Smartsheet Inc (SMAR) 2024 Q4 法說會逐字稿

Good afternoon. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Smartsheet Fourth Quarter Fiscal 2024 Earnings Conference Call. Today's conference is being recorded. (Operator Instructions)

午安.我叫奧德拉，今天我將擔任你們的會議操作員。此時，我歡迎大家參加 Smartsheet 2024 財年第四季財報電話會議。今天的會議正在錄製中。 （操作員說明）

At this time, I would 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 Aaron Turner。請繼續。

Thank you, Audra. Good afternoon, and welcome, everyone, to Smartsheet's Fourth Quarter of 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.

謝謝你，奧德拉。下午好，歡迎大家參加 Smartsheet 2024 財年第四季財報電話會議。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。

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.

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 and/or adversely. All forward-looking statements made during this call are based on information available to us as of today, and we do not assume any obligation to update these statements as a result of new information or future events, except as required by law.

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和/或不利的差異。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。

In addition to the U.S. GAAP financials, we will discuss certain non-GAAP financial measures. Reconciliation to the most directly comparable U.S. GAAP measures is available in the presentation that accompanies this call, which can also be found on our Investor Relations website.

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與最直接可比較的美國公認會計準則措施的對賬，也可以在我們的投資者關係網站上找到該簡報。

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 fourth quarter earnings call for fiscal year 2024. Q4 was the culmination of a year where we demonstrated our ability to grow in challenging macro conditions while making considerable progress on our profitability and free cash flow. We crossed the $1 billion ARR threshold in Q4, within the original time frame we set at our first Analyst Day back in 2018. And we achieved this milestone while also expanding operating margins by over 1,500 basis points and achieving Rule of 40 for the second consecutive year.

謝謝你，亞倫，大家午安。歡迎參加我們2024 財年第四季的財報電話會議。第四季是這一年的頂峰，我們展示了我們在充滿挑戰的宏觀條件下實現增長的能力，同時在盈利能力和自由現金流方面取得了長足進步。我們在2018 年第一個分析師日設定的原始時間範圍內，在第四季度突破了10 億美元的ARR 門檻。我們實現了這一里程碑，同時也將營業利潤率擴大了1,500 個基點以上，並連續第二次實現了40 規則年。

Our performance in Q4 was highlighted by our continued strength in the enterprise, coupled with strong progress on our key growth opportunities. In Q4, 98 customers expanded their Smartsheet ARR by more than $100,000. We now have 65 customers with ARR over $1 million, up from 45 a year ago. And we ended the quarter with annualized recurring revenue with $1.031 billion and more than 14.3 million Smartsheet users.

我們第四季的業績突顯在我們在企業領域的持續實力，以及我們在關鍵成長機會方面的強勁進展。第四季度，98 名客戶的 Smartsheet ARR 增加了超過 10 萬美元。現在，我們有 65 個 ARR 超過 100 萬美元的客戶，而一年前有 45 個。本季結束時，我們的年化經常性收入為 10.31 億美元，Smartsheet 用戶超過 1,430 萬。

In Q4, we expanded with customers such as Nutanix, University of Southern California, Genesis Motor America, the city of San Jose and Dairy Queen, among others. This past quarter, we saw significant expansion with a multinational information technology company. Smartsheet has been used within the marketing and sales departments at the company for a number of years. After a detailed RFP process for an organization-wide collaborative work management solution, Smartsheet was selected over competitors for enterprise-grade scale and world-class security.

第四季度，我們擴大了與 Nutanix、南加州大學、Genesis Motor America、聖荷西市和 Dairy Queen 等客戶的合作範圍。上個季度，我們看到一家跨國資訊科技公司的大幅擴張。 Smartsheet 已在公司的行銷和銷售部門使用多年。在針對組織範圍內的協作工作管理解決方案進行詳細的 RFP 流程之後，Smartsheet 因企業級規模和世界一流的安全性而從競爭對手中脫穎而出。

Adoption has been high with a growing demand for licenses and implementation across marketing operations, M&A and more. These units have been leveraging the full breadth of premium capabilities of Smartsheet to replace manual processes, increase efficiency and improve collaboration. We had an expansion deal with a European-based leading global science and technology company. Their need for enterprise-grade security and governance was key to our expansion deal that included an upgrade to Advance Gold. The company's IT group underwent an extensive evaluation to consolidate their project management needs under one solution across their 3 main business divisions of life sciences, electronics and health care. The company selected Smartsheet and has consolidated their thousands of users under a one Smartsheet program and a transformation of our partnership with them. Going forward, the company will extend the use of its Smartsheet use to other units in their drive towards efficiency and optimization.

隨著行銷營運、併購等領域對授權和實施的需求不斷增長，採用率一直很高。這些部門一直在利用 Smartsheet 的全面進階功能來取代手動流程、提高效率並改善協作。我們與一家歐洲領先的全球科技公司達成了擴張協議。他們對企業級安全和治理的需求是我們擴張協議的關鍵，其中包括升級到 Advance Gold。該公司的 IT 團隊進行了廣泛的評估，將其生命科學、電子和醫療保健 3 個主要業務部門的專案管理需求整合到一個解決方案中。該公司選擇了 Smartsheet，並將其數千名用戶整合到一個 Smartsheet 計劃中，並轉變了我們與他們的合作關係。展望未來，該公司將把 Smartsheet 的使用擴展到其他部門，以提高效率和最佳化。

We saw significant expansion with a leading global entertainment and ticketing company. Previously, the team relied on very manual processes to market the high-profile and high-budget tours they manage all around the world. After engaging with our customer outcomes journey team, the customer discovered how Smartsheet could drive greater value by automating repeatable work, efficiently adapting to changes and improving communication. Now the company is using a tailored solution to manage all marketing operations in regards to their concert tours and artists and benefiting from an integration with their Salesforce-based system of record. Going forward, the company has planned additional phases of implementation to expand the transformation and efficiency already realized with the marketing and tour management solution to other parts of the organization.

我們見證了一家全球領先的娛樂和票務公司的顯著擴張。此前，該團隊依靠非常手動的流程來行銷他們在世界各地管理的高知名度和高預算的旅遊。在與我們的客戶成果旅程團隊接觸後，客戶發現 Smartsheet 如何透過自動化可重複的工作、有效地適應變化和改善溝通來驅動更大的價值。現在，該公司正在使用客製化的解決方案來管理與音樂會巡迴演出和藝術家相關的所有行銷運營，並受益於與基於 Salesforce 的記錄系統的整合。展望未來，該公司已計劃實施更多階段，以將行銷和旅遊管理解決方案已實現的轉型和效率擴展到組織的其他部門。

The ability to rapidly scale was a key element to a recent international expansion at an APJ-based multinational corporation that provides digital transformation consulting to enterprises. The unit focused on their Middle East delivery region needed a scalable solution for reporting on financials across their portfolio of projects, which involved multimillion-dollar contracts with their customers. We worked with a key channel partner to deliver solution leveraging the Smartsheet platform. This initial solution will support one regional delivery team with a plan to scale to all their global delivery teams.

快速擴展的能力是一家總部位於亞太及日本地區的跨國公司最近進行國際擴張的關鍵要素，該公司為企業提供數位轉型諮詢。該部門專注於中東交付區域，需要一個可擴展的解決方案來報告其專案組合的財務狀況，其中涉及與客戶簽訂的數百萬美元的合約。我們與主要通路合作夥伴合作，利用 Smartsheet 平台提供解決方案。這個初始解決方案將支援一個區域交付團隊，並計劃擴展到所有全球交付團隊。

FY '24 was a big year for our platform. In the area of gen AI, our first 2 AI features became generally available to customers on our enterprise plan at the beginning of last month. The first capability allows our customers to create tailored formulas from their input, speeding up data-driven decisions. The second interprets customer data for clearer text summaries and translations. The customer response and usage of free AI has been strong. And since the beginning of February, more than 1/3 of our enterprise customers have leveraged these new tools.

24 財年對我們的平台來說是重要的一年。在新一代人工智慧領域，我們的前 2 個人工智慧功能已於上月初在我們的企業計畫中普遍向客戶提供。第一個功能允許我們的客戶根據他們的輸入創建客製化的公式，從而加快數據驅動的決策。第二個解釋客戶資料以獲得更清晰的文字摘要和翻譯。客戶對免費人工智慧的反應和使用非常強烈。自 2 月初以來，我們超過 1/3 的企業客戶已經使用了這些新工具。

Also in FY '24, we launched our free plan and the self-discovery of our capabilities. Both continue to perform well. And while contribution to our Q4 results was small, we are encouraged by the compounding growth rates we're seeing from these initiatives. Our free plan, which launched at the beginning of FY '24, is seeing steady growth. Through the fiscal year, our free plan has grown across thousands of domains. And in January, we added 500 paying new customers via the free plan, a new monthly record.

同樣在 24 財年，我們推出了免費計劃並自我發現我們的能力。兩者都繼續表現良好。雖然對我們第四季業績的貢獻很小，但我們對這些舉措所看到的複合成長率感到鼓舞。我們的免費方案於 24 財年年初推出，目前正在穩步成長。在本財年中，我們的免費方案已擴展到數千個領域。 1 月份，我們透過免費方案增加了 500 名付費新客戶，創下了新的月度記錄。

In Q4, over $2 million of capability bookings were the result of self-discovery trials. This is up from less than $1 million in Q3, and this motion continues to drive exposure of our capabilities to more and more customers. Nearly half of our Q4 self-discovery sales were with customers who purchased the capability for the first time. Given the success, we will apply this approach to additional capabilities in FY '25.

第四季度，超過 200 萬美元的能力預訂是自我發現試驗的結果。這比第三季的不到 100 萬美元有所增加，這項舉措繼續推動我們的能力向越來越多的客戶展示。第四季自我發現銷售額的近一半來自首次購買該功能的客戶。鑑於取得的成功，我們將在 25 財年將此方法應用於其他功能。

As I mentioned earlier, we surpassed $1 billion in ARR in Q4. We got to this point by focusing on our customers and building an enterprise-grade platform that can scale to their most demanding needs. I'd like to call out our Chief Revenue Officer, Mike Arntz, who is retiring today. When Mike joined Smartsheet over 7 years ago, our ARR was under $100 million, and our average customer contributed less than $1,000 per year. During Mike's tenure, our ARR and contributions per customers has grown by 10x. I'm grateful for his service and wish him all the best in retirement. Mike will remain on as a consultant through mid-May to support the transition to his successor.

