Smartsheet Inc (SMAR) 2024 Q3 法說會逐字稿

Good day, and welcome to the Smartsheet Third Quarter Fiscal 2024 Earnings Call. Today's call is being recorded.

大家好，歡迎參加 Smartsheet 2024 財年第三季財報電話會議。今天的電話會議正在錄音中。

And I would now like to turn the conference over to Aaron Turner, Head of Investor Relations. Please go ahead.

現在我想把會議交給投資人關係主管Aaron Turner。請開始。

Thank you, Lisa. Good afternoon, and welcome, everyone, to Smartsheet's Third Quarter Fiscal Year 2024 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.

謝謝麗莎。下午好，歡迎大家參加Smartsheet 2024財年第三季財報電話會議。我們將討論今天收盤後發布的新聞稿中公佈的業績。今天與我一起參加電話會議的有Smartsheet執行長馬克·馬德爾（Mark Mader）和財務長皮特·戈博爾（Pete Godbole）。今天的電話會議將進行網路直播，您也可以在我們的投資者關係網站investors.smartsheet.com上觀看重播。皮特的發言稿附有幻燈片，您可以在我們投資者關係網站的「活動」欄位中查看。

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 that the expectations reflected in the forward-looking statements are reasonable, our actual results may differ materially or adversely -- and/or adversely.

在本次電話會議中，我們將根據聯邦證券法做出前瞻性陳述。這些前瞻性陳述主要基於我們目前對未來事件及財務趨勢的預期與預測。這些前瞻性陳述受多種風險和其他因素的影響，包括但不限於我們提交給美國證券交易委員會（SEC）的文件中所述的風險和其他因素，這些文件可在我們投資者關係網站和SEC網站www.sec.gov上查閱。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與預期有重大差異或出現不利結果—和/或出現不利結果。

All forward-looking statements made during this call are based on information available to us as of today, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law. In addition to the U.S. GAAP financials, we will discuss certain non-GAAP financial measures. A reconciliation of 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.

本次電話會議中所做的所有前瞻性陳述均基於我們截至今日所掌握的信息，除法律要求外，我們不承擔因新資訊或未來事件而更新這些陳述的任何義務。除美國公認會計準則 (GAAP) 財務資料外，我們還將討論某些非公認會計準則 (non-GAAP) 財務指標。最直接可比較的美國公認會計準則 (GAAP) 指標的對帳表可在本次電話會議隨附的簡報中找到，該簡報也可在我們的投資者關係網站上找到。

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

現在，讓我把電話轉給馬克。

Thank you, Aaron, and good afternoon, everyone. Welcome to our third quarter earnings call for fiscal year 2024. Smartsheet revenue for the quarter exceeded our guidance and grew by 23% year-over-year to $246 million, and billings grew 22% year-over-year to $268.5 million. In Q3, we generated non-GAAP operating margins of 8%, and free cash flow was $11.4 million. We ended the quarter with annual recurring revenue of $981 million and more than 13.9 million Smartsheet users.

謝謝Aaron，大家下午好！歡迎參加我們2024財年第三季財報電話會議。 Smartsheet本季營收超出預期，年增23%，達2.46億美元；帳單營收年增22%，達2.685億美元。第三季度，我們的非公認會計準則營業利潤率為8%，自由現金流為1,140萬美元。截至本季末，我們的年度經常性收入為9.81億美元，Smartsheet用戶超過1,390萬人。

In Q3, 89 customers expanded their Smartsheet ARR by more than $100,000 and 256 companies expanded by over $50,000. Additionally, we now have 59 customers with ARR over $1 million, up from 40 a year ago.

第三季度，89家客戶​​的Smartsheet ARR成長超過10萬美元，256家公司成長超過5萬美元。此外，我們目前有59家客戶的ARR超過100萬美元，而去年同期只有40家。

Our strength in the enterprise continued in Q3 with expansions at companies such as Cushman & Wakefield, Cintas Corporation, biotech company, BeiGene, and CommVault Systems, among others. Q3 was also a strong quarter for our suite of capabilities-based products. Similar to last quarter, capabilities were present in each of our top 10 expansions. Smartsheet Advance, which is our bundle of our capabilities, was included in 250 of our expansions in Q3. Advance played a key role in a multiyear, multimillion-dollar deal with a Fortune 500 specialty beverage company. Their expansion to Smartsheet Advance Gold will help support the company as it executes high-impact projects, including new product rollouts and associated equipment deployments, network upgrades as well as new store openings and store improvements.

我們在企業領域的強勢在第三季得以延續，我們在高緯環球、辛塔斯集團、生物科技公司百濟神州和康寶系統等公司均進行了業務拓展。第三季度，我們基於能力的產品套件也表現強勁。與上一季類似，我們前十大擴展產品中均包含這些能力。 Smartsheet Advance 是我們的能力組合，在第三季被納入了 250 項擴展產品。 Advance 在與財富 500 強特種飲料公司達成的多年期數百萬美元交易中發揮了關鍵作用。 Smartsheet Advance Gold 的擴展將有助於支持該公司執行高影響力項目，包括新產品發布和相關設備部署、網路升級以及新店開業和門市改進。

In Q3, we also saw a significant expansion that included an upgrade to Advance Platinum at a major airline. For a number of years, Smartsheet has powered aspects of the carrier's flight ops, flight products and tech ops units. Due to growing demand for Smartsheet from other departments, they decided to upgrade to Smartsheet Advance. By implementing the platinum tier of Smartsheet Advance, they were able to consolidate their licenses and bring them all under IT's purview to give these divisions access to all of our capabilities such as Control Center, Dynamic View and Bridge.

第三季度，我們也見證了一項重大擴展，其中包括一家大型航空公司升級到Advance Platinum。多年來，Smartsheet一直為該航空公司的飛行營運、飛行產品和技術營運部門提供支援。由於其他部門對Smartsheet的需求不斷增長，他們決定升級到Smartsheet Advance。透過實施Smartsheet Advance的白金級，他們能夠整合其許可證，並將其全部納入IT部門的監管範圍，使這些部門能夠存取我們的所有功能，例如控制中心、動態視圖和Bridge。

This consolidation means that the airline has an opportunity to increase visibility into its IT spend and empower Smartsheet users as it brings greater efficiency to critical activities like resource management, maintenance and scheduling. And that resulted in a 3-year commitment with a total contract value of $4.5 million and an opportunity to further scale Smartsheet across the organization.

整合意味著該航空公司有機會提高其IT支出的透明度，並賦能Smartsheet用戶，因為它能夠提高資源管理、維護和調度等關鍵活動的效率。最終，該航空公司簽訂了一份為期三年、總價值450萬美元的合同，並有機會在整個組織範圍內進一步推廣Smartsheet。

The ability to rapidly scale was also key to an $850,000 deal at one of the country's largest quick service restaurant brands. The company is in the process of a multiyear transformation initiative and selected Smartsheet Control Center and Resource Management to help drive its global digital transformation and implement portfolio reporting on day-to-day and annual operating plan projects for the senior executive team. By using Smartsheet, the company has been able to enhance and simplify collaboration across over 30,000 locations, and in doing so, rendered a number of other applications obsolete.

快速擴展的能力也是該公司與美國最大的快餐品牌之一達成 85 萬美元交易的關鍵。該公司正在進行一項為期多年的轉型計劃，並選擇了 Smartsheet 控制中心和資源管理軟體來推動其全球數位轉型，並為高級管理團隊提供日常和年度營運計劃項目的投資組合報告。透過使用 Smartsheet，該公司能夠增強和簡化 3 萬多家門市的協作，並因此淘汰了許多其他應用程式。

Another customer example relating to scale is the significant expansion at a global media and entertainment organization that was looking to streamline its tech stack. The company was already using Control Center to manage 14,000 projects and 12,000 workflows in Bridge to track and manage their portfolio of projects. Because that work went across its retail, events, theme parks and publishing divisions, Smartsheet was well positioned to win this consolidation. Going forward, the company will extend its use of Smartsheet to other initiatives such as improved speed to market for technology projects, efficient headcount management, cost controls and profit improvement initiatives. This expansion brought the company's ARR to over $4 million.

另一個與規模相關的客戶案例是全球媒體和娛樂機構的大規模擴張，該機構希望精簡其技術堆疊。該公司先前已使用 Control Center 管理 14,000 個項目，並使用 Bridge 中的 12,000 個工作流程來追蹤和管理其項目組合。由於這些工作涉及零售、活動策劃、主題樂園和出版部門，Smartsheet 佔據了有利地位，預計將在此次整合中獲勝。未來，該公司將把 Smartsheet 的應用擴展到其他項目，例如加快技術項目的上市速度、高效的員工管理、成本控制和利潤提升計劃。此次擴張使該公司的年度經常性收入 (ARR) 超過 400 萬美元。

On the product front, in Q3, we introduced a new way for our customers to discover and use 2 of our premium capabilities without the need to first contact a Smartsheet rep or partner. We believe empowering frictionless self-discovery of high-value Smartsheet capabilities will drive greater adoption of these premium offerings, and early results have been promising with hundreds of trials started with just within the first few months.

