，馬克，您提到了從 Data Shuttle 和 Dynamic View 開始的自我發現。是什麼促使了這一點？有點像你想從中實現什麼？任何類型的早期反饋都會非常有趣。

Yes, I think it's all about putting customers in a position to be able to act quickly. One of the wonderful comments from a customer who saw Data Shuttle through self-discovery called out her customer success manager, and she said, "Thank you so much for releasing this new feature." The feature has been there a long time, but now it's fully visible to that person, and she was able to start benefiting from it. So the purpose is how do you reduce friction and make your median customer available of all of your strengths that you can bring to bear. And if you gate that behind a discussion with the sales rep, it slows you down. So what you'll see at ENGAGE in addition to these 2 features that we've put in self-discovery now is a real push to unify our experiences and to make those available to as many people as possible.

是的，我認為這一切都是為了讓客戶能夠快速採取行動。一位通過自我發現看到 Data Shuttle 的客戶的精彩評論之一是她的客戶成功經理，她說：“非常感謝您發布這項新功能。”該功能已經存在很長時間了，但現在該人完全可以看到它，並且她能夠開始從中受益。因此，目的是如何減少摩擦並讓中型客戶充分利用您可以發揮的所有優勢。如果你把這個問題放在與銷售代表討論的後面，它會減慢你的速度。因此，除了我們現在在自我發現中引入的這兩項功能之外，您還將在 ENGAGE 上看到我們真正推動統一我們的體驗，並將這些體驗提供給盡可能多的人。

And when we think about serving all the companies we have, the customers we have in the U.S., we're very U.S.-centric today. So when you're solving and serving Asia Pacific, Japan, EMEA, the more you can put in front of somebody where it's not dependent on human interaction, the better. So that is the whole thrust behind the self-discovery piece. And again, we're -- it's in front of thousands of companies now. It will be in front of tens of thousands of companies by end of September. And I would expect that to start driving lead growth. And again, as Pete and I plan for second half, we have not baked this into our numbers yet. So neither gen AI nor self-discovery have been factored at this time.

當我們考慮為我們在美國擁有的所有公司和客戶提供服務時，我們今天非常以美國為中心。因此，當您解決亞太地區、日本、歐洲、中東和非洲地區的問題並為其提供服務時，您可以向某人提供的不依賴於人際互動的信息越多越好。這就是自我發現作品背後的全部主旨。再說一遍，我們現在已經將它擺在了數千家公司面前。到九月底，它將呈現在數以萬計的公司面前。我預計這將開始推動潛在客戶的增長。再說一遍，正如皮特和我計劃的下半年一樣，我們還沒有將其納入我們的數據中。因此，此時無論是人工智能還是自我發現都沒有被考慮在內。

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

您的下一個問題來自 Pinjalim Bora 與摩根大通的聯繫。

Congrats on the quarter. Pete, I want to go back to the billings guide a bit. Obviously, you had a good ARR quarter. Seems like billings was healthy. You beat your guide, but you kind of kept the full year. I mean we appreciate it, I guess, given the macro and conservatism in that front. But is that it? Is that just a prudent conservatism that we should read into the guide? Or was there any kind of pull forward in the first half versus the second half? Like -- or is there any risk that you see in the second half for some of the renewals that you have coming?

恭喜本季度。皮特，我想回顧一下比林斯指南。顯然，您季度的 ARR 表現不錯。看起來比林斯很健康。你打敗了你的嚮導，但你保住了一整年。我想，考慮到這方面的宏觀和保守主義，我們對此表示讚賞。但就是這樣嗎？這是否只是我們應該在指南中解讀的謹慎保守主義？或者說上半場與下半場相比有什麼拉動嗎？比如，或者您在下半年看到的一些續約是否存在任何風險？

So Pinjalim, what I would tell you is there's no pull forward in the business that we reported for Q2. What I would tell you is at the start of the year when Mark and I set out the guide for billings, we looked at the macro view of it. There's a lot of things that happened within quarter. We got some feedback on that in Q1. We've got a different set of feedback in Q2. But looking at the puts and takes in a composite, we feel good about maintaining the guide at a 20% billings growth.

Pinjalim，我要告訴你的是，我們報告的第二季度業務沒有任何進展。我要告訴你的是，在今年年初，當馬克和我制定了賬單指南時，我們研究了它的宏觀觀點。一個季度內發生了很多事情。我們在第一季度收到了一些反饋。我們在第二季度收到了一組不同的反饋。但從綜合來看，我們對維持 20% 的比林斯增長指導感到滿意。

Okay. Got it. And Mark, obviously, you have a lot of AI features coming out, and you'll hear more about it. But I wanted to ask you about this large base of free collaborators that you have. I'm wondering as you roll out these AI features and start monetizing them, do you see kind of a big opportunity to accelerate that free to paid conversion as you have kind of a second trigger point now with AI?

