Smartsheet Inc (SMAR) 2022 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Smartsheet Fourth Quarter Fiscal 2022 Earnings Conference Call. (Operator Instructions) Thank you. Aaron Turner, Head of Investor Relations, you may begin your conference.

女士們，先生們，感謝您的支持，歡迎參加 Smartsheet 2022 財年第四季度收益電話會議。 （操作員說明）謝謝。 Aaron Turner，投資者關係主管，您可以開始您的會議了。

Thank you, Josh. Good afternoon, and welcome, everyone, to Smartsheet's Fourth Quarter of Fiscal Year 2022 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，喬希。大家下午好，歡迎大家參加 Smartsheet 的 2022 財年第四季度財報電話會議。我們將討論今天收市後發布的新聞稿中公佈的結果。今天和我在一起的是 Smartsheet 的首席執行官 Mark Mader；和我們的首席財務官 Pete Godbole。今天的電話會議正在進行網絡直播，也可以在我們的投資者關係網站investors.smartsheet.com 上重播。皮特准備好的評論附有一張幻燈片，可以在我們的投資者關係網站的活動部分查看。

During this call, we will make forward-looking statements within the meaning of the federal securities laws. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends. These forward-looking statements are subject to a number of risks and other factors, including, but not limited to, those described in our SEC filings available on our Investor Relations website and on the SEC website at www.sec.gov.

在本次電話會議中，我們將根據聯邦證券法做出前瞻性陳述。這些前瞻性陳述主要基於我們當前對未來事件和財務趨勢的預期和預測。這些前瞻性陳述受到許多風險和其他因素的影響，包括但不限於我們的投資者關係網站和美國證券交易委員會網站 www.sec.gov 上提供的美國證券交易委員會文件中描述的那些。

Although we believe that the expectations reflected in the forward-looking statements are reasonable, our actual results may differ materially and adversely. All forward-looking statements made during this call are based on information available to us as of today. We do not assume any obligation to update these statements as a result of new information or future events, except as required by law.

儘管我們認為前瞻性陳述中反映的預期是合理的，但我們的實際結果可能存在重大不利差異。本次電話會議期間所做的所有前瞻性陳述均基於我們截至今天可獲得的信息。除法律要求外，我們不承擔因新信息或未來事件而更新這些聲明的任何義務。

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

除了美國 GAAP 財務，我們還將討論某些非 GAAP 財務指標。本次電話會議隨附的演示文稿中提供了與最直接可比的美國公認會計原則措施的對賬，也可以在我們的投資者關係網站上找到。

With that, let me turn the call over to Mark.

有了這個，讓我把電話轉給馬克。

Thank you, Aaron, and good afternoon, everyone. Welcome to our fourth quarter earnings call for FY '22.

謝謝你，亞倫，大家下午好。歡迎來到我們的 22 財年第四季度財報電話會議。

Before speaking to our results, I'd like to start by sharing that our thoughts and support are with the people of Ukraine and all those affected. Today, we'll be sharing the results of an outstanding quarter that rolls up to an extraordinary year at Smartsheet. We'll also discuss our proven strategy that reinforces my confidence in our growth trajectory and will keep us positioned at the top of the CWM category.

在談到我們的結果之前，我想首先與烏克蘭人民和所有受影響的人分享我們的想法和支持。今天，我們將在 Smartsheet 分享一個出色的季度的結果，該季度將是非凡的一年。我們還將討論我們經過驗證的戰略，該戰略增強了我對我們增長軌蹟的信心，並使我們保持在 CWM 類別的頂端。

While Pete will provide details, I want to share some standout results, first for the quarter and then for the year. Smartsheet revenue for Q4 grew 43% year-over-year to $157.4 million, and billings grew 48% year-over-year to $224 million. We closed out the year with more than 10 million Smartsheet users. Q4 saw both a new quarterly record of 286 deals of more than $50,000, and a new quarterly record of 98 deals of more than $100,000, up 107% and 128%, respectively, year-over-year. Given the acceleration of billings in FY '22, the momentum in the business is very strong, and I'm confident with the setup as we start FY '23.

雖然皮特將提供詳細信息，但我想分享一些出色的結果，首先是本季度，然後是全年。第四季度 Smartsheet 收入同比增長 43% 至 1.574 億美元，賬單同比增長 48% 至 2.24 億美元。我們以超過 1000 萬 Smartsheet 用戶結束了這一年。第四季度創下 286 筆超過 50,000 美元交易的新季度記錄，以及 98 筆超過 100,000 美元交易的新季度記錄，同比分別增長 107% 和 128%。鑑於 22 財年的賬單加速，業務發展勢頭非常強勁，我對 23 財年開始時的設置充滿信心。

According to Okta's 2022 Business at Work study, Smartsheet is now the most popular work management platform that businesses use alongside Microsoft 365. In fact, Smartsheet is the only work management platform to appear on Okta's list of the 8 most popular apps used in conjunction with M365. We've also been included as a top performer on the 2022 Capterra short list of the highest-scoring project management software products based on feedback from thousands of users. Additionally, we've earned the most 5-star customer reviews in both the CWM and PPM categories of Gartner Peer Insights.

根據 Okta 的 2022 Business at Work 研究，Smartsheet 現在是企業與 Microsoft 365 一起使用的最受歡迎的工作管理平台。事實上，Smartsheet 是唯一出現在 Okta 與 Microsoft 365 一起使用的 8 個最受歡迎的應用程序列表中的工作管理平台M365。根據數千名用戶的反饋，我們還被列為 2022 Capterra 得分最高的項目管理軟件產品短名單中的佼佼者。此外，我們在 Gartner Peer Insights 的 CWM 和 PPM 類別中獲得了最多的 5 星客戶評價。

By delivering a no-code enterprise solution in which more people and more teams can move more quickly to take action and drive outcomes that matter, Smartsheet customers are realizing significant returns on their Smartsheet investments. Our unique land, expand and climb motion drives a category-leading, dollar-based net retention rate inclusive of all customers of over 134%. We continue to make significant progress on improving the land motion.

通過提供無代碼企業解決方案，讓更多人和更多團隊可以更快地採取行動並推動重要成果，Smartsheet 客戶正在實現其 Smartsheet 投資的可觀回報。我們獨特的土地、擴張和攀爬運動推動了類別領先的、基於美元的淨保留率，包括超過 134% 的所有客戶。我們繼續在改進土地運動方面取得重大進展。

Between the introduction of the Pro plan, simplification of our onboarding processes, and the success of our new business team has had selling Advance to new customers, new business volume is at record levels. In fact, Q4 was a record quarter for new business bookings and a record quarter from the number of licenses purchased by new customers.

在引入 Pro 計劃、簡化我們的入職流程以及我們新業務團隊的成功向新客戶銷售 Advance 之間，新業務量達到了創紀錄的水平。事實上，第四季度是新業務預訂的創紀錄季度，也是新客戶購買的許可證數量創紀錄的季度。

As customers graduate from basic productivity use cases to transforming larger operational workflows, we see uptake and acceptance across more departments. We also continue to enable viral growth inside and outside of customer organizations. By allowing free use of the product by anyone who's invited to collaborate, we pull our customers extended teams, partners and suppliers into that Smartsheet environment, letting them experience the benefits of Smartsheet firsthand.

隨著客戶從基本的生產力用例過渡到轉變更大的運營工作流程，我們看到更多部門的採用和接受。我們還繼續在客戶組織內部和外部實現病毒式增長。通過允許任何受邀進行協作的人免費使用該產品，我們將我們的客戶擴展團隊、合作夥伴和供應商拉入 Smartsheet 環境，讓他們親身體驗 Smartsheet 的好處。

Today, with a best-in-class net expansion rate, our expansion motion continues to fire on all cylinders. In Q4, we saw expansions from companies such as Target, Lucid Motors, Herman Miller, Zendesk, Beyond Meat, PACCAR, General Mills, Daimler, and Goodwill. But our growth is fueled by more than expanding our user base. We continue to see success with Smartsheet climbing up the value chain as customers attach their mission-critical workflows across systems and people within their organizations.

今天，憑藉一流的淨膨脹率，我們的膨脹運動繼續在所有氣缸上進行。在第四季度，我們看到了 Target、Lucid Motors、Herman Miller、Zendesk、Beyond Meat、PACCAR、通用磨坊、戴姆勒和 Goodwill 等公司的擴張。但我們的增長不僅僅來自擴大我們的用戶群。隨著客戶將其關鍵任務工作流連接到其組織內的系統和人員之間，我們繼續看到 Smartsheet 在價值鏈上攀升的成功。

In FY '22, we saw a global media conglomerate triple its ARR to over $2 million. This significant growth was driven by both paid license additions, of which they added over 1,000 paid seats, and Advance Gold. This organization added $300,000 in ARR in Q4 alone. A global wireless communication provider doubled their ARR in FY '22 through 14 separate transactions of $50,000 or more. These represented sales to new departments as well as expansion across existing departments, up-leveling their Smartsheet usage by attaching capabilities that allow groups to scale and integrate Smartsheet workflows. This land, expand and climb scenario repeats itself again and again, increasing the active user base within the Smartsheet ecosystem, which, in turn, leads to growth of our user license space and deployment in high-value workloads.

在 22 財年，我們看到一家全球媒體集團的 ARR 增加了兩倍，達到 200 萬美元以上。這一顯著增長是由增加付費許可證（其中增加了 1,000 多個付費席位）和 Advance Gold 推動的。該組織僅在第四季度就增加了 300,000 美元的 ARR。一家全球無線通信提供商在 22 財年通過 14 筆 50,000 美元或更多的單獨交易將其 ARR 翻了一番。這些代表了對新部門的銷售以及跨現有部門的擴展，通過附加允許組擴展和集成 Smartsheet 工作流程的功能來提高其 Smartsheet 的使用率。這種土地、擴張和攀登的場景一次又一次地重複，增加了 Smartsheet 生態系統中的活躍用戶群，這反過來又導致我們的用戶許可空間和高價值工作負載的部署增長。

Now I'd like to underscore some of the product developments that are fueling our growth. In Q2 of FY '22, we introduced Smartsheet Advance and created a new tiered way for customers to unlock the full potential of Smartsheet to scale. Advance Silver enables businesses to orchestrate sophisticated programs, projects and processes using tools like Control Center. Customers can also create curated no-code applications to drive workflows across internal and external collaborators using WorkApps and Dynamic View.

現在我想強調一些推動我們增長的產品開發。在 22 財年的第二季度，我們推出了 Smartsheet Advance，並為客戶創造了一種新的分層方式，可以充分發揮 Smartsheet 的擴展潛力。 Advance Silver 使企業能夠使用控制中心等工具編排複雜的程序、項目和流程。客戶還可以使用 WorkApps 和 Dynamic View 創建精選的無代碼應用程序，以推動內部和外部協作者之間的工作流。

In Q4, the total number of created WorkApps grew 28% quarter-over-quarter to over 69,000. With Advance Gold, customers get a comprehensive set of data integration capabilities that enable the import and export of millions of records to and from other systems using Data Shuttle and DataTable. They can also trigger data processing workflows based on events using Bridge as well as continuously synchronizing data between Smartsheet and other systems using our real-time connectors. Data Shuttle is now transferring over 3 billion records every month, up from 1.7 billion in Q2.