在產品方面，我們在第三季推出了一種新的方式，讓客戶無需事先聯繫 Smartsheet 銷售代表或合作夥伴即可發現和使用我們的兩個進階功能。我們相信，讓客戶能夠輕鬆自主發現 Smartsheet 的高價值功能，將推動這些高級產品的普及。初期效果令人欣喜，僅在幾個月內就已開展了數百次試用。

One of those trials occurred at a mid-cap biotech company and directly led to the purchase of Data Shuttle to migrate significant amounts of data into Smartsheet from legacy clinical storage systems. While the company has been a customer for years, it had never utilized our premium capability. Once discovering Data Shuttle, the company's clinical trial team launched automated workflows to import data they use to track the progress of its research on cancer and rare disease therapies.

其中一項試驗發生在一家中型生技公司，並直接促成了該公司購買 Data Shuttle，將大量資料從傳統臨床儲存系統遷移到 Smartsheet。雖然該公司多年來一直是我們的客戶，但從未使用過我們的高級功能。在發現 Data Shuttle 後，該公司的臨床試驗團隊啟動了自動化工作流程，以匯入用於追蹤癌症和罕見疾病療法研究進展的數據。

They found that it had a positive impact by allowing them to centralize view and manage data from these disparate sources, and their success with Data Shuttle has now led to interest in other premium capabilities. Over 40% of these deals in Q3 that were closed as a result of capability self-discovery were with customers buying a premium capability for the first time.

他們發現，Data Shuttle 帶來了正面的影響，使他們能夠集中查看和管理來自不同來源的資料。 Data Shuttle 的成功也激發了他們對其他高階功能的興趣。第三季度，透過自行探索功能而達成的交易中，超過 40% 是首次購買高級功能的客戶。

We continue to make strides integrating AI across the Smartsheet platform. We now have approximately 50,000 enterprise users in early access to AI-powered skills that allow users to generate formulas and content directly in their sheets. Both these skills will be generally available later this quarter to enterprise customers. The feedback from early access users confirms that our AI features will help power enterprise processes and make it simple for any user to gain insight into the work being done across teams. These AI skills are helping customers achieve their desired outcomes even more rapidly with the Smartsheet platform. Additionally, AI-powered skills will roll out to eligible early adopters next month.

我們持續推進在 Smartsheet 平台上整合 AI 技術。目前，約有 5 萬名企業用戶正在搶先體驗 AI 技能，這些技能允許用戶直接在工作表中產生公式和內容。這兩項技能將於本季稍後正式向企業客戶開放。搶先體驗使用者的回饋證實，我們的 AI 功能將有助於賦能企業流程，並使任何使用者都能輕鬆洞察跨團隊的工作進度。這些 AI 技能正在幫助客戶透過 Smartsheet 平台更快地實現預期成果。此外，AI 技能將於下個月向符合條件的搶先體驗用戶推出。

We continue to invest internationally in response to increasing global demand. To support data residency requirement for our international customers, we launched a Smartsheet platform instance in Germany in 2021, and we will launch an instance in Australia next year. This new Smartsheet region will enable Australian customers to comply with important data residency requirements and offer them the flexibility to choose where they want their content to be hosted. We will be pursuing IRAP certification, ensuring that it will have the right policies and security controls to meet Australian government information security requirements. This enables Smartsheet to serve a growing regional customer base, including organizations and agencies with the most demanding governance and regulatory requirements.

為了滿足日益增長的全球需求，我們持續在國際上進行投資。為了滿足國際客戶的資料駐留要求，我們於2021年在德國推出了Smartsheet平台實例，並將於明年在澳洲推出實例。新的Smartsheet區域將使澳洲客戶能夠遵守重要的資料駐留要求，並讓他們能夠靈活地選擇內容託管位置。我們將爭取IRAP認證，確保其擁有符合澳洲政府資訊安全要求的正確策略和安全控制措施。這使Smartsheet能夠服務於不斷成長的區域客戶群，包括治理和監管要求最嚴格的組織和機構。

Q3 was also a productive quarter for our federal government business in the U.S. reaching some notable milestones. We signed a 6-figure expansion at a large government agency, which brought its ARR up to $1.6 million. This agency uses Smartsheet for critical workflows from purchase management to managing grant funding to using Control Center to manage travel budgets and expense management across its multiple regional offices. Additionally, we now have a presence in all 15 U.S. cabinet-level departments and have 2 government agencies with ARR over $1 million.

第三季度，我們在美國聯邦政府業務也取得了豐碩成果，並取得了一些顯著的里程碑。我們與一家大型政府機構簽署了一份六位數的擴展合同，使其年度經常性收入 (ARR) 達到 160 萬美元。該機構使用 Smartsheet 執行關鍵工作流程，從採購管理到撥款管理，再到使用 Control Center 管理其多個地區辦事處的差旅預算和費用管理。此外，我們目前已涵蓋美國所有 15 個內閣級部門，其中兩個政府機構的年度經常性收入 (ARR) 超過 100 萬美元。

In closing, as we approach crossing the $1 billion ARR milestone this quarter, we remain focused on both product innovation and customer value by continuing to execute as the user-preferred enterprise work management leader.

最後，隨著我們本季即將突破 10 億美元的 ARR 里程碑，我們將繼續專注於產品創新和客戶價值，並繼續作為用戶首選的企業工作管理領導者。

Now let me turn the call over to Pete.

現在讓我把電話轉給皮特。

Thank you, Mark. We outperformed all aspects of our guidance in Q3. Similar to previous quarters, our enterprise business continues to perform well, which is reflected in the growth of our higher ARR customer cohort tiers and volume of large deals. We continue to see macro-related pressure on our higher velocity transactions and on our SMB customer segments. Given these pressures, we are maintaining our prudent approach to our Q4 and full year guidance.

謝謝，馬克。我們在第三季的各項表現均超乎預期。與前幾季類似，我們的企業業務持續表現良好，這體現在我們更高年化經常性收入 (ARR) 客戶群層級的成長和大額交易量的成長。我們持續看到宏觀經濟因素對高週轉率交易和中小企業客戶群的壓力。鑑於這些壓力，我們對第四季和全年業績預期保持審慎的態度。

I will now go through our financial results for the third 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.

現在我將介紹我們第三季的財務表現。除非另有說明，所有涉及我們費用和營運績效的引用均基於非公認會計準則 (GAAP)，並與電話會議前發布的收益報告和簡報中的 GAAP 業績進行核對。

Third quarter revenue came in at $245.9 million, up 23% year-over-year. Subscription revenue was $232.5 million, representing year-over-year growth of 25%. Services revenue was $13.4 million. Revenue from capabilities made up 33% of subscription revenue.

第三季營收為2.459億美元，年增23%。訂閱收入為2.325億美元，年增25%。服務收入為1340萬美元。功能收入佔訂閱收入的33%。

Turning to billings. Third quarter billings came in at $268.5 million, representing year-over-year growth of 22%. Approximately 94% of our subscription billings were annual with about 3% monthly. Quarterly and semiannual represented approximately 3% of the total.

談到賬單。第三季帳單總額為2.685億美元，年增22%。我們約94%的訂閱帳單為年度帳單，約3%為月度帳單。季度和半年帳單約佔總額的3%。

Moving on to our reported metrics. The number of customers with ACV over $50,000 grew 26% year-over-year to 3,719. And the number of customers with ACV over $100,000 grew 32% year-over-year to 1,779. These customer segments now represent 65% and 51%, respectively, of total ARR. The percentage of our ARR coming from customers with ACV over $5,000 is at 91%.

接下來看看我們報告的指標。 ACV 超過 5 萬美元的客戶數量年增 26%，達到 3,719 人。 ACV 超過 10 萬美元的客戶數量年增 32%，達到 1,779 人。這兩個客戶群目前分別佔 ARR 總額的 65% 和 51%。來自 ACV 超過 5,000 美元的客戶佔 ARR 總額的 91%。

Next, our domain average ACV grew 16% year-over-year to $9,225. We ended the quarter with a dollar-based net retention rate, inclusive of all our customers, of 118%. The full churn rate was 4%. We expect to exit FY '24 with a dollar-based net retention rate of around 116%.

其次，我們的網域平均ACV年增16%，達到9,225美元。本季末，我們以美元為基礎的淨留存率（包含所有客戶）達到118%。總客戶流失率為4%。我們預計24財年結束時，基於美元的淨留存率將達到116%左右。

Now turning back to the financials. Our total gross margin was 84%. Our Q3 subscription gross margin was 87%. We expect our gross margin for FY '24 to remain at or above 83%. Overall, operating income in the quarter was $19.4 million or 8% of revenue. Free cash flow in the quarter was $11.4 million.

現在回到財務方面。我們的總毛利率為84%。第三季訂閱毛利率為87%。我們預計24財年的毛利率將維持在83%或以上。本季整體營業利潤為1,940萬美元，佔營收的8%。本季自由現金流為1140萬美元。

Now let me move on to guidance. For the fourth quarter of FY '24, we expect revenue to be in the range of $254 million to $256 million and non-GAAP operating income to be in the range of $21 million to $23 million. We expect non-GAAP net income per share to be $0.17 to $0.19 based on diluted weighted average shares outstanding of 140 million.