好的。知道了。馬克，顯然，您有很多人工智能功能即將推出，您會聽到更多相關信息。但我想問一下你們擁有的龐大的免費合作者群體的情況。我想知道，當您推出這些人工智能功能並開始將其貨幣化時，您是否看到了加速免費向付費轉化的巨大機會，因為您現在有了人工智能的第二個觸發點？

I do. I think the more value you present to somebody, the more opportunity you have for them to convert to a paid customer. For many, many years, this notion of a paid license in Smartsheet was predicated on someone's right to create an asset, a sheet, a dashboard, a report, et cetera. We're now over the next -- in the coming quarters, introducing capabilities that are incremental to what you've been able to do that will be reserved for paid license users. So we're giving people more opportunity to have a reason to subscribe. And when I think about how these Smartsheet deployments are instantiated, you have people who create assets who share them with others, and then you have many analysts who work with that data.

我願意。我認為你向某人提供的價值越多，他們轉化為付費客戶的機會就越多。多年來，Smartsheet 中付費許可證的概念是基於某人創建資產、工作表、儀表板、報告等的權利。我們現在將在接下來的幾個季度中引入一些功能，這些功能是您已經能夠做的事情的增量功能，這些功能將保留給付費許可證用戶。因此，我們為人們提供了更多有理由訂閱的機會。當我考慮如何實例化這些 Smartsheet 部署時，有人創建資產並與其他人共享這些資產，然後有許多分析師處理這些數據。

And I think the gen AI work is quite interesting because it really enables those people who are manipulating today, trying to get insights from the data, giving them a mechanism to do their work faster and more cheaply. And I think when you have that dynamic, I would say the ability to argue for a license is quite compelling. I mean in the grand scheme of the total cost of an employee, the gen AI license cost or the license is quite trivial. So I really love the fact that we're moving away from this notion of only creators need licenses to if you really want to be effective in the most high-impact way, you should also get a license. And I think that will bode really well. We have a huge population measured in millions of people who are actively engaged, who do not pay us today, and we're giving them reasons to subscribe.

我認為新一代人工智能的工作非常有趣，因為它確實使那些今天正在操縱的人能夠嘗試從數據中獲取見解，為他們提供一種更快、更便宜地完成工作的機制。我認為當你有這種動力時，我想說爭取許可的能力是相當引人注目的。我的意思是，在員工總成本的宏偉計劃中，一代人工智能許可證成本或許可證是相當微不足道的。因此，我真的很喜歡這樣一個事實：我們正在擺脫只有創作者才需要許可證的概念，如果您真的想以最具影響力的方式發揮作用，您也應該獲得許可證。我認為這將是一個好兆頭。我們有數以百萬計的積極參與的人，他們今天不向我們付費，我們給他們訂閱的理由。

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 Bruck on for Alex Zukin. Congrats on the quarter. I just -- I appreciate the color around the ARR exit rate. I'm just curious if this is also how you think about where ARR trends potentially troughing, if it's kind of bottoming as you called out some stabilization you saw in enterprise in the quarter.

我是伊森·布魯克 (Ethan Bruck) 替補亞歷克斯·祖金 (Alex Zukin)。恭喜本季度。我只是——我欣賞 ARR 退出率周圍的顏色。我只是很好奇，這是否也是您對 ARR 趨勢可能觸底的看法，是否是某種觸底，正如您指出本季度企業中看到的一些穩定情況。

Ethan, I think when you think of what our future outlook on NDRR is, it really comes down to sort of what is our future projection on growth. That's something that we have to play out essentially this year. We have to see the impact of the actions Mark talked about in terms of AI, self-discovery, and that's really going to determine in a lot of ways where the NDRR goes. So it's a little premature to sort of call that at this point.

Ethan，我認為，當您思考我們對 NDRR 的未來展望時，實際上可以歸結為我們對未來增長的預測。這是我們今年必須要做的事情。我們必須看到馬克在人工智能、自我發現方面談到的行動的影響，這確實會在很多方面決定 NDRR 的走向。所以現在這樣稱呼還為時過早。

Okay. I got it. That's helpful. And just kind of a follow-up there. The monetization strategy and the timing around the gen AI features was very clear. I was just curious, when do you expect that to start becoming an impact on net retention as customers kind of stay more on the platform and just also as well on growth retention, which is still holding very strong.

好的。我得到了它。這很有幫助。這只是一種後續行動。圍繞第一代人工智能功能的貨幣化策略和時機非常明確。我只是很好奇，您預計這會在什麼時候開始對淨保留產生影響，因為客戶會更多地留在平台上，而且對增長保留也會產生影響，增長保留仍然非常強勁。

So Ethan, when you think of the net retention impact of AI features, I think it comes down to people actually getting their hands on those features, using those features in context of the work. So I think when you get more real data on what customers are doing with it, it informs the exact things you're asking about, which is what do I think about net dollar retention rate? Do I expand? Which people expand? What use cases they expand to? All of that comes about as kind of, I call it, the second order impact of them trying the product.

因此，Ethan，當你想到人工智能功能對留存率的淨影響時，我認為這取決於人們實際掌握這些功能，並在工作環境中使用這些功能。因此，我認為，當您獲得有關客戶使用它所做的事情的更多真實數據時，它會告知您所詢問的確切內容，這就是我對淨美元保留率的看法？我擴大嗎？哪些人展開？它們擴展到哪些用例？所有這些都會產生，我稱之為，他們嘗試該產品的二階影響。

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

您的下一個問題來自布倫特·希爾 (Brent Thill) 與杰弗里斯 (Jefferies) 的對話。

Mark, I'm just curious if you could characterize the selling environment. I know Q1, it was a little slow out of the gate. It seems like that snapped back in Q2. And I mean how much of this is just snap back from things that slipped from Q1 to Q2 versus a better environment, if you will?