正如我之前提到的，我們第四季的 ARR 超過了 10 億美元。我們之所以能做到這一點，是因為我們專注於客戶並建立了一個可以擴展以滿足他們最苛刻需求的企業級平台。我想感謝我們的首席營收長 Mike Arntz，他今天即將退休。當 Mike 七年前加入 Smartsheet 時，我們的 ARR 還不到 1 億美元，我們的平均客戶每年貢獻不到 1,000 美元。在 Mike 任職期間，我們的 ARR 和每位客戶的貢獻成長了 10 倍。我感謝他的服務並祝他退休後一切順利。麥克將繼續擔任顧問直至五月中旬，以支持向繼任者的過渡。

As we enter the post-$1 billion ARR growth phase of the company, the strategy that underpins our go-to-market and product and innovation will be refined and expanded. Executing this strategy will be a leadership team consisting of proven executives, each motivated for the next tier of growth and customer success. Today, we announced that Max Long has joined Smartsheet to serve as President of Go-to-Market. Max has over 3 decades of experience leading commercial teams for global tech companies with diversified offerings, including Microsoft and Adobe and most recently, NetApp, where he served as Chief Commercial Officer. We will be unifying go-to-market operations under Max and unifying product and innovation under Praerit Garg, newly appointed President of Product & Innovation.

隨著我們進入公司年收入 10 億美元後的成長階段，支撐我們進入市場、產品和創新的策略將會得到完善和擴展。執行這項策略的領導團隊將由經驗豐富的高階主管組成，每個人都致力於實現下一層成長和客戶成功。今天，我們宣布 Max Long 已加入 Smartsheet，擔任上市總裁。 Max 擁有 30 多年領導商業團隊的經驗，曾為提供多元化產品的全球科技公司領導商業團隊，其中包括 Microsoft 和 Adob​​e，以及最近在 NetApp 擔任首席商務官。我們將在 Max 的領導下統一市場運營，並在新任命的產品與創新總裁 Praerit Garg 的領導下統一產品和創新。

Prior to joining Smartsheet in 2019, Praerit served in leadership roles at Microsoft and Amazon. And under his product leadership at Smartsheet, our platform has been recognized as the leading enterprise platform in work management, serving the largest number of sophisticated scale deployments in the category. We're setting the foundation for the next era of profitable growth with proven, more efficient go-to-market motions paired with enterprise-grade product innovation informed by decades of data, work patterns and customer use cases. We see a significant opportunity to win additional market share by delivering AI-enhanced, collaborative workflow solutions for customers. I see it as a tremendous opportunity representing multiple vectors of growth.

在 2019 年加入 Smartsheet 之前，Praerit 曾在 Microsoft 和 Amazon 擔任領導職務。在他對 Smartsheet 產品的領導下，我們的平台被公認為工作管理領域領先的企業平台，為該類別中數量最多的複雜規模部署提供服務。我們正在為下一個獲利成長時代奠定基礎，透過經過驗證的、更有效率的上市行動，以及基於數十年資料、工作模式和客戶用例的企業級產品創新。我們看到了透過為客戶提供人工智慧增強型協作工作流程解決方案來贏得更多市場份額的重大機會。我認為這是一個巨大的機會，代表著多種成長方向。

In the enterprise segment, productized and scalable no-code workflow solutions are undercutting more expensive, slower to deploy alternatives. Regardless of the macro environment, significant demand exists for more efficient solutions to power critical workflows. Smartsheet is well positioned to capture this opportunity due to our category-leading scalability, no-code platform and enterprise-grade security.

在企業領域，產品化和可擴展的無程式碼工作流程解決方案正在削弱更昂貴、部署速度更慢的替代方案。無論宏觀環境如何，都存在著對更有效的解決方案來支援關鍵工作流程的巨大需求。憑藉我們領先的可擴展性、無程式碼平台和企業級安全性，Smartsheet 能夠很好地抓住這個機會。

In an effort to drive performance, particularly in the SMB segment, we will deploy our simplified design, pricing and onboarding experiencing during the course of the year. We are on a mission to remove friction and maximize self-directed experiences for our customers to enable faster time to value. We are taking the right steps to execute our strategy and to bring our enterprise-grade work management platform to organizations of all sizes all around the world. We are well positioned for our next phase of growth to $2 billion and beyond.

為了提高績效，特別是在中小企業領域，我們將在這一年部署簡化的設計、定價和入門體驗。我們的使命是消除摩擦並最大限度地為客戶提供自主體驗，從而更快地實現價值。我們正在採取正確的步驟來執行我們的策略，並將我們的企業級工作管理平台帶給世界各地各種規模的組織。我們已做好充分準備，下一階段的成長目標將達到 20 億美元及以上。

Now let me turn the call over to Pete.

現在讓我把電話轉給皮特。

Thank you, Mark. Our performance in FY '24 demonstrated our ability to drive durable growth with improving profitability despite a challenging business environment. We outperformed our guidance in Q4. However, similar to prior quarters, we continue to see tighter domestic spending tied to the current macro environment negatively impact expansion, particularly in the SMB segment of our business. This served as a headwind to our overall growth rate. The macro impact on our SMB segment in Q4 was worse than Q3, and we are expecting this segment of our business to continue to be under pressure in FY '25.

謝謝你，馬克。我們 24 財年的業績證明，儘管商業環境充滿挑戰，我們仍然有能力透過提高獲利能力來推動持久成長。我們第四季的表現超出了我們的指導。然而，與前幾個季度類似，我們繼續看到與當前宏觀環境相關的國內支出收緊對擴張產生負面影響，特別是在我們業務的中小企業領域。這對我們的整體成長率構成了阻力。第四季對我們中小企業部門的宏觀影響比第三季更嚴重，我們預計我們的這一業務部門在 25 財年將繼續面臨壓力。

In FY '24, we took steps to reduce our use of stock and compensation structure. This resulted in our stock-based compensation as a percentage of revenue to decline in FY '24 from the previous year. We expect our SBC as a percent of revenue to continue to decrease in FY '25 and beyond.

在 24 財年，我們採取措施減少股票的使用和薪酬結構。這導致我們 24 財年的股票薪酬佔收入的百分比比前一年有所下降。我們預計 SBC 佔收入的百分比在 25 財年及以後將繼續下降。

Additionally, in response to investor feedback, going forward, we will be disclosing and guiding annualized recurring revenue, or ARR, rather than billings. ARR provides a better reflection of our quarterly net bookings performance. One additional callout. In the past, we have used ARR and ACV interchangeably in our nonfinancial metrics. Starting this call, we will be standardizing on ARR.

此外，為了回應投資者的回饋，未來我們將揭露和指導年度經常性收入（ARR），而不是帳單。 ARR 更能反映了我們的季度淨預訂業績。一個額外的標註。過去，我們在非財務指標中交替使用 ARR 和 ACV。從本次通話開始，我們將對 ARR 進行標準化。

I will now go through our financial results for the fourth quarter and the full year. 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四季和全年的財務表現。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。

For the full fiscal year '24, we ended with total revenue of $958.3 million, up 25% year-over-year, and billings of $1.069 billion, up 20% year-over-year. Non-GAAP operating income was $100.9 million, representing an operating margin of 11%, and free cash flow was $144.5 million, representing a free cash flow margin of 15%.

在 24 年整個財年，我們的總營收為 9.583 億美元，年增 25%，帳單為 10.69 億美元，年增 20%。非 GAAP 營業收入為 1.009 億美元，營業利益率為 11%，自由現金流為 1.445 億美元，相當於自由現金流利潤率為 15%。

Turning now to our quarterly results. Fourth quarter revenue came in at $256.9 million, up 21% year-over-year. Subscription revenue was $244 million, representing year-over-year growth of 23%. Services revenue was $12.9 million. Revenue from capabilities made up 34% of subscription revenue.

現在轉向我們的季度業績。第四季營收為 2.569 億美元，年增 21%。訂閱收入為 2.44 億美元，年增 23%。服務收入為 1,290 萬美元。來自功能的收入佔訂閱收入的 34%。

Turning to billings. Fourth quarter billings came in at $341.9 million, representing year-over-year growth of 19%. Approximately 95% of our subscription billings were annual with about 2% monthly. Quarterly and semiannual represented approximately 3% of the total. Annualized recurring revenue, or ARR, grew 21% in the fourth quarter to $1.031 billion.

轉向比林斯。第四季營收為 3.419 億美元，年增 19%。我們約 95% 的訂閱帳單是年度帳單，約 2% 是每月帳單。季度和半年度約佔總數的3%。第四季年化經常性收入 (ARR) 成長 21%，達到 10.31 億美元。

Moving on to our reported metrics. The number of customers with ARR over $50,000 grew 22% year-over-year to 3,924, and the number of customers with ARR over $100,000 grew 28% year-over-year to 1,904. These customer segments now represent 66% and 53%, respectively, of total ARR. The percentage of our ARR coming from customers with ARR over $5,000 is at 91%. Next, our domain average ARR grew 15% year-over-year to $9,672. We ended the quarter with a dollar-based net retention rate, inclusive of all our customers, of 116%. The full churn rate was 4%.

繼續我們報告的指標。 ARR 超過 50,000 美元的客戶數量年增 22% 至 3,924 家，ARR 超過 100,000 美元的客戶數量年增 28% 至 1,904 家。這些客戶群目前分別佔總 ARR 的 66% 和 53%。我們的 ARR 百分比來自 ARR 超過 5,000 美元的客戶，比例為 91%。接下來，我們的網域平均 ARR 年增 15% 至 9,672 美元。本季末，我們以美元計算的淨保留率（包括所有客戶）為 116%。完全流失率為 4%。

Now turning back to the financials. Our total gross margin was 85%. Our Q4 subscription gross margin was 88%. Overall, operating income in the quarter was $39.6 million or 15% of revenue. Free cash flow in the quarter was $56.3 million, a new quarterly record for our company.

現在回到財務方面。我們的總毛利率為85%。我們第四季的訂閱毛利率為 88%。整體而言，本季營業收入為 3,960 萬美元，佔營收的 15%。本季自由現金流為 5,630 萬美元，創下了我們公司的季度新紀錄。

Now let me move on to guidance. We are electing to remain conservative with respect to our FY '25 guidance, given changes in our sales leadership, the timing of our initiatives aimed at driving incremental growth and the ongoing macro influencing spending constraints.

現在讓我繼續指導。鑑於我們的銷售領先地位的變化、旨在推動增量成長的舉措的時機以及持續的宏觀影響支出限制，我們選擇對 25 財年的指導保持保守。

For the first quarter of FY '25, we expect revenue to be in the range of $257 million to $259 million and non-GAAP operating income to be in the range of $32 million to $34 million. We expect non-GAAP net income per share to be $0.26 to $0.27 based on diluted weighted average shares outstanding of 141 million. For the full fiscal year '25, we expect revenue of $1.113 billion to $1.118, representing growth of 16% to 17%. We expect services to be around 5% of total revenue.

對於 25 財年第一季，我們預計營收將在 2.57 億美元至 2.59 億美元之間，非 GAAP 營業收入將在 3,200 萬美元至 3,400 萬美元之間。根據 1.41 億股稀釋加權平均數，我們預期非 GAAP 每股淨利為 0.26 至 0.27 美元。對於 25 年整個財年，我們預計營收為 11.13 億美元至 1.118 美元，成長 16% 至 17%。我們預計服務將佔總收入的 5% 左右。

We expect our non-GAAP operating income to be in the range of $135 million to $145 million, representing an operating margin of 12% to 13% and non-GAAP net income per share to be $1.06 to $1.13 for the year based on 142.2 million diluted weighted average shares outstanding.