第四季度，創建的 WorkApp 總數環比增長 28%，達到 69,000 多個。借助 Advance Gold，客戶可以獲得一套全面的數據集成功能，可以使用 Data Shuttle 和 DataTable 在其他系統中導入和導出數百萬條記錄。他們還可以使用 Bridge 根據事件觸發數據處理工作流，並使用我們的實時連接器在 Smartsheet 和其他系統之間持續同步數據。 Data Shuttle 現在每月傳輸超過 30 億條記錄，高於第二季度的 17 億條。

At the top tier, Advance Platinum adds key capabilities for organizations that desire additional levels of compliance, governance and advanced policy measurement. The advisory practice at BDO, one of the world's largest accounting networks, purchased Advance Gold in Q4. Advance will support many aspects of their business, including practice forecasting and planning, portfolio performance tracking and standardizing cross-functional projects across practice areas.

在頂層，Advance Platinum 為需要更高級別的合規性、治理和高級策略衡量的組織增加了關鍵功能。 BDO 是全球最大的會計網絡之一，其諮詢業務在第四季度購買了 Advance Gold。 Advance 將支持其業務的許多方面，包括實踐預測和計劃、投資組合績效跟踪以及跨實踐領域的跨職能項目標準化。

When we introduced Advance, our expectations were that new customers would use Smartsheet for a period of time for simpler use cases before moving up to Smartsheet Advance. Instead, we're starting to see a meaningful number of new customers choosing Advance from the start. Just in Q4, over 20% of the Advance deals we closed were to new customers of Smartsheet.

當我們推出 Advance 時，我們的期望是新客戶會在一段時間內使用 Smartsheet 來獲得更簡單的用例，然後再升級到 Smartsheet Advance。相反，我們開始看到大量新客戶從一開始就選擇 Advance。就在第四季度，我們完成的 Advance 交易中有超過 20% 是針對 Smartsheet 的新客戶。

Advance features resonates with customers and organizations of all sizes, from $1 million-plus ARR customers in the Fortune 500 to organizations like the Olympia School District in Washington State. The Olympia School District is using Advance to scale as they add more projects to develop a process for grant management. They're looking to pave the way for other school districts to embrace technology solutions that can help them better serve their communities.

先進的功能與各種規模的客戶和組織產生共鳴，從財富 500 強中超過 100 萬美元的 ARR 客戶到華盛頓州奧林匹亞學區等組織。奧林匹亞學區正在使用 Advance 來擴大規模，因為他們添加了更多項目來開發撥款管理流程。他們希望為其他學區採用技術解決方案鋪平道路，以幫助他們更好地為社區服務。

Our innovation velocity continues to produce as well. Some highlights include: Work Insights, allowing users to automatically analyze and visualize sheet data as a snapshot, time series or cross tab; Enterprise Plan Manager, ensuring all of an organization's Smartsheet plans follow security, governance and compliance requirements; unified Resource Management, making it seamless to build the best team for the job, all from within one core Smartsheet experience. And just last week, we announced deep integration of Brandfolder's top-rated digital asset management capabilities into the Smartsheet platform after working with a diverse set of beta customers.

我們的創新速度也在持續增長。一些亮點包括： 工作洞察力，允許用戶自動分析工作表數據並將其可視化為快照、時間序列或交叉表； Enterprise Plan Manager，確保組織的所有 Smartsheet 計劃都符合安全、治理和合規性要求；統一的資源管理，可以無縫地建立最適合工作的團隊，所有這些都來自一個核心的 Smartsheet 體驗。就在上週，我們宣佈在與各種測試版客戶合作後，將 Brandfolder 的頂級數字資產管理功能深度集成到 Smartsheet 平台中。

Enhancing the functionality between Smartsheet and Brandfolder helps customers better align their marketing and creative work by streamlining asset management. For example, a content development manager at IS Clinical can now manage the development of visual assets for the company's website in one unified solution. When creatives bring assets into Brandfolder, the integration is used to surface those assets in Smartsheet, manage approvals and reflect the completion of deliverables. Customers can now see Brandfolder insights like asset views, downloads and shares within Smartsheet, helping marketers make more informed creative decisions. Since acquiring Brandfolder, we've extended the value of Smartsheet across a broad set of use cases with customers like Ethan Allen, Wynn Resorts and U-Haul.

增強 Smartsheet 和 Brandfolder 之間的功能可幫助客戶通過簡化資產管理來更好地協調他們的營銷和創意工作。例如，IS Clinical 的內容開發經理現在可以在一個統一的解決方案中管理公司網站的視覺資產開發。當創意將資產帶入 Brandfolder 時，集成用於在 Smartsheet 中顯示這些資產、管理審批並反映可交付成果的完成情況。客戶現在可以在 Smartsheet 中查看 Brandfolder 見解，例如資產視圖、下載和共享，幫助營銷人員做出更明智的創意決策。自從收購 Brandfolder 以來，我們已經將 Smartsheet 的價值擴展到了廣泛的用例，客戶包括 Ethan Allen、Wynn Resorts 和 U-Haul。

On the security front, the threat landscape is rapidly evolving and intensifying. More and more CIOs and CISOs are deeply inspecting critical data governance and controls. Capabilities such as customer-controlled encryption keys, integrations with corporate directories and data loss prevention and classification systems, granular sharing and egress controls are differentiating Smartsheet as the most enterprise-ready CWM platform in the market.

在安全方面，威脅形勢正在迅速演變和加劇。越來越多的 CIO 和 CISO 正在深入檢查關鍵數據治理和控制。客戶控制的加密密鑰、與公司目錄和數據丟失預防和分類系統的集成、精細共享和出口控制等功能使 Smartsheet 成為市場上最適合企業的 CWM 平台。

An example of the security-first focus we're seeing comes from a top 5 investment firm. Earning the trust of the VP of Information Security was a key step in getting IT to adopt and promote Smartsheet across the organization. With securities buy-in, Smartsheet was deployed across a number of use cases, including investment management, capital analysis and corporate strategy, representing a 6-figure expansion in Q3. This was quickly followed by an additional expansion in Q4 to support several additional work streams.

我們看到的安全第一焦點的一個例子來自一家排名前 5 的投資公司。贏得信息安全副總裁的信任是讓 IT 在整個組織內採用和推廣 Smartsheet 的關鍵一步。通過證券買入，Smartsheet 被部署在多個用例中，包括投資管理、資本分析和企業戰略，在第三季度實現了 6 位數的增長。緊隨其後的是第四季度的額外擴展，以支持幾個額外的工作流。

We are in the middle of a massive greenfield opportunity with over 1 billion knowledge workers globally, where only a very small fraction of them have discovered the power of Smartsheet. And while most of our deals involve replacing the status quo of highly manual processes and primitive tools like spreadsheets, e-mails and presentations, we are also displacing competitive CWM products as well. One such win was with a global production company that delivers thousands of events worldwide. The company initially engaged with Smartsheet while using a competitor CWM product, but their existing solution lacked the adaptability, scale and integrations required to manage the full scope of their work.

我們正處於一個巨大的綠地機遇之中，全球有超過 10 億知識工作者，其中只有極少數人發現了 Smartsheet 的強大功能。雖然我們的大部分交易都涉及取代高度手動流程和原始工具（如電子表格、電子郵件和演示文稿）的現狀，但我們也在取代具有競爭力的 CWM 產品。其中一項勝利是與一家全球製作公司合作，該公司在全球範圍內舉辦了數千場活動。該公司最初在使用競爭對手的 CWM 產品時與 Smartsheet 合作，但他們現有的解決方案缺乏管理其全部工作範圍所需的適應性、規模和集成。

We were able to demonstrate Smartsheet's ability to meet their needs at scale. This includes delivering time savings and smoother customer handoffs from their sales organization using our Microsoft Dynamics Connector, making informed resourcing decisions with Smartsheet Resource Management, supplying their creative teams with best-in-class creative collaboration capabilities via Brandfolder, delivering a better customer experience with Dashboards and a mobile app that connects employees in the field.

我們能夠證明 Smartsheet 能夠大規模滿足他們的需求。這包括使用我們的 Microsoft Dynamics 連接器從他們的銷售組織中節省時間並更順暢地進行客戶交接，使用 Smartsheet 資源管理做出明智的資源決策，通過 Brandfolder 為他們的創意團隊提供一流的創意協作功能，提供更好的客戶體驗儀表板和連接現場員工的移動應用程序。

Over the past few years, we've invested in high-potential markets like Europe, Asia Pac and the U.S. federal government. In October of last year, we launched Smartsheet Regions offering in the EU, enabling customers to establish plans with their content hosted in Germany. Already, we're unlocking opportunities and quickly gaining momentum with EU customers. One of them, a European biotech company, is using Smartsheet to manage the release of its cancer treatment therapeutics. The company started with our U.S.-based Region but was unable to fully deploy Smartsheet on the Smartsheet platform due to EU data privacy requirements. But with our EU Region, this company was able to invest in both Smartsheet Enterprise and Advance Silver, leveraging Control Center and Dynamic View to help scale out therapeutic development workflows. Building on our international investments, we established a sales office in Germany and will be expanding into Japan this fiscal year.

在過去的幾年裡，我們投資了歐洲、亞太地區和美國聯邦政府等高潛力市場。去年 10 月，我們在歐盟推出了 Smartsheet Regions 產品，使客戶能夠通過在德國託管的內容制定計劃。我們已經在釋放機會並迅速獲得歐盟客戶的青睞。其中一家歐洲生物技術公司正在使用 Smartsheet 來管理其癌症治療藥物的發布。該公司從我們位於美國的地區開始，但由於歐盟數據隱私要求，無法在 Smartsheet 平台上完全部署 Smartsheet。但在我們的歐盟地區，這家公司能夠投資 Smartsheet Enterprise 和 Advance Silver，利用 Control Center 和 Dynamic View 來幫助擴展治療開發工作流程。在國際投資的基礎上，我們在德國設立了銷售辦事處，並將在本財年擴展到日本。

To close, we're positioned in the right place at the right time as the market for modern work management grows rapidly. We're hiring exceptional people and giving them the tools, resources and latitude they need to do great things. In a tight job market, we expanded our team by more than 600 people in FY '22. I have never felt more certain about our success going forward. Customers are choosing Smartsheet in record numbers, and the investments we're making across sales, marketing and product will directly support our growth for the years to come.