馬克，我只是好奇你是否能描述一下銷售環境。我知道 Q1，它一開始有點慢。這似乎在第二季度又恢復了。我的意思是，如果你願意的話，其中有多少只是從第一季度滑到第二季度的事情與更好的環境相比的快速恢復？

I think the environment plays -- absolutely plays a role. But I would also say, as you go through the year, the account plans that you put in motion and started to define in the Q1 and Q2 should start to produce more fully in the second half. So I think the convenient answer is to always say, well, the macro does this, the macro does that. I think if you run your playbook well, you should see those things that you've set up in the first half start to contribute in the second. So I would say we're benefiting from right now, and we're starting to benefit in Q2 from some of that planning we had done early in the year. You start solutions selling, framing, framing the value of these things. I would expect that to continue in Q3 and Q4.

我認為環境確實發揮了作用。但我還要說，隨著您度過這一年，您在第一季度和第二季度啟動並開始定義的賬戶計劃應該在下半年開始更充分地產生。所以我認為方便的答案是總是說，宏做這個，宏做那個。我認為，如果你很好地執行你的劇本，你應該會看到你在上半場設置的那些東西在下半場開始發揮作用。所以我想說，我們現在正在受益，並且我們在第二季度開始從今年年初完成的一些計劃中受益。你開始銷售解決方案，構建這些東西的價值。我預計這種情況將在第三季度和第四季度繼續下去。

And then just a quick follow-on to that. This whole theme of consolidation. There are a lot of point solutions out there. You have COVID effectively bought one of everything. Are you now seeing any tailwind to we've got to get in this consolidation move and move everything over to Smartsheet from the 5 other tools we cobbled together during the pandemic?

然後是快速跟進。這整個主題是鞏固。有很多單點解決方案。你已經感染了新冠病毒，實際上已經買了所有東西之一。您現在是否看到了我們必須採取這一整合舉措並將所有內容從我們在大流行期間拼湊在一起的其他 5 種工具轉移到 Smartsheet 的任何推動力？

I would say consolidation, Brent, is more common if an environment has multiple substantial subscription agreements in place. Very often, I would say, our largest transactions are someone basically anchoring on us for sort of their strategy for the next X years. In the context of there being a small deployment of some other provider, that's really not the payoff. The payoff is hey, how can we save $32,000 by powering something down? It's all about how do we drive yield from a very big Smartsheet investment. There have been a few cases over the years where there's been a few hundred thousand dollar deployment of company X and us, where we've won, where it is a displacement. But I would say companies are more focused on making the decision on the platform they want to bet on and then containing the existing usage of another tool as opposed to eradicating it. The yield on eradication is just not that high. And I think a lot of people don't want to sort of unseat a division or a small team just because the payoff isn't that great. So I would say still hyper focused from our largest clients on making platform choices for future growth. And consolidation, we haven't really seen tick up that much in terms of the theme that's driving these big deals.

我想說，布倫特，如果一個環境擁有多個實質性認購協議，那麼合併就更常見。我想說，我們最大的交易常常是有人基本上以我們為基礎來製定他們未來 X 年的戰略。在其他一些提供商進行小規模部署的情況下，這實際上並不是回報。回報是嘿，我們怎樣才能通過關閉某些東西來節省 32,000 美元呢？這一切都是關於我們如何從巨大的 Smartsheet 投資中提高收益。多年來，有過一些案例，X公司和我們部署了幾十萬美元，我們贏了，但它卻被取代了。但我想說的是，公司更專注於在他們想要押注的平台上做出決定，然後遏制另一種工具的現有使用，而不是根除它。根除的成效並沒有那麼高。我認為很多人不想僅僅因為回報不是那麼好而推翻一個部門或一個小團隊。因此，我想說，我們最大的客戶仍然高度關注為未來增長做出平台選擇。至於整合，我們還沒有真正看到推動這些大交易的主題有那麼大的增長。

Just a quick follow-up for Pete. Any downsizing in the largest deployment customers that are out there? There's been some noise in the channel. I just wanted to clarify that. We've been getting many questions. Simple yes or no is fine.

只是皮特的快速跟進。最大的部署客戶是否有縮減規模？頻道裡有些雜音。我只是想澄清這一點。我們收到了很多問題。簡單的是或否就可以了。

No.

不。

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

你的下一個問題來自斯科特·伯格和李約瑟的對話。

Nice quarter. Two questions for me. Pete, I wanted to start with your comment on macro stability. I think you said there was "some" macro stability. Can you help us unpack that a little bit in terms of what you meant there, in particular?

不錯的季度。有兩個問題問我。皮特，我想首先談談您對宏觀穩定性的評論。我想你說過存在“一些”宏觀穩定性。您能幫我們稍微解釋一下您的意思嗎？

Yes. I referenced the macro stability in the context of the enterprise customers. As I said, some of this is our selling efforts getting sort of more refined in approach. And the second is, as you build out plans with customers, just the enterprise play, these things develop as customers put together plans at the start of the year and grow those through the end. So we saw that manifest itself in higher sales productivity and attainment of the enterprise team. So that's what we saw play out.