我們預計我們的非GAAP 營業收入將在1.35 億美元至1.45 億美元之間，營業利潤率為12% 至13%，基於1.422 億美元計算，今年非GAAP 每股淨利潤將在1.06 美元至1.13 美元之間。攤薄加權平均已發行股份。

We expect our FY '25 ARR growth to be 14%. Regarding seasonality, we expect quarterly ARR growth rates to follow a similar trend as last year with higher growth rates at the beginning of the year. Based on the relationship between dollar-based net retention rate and ARR, we expect our net retention rate to follow a similar trajectory as ARR through the course of the year.

我們預計 25 財年 ARR 成長率為 14%。就季節性而言，我們預計季度 ARR 成長率將遵循與去年類似的趨勢，年初成長率較高。根據以美元計算的淨留存率和 ARR 之間的關係，我們預計我們的淨留存率將在全年遵循與 ARR 類似的軌跡。

We also expect our FY '25 free cash flow to be $200 million.

我們也預期 25 財年的自由現金流為 2 億美元。

To conclude, in FY '24, we made significant progress on our profitability and free cash flow while navigating a difficult economic climate. Moving into FY '25, we're laser focused on growing our enterprise leadership position and further expanding profit margins. This next phase of growth will be driven by an energized team committed to streamlining our go-to-market efforts and compelling product innovation.

總而言之，在 24 財年，我們在應對困難的經濟環境的同時，在獲利能力和自由現金流方面取得了重大進展。進入 25 財年，我們將重點放在提高我們的企業領導地位並進一步擴大利潤率。下一階段的成長將由充滿活力的團隊推動，致力於簡化我們的市場推廣工作和引人注目的產品創新。

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 Terry Tillman at Truist Securities.

（操作員說明）我們將回答 Truist Securities 的 Terry Tillman 提出的第一個問題。

This is Bobby Dee on for Terry. First one for me, would love to get an update on the road map for new and upcoming scalability/infrastructure enhancements this year, particularly the 5 million cell per sheet enhancement. Related to that, are there some potential near-term expansion opportunities with larger customers that could come out of those improvements? And then I have one follow-up.

我是鮑比迪 (Bobby Dee) 替補特里 (Terry)。對我來說，第一個希望了解今年新的和即將推出的可擴展性/基礎設施增強的路線圖更新，特別是每張 500 萬個單元的增強。與此相關的是，這些改進是否可能帶來一些潛在的近期與大客戶的擴張機會？然後我有一個後續行動。

Yes. We've had -- this is Mark, multiple milestones achieved in the past year. We're well on our way to hitting those. The team has actually done a really nice job of setting commitments with prospects and customers that they've been able to fulfill. And I would say that was reflected in some of the big enterprise expansions we've had in the past year. The good news is on some of those upper bounds that we set for ourselves, we're actually going beyond those. We're really getting to a point where the changes that we're doing today are sort of decade-long impact changes.

是的。這是馬克，我們在過去的一年裡實現了多個里程碑。我們正在努力實現這些目標。實際上，該團隊在與潛在客戶和客戶做出承諾方面做得非常好，並且他們能夠履行這些承諾。我想說，這反映在我們去年的一些大型企業擴張中。好消息是我們為自己設定的一些上限，我們實際上正在超越這些上限。我們確實已經到了這樣一個地步：我們今天所做的改變是長達十年影響力的改變。

So we're really getting to a model where those upper bound constraints are really getting to a point where you're talking about well north of 10x capacity of what we have today. And when you look at the largest companies in these industries that we serve, it's always remarkable to see how far they want to push it. And I think it's really a combination of both scale but also scale as it relates to administration and the ability to govern. So it's not always in the context of cell links and sheet counts and dashboard supported. It's also can we manage these huge engaged populations within these environments. So kudos to the team for both building the feature set and also the tooling required to administer these.

因此，我們確實正在建立一個模型，其中這些上限約束實際上已經達到了我們今天所擁有的容量的 10 倍以上的地步。當你觀察我們所服務的這些行業中最大的公司時，你會發現他們想要將這一目標推向多遠，這總是令人驚嘆的。我認為這實際上是規模和規模的結合，因為它與管理和治理能力有關。因此，它並不總是在支援單元格連結、工作表計數和儀表板的上下文中。我們也可以在這些環境中管理這些龐大的參與人群。因此，感謝團隊建立了功能集以及管理這些功能所需的工具。

That's great. Appreciate the color. And then nice to see the strong cash flow guide for FY '25. Curious how you all are thinking about capital allocation moving forward and even potential M&A. Any platform areas where buyback still could be attractive?

那太棒了。欣賞顏色。然後很高興看到 25 財年強勁的現金流指南。好奇你們如何考慮未來的資本配置，甚至潛在的併購。回購仍具吸引力的平台領域有哪些？

So we've got a fairly thoughtful what I call capital allocation strategy, and we start with sort of where we want to deploy capital. Obviously, a buyback remains in our strategic consideration set. But we're focusing our balance sheet right now on adding to the strength of it since we deal with the largest companies in the world. I think we will consider potential -- we want to have some flexibility to drive potential M&A that may be adjacent to where we are, that will be a part of the consideration set.

因此，我們有一個相當深思熟慮的資本配置策略，我們從我們想要部署資本的地方開始。顯然，回購仍然是我們的策略考量之一。但由於我們與世界上最大的公司打交道，因此我們現在的重點是增強資產負債表的實力。我認為我們會考慮潛力——我們希望有一定的靈活性來推動可能與我們所處位置相鄰的潛在併購，這將是考慮因素的一部分。

We'll take our next question from Ryan MacWilliams at Barclays.

我們將回答巴克萊銀行瑞安·麥克威廉斯的下一個問題。

This is Pete Newton on for Ryan MacWilliams. Just sort of looking at your implied trajectory and guidance throughout the year despite the slight slowdown [throughout] FY '25. So if you can just add some color on what you're seeing on the macro and what your guidance implies for how the year looks in terms of SMB, enterprise demand. Just any color we can get there would be helpful.

我是皮特·牛頓（Pete Newton），代表瑞安·麥克威廉斯（Ryan MacWilliams）發言。儘管 25 財年略有放緩，但只是看看全年的隱含軌跡和指導。因此，如果您可以為您在宏觀上看到的情況以及您的指導對今年中小型企業和企業需求的暗示添加一些色彩。我們能找到的任何顏色都會有幫助。

I think you were cutting out a little bit, but I think your question is about the composite of our guide and how we're thinking about the world. I think I'll start there. So the guide is a composite. So it starts with what we experienced in Q4. So when you think of what we experienced in Q4, our enterprise NDRR growth rates were strong, over 120%. The SMB did worsen in Q4. And as you think of that NDRR worsening, it was close to 0. So we expect this trend to continue in FY '25. So that's kind of the first part of it.

我認為你刪掉了一點，但我認為你的問題是關於我們指南的綜合以及我們如何思考世界。我想我會從那裡開始。所以該指南是一個綜合體。首先從我們在第四季的經驗開始。因此，當您想到我們在第四季度的經驗時，我們的企業 NDRR 成長率非常強勁，超過 120%。中小企業在第四季確實惡化了。當你想到 NDRR 惡化時，它接近 0。因此我們預計這種趨勢將在 25 財年繼續下去。這就是第一部分。

And as we see this trend progressing through, essentially, we're thinking about the enterprise business. We -- obviously, it's a very back-end loaded business and the visibility grows as we go through the year, so being sort of prudent with our initial guide. And the last part of it is we're focused on -- we've looked at embedding some level of incremental conservatism given the new sales leadership that Mark just talked about.

當我們看到這一趨勢的進展時，本質上我們正在考慮企業業務。顯然，這是一個後端負載很大的業務，隨著時間的推移，可見度會不斷增長，因此對我們最初的指南持謹慎態度。最後一部分是我們關注的——考慮到馬克剛才談到的新的銷售領導力，我們考慮了嵌入某種程度的漸進保守主義。

That makes sense. And then just a follow-up. Really pleased to hear some of the AI commentary. I think that's pretty positive here, and especially in terms of when you think about upturning customers. So maybe, Mark, what are you seeing on the AI front? What are customers looking to utilize Smartsheet's AI products for? Just how you're feeling about AI going through this year?

這就說得通了。然後只是後續行動。真的很高興聽到一些人工智慧評論。我認為這是非常積極的，特別是當你考慮提升客戶時。那麼，馬克，你在人工智慧方面看到了什麼？客戶希望利用 Smartsheet 的人工智慧產品做什麼？您對今年人工智慧的發展有何看法？

Yes. It's really on 2 primary dimensions. One is on being able to configure logic into the Smartsheet solutions, so how quickly and simply can someone do that. And a big part of our value prop is velocity. So the AI that we've enabled that I spoke to in our formulas, that is part of how you configure workflows and automations and logic into these solutions.

是的。它實際上是在兩個主要維度上。其中之一是能夠將邏輯配置到 Smartsheet 解決方案中，那麼人們可以如何快速、簡單地做到這一點。我們價值支柱的很大一部分是速度。因此，我在公式中談到的我們啟用的人工智慧，是您如何將工作流程、自動化和邏輯配置到這些解決方案的一部分。

On the second side, it's about the analysis. How can I derive insights from the things that I'm tracking? The resonance -- seeing 1/3 of our enterprise customers within weeks of its announcement using it or release using it, I was really pleased to see that. I would say what you'll see with the AI skills coming forward, you'll see that we will continue to shift and release features that I would say are in higher use, high-frequency use experiences. So when we released the AI skill on the dashboarding and the insights, which is a really popular area for our application, I expect the count of interactions to go up materially. So it's all about enabling and improving the experiences that they're very familiar with today.

第二個方面，就是分析。我如何從我正在追蹤的事物中獲得見解？共鳴——在宣布使用它或發布使用它後的幾週內看到我們 1/3 的企業客戶，我真的很高興看到這一點。我想說的是，隨著人工智慧技能的出現，你會看到我們將繼續轉變並發布我認為在更高使用率、高頻使用體驗中的功能。因此，當我們在儀表板和見解上發佈人工智慧技能時（這對我們的應用程式來說是一個非常受歡迎的領域），我預計互動次數會大幅增加。因此，這一切都是為了實現和改善他們今天非常熟悉的體驗。

The next phase that you'll see is really around how we can get people to understand how to exploit new use cases on the platform. So how can I, with an initial intent, state my case, state my objective and be presented with a composite solution of dashboards and forms and automation. That is the second phase. But what we're really doing right now is enrolling people into the capabilities alongside things they understand. And we think that's a strategy that's served us pretty well so far.