現在讓我來談談業績指引。對於2024財年第四季度，我們預計營收將在2.54億美元至2.56億美元之間，非公認會計準則（Non-GAAP）營業利潤將在2,100萬美元至2,300萬美元之間。基於1.4億股稀釋加權平均流通股，我們預期非公認會計準則每股淨利潤將介於0.17美元至0.19美元之間。

For the full fiscal year '24, we now expect revenue of $955 million to $957 million, representing growth of 25%. We expect services to be 6% of total revenue. We expect our non-GAAP operating income to be in the range of $82 million to $84 million, representing an operating margin of 9%, and non-GAAP net income per share to be $0.68 to $0.69 for the year based on 138 million diluted weighted average shares outstanding.

就24財年全年而言，我們目前預計營收將達到9.55億美元至9.57億美元，增幅達25%。我們預計服務收入將佔總收入的6%。我們預期非公認會計準則下的營業利潤將在8,200萬美元至8,400萬美元之間，營業利益率為9%。基於1.38億股稀釋加權平均流通股，非公認會計準則下的每股淨利將在0.68美元至0.69美元之間。

We expect our Q4 billings to be $339 million, bringing our FY '24 billings growth guidance to 20%. This includes the impact of our decision to invest more in our partner network that will include shifting more services delivery to this channel. The impact of this shift will be a reduction of around $3 million to billings in Q4. We are raising our free cash flow guidance for FY '24 to $130 million.

我們預計第四季的營業額將達到3.39億美元，這將使我們24財年的營業額成長預期達到20%。這包括我們決定增加對合作夥伴網路的投資，包括將更多服務交付轉移到該管道。這一轉變將導致第四季的營業額減少約300萬美元。我們將24財年的自由現金流預期上調至1.3億美元。

To conclude, we outperformed all aspects of our guidance in Q3 and are encouraged by the signals we are seeing from our incremental growth drivers such as self-discovery of capabilities and the new AI features.

總而言之，我們在第三季度的所有方面都超出了預期，並且從我們的增量增長動力（例如自我發現能力和新的 AI 功能）中看到的信號令我們感到鼓舞。

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

現在我把電話轉給接線生。接線生？

(Operator Instructions) We'll take our first question from Scott Berg with Needham.

（操作員指示）我們將回答 Needham 的 Scott Berg 提出的第一個問題。

Really nice quarter here. I wanted to start on the billings side. You saw some acceleration in the growth quarter-over-quarter, speaks to some of the large deal environment there. But how do we think about kind of pipeline and demand trends going into Q4? Do they like kind of normal and similar from what you've seen last quarter or 2? Or do you see any changes either up or down further?

這個季度表現真的很棒。我想先從帳單業務開始。您看到季度環比成長有所加速，這反映了一些大型交易環境的良好。但是，我們如何看待第四季的銷售管道和需求趨勢？它們是否與上一季或第二季的情況基本持平？或者，您認為會有任何進一步上升或下降的變化？

Thanks, Scott. This is Pete. As we looked at the pipeline, we are seeing basically the same strength in enterprise continuing into Q4. Obviously, it depends on the composition of deals and closing those deals. And what we're anticipating in Q4 is on the SMB expansion, the trend we saw in what I would call Q3, which was a degradation in the expansion rate, we're extending that out in a trended basis into Q4 as well.

謝謝，斯科特。我是皮特。我們查看了銷售管道，發現企業業務的強勁勢頭基本上延續到了第四季度。顯然，這取決於交易的構成和交易的成交情況。我們預計第四季中小企業業務將擴張，這與我們在第三季度看到的擴張速度下降的趨勢一致，我們認為這種趨勢也將延續到第四季。

Got it. Helpful there. And then from a follow-up perspective, your operating margins have kind of lowered the last couple of quarters. I know that's in line with guidance. Your sales and marketing expense is up a little relative to subscription growth rates that are down a little bit there. Is the higher sales and marketing expense -- is that all related to the partner enablement activities that you're going through? Is there some other increased costs that we should be aware of?

明白了。這很有幫助。然後從後續角度來看，你們的營業利潤率在過去幾季有所下降。我知道這符合預期。你們的銷售和行銷費用相對於訂閱成長率略有上升，而訂閱成長率則略有下降。更高的銷售和行銷費用是否都與你們正在進行的合作夥伴支援活動有關？還有其他一些我們應該注意的成本增加嗎？

I think when you think of the sales and marketing expense in Q3 and you look at that trend, remember, sales and marketing in Q3 is a function of the event we had in Q3, which was the ENGAGE event that plays into that spending. And then there's, what I call, investments that we are making as needed in the right parts of the sales and marketing machinery.

我認為，當你思考第三季的銷售和行銷費用並觀察其趨勢時，請記住，第三季的銷售和行銷支出與我們在第三季舉辦的活動（即ENGAGE活動）息息相關，而ENGAGE活動也對支出產生了影響。此外，我們也會根據需求在銷售和行銷機制的正確環節進行投資。

We'll take our next question from Michael Berg with Wells Fargo Securities.

我們將回答富國證券的麥可‧伯格提出的下一個問題。

I wanted to ask on the demand dynamics in a different way. Anything to point to in the renewable environment outside the SMB vertical? Is it improving? How does it relate to the first half of the year? And how is it trending as we look into calendar 2024?

我想換個角度問問需求動態。中小企業以外的再生能源領域有什麼值得關注的嗎？情況在改善嗎？與今年上半年有什麼關係？展望2024年，再生能源的趨勢如何？

I think in general, our renewals are staying pretty strong. There's no big difference in the environment that we've seen between the first half and the second half. But remember, our business is pretty well diversified across all verticals. So we get the benefit of that, but we're not seeing any big changes in the renewal environment.

我認為總體而言，我們的續約業務保持著相當強勁的勢頭。上半年和下半年的市場環境並沒有太大變化。但請記住，我們的業務在各個垂直領域都相當多元化。因此，我們確實從中受益，但續約環境並沒有任何重大變化。

Helpful. And then one quick follow-up on capabilities. It's been in the 30 -- low to mid-30s for several quarters now, and it seems to be a high-value proposition type of product. Maybe you can help us think about -- is there anything preventing further incremental adoption of that, whether it be driving home the ROI equation, budget priorities, just macro and budget scrutiny? Just any way we can think about how that adoption could accelerate?

很有幫助。然後快速跟進一下功能。幾個季度以來，它的價格一直在30到35美元之間，而且似乎是一款高價值產品。也許您可以幫我們想想，有什麼因素阻礙了它進一步的逐步採用，無論是投資回報率公式、預算優先級，還是宏觀和預算審查？我們能想出什麼辦法來加速這種採用嗎？

I think when we look at -- this is Mark. When we look at the various phases or elements of driving growth in this area, one of the big initiatives for us in the second half has been how do we get them more aware to people at the right time. So that was part of the self-discovery effort. One of the things that we can see in next year and the years out is how do we not only increase discovery, but also how do we dramatically accelerate the transaction on those types of things. So we see a future in which the entire portfolio is visible to people, can be utilized by people and can also be transacted by people in a variety of methods, whether you speak with a partner, whether you speak with a direct rep or whether you do that online. And we continue to see that aperture opening. But the first phase of the game is how do you get in front of people. And I think we've made really good progress in the second half on that.

我認為，當我們審視——這是馬克。當我們審視推動該領域成長的各個階段或要素時，我們下半年的一項重大舉措是如何在適當的時間讓人們更了解這些產品。所以，這是自我發現工作的一部分。明年及未來幾年，我們可以看到的事情之一是，我們如何不僅增加發現，而且還能大幅加快這類產品的交易速度。因此，我們看到未來，整個產品組合將對人們可見，可供人們使用，並且可以透過各種方式進行交易，無論是與合作夥伴溝通，還是與直接銷售代表溝通，還是在線上進行。我們持續看到這種機會的開放。但遊戲的第一階段是如何將產品呈現在人們面前。我認為，我們在下半年在這方面取得了非常好的進展。

Let's take our next question from Josh Baer with Morgan Stanley.

讓我們來回答摩根士丹利的 Josh Baer 提出的下一個問題。

Wanted to follow up on capabilities, Mark. Just wondering, like, what percent of your customer base do you think capabilities can apply to. I think that 1/3 of revenue is generated by only 6% of your customers. Just wondering where that number can go.

馬克，我想跟進一下關於能力的問題。我想知道，您認為這些能力可以應用在您客戶群的多少百分比？我認為三分之一的收入是由只有 6% 的客戶創造的。我想知道這個數字還能達到什麼程度。

Yes. I'm -- I think I'm the eternal optimist on this one. I think this relates to every single person in our community. We have a wide portfolio. It has to do with being able to bring information and data into our system, with integrating our system, with visualizing our system, sharing our system. These are all things that virtually every person on our platform does. And I think when you reduce the cost of -- reduce the hurdle height on what it takes to experience and give people multiple options how to transact at a very low -- cost-effective way to start all the way up to really massive enterprise deployment, that penetration should go well into the double digits. And yes, I think over the next -- over a 5-year frame, I think 50 -- our median customers should be buying capability from us.

