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.

美好的一天，歡迎參加 Smartsheet 2024 財年第三季財報電話會議。今天的通話正在錄音。

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

現在我想將會議交給投資者關係主管亞倫·特納 (Aaron Turner)。請繼續。

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.

謝謝你，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宣布的結果。今天和我在一起的有 Smartsheet 的執行長 Mark Mader；以及我們的財務長 Pete Godbole。今天的電話會議正在進行網路直播，也可以在我們的投資人關係網站 Investors.smartsheet.com 上重播。皮特準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 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，我們將做出聯邦證券法意義內的前瞻性聲明。我們的這些前瞻性陳述主要基於我們目前對未來事件和財務趨勢的預期和預測。這些前瞻性陳述受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 文件中所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或不利的差異，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, 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.

本次電話會議期間所做的所有前瞻性陳述均基於我們今天掌握的信息，我們不承擔因新資訊或未來事件而更新這些陳述的義務，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簡報中提供了最直接可比較的美國公認會計準則措施的調節表，也可以在我們的投資者關係網站上找到該簡報。

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 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.

謝謝你，亞倫，大家午安。歡迎參加我們的 2024 財年第三季財報電話會議。該季度的 Smartsheet 收入超出了我們的指導，同比增長 23% 至 2.46 億美元，賬單同比增長 22% 至 2.685 億美元。第三季度，我們的非 GAAP 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。

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 增加了超過 10 萬美元，256 家公司的增加了超過 5 萬美元。此外，我們現在有 59 個 ARR 超過 100 萬美元的客戶，而一年前有 40 個。

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.

第三季度，我們在企業領域的實力繼續增強，在戴德梁行 (Cushman & Wakefield)、Cintas Corporation、生物技術公司、百濟神州 (BeiGene) 和 CommVault Systems 等公司進行了擴張。對於我們基於功能的產品套件來說，第三季也是一個強勁的季度。與上季類似，我們排名前 10 的擴展中都有功能。 Smartsheet Advance 是我們的功能組合，已包含在我們第三季的 250 項擴充中。 Advance 在與財富 500 強特色飲料公司達成的為期數年、數百萬美元的交易中發揮了關鍵作用。他們向 Smartsheet Advance Gold 的擴展將有助於支持該公司執行高影響力的項目，包括新產品推出和相關設備部署、網路升級以及新店開業和商店改進。

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.

在第三季度，我們還看到了重大擴張，其中包括一家大型航空公司升級至 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 白金層，他們能夠整合其許可證並將其全部納入 IT 權限範圍內，從而使這些部門能夠存取我們的所有功能，例如控制中心、動態視圖和橋接。

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.

這種整合意味著該航空公司有機會提高其 IT 支出的可見性，並為 Smartsheet 用戶提供支持，因為它可以提高資源管理、維護和調度等關鍵活動的效率。最終達成了為期 3 年的合約總價值 450 萬美元的承諾，並有機會在整個組織內進一步擴展 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.

快速擴張的能力也是全國最大的快餐店品牌之一 85 萬美元交易的關鍵。該公司正在進行一項多年轉型計劃，並選擇了 Smartsheet 控制中心和資源管理來幫助推動其全球數位轉型，並為高階管理團隊實施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 30,000 多個地點的協作，從而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例子是全球媒體和娛樂組織的重大擴張，該組織希望簡化其技術堆疊。該公司已經使用 Control Center 來管理 Bridge 中的 14,000 個專案和 12,000 個工作流程，以追蹤和管理他們的專案組合。由於這項工作涉及零售、活動、主題樂園和出版部門，Smartsheet 完全有能力贏得這次整合。展望未來，該公司將把 Smartsheet 的使用擴展到其他計劃中，例如提高技術專案的上市速度、高效的員工管理、成本控制和利潤提高計劃。此次擴張使該公司的 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，第三季度，我們推出了一種新方式，讓客戶可以發現和使用我們的 2 項高級功能，而無需先聯繫 Smartsheet 代表或合作夥伴。我們相信，讓人們能夠輕鬆地自我發現高價值的 Smartsheet 功能，將推動這些優質產品得到更多採用，而且早期結果令人鼓舞，在最初幾個月內就開始了數百項試驗。

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，直接導致購買 Data Shuttle，將大量資料從傳統臨床儲存系統遷移到 Smartsheet。儘管該公司多年來一直是我們的客戶，但從未利用過我們的優質能力。一旦發現 Data Shuttle，該公司的臨床試驗團隊就啟動了自動化工作流程來匯入數據，用於追蹤其癌症和罕見疾病治療研究的進展。

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，它透過允許他們集中查看和管理來自這些不同來源的數據而產生了積極的影響，並且他們在 Data Shuttle 上的成功現在引起了人們對其他高級功能的興趣。在第三季因能力自我發現而完成的交易中，超過 40% 是客戶首次購買優質能力。

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.