最後，隨著現代工作管理市場的快速增長，我們在正確的時間處於正確的位置。我們正在招聘傑出的人才，並為他們提供完成偉大事業所需的工具、資源和自由度。在緊張的就業市場中，我們在 22 財年將我們的團隊擴大了 600 多人。我從未對我們未來的成功感到更加確定。客戶正在以創紀錄的數量選擇 Smartsheet，我們在銷售、營銷和產品方面進行的投資將直接支持我們未來幾年的增長。

Now I'll turn it over to Pete.

現在我會把它交給皮特。

Thank you, Mark, and good afternoon, everyone. As Mark mentioned, we finished the year strong, with Q4 results that exceeded our guidance across the board and culminated in accelerating billings growth on a full year basis. We continue to experience strong momentum in our business, fueled by increasing awareness of the Smartsheet platform, continued success with our Advance offering and strong execution by our sales and product teams.

謝謝你，馬克，大家下午好。正如馬克所提到的，我們以強勁的勢頭結束了這一年，第四季度的業績全面超出了我們的預期，並最終加速了全年的賬單增長。我們的業務繼續保持強勁勢頭，這得益於對 Smartsheet 平台意識的提高、我們的 Advance 產品的持續成功以及我們的銷售和產品團隊的強大執行力。

I will now go through our financial results for the full year and the fourth quarter. Unless otherwise stated, all references to our expenses and operating results are on a non-GAAP basis and are reconciled to our GAAP results in the earnings release and presentation that was posted before the call.

我現在將介紹我們全年和第四季度的財務業績。除非另有說明，否則對我們費用和經營業績的所有引用均基於非公認會計原則，並與我們在電話會議前發布的收益發布和演示文稿中的公認會計原則結果一致。

For the full year FY '22, we ended with total revenue of $550.8 million, up 43% year-over-year, billings of $661.5 million, up 47% year-over-year, operating loss of $34.2 million and free cash flow of negative $20.8 million. We ended the year with annual recurring revenue of $638 million, a year-over-year increase of nearly $200 million.

在 22 財年全年，我們的總收入為 5.508 億美元，同比增長 43%，賬單為 6.615 億美元，同比增長 47%，運營虧損為 3420 萬美元，自由現金流為負2080萬美元。到年底，我們的年度經常性收入為 6.38 億美元，同比增長近 2 億美元。

Next, I will provide additional details on our fourth quarter financial results. Fourth quarter revenue came in at $157.4 million, up 43% year-over-year. Subscription revenue was $145.7 million representing year-over-year growth of 44%. Services revenue was $11.7 million, representing year-over-year growth of 34%.

接下來，我將提供有關我們第四季度財務業績的更多詳細信息。第四季度收入為 1.574 億美元，同比增長 43%。訂閱收入為 1.457 億美元，同比增長 44%。服務收入為 1170 萬美元，同比增長 34%。

Turning to billings. Fourth quarter billings came in strong at $224.3 million, representing year-over-year growth of 48%. Approximately 93% of our subscription billings were annual, with 4% monthly. Quarterly and semiannual represented approximately 3% of the total. Multiyear billings represented less than 1% of total billings.

轉向比林斯。第四季度的賬單強勁，達到 2.243 億美元，同比增長 48%。我們大約 93% 的訂閱賬單是按年支付的，其中 4% 是按月支付的。季度和半年度約佔總數的 3%。多年賬單佔總賬單的比例不到 1%。

Moving on to our reported metrics. The number of customers with ARR over $50,000 grew 55% year-over-year to 2,354, and a number of customers with ARR over $100,000 grew 74% year-over-year to 1,026. These customer segments now represent 55% and 41%, respectively, of total ARRs. The percentage of our ARR coming from customers with ARR over $5,000 is now 86%.

繼續我們報告的指標。 ARR 超過 50,000 美元的客戶數量同比增長 55% 至 2,354，ARR 超過 100,000 美元的客戶數量同比增長 74% 至 1,026。這些客戶群現在分別佔總 ARR 的 55% 和 41%。我們的 ARR 來自 ARR 超過 5,000 美元的客戶的百分比現在是 86%。

Next, our domain average ACV grew 37% year-over-year to 6,977. We ended the quarter with a dollar-based net retention rate of 134%, a 3 percentage point improvement from Q3. The full churn rate dropped further and remains below 5%. For FY '23, we expect our dollar-based net retention rate to be above 130%.

接下來，我們的域平均 ACV 同比增長 37% 至 6,977。我們以 134% 的美元淨保留率結束本季度，比第三季度提高了 3 個百分點。整體流失率進一步下降，仍低於 5%。對於 23 財年，我們預計我們基於美元的淨保留率將高於 130%。

Now turning back to the financials. Our total gross margin was 82%. Our Q4 subscription gross margin was 87%. We expect our gross margin for FY '23 to remain above 80%. Overall, operating loss in the quarter was negative $14.5 million or 9% of revenue. Free cash flow was negative $2.7 million, which overachieved against our guidance due to strong collections.

現在回到財務方面。我們的總毛利率為 82%。我們第四季度的訂閱毛利率為 87%。我們預計我們 23 財年的毛利率將保持在 80% 以上。總體而言，本季度的運營虧損為負 1450 萬美元，佔收入的 9%。自由現金流為負 270 萬美元，由於收款強勁，超出了我們的預期。

Now let me move on to guidance. Starting in FY '23, we will be reverting to our pre-COVID approach by providing billings and free cash flow guidance on a full year basis only. Given the growing seasonality in our business, we expect our quarterly billings cadence to be more weighted towards the back half of the year, with the lowest percentage of billings on an absolute and growth basis occurring in the first quarter and then building towards the back of the year. The factors that contribute to this growing seasonality are the expansion of additional territories, internal promotions to quota-carrying or management roles, the front-loaded hiring of new sales reps and an in-person sales kickoff in March.

現在讓我繼續指導。從 23 財年開始，我們將通過僅提供全年的賬單和自由現金流指導來恢復我們在 COVID 之前的方法。鑑於我們業務的季節性增長，我們預計我們的季度賬單節奏將更多地偏向下半年，絕對和增長基礎上的最低百分比的賬單發生在第一季度，然後逐漸建立那一年。導致這種季節性增長的因素是更多地區的擴張、對配額持有或管理角色的內部晉升、新銷售代表的前期招聘以及 3 月份的面對面銷售啟動。

For the first quarter of FY '23, we expect revenue to be in the range of $162 million to $163 million, non-GAAP operating loss to be in the range of $25 million to $23 million, and non-GAAP net loss per share to be between $0.20 and $0.18 based on weighted average shares outstanding of 128 million. For the full year FY '23, we expect revenue to be in the range of $750 million to $755 million, representing growth of 36% to 37%. Billings are expected to be in the range of $905 million to $925 million, representing growth of 37% to 40%.

對於 23 財年第一季度，我們預計收入將在 1.62 億美元至 1.63 億美元之間，非 GAAP 運營虧損在 2500 萬美元至 2300 萬美元之間，非 GAAP 每股淨虧損為根據 1.28 億股的加權平均流通股，在 0.20 美元至 0.18 美元之間。對於 23 財年全年，我們預計收入將在 7.5 億美元至 7.55 億美元之間，增長 36% 至 37%。預計賬單將在 9.05 億美元至 9.25 億美元之間，增長 37% 至 40%。

We expect non-GAAP operating loss to be in the range of $90 million to $80 million and non-GAAP net loss per share to be between $0.70 and $0.62 for the year based on approximately 128.5 million weighted average shares outstanding. We expect free cash flow to be between negative $15 million and negative $10 million. Given the momentum in our business, combined with incremental investment opportunities we see this year in global field capacity, international expansion and brand awareness, we expect continuing targeted investments with both short-term and multiyear impacts, while modestly improving free cash flow margins.

根據約 1.285 億股加權平均流通股，我們預計非 GAAP 經營虧損將在 9000 萬美元至 8000 萬美元之間，非 GAAP 每股淨虧損將在 0.70 美元至 0.62 美元之間。我們預計自由現金流在負 1500 萬美元到負 1000 萬美元之間。鑑於我們業務的發展勢頭，再加上我們今年在全球現場產能、國際擴張和品牌知名度方面看到的增量投資機會，我們預計將繼續進行具有短期和多年影響的定向投資，同時適度提高自由現金流利潤率。

To conclude, we finished FY '22 with tremendous momentum, which we expect to continue into FY '23. We have high conviction in our long-term growth opportunity, and we'll continue to invest appropriately.

總而言之，我們以巨大的勢頭完成了 22 財年，我們預計這種勢頭將持續到 23 財年。我們對我們的長期增長機會充滿信心，我們將繼續進行適當的投資。

Now let me turn it back to the operator for questions. Operator?

現在讓我把它轉回給接線員提問。操作員？

(Operator Instructions) Your first question comes from the line of Michael Turrin with Wells Fargo.

（操作員說明）您的第一個問題來自富國銀行的 Michael Turrin。

I guess first, you mentioned displacing other CWMs and some wins in the prepared remarks. Anything else you could share, Mark, around what's driving that? Maybe you can also just spend a moment on what drives competitive differentiation for Smartsheet today?

我想首先，您在準備好的評論中提到了取代其他 CWM 和一些勝利。馬克，你還有什麼可以分享的，圍繞著什麼？也許您也可以花點時間了解一下今天是什麼推動了 Smartsheet 的競爭差異化？

Yes, I think while the bulk of the business is still displacing, I would say, traditional tools and workflows, we are seeing opportunities as we land in more nodes within a business to really encroach on where other people may have presence. And as companies are looking at larger investments, they are looking to, in some cases, rationalize. If they can move to one platform that meets their security compliance and the functional needs, that's really a win that drives efficiency for them.

是的，我認為雖然大部分業務仍在取代傳統工具和工作流程，但我們看到了機會，因為我們在業務中登陸更多節點，真正侵占其他人可能存在的地方。隨著公司正在尋求更大的投資，他們在某些情況下正在尋求合理化。如果他們可以遷移到一個滿足其安全合規性和功能需求的平台，那麼這確實是一種提高他們效率的勝利。

Again, it's more on the occasional front, but it was notable in the sense that we had a few really nice-sized wins and growth opportunities that either happened displacing a competitor or we were growing very tremendously around the competitor who was in an account.

同樣，這更多是在偶爾的情況下，但值得注意的是，我們獲得了一些非常大的勝利和增長機會，這些機會要么發生在取代競爭對手，要么我們在帳戶中的競爭對手周圍獲得了非常巨大的增長。

And again, I think as we look at why we're succeeding, it is really compelling to have a conversation with a customer when you have confidence in your portfolio when it's highly differentiated. It's not a discussion on faster, prettier, qualitative things, it's really things that are highly quantitative. I think the Advance offering where people can get their heads around scaled process with Control Center and such, integration with Data Shuttle, those are things others simply don't provide. And that, I think, is proving out really nicely in the Advance statistics we've been able to post.