是的。在這一點上，我永遠是個樂觀主義者。我認為這與我們社區中的每個人都息息相關。我們擁有廣泛的產品組合，能夠將資訊和數據引入我們的系統，整合我們的系統，實現系統視覺化，並共享我們的系統。這些幾乎是我們平台上的每個人都在做的事情。我認為，當你降低成本，降低體驗門檻，並為人們提供多種選擇，讓他們能夠以非常低的成本高效地進行交易，從入門到真正大規模的企業部署，這種滲透率應該會達到兩位數。是的，我認為在未來5年內，我們的中位數客戶應該會購買我們的產品。

Really helpful. And then just wanted to dig in one more time on billings, Q3, Q4. Like you did show some nice upside and acceleration in Q3 off of an easier compare. The comp gets easier yet again in Q4, but the guidance implies a little bit of decel, like, even adjusting for the shift in the partners. So anything else to call out between Q3 and Q4? Or is kind of Q4 just embedding sort of the normal type of prudence in guidance?

真的很有幫助。然後我想再深入探討第三季和第四季的營業額。您之前確實通過更簡單的比較展示了第三季度的一些不錯的增長和加速。第四季的業績再次變得更容易比較，但業績指引暗示業績會略有下降，甚至考慮到合作夥伴的變化。那麼，在第三季和第四季之間還有什麼需要注意的嗎？或者說，第四季的業績指引只是在體現一種正常的審慎態度？

So Josh, our approach this year has been very consistent. The performance every quarter, sort of irrespective of direction, hasn't materially changed our view of the year. Within a quarter, there's many reasons for variability. It's the timing of billings. It's the lumpiness of deals. It's seasonal variances, which tend to sort of offset over a full year term. We provided commentary based on actual sort of data we see in the quarter, but we've been very constant in our view of the year. And the way we see it is, given our performance over the past 2 quarters, we like the set up in Q4 to hit our 20% full year billings guide. So that's the way we see it.

Josh，我們今年的策略非常一致。每個季度的業績，無論方向如何，都沒有實質地改變我們對全年業績的看法。一個季度內，造成業績波動的原因有很多。例如帳單發放的時間、交易的波動性、季節性差異，這些因素往往會在全年期間相互抵銷。我們根據季度實際數據提供的評論，但我們對全年業績的看法始終如一。鑑於過去兩個季度的業績，我們認為第四季度的業績有望達到我們全年帳單指引的20%。這就是我們的看法。

We'll take our next question from Jake Roberge with William Blair.

我們將回答 William Blair 的 Jake Roberge 提出的下一個問題。

Mark, now that you've had those AI solutions in beta for a few months and in the hands of customers, what's been the early feedback on those? Are there any features that you're really seeing outsized demand for?

馬克，這些人工智慧解決方案已經測試了幾個月，並且已經交付給客戶了，早期的回饋如何？有哪些功能的需求量特別大？

It's interesting. As I talk to peer CEOs who have launched AI features into the wild, I think what the market is seeing is that I think people are assigning higher value but lower frequency, lower usage to some of these things.

這很有意思。當我和那些已經將人工智慧功能推向大眾的同行CEO們交流時，我發現市場正在看到，人們賦予某些功能更高的價值，但使用頻率和使用率卻更低。

So when I look at a company saying, hey, we really assign value to the ability to generate configurations through advanced formulas or content generation, it's not something where we see this being hammered away at 10, 50, 100 times per day. We're seeing a configuration at our large domain sort of a configuration being created daily. So it's not like every single user is using us all day long, but it's actually quite encouraging because people are utilizing it consistently. And I think as the surface area grows, not only from creating a logic, but then having an assistant and having the ability to do insights and having the ability to find templates through an AI mechanism, I think that frequency will climb. But I would say pretty consistently across the peers that I speak with, a lot of investments are out there. And I think the frequency of usage is probably a little bit lower than people had anticipated. But when I look at the feedback we've received across favorable, neutral or negative, almost exclusively neutral or positive. And that's a really good leading indicator that tells us continue to invest in this area.

所以，當我看到一家公司說，嘿，我們真的重視透過高階公式或內容產生來產生配置的能力時，這並不是每天要重複10次、50次甚至100次的事情。我們看到，我們龐大的網域每天都會創建一個配置。所以，並不是每個用戶都整天都在使用我們的產品，但這實際上相當令人鼓舞，因為人們一直在使用它。我認為，隨著應用範圍的擴大，不僅僅是創建邏輯，還有助手、洞察能力以及透過人工智慧機制查找模板的能力，我認為使用頻率會上升。但我要說的是，在我接觸過的同行中，相當一致地存在著大量的投資。我認為使用頻率可能比人們預期的要低一些。但當我看到我們收到的回饋，有正面的，有中性的，也有負面的，幾乎都是中性的或正面的。這是一個非常好的領先指標，告訴我們應該繼續在這個領域投資。

Heading into Q1 will be the first time where we have something available in our enterprise product, which can really be presented to a business user that they can associate you very cleanly. Like in the past, very often, enterprise plans tie out to security features and things that IT and governance really values, this will be the first foray into giving the business users something that they can get excited about. So again, super early days. I'm really pleased to see the neutral or positive feedback on this. And it's like it's the first inning of this game. But again, no -- definitely, the game is being pursued fully.

進入第一季度，我們將首次在企業產品中推出一些功能，這些功能可以真正呈現給業務用戶，讓他們能夠清楚地與產品建立聯繫。與過去一樣，企業計畫通常會與安全功能以及IT和治理真正重視的功能掛鉤，這將是我們首次嘗試為業務用戶提供一些讓他們興奮的功能。所以，再次強調，目前還處於非常早期的階段。我很高興看到大家對此的中立或正面回饋。這就像這場比賽的第一局。但同樣，不——毫無疑問，這場遊戲正在全力進行。

Very helpful. And then I know a lot of the solutions are still in beta today and will obviously take some time to roll out. But just in terms of that time line, what do you view as the kind of the biggest product hurdles you have left before getting these solutions really GA and lives in the hands of customers and really starting that upsell motion?

非常有幫助。我知道許多解決方案目前仍處於測試階段，顯然需要一些時間才能正式推出。但就時間表而言，您認為在這些解決方案真正正式發布、交付給客戶並真正啟動追加銷售之前，最大的產品障礙是什麼？

I think especially in this arena, there are 2 factors. One, for many people, this is their first time interacting with an AI experience. So the importance of being correct, having -- giving the customer high confidence in that interaction, we care deeply about that. So as we think about leaving some of these things in the oven, if you will, for an extra month or 2, we think it's a really smart move. So we're getting the first 2 skills out at the -- before the end of Q4. And I think with each of these skills, it's important to really understand what the feedback and interaction with that skill is as opposed to doing a drag right and say, well, it worked well for the first 3 skills, let's just do that for the next 5. I think you really have to prosecute these independent of one another.

我認為，尤其是在這個領域，有兩個因素。首先，對許多人來說，這是他們第一次與人工智慧互動。因此，確保正確性、讓客戶對互動充滿信心非常重要，我們非常重視這一點。因此，當我們考慮將其中一些事情擱置一兩個月，如果你願意的話，我們認為這是一個非常明智的舉動。所以我們會在第四季結束前推出前兩項技能。我認為，對於每項技能，重要的是要真正了解該技能的回饋和互動情況，而不是拖拖拉拉地說，好吧，前三個技能效果很好，那就對接下來的五個技能也這樣做。我認為你必須分別獨立地執行這些技能。

I think the other piece of this equation is what the posture of the buyer is. So when I look at some of our largest organizations, we have about 5,000 organizations in the Early Adopter Program, spanning tens of thousands of users. There are some organizations -- even with our approach to AI, which is unbelievably contained, like we don't ship data across the boundary. Even in those situations, the procurement teams and security teams are taking extra care to really understand what their internal policies are. So we've actually had some of our largest clients who are taking an überconservative approach say, we will wait until it's out of EAP, as they're getting their internal controls defined. And I think a lot of customers are being very prudent in that approach.

我認為這個等式的另一部分是買家的態度。我觀察我們一些最大的組織，大約有5000個組織參與了早期採用者計劃，涵蓋了數萬名使用者。有些組織——即使我們採用了令人難以置信的AI方法，例如我們不會跨境傳輸數據，也採取了令人難以置信的限制措施。即使在這些情況下，採購團隊和安全團隊也會格外小心，真正了解他們的內部政策。因此，我們實際上有一些最大的客戶採取了「非常保守」的做法，他們說，我們會等到EAP（早期採用者計畫）結束後再採取行動，因為他們正在定義內部控制措施。我認為很多客戶在採用這種方法時都非常謹慎。

We'll take our next question from John DiFucci with Guggenheim.

我們將回答古根漢的 John DiFucci 提出的下一個問題。

I appreciate the prudence in guidance relative to the SMB expansion deterioration, Pete. But can you comment at all on the linearity in this quarter? And just give us any kind of read into how November and the beginning of December seem to be tracking.