我們繼續在 Smartsheet 平台上整合人工智慧方面取得長足進步。我們現在有大約 50,000 名企業用戶正在搶先體驗人工智慧驅動的技能，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向企業客戶全面提供。早期訪問使用者的回饋證實，我們的人工智慧功能將有助於推動企業流程，並使任何使用者都能輕鬆深入了解跨團隊正在完成的工作。這些人工智慧技能正在幫助客戶透過 Smartsheet 平台更快地實現他們想要的結果。此外，人工智慧驅動的技能將於下個月向符合條件的早期採用者推出。

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.

我們持續進行國際投資，以滿足不斷增長的全球需求。為了支援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一個實例。這個新的 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的託管位置。我們將尋求 IRAP 認證，確保其擁有正確的政策和安全控制措施，以滿足澳洲政府的資訊安全要求。這使得 Smartsheet 能夠為不斷成長的區域客戶群提供服務，包括具有最嚴格治理和監管要求的組織和機構。

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.

第三季度對於我們在美國的聯邦政府業務來說也是一個富有成效的季度，達到了一些值得注意的里程碑。我們與一家大型政府機構簽署了 6 位數的擴張協議，使其 ARR 達到 160 萬美元。該機構將 Smartsheet 用於關鍵工作流程，從採購管理到管理補助資金，再到使用控制中心管理多個區域辦事處的差旅預算和費用管理。此外，我們現在在美國所有 15 個內閣級部門都有業務，並有 2 個政府機構的 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，我們將繼續作為用戶首選的企業工作管理領導者，並繼續專注於產品創新和客戶價值。

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.

謝謝你，馬克。我們在第三季度的各個方面都超出了我們的指導。與前幾季類似，我們的企業業務持續表現良好，這反映在我們較高的 ARR 客戶群層級和大額交易量的成長。我們繼續看到宏觀相關的壓力對我們的高速交易和中小企業客戶群造成。考慮到這些壓力，我們對第四季和全年指引保持審慎態度。

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.

我現在將介紹我們第三季的財務表現。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。

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，較去年同期成長 25%。服務收入為 1,340 萬美元。來自功能的收入佔訂閱收入的 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.

轉向比林斯。第三季營收為 2.685 億美元，年增 22%。我們約 94% 的訂閱帳單是年度帳單，約 3% 是每月帳單。季度和半年度約佔總數的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%.

繼續我們報告的指標。持有 ACV 超過 5 萬美元的客戶數量年增 26%，達到 3,719 名。持有 ACV 超過 10 萬美元的客戶數量年增 32%，達到 1,779 名。這些客戶群目前分別佔總 ARR 的 65% 和 51%。我們的 ARR 百分比來自 ACV 超過 5,000 美元的客戶，比例為 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%.

接下來，我們的網域平均 ACV 年比成長 16%，達到 9,225 美元。本季末，我們以美元計算的淨保留率（包括所有客戶）為 118%。完全流失率為 4%。我們預計 24 財年退出時，以美元計算的淨保留率將達到 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%。我們第三季的認購毛利率為 87%。我們預計 24 財年的毛利率將維持在 83% 或以上。整體而言，本季營業收入為 1,940 萬美元，佔營收的 8%。該季度的自由現金流為 1,140 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.

現在讓我繼續指導。對於 24 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 GAAP 營業收入將在 2,100 萬美元至 2,300 萬美元之間。根據 1.4 億股稀釋加權平均數，我們預期非 GAAP 每股淨利潤為 0.17 至 0.19 美元。

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.

對於 24 年整個財年，我們目前預計營收為 9.55 億美元至 9.57 億美元，成長 25%。我們預計服務將佔總收入的 6%。我們預計，我們的非 GAAP 營業收入將在 8,200 萬美元至 8,400 萬美元之間，營業利潤率為 9%，基於 1.38 億稀釋加權，非 GAAP 每股淨利潤將在 0.68 美元至 0.69 美元之間。平均已發行股數。

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.

我們預計第四季度的帳單將達到 3.39 億美元，使我們 24 財年的帳單成長指引達到 20%。這包括我們決定對合作夥伴網路進行更多投資的影響，其中包括將更多服務交付轉移到該管道。這一轉變的影響將是第四季的帳單減少約 300 萬美元。我們將 24 財年的自由現金流指引提高至 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，我們在第三季的各個方面都超越了我們的指導方針，並且我們從增量成長驅動因素（例如自我發現能力和新的人工智慧功能）中看到的訊號感到鼓舞。

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

現在讓我把電話轉給接線生。操作員？

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

（操作員說明）我們將回答 Scott Berg 和 Needham 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?