再一次，我認為當我們審視我們成功的原因時，當您對自己的產品組合高度差異化時充滿信心時，與客戶進行對話真的很有吸引力。這不是關於更快、更漂亮、定性的事物的討論，它實際上是高度定量的事物。我認為 Advance 產品可以讓人們通過 Control Center 了解規模化的流程，以及與 Data Shuttle 的集成，這些都是其他人根本無法提供的。我認為，這在我們能夠發布的高級統計數據中得到了很好的證明。

It's very helpful. Pete, one more, if I may. The free cash flow margin guide getting close to breakeven in the coming year looks on pace for that 10% target level. The operating margin guide in that backdrop looks maybe a bit lighter than would have expected. So could you remind us what might broaden the gap between those 2 margins in the coming year? And then maybe we can revisit, you ticked off a couple of things where those investments are heading.

這很有幫助。皮特，如果可以的話，再來一個。未來一年接近盈虧平衡的自由現金流利潤率指南看起來有望達到 10% 的目標水平。在這種背景下，營業利潤率指南看起來可能比預期的要輕一些。那麼，您能否提醒我們來年可能會擴大這兩個利潤率之間的差距？然後也許我們可以重新審視一下，你勾勒出這些投資正在走向的幾件事。

So Michael, you should think of billings and free cash flow as sort of going together, and they're sort of lagged by revenue and op margin. So when you think about sort of the gap, we are going to be hiring sort of a fairly large capacity in the field to go after this opportunity Mark talked about. That's going to represent itself in billings growth and cash flow, which is what's reflected in our guide -- in the improving guide we've provided. There is a lag between the billings converting to revenue, and that's what's reflecting the op margin guide. So you see that sort of following as a lag behind the free cash flow numbers. .

所以邁克爾，你應該把賬單和自由現金流看作是一種結合，它們在收入和運營利潤率方面有點落後。因此，當您考慮某種差距時，我們將在該領域招聘相當大的人才來抓住馬克談到的這個機會。這將在賬單增長和現金流中體現出來，這反映在我們的指南中——在我們提供的改進指南中。賬單轉換為收入之間存在滯後，這就是反映運營利潤率指南的原因。所以你認為這種追隨者落後於自由現金流量。 .

Your next question comes from the line of Stan Zlotsky with Morgan Stanley.

您的下一個問題來自摩根士丹利的斯坦·茲洛茨基（Stan Zlotsky）。

This is Bemnet Zewdie on for Stan. I think first question from our end. Maybe can you just dig into the investments, especially in this market environment, which seems to be paying more attention to profitability given sort of a large market opportunity. How is your team thinking about the trade-off between flowing through potential returns to top line beats of bottom line versus reinvesting back into the business? I'll start there, and let me dig in.

這是斯坦的 Bemnet Zewdie。我認為我們的第一個問題。也許您可以深入研究投資，尤其是在這種市場環境下，考慮到巨大的市場機會，它似乎更加關注盈利能力。您的團隊如何考慮在將潛在回報流向頂線勝於底線與再投資於業務之間進行權衡？我將從那裡開始，讓我深入研究。

So Ben, your question in terms of sort of where we're investing, I'll take that as the first part. And at the end, I'll cover sort of how we're thinking about it more broadly. So when you think of our investments, we're making investments in sales and marketing to go after this opportunity. And in ranked order, we're making investments with first, an increase in global field capacity. It's across the board, but it's focused on international with some greater emphasis on international and enterprise customers. And that's about ramping these people, getting them productive. That's the first part of it.

所以本，你關於我們在哪裡投資的問題，我將把它作為第一部分。最後，我將介紹我們如何更廣泛地思考它。因此，當您想到我們的投資時，我們正在對銷售和營銷進行投資以抓住這個機會。按照排名順序，我們首先進行投資，即增加全球現場容量。它是全面的，但它專注於國際，更加強調國際和企業客戶。那就是讓這些人變得更有效率，讓他們更有生產力。這是它的第一部分。

Orders of magnitude, that's about 3 points year-on-year, if you will. The second part of it is global awareness Think about it as top of funnel and mid-funnel, getting our customers to know or people to know who we are. And lastly, we've got sort of a resumption in in-person customer engagement and field enablement spending. They're starting to sort of get closer up to the pre-COVID level. So those are 3 factors in sales and marketing that are driving it.

數量級，如果你願意的話，這大約是同比增長 3 個點。第二部分是全球意識 將其視為漏斗頂部和漏斗中部，讓我們的客戶知道或讓人們知道我們是誰。最後，我們已經恢復了面對面的客戶參與和現場支持支出。他們開始有點接近 COVID 之前的水平。因此，這是推動它的銷售和營銷中的 3 個因素。

To your question of like how are we thinking about it, we're driving this business with a solid eye to our unit economics and the customer signal we've been getting. Mark talked about the tremendous momentum we've seen. That's really fueling sort of how we invest. And then we're looking to specific numbers in terms of how we metric this thing, the LTV to CAC. Those are the ways we sort of think of that investment.

對於您的問題，例如我們如何考慮它，我們正在以紮實的眼光來推動這項業務，以我們的單位經濟和我們已經獲得的客戶信號。馬克談到了我們所看到的巨大勢頭。這確實推動了我們的投資方式。然後我們正在尋找具體的數字來衡量我們如何衡量這個東西，從 LTV 到 CAC。這些就是我們對這項投資的看法。

Got it. That's helpful. And then maybe one more on fiscal '23 billings guidance. Essentially with billing guidance implying, let's say, roughly like 38% growth, if net revenue retention stays between low to mid 130% range. It almost feels like there's limited implied new customer acquisitions. So maybe just walk us through how you're thinking about the pace of new logo acquisitions for fiscal '23, and what that's implied on guidance there?

知道了。這很有幫助。然後也許還有一個關於 '23 財年賬單指南的內容。基本上，如果淨收入保留率保持在 130% 的中低範圍之間，那麼計費指南基本上暗示了大約 38% 的增長。幾乎感覺隱含的新客戶獲取有限。因此，也許只是讓我們了解一下您如何考慮 23 財年新徽標收購的步伐，以及那裡的指導暗示了什麼？

Yes. So you should think of -- if you think of the total build for billings, it comes from like a few spots. It comes from new customers, expansion in new customers, and it comes from the numbers we capture on a net dollar retention rate. So we've guided you to the numbers in terms of what net dollar retention rate expectations are at 130%. If we sort of stayed at those levels, we expect healthy sort of contributions from new and expansion in new. And as Mark said, we're focused on both ends of the spectrum, we're thinking of enterprise growth, and we're looking at a number of logos we land at the lower end as well as licenses we land there.

是的。因此，您應該考慮-如果您考慮比林斯的總構建，它來自幾個地方。它來自新客戶、新客戶的擴張，以及我們根據淨美元保留率獲得的數字。因此，我們引導您了解淨美元保留率預期為 130% 的數字。如果我們保持在這些水平，我們期望新的和新的擴張帶來健康的貢獻。正如馬克所說，我們專注於光譜的兩端，我們正在考慮企業增長，我們正在研究我們在低端登陸的一些標誌以及我們在那裡登陸的許可證。

Your next question comes from the line of George Iwanyc with Oppenheimer.

您的下一個問題來自 George Iwanyc 與 Oppenheimer 的對話。

Pete, maybe just following up on the new business strength. Are you seeing any changes in the use cases that people start with Smartsheet? And can you also give us a sense of once they do start, how quickly they start to cross across department or start to expand across departments?

皮特，也許只是在跟進新的業務實力。您是否看到人們開始使用 Smartsheet 的用例有任何變化？您能否也讓我們了解一下他們一旦開始，他們開始跨部門或開始跨部門擴展的速度有多快？

We really haven't seen -- this is Mark. We haven't really seen a deviation from what's driven demand over the last couple of years. This notion of programs, projects and process, I mean, that is -- those are the 3 big vectors. Those are very deep veins. It's where most people start. Project-oriented use cases are still the tip of the spear.

我們真的沒見過——這是馬克。在過去幾年中，我們並沒有真正看到與驅動需求的偏差。我的意思是，程序、項目和過程的概念，即，它們是 3 個大向量。那是非常深的靜脈。這是大多數人開始的地方。面向項目的用例仍然是矛頭。

The diversification that we see isn't really so much a difference in the process or the area. It's more the function that it serves. So it may come in, in marketing and branch into operation or into finance. But we really have not seen a deviation from what we've observed in the last few years. It remains a similar land and expand and then climb motion.

我們看到的多樣化在流程或領域上並沒有太大的區別。它更多的是它所服務的功能。所以它可能會進入市場，進入運營或金融領域。但我們確實沒有看到與過去幾年觀察到的情況有偏差。它仍然是一個類似的土地和擴張然後爬升的運動。

All right. And Mark, given the environment that we're seeing right now, are you seeing any changes with your European customers, where they're taking a bit more cautious view of spending or making any other adjustments?

好的。馬克，鑑於我們現在看到的環境，您是否看到您的歐洲客戶有任何變化，他們對支出或做出任何其他調整採取了更加謹慎的態度？

We have not seen it yet. No. The motion we have around selling to existing customers, landing new, we have not seen a blip at all in any of our regions.

我們還沒有看到它。不。我們圍繞向現有客戶銷售產品、登陸新客戶的動議，在我們的任何地區都沒有看到任何跡象。

All right. Have you built in any conservatism in your guidance for kind of the geopolitical outlook?

好的。您是否在指導地緣政治前景時建立了任何保守主義？

So George, we've sort of assumed the environment we have today stays largely similar. So we have not assumed any big turns in the environment that turn negative, but we assume the current environment sort of persist is our assumption.

所以喬治，我們有點假設我們今天的環境基本上保持相似。所以我們沒有假設環境中有任何大的轉折，但我們假設當前的環境持續存在是我們的假設。

Your next question comes from the line of Terry Tillman with Truist Securities.

您的下一個問題來自 Truist Securities 的 Terry Tillman。

First, can you all hear me okay?

首先，你們能聽到我的聲音嗎？

Yes.

是的。

We can, Terry.

我們可以，特里。

Okay. The first question for you, Mark, is as it relates to the introduction of Pro plan, what I'm curious about is what are you seeing so far in terms of the customer adoption? Is it smaller organizations? Or is this actually a lower friction way of actually getting midsize or bigger enterprises to get going? And then I had a follow-up for Pete.

好的。馬克，你的第一個問題是與 Pro 計劃的引入有關，我很好奇的是，到目前為止，你在客戶採用方面看到了什麼？是較小的組織嗎？或者這實際上是一種讓中型或大型企業開始發展的低摩擦方式？然後我對皮特進行了跟進。

It's all up and down the spectrum, Terry. And when we see people starting, it's not an S or an M or a large enterprise-type statement. People start from all size organizations. And the effect that we're seeing is improvement in conversion rates, right? People have a faster start and then it's our job to understand who's signing up and then to apply the field capacity that we have to make sure that if it is a large customer with high potential and interest to grow, that we're there and ready to support them. And if it's a small customer, putting the self-directed mechanisms in place where they can thrive. But yes, it's really need to see both the conversion rate improvement domestically and internationally across those different segment sizes. Pete? Was there a question, Terry, you have for Pete as well?