Pete，我很欣賞您在中小企業擴張惡化方面給予的謹慎指引。但您能否評論一下本季的線性成長？請您介紹11月和12月初的走勢。

Yes. So the first thing is we always have seasonality in the quarter. Our first month is the smallest compared to all 3 months. So as we went through the quarter, we did see, what I call, strength in the enterprise build up. And on the other side of that token, we did see the SMB expansions continue to be impacted by expansion pressures. We saw that trend in SMB expansion pressures continue into November. And on the enterprise side of it, November was per our expectations. So that's a little bit of the -- how the quarter played out.

是的。首先，季度總是存在季節性。第一個月的銷售額在所有三個月中是最小的。因此，在整個季度中，我們確實看到了我所說的企業業務的強勁成長。另一方面，我們也看到中小企業的擴張持續受到擴張壓力的影響。我們看到中小企業擴張壓力的趨勢持續到11月。而從企業業務的角度來看，11月的銷售額符合我們的預期。所以，這就是本季的一些情況。

Okay. That's helpful. And I guess, Mark, you mentioned the example in your prepared remarks on self-discovery of Advance features. Can you give us any metrics at all on how we should be thinking about that as far as traction moving forward?

好的。這很有幫助。馬克，我想你在準備好的演講中提到了關於Advance功能自我發現的例子。你能給我們一些指標來說明我們應該如何看待這個問題，以便推動未來的發展嗎？

I think we'll probably provide more texture on that as we give the painted picture for the upcoming year with our Q4 results. I mean right now, we're looking at this contributing nearly $1 million of bookings in the quarter. It's a great green shoot. We have really positive feedback in terms of how people are seeing these things. But I would say still pretty early innings. We're talking about hundreds of trials with conversions, again, accumulating to a little less than $1 million. But I mean, I think with another quarter under our belt, we'll feel more confident and be able to frame that in the year ahead -- for the year ahead.

我認為，隨著我們第四季度業績對來年前景的描繪，我們可能會提供更多細節。目前，我們預計這項服務將在本季貢獻近100萬美元的預訂量。這是一個好的開始。就用戶對這些服務的看法而言，我們收到了非常正面的回饋。但我認為現在還處於初期階段。我們談論的是數百次轉換的嘗試，再次強調，累積轉換量略低於100萬美元。但我認為，隨著我們又一個季度的業績成長，我們會更有信心，能夠在未來一年——為未來一年——規劃好目標。

We'll take our next question from Steve Enders with Citi.

我們將回答花旗銀行的史蒂夫恩德斯 (Steve Enders) 提出的下一個問題。

I guess I want to ask about the international opportunity. I mean good to see the expansion into Australia for data residency. But how are you thinking about, I guess, kind of broader international initiatives? And is there going to be any kind of further go-to-market investments, marketing campaigns or partner build-out to kind of go after that opportunity?

我想問國際機會。我很高興看到資料駐留服務拓展到澳洲。但是，您如何考慮更廣泛的國際措施？為了把握這個機會，是否會有進一步的市場投資、行銷活動或合作夥伴拓展？

Steve, this is Pete. So we think of -- international is a huge opportunity for us. It's 16% of our revenue and clearly, one of the areas we go after. But we think of it as a combination of all the changes we're making on the product with PLG and making it easier to have this product found, be able to expand, all those things. On the other side, we're investing in the go-to-market capability as well, combined with how customers that we deal with would want their data to be treated. So think of it as go-to-market with data centers. So we'll continue to invest in the international dimension. But just like our business here, it's going to take a while because customers with us start small and then they expand with us. So that's the trajectory you should see.

史蒂夫，我是皮特。我們認為國際市場對我們來說是一個巨大的機會。它占我們總收入的16%，顯然也是我們重點關注的領域之一。但我們認為，國際市場是我們與PLG合作對產品進行的所有改進的結合，這些改進使產品更容易被發現，更容易擴展等等。另一方面，我們也在投資市場推廣能力，並結合我們服務的客戶希望如何處理他們的數據。所以，我們可以把它想像成一個透過資料中心進入市場的過程。因此，我們將繼續在國際領域進行投資。但就像我們在這裡的業務一樣，這需要一段時間，因為我們的客戶都是從小規模開始，然後與我們一起成長。這就是你應該看到的軌跡。

Okay. Perfect. That's helpful context. And then on the net retention, I think a little bit of a downtick at least for how you're thinking about for the fiscal year guide. I guess anything to call out? What's kind of the incremental difference there? And then, I guess, secondarily, how should we be thinking about where that could potentially bottom out at?

好的。太好了。這很有幫助。然後關於淨留存率，我認為至少在財年指南中，淨留存率會略有下降。有什麼需要注意的嗎？那裡的增量差異是什麼？其次，我們該如何考慮淨留存率可能在何處觸底？

Yes. So Steve, when we think of the net dollar retention rate, generally, things were pretty much consistent between quarters. The only difference was the incremental SMB expansion, which is what you're seeing in the number we've laid out that's included in there. Now that's the first part. And the second part of what you asked for, what's the direction of this, we've got a big Q4 to go -- kind of go execute on, not just in terms of the total dollars we need to go through. But these green shoots that Mark talked about, we want to see how those play out. All of that, combined with the environment we see in Q4, will really inform what we think net dollar retention rate will look like in FY '25.

是的。史蒂夫，當我們考慮淨美元留存率時，總體而言，各個季度的情況基本一致。唯一的區別在於中小企業的增量擴張，也就是您在我們列出的數字中看到的。這是第一部分。您問到的第二部分，這個方向是什麼？我們還有很長的第四季要走——需要繼續執行，而不僅僅是在我們需要投入的總資金方面。至於馬克提到的這些復甦跡象，我們想看看它們會如何發展。所有這些，加上我們在第四季看到的環境，將真正決定我們對2025財年淨美元留存率的預期。

We'll take our next question from Pinjalim Bora with JPMorgan.

我們將回答摩根大通的 Pinjalim Bora 提出的下一個問題。

Congrats on the quarter. Mark, can I ask you, based on your conversations with customers, how do you think kind of the enterprise budgets are getting set for 2024 so far? Do you think purse strings might open up a bit or not so much?

恭喜本季取得佳績。馬克，根據您與客戶的溝通，請問您認為到目前為止，2024 年的企業預算狀況如何？您認為財政預算會稍微寬鬆一點嗎？

I think it's largely a function of a provider's ability to connect to value and helping understand how they realize that value. I think -- and this goes back starting, in a really pronounced way, probably 3 years ago, where the higher we got in an organization and the bigger project we were talking with them about, the greater the need was to connect it to a prioritized pursuit that they have and be able to articulate how they could, within a certain time frame, realize that benefit. So when I think of where we're investing, not just from a product standpoint or a partner standpoint, but our articulation of how we deliver value, that is a direct tie into whether a purse string gets tighter or gets more loose. And so I think it's -- there are absolutely macro things that one needs to be aware of, but there are a whole litany of things that are within one's control that can help adjust that.

我認為這很大程度上取決於供應商與價值關聯的能力，以及他們如何理解如何實現價值。我想——這可以追溯到大概三年前，當時我們在組織中的職位越高，與他們洽談的項目越大，就越需要將其與他們優先考慮的追求聯繫起來，並能夠清晰地解釋如何在一定時間範圍內實現這一效益。所以，當我思考我們的投資方向時，不僅僅是從產品或合作夥伴的角度，而是我們如何交付價值的表達方式，這直接關係到錢袋子是收緊還是放鬆。所以我認為──人們絕對需要注意一些宏觀因素，但也有很多因素在人們的掌控範圍內，可以幫助人們調整投資策略。

Understood. And one follow-up. How are you thinking about the sales capacity going into next year? Do you have the capacity for your plan? Do you expect to build capacity higher? And then how should we kind of think about that in context of potential margin improvement for next year?

明白了。還有一個後續問題。您如何考慮明年的銷售產能？您的計畫中已經具備產能了嗎？您是否計劃進一步提升產能？那麼，從明年利潤率的潛在提升角度來看，我們該如何看待這個問題？

So Pinjalim, this is Pete. So when you think of sales capacity and you think of needing sales capacity, we think of it as we have a pretty well-trained team of sales professionals we've hired. We've continued to invest in making them capable. That's the effort we've been on for several quarters. We see the first sort of -- the first shot as just the capacity and the productivity of those reps improving. That's the fundamental. Now will we add resources as we enhance the sales process and specific roles? We will. But I don't think it will be a huge drag on the margin. So as you look at FY '25 and you look at margins, we're not giving guidance on that yet. But the way I would describe it is overall margins, you should see those continue to improve. What slope or gradient that improvement takes will be a function of what growth expectations we have.

Pinjalim，我是Pete。所以，當你想到銷售能力，當你想到需要銷售能力時，我們會想到我們擁有一支訓練有素的銷售專業團隊。我們一直持續投資，提升他們的能力。這是我們幾個季度以來一直在努力的方向。我們看到，銷售代表的能力和生產力正在提升，這是第一步。接下來，我們會在優化銷售流程和特定職位的同時增加資源嗎？我們會的。但我認為這不會對利潤率造成很大的拖累。所以，當你展望25財年並關注利潤率時，我們目前還沒有給出這方面的指引。但我認為，整體利潤率應該會持續改善。這種改善的斜率或梯度將取決於我們的成長預期。

We'll take the next question from Taylor McGinnis with UBS.