這裡真的很不錯。我想從比林斯方面開始。您看到季度環比增長有所加速，這說明了那裡的一些大型交易環境。但我們如何看待第四季的管道類型和需求趨勢？他們是否喜歡與您上一季或第二季所看到的類似的情況？或者您是否看到任何進一步向上或向下的變化？

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。這是皮特。當我們查看管道時，我們看到企業的實力基本上相同，一直持續到第四季度。顯然，這取決於交易的構成和完成這些交易。我們在第四季的預期是中小企業的擴張，我們在第三季看到的趨勢，即擴張率的下降，我們也將其以趨勢為基礎延伸到第四季。

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?

知道了。那裡有幫助。然後從後續的角度來看，您的業務利潤率在過去幾季有所下降。我知道這符合指導方針。相對於訂閱成長率略有下降，您的銷售和行銷費用略有上升。較高的銷售和行銷費用是否與您正在進行的合作夥伴支援活動有關？我們還應該注意其他一些增加的成本嗎？

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，當您考慮第三季的銷售和行銷費用並查看該趨勢時，請記住，第三季的銷售和行銷是我們在第三季舉辦的活動的函數，該活動是參與該支出的ENGAGE 活動。然後，我稱之為，我們根據需要對銷售和行銷機制的正確部分進行投資。

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

我們將回答富國銀行證券公司 Michael Berg 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?

我想以不同的方式詢問需求動態。在中小企業垂直領域之外的可再生環境中，有什麼值得指出的嗎？有改善嗎？與上半年有何關係？當我們展望 2024 年時，它的趨勢如何？

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.

我認為總的來說，我們的續訂保持相當強勁。我們上半場和下半場看到的環境沒有太大差別。但請記住，我們的業務在所有垂直領域都相當多元化。因此，我們從中受益，但我們沒有看到更新環境有任何重大變化。

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?

有幫助。然後是對功能的快速跟進。它已經連續幾個季度處於 30 左右——30 左右左右，而且它似乎是一種高價值主張類型的產品。也許你可以幫助我們思考——是否有什麼因素阻礙了這項技術的進一步逐步採用，是否是推動投資報酬率方程式、預算優先事項、宏觀和預算審查？我們可以用什麼方式來思考如何加速這種採用？

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.

我想當我們看到──這就是馬克。當我們審視推動這一領域成長的各個階段或要素時，我們下半年的重大舉措之一是如何在適當的時間讓人們更意識到這一點。所以這是自我發現努力的一部分。明年和未來幾年我們可以看到的一件事是，我們不僅如何增加發現，而且如何大幅加速這些類型事物的交易。因此，我們看到了這樣一個未來：整個投資組合對人們來說是可見的，可以被人們利用，也可以被人們以各種方式進行交易，無論你是與合作夥伴交談，無論你與直接代表交談還是你自己在線上進行。我們繼續看到光圈打開。但遊戲的第一階段是如何出現在人們面前。我認為我們下半年在這方面取得了很好的進展。

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

讓我們回答摩根士丹利的喬許貝爾提出的下一個問題。

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.

想要跟進能力，馬克。只是想知道，例如，您認為功能可以適用於您的客戶群的百分之多少。我認為 1/3 的收入是由 6% 的客戶產生的。只是想知道這個數字可以去哪裡。

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。我——我想我是這方面永遠的樂觀主義者。我認為這與我們社區中的每一個人有關。我們擁有廣泛的產品組合。它與能夠將資訊和數據帶入我們的系統、整合我們的系統、視覺化我們的系統、共享我們的系統有關。這些都是我們平台上幾乎每個人都會做的事情。我認為，當你降低成本時——降低體驗所需的門檻，並為人們提供多種選擇，如何以非常低的成本效益方式進行交易，從而開始真正大規模的企業部署，滲透率應該會達到兩位數。是的，我認為在接下來的 5 年框架內，我認為是 50 年，我們的中位客戶應該從我們這裡購買能力。

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。然後只想再深入研究第三季、第四季的比林斯。就像您在第三季度通過更簡單的比較確實展示了一些不錯的優勢和加速。第四季的競爭再次變得更加容易，但指導意味著一點減速，例如甚至根據合作夥伴的轉變進行調整。那麼在第三季和第四季之間還有什麼需要注意的嗎？或者 Q4 只是在指導中嵌入了正常類型的審慎態度？

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.