特里，這一切都在上下波動。當我們看到人們開始時，這不是 S 或 M 或大型企業類型的聲明。人們從各種規模的組織開始。我們看到的效果是轉化率的提高，對吧？人們有一個更快的開始，然後我們的工作就是了解誰在註冊，然後應用我們必須確保如果它是一個具有高潛力和發展興趣的大客戶，我們就在那裡並準備好了支持他們。如果它是一個小客戶，把自我導向的機制放在他們可以茁壯成長的地方。但是，是的，確實需要看到這些不同細分市場規模在國內和國際上的轉化率都有所提高。皮特？有什麼問題嗎，特里，你也想問皮特嗎？

Got it. Yes, I did. I did. So Pete, just a follow-up question. And I don't have my notes from the Analyst Day in front of me, so I apologize. So part of this is going to need some help regurgitating kind of the guidepost. But you are talking about a pretty significant ramp in investing here for growth. And I think you've called out some of those areas, including international sales capacity. Does this change kind of the path to $1 billion? Or just anything more about what this could mean in terms of that longer-term kind of revenue ramp and getting to that target?

知道了。是的，我做到了。我做到了。所以皮特，只是一個後續問題。我面前沒有分析師日的筆記，所以我很抱歉。因此，其中一部分將需要一些幫助來反芻那種路標。但是你說的是為了增長而在這裡投資的一個相當大的增長。我認為你已經提到了其中一些領域，包括國際銷售能力。這會改變通往 10 億美元的道路嗎？或者就長期收入增長和實現目標而言，這可能意味著什麼？

So Terry, we're not changing sort of anything relative to what we've shared with you. Essentially, the only thing we've sort of given you is the guidance for fiscal year '23. And the key salient points to take away from that are, first of all, we've guided you to a free cash flow margin that will imply improvement year-on-year, and that's sort of a part of our trend driving to sort of what I call responsible growth.

所以特里，我們不會改變與我們與您分享的內容相關的任何內容。從本質上講，我們給你的唯一東西就是 23 財年的指導。而要消除的關鍵點是，首先，我們已經引導您實現自由現金流量利潤率，這將意味著同比有所改善，這是我們推動趨勢的一部分我稱之為負責任的增長。

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

您的下一個問題來自於 KeyBanc 的 Steve Enders。

I guess I just want to get a little bit better sense for how you're thinking about the investments that you are making in sales capacity, and it seems like even all of your closest competitors so far have raised the outlook and spend for this next year. So I guess, what kind of gives you the confidence in the ROI of those investments that you're putting to work? Are you kind of pulling forward any sales higher that maybe we're thinking about from '24 before? And how should we kind of think about the impact this could potentially have on the model going forward?

我想我只是想更好地了解您是如何考慮在銷售能力方面進行的投資的，而且似乎到目前為止，即使是您最接近的所有競爭對手也都提高了前景並為此進行了支出年。所以我想，什麼樣的方式能讓你對你投入工作的投資的投資回報率充滿信心？你有沒有把我們從 24 年之前考慮的更高的銷售額推向更高的水平？我們應該如何考慮這可能對未來模型產生的影響？

I think the confidence is really driven by a convergence of a few factors. There is a massive uptick in awareness of the category. That's first. The second is based on some of the offerings we have, whether it's new packaging or new products we're bringing into the portfolio, the product market fit is proving out. And much like Advance was new in Q2 of last year, we're almost 3 quarters into this now. So the evidence is starting to really take root.

我認為信心實際上是由幾個因素共同推動的。對該類別的認知度大幅提升。這是第一個。第二個是基於我們提供的一些產品，無論是新包裝還是我們引入產品組合的新產品，產品市場契合度都得到了證明。就像去年第二季度的 Advance 是新的一樣，我們現在已經快 3 個季度了。因此，證據開始真正紮根。

The other piece is from a go-to-market standpoint, we have figured out the mechanism for landing somebody, growing someone to modest contribution and then up through the tiers of $25,000, $50,000, $100,000, $0.5 million and beyond. So that is a model that we feel very confident in, and that's a customer -- that's reacting to customer signal as well, not just sort of the state of the market overall. And when you look at being deeply entrenched at the world's largest companies with a high ability to invest in this category, you have to feed that.

另一部分是從進入市場的角度來看，我們已經找到了讓某人落地的機制，讓某人成長為適度的貢獻，然後通過 25,000 美元、50,000 美元、100,000 美元、50 萬美元甚至更高的等級。所以這是一個我們非常有信心的模型，這是一個客戶——它也在對客戶的信號做出反應，而不僅僅是整體市場的狀態。當你看到在全球最大的公司中根深蒂固的時候，這些公司有很強的投資這一類別的能力，你必須滿足這一點。

So on the past calls, I've often talked about when you see the green light, you must go. Like the green light is on right now. We have to follow this. And when you look at the LTV to CAC, which has been improving, over the last year, it's improved from the high single digits to like greater than 13. Now that's not going to manifest itself in sort of the in-year measures. But when you look at LTV to CAC, which is north of 13, that gives you great confidence in longer horizon investment. So we are very much pushing the throttle forward.

所以在過去的電話中，我經常談到當你看到綠燈時，你必須走。就像現在綠燈亮了一樣。我們必須遵循這一點。當您查看 LTV 到 CAC 時，它在過去一年中一直在提高，它從高個位數提高到超過 13。現在這不會在年內措施中體現出來。但是，當您查看 LTV 到 CAC（在 13 以北）時，這讓您對長期投資充滿信心。所以我們非常努力地向前推進油門。

Okay. That's very helpful. So I mean, I guess, to put a kind of finer point on it, it sounds like it's becoming a more repeatable sales motion that the go-to-market teams are going after and Smartsheet Advance is kind of a part of that. Is that kind of the right way to kind of frame that?

好的。這很有幫助。所以我的意思是，我想，為了更好地說明這一點，這聽起來像是進入市場團隊正在追求的一種更具可重複性的銷售活動，而 Smartsheet Advance 就是其中的一部分。那是一種正確的框架方式嗎？

Absolutely. We have over 500 Advance transactions now at companies, both new, midsize, all the way up to our largest customer. So we're pattern-matching off of that. And it's something we're doing domestically in all the segments up and down. And again, just riding that momentum.

絕對地。我們現在有超過 500 筆預先交易，包括新公司、中型公司，一直到我們最大的客戶。所以我們正在對此進行模式匹配。這是我們在國內上下所有領域都在做的事情。再一次，只是乘著這種勢頭。

And one question you asked, Steve, is what's the future model look like? So we've talked about these field investments in the areas that Mark just mentioned. They're across all the major areas of opportunity. And as these resources become productive, we expect the resumption of scale across those OpEx line items, that's the way you would model it.

你問的一個問題，史蒂夫，未來的模型是什麼樣的？所以我們已經討論了馬克剛剛提到的領域的這些實地投資。它們涉及所有主要的機會領域。隨著這些資源變得富有成效，我們預計這些運營支出項目的規模將恢復，這就是您對其建模的方式。

Your next question comes from the line of Mark Murphy with JPMorgan.

您的下一個問題來自摩根大通的 Mark Murphy。

Yes. So I'm a little surprised, the sequential billings growth in Q4 is just very strong. It's actually stronger than your seasonal norms. And we've kind of been seeing the opposite across the industry. So I'm just wondering if there was anything unusual. Were there any 1 or 2 unusual mega deals or discrete needle-movers that might have affected that? Or is this something that was more broad-based in Q4?

是的。所以我有點驚訝，第四季度的連續賬單增長非常強勁。它實際上比你的季節性標準更強。我們在整個行業都看到了相反的情況。所以我只是想知道是否有什麼不尋常的地方。是否有任何 1 或 2 不尋常的大型交易或離散的針推動者可能會影響到這一點？還是這在第四季度更廣泛？

So Mark, the short answer is it was broad-based, just few momentum, customer interest. Nothing unusual, nothing out of the ordinary, it's just solid demand, as Mark referenced in his earlier comments. Customers are seeing the value of this. We're seeing progression across all elements of it, large deals, advanced, the dollar-based net retention rate is up. We're just seeing it across the board.

所以馬克，簡短的回答是它是廣泛的，只是很少的動力，客戶的興趣。正如馬克在他之前的評論中提到的那樣，沒有什麼不尋常的，沒有什麼不尋常的，這只是堅實的需求。客戶看到了它的價值。我們看到它的所有元素都在進步，大宗交易、高級交易、基於美元的淨保留率都在上升。我們只是全面地看到它。

Yes. But this quarter did not hinge on a mega deal. This is tens and tens and tens of $50,000 and $100,000 and $100,000-plus deals. We welcome the mega deal, right, but this quarter did not hinge on that.

是的。但本季度並不取決於大型交易。這是數十、數十和數十個 50,000 美元、100,000 美元和 100,000 美元以上的交易。我們歡迎這筆巨額交易，對，但本季度並不取決於此。

Yes. Okay. Interesting. Mark, my second question is just from the perspective of building pipeline. Is it currently more effective for you to emphasize work management positioning or actually low code, no code? Just given there's so much buzz around low code and there's so much imperative to try to put the pool -- those products into the hands of the people that are kind of the subject matter experts. So I'm just curious if you're kind of able to realize an extra tailwind due to your strength and your linkage on the low code side?

是的。好的。有趣的。馬克，我的第二個問題只是從構建管道的角度來看。你目前是強調工作管理定位更有效還是實際上低代碼，沒有代碼？只是考慮到關於低代碼的嗡嗡聲如此之多，並且有如此多的必要嘗試將池 - 那些產品交到主題專家的人手中。所以我很好奇，由於你的實力和低代碼方面的聯繫，你是否能夠獲得額外的順風？

I would say that's building, but I wouldn't say that's the key tailwind. I mean the key tailwind is people now recognizing there's an investment opportunity that helps them unlock value that sits within their business units. So they're saying, "I have big opportunities to pursue, I'm stretched on my IT front, how do I unlock my business units to actually make progress?" So when they call, they don't call up and say, "Hey, I'm working -- looking for work management platform. Hey, I'm looking for a no-code solution." They're saying, "I have a business problem, I think you can help."