您將看到的下一階段實際上是圍繞著如何讓人們了解如何利用平台上的新用例。那麼，我如何帶著最初的意圖陳述我的案例、陳述我的目標並獲得儀表板、表單和自動化的複合解決方案。那是第二階段。但我們現在真正要做的是讓人們了解他們所理解的能力。我們認為，到目前為止，這項策略對我們來說效果很好。

Our next question comes from John DiFucci at Guggenheim.

我們的下一個問題來自古根漢的約翰·迪福奇。

So when I look here, and there's a lot of changes here, right? And Mike Arntz has been with the company since before the IPO and has led a lot of the changes needed as you scaled. So Mark, I guess, what do you anticipate are some of the areas that Max may address to accommodate your next phase of growth?

所以當我看這裡時，這裡有很多變化，對吧？麥克·阿恩茨 (Mike Arntz) 從 IPO 之前就一直在公司工作，並領導了公司規模擴張所需的許多變革。那麼，馬克，我想，您預計 Max 可能會解決哪些領域的問題，以適應您下一階段的發展？

John, I think a few of the traits that I was looking for was somebody who had deep experience with international, understood partner ecosystems very well, was super fluent in a multiproduct catalog and how you cross-sell. When we think about the rise of capabilities in our world with less than -- fewer than 10% of our customers buying something from us other than a seat, it is a huge portion of our growth strategy. So really trying to find someone who has that experience base.

約翰，我認為我正在尋找的一些特質是具有豐富的國際經驗、非常了解合作夥伴生態系統、非常精通多產品目錄以及交叉銷售方式的人。當我們想到我們的世界中功能的崛起時，只有不到 10% 的客戶從我們這裡購買除座位以外的東西，這是我們成長策略的重要組成部分。所以真的很想找到有這種經驗基礎的人。

And also, it's pretty -- when you think of who we serve, John, right, we serve everybody from the SMB all the way up to the largest companies in the world. Finding somebody who has comfort and an informed point of view on how to go to market on both dimensions, that is a really important thing I was looking for. And I think Max's experiences across Microsoft, Adobe and NetApp is a pretty good collection of past experiences that he's going to bring to bear.

而且，這很漂亮 - 當你想到我們為誰服務時，約翰，對吧，我們為從中小型企業一直到世界上最大的公司的每個人提供服務。找到一個對如何在兩個方面進入市場有舒適感和見多識廣的觀點的人，這是我一直在尋找的一件非常重要的事情。我認為 Max 在 Microsoft、Adobe 和 NetApp 的經驗是他將要運用的過去經驗的一個很好的集合。

And that makes a lot of sense, especially the opportunity, well, across everything, but like you led with international, which just seems like such a big opportunity here. I guess if I could just ask a follow-up for Pete. Listen, Pete, if NRR is going to follow similar trends as ARR through the year, that implies it continues to decline. Can you talk a little bit more about this? Because the way I understand the NRR metric, it's a next 12-month metric, and you could actually see on a quarterly basis an inflection point where things tend to get a little better near the end of the year, and you wouldn't necessarily see that metric right away. I guess I'm just trying to sense what this -- the guide is because I think that's the thing that our people are -- the 14% growth in ARR is the thing that people are sort of questioning right now. Do you think it just gets -- continues to get worse throughout the year? Is that what you're sort of implying? I know you gave all the reasons why you're being "prudent", I'm glad you said that. But do you think it actually could get better throughout the year at some point? Or does it -- or even stabilize or that it's going to get -- just get worse through the year?

這很有意義，尤其是機會，嗯，跨越一切，但就像你領導的國際一樣，這裡似乎是一個很大的機會。我想我是否可以詢問皮特的後續情況。聽著，Pete，如果 NRR 全年都遵循與 ARR 類似的趨勢，那就意味著它會繼續下降。你能多談談這個嗎？因為按照我對 NRR 指標的理解，它是下一個 12 個月的指標，您實際上可以按季度看到一個拐點，在年底時情況往往會變得更好一些，但您不一定會立即查看該指標。我想我只是想了解這是什麼——指南是因為我認為這就是我們的員工——ARR 14% 的成長是人們現在有點質疑的事情。您認為這一年的情況會繼續惡化嗎？這就是你所暗示的意思嗎？我知道你給了「謹慎」的所有理由，我很高興你這麼說。但你認為全年某個時候情況真的會變得更好嗎？或者它會——甚至穩定下來，或者會變得——在這一年裡變得更糟？

Yes. So the -- if you think of the -- you're absolutely right, John, in terms of the net dollar retention rate conversation, it's a look back for a full year. But remember, the underlying underpinnings of that are what's happening in the enterprise and what's happening in SMB. I called out in SMB that we don't expect it to stay stable. We expect it to continue to worsen. So that's going to be a drag on that -- on the net dollar retention rate, and it will build into the composite. Now could it get better? I think we're doing many things ourselves, which are things we've launched in the water. But we always guide based on what we can see and what we have visibility to. And that's what we're consistent about. So that's what we're doing sort of here as well.

是的。因此，如果你想到的話，約翰，就淨美元保留率對話而言，你是絕對正確的，這是對一整年的回顧。但請記住，其根本基礎是企業和中小企業中正在發生的事情。我在 SMB 中呼籲我們不希望它保持穩定。我們預計情況將繼續惡化。因此，這將拖累淨美元保留率，並將納入綜合數據。現在情況還能好起來嗎？我認為我們自己正在做很多事情，其中​​一些是我們已經下水的。但我們總是根據我們能看到的和我們能看到的進行指導。這就是我們始終如一的觀點。這也是我們在這裡所做的事情。

Our next question comes from George Iwanyc at Oppenheimer.

我們的下一個問題來自奧本海默的喬治·伊万尼克。

Mark, maybe could you give us more color on the traction you're seeing with self-discovery? And as you start to roll out new capabilities, how should we think about the pace of that this fiscal year?

馬克，也許你能給我們更多關於你在自我發現方面所看到的牽引力的資訊嗎？當您開始推出新功能時，我們該如何考慮本財年的步伐？

Yes. Self-discovery, we have -- there are 2 aspects of it. One is the ability to -- for someone to experience a feature in the product without having to engage with someone from our team to actually utilize it. The second part of that, actually fulfilling it from a booking standpoint, is the other portion. So what we have done to date is we have enabled thousands of -- tens of thousands of companies to be able to utilize these tools, and we're seeing really good progression quarter-on-quarter around people exploring those and trialing those.

是的。自我發現，我們有──有兩個面向。一是能夠讓某人體驗產品中的功能，而無需與我們團隊中的某人互動來實際使用它。第二部分，實際上從預訂的角度來實現它，是另一部分。到目前為止，我們所做的就是讓成千上萬的公司能夠使用這些工具，並且我們看到人們在探索和試用這些工具方面取得了逐季度的良好進展。

The second chapter of this is actually marrying a self-discovery motion with a transaction motion. So we are skating to a place where those lower-value SMB, small starting customers can not only see them but also transact on those. We have not yet set markers in terms of in which quarter that we will convert to that commerce element, but we are focused on getting elements within our content realm, our people realm, which is our resource management realm, and our work realm exposed to market.

第二章其實是將自我發現動議與交易動議結合。因此，我們正在努力讓那些價值較低的中小型企業、小型新創客戶不僅可以看到它們，還可以進行交易。我們尚未設定在哪個季度轉換為該商業元素的標記，但我們專注於在我們的內容領域、我們的人員領域（即我們的資源管理領域）和我們的工作領域中獲取元素市場。

So a few weeks ago, we released our advanced resource management capability. Prior to releasing that, a prospect or a customer would have to engage with our customer success or sales team to enable that. That is now fully automated, zero setup required. And the weeks in performance we've seen have been extraordinarily positive in terms of the number of people who have been able to engage with that and to utilize it. So we are moving to a place where we want almost the entire portfolio available for someone to see without it being gated by a human being on our side.

因此，幾週前，我們發布了先進的資源管理功能。在發布之前，潛在客戶或客戶必須與我們的客戶成功或銷售團隊合作才能實現這一目標。現在是完全自動化的，需要零設定。從能夠參與並利用它的人數來看，我們所看到的幾週的表現非常積極。因此，我們正在遷移到一個地方，我們希望幾乎整個投資組合都可供某人查看，而無需由我們這邊的人員控制。

And when I think about driving long-term efficiency into our go-to-market, I think it's built on the back of this and how do you get more of your people and your success and your journey teams focusing on your mature, growing, super large customers and letting your early-stage growing customers move as quickly in a self-directed way as possible. So it's -- you will see releases this year in self-directed features across our existing capabilities. You will see our digital asset management come into a self-directed motion in the later -- in the first half of this year. And as I said, the people dimension on resource management was released to market in a self-directed way just a few weeks ago.

當我考慮推動我們進入市場的長期效率時，我認為這是建立在這個基礎之上的，以及如何讓更多的員工、你的成功以及你的旅程團隊專注於你的成熟、成長、超級大客戶，讓您的早期成長客戶以自我導向的方式盡可能快速地移動。因此，今年您將看到我們現有功能的自主功能發布。你會看到我們的數位資產管理在稍後——今年上半年——進入自我導向的階段。正如我所說，資源管理的人員維度就在幾週前以自我導向的方式發佈到市場。

And Pete, one question for you. Could you give us some perspective on how you're prioritizing the investment this year? Is it leaning more towards sales and marketing? Or is it really balanced across R&D and S&M?

皮特，問你一個問題。您能否為我們介紹一下您今年如何決定投資優先順序？它更傾向於銷售和行銷嗎？或者說研發和行銷管理真的是平衡的嗎？

I think our investments are pretty balanced. We're not making large investments in field capacity. We were fortunate to have an experienced and sort of what I call highly savvy field already in place. We've complemented that with things, which Mark talked about to help take our most experienced customers to the next level. So we've made some targeted investments there. And on the R&D side, we've focused on kind of getting a series of new and massively modernized core application experiences out there. And we've sort of invested in taking these self-directed capabilities and extending them to other products. So short answer, balanced across both sales and marketing as well as R&D.

我認為我們的投資相當平衡。我們沒有對現場能力進行大量投資。我們很幸運，擁有一個經驗豐富且我稱之為高度精明的領域。我們用馬克談到的一些東西來補充這一點，以幫助我們最有經驗的客戶更上一層樓。所以我們在那裡做了一些針對性的投資。在研發方面，我們專注於獲得一系列全新且大規模現代化的核心應用程式體驗。我們已經投資了這些自主能力並將其擴展到其他產品。答案很簡短，在銷售、行銷以及研發方面保持平衡。

We'll move next to Jake Roberge at William Blair.

我們將搬到威廉布萊爾的傑克羅伯格旁邊。

I understand we're still in a bit of an uncertain macro, especially on that SMB side of the house, and you're obviously going through the go-to-market transition this year. But if you take a step back, what do you think are some of the factors that could help stabilize NRR later this year and potentially reaccelerate the growth in the business heading out over the longer term?