喬希，我們今年的做法非常一致。每個季度的表現，無論方向如何，都沒有實質改變我們對今年的看法。在一個季度內，出現變化的原因有很多。這是帳單的時間。這是交易的混亂。這是季節性差異，在全年期間往往會有所抵消。我們根據本季看到的實際數據提供評論，但我們對今年的看法非常穩定。我們認為，考慮到我們過去兩個季度的表現，我們希望第四季度的設定能達到我們 20% 的全年營收指南。這就是我們的看法。

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

我們將回答傑克·羅伯格和威廉·布萊爾提出的下一個問題。

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，既然這些人工智慧解決方案已經處於測試階段並已交付客戶幾個月，那麼對這些解決方案的早期回饋是什麼？您確實認為有哪些功能需求量大？

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.

這真有趣。當我與已經推出人工智慧功能的同行執行長交談時，我認為市場所看到的是，我認為人們正在為其中一些功能分配更高的價值，但頻率較低，使用率較低。

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.

因此，當我看到一家公司說，嘿，我們真的很重視透過高級公式或內容生成來產生配置的能力，這並不是我們每天看到的 10、50、100 次的錘鍊。我們看到我們的大域中每天都會創建一個配置。因此，並不是每個用戶都整天使用我們，但這實際上非常令人鼓舞，因為人們一直在使用它。我認為，隨著表面積的增長，不僅來自於創建邏輯，而且還有一個助手，有能力進行洞察，並有能力透過人工智慧機制找到模板，我認為頻率將會攀升。但我想說的是，在與我交談的同行中，有很多投資都在那裡。而且我認為使用頻率可能比人們預期的要低。但當我查看我們收到的回饋時，無論是正面的、中立的還是負面的，幾乎都是中立或正面的。這是一個非常好的領先指標，告訴我們繼續在這一領域進行投資。

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.

進入第一季將是我們第一次在企業產品中提供一些可用的東西，這些東西可以真正呈現給企業用戶，讓他們可以非常清楚地與您聯繫起來。與過去一樣，企業計劃通常與安全功能以及 IT 和治理真正重視的事物相關聯，這將是首次嘗試為業務用戶提供他們可以興奮的東西。再說一次，超級早期。我真的很高興看到對此的中立或正面的回饋。這就像這場比賽的第一局。但同樣，不——當然，這款遊戲正在全力進行中。

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?

很有幫助。然後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推出。但就時間軸而言，在讓這些解決方案真正通用並交到客戶手中並真正開始追加銷售之前，您認為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.

我認為特別是在這個領域，有兩個因素。第一，對許多人來說，這是他們第一次與人工智慧體驗互動。因此，正確的重要性，讓客戶對這種互動充滿信心，我們非常關心這一點。因此，當我們考慮將其中一些東西留在烤箱中時，如果你願意的話，再多待一兩個月，我們認為這是一個非常明智的舉動。因此，我們將在第四季結束之前推出前 2 項技能。我認為對於這些技能中的每一項，重要的是要真正理解該技能的反饋和交互是什麼，而不是直接拖曳說，好吧，它對前3 個技能效果很好，讓我們為後面的3 個技能做同樣的事情吧。下一頁 5. 我認為你確實必須獨立起訴這些人。

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。因此，當我查看一些最大的組織時，我們有大約 5,000 個組織參與了早期採用者計劃，涵蓋了數萬名使用者。有一些組織——即使我們採用了令人難以置信的人工智慧方法，就像我們不會跨越邊界傳送資料一樣。即使在這些情況下，採購團隊和安全團隊也會格外小心，以真正了解其內部政策為何。因此，我們實際上有一些採取非常保守方法的最大客戶表示，我們會等到 EAP 退出，因為他們正在定義內部控制。我認為很多客戶對此方法都非常謹慎。

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

我們將接受古根漢的約翰·迪福奇提出的下一個問題。

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.

皮特，我讚賞相對於中小企業擴張惡化的謹慎指引。但您能否對本季的線性情況發表評論？請讓我們了解一下 11 月和 12 月初的情況。

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。因此，第一件事是我們每季總是有季節性。與所有三個月相比，我們的第一個月是最小的。因此，當我們經歷這個季度時，我們確實看到了我所說的企業實力的增強。另一方面，我們確實看到中小企業的擴張繼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。在企業方面，11 月符合我們的預期。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。我想，馬克，您在準備好的有關高級功能自我發現的評論中提到了這個例子。您能為我們提供一些指標來說明我們應該如何思考這一點，以推動未來的發展嗎？

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，當我們用第四季度的業績來描繪來年的圖像時，我們可能會提供更多的紋理。我的意思是，現在我們正在考慮這一點在本季度貢獻近 100 萬美元的預訂量。這是一個偉大的綠芽。關於人們如何看待這些事情，我們得到了非常正面的回饋。但我想說還是很早的幾局。我們談論的是數百次轉換試驗，累計金額略低於 100 萬美元。但我的意思是，我認為再過一個季度，我們就會更有信心，並且能夠在未來的一年裡實現這一​​目標。

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

我們將回答花旗銀行史蒂夫恩德斯的下一個問題。

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?