是的。我提到了企業客戶背景下的宏觀穩定性。正如我所說，部分原因是我們的銷售工作在方法上變得更加精緻。第二個是，當你與客戶一起制定計劃時，只是企業發揮作用，這些事情隨著客戶在年初制定計劃並在年底不斷發展而發展。因此，我們看到這體現在更高的銷售效率和企業團隊的成就上。這就是我們所看到的結果。

Got it. Helpful. And then, Mark, you talked about a lot of several new modules that are coming out, whether they're AI-based or other items here this fall and into next year. But how should we think about what might be the next advance or the next Data Shuttle or Control Center, something that will have a meaningful cross-sell opportunity that we can talk about maybe 12 to 24 months?

知道了。有幫助。然後，馬克，你談到了很多即將推出的新模塊，無論是基於人工智能的還是今年秋天和明年的其他項目。但是，我們應該如何考慮下一個進步或下一個數據穿梭或控制中心可能是什麼，這將有一個有意義的交叉銷售機會，我們可以在 12 到 24 個月內討論？

I think a few things we've had in the portfolio, Scott, that have not been fully presented to all of our customers will be presented to them in the coming years. So when I think about the value we delivered to certain customers with our Advance resource management, our Brandfolder experiences, you should expect those to come mainline in the coming year. So what I mean by that is the average user who are actually with Smartsheet will have a pathway to seeing what those platforms can provide and start to engage with those. And I think the largest -- one of the largest revenue opportunities for us is in getting these capabilities into more hands of our -- into the hands of more customers. Today, we are mid-single digits penetrated on our capabilities. It already produces -- contributes north of 30% of our revenue. So I think one of the fastest paths in our next $1 billion of ARR is to really proliferate this value into the base. So I think we're always tempted by the next newest thing. Gen AI is a great example of the next newest thing that we acted on, and I think it's going to bring a ton of value. But as you're doing that, don't forget about what's in the portfolio and how you maximize that. And I think that will be actually as big a chapter in our history as gen AI will be.

斯科特，我認為我們的產品組合中有一些尚未完全呈現給我們所有客戶的東西將在未來幾年呈現給他們。因此，當我想到我們通過高級資源管理和 Brandfolder 體驗為某些客戶提供的價值時，您應該期望這些將在來年成為主流。所以我的意思是，實際使用 Smartsheet 的普通用戶將有途徑了解這些平台可以提供什麼並開始參與這些平台。我認為，對我們來說最大的收入機會之一就是將這些能力交到我們更多的人手中，交到更多的客戶手中。如今，我們的能力已達到中等個位數。它已經產生了——貢獻了我們收入的 30% 以上。因此，我認為我們下一個 10 億美元 ARR 的最快途徑之一就是真正將這一價值擴散到基礎中。所以我認為我們總是被下一個最新事物所誘惑。 Gen AI 是我們採取行動的下一個最新事物的一個很好的例子，我認為它將帶來大量的價值。但當你這樣做時，不要忘記投資組合中有什麼以及如何最大化它。我認為這實際上將成為我們歷史上與人工智能一樣重要的篇章。

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

您的下一個問題來自 BMO Capital 的 Keith Bachman。

The cash flow performance looks particularly solid this quarter. So congratulations on that. I wanted to go back to the dollar-based net retention, though. You mentioned for a prior question, you didn't want to call the bottom. But what are the contributing factors taken it down from, say, 121% to, I think you said 116%,117%? I'm just surprised because a lot of the comments have been stabilization. Product portfolio is actually improving, may not contribute near term. But what are the contributing factors from there? And at least how do you want us to think about the puts and takes associated with where that may stabilize? Because it sounds like the portfolio is getting much richer, but I don't want to get too far ahead of yourself. But maybe any puts and takes we should think about and what are the contributing factors taking it down to 116%, 117%.

本季度的現金流表現看起來特別穩健。所以恭喜你。不過，我想回到以美元為基礎的淨留存率。您在之前的問題中提到，您不想打電話給底部。但是是什麼因素導致它從 121% 下降到你說的 116%、117%？我只是感到驚訝，因為很多評論已經穩定下來。產品組合實際上正在改善，但短期內可能不會做出貢獻。但其中的促成因素是什麼？至少您希望我們如何考慮與可能穩定的位置相關的看跌期權和看跌期權？因為聽起來投資組合變得更加豐富，但我不想太過超前。但也許我們應該考慮一下看跌期權和看跌期權，以及是什麼因素導致這一比例降至 116%、117%。

Keith, so when I look at your question and I break it down, I would go back and say you're going to find that there's 3 elements of it. There's gross churn, which isn't changing a lot; there's reductions, which are, I call it, picking up modestly, not a lot, but just sort of moving up with the pace of the economy were in, it all comes down to net expansions and how that's moving. So our view on net expansion is, as you look at the progression of the quarters and the play through, we're going to continue to see net expansions be pressured. Especially, I mentioned elements like transactional business that's growing, that transactional business hasn't recovered. It's still facing the pressures of the macro headwinds we've seen. So that's what's contributing to this.