我知道我們仍然處於一個不確定的宏觀環境中，特別是在中小企業方面，而今年顯然正在經歷進入市場的過渡。但如果您退後一步，您認為哪些因素可能有助於在今年稍後穩定 NRR，並有可能在長期內重新加速業務成長？

So the factors that could stabilize NRR, in my mind, are some of the initiatives that Mark mentioned and those gaining traction. So we talked about -- these are -- we are launching them. We're launching a totally modernized core application experience. That's coming through. We have launched the first part of it this quarter, but that's the early start to it. The lift that comes from that experience could be large, but it's going to take a while to sort of assess that out.

因此，在我看來，能夠穩定 NRR 的因素是馬克提到的一些舉措以及那些受到關注的舉措。所以我們談到——這些是——我們正在推出它們。我們正在推出完全現代化的核心應用程式體驗。就這樣過去了。我們本季推出了它的第一部分，但這只是早期的開始。這段經歷帶來的提升可能很大，但需要一段時間才能對其進行評估。

The second thing we would -- I would think of is think of our largest customers then taking the enterprise-grade features that we can sort of get these customers to deploy. The portfolio is really rich. If I can get our most experienced median customer to our top quartile customer, that's an opportunity. And that's where I think the leadership for Max to bring his experiences to bear will be helpful. So those are some of the upside elements out there. The one I'd be remiss not to mention is AI. That's in early stages, if you will. But as I said, it's a little bit of a wildcard on how that plays out.

我會想到的第二件事是考慮我們最大的客戶，然後採用我們可以讓這些客戶部署的企業級功能。投資組合真的很豐富。如果我能讓我們最有經驗的中位客戶成為我們的前四分之一客戶，那就是一個機會。這就是我認為馬克斯運用他的經驗的領導力將會有所幫助的地方。這些是一些正面的因素。人工智慧是我的疏忽，更不用說它了。如果你願意的話，那還處於早期階段。但正如我所說，這對於如何發揮作用有點不確定。

Okay. Helpful. And then I know they're a good portion of revenue, but with capabilities still being less than 10% penetrated in the entire base, what do you think the unlock will be to get those solutions deeper into the customer base? Is that all going to be self-discovery driving that? Or is there anything differently you can do on the direct go-to-market side that could help drive more traction with those solutions?

好的。有幫助。然後我知道它們佔收入的很大一部分，但由於功能在整個基礎中的滲透率仍然不到 10%，您認為如何讓這些解決方案更深入地深入客戶群？這一切都是自我發現驅動的嗎？或者在直接進入市場方面您可以採取什麼不同的措施來幫助推動這些解決方案的吸引力？

Yes. I love the question. It is -- you're absolutely right. It's much more than just self-discovery. One of the things that we're working on from a packaging standpoint is how do we enable the median customer to get into a paid state with us on a premium capability in a ramped fashion. And what I mean by that is to date, many of our capabilities sales have come in the context of fairly substantive solutions. Like we go in, we work with a midsize or a large customer and we discuss a high-value solution that's delivered. We see a huge opportunity within the tens of thousands of organizations we serve, which start actually small.

是的。我喜歡這個問題。是的——你說得完全正確。這不僅僅是自我發現。從包裝的角度來看，我們正在研究的事情之一是，我們如何使中等客戶能夠以漸進的方式進入付費狀態，獲得我們的優質功能。我的意思是，迄今為止，我們的許多功能銷售都是在相當實質的解決方案的背景下進行的。就像我們進入時一樣，我們與中型或大型客戶合作，並討論所交付的高價值解決方案。我們在我們服務的數以萬計的組織中看到了巨大的機會，而這些組織實際上都是很小的。

So how can I consume a capability at sub-$5,000, sub-$1,000? And it's I think planting a bunch of seeds is how we built this business over 19 years. And we had our capabilities really married to an assisted sales motion. So when we think of packaging, how do you get that same PLG motion that we have with our seats introduced on a capability. And you should expect from us this year to release mechanisms for allowing people to step into capabilities much more quickly. So I would see the penetration rate of capabilities to go up significantly and then put us in a position to be able to build on that as they consume more and more of those.

那麼，我該如何使用低於 5,000 美元、低於 1,000 美元的功能呢？我認為播撒種子是我們在 19 年來建立這項業務的方式。我們的能力確實與輔助銷售行動結合。因此，當我們考慮包裝時，如何獲得與我們在功能上引入的座椅相同的 PLG 運動。你應該期待我們今年發布一些機制，讓人們更快掌握能力。因此，我會看到能力的滲透率顯著上升，然後隨著他們消耗越來越多的能力，我們能夠在此基礎上繼續發展。

So again, one is building them, having them; the other is making them available and discoverable; the third is how do you have a monetization strategy, which caters to the people who are starting out with them and those who are using them at massive scale.

再說一遍，人們正在建造它們，擁有它們；另一個是讓它們可用並被發現；第三個問題是如何制定貨幣化策略，以迎合剛開始使用它們的人和大規模使用它們的人。

We'll take our next question from Michael Berg at 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 want to follow up on the capabilities discussion here. It's growing nicely, if my calculations are correct, and it's still 30%. That seems down pretty meaningfully from the rest of the year. Maybe is there anything under the hood? What's going on there? Is there incremental budget constraints? Because I kind of think of those as being more enterprise-type solutions. And how do you think about those potentially reaccelerating, just building off of the last question?

我想跟進這裡的能力討論。如果我的計算正確的話，它增長得很好，而且仍然是 30%。與今年剩餘時間相比，這一數字似乎大幅下降。也許幕後有什麼東西嗎？那裡發生了什麼事？是否存在增量預算限制？因為我認為這些是更多企業型解決方案。您如何看待那些在最後一個問題的基礎上可能重新加速的事情？

I would say that we were pretty satisfied with the performance of capabilities. And I think that the draft you're seeing in year-on-year growth rates is just a sign of the macro that customers have experienced. It's just as simple as a conversation around people wanting a capability, but do they buy a composite set in a package in advance or do they buy them à la carte. So that affects the dollars that we -- that push through, if you will. But I think in general, the demand for capabilities continues to be robust and continues to grow. So I'd say I'd leave it there.

我想說我們對功能的表現非常滿意。我認為你所看到的同比成長率只是客戶經歷過的宏觀跡象。這就像圍繞著人們想要某種功能的對話一樣簡單，但他們是提前購買套裝中的複合套件還是單點購買。如果你願意的話，這會影響我們推動的美元。但我認為總的來說，對能力的需求仍然強勁且持續成長。所以我想說我會把它留在那裡。

Helpful. And then a quick follow-up on that same topic. As you think about this large opportunity set at hand, is it reasonable to conclude that capabilities will at some point be the majority of the revenue, just given the value proposition tied there? It seems like that's an underappreciated part of the -- not only the products, but the overall story.

有幫助。然後對同一主題進行快速跟進。當您考慮眼前的這一巨大機會時，只要考慮到與此相關的價值主張，就可以合理地得出這樣的結論：能力將在某個時候成為收入的大部分？這似乎是一個被低估的部分——不僅是產品，而且是整個故事。

So I think my belief is, and Mark and I share this, I think we're going to see both growth. So it's sort of like this race where as you start with seats and then you're adding capabilities on top of it, but it continues in that way. So I think we've got a huge sort of what I call potential in the low end of the market with these modernized core application experiences. So think of that as the piece that builds the seat part of the portfolio. Now that doesn't mean it's only seats. You get the self-discover capabilities as well. So I think that percentage, I wouldn't view it as being lopsided towards capabilities. I view it as being balanced and growing over time. I do think capabilities will be an increasingly growing part of the mix.

所以我認為我的信念是，馬克和我都同意這一點，我認為我們將看到兩者的成長。所以這有點像這場比賽，你從座位開始，然後在其之上添加功能，但它會以這種方式繼續下去。因此，我認為透過這些現代化的核心應用體驗，我們在低端市場擁有巨大的潛力。因此，請將其視為建造投資組合的座椅部分的部分。現在這並不意味著它只是座位。您還可以獲得自我發現的能力。所以我認為這個百分比，我不會認為它與能力不平衡。我認為它是平衡的並且隨著時間的推移而增長。我確實認為能力將成為組合中越來越重要的一部分。

We'll go next to Pinjalim Bora at JPMorgan.

接下來我們將前往摩根大通的 Pinjalim Bora。

Pete, can you talk about kind of the demand trends going into Q1, February, March so far? Are you seeing the SMB weakness kind of deteriorate? Has it been similar to Q4? And any way to understand kind of the headwind to ARR for the full year FY '24 from the SMB softness?

Pete，您能談談到目前為止第一季、二月、三月的需求趨勢嗎？您是否看到中小企業的弱點惡化？和Q4類似嗎？有什麼方法可以了解 SMB 疲軟對 24 財年全年 ARR 造成的不利影響嗎？

So I'll give you my texture on February. So February was -- we continue to see the pressure on SMBs in the month of February. So that pressure actually continued. So we've seen that in play. And that's what informed our guide. If you think of Q4, we saw that worse than Q3. We saw that pressure continue to further worsen in February. So we're extrapolating that to say that's what continues all through the year. And that's the headwind to the other part of the business, which is pretty strong, which is the enterprise business, which had another good quarter in Q4 and will sort of continue in that vein. So that's the assumption going in.

所以我會在二月給你我的紋理。因此，二月我們繼續看到中小企業面臨的壓力。所以這種壓力其實還在持續。所以我們已經在遊戲中看到了這一點。這就是我們導遊的訊息。如果您想到第四季度，我們會看到比第三季度更糟。我們看到二月壓力繼續進一步惡化。因此，我們推論這就是全年持續的情況。這是該業務另一部分的逆風，該部分相當強勁，即企業業務，該業務在第四季度又取得了良好的季度業績，並將繼續保持這種勢頭。這就是假設。

To the second part of your question, what's the size of each one, I think it's hard to call out. Remember, just to give you an order of magnitude size, SMBs are roughly 1/4 of our business. And as I mentioned earlier, if you looked at the net dollar retention rate, which is a measure of our expansion, it was down to close to 0 in Q4. So you can see the pressure in that segment playing forward.

對於你問題的第二部分，每一個的大小是多少，我認為很難說出來。請記住，只是為了給您一個數量級，中小企業大約占我們業務的 1/4。正如我之前提到的，如果你看看淨美元保留率（衡量我們擴張的指標），你會發現第四季度它已降至接近 0。所以你可以看到前鋒那部分的壓力。

Understood. Helpful. One for Mark. Mark, we had heard from some of your customers that your AI capabilities like summary generator could help reduce the reliance on power users, kind of allowing average users to do more complex tasks. Do you think that could accelerate the adoption of paid seats within your existing enterprise tier accounts as it frees up the time for power users, one, and maybe makes the average user much more productive and engaged?