我會說這是建設，但我不會說這是關鍵的順風。我的意思是關鍵的順風是人們現在認識到有一個投資機會可以幫助他們釋放業務部門內的價值。所以他們說，“我有很大的機會去追求，我在 IT 方面捉襟見肘，我如何解鎖我的業務部門以真正取得進步？”所以當他們打電話時，他們不會打電話說，“嘿，我正在工作——尋找工作管理平台。嘿，我正在尋找無代碼解決方案。”他們說，“我有一個業務問題，我想你可以幫忙。”

And then our job is to map to that use case and that business case that they articulate. But I would say the predominant call on the inbound isn't centered around no code or work management. But the nice thing is it starting to feel natural to people like, "Hey, this is the area of product and technology investment that can enable my business team." And that is -- again, that's not a philosophical sale anymore that's starting to hit mainstream.

然後我們的工作是映射到他們闡明的那個用例和那個商業案例。但我會說入站呼叫的主要呼叫不是以無代碼或工作管理為中心。但令人高興的是，人們開始覺得它很自然，“嘿，這是產品和技術投資領域，可以幫助我的業務團隊。”那就是 - 再次，這不再是開始成為主流的哲學銷售。

Okay. One final one, Pete. If we're able to look within the sales and marketing budget, could you comment at all just on the spend on digital advertising or performance marketing? As a percentage of revenue, is that increasing or decreasing this fiscal year? I'm just -- I guess I'm just trying to understand that vector of investment versus direct field sales, if you will.

好的。最後一個，皮特。如果我們能夠查看銷售和營銷預算，您能否就數字廣告或績效營銷的支出發表評論？作為收入的百分比，這個財政年度是增加還是減少？我只是 - 我想我只是想了解投資與直接現場銷售的關係，如果你願意的話。

So Mark, we've taken the approach that we think of demand gen when we think of this marketing spend as being a combination of various channels. The PPC is one of the channels. It's not our biggest. Our biggest channel is how we organically have people find us through content. It's through viral adoption, it's through sharing. So to answer your question, yes, our percentage of sort of spend is up, but it's sort of consistent with the way we've ramped it up for Q4. That's the way we're staying with sort of our marketing investment.

所以馬克，當我們認為這種營銷支出是各種渠道的組合時，我們採用了我們認為需求生成的方法。 PPC是渠道之一。這不是我們最大的。我們最大的渠道是我們如何有機地讓人們通過內容找到我們。這是通過病毒式採用，通過分享。所以回答你的問題，是的，我們的支出百分比有所上升，但這與我們在第四季度增加支出的方式是一致的。這就是我們進行營銷投資的方式。

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

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

Congrats on the quarter. Most of my questions have been asked. But I guess the 2 that come to mind are, if we look at the gradients, both around retention and expansion, how much more room is there to go before we kind of hit the asymptote? I mean sub-5% churn is among best-in-class at this point. How much lower can that rate go? And also, the 134 , I think you're almost back to your all-time highs of 135, is there -- as you unlock these new Advance motions, as you unlock some of these new enterprise sales cycles and the climb motion specifically, like is there -- I know we're talking about 130, which is already, I think, an increase from what you had mentioned before associated with next year. But like aspirationally, are we at new peaks to some extent? And then I've got a quick follow-up.

祝賀本季度。我的大部分問題都被問到了。但我想我想到的 2 點是，如果我們查看梯度，包括保留和擴展，在我們達到漸近線之前還有多少空間？我的意思是，低於 5% 的客戶流失率是目前同類產品中最好的。這個利率還能低多少？而且，134，我認為你幾乎回到了 135 的歷史最高點，是不是 - 當你解鎖這些新的 Advance 動作時，當你解鎖一些新的企業銷售週期和特別是攀登動作時，就像那裡一樣 - 我知道我們正在談論 130，我認為這已經比你之前提到的明年有所增加。但是，就像理想中的那樣，我們是否在某種程度上處於新的高峰？然後我有一個快速跟進。

Yes, Alex, I would say we are still at the single-digit penetration within our customers as a whole. So the upside -- when I think of achieving greatness, you don't achieve greatness through expense savings or through reducing your loss from 5 to 4.2. You achieve greatness by expanding. And when it's paired with lower losses, fantastic. But when I look at our -- even our largest accounts, we are -- we have a number of accounts that you would consider wall-to-wall, but so many of our big accounts still have massive upside.

是的，亞歷克斯，我想說我們在整個客戶中的滲透率仍然是個位數。所以好的一面——當我想到實現偉大時，你不會通過節省開支或將損失從 5 減少到 4.2 來實現偉大。你通過擴張實現偉大。當它與較低的損失配對時，太棒了。但是，當我查看我們的——即使是我們最大的賬戶，我們也是——我們有許多賬戶，你會認為它們是全面的，但我們的許多大賬戶仍然有巨大的上漲空間。

So we typically guide based on the signal we're seeing. As Pete just said, we're expected to be north of 130 this coming year. We're not capping ourselves to say, here's a max. We will continue to do things, either expansion, cross-selling advanced capabilities, serving up adjacent offerings like DAM. Again, we're not capping ourselves at all. And I think we have a really exciting portfolio to cross-sell in.

所以我們通常根據我們看到的信號進行引導。正如皮特剛才所說，我們預計來年將超過 130 個。我們並沒有限制自己說，這是一個最大值。我們將繼續做一些事情，要么擴展，交叉銷售高級功能，要么提供 DAM 等相鄰產品。同樣，我們根本沒有限制自己。而且我認為我們有一個非常令人興奮的投資組合可以交叉銷售。

Got it. And then, I guess, this is a 2-parter, but it's on everybody's mind. To the point that people have, I think, asked you about the investment dynamic for next year and investing to grow. Again, all 3 companies, public companies in this category and probably some of the private ones as well, have been spent -- are talking about spending more money investing to grow.

知道了。然後，我想，這是一個 2-parter，但它在每個人的腦海中。我認為人們已經向您詢問了明年的投資動態和投資增長。同樣，所有 3 家公司，這一類別的上市公司，可能還有一些私人公司，都已經花光了——正在談論花更多的錢投資以實現增長。

Is this a race for share? Is this coming out of COVID, the opportunity is even kind of higher? And to the point that you made -- I want to connect this to the point that you made around replacing one of the vendors. It's the first time I think you've talked about that on an earnings call at least. And I guess, do you do that because you see more opportunities like that in the pipeline and you're now investing to take share to some extent? I know those are 2 separate questions, but I guess humor is a stream of consciousness.

這是一場分享的競賽嗎？這是來自COVID，機會甚至更高嗎？關於你提出的觀點——我想把它與你在更換供應商之一時提出的觀點聯繫起來。這是我認為你至少在財報電話會議上第一次談到這一點。我想，你這樣做是因為你看到更多類似的機會正在醞釀中，而且你現在正在投資以在一定程度上獲得份額？我知道這是兩個獨立的問題，但我猜幽默是一種意識流。

Yes. I guess the first thing I'll say is our investment posture and thesis isn't based on reacting to someone else's move. So when we think about investing in our field scale, investing in our non-PPC marketing, that's -- those are all run -- those are all plays that we have identified based on what we're observing within our base. Is there a race? I mean, we are clearly looking to continue to optimize and to add more and more logos, which we proved out starting in the second half of this year.

是的。我想我要說的第一件事是我們的投資姿態，而不是基於對別人的舉動做出反應。因此，當我們考慮投資於我們的領域規模，投資於我們的非 PPC 營銷時，那就是 - 這些都是運行的 - 這些都是我們根據我們在基地內觀察到的情況確定的所有遊戲。有比賽嗎？我的意思是，我們顯然希望繼續優化並添加越來越多的徽標，我們從今年下半年開始就證明了這一點。

I would say in terms of the displacement, it's our job to provide maximum value to our existing customers. If there happens to be another player who's present, we would gladly grow around them. We will try and displace them. But in terms of where we spend our time, it is -- like we don't think the best return on investment is to go hunting for displacement. If someone happens to be there, absolutely, take them out, show greater value, consolidate. But I wouldn't say that the market is at the stage where that is the focal point for our company.

我想說的是，就排量而言，為現有客戶提供最大價值是我們的工作。如果碰巧有其他玩家在場，我們很樂意圍繞他們成長。我們將嘗試取代他們。但就我們將時間花在哪里而言，就像我們認為最好的投資回報不是去尋找流離失所者。如果有人碰巧在那裡，絕對，把他們拿出來，表現出更大的價值，鞏固。但我不會說市場正處於我們公司關注焦點的階段。

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

您的下一個問題來自與 Canaccord 合作的 DJ Hynes。

Congrats on the strong finish to the year. Mark, with the customers that are landing with Advance, are you taking a more active direct sales approach there? Or is that land still largely a self-discovery motion?

祝賀今年的強勁收官。馬克，對於使用 Advance 登陸的客戶，您是否採取了更積極的直銷方式？還是那片土地在很大程度上仍然是一種自我發現的運動？

Those come, DJ, in an assisted motion. So we think it's our duty to land somebody in a really fulsome way. So that's helping them understand what the -- what almost the guide book looks like to get started. So when you deploy an advanced platform with Control Center, Dynamic View, Data Shuttle, super useful for people to understand what those best practices are.

那些來了，DJ，輔助動作。所以我們認為我們有責任以一種非常令人愉快的方式讓某人著陸。因此，這有助於他們了解入門指南幾乎是什麼樣的。因此，當您部署具有控制中心、動態視圖、Data Shuttle 的高級平台時，對於人們了解這些最佳實踐是什麼非常有用。

And I would say, sometimes, those are more sophisticated processes where customers are really hungry to say, "Hey, how have others done it? How can I derisk? And how can I maximize my investments?" So whether that's through a sales rep or customer success or other functions we have, I would say there's a very strong customer appetite for that. And again, one of the things that we're looking to do even more of as we build out our field capacity.

我會說，有時，這些是更複雜的流程，客戶真的很渴望說，“嘿，其他人是怎麼做到的？我怎麼能冒險？我怎樣才能最大化我的投資？”因此，無論是通過銷售代表、客戶成功還是我們擁有的其他職能，我都會說客戶對此的興趣非常強烈。再一次，我們希望做的事情之一是在我們建立我們的現場能力時做更多的事情。

Yes. Yes. Got it. And then, Pete, the follow-up for you would just be around the numbers. So you grew headcount, I know it was like 32% to 33% in fiscal '22. What are your targets for headcount growth this year kind of implicit in the operating loss targets that you gave us?

是的。是的。知道了。然後，Pete，您的後續行動將圍繞數字進行。所以你增加了員工人數，我知道在 22 財年大約是 32% 到 33%。您給我們的經營虧損目標中隱含的今年員工人數增長目標是什麼？

So DJ, if you think about what Mark just mentioned, the growth that we would get would be in various roles that help sort of customers grow. We're not sort of talking about reps anymore or how many we're adding. We're going to add a significant number of these field roles. And if you want to think of that in unit -- in terms of dollar terms, I gave you a rough sense that field capacity will approximately be 3 points of operating margin change year-over-year as a part of the model.