Keith，所以當我看到你的問題並將其分解時，我會回過頭來說你會發現它有 3 個要素。存在嚴重的客戶流失，而且這種情況並沒有發生太大變化；有一些減少，我稱之為適度增加，不是很多，但只是隨著經濟的步伐而增加，這一切都取決於淨擴張及其進展情況。因此，我們對淨擴張的看法是，當你觀察各季度的進展和整個過程時，我們將繼續看到淨擴張面臨壓力。特別是，我提到了交易業務等正在增長的因素，但交易業務尚未恢復。它仍然面臨著我們所看到的宏觀逆風的壓力。這就是促成這一點的原因。

Okay. And anything you want us to keep in mind as we look out over the horizon? Again, it just seems, simplistically, your portfolio is getting better.

好的。當我們眺望地平線時，您希望我們記住什麼？再說一遍，簡單地說，你的投資組合似乎正在變得更好。

It is getting better. Keith, the only thing I'd say is the laws of physics apply to anything you put out there. When you think of all the things Mark mentioned, we're super excited about those. Thousands of customers who've never ever purchased the capability get to experience it. But the time it takes for them to try the capability, experience it, go through their process of how it applies to their work, all of that takes time. So I don't see that as contributing. We haven't built that into the contributions into the back half of the year. That's the wait-and-see after they've tried it.

情況正在好轉。基思，我唯一想說的是物理定律適用於你提出的任何東西。當你想到馬克提到的所有事情時，我們對此感到非常興奮。成千上萬從未購買過該功能的客戶可以體驗它。但他們需要時間來嘗試這種能力、體驗它、經歷如何將其應用到工作中的過程，所有這些都需要時間。所以我不認為這有什麼貢獻。我們還沒有將其納入下半年的貢獻中。這是他們嘗試後的觀望。

Okay. Well, let me transition to Mark for my second question, though. Particularly interested in the free to paid scenario. And is there any dimensions you could give us about what that ratio looks like? In other words, what is your installed base in total and how much of that is paid? And how should we be thinking about -- you mentioned gen AI. I agree it could be a contributing factor to maybe changing that rate to get greater conversions. But anything you want to call out and if you could give us some more specifics on what does that installed base look like today.

好的。好吧，讓我轉向馬克來回答我的第二個問題。對免費到付費的場景特別感興趣。您能否向我們提供有關該比率的任何尺寸？換句話說，您的安裝基數總共是多少？其中支付了多少費用？我們應該如何思考——你提到了人工智能。我同意這可能是改變該比率以獲得更高轉化率的一個促成因素。但您有什麼想說的嗎？您能否給我們提供一些更多具體信息，說明目前的安裝基礎是什麼樣子的。

Yes. I think what I'd be comfortable sharing is that the majority of the people who engage on the platform today are free collaborators. So those people have been invited to paid instances of Smartsheet and they are contributing. Many of them contribute, actually changing data, not just viewers, but actually participating in workflows. We see that population as the most, I guess, the deepest vein we could probably tap in getting them to flip to paid.

是的。我想我願意分享的是，今天參與該平台的大多數人都是自由合作者。因此，這些人已被邀請使用 Smartsheet 的付費實例，並且他們正在做出貢獻。他們中的許多人做出了貢獻，實際上改變了數據，不僅僅是查看者，而且實際上參與了工作流程。我認為，我們認為這一群體是我們可以利用的最深的靜脈，讓他們轉向付費。

We don't give a hard ratio. I think it is useful to see that it is the majority of people engaged in Smartsheet today. So we've run this play for, what, 18 years now, where we've had the paid creator who -- or the paid licensee who can create and everyone else is basically free participants. I think the reason we're able to make this move now is because the portfolio has just gotten to the point where so much value is available. And we've made a decision on certain things that deliver a ton of value. It just doesn't make sense to have that just freely distributed to everyone. So -- but this is really the first time we're doing it. And I think there's -- we will remain, I'd say, leading in category in terms of what those participants can do.

我們不給出硬性比率。我認為看到今天大多數人都在從事 Smartsheet 是很有用的。所以我們已經運行這個遊戲了，到現在 18 年了，我們有付費創作者，或者可以創作的付費被許可人，而其他人基本上都是免費參與者。我認為我們現在能夠採取這一舉措的原因是因為投資組合剛剛達到了有如此多價值可用的地步。我們已經對某些能夠帶來大量價值的事情做出了決定。將其免費分發給每個人是沒有意義的。所以——但這確實是我們第一次這樣做。我認為，我想說，就這些參與者的能力而言，我們將繼續保持領先地位。

But we're also -- we also very much believe that we should get paid value for the -- paid for the value we've delivered. And I would say in the next 2 quarters, we're going to learn a lot about the reaction. Your question around when shouldn't you start benefiting from that? I think we will benefit from that. But again, it comes down to timing, right? We give a guide for NDRR for end of the year. We also shared that we aren't going to be flipping GA likely in the second half of the year. So it really is an FY '25 type opportunity. And we'll articulate that as we head into next year.