我想我想問國際機會。我的意思是很高興看到數據駐留擴展到澳洲。但我想，您如何考慮更廣泛的國際倡議？是否會進行進一步的市場投資、行銷活動或合作夥伴建設來抓住這個機會？

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，這是皮特。所以我們認為－國際化對我們來說是一個巨大的機會。它占我們收入的 16%，顯然也是我們追求的領域之一。但我們認為它是我們透過 PLG 對產品所做的所有更改的組合，使該產品更容易被發現、能夠擴展等等。另一方面，我們也在投資進入市場的能力，並結合我們所處理的客戶希望如何處理他們的數據。因此，可以將其視為資料中心的市場推廣。因此，我們將繼續在國際層面進行投資。但就像我們在這裡的業務一樣，這需要一段時間，因為我們的客戶從小規模開始，然後與我們一起擴展。這就是您應該看到的軌跡。

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。完美的。這是有用的背景。然後，在淨保留率方面，我認為至少對於您對財年指南的看法來說，有一點下降。我想有什麼要說的嗎？那裡的增量差異是什麼樣的呢？然後，我想，其次，我們應該如何考慮可能觸底的位置？

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。因此，史蒂夫，當我們考慮淨美元保留率時，一般來說，季度之間的情況幾乎是一致的。唯一的區別是增量 SMB 擴展，這就是您在我們列出的數字中看到的內容。現在這是第一部分。你要求的第二部分，這個的方向是什麼，我們有一個重要的第四季度要做——有點去執行，而不僅僅是我們需要經歷的總美元。但馬克談到的這些萌芽，我們想看看它們如何發揮作用。所有這些，再加上我們在第四季度看到的環境，將真正告訴我們 25 財年的淨美元保留率會是什麼樣子。

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

我們將接受摩根大通的 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。 Mark，根據您與客戶的對話，您認為到目前為止 2024 年的企業預算是如何制定的？您認為錢包可能會稍微寬鬆一點還是不會那麼寬鬆？

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.

我認為這在很大程度上取決於提供者連接價值並幫助了解他們如何實現該價值的能力。我認為——這可以追溯到三年前，以一種非常明顯的方式，我們在一個組織中的地位越高，我們與他們談論的項目越大，就越需要將其連接到一個他們擁有的優先追求，並且能夠闡明他們如何在一定的時間範圍內實現這一利益。因此，當我想到我們的投資方向時，不僅從產品的角度或合作夥伴的角度考慮，而且從我們對如何交付價值的闡述來看，這直接關係到我們的錢袋是收緊還是放鬆。所以我認為，確實有一些宏觀的事情需要人們注意，但有一長串在人們控制範圍內的事情可以幫助調整這一點。

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。還有一個後續行動。您如何看待明年的銷售能力？你有能力實現你的計劃嗎？您希望提高產能嗎？那麼，在明年利潤率可能改善的背景下，我們該如何考慮這一點？

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，這是皮特。因此，當您想到銷售能力並想到需要銷售能力時，我們會想到這一點，因為我們僱用了一支訓練有素的銷售專業人員團隊。我們繼續投資以提高他們的能力。這是我們幾個季度以來一直在努力的方向。我們看到第一種——第一次射擊只是這些代表的能力和生產力的提升。這是根本。現在，我們會在改進銷售流程和特定角色時添加資源嗎？我們將。但我認為這不會對利潤率造成巨大拖累。因此，當您查看 25 財年和利潤率時，我們尚未就此提供指導。但我描述的是整體利潤率，你應該會看到它們繼續改善。改善所採取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 (UBS) 泰勒麥金尼斯 (Taylor McGinnis) 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.

很抱歉再次按下帳單。但這只是對先前提出的問題之一的一個後續行動。皮特，我想你提到過時間上可能會有四分之一的變化，我知道我們在賬單上都欣賞這一點。但考慮到第三季的強勁勢頭，您是否看到任何從第四季提前到第三季的更新？然後也許你可以談論到目前為止你所看到的預訂線性度，以及是否有後端負載增加的趨勢，如果是的話——指南中是否有任何假設。

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.