我們將回答瑞銀的泰勒麥金尼斯提出的下一個問題。

Sorry to press on billings again. But just one follow-up to one of the questions that was asked earlier. So Pete, I think you mentioned that there could be quarter variability in timing, which I know we all appreciate in billings. But just given the strength in 3Q, did you see any renewals that pulled forward from 4Q into 3Q? And then maybe you can talk about like the bookings linearity you're seeing so far and if that's trending to be more back-end loaded and if that -- if there's any assumptions of that embedded in the guide.

抱歉再次追問帳單問題。我只是想跟進一下之前提出的一個問題。 Pete，我記得你提到過，時間安排可能會在季度間存在差異，我知道我們都很理解這一點。但考慮到第三季的強勁表現，你有沒有看到任何續約從第四季提前到第三季？然後，或許你可以談談你目前看到的預訂線性，以及這是否傾向於更多地依賴後端，以及指南中是否有任何關於這方面的假設。

So Taylor, there was nothing unusual in the quarter. Every quarter always has the normal pulls and pushes that happen, but nothing unusual this quarter that played out. I would go back and say we're seeing sort of bookings linearity being very consistent. There's no big trend to report out there. I'd say the only delta in bookings that we're seeing, which I called out a little bit, was on the SMB expansion side of it. So we're seeing some degradation that we had in Q3 on these expansions. And we're extending that trend forward into Q4, the assumption that, that trend continues.

泰勒，本季沒有什麼異常。每個季度都會有正常的拉動和推動，但本季沒有什麼異常。我想說的是，我們看到的預訂量線性非常穩定。沒有什麼大的趨勢需要報告。我想說，我們看到的唯一預訂量增量，我剛才稍微提到了，是在中小企業擴張方面。所以我們看到這些擴張在第三季有所下降。我們將這種趨勢延續到第四季度，我們假設這種趨勢會持續下去。

Got it. That's really helpful. And one last one for me is -- so appreciate that there can be timing and quarterly variability into billings and sometimes that metric can be noisy. But I guess if you look on trailing 12 months, it's been growing somewhere in the low 20s. But ARR growth has been hanging in there in like the mid-20s, maybe low end of that. So just as we think about what the underlying business is doing and the momentum you guys are seeing, when we look forward, any thoughts on which is the better leading indicator or how we think about the difference between these 2 metrics?

明白了。這真的很有幫助。最後我想說的是——我理解帳單數據會因時間和季度變化而有所波動，有時這個指標可能會比較複雜。但我想，如果回顧過去12個月，它的成長率一直在20%出頭左右。而ARR的成長則一直徘徊在20%左右，甚至更低。所以，當我們思考基礎業務的現狀以及你們看到的勢頭時，展望未來，您覺得哪個是更好的領先指標，或者我們如何看待這兩個指標之間的差異？

I think when you think of billings in ARR, I think they both are different, but they both lead you to the same answer when you finish the year. They're pretty close, even if it's not an identical answer. So when I'm thinking about quarterly changes, I tend to rely more on ARR because it has a better sense of -- the timing elements are a little less pronounced. But when you think of the full year, they're both the same.

我認為，當你用ARR來衡量帳單時，兩者是不同的，但到了年底，它們都會為你帶來相同的答案。即使答案不完全相同，但它們非常接近。所以，當我考慮季度變化時，我傾向於更多地依賴ARR，因為它更直觀——時間因素不那麼明顯。但當你考慮全年時，它們是一樣的。

We'll take our next question from Keith Bachman with Bank of Montreal.

我們將回答蒙特利爾銀行的 Keith Bachman 提出的下一個問題。

I wanted to ask 2 things that are related. And Pete, one is on micro and then a bigger picture question. On the micro, when you talk about SMB and you assume the degradation continues. But just to be clear, are you assuming it gets worse or just stays the same? And then for my follow-up question, I'll just ask them successfully. When you think about the gen AI opportunity, and I was out in Seattle for your customer event, seemed like a lot of excitement. Can it contribute to ARR growth and billings growth in what would be fiscal year-end in January '25? Do you see that actually being a contributing factor to potential growth? Or is it still, you think, going to be more discovery at that point? And Pete, anything else you want us to think about as we're building our models for FY '25 from a demand perspective, you already addressed the margins, but anything else you want us to keep in mind in advance of giving the formal guidance?

我想問兩個相關的問題。 Pete，一個是關於微觀層面的問題，另一個是關於更大範圍的問題。在微觀層面，當您談到中小企業時，您假設這種惡化會持續下去。但需要澄清的是，您是假設情況會變得更糟還是保持不變？對於我的後續問題，我會直接問他們。當您考慮人工智慧的機會時，我去西雅圖參加了您的客戶活動，感覺非常令人興奮。它能否在2025年1月財政年度結束時促進ARR成長和帳單收入成長？您認為這實際上是潛在成長的因素嗎？或者，您認為到那時它仍然會是更多的發現？ Pete，在我們為2025財年建立模型時，您還有什麼希望我們考慮的嗎？您已經提到了利潤率問題，但在正式發布指引之前，您還有什麼希望我們注意的嗎？

So Keith, I'll answer your questions as you asked them. First question you had was on SMB expansions, and we are assuming that there is a continued degradation in Q4. So it -- we have assumed it moderately worsens in Q4, taking that trend line. So that's the first part of it. The second part of your question on gen AI opportunity in the ARR assumptions in FY '25, it's a little early to call it out because we've got a few customers sitting in the EAP program. We've got good positive feedback. But I think after we get through another quarter of that feedback and as we get ready to put this into, what I call, GA, I think we'll start to get a little bit of a sense of what that looks like. So I think it's a little early to call out.

基思，我會根據你提出的問題來回答。你的第一個問題是關於中小企業擴張的，我們假設第四季的情況會繼續惡化。所以我們假設第四季的情況會適度惡化，並呈現這種趨勢。這是第一部分。你問題的第二部分是關於2025財年ARR假設中的人工智慧機會，現在下結論還為時過早，因為我們還有一些客戶參與了EAP計畫。我們得到了正面的回饋。但我認為，在我們收集到下一個季度的回饋，並準備將其納入我所說的GA之後，我們會開始對情況有所了解。所以我認為現在下結論還太早。

Okay. Anything else, Pete, that you want us to think about as we model the demand side in FY '25?

好的。 Pete，在我們為25財年的需求面建模時，您還有什麼需要我們考慮的嗎？

No, I think it's a little early to talk through '25, but nothing specific to call out at this time.

不，我認為現在談論 25 還為時過早，但目前還沒有什麼具體的事情可說。

We'll take our next question from Terry Tillman with Truist.

我們將回答 Truist 的 Terry Tillman 提出的下一個問題。

Nice job on the earnings in the quarter and the cash flow. One quick question I had, maybe Mark, first for you on self-discovery. I think you gave us a nugget there in terms of $1 million of bookings -- or billings and you called it like an early green shoot. Just given the work you're doing there and all the trials you're doing there initially, I mean, do you expect that though to ramp pretty notably from the $1 million level in 4Q? And how would that happen? Is it you just got to put more kind of seeds in the ground with more trials or you're working through the flow of the existing trials or maybe even add more capabilities in the self-discovery? And then I have a follow-up.

本季的獲利和現金流表現不錯。馬克，我想先問您一個關於「自我發現」的簡短問題。我認為您之前提到了100萬美元的訂單量（或帳單），並稱之為“早期的綠芽”。考慮到您目前在這方面所做的工作以及最初進行的所有試驗，您是否預計這一數字會在第四季度從100萬美元的水平顯著增長？這將如何實現？您需要透過更多試驗播下更多種子，還是繼續進行現有試驗，甚至在「自我發現」中增加更多功能？然後我還有一個後續問題。

Yes. It's multifaceted, Terry. It's how do you not only serve up the capability to someone to utilize, but then how do you help prosecute that with the existing customer, right? It's moving it from being utilized to being transacted upon. And those are the motions that we're learning. So for these first deals that have closed, there are some things we're like, wow, we got that totally right. And we also found other things where we can further reduce the friction. And as we scale that from tens of thousands of people who have been exposed to it to well over 100,000 organizations, I would expect that friction to reduce. So I would be -- I will bet the over on things continuing to improve in this camp.

是的。這是多方面的，Terry。關鍵在於你如何不僅將功能提供給用戶使用，還要如何幫助現有客戶實現這一點，對吧？這需要將其從「被使用」轉變為「被交易」。而這些正是我們正在學習的。對於第一批已經達成的交易，我們覺得有些地方我們做得非常好，哇，我們完全正確。我們還發現了其他可以進一步減少摩擦的地方。隨著我們將其從數萬名用戶擴展到超過10萬家組織，我預計這種摩擦會減少。所以我敢打賭，在這方面的情況會繼續改善。

And I think the other piece is as we look at getting more and more of the portfolio in, we're going to have more at bats. So when an organization trials a capability, you have multiple opportunities to trial. It's not one organization, it's people within that organization. So even if you miss on the first opportunity with an individual, an organization, their neighbor can start trialing that capability. So it's a repeated opportunity to sell into an organization and to deliver value. That's one of the things that I really like about this opportunity.