但我們也——我們也非常相信，我們應該為我們所交付的價值獲得報酬。我想說在接下來的兩個季度，我們將了解很多有關反應的信息。您的問題是您什麼時候不應該開始從中受益？我認為我們將從中受益。但話又說回來，這取決於時間，對吧？我們提供了年底 NDRR 指南。我們還表示，我們不太可能在下半年更換通用航空。所以這確實是一個 25 財年類型的機會。當我們進入明年時，我們將闡明這一點。

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

你的下一個問題來自邁克爾·伯格與富國銀行的對話。

Just one quick one, philosophically on guidance. You had a very strong quarter across the board, but didn't raise billings guidance at all and only raised by the beat for the rest of the metrics. Maybe just help us understand, are you incorporating incremental conservatism just given what you're seeing in more stabilization of macro? Just would love to hear your thoughts on if there's any change in the guidance philosophy.

只是一個快速的，哲學上的指導。你們的季度表現非常強勁，但根本沒有提高比林斯指引，只是根據其餘指標的節拍而提高。也許只是幫助我們理解，鑑於您所看到的宏觀更加穩定，您是否正在納入增量保守主義？只是很想听聽您對指導理念是否有任何變化的想法。

So Michael, no change in the guidance philosophy. Obviously, given the macroeconomic forces we've seen, we've just embedded that conservatism into our thinking. Now you mentioned that we haven't raised the guide. If you think of the 2 ends of that guide, we actually raised our guide on op income quite significantly, if you notice. We beat by about $11 million this quarter, and our raise at the midpoint is about $17 million. So we're taking that approach as we think -- thought about beating the raise as we sort of progress through each quarter.

所以邁克爾的指導理念沒有改變。顯然，考慮到我們所看到的宏觀經濟力量，我們剛剛將這種保守主義融入了我們的思維中。現在你提到我們還沒有提出指南。如果您考慮該指南的兩端，如果您注意到的話，我們實際上相當顯著地提高了我們的運營收入指南。本季度我們的盈利增長了約 1100 萬美元，中間漲幅約為 1700 萬美元。因此，我們正在按照我們的想法採取這種方法——隨著我們每個季度的進展，我們都會考慮超越加薪。

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

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

First question is for you, Pete, on the improvement in the enterprise or on the macro environment. Should you -- or should we, I guess, expect that if that improvement were to continue, would that show up in a rebound maybe of net customer additions? Or would it show up more in maybe the enterprise segment NRR?

第一個問題是問你的，皮特，關於企業或宏觀環境的改善。我猜您是否應該預期，如果這種改善繼續下去，是否會出現淨客戶增加的反彈？或者它會更多地出現在企業細分市場 NRR 中嗎？

Jackson, I think that would show up more dominantly in the enterprise NDRR that we would see internally.

Jackson，我認為這將在我們內部看到的企業 NDRR 中表現得更加突出。

And then as far -- just to follow up, as far as what we could see in the public metrics, and I guess I'm really getting after the -- should we expect net additions in any of these kind of customer strata, whether it's $5,000, $50,000, $100,000 in spend to reverse and start to see some year-over-year growth in the net additions in a particular quarter?

然後，就我們在公共指標中看到的情況而言，只是跟進，我想我真的在追求——我們是否應該期望任何此類客戶階層的淨增加，無論是是否需要花費5,000 美元、50,000美元、100,000 美元來逆轉並開始看到特定季度淨增量的同比增長？

We are seeing net additions. If you think of our largest customer sizes, cohorts, $100,000, we saw 30% growth there. I think as you start to go through the build of the future quarters, I think you're going to see that progress continue because customers are going to rely more on us and come up with more projects that they give us. Mark mentioned the customers which are even larger. I think he mentioned customers who pay us more than $0.5 million. That population is going to grow as we go through the year. That's the way you'll see it. We don't report on all those metrics all the time. But as we get more data, we'll be sure to sort of think of sharing that.

我們看到淨增加。如果你考慮一下我們最大的客戶規模（100,000 美元），我們就看到了 30% 的增長。我認為，當您開始進行未來幾個季度的建設時，我認為您將看到進展繼續，因為客戶將更加依賴我們，並為我們提供更多項目。馬克提到了更大的客戶。我認為他提到了向我們支付超過 50 萬美元的客戶。隨著時間的推移，這個人口將會增長。這就是你看到的方式。我們不會一直報告所有這些指標。但隨著我們獲得更多數據，我們一定會考慮分享這些數據。

Your next question comes from the line of Jason Celino with KeyBanc.

您的下一個問題來自 Jason Celino 與 KeyBanc 的合作。

Maybe first on the high velocity side, I think you said you are still seeing some pressure there. Maybe to ask us more plainly, in the quarter compared to last quarter, did you see it get marginally better or worse? Or is it pretty much the same as last time?

也許首先在高速方面，我想你說過你仍然看到一些壓力。也許更直白地問我們，與上季度相比，本季度的情況是略有好轉還是更差？還是和上次差不多？

Just as about the same.

就跟差不多一樣。

Okay. And then last quarter, you also talked about increasing marketing efforts to offset some of the weakness you're seeing on this side -- velocity side. I'm curious how the effectiveness of these marketing efforts are going.