所以泰勒，本季沒有任何異常情況。每個季度都會發生正常的拉動和推動，但本季沒有發生任何異常情況。我想說的是，我們看到預訂線性度非常一致。沒有什麼大的趨勢可以報告。我想說的是，我們所看到的預訂量的唯一增量（我稍微指出了一點）是在中小型企業擴張方面。因此，我們看到第三季這些擴展的一些退化。我們將這種趨勢延續到第四季度，假設這種趨勢持續下去。

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?

知道了。這真的很有幫助。對我來說最後一個是——非常感謝賬單可能存在時間和季度變化，有時該指標可能會很嘈雜。但我想如果你看看過去 12 個月，你會發現它的成長速度在 20 左右。但 ARR 成長在 20 世紀 20 年代中期一直保持不變，也許是這個時期的低端。因此，正如我們思考基礎業務正在做什麼以及你們所看到的勢頭一樣，當我們展望未來時，有沒有想過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，當您想到 ARR 中的帳單時，我認為它們都是不同的，但當您完成這一年時，它們都會引導您得出相同的答案。即使答案並不相同，它們也非常接近。因此，當我考慮季度變化時，我傾向於更多地依賴 ARR，因為它具有更好的感覺——時間因素不太明顯。但當你考慮全年時，它們都是一樣的。

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

我們將回答蒙特利爾銀行基思巴赫曼 (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?

我想問兩件相關的事情。皮特（Pete），一個是微觀問題，然後是一個更大的問題。在微觀上，當您談論 SMB 時，您會假設退化仍在繼續。但需要澄清的是，您是假設情況會變得更糟還是保持不變？然後對於我的後續問題，我會成功地問他們。當你想到新一代人工智慧的機會時，我在西雅圖參加你的客戶活動，似乎很興奮。它能否為 25 年 1 月財年結束時的 ARR 成長和帳單成長做出貢獻？您認為這實際上是潛在成長的一個促成因素嗎？或者您認為，到那時還會有更多的發現嗎？ Pete，當我們從需求角度建立 25 財年模型時，您希望我們考慮的任何其他問題，您已經解決了利潤問題，但您希望我們在提供正式指導之前記住的任何其他問題？

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，我會按照你提出的問題來回答你的問題。您提出的第一個問題是關於中小型企業的擴張，我們假設第四季的情況持續惡化。因此，我們假設第四季情況會適度惡化，沿著趨勢線。這是第一部分。關於 25 財年 ARR 假設中的人工智慧機會的問題的第二部分，現在提出這個問題還為時過早，因為我們有一些客戶參與了 EAP 計劃。我們得到了良好的正面回饋。但我認為，在我們完成了又一個季度的反饋之後，當我們準備將其放入我所說的 GA 中時，我認為我們將開始對它的樣子有一點了解。所以我認為現在提出這個要求還為時過早。

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

好的。 Pete，您希望我們在對 25 財年的需求方進行建模時考慮其他什麼問題嗎？

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 年還為時過早，但目前沒有什麼具體的內容可以提出。

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

我們將回答 Terry Tillman 和 Truist 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。我有一個簡短的問題，也許是馬克，首先要問你一個關於自我發現的問題。我認為你們為我們帶來了 100 萬美元的預訂量或帳單，你們稱之為早期的綠芽。考慮到您在那裡所做的工作以及最初在那裡進行的所有試驗，我的意思是，您是否預計第四季度的收入會從 100 萬美元的水平顯著增加？那會怎麼樣呢？您是否只需透過更多試驗將更多種類的種子種在地裡，或者您正在完成現有試驗的流程，或者甚至在自我發現中添加更多功能？然後我有一個後續行動。

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，特里。問題在於你不僅如何提供某人使用的能力，而且如何幫助現有客戶實現這一點，對嗎？它將它從被利用轉變為被交易。這些就是我們正在學習的動作。因此，對於已經完成的第一批交易，我們會想，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東西。當我們將接觸過它的人數從數萬名接觸過的人擴展到超過 100,000 個組織時，我預計這種摩擦會減少。所以我會——我打賭這個營地的事情會繼續改善。

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.

我認為另一件事是，當我們考慮加入越來越多的投資組合時，我們將有更多的擊球手。因此，當組織嘗試一項功能時，您有多種嘗試機會。這不是一個組織，而是該組織內的人員。因此，即使您錯過了與個人、組織的第一次機會，他們的鄰居也可以開始嘗試該功能。因此，這是向組織推銷產品並提供價值的反覆機會。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.