我認為另一點是，隨著我們考慮將越來越多的產品組合納入其中，我們將擁有更多機會。因此，當一個組織試用一項功能時，您將擁有多次試用機會。試用的對像不是一個組織，而是組織內部的人員。因此，即使您錯過了與個人或組織的第一次機會，他們的鄰居也可以開始試用該功能。因此，這是一個向組織推銷產品並創造價值的重複機會。這是我真正喜歡這個機會的原因之一。

Got it. That's great to hear and the betting on the over. My follow-up question, I don't know if this is for you or Pete. But in terms of the services, the partner enablement, we see where some of the billings are going to go to partners, so it's explainable. I'm actually curious about sales enablement. So I'll build on this question. Over the last year, your $1 million customers have expanded quite a bit, 59, that's a lot. You've got customers paying you $4 million. I think you mentioned on the quarterly call, I think you got bigger ones than that. To me, that starts to seem interesting to a partner ecosystem, whether it's GSIs and others. So I would like to hear more about how sales enablement and influencing new businesses going with potential different types of partners.

明白了。聽到這個消息真是太好了，而且押注於過度。我的後續問題，我不知道這是問你還是問Pete。但就服務、合作夥伴支援而言，我們看到一些帳單會流向合作夥伴，所以這是可以解釋的。我其實對銷售支援很好奇。所以我會繼續這個問題。在過去一年裡，你們的100萬美元客戶數量成長了不少，有59個，這可不是個小數目。現在有客戶支付給你們400萬美元。我記得你在季度電話會議上提到過，我認為你們還有比這更大的客戶。對我來說，這對合作夥伴生態系統來說開始變得有趣，無論是GSI還是其他。所以，我想了解更多關於銷售支援以及如何影響與潛在不同類型的合作夥伴合作的新業務。

Yes. Terry, I really see 2 very different elevations of partnering. And one is the broad base, the hundreds of partners who came to engage and wanted further clarity on what our intentions were to build our service line versus supporting them explicitly. That's a really exciting growth opportunity, both in the States as well as in countries which are partner-first oriented. I view that as very different than our go-to-market motion with the GSIs and many of whom are huge customers of ours.

是的。 Terry，我確實看到了兩種截然不同的合作模式。一種是廣泛的基礎，數百名合作夥伴前來參與，希望進一步明確我們建構服務線的意圖，而不是僅僅為他們提供明確的支持。這是一個非常令人興奮的成長機會，無論是在美國還是在以合作夥伴為先的國家。我認為這與我們面向GSI的市場推廣策略截然不同，其中許多GSI都是我們的大客戶。

How we go to market with them is both as a customer as well as getting Smartsheet utilized as they deliver their services to their clients. And so it's really a multipronged relationship where we serve them as a client. We team with them to get it introduced to their clients and then figuring out ways where they can build a book of business on the back of the Smartsheet platform to continue that relationship. That's really different than the next newest partner in a remote region which is targeting SMB, which is still valuable to them, but again, different motion. So we have different folks within our enterprise team, within our services team, which are targeting GSIs. And we have the broad-based partner program, which is catering to a much larger population.

我們與他們合作進入市場的方式，既是作為客戶，也是讓Smartsheet在他們向客戶提供服務時發揮作用。因此，這實際上是一種多管齊下的關係，我們以客戶的身份為他們服務。我們與他們合作，將Smartsheet推廣給他們的客戶，然後想辦法讓他們利用Smartsheet平台建立業務關係，以延續這段關係。這與在偏遠地區尋找下一個目標客戶群為中小企業的最新合作夥伴截然不同，中小企業對他們來說仍然很有價值，但同樣，行動方式也不同。我們的企業團隊和服務團隊中都有不同的人員，他們的目標是GSI。我們有一個廣泛的合作夥伴計劃，可以服務更廣泛的人群。

And we'll take our next question from Alex Zukin with Wolfe Research.

我們將回答 Wolfe Research 的 Alex Zukin 提出的下一個問題。

This is Ethan Bruck on for Alex Zukin. Congrats on the nice numbers. Kind of looking to 4Q as the biggest renewal period, I'm just curious if you're seeing any change in customer behavior, whether it's -- [let's go term it] smaller expansions. If gen AI is playing a little bit more into this up-tiering at renewal? Just I know we have the guide for the 116% for 4Q. Just curious how those conversations have started to play out in 4Q. And then I have one follow-up.

我是 Ethan Bruck，代表 Alex Zukin 為您報道。恭喜您取得如此亮眼的數據。第四季是續約率最高的季度，我很好奇您是否看到了客戶行為的變化，無論是—[姑且這麼說吧] 規模較小的擴張。人工智慧是否會在續約率的提升中發揮更大的作用？我知道我們有第四季 116% 的預期。我很好奇這些討論在第四季是如何展開的。然後我還有一個後續問題。

Ethan, I don't think those expansion conversations and those renewal conversations are going any differently. I think there's nothing unusual about it because gen AI and all of that is pretty early stage. Remember, it's in EAP with a limited number of customers. So that's not playing into the conversation yet because when you think of renewals and you think of all those things, it ties directly to what am I going to do with it? How is it going to come into my environment? And we're probably a little bit removed from that spot at the present time.

伊桑，我認為那些關於擴張和續約的討論不會有什麼不同。我認為這沒什麼不尋常的，因為人工智慧和所有那些技術都還處於早期階段。記住，它目前在東亞和太平洋地區 (EAP)，客戶數量有限。所以這還沒有進入討論範圍，因為當你考慮續約以及所有這些事情時，它直接關係到我要用它做什麼？它將如何融入我的環境？而我們目前可能離這個階段還有一段距離。

Okay. I got you. And I guess, Pete, I know you're not guiding explicitly for next year. But I guess as we think about maybe a derisked or conservative way to think about next year, kind of help us frame numbers. Is it fair to think like, I guess, a derisked way for kind of building outlook is kind of below what is implied in the 4Q guidance?

好的。我明白了。 Pete，我知道你沒有明確預測明年的業績。但我想，當我們考慮以去風險或保守的方式預測明年的業績時，這能幫助我們確定一些數字。這樣想公平嗎？去風險的方式預測的績效略低於第四季指引中隱含的水準。

I think, as I said before, it's a little early to call out next year just because Q4 is a big quarter. We've got to go execute it. I think we're all heads down trying to make sure we get the best outcome we can in Q4. That's one part of it. And the other part is clearly the fact that a lot of the things we've put into play are like, call it, just recently in the pan, if you will. So we've got to let those things play out, see what those do to be really able to put a perspective on what FY '25 looks like.

我認為，正如我之前所說，現在就預測明年的業績還為時過早，因為第四季至關重要。我們必須全力以赴。我認為我們都在全力以赴，確保在第四季度取得最好的結果。這是一方面。另一方面，顯然，我們實施的許多措施，或者說，最近都只是曇花一現。所以我們必須讓這些措施發揮作用，看看它們會帶來什麼，才能真正對2025財年有一個清晰的認識。

We'll take our next question from DJ Hynes with Canaccord.

我們將回答 Canaccord 的 DJ Hynes 提出的下一個問題。

Mark, as I think back to the IPO, I remember we used to talk about $5,000 as the threshold at which you would typically see customer spend start to inflect up. And maybe that's still true. But obviously, it's a much different and scaled business today. As you look into the mid-market or low enterprise, however you want to qualify it, is there a spend threshold in that cohort or any other signal that you see where spend typically starts to inflect up again? Or is it more linear progression higher up?

馬克，回想IPO的時候，我記得我們以前常說，當客戶支出達到5000美元時，通常會開始上漲。現在可能仍然如此。但顯然，如今的業務規模和以往大不相同。當你觀察中端市場或低端企業時，無論你如何定義它，這個群體是否存在一個支出門檻，或者你觀察到其他任何訊號，表明支出通常會在這個門檻上再次上漲？還是說，隨著顧客數量的增加，支出會呈現更線性的遞增趨勢？

Yes. Isn't it interesting how our frame of reference changes from 5 years ago? I was talking to Pete yesterday about our average time to progress a customer from $0.5 million to $1 million. And again, so radically different from what we spoke about in the IPO. And I will stay away from pointing to one inflection point because there are so many phases to this game. We're seeing an acceleration of our moves from $0.5 million to $1 million. We're seeing, again, almost a double up of our $1 million customers. So I think whenever a company gets tempted to focus on an inflection point, it's also known as a missed opportunity when focusing at a higher inflection point.