好的。上個季度，您還談到了加大營銷力度，以抵消您在速度方面看到的一些弱點。我很好奇這些營銷工作的效果如何。

So Jason, we didn't describe that last quarter as a -- to support the weakness. We just talked about things we're doing incrementally. So let me give you a quick status on how we've done. We're pretty pleased with the quality of the leads that have come out of the program. But given that this was focused on our largest enterprise customers and the fact that the timing is fairly recent, if you look at the conversion dynamics for these enterprise customers, we'd expect to see a small benefit this year, but a larger benefit as we go into FY '25. So that's the way this is likely to play out.

所以傑森，我們並沒有將上個季度描述為——支持疲軟。我們剛剛討論了我們正在逐步做的事情。讓我向您簡要介紹一下我們的工作情況。我們對該計劃所產生的潛在客戶的質量非常滿意。但考慮到這主要針對我們最大的企業客戶，而且這個時機是最近的，如果你看看這些企業客戶的轉換動態，我們預計今年會看到一個小小的好處，但更大的好處是我們進入25 財年。這就是事情很可能發生的方式。

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

你的下一個問題來自羅伯特·西蒙斯 (Robert Simmons) 和 D.A.戴維森。

So it sounds like enterprise maybe got a little bit better, while the [oil] and Advance business was still kind of weak. Could you also give us some color by geography and by vertical?

因此，聽起來企業可能會好一點，而[石油]和先進業務仍然有點疲軟。您還能按地理和垂直方向給我們一些顏色嗎？

Robert, so if you think about our top , what I call it, 4 verticals in bookings this quarter, they were, I think, manufacturing, health care, finance and retail. And I think that's just the size of the verticals. But if you look at the ones that got all which were strong year-on-year, I'd probably say it's consumer goods and education. You'll see those in live entertainment kind of sign of the times. And probably the ones that weren't strong relative year-on-year growth, you're looking at media and production and technology.

羅伯特，所以如果你想想我們本季度預訂量最高的 4 個垂直行業，我認為它們是製造、醫療保健、金融和零售。我認為這只是垂直方向的大小。但如果你看看那些同比表現強勁的行業，我可能會說是消費品和教育。您會在現場娛樂中看到那些屬於時代標誌的東西。也許那些相對同比增長並不強勁的領域，你正在關注媒體、製作和技術。

Got it. Got it. That makes sense, or helpful, rather. And then so you raised your income guide by more than you raised the revenue guide for the year. I guess are there specific areas that you're cutting back on or just kind of like trimming your sales a little bit? And which areas are you kind of pouring more money into?

知道了。知道了。這是有道理的，或者說是有幫助的。然後，您提高收入指南的幅度超過了當年提高收入指南的幅度。我想您是否在某些特定領域進行了削減，或者只是稍微削減了銷售額？您將在哪些領域投入更多資金？

So Robert, if you think about delta between sort of how we've increased our margin versus the actual revenue outperformance, I'd say some of the margin improvement comes from the fact that we're just flowing revenue beat straight into margin. But on top of that, what we're also doing is we're being extremely thoughtful on operating efficiency. It's when we hire, whether we replace a role or not, where we hire and looking at every nonrevenue sort of investment and scrutinizing it. Kind of the -- I was laughing to telling Mark the other day. I think that's just the role of a CFO and the finance org and what they do. So this is what I call no fault cost reduction that plays out into margins. That's what you're seeing play through.

因此，羅伯特，如果你考慮一下我們增加利潤的方式與實際收入表現之間的差異，我會說，部分利潤率的提高來自於我們只是將收入直接轉化為利潤。但最重要的是，我們還在做的是，我們對運營效率非常考慮。當我們招聘時，無論我們是否更換職位，我們都會招聘並審視每一項非收入投資並對其進行仔細審查。那天我笑著告訴馬克。我認為這就是首席財務官和財務組織的角色以及他們的工作。這就是我所說的無故障成本降低，並體現在利潤率上。這就是你所看到的情況。

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

您的下一個問題來自花旗銀行的史蒂夫·恩德斯 (Steve Enders)。

This is [George] on for Steve. Just wanted to follow up, Brandfolder. Last quarter, I think you called out some demand headwinds, but in your prepared remarks called out a pretty significant win. So just an update on the demand environment there.

這是[喬治]為史蒂夫代言的。只是想跟進，Brandfolder。上個季度，我認為您指出了一些需求阻力，但在您準備好的講話中指出了相當重大的勝利。所以只是對那裡的需求環境進行更新。

So [George], if you think of the -- we called marketing solutions and Brandfolder is the major part of it. Our quarter-on-quarter, if you looked at it, that performance improved. And we did call out a big deal, which was the largest in Brandfolder history, that we booked in Q2 as well. Brandfolder is a part of the market budget which is experiencing obviously the impacts of the macro environment, but we're learning to sort of go after that business by listening to customers and trying to fit how we've described the benefits in an ROI way. So we're seeing that pay off a little bit for us. And we're being very smart about even how we think of pricing and packaging. More of that to come when we go into the ENGAGE conference.