明白了。有幫助。一份給馬克。馬克，我們從您的一些客戶那裡聽說，您的人工智慧功能（例如摘要產生器）可以幫助減少對高級用戶的依賴，從而允許普通用戶執行更複雜的任務。您認為這是否可以加速現有企業級帳戶中付費席位的採用，因為它可以為高級用戶騰出時間，一方面，並可能使普通用戶更加高效和參與？

I do. That's part of the thesis. And some of the things that we're able to see as leading indicators of that is we looked at our enterprise segment, the number of inquiries we had to our support desk in these areas, and we're already seeing a step down in that usage up, inquiry down, good dynamic. So I do think that, that is something that will exist. I think as we get the AI introduced to other elements that are super commonly used by analysts who are doing dashboard building, trying to derive insights from data sets, I think that word will start to spread within organizations.

我願意。這是論文的一部分。我們可以將其視為領先指標的一些事情是我們查看了我們的企業部門，我們在這些領域向支援台提出的詢問數量，我們已經看到這方面有所下降使用量上升，詢價下降，動態良好。所以我確實認為，這將會存在。我認為，當我們將人工智慧引入進行儀表板建構、試圖從資料集中獲取見解的分析師非常常用的其他元素時，我認為這個詞將開始在組織內傳播。

And I think a lot of times, the way folks work within these companies, they want to see a data point. They want to see an example from someone in a neighboring group achieve success. Again, we are weeks into this being available. I would expect, as we get a couple of months under our belt, to start seeing this pattern emerge.

我認為很多時候，人們在這些公司的工作方式，他們希望看到一個數據點。他們希望看到鄰近群體中某人成功的榜樣。同樣，我們距離此功能的推出還有幾週的時間。我預計，當我們掌握幾個月後，我們就會開始看到這種模式的出現。

We'll move next to Alex Zukin at Wolfe Research.

我們將接任沃爾夫研究中心的 Alex Zukin。

This is Ethan Bruck on for Alex Zukin. I guess maybe a bit more of a high level maybe for Mark. Just as we think about the percent of customers that are using capabilities, is that number kind of inches up from single digits continuing to 20% over time? Like as you embed generative AI and self-discovery as that accelerant, what does success look like for you over the next few years? Like where the -- those amount of customers using your capability can go? And then as you think about monetizing that more improved functionality, I mean, where do you need to see adoption to go for all those ROI investments for R&D to pay off basically?

我是伊森布魯克 (Ethan Bruck) 替補亞歷克斯祖金 (Alex Zukin)。我想馬克的水平可能更高一些。正如我們考慮正在使用功能的客戶百分比一樣，隨著時間的推移，這個數字是否會從個位數持續上升到 20%？就像您將生成式人工智慧和自我發現作為促進劑一樣，您在未來幾年內會取得怎樣的成功？就像那些使用你的能力的客戶可以去哪裡？然後，當您考慮將更多改進的功能貨幣化時，我的意思是，您需要在哪裡看到採用才能使所有這些研發投資回報率基本上得到回報？

I think the R&D is paying off well today. I think what I'd like to see us reach is a much broader penetration. I think on an earnings call 1 or 2 times ago, someone asked, so Mark, what's your expectation? And I very quickly snapped back, 50%. My expectation is the median customer at Smartsheet should be able to derive value from multiple products that we sell. So again, back to why I chose to partner with Max on go-to-market. When you look at the largest software companies in the world, they're not one-trick ponies. They offer value to their customers on multiple dimensions. And what our job is, is to make that is accessible to as many companies as possible and their users. And I think part of that is what you offer them. And then the other part of that is how you make it available to them through a pricing and packaging standpoint. So a big driver will be how we judge the percent penetration of our portfolio into those organizations.

我認為今天的研發取得了良好的回報。我認為我希望看到我們實現更廣泛的滲透。我想在一兩次前的財報電話會議上，有人問，馬克，你的期望是什麼？我很快就回覆了，50%。我的期望是 Smartsheet 的中位客戶應該能夠從我們銷售的多種產品中獲得價值。再次回到我為什麼選擇與 Max 合作進行市場推廣。當你觀察世界上最大的軟體公司時，你會發現它們不是只會一招的小馬。他們在多個方面為客戶提供價值。我們的工作就是讓盡可能多的公司及其用戶能夠使用它。我認為其中一部分是你為他們提供的。然後的另一部分是如何透過定價和包裝的角度向他們提供它。因此，一個重要的驅動因素將是我們如何判斷我們的投資組合在這些組織中的滲透率。

The other important part is what's the contribution per organization. But I think right now, we're not confused on our remit, which is make these things available, get them into the hands of many people and organizations as possible. When you look at the retention dynamics of the companies that are deeply embedded with multiple products, good things from an NDRR standpoint happen when people are connected on multiple fronts. So again, this is -- and it's not simply done by hiring more people. This is about letting the product pull for you. And it's one of the reasons R&D is working so hard on making this happen.

另一個重要部分是每個組織的貢獻是什麼。但我認為現在，我們對我們的職責並不感到困惑，那就是讓這些東西可用，讓它們盡可能地交到許多人和組織的手中。當你觀察那些深深嵌入多種產品的公司的保留動態時，從 NDRR 的角度來看，當人們在多個方面相互聯繫時，就會發生好事。再說一次，這並不是簡單地透過僱用更多的人來完成的。這是為了讓產品為你服務。這也是研發部門努力實現這一目標的原因之一。

Yes. No, it's incredibly good thing. That makes perfect sense. And just maybe for Pete, as you think, and I know we talked about the different layers of conservatism embedded to the guide. But if you would stack rank where you would see some of the biggest areas of outperformance, how do you think about that between just a better macro, assuming this go-to-market execution above expectations? Just anything there?

是的。不，這是非常好的事情。這是完全有道理的。也許對皮特來說，正如你所想的，我知道我們討論了指南中嵌入的不同層次的保守主義。但是，如果你將排名放在你會看到一些表現出色的最大領域的地方，假設這種進入市場的執行超出預期，你如何看待更好的宏觀之間的關係？那裡有什麼東西嗎？

So I think as you think about what -- how I might stack the upside of the different drivers, I'm most excited about the product portfolio that we're launching in the -- through the year. We started with the launch in the modernized core application experiences this quarter. And I'm sort of bullish on that. I'm bullish on the next one, which is the leadership that Max brings in bringing efficiency in our sales and marketing theaters that allow us to go -- making our median rep operate like our top rep and getting that forward.

因此，我認為，當您思考如何整合不同驅動因素的優勢時，我對我們今年推出的產品組合感到最興奮。我們從本季推出現代化的核心應用程式體驗開始。我對此持樂觀態度。我看好下一個目標，即馬克斯帶來的領導力，提高我們的銷售和行銷部門的效率，使我們能夠繼續前進——使我們的中位代表像我們的頂級代表一樣運作，並推動這一進程。

And the third one I would describe is the wildcard, which is all these self-directed experiences, as we open them up to more products, how is that going to play out in terms of the upside of producers. So those are my top 3. The macro is a wildcard, which none of us can actually quite exactly predict. And putting a weight on it -- it's always the biggest one. Could it make a change? It could. But I look at the parts and -- the parts of the puzzle and the pieces we can drive and control.

我要描述的第三個是通配符，即所有這些自我導向的體驗，當我們向更多產品開放時，這將如何在生產商的優勢方面發揮作用。這些是我的前 3 個。宏是一個通配符，我們誰都不能真正準確地預測它。並給它施加壓力——它總是最大的。它能帶來改變嗎？它可以。但我會關注各個部分——拼圖的各個部分以及我們可以驅動和控制的部分。

Next, we'll move to Josh Baer at Morgan Stanley.

接下來，我們將邀請摩根士丹利的喬許貝爾 (Josh Baer)。

I wanted to dig in a little bit as we talk about macro and SMB and what exactly is going on. It looks like from customer counts and full churn disclosures, like we're not talking about logo churn. I just want to confirm that. And then can I dig in between -- is it just seat contraction or less expansion? And like what are the actual behaviors of these SMB customers?

當我們談論宏觀和中小企業以及到底發生了什麼時，我想深入探討。從客戶數量和完整的流失資訊揭露來看，我們並不是談論徽標流失。我只是想確認一下。然後我可以在兩者之間挖掘一下嗎——只是座椅收縮還是膨脹幅度較小？這些中小企業客戶的實際行為是什麼？

Yes. So the -- I'll describe it to you in terms of rank orders, you can sort of stack it up. The #1 driver is gross expansions with these customers, like the amount of propensity they have to buy in their current environment they're operating in. The lesser one after that is we are seeing reductions tick up, but that's not the major driver. That is a contributor to it, but not in the scale of the first one I mentioned.

是的。因此，我將按照排名順序向您描述它，您可以將其堆疊起來。第一個驅動因素是這些客戶的整體擴張，例如他們在當前營運環境中必須購買的傾向量。其次是我們看到減少量增加，但這不是主要驅動因素。這是一個貢獻者，但規模不及我提到的第一個。

Okay. That's helpful. And then, I guess, with both of those in mind, like what is -- are those users within an organization using other tools? Like I know there might not be a direct competitive replacement perspective, but like when faced with tougher budgets and having less gross expansion or some reductions, like what are those users using?

好的。這很有幫助。然後，我想，考慮到這兩點，組織內的那些使用者是否使用其他工具？就像我知道的那樣，可能沒有直接的競爭替代視角，但是就像當面臨更嚴格的預算和更少的總擴張或一些減少時，例如這些用戶在使用什麼？

So I would describe it as being -- remember, the biggest driver is people buying and gross expansion. So that's just companies deciding there isn't a budget in small companies and saying, I'm not adding another seat. Things that used to happen, we call our transactional business. People would pop in and say, I need another seat. Everything in these smaller enterprises and expansion is going through a more detailed review process. And frankly, that's the part of the business that's suffering.

所以我將其描述為——記住，最大的驅動力是人們購買和整體擴張。所以這只是公司決定小公司沒有預算，然後說，我不會再增加一個席位。過去發生的事情，我們稱之為交易業務。人們會突然進來說，我需要另一個座位。這些規模較小的企業和擴張中的一切都正在經歷更詳細的審查過程。坦白說，這就是業務受到影響的部分。

Now what happens where there's a reduction? I think in some ways, people are leveraging the model to make decisions around, can I convert somebody from being a creator to a collaborator? Can I look at people in the platform and say, who actually absolutely needs it? That's a smaller driver in this equation, but that's what generally happens. It is not a switch to a different product most of the times. It's a, can I do without this person on the platform?

現在減少了會發生什麼事？我認為在某些方面，人們正在利用該模型來做出決策，我可以將某人從創造者轉變為合作者嗎？我可以看看平台上的人並說，誰真正絕對需要它？在這個等式中，這是一個較小的驅動因素，但這就是通常發生的情況。大多數時候，這並不是切換到不同的產品。這是一個，平台上沒有這個人我做得到嗎？

We'll go next to Taylor McGinnis at UBS.

接下來我們將採訪瑞銀集團的泰勒·麥金尼斯。

So can you comment or quantify what you're seeing so far in quarterly DBNR at the start of this year? I know you said enterprise was strong, but just curious if that means stable or what that exactly means. And then as a follow-up, it seems like in order to get to ARR growth of 14% for the year, you'd have to assume a pretty significant deterioration in DBNR. So is the assumption that SMB and enterprise quarterly DBNR continue to worsen throughout the year?