是的。我們的參考框架與五年前相比發生了怎樣的變化，這難道不有趣嗎？昨天我和皮特談到了我們讓客戶從50萬美元成長到100萬美元的平均時間。這與我們IPO時討論的完全不同。我不會指出某個拐點，因為這個遊戲有很多階段。我們看到從50萬美元到100萬美元的轉變正在加速。我們再次看到，100萬美元的客戶數量幾乎翻了一番。所以我認為，每當一家公司試圖專注於某個轉折點時，也意味著在關注更高的轉折點時錯失了機會。

So we're really trying to, as I just spoke to in terms of how we're viewing the partner ecosystem, recognize that there are multiple points at which you can exert energy or deliver value to a customer, which will compel them to move higher and faster. And don't view that as one, but view that as you have one at your very large enterprise, one at your emerging enterprise, one at your mid-major and one at your emerging customer and treat those all as important. So it's -- I think we've learned over the last 5 years, and I think we're trying to arrange our capital and our resources to go after those.

所以，正如我剛才談到我們如何看待合作夥伴生態系統時所說，我們確實在努力認識到，你可以在多個方面投入精力或為客戶提供價值，從而推動他們更上一層樓、更快地發展。不要只把這些視為一個整體，而要把這些視為你在大型企業、新興企業、中型企業和新興客戶中都擁有的合作夥伴，並將它們視為重要的合作夥伴。所以，我認為我們在過去五年中已經吸取了教訓，我們正在努力整合我們的資本和資源來追求這些目標。

Yes. Okay. Makes sense. And then maybe a quick follow-up to Terry's question on the self-discovery. So you kind of alluded to -- in the answer to his question, that you would roll more capabilities into that motion. Just from a technical perspective, will it be easier to enable the next product for self-discovery now that you've already done a couple of them?

是的，好的，很有道理。然後，也許我可以快速跟進 Terry 關於自我發現的問題。所以，在回答他的問題時，您似乎暗示了，您會為這項技術注入更多功能。僅從技術角度來看，既然您已經完成了幾個自我發現功能，那麼在下一個產品中實現自我發現功能會更容易嗎？

Yes, absolutely. And I think when we think about self-discovery, it's not simply the enablement of a feature, it's how do you give the people who are responsible for managing that environment the confidence, the visibility, the ability to control those elements. So we're creating these frameworks and these heads-up displays within an administration console so that the administrators and the budget holders can have very high confidence and very efficiently manage these situations. Once that framework is set, adding that next one, you don't have to rebuild that infrastructure. We're making -- we're building that in a modular way and building upon some of those early foundational investments.

是的，絕對是如此。我認為，當我們思考自我發現時，它不僅僅是啟用一項功能，而是如何讓負責管理該環境的人員擁有信心、可視性和控制這些元素的能力。因此，我們在管理控制台中建立了這些框架和這些直覺的顯示介面，以便管理員和預算持有者能夠非常自信地有效率地管理這些情況。一旦該框架設置完畢，添加下一個框架時，就無需重建該基礎設施。我們正在以模組化的方式建構它，並基於一些早期的基礎投資。

We'll take our next question from Brent Thill with Jefferies.

我們將回答 Jefferies 的 Brent Thill 提出的下一個問題。

This is John Byun for Brent Thill. My first question was, as you've noticed, you had very good activity with the larger enterprises with your offering. I'm wondering if there are any notable drivers to call out? Anything to really help -- I don't know if -- any sort of unusual tailwinds from the ENGAGE conference?

我是 Brent Thill 的 John Byun。我的第一個問題是，正如您所注意到的，您的產品與大型企業的業務往來非常順利。我想知道，有什麼值得關注的驅動因素嗎？ ENGAGE 大會帶來了哪些特別的利多因素？

So I think your question is about the strength in the enterprise. I think it's user-compelling nature of the solutions and the enablement we've done with the field in sort of building that out. These deals that happened in Q3 weren't a result of just what happened in Q3 or just what happened at ENGAGE. It's a series of plays to start with an opportunity, build a compelling value for the customer and then grow that opportunity over time and then find the right way to describe that value to close the transaction. So that's what we've seen. I don't think it's a special magic bullet, but just running through it.

所以我認為你的問題是關於企業實力的。我認為是解決方案對使用者的吸引力，以及我們為實現這一目標所做的支持。第三季達成的這些交易並非僅源自於第三季或ENGAGE的成果。而是一系列的策略，從機會開始，為客戶建立極具吸引力的價值，然後隨著時間的推移不斷拓展這個機會，最終找到合適的方式描述這個價值，最終達成交易。這就是我們所看到的。我不認為這是什麼靈丹妙藥，只是一種循序漸進的嘗試。

Good. That's helpful. And then in terms of follow-up, for -- in your guidance comments, you talked about enabling services to do more of the service work and having a $4 million impact on billings. Wondering, was that embedded already in the previous full year guide of 20% growth? Or was that kind of maybe a little bit newer development?

很好。這很有幫助。然後，關於後續問題，在您的指導意見中，您談到了讓服務部門承擔更多服務工作，並對營業額產生400萬美元的影響。我想知道，這是否已經包含在之前20%的全年成長指引中了？或者這可能是一個更新的進展？

It's a newer development because we specifically called it out. And so it's -- think of that as incremental to prior guidance.

這是一個較新的進展，因為我們特別提到了這一點。所以，可以將其視為先前指導的增量。

We'll take our next question from Rishi Jaluria with RBC Capital Markets.

我們將回答 RBC Capital Markets 的 Rishi Jaluria 提出的下一個問題。

This is Chris Fountain on for Rishi Jaluria. So you mentioned a really large expansion deal in the prepared remarks and that there's still further opportunity to do more with that organization. So I was just wondering, what features are they still evaluating? Or what really drives that next leg of expansion with a customer of that size?

我是 Chris Fountain，請 Rishi Jaluria 為您解答。您在準備好的發言中提到了一項規模非常大的擴張協議，並且還有進一步與該組織合作的機會。所以我想知道，他們還在評估哪些功能？或者說，對於如此規模的客戶，真正推動他們進行下一輪擴張的東西是什麼？

The key driver there is we're serving a subset of their employee population. And one of the things that we've done in doing a multimillion-dollar, multiyear deal with them is not do a discounted by 90%, give away all the users, but really being thoughtful about how we grow with them over the years. And when I look at that customer and how they started with us as a $5,000 or $6,000 customer years ago and where they are today, we're seeing that as an upward trajectory for many years to come. But the key driver there is there are still very nice, large populations who are not yet utilizing the Smartsheet platform. And the nice thing is once you have flight ops and the product teams using it, you have these examples then you can show these adjacent teams. And when you're speaking the language of that carrier, the likelihood of them having higher confidence in following suit, I would argue, goes up. That's what we've seen in our other very large accounts.

關鍵驅動因素在於我們服務他們員工群體中的一小部分。我們與他們簽訂了數百萬美元、為期多年的協議，其中之一就是不打九折，不把所有用戶都送出去，而是認真思考如何在未來與他們共同成長。當我觀察這些客戶，以及他們多年前如何以5000美元或6000美元的價格與我們合作，以及他們如今的狀況時，我們看到未來許多年都將呈現上升趨勢。但關鍵驅動因素在於，仍有大量優質客戶尚未使用Smartsheet平台。好處在於，一旦航班營運和產品團隊開始使用它，你就有了這些案例，可以向其他團隊展示。當你用這家航空公司的語言來溝通時，我認為他們更有信心效仿的可能性就會上升。我們在其他大型客戶中也看到了這種情況。

That's helpful. And just a quick follow-up. Going back to the macro environment on the SMB side. Any industries to call out that have remained more pressured or on the flip side have started to show some green shoots?

這很有幫助。我再簡單跟進一下。回到中小企業的宏觀環境。有哪些產業仍面臨較大壓力，或反過來，已經開始出現一些復甦跡象？

I think when I think of the vertical focus, what we've seen is we've seen good strength in sort of, what I call, the retail, the education vertical and some of the gov. Obviously, gov is a pretty big quarter -- Q3 is a pretty big quarter for gov. And on the, what I call -- where we've seen some level of, what I call, pressure, it's come in energy, utilities, tech. Those are the vertical slices we've seen. But in general, across the SMB, we've seen really good logo growth all through the year. That stayed consistent. We have seen that pressure in SMB expansions. So just to make sure it's parsed out.

我認為，當我考慮垂直產業時，我們看到的是，我所說的零售、教育垂直產業以及部分政府部門表現強勁。顯然，政府部門是一個相當重要的季度——第三季對政府部門來說是一個相當重要的季度。而我所說的——我們看到了一定程度的壓力，它來自能源、公用事業和科技領域。這些是我們看到垂直領域的數據。但總體而言，在整個中小企業領域，我們全年都看到了非常好的品牌成長。這種增長保持了一致。我們在中小企業擴張中也看到了這種壓力。所以，只是為了確保它被分析。

And that concludes today's presentation. I'd like to turn the call back over to Aaron Turner for any additional or closing remarks.

今天的演講到此結束。接下來，請 Aaron Turner 發表補充演講或做總結演講。

Great. Thanks, Lisa, and thanks, everyone, for joining us today. We'll speak with you again next quarter.

太好了！謝謝麗莎，也謝謝大家今天加入我們。我們下個季度再和你聊聊。

Thank you. That concludes today's presentation. Thank you for your participation. You may now disconnect.

謝謝。今天的演講到此結束。感謝您的參與。現在可以斷開連線了。