所以 DJ，如果你想想 Mark 剛才提到的，我們將獲得的增長將是各種幫助客戶增長的角色。我們不再談論代表或我們增加了多少。我們將添加大量此類字段角色。如果你想以單位來考慮 - 以美元計算，我給你一個粗略的感覺，作為模型的一部分，現場容量將大約是營業利潤率的 3 個百分點。

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

您的下一個問題來自 Jefferies 的 Brent Thill。

Mark, the new business record levels you commented on, are you seeing any new dynamic there where you're starting larger, you're seeing multinational wins? What color would you add to that, that could give us a little more granularity of what you're seeing on the new business side?

馬克，你評論的新業務記錄水平，你是否看到了任何新的動態，你開始擴大規模，你看到跨國公司的勝利？你會添加什麼顏色，這可以讓我們更詳細地了解你在新業務方面看到的內容？

And Pete, no surprise, I'm going to ask on the operating loss. I mean a loss of $35 million to negative $90 million was almost 3x what the Street was expecting. I guess many are asking us like at what point are you willing to kind of pull back the throttle? Where do you start to see leverage in the model? Are we 2 years out, 3 years out? How do you think about the long-term commitment to shareholders on returning to a positive bottom line?

皮特，毫不奇怪，我要問的是經營虧損。我的意思是，從 3500 萬美元到負 9000 萬美元的損失幾乎是華爾街預期的 3 倍。我想很多人都在問我們，你願意在什麼時候拉回油門？您從哪裡開始看到模型中的槓桿作用？我們是 2 年，3 年嗎？您如何看待對股東的長期承諾以恢復積極的底線？

Brent, I'll start on the new side. So we're seeing a modest improvement in contribution from new deals. So of the thousands of new transactions that happen every quarter, we're starting to see some evidence. I think we had 20 Advance deals -- sorry, 20% of the new Advance deals were to new customers. So the really -- the average is still -- while it's up 15%, 20% year-on-year, it's still a sub-$2,000 figure. So it's not a huge contribution. And we expect that to remain very speedboat-like in terms of the lands. Pete, you want to add some color on the second half of that question?

布倫特，我將從新的一面開始。因此，我們看到新交易的貢獻略有改善。因此，在每個季度發生的數千個新交易中，我們開始看到一些證據。我想我們有 20 筆 Advance 交易——抱歉，20% 的新 Advance 交易是針對新客戶的。所以實際上 - 平均水平仍然 - 雖然同比增長 15% 和 20%，但仍然低於 2,000 美元。所以這不是一個巨大的貢獻。我們預計，就土地而言，這仍將非常像快艇。皮特，你想為這個問題的後半部分添加一些顏色嗎？

Yes. So Brent, you asked a question about op margins. So let's start with sort of how we think of profitability, that's the broader question you're asking. When I think of profitability, free cash flow and billings are sort of your leading indicator, Brent. And then op margin and revenue are the ones that lag. So we've guided on free cash flow to be sort of minus 1% to minus 2%, an improvement from where we exited this year at minus 4%.

是的。所以布倫特，你問了一個關於營業利潤率的問題。因此，讓我們從我們如何看待盈利能力開始，這是您要問的更廣泛的問題。當我想到盈利能力時，自由現金流和賬單是你的領先指標，布倫特。然後運營利潤率和收入是滯後的。因此，我們將自由現金流引導為負 1% 至負 2%，比我們今年退出時的負 4% 有所改善。

And if I go and I sort of -- I'm not giving guidance for FY '24, but if I take current scores and speed and assume macro stays the way it is, it wouldn't be unreasonable to assume that we would be free cash flow positive in FY '24. Now the flip end of your question is what about op margin. So because the revenue lags, you should think of op margin as following in periods after that is the way I would think of it. Did I answer your question?

如果我去並且我有點——我不會為 24 財年提供指導，但如果我採用當前的分數和速度並假設宏觀保持不變，假設我們會24財年的自由現金流為正。現在你的問題的另一端是操作保證金。因此，由於收入滯後，您應該將運營利潤率視為在此之後的一段時間內，這是我的想法。我回答你的問題了嗎？

Yes. And I guess, you're not giving the quota-carrying adds, but when you think about if you bucketed the international business sales and brand awareness, is the bulk of this going into sales, so 60% sales, 20% international, brand awareness the other 20%. How would you put the incremental bucket? Is there an easy way to explain that to all of us?

是的。而且我想，您並沒有提供配額，但是當您考慮是否將國際業務銷售和品牌知名度納入其中時，其中大部分進入了銷售，因此 60% 的銷售額，20% 的國際品牌其他 20% 的認知度。您將如何放置增量存儲桶？有沒有一種簡單的方法可以向我們所有人解釋這一點？

Yes. I would say that the biggest -- in rank order, the biggest number is in field capacity. And within the field capacity, you should think it's across the board, but there is a slightly higher weighting towards international and as well as to enterprise quota-carrying. So think enterprise field capacity. So think of that as your first element.

是的。我想說最大的——按排名順序，最大的數字是現場容量。在現場能力範圍內，你應該認為它是全面的，但對國際和企業配額的比重略高。所以想想企業領域的能力。因此，將其視為您的第一個元素。

In smaller magnitude, then you've got awareness. So you think of awareness as being mid funnel, top funnel, getting people to sort of know who Smartsheet is and be aware of who we are. And then the smallest number that is the [D&E] or the portion that's come about as a result of in-person resumption or whether customer events like Engage, which we'll host this year, or it's field-enablement activities, like the sales kickoff we just launched.

在較小的量級上，你就有了覺知。因此，您將意識視為中漏斗、頂級漏斗，讓人們知道 Smartsheet 是誰，並意識到我們是誰。然後是最小的數字，即 [D&E] 或由於親自恢復而產生的部分，或者是我們今年將舉辦的 Engage 等客戶活動，還是現場支持活動，如銷售我們剛剛推出的開球。

Your next question comes from the line of Arjun Bhatia with William Blair.

您的下一個問題來自與威廉布萊爾的 Arjun Bhatia。

This is Jake on for Arjun. So it sounds like top of funnel activity has never actually been stronger, but just kind of curious how much of this is driven by more category awareness versus the introduction of the Pro SKU, which could actually remove friction from initial customer adoption? And then just on that front, how are you approaching investments in customer onboarding and success teams as that size of the funnel continues to increase?

這是阿瓊的傑克。所以聽起來漏斗頂部的活動實際上從未如此強大，但只是有點好奇，與引入 Pro SKU 相比，這在多大程度上是由更多的類別意識推動的，這實際上可以消除最初客戶採用的摩擦？然後就在這方面，隨著漏斗規模的不斷增加，您如何著手對客戶入職和成功團隊的投資？

I think with every card that comes out of the chute in terms of what we're able to do and moving people up the curve and improving that LTV to CAC, it gives you more and more confidence in investing early for the right profile opportunity. I would say, in terms of how we weight the top of funnel, mid-funnel and the Pro plan, I think the Pro plan had immediate response when we had multiple sort of releases in the last 2 quarters.

我認為，就我們能夠做的事情和推動人們向上曲線並將 LTV 提高到 CAC 而言，每一張卡片都會讓你越來越有信心儘早投資以獲得正確的個人資料機會。我想說，就我們如何衡量漏斗頂部、漏斗中部和 Pro 計劃的權重而言，我認為 Pro 計劃在我們在過去兩個季度發布多種版本時會立即做出反應。

I would say the investments we deployed in the second half and as we make these investments in Q1 and Q2, there will be, I think, a bit of a delay on that. I think the Pro plan packaging had, again, almost an instant overnight response. So I do expect those both to contribute significantly this year. And in terms of the -- in terms of how we're applying the resource, the more we see people expanding beyond seats expansion and into these other higher-value areas, the more we say we think we can maximize it with an assisted motion.

我想說的是我們在下半年部署的投資，當我們在第一季度和第二季度進行這些投資時，我認為這會有一點延遲。我認為 Pro 計劃的包裝再次幾乎是一夜之間的反應。所以我確實希望這兩個人今年都能做出重大貢獻。就我們如何應用資源而言，我們越是看到人們擴展到座位擴展之外並進入這些其他更高價值的領域，我們越說我們認為我們可以通過輔助運動來最大化它.

So again, we're only 500 to 600 Advance deals into it. We have well over 100,000 customers, I think there's a lot of opportunity to put really capable people out there. And again, with every quarter that passes, I think we refined how we deploy that capital.

再說一次，我們只有 500 到 600 筆提前交易。我們有超過 100,000 名客戶，我認為有很多機會讓真正有能力的人出來。再一次，隨著每個季度的過去，我認為我們改進了我們如何部署這些資本。

That's great. And then just as a follow-up. So net retention, obviously, continues to be best-in-class. Kind of thinking about the expectation for next year, how should we bifurcate that between, obviously, you're still growing into a massive market with seat expansions, but also, you're starting to see a lot of robust adoption for Advance, so thinking about people actually climbing on the platform. How should we think about the delta between those and how you're approaching your fiscal '23 guidance?

那太棒了。然後只是作為後續行動。因此，顯然，淨留存率仍然是一流的。考慮一下對明年的預期，我們應該如何區分這兩者，顯然，您仍在通過座位擴展進入一個巨大的市場，而且，您開始看到 Advance 的大量採用，所以想想人們實際上在平台上攀爬。我們應該如何考慮這些之間的差異以及您如何接近您的 23 財年指導？

So our guidance, as we gave you for billings, was 37% to 40%. It contemplates sort of an extension of the things we've been successful at. If you start thinking about Advance, we've done about 550 deals this year. We're expecting that to sort of continue into the next fiscal year. Think of it broader in terms of not just Advance, but capabilities as a part for product suite. That's what's built in.

所以我們的指導，正如我們給你的賬單一樣，是 37% 到 40%。它考慮了我們已經成功的事情的擴展。如果您開始考慮 Advance，我們今年已經完成了大約 550 筆交易。我們預計這種情況會持續到下一個財政年度。不僅要從 Advance 的角度考慮它，還要將其作為產品套件的一部分來考慮。這就是內置的。

The second part of what you were asking was around sort of how do we visualize the net dollar retention rate. If you think of this market we're going after, we think the number is going to be bigger than 130 for next year. And it sort of contemplates the fact that we're going to get customers of different sizes. They're going to have different models of how they expand, but we're really bullish on the expansion potential that we have. And being an industry leader today with expansions, we think that trend continues.

你問的第二部分是關於我們如何可視化淨美元保留率。如果您考慮我們正在追求的這個市場，我們認為明年的數字將超過 130 個。它有點考慮到我們將獲得不同規模的客戶這一事實。他們將有不同的擴張模式，但我們非常看好我們擁有的擴張潛力。作為當今不斷擴張的行業領導者，我們認為這種趨勢仍在繼續。

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

您的下一個問題來自 Scott Berg 和 Needham 的觀點。

Congrats on a good quarter. I guess I have 2. Hopefully, they're generally pretty quick. The first one is on the replacement that you called out, Mark. I think -- I don't know, I think it was Alex that mentioned it earlier, first time on a public call. How much of that is replacing a vendor just because they -- their platform doesn't handle the scale moving from, I don't know, 10 seats to 100 seats or to 1,000 versus some of the capabilities, premium capabilities that you all have added over the last couple of years?