所以[喬治]，如果你想到我們所說的營銷解決方案，而 Brandfolder 是其中的主要部分。如果你看一下，我們的季度環比業績有所改善。我們確實宣布了一項大交易，這是 Brandfolder 歷史上最大的一筆交易，我們也在第二季度預訂了該交易。 Brandfolder 是市場預算的一部分，它顯然正在經歷宏觀環境的影響，但我們正在學習通過傾聽客戶的意見並嘗試以投資回報率的方式適應我們描述的好處來追求該業務。所以我們看到這為我們帶來了一些回報。我們甚至在定價和包裝方面也非常明智。當我們參加 ENGAGE 會議時，還會有更多內容。

Great. And then a quick follow-up. You called out some stabilization in the macro. Anything notable on the linearity through the quarter?

偉大的。然後快速跟進。您呼籲宏觀經濟保持一定程度的穩定。本季度的線性有什麼值得注意的地方嗎？

There's nothing unusual. We see our first month be the smallest and our last month is the biggest. There was nothing unusual about the linearity, if you will.

沒有什麼不尋常的。我們發現第一個月是最小的，最後一個月是最大的。如果你願意的話，線性度沒有什麼異常。

Your next question comes from the line of Ryan MacWilliams with Barclays.

您的下一個問題來自巴克萊銀行的瑞安·麥克威廉姆斯 (Ryan MacWilliams)。

This is Pete Newton on for Ryan MacWilliams. I'm pleased to see that the sequential customer adds improved across all sizes, the $5,000, $50,000. What would you say drove that step-up? And then how would you characterize those conversations with customers that you're moving from one of those positions to the higher one?

我是皮特·牛頓（Pete Newton），代表瑞安·麥克威廉姆斯（Ryan MacWilliams）發言。我很高興看到所有規模（5,000 美元、50,000 美元）的連續客戶添加量都有所提高。您認為是什麼推動了這一進步？然後，當您從這些職位之一調到更高職位時，您會如何描述與客戶的對話？

I think customers are looking for a conversation that goes beyond, do you need more seats? And when I think of what our teams are able to present to them now, it's really a portfolio of solutions. Do you want to talk about how you set yourself up for strategic transformation? Do you want to talk about how to drive efficiency into your marketing realm? Do you want to talk about how to execute modern project management and now starting to inject the gen AI pieces? So you have multiple themes that are hitting. And the way we monetize both through the licensing of seats and through these capabilities, we have more opportunities to deliver value and get paid for that. So I think the -- we're starting to -- we're continuing to see the benefits.

我認為客戶正在尋找超越“您需要更多座位嗎？”的對話。當我想到我們的團隊現在能夠向他們展示什麼時，這實際上是一個解決方案組合。您想談談您是如何為戰略轉型做好準備的嗎？您想談談如何提高營銷領域的效率嗎？您想談談如何執行現代項目管理以及現在開始注入人工智能的部分嗎？所以你有多個熱門主題。我們通過席位許可和這些功能實現貨幣化的方式，使我們有更多機會提供價值並為此獲得報酬。所以我認為——我們開始——我們將繼續看到好處。

I spoke to the progress on the Advance sales. it was great to see that people are seeing value across that entire portfolio and saying, "Hey, I'm going to step into that bundle and get the benefits from all." So I think the greater -- the degree to which we can continue to see success on the capabilities, combined with seats, I think will manifest itself in this $50,000, $100,000, $500,000 levels stepping up. Yes, I think that's probably the key driver that I would point to.

我談到了預售的進展。很高興看到人們看到整個投資組合的價值，並說：“嘿，我將加入該組合併從所有人中受益。”因此，我認為更大的——我們可以繼續看到能力與席位相結合的成功程度，我認為將體現在 50,000 美元、100,000 美元、500,000 美元的水平上。是的，我認為這可能是我要指出的關鍵驅動因素。

Perfect. That's very helpful. And then if you could comment on average deal size closed throughout the quarter, was there any differences later in the quarter versus earlier? Or any comments there?

完美的。這非常有幫助。然後，如果您可以評論整個季度完成的平均交易規模，本季度後期與早些時候相比是否有任何差異？或者有什麼意見嗎？

The average deal size -- I want to make sure I understand your question. Is it the deal size that played out as we went through the quarter? Or was it the deal size in comparison to some other period?

平均交易規模——我想確保我理解你的問題。這是我們本季度所體現的交易規模嗎？或者是與其他時期相比的交易規模？

As you trended through the quarter, just trying to get a glimpse at how that linearity looked.

當您了解本季度的趨勢時，只是想了解一下這種線性度如何。

Yes. The deal size, typically, as you would think, the larger deals booked more towards the end of the quarter. So the deal size did grow, but it grew sort of consistent with our seasonal expectations.

是的。交易規模，通常，正如您所想，較大的交易在季度末預訂的數量較多。因此，交易規模確實有所增長，但其增長與我們的季節性預期一致。

This concludes our Q&A session for today. I turn the call back to Aaron Turner.

我們今天的問答環節到此結束。我把電話轉回亞倫·特納。

All right. Great. Thank you for joining us this quarter, and we'll speak to you again soon.

好的。偉大的。感謝您本季度加入我們，我們很快會再次與您聯繫。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連接。