那麼，您能否評論或量化您在今年年初的季度 DBNR 中看到的情況？我知道你說企業很強大，但只是好奇這是否意味著穩定或到底意味著什麼。接下來，似乎為了實現今年 ARR 成長 14%，您必須假設 DBNR 會出現相當顯著的惡化。那麼中小企業和企業季度DBNR全年持續惡化的假設是什麼呢？

Yes. So Taylor, I'll answer your question in piece parts as you went through it. The first one is our enterprise dollar-based net retention rate for Q4 is over 120%. So we were pleased by how that played out. That's the first part of it. The second part of it is our assumption is -- what we're making is the SMB portion of that. Remember, I told you the SMB DBNR was close to 0. So it wasn't significantly over 100. We've assumed that, that continues to worsen as we go through the year. What we're doing is essentially taking a more conservative approach to the way the macro might roll out and how the trends might evolve as one part of it. And we're also dealing with an element of as we think of the enterprise portion of it. Enterprise sales cycles are back-end loaded as is the total bookings. We're early in the year, so being a little more thoughtful and prudent as we make those determinations on how big those enterprise bookings and DBNRs could be.

是的。泰勒，我將在您解決問題時逐一回答您的問題。第一個是我們第四季的企業美元淨保留率超過 120%。所以我們對結果感到很高興。這是第一部分。第二部分是我們的假設——我們正在做的是其中的中小企業部分。請記住，我告訴您 SMB DBNR 接近 0。所以它並沒有明顯超過 100。我們假設，隨著這一年的推移，情況會繼續惡化。我們正在做的事情本質上是對宏觀政策的推出方式以及趨勢如何作為宏觀政策的一部分演變採取更保守的方法。我們也正在處理我們所認為的企業部分的一個要素。企業銷售週期和總預訂量都是後端加載的。我們現在還處於今年年初，因此在決定企業預訂和 DBNR 的規模時要更加深思熟慮和謹慎。

Got it. And then just as a quick follow-up. I think you mentioned earlier that there might be some initiatives in place to potentially prevent some of the weakness that you're seeing or help curb some of the weakness that you're seeing in the SMB segment. Can you just walk us through what some of those initiatives might be?

知道了。然後作為快速跟進。我想您之前提到過，可能會採取一些舉措來潛在地防止您所看到的一些弱點，或幫助遏制您在中小企業領域看到的一些弱點。您能否向我們介紹其中一些舉措可能是什麼？

Yes. There are 3 things that we're doing. One is at the leading edge, which is about lowering friction on the sign-up and getting started. So that's widening the funnel. I would say the other pieces that have been in flight for a number of quarters now, the first of which is being released later this quarter, is we've gotten a lot of feedback from both the sell-side, buy-side as well as customers on, we really like the power of your platform, but boy, could we modernize it a little bit, please?

是的。我們正在做三件事。其中一個處於領先地位，旨在減少註冊和入門方面的摩擦。所以這正在擴大漏斗。我想說的是，現在已經進行了幾個季度的其他項目，其中第一個項目將於本季度晚些時候發布，我們已經從賣方和買方那裡得到了很多反饋作為客戶，我們真的很喜歡你們平台的強大功能，但是我們可以對其進行一些現代化改造嗎？

And one of the big new views that we've been working on has been actually in evaluation with over 1,000 of our large customers for -- coming up on 5 months now, I believe. That is going to ship this quarter. It's a new view. It's beautiful. It's fast. People love it. It helps on understanding your data and Smartsheet better. That drops this quarter. That's available to every single business plan, every single enterprise plan.

我們一直在研究的一項重大新觀點實際上已經與超過 1,000 家大客戶進行了評估——我相信現在已經過去 5 個月了。該產品將於本季出貨。這是一個新的觀點。很美麗。它很快。人們喜歡它。它有助於更好地理解您的資料和 Smartsheet。本季這數字有所下降。這適用於每一個業務計劃、每一個企業計劃。

When we think about stabilization and we think about resonating with the SMB buyer, they want new stuff. They want beautiful stuff. They want it packaged in a way that's accessible. So as we look at our guide, one of the conservative things is the new view hasn't released yet. The massively modernized existing views we have, which ship this year, haven't launched yet. Do I think those are going to pull harder than what we've had? Yes, I do.

當我們考慮穩定性並考慮與中小企業買家產生共鳴時，他們想要新的東西。他們想要美麗的東西。他們希望以一種易於訪問的方式對其進行打包。因此，當我們查看指南時，保守的事情之一是新視圖尚未發布。我們今年發布的大規模現代化現有視圖尚未推出。我認為這些會比我們經歷的更艱難嗎？是的，我願意。

And until I see a quarter where I see the reaction to those things, both in terms of initial conversion rate, engagement of existing users, which drives the -- and IT administrator's ability to continue to grant them that license or revoke the license, these are all things that I view as potential tailwinds. What I can say is we've been überdisciplined on shipping those things when they're ready. So that first view that launches later this quarter, that thing will be ready, and I know customers love it. And again, what part of our job will be is to report out to you on a quarterly basis now, when they drop, what happens in terms of engagement.

直到我看到一個季度，我看到了對這些事情的反應，無論是在初始轉換率、現有用戶的參與度方面，這都推動了IT 管理員繼續向他們授予許可證或撤銷許可證的能力，這些我認為所有這些都是潛在的順風車。我能說的是，我們在這些東西準備好後運送它們時一直非常嚴格。因此，第一個視圖將於本季稍後推出，該產品將準備就緒，我知道客戶喜歡它。再說一遍，我們工作的一部分是現在每季向您報告，當他們下降時，參與度會發生什麼。

We're doing that on AI right now. We'll report out on views. And I would expect because of the vastness of the lead flow we get from that SMB lower end of the market, it will be really interesting to see how those new experiences drive conversion. The conversion one is sort of a hero metric, but I think the retention piece is the more nuanced one. And I think these can play as big a role in retention as they do in initial conversion. So those are the ones that I'm really keying off of in terms of improved performance.

我們現在正在人工智慧上這樣做。我們將報告意見。我預計，由於我們從中小型企業低端市場獲得了巨大的潛在客戶流量，看到這些新體驗如何推動轉換將會非常有趣。轉換率是英雄指標，但我認為保留率是更微妙的指標。我認為這些在保留方面可以發揮與初始轉換一樣重要的作用。因此，這些是我在提高效能方面真正重點關注的。

And one of the things I'll add to what Mark said is the fact that, remember, our guidance philosophy is based on things we can see we have experience on. So the part that Mark mentioned are not included in our guide because we need to see the experience as the full set of these features come to bear in market.

我要在馬克所說的基礎上補充的一件事是，記住，我們的指導理念是基於我們可以看到的、我們有經驗的事情。因此，馬克提到的部分並未包含在我們的指南中，因為我們需要看到這些功能的全套功能在市場上發揮作用時的體驗。

Our next question comes from Steve Enders at Citi.

我們的下一個問題來自花旗銀行的史蒂夫恩德斯。

I guess when you're talking about trying to bake in more conservatism with new sales leadership coming in, I guess, what does that mean mechanically to the model? And I guess, how much kind of flexibility are you kind of building in for incremental spend or incremental marketing initiatives to help support that change there?

我想，當您談論嘗試在新的銷售領導層加入時引入更多保守主義時，我想，這對模型來說意味著什麼？我想，您會為增量支出或增量行銷計劃建立多少靈活性來幫助支持那裡的變革？

So Steve, we've -- as a part of our plan, irrespective of a new leader arriving, we always have dollars set aside to explore opportunities where we think there are good solid returns. That's a part of the thinking playbook we go through. That's already built into our plan today. It's not incremental conservatism on the margin side that's different. So that's what we've guided to.

因此，史蒂夫，作為我們計劃的一部分，無論新領導者是否上任，我們總是留出資金來探索我們認為有良好回報的機會。這是我們所經歷的思考手冊的一部分。這已經納入我們今天的計劃中。不同之處並不在於利潤方面的漸進保守主義。這就是我們所指導的。

And then as far as it relates to sort of how we've built in conservatism for the transition in sales leadership, I'd say it's not one item has a certain value, but all the items I described have a cumulative effect that's built into the guide we've provided.

然後，就我們如何在銷售領導層的轉變中建立保守主義而言，我想說，這不是一個項目具有一定的價值，而是我描述的所有項目都具有累積效應，該效應內置於我們提供的指南。

Okay. That's helpful. And then I think in the prior comment about what the change means, I think there's more focus on international and partners. And I guess, how are you thinking about potentially increasing the investment in those areas and what potentially could be built out more fully with this change?

好的。這很有幫助。然後我認為在之前關於變化意味著什麼的評論中，我認為更多地關注國際和合作夥伴。我想，您如何考慮增加這些領域的投資以及透過這項變更可以更全面地建立哪些內容？

So as you think about the areas which Mark talked about, which are important to the company and Max brings into the picture, if you will, we're making investments in those areas already. We're making important investments. For example, on the international side of things, we're launching a data center in Australia by the end of the year. We're building out a market in Japan. So all of those investments are progressing with sort of the same mindset. So that's already built into the plan.

因此，當您思考馬克談到的對公司很重要並且馬克斯將其納入考慮的領域時，如果您願意的話，我們已經在這些領域進行了投資。我們正在進行重要的投資。例如，在國際方面，我們將於今年底在澳洲推出一個資料中心。我們正在日本建立一個市場。因此，所有這些投資都是以同樣的心態進行的。所以這已經納入計劃中。

What we would incrementally look at if things came out are opportunities that come from those same investments that Max would have a perspective on and the team would have a perspective on. Mark, anything to add on that one?

如果事情出現，我們將逐步關注來自 Max 和團隊也會有觀點的相同投資的機會。馬克，有什麼要補充的嗎？

Yes. I think the area of investment, as we look at shifting some capital from a direct sales team into the partner-enabled channel, I think there's some real return opportunity there. One of the examples I gave in terms of customer success on this call on my prepared remarks was a large global services firm. That deal would not have happened without the partner. The partner was essential based on their industry expertise, their know-how on our platform. We are going to be doubling the capacity of people who are enabling our channel. And that is a -- when we think about our international markets, we have some where we team up with partners. Those are the areas where we have our existing sales teams and success teams.