知道了。很高興聽到這個消息並且下注結束。我的後續問題，我不知道這是否適合你或皮特。但在服務、合作夥伴支援方面，我們看到一些帳單將流向合作夥伴，所以這是可以解釋的。我實際上對銷售支援感到好奇。所以我將圍繞這個問題。去年，您的 100 萬美元客戶數量大幅增加，達到 59 個，數量很多。您已經有客戶向您支付 400 萬美元。我想你在季度電話會議上提到過，我認為你的目標比這更大。對我來說，這對於合作夥伴生態系統來說似乎很有趣，無論是 GSI 還是其他。因此，我想更多地了解如何與潛在的不同類型的合作夥伴一起進行銷售支援和影響新業務。

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。特里，我確實看到了兩種截然不同的合作高度。一是廣泛的基礎，數百名合作夥伴前來參與，並希望進一步明確我們建立服務線的意圖與明確支持他們的意圖。無論是在美國還是在以合作夥伴為導向的國家，這都是一個非常令人興奮的成長機會。我認為這與我們與 GSI 的入市行動非常不同，其中許多是我們的大客戶。

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.

我們如何與他們一起進入市場，既是作為客戶，也是在他們向客戶提供服務時利用 Smartsheet。因此，這實際上是一種多管齊下的關係，我們作為客戶為他們提供服務。我們與他們合作，將其介紹給他們的客戶，然後找出他們可以在 Smartsheet 平台的支援下建立業務簿的方法，以繼續這種關係。這與偏遠地區的下一個最新合作夥伴確實不同，該合作夥伴的目標是中小企業，這對他們來說仍然很有價值，但同樣，不同的行動。因此，我們的企業團隊和服務團隊中有不同的人員針對 GSI。我們還有廣泛的合作夥伴計劃，可以滿足更多人群的需求。

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.

我是伊森布魯克 (Ethan Bruck) 替補亞歷克斯祖金 (Alex Zukin)。恭喜你取得了不錯的數字。有點將第四季度視為最大的續訂期，我只是好奇您是否看到客戶行為有任何變化，無論是 - [讓我們用術語來說]較小的擴張。一代人工智慧是否在更新時在這種升級中發揮了更多作用？我只知道我們有第四季 116% 的指南。只是好奇這些對話是如何在第四季開始展開的。然後我有一個後續行動。

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.

伊森，我認為那些擴展對話和那些更新對話的進展沒有什麼不同。我認為這沒有什麼不尋常的，因為人工智慧和所有這些都還處於早期階段。請記住，它處於 EAP 中，客戶數量有限。所以這還沒有進入對話，因為當你想到續約並想到所有這些事情時，它直接關係到我將如何處理它？它將如何進入我的環境？目前我們可能已經遠離那個地方了。

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。我接到你了。我想，皮特，我知道你並沒有明確地指導明年的工作。但我想，當我們考慮以無風險或保守的方式來思考明年時，這有助於我們制定數字。我想，一種建築前景的無風險方式有點低於第四季度指引中所隱含的內容，這樣想是否公平？

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，現在宣布明年還為時過早，因為第四季是一個重要的季度。我們必須去執行它。我認為我們都在努力確保我們在第四季度獲得最好的結果。這是其中的一部分。另一部分顯然是這樣一個事實，即我們投入的很多東西就像是最近才剛剛投入使用，如果你願意的話。因此，我們必須讓這些事情發揮作用，看看它們會做什麼，才能真正能夠對 25 財年的情況有一個清晰的認識。

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

我們將透過 Canaccord 回答 DJ Hynes 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，當我回想起 IPO 時，我記得我們曾經談論過 5,000 美元作為您通常會看到客戶支出開始上升的門檻。也許這仍然是正確的。但顯然，今天的業務已經大不相同，規模也很大。當您研究中端市場或低端企業時，無論您希望如何限定它，該群體中是否存在支出閾值或您看到的支出通常開始再次上升的任何其他訊號？還是更高的線性進展？

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。與 5 年前相比，我們的參考系發生了怎樣的變化，這不是很有趣嗎？昨天我和 Pete 談論了我們將客戶從 50 萬美元提升到 100 萬美元的平均時間。再說一次，這與我們在 IPO 中談到的完全不同。我不會指出一個拐點，因為這場比賽有很多階段。我們看到我們的資金從 50 萬美元加速增加到 100 萬美元。我們再次看到，價值 100 萬美元的客戶數量幾乎翻了一番。因此，我認為，每當一家公司試圖專注於轉折點時，也被稱為在關注更高拐點時錯失了機會。

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.

因此，正如我剛才談到的我們如何看待合作夥伴生態系統一樣，我們確實在努力認識到，您可以在多個點上發揮能量或為客戶提供價值，這將迫使他們採取行動更高更快。不要將其視為一個，而是將其視為您的大型企業中的一位，新興企業中的一位，中等專業中的一位，新興客戶中的一位，並將這些都視為重要的。所以，我認為我們在過去 5 年裡學到了很多東西，我認為我們正在努力安排我們的資本和資源來實現這些目標。

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。說得通。然後也許是對特里關於自我發現的問題的快速跟進。因此，您在回答他的問題時提到，您將在該動議中投入更多功能。僅從技術角度來看，既然您已經完成了其中幾個產品，那麼啟用下一個產品進行自我發現是否會更容易？

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，一點沒錯。我認為，當我們考慮自我發現時，這不僅僅是啟用某個功能，而是如何為負責管理該環境的人員提供信心、可見性和控制這些元素的能力。因此，我們正在管理控制台中創建這些框架和平視顯示器，以便管理員和預算持有者可以擁有非常高的信心並非常有效地管理這些情況。一旦設定了該框架，添加下一個框架，您就不必重建該基礎設施。我們正在以模組化的方式建構它，並建立在一些早期基礎投資的基礎上。

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

我們將接受 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?

我是布倫特·希爾的約翰·拜恩。我的第一個問題是，正如您所注意到的，您透過您的產品與大型企業進行了非常好的活動。我想知道是否有任何值得注意的司機可以叫出來？有什麼真正有幫助的——我不知道是否有——來自 ENGAGE 會議的任何不尋常的推動力？

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的實力。我認為這是解決方案的用戶吸引力本質，以及我們在該領域所做的支持，以建立這一點。第三季發生的這些交易不僅僅是第三季發生的事情或 ENGAGE 發生的事情的結果。這是一系列的操作，從一個機會開始，為客戶建立一個引人注目的價值，然後隨著時間的推移增加這個機會，然後找到正確的方式來描述該價值以完成交易。這就是我們所看到的。我不認為這是一個特殊的靈丹妙藥，只是貫穿其中。

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?

好的。這很有幫助。然後就後續行動而言，在您的指導意見中，您談到了使服務能夠完成更多的服務工作並對帳單產生 400 萬美元的影響。想知道這是否已包含在先前 20% 成長的全年指南中？或者這可能是一種較新的開發？

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

這是一個較新的開發項目，因為我們特別指出了它。因此，將其視為對先前指導的增量。

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

我們將回答 RBC 資本市場 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 Rishi Jaluria 的 Chris Fountain。因此，您在準備好的發言中提到了一項非常大的擴張協議，並且還有進一步的機會與該組織做更多的事情。所以我只是想知道，他們仍在評估哪些功能？或者是什麼真正推動瞭如此規模的客戶的下一步擴張？

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.

關鍵的驅動因素是我們正在為他們的一部分員工提供服務。我們在與他們達成數百萬美元的多年協議時所做的一件事不是打折 90%，放棄所有用戶，而是認真考慮這些年來我們如何與他們一起成長。當我觀察該客戶，以及他們幾年前如何以 5,000 美元或 6,000 美元的客戶身份開始與我們合作以及他們今天的處境時，我們將其視為未來許多年的上升軌跡。但關鍵的驅動因素是，仍有大量的優秀人群尚未使用 Smartsheet 平台。好的事情是，一旦你有了飛行操作和使用它的產品團隊，你就有了這些例子，然後你可以向這些相鄰的團隊展示。我認為，當你說該運營商的語言時，他們更有信心效仿的可能性就會上升。這就是我們在其他大型帳戶中看到的情況。

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。只是快速跟進。回到中小企業這邊的宏觀環境。有哪些行業仍然面臨更大的壓力，或者相反地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，當我想到垂直焦點時，我們看到的是我們在我所說的零售、教育垂直和一些政府方面看到了良好的實力。顯然，政府是一個相當大的季度——第三季對政府來說是一個相當大的季度。在我所說的方面，我們看到了一定程度的壓力，我所說的壓力來自能源、公用事業和科技領域。這些是我們看到的垂直切片。但總的來說，在整個中小企業中，我們全年都看到了非常好的標誌成長。這保持一致。我們已經在中小企業擴張中看到了這種壓力。所以只是為了確保它被解析出來。

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。我想將電話轉回給亞倫·特納，以便他發表補充或結束語。

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

偉大的。謝謝麗莎，也謝謝大家今天加入我們。我們將在下個季度再次與您交談。

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。您現在可以斷開連線。