是的。我認為在投資領域，當我們考慮將一些資本從直銷團隊轉移到合作夥伴支持的管道時，我認為那裡有一些真正的回報機會。在這次電話會議上，我在準備好的發言中舉的關於客戶成功的例子之一是一家大型全球服務公司。如果沒有合作夥伴，這筆交易就不會發生。該合作夥伴的重要性在於他們的行業專業知識以及我們平台上的專業知識。我們將把支持我們頻道的人員的能力增加一倍。當我們考慮我們的國際市場時，我們有一些與合作夥伴合作的市場。這些是我們現有的銷售團隊和成功團隊的領域。

And then we're also formalizing our partner-first regions, where we are really bolstering the enablement capabilities, the lead allocation to those regions. And that is something which is really going to become -- come online in those regions for the first time in the company's history. Now are those going to be a massive meaningful contributor on bookings this year? I doubt it. But we're planting a lot of seeds. We have those markets identified. We have a number of partners already secured and enabled. And we will -- as I look at the shifting of our people to those higher value, higher leverage positions, whether it be enterprise or partner channel, I think it's one of the things that we've done pretty well as we enter this year.

然後我們還正式確定了我們的合作夥伴優先區域，我們正在真正加強這些區域的支援能力和領先分配。這是公司歷史上首次在這些地區上線。現在，這些人會成為今年預訂量的重要貢獻者嗎？我對此表示懷疑。但我們正在播下很多種子。我們已經確定了這些市場。我們已經獲得並啟用了許多合作夥伴。當我看到我們的員工轉向那些更高價值、更高槓桿的職位時，無論是企業還是合作夥伴管道，我們都會，我認為這是我們進入今年以來做得很好的事情之一。

We'll go next to Brent Thill at Jefferies.

我們將前往傑富瑞 (Jefferies) 的布倫特希爾 (Brent Thill)。

Mark, the magnitude of the rev decel is -- I think everyone's kind of scratching their head a bit, why you won't show a little more margin improvement this year. And I'm curious if you could just comment why we shouldn't see more leverage, given the growth rate is falling pretty conservatively? And then I had a quick follow-up for Pete.

馬克，轉速減速的幅度是──我想每個人都有點摸不著頭腦，為什麼今年你不會表現出更多的利潤率改善。我很好奇您能否評論一下，鑑於成長率相當保守地下降，為什麼我們不應該看到更多的槓桿？然後我對皮特進行了快速跟進。

On the margin side, what was the reference there? Sorry, I missed that part of the question.

在保證金方面，那裡的參考是什麼？抱歉，我錯過了問題的這一部分。

The revenue deceleration is not offset by the increase in margin. Your margin improvement is obviously very modest. Why not give more margin improvement given the massive deceleration of growth?

收入減速並沒有被利潤率的增加所抵消。你們的利潤率改善顯然非常有限。鑑於成長大幅減速，為什麼不進一步提高利潤率呢？

I'll answer that one. As you look at the guide we've provided at the start of the year, it's always a balance. So when you think of where we started last year, we sort of started the year with a set of things we think we can do well. And we go through the year and continue to optimize as we sort of deliver and go through the operational rigor of what we need to do. So our initial guide is 12% to 13% op margin. It's probably a reasonable starting point for this journey. So we've entered the year with a Rule of 40 for FY '24. If you look at where we started in FY '24, we started at about 34%, 35% rate, and this through the year to where we needed to get to.

我來回答一下這個問題。當您查看我們在年初提供的指南時，您會發現它始終是平衡的。因此，當你想到我們去年的起點時，我們以一系列我們認為可以做好的事情開始了這一年。我們度過了這一年，並在交付和完成我們需要做的事情的嚴格運營過程中繼續優化。所以我們最初的指導是 12% 到 13% 的營運利潤。這可能是這趟旅程的合理起點。因此，我們以 24 財年 40 條規則進入了​​這一年。如果你看看我們 24 財年的起點，我們的起點約為 34%、35%，而這一年一直到我們需要達到的目標。

Yes. I think the other thing that I would add to that, in terms of how we plan for the year, we set our budgets, we set our plan. And we also have certain stage gates that we expect our teams to deliver against. So as we go through Q1, we have certain opportunities that we're looking to drive on AI, some of these new capabilities we're launching to market. We expect performance to come on the back of that. And if those stage gates are met, then we continue to invest per our plan. And Pete has the right to inform us of a pullback in a couple of those areas to add more margin if those stage gates aren't hit. So I like the fact that we still have this mindset of investment. And I do think some of the investments we have an opportunity to demonstrate a contribution beyond what we have in our plan today.

是的。我想我要補充的另一件事是，就我們如何計劃今年、我們如何制定預算、我們如何制定計劃而言。我們也有一些階段性的關卡，我們希望我們的團隊能夠兌現這些關卡。因此，當我們進入第一季時，我們有一些希望推動人工智慧的機會，其中一些新功能是我們正在向市場推出的。我們預計業績會隨之而來。如果這些階段性目標得到滿足，那麼我們將繼續按照我們的計畫進行投資。皮特有權通知我們其中幾個領域的回調，以便在這些階段的大門沒有被擊中的情況下增加更多的利潤。所以我喜歡我們仍然有這種投資心態。我確實認為我們有機會展示一些投資超出我們今天計劃的貢獻。

Okay. And then just a real quick follow-up on SMB. One of the theories of why maybe you're seeing the weakness that you're seeing is that you are spending a lot more time going upmarket. And many question, is this more execution and more of a competitive issue rather than blaming SMBs for not spending?

好的。然後是對 SMB 的真正快速跟進。為什麼你會看到你所看到的弱點的理論之一是你花了更多的時間進入高端市場。許多人質疑，這是否是更多的執行力和更多的競爭問題，而不是指責中小企業不花錢？

Yes. I think part of the things that we're looking to do, one of the reasons we're trying to get the lowering of friction, getting people to discover things in a self-directed way, it's like, you don't want to spend a lot of human capital getting those thousands and thousands and thousands of trialers to a point where they want to buy. I think a really good indicator of continued progress is we had, of our 500 companies, new organizations who moved from the free plan to a paid state in January, one month, those are very self-directed motions. Those are not like heavy enterprise selling. And we're trying to get -- they open the aperture of getting that lead flow bigger and then positioning our offerings in a way where people can connect and purchase. Part of that is features. Part of that is pricing and packaging. Part of that is the instantiation of the free plan a year ago.

是的。我認為我們想做的事情的一部分，我們試圖減少摩擦，讓人們以自我導向的方式發現事物的原因之一，就像，你不想花費大量人力資本讓成千上萬的試用者達到他們想要購買的程度。我認為持續進步的一個非常好的指標是，在我們的 500 家公司中，新組織在一月一個月內從免費計劃轉變為付費狀態，這些都是非常自我導向的動議。這些與重型企業銷售不同。我們正在努力——他們打開了擴大潛在客戶流量的大門，然後以人們可以聯繫和購買的方式定位我們的產品。其中一部分是功能。其中一部分是定價和包裝。其中一部分是一年前免費計劃的實例化。

And when I look at the performance of new logos coming in at that leading edge, it remains very healthy. We have tens of thousands of orgs who do not pay us today engaged on the free platform today and the conversions coming out of that. Now we launched that free plan a year ago. So could you say, well, some of that demand is -- didn't convert, rests in free and there's a bit of an air gap now, we're waiting for that demand to build? Yes, you absolutely can -- you can draw up that model and convince yourself of that.

當我看到處於領先地位的新徽標的表現時，它仍然非常健康。我們有數以萬計的組織今天沒有向我們付費，但他們今天參與了免費平台以及由此產生的轉換。現在我們一年前推出了免費方案。那麼你能說，好吧，其中一些需求是 - 沒有轉換，免費，現在有一點空白，我們正在等待需求的建立？是的，你絕對可以——你可以製定這個模型並讓自己相信這一點。

I think the NDRR though -- sorry, the conversion rate on new on those SMB customers is heavily influenced by what you serve up to them. And one of the reasons we're making these investments is because we think there's an opportunity to dramatically improve that. And we're doing that alongside of the enterprise focus. It's not like we're moving student body, right, saying it's all about enterprise. It's enterprise-grade offerings that should work for both the leading edge SMB as well as a really large company out there. And it's -- again, we look forward to reporting on improvement on this.

我認為 NDRR 很抱歉，這些 SMB 客戶的新產品轉換率很大程度上取決於您為他們提供的服務。我們進行這些投資的原因之一是我們認為有機會大幅改善這一點。我們在關注企業的同時也在這樣做。我們不是在移動學生群體，對吧，說這一切都是為了企業。它是企業級產品，應該適用於領先的中小型企業以及真正的大公司。我們再次期待報告這方面的改進。

And you mentioned the competitive element, if you will, that was your follow-up. If you just looked at it, we talked about sort of what SMB -- what I call NDRRs are doing. If you look at our -- any of the competitive in-peer NDRRs, they're thinking our NDRR is probably the strongest on that peer set. So when you look at it, the business has to go somewhere with an expansion. Nobody's seeing it. So I would describe it as being it's more of a function of the buyer in that market and how they're sort of prosecuting incremental adds in what they want to do. That's as simple as it is.

你提到了競爭元素，如果你願意的話，那就是你的後續行動。如果您仔細看一下，您會發現我們討論了 SMB（我稱之為 NDRR）正在做的事情。如果您查看我們的任何具有競爭力的同行 NDRR，他們會認為我們的 NDRR 可能是該同行中最強的。因此，當你審視它時，你會發現業務必須朝著擴張的方向發展。沒有人看到它。因此，我將其描述為，它更多地是該市場中買家的功能，以及他們如何在他們想做的事情中進行增量添加。就是這麼簡單。

We'll move next to Scott Berg at Needham & Company.

我們將搬到尼達姆公司的斯科特·伯格旁邊。

This is Rob Morelli on for Scott. Just a high-level one here. With budget scrutinization continuing, can you just provide any insight on how consolidation trends impacted the quarter, particularly on the enterprise side, whether it continues to be a net benefit or a headwind and then maybe how you anticipate it plays a role into 2025?

我是羅布·莫雷利 (Rob Morelli) 替補斯科特 (Scott)。這裡只是一個高級的。隨著預算審查的繼續，您能否提供有關整合趨勢如何影響本季度的見解，特別是在企業方面，它是否繼續是淨收益或逆風，然後您預計它在 2025 年將如何發揮作用？

I think consolidation remains more present in enterprise settings where people have hundreds of thousands of dollars of investment. We haven't really seen a dramatic change, though, in rate or frequency. A couple of customer examples that I said in my prepared remarks did become via a review by an IT organization that is trying to standardize. But when you look at the grand scheme of transactions in the quarter, it's still a very, very small percentage.

我認為，在人們擁有數十萬美元投資的企業環境中，整合仍然更為普遍。不過，我們並沒有真正看到速率或頻率有巨大變化。我在準備好的發言中提到的幾個客戶範例確實是透過一個試圖標準化的 IT 組織的審查而實現的。但當你看看本季的整體交易計畫時，你會發現它仍然只佔非常非常小的比例。

And that does conclude our question-and-answer session. At this time, I would like to turn the conference over to Aaron Turner for closing remarks.

我們的問答環節到此結束。現在，我想將會議交給亞倫·特納（Aaron Turner）做閉幕致詞。

Great. Thank you all for joining us this quarter, and we'll chat with you again next quarter.

偉大的。感謝大家本季加入我們，我們將在下個季度再次與您交談。

And this concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。