祝賀一個好季度。我想我有 2 個。希望它們通常很快。第一個是你叫出來的替代品，馬克。我認為-- 我不知道，我認為是Alex 前面提到的，第一次在公開電話中。其中有多少正在取代供應商只是因為他們 - 他們的平台無法處理從 10 個席位到 100 個席位或 1,000 個席位的規模，而不是你們所有人都擁有的一些功能、高級功能在過去幾年中添加？

I think displacement is easiest when there's tremendous pain felt within a customer situation. So when there's breakage and they can't move past go, that's a problem, and that they are forced to change. You have other opportunities where you may see another player in there within a node, a small node. And they may see some synergies and benefits, administration, what have you, security benefit. But when there's breakage or they're unable to proceed, that's the most pronounced. In this case, it was more of a breakage situation.

我認為當客戶感受到巨大的痛苦時，置換是最容易的。因此，當出現破損並且他們無法通過 go 時，這是一個問題，他們被迫改變。你還有其他機會在一個節點內看到另一個玩家，一個小節點。他們可能會看到一些協同作用和好處，管理，你有什麼，安全利益。但是當有破損或他們無法繼續時，這是最明顯的。在這種情況下，它更像是一種破損情況。

The account that I mentioned on the call, which talk about those $14,000 $50,000-plus expansions, we expanded around another CWM player. And it's just a fascinating case of that other vendor being within one team, and we are sprouting all over that company right now. And in that case, we may not displace that 1 node, but we're going to be in like 14 other nodes. And so it's never quite as -- there's not one pattern that we follow, and you basically react to the situation. But again, when people tap out and they cannot scale or they cannot proceed, those are, I would say, the most straightforward replacements.

我在電話會議上提到的帳戶，談到了 14,000 美元 50,000 美元以上的擴展，我們圍繞另一個 CWM 玩家進行擴展。這只是另一個供應商在一個團隊中的一個有趣的案例，我們現在正在整個公司中萌芽。在這種情況下，我們可能不會取代那 1 個節點，但我們會像其他 14 個節點一樣。所以它從來都不是——我們沒有遵循一種模式，你基本上會對這種情況做出反應。但同樣，當人們無法擴展或無法繼續時，我會說，這些是最直接的替代品。

Got it. Helpful. And then, Pete, from a follow-up perspective, your share-based compensation expense increased greatly in fiscal '22 over '21, much faster than the rate of revenue growth. Your guidance for '23 implies that, that kind of growth rate in share-based comp accelerates even further to about -- that's going to be up about 75% year-over-year, according to my math. Why such an expansion around share-based comp? It seems to be kind of an outsized outlier, but also kind of -- I think there's some concern that there is some commonality between that and maybe some of the excess sales and marketing spend that you all are going to spend this year?

知道了。有幫助。然後，Pete，從後續的角度來看，您的股票薪酬支出在 22 財年比 21 財年大幅增加，遠快於收入增長率。您對 23 年的指導意味著，根據我的數學計算，基於股票的薪酬的這種增長率甚至會進一步加速到大約 - 同比增長約 75%。為什麼圍繞基於股份的薪酬進行這種擴張？這似乎是一個巨大的異常值，但也有點——我認為有人擔心這之間存在一些共性，也許你們今年將要花費一些超額的銷售和營銷支出？

So Scott, let's break your question in 2 parts. First, '22 over '21, and then we can sort of talk a little bit in direction about '23. So the reason the stock-based compensation expense goes up is because, first of all, you're replacing people whose grants 4 years ago were at a fairly low strike price and you're replacing that personnel where the strike price is much higher, adding significant number of people to the equation. Like as we've grown, we've added 600 people net this year, all of that becomes a part of the narrative on why stock-based compensation in FY '22 is significantly sort of higher as you stated than FY '21.

所以斯科特，讓我們把你的問題分成兩部分。首先，'22 比 '21，然後我們可以稍微談談 '23 的方向。因此，基於股票的薪酬費用上漲的原因是，首先，您要替換 4 年前授予的執行價格相當低的人員，而您要替換執行價格高得多的人員，將大量的人添加到等式中。就像我們的成長一樣，我們今年淨增加了 600 人，所有這些都成為了為什麼 22 財年基於股票的薪酬比你所說的 21 財年高得多的敘述的一部分。

Now in FY '23, the same trend, we talked about adding sort of what I call field capacity. This is going to be, in large part, personnel. We're adding people into the equation, we're adding a field roles and field sort of capabilities to take our customers to the next level. This is going to come with basically a stock-based comp that goes with it.

現在在 23 財年，同樣的趨勢，我們談到了增加我所說的現場容量。這在很大程度上將是人員。我們正在將人員添加到等式中，我們正在添加字段角色和字段類型的功能，以將我們的客戶提升到一個新的水平。這將基本上伴隨著一個基於股票的補償。

Your next question comes from the line of Rishi Jaluria with RBC Capital Markets.

您的下一個問題來自 RBC Capital Markets 的 Rishi Jaluria。

Wonderful. Nice to see continued momentum in the business. I guess starting out, I wanted to double-click on the investments incrementally that you're making in driving more market awareness. Can you be a little bit more specific about kind of the areas that you intend to invest, what you're hoping to drive in terms of market awareness? And is that specific parts within organizations, specific types of customers? Or is this more broad-based that you're trying to go after? And then I've got a follow-up.

精彩的。很高興看到業務的持續發展勢頭。我想一開始，我想逐步雙擊您為提高市場知名度所做的投資。您能否更具體地說明您打算投資的領域類型，以及您希望在市場意識方面推動什麼？那是組織內的特定部分，特定類型的客戶嗎？或者這是你想要追求的更廣泛的基礎？然後我有一個跟進。

Yes, we really split it across 3 phases of the game. We have our top funnel, we have our mid-funnel, we have our bottom part of the funnel. And when I look at the opportunity, as I spoke earlier, to, call it, single-digit percentage penetration within our largest accounts, the opportunity is not just to put a lure in the water on an expensive auction model, PPC to get the next fish. It's how do you present yourself to the companies where you already have significant presence, where you have a really good set of use cases.

是的，我們真的把它分成了遊戲的 3 個階段。我們有我們的頂部漏斗，我們有我們的中間漏斗，我們有我們的漏斗底部。當我看到機會時，正如我之前所說，在我們最大的賬戶中實現個位數的滲透率，這個機會不僅僅是在昂貴的拍賣模式上引誘，PPC 來獲得下一條魚。這是您如何向您已經擁有重要影響力的公司展示自己，在那裡您擁有一組非常好的用例。

So ABM is a big part of that. And again, that's like tailored ABM. So when we look at -- looking at the 90% penetration we have with the Fortune 1, so many in the Fortune 5. It's very, very specific marketing into those areas. I think there's opportunity also outside of the PPC realm, which is in content that is really helping customers understand how they can apply CWM and digital asset management to their businesses, and those have yielded really well for us over the years.

所以 ABM 是其中的重要組成部分。再一次，這就像量身定制的 ABM。因此，當我們查看 - 看看我們在財富 1 中的 90% 滲透率，在財富 5 中如此之多。這是對這些領域非常非常具體的營銷。我認為在 PPC 領域之外也有機會，其內容是真正幫助客戶了解他們如何將 CWM 和數字資產管理應用到他們的業務中，這些年來對我們來說效果非常好。

I think the other areas around the events that Pete spoke to, we've been 2 years now in the COVID world, we're very much looking forward to an in-person event kicking off again this fall. We plan to have Engage in person. We expect that to be a very large event. Customers have been asking about it. We just had our sales kick off, which was amazing. We're really looking forward to that in the second half of the year as well.

我認為皮特談到的活動的其他領域，我們在 COVID 世界已經 2 年了，我們非常期待今年秋天再次舉行面對面的活動。我們計劃親自參與。我們預計這將是一個非常大的事件。客戶一直在詢問。我們剛剛開始銷售，這太棒了。我們也非常期待下半年的情況。

But again, I think the takeaway on the marketing side is when you look at the investments we've made domestically, we are now looking to pair that with really smart international investments. So when we're talking about setting up the team in Germany and getting into Japan, it's not just put people there, it's have the same type of support mechanisms, top, mid and low funnel, to make sure those people are successful. So I would say the balanced attack we have next year, domestic and international, that's really sort of a signature point on the investment strategy.

但同樣，我認為營銷方面的要點是，當您查看我們在國內進行的投資時，我們現在正在尋求將其與真正明智的國際投資相結合。所以當我們談論在德國建立團隊並進入日本時，不僅僅是把人安排在那裡，它有相同類型的支持機制，上、中、下漏斗，以確保這些人成功。所以我想說我們明年的平衡攻擊，國內和國際，這真的是投資策略的一個標誌點。

All right. Wonderful. That's really helpful. And then just going back to the topic that everyone was talking about on the call, which is the competitive displacement. Mark, you gave an example of a customer -- or yes, a customer where there was another competitor and you kind of grew up around them. Is that indicative of what you've seen? And again, I know it's a narrow part of the business, which is something new that we're hearing about, is that more indicative of it? Or are there actually existing customers where they -- maybe one department was using a competitor, other departments were using Smartsheet and it was more of a consolidation and let's do everything on Smartsheet type like?

好的。精彩的。這真的很有幫助。然後回到大家在電話會議上談論的話題，那就是競爭性置換。馬克，你舉了一個客戶的例子——或者是的，一個有另一個競爭對手的客戶，你在他們周圍長大。這是否表明你所看到的？再說一次，我知道這是業務的一個狹窄部分，這是我們聽到的新事物，是否更能說明這一點？或者他們實際上是否存在現有客戶——也許一個部門正在使用競爭對手，其他部門正在使用 Smartsheet，這更像是一種整合，讓我們在 Smartsheet 類型上做所有事情？

Yes. Those situations do happen occasionally. But when you look at where you get the return on your time, the return on your time and trying to knock someone out of 1 node versus landing in 14 nodes around that one, the return is fantastic on the 14. And we're confident that over time, when you do become the dominant brand within a large company and you can point to all these business units, eventually, it will tip your way entirely. But again, I don't think the best return on capital is to try and replace that one if there, again, isn't breakage occurring. If they're moving along happily in that one area, let it be and just land everywhere else and grow like mad.

是的。這些情況確實偶爾會發生。但是，當您查看您在哪裡獲得時間回報時，您的時間回報並試圖將某人從 1 個節點中淘汰，而不是在該節點周圍的 14 個節點中著陸，14 點的回報非常好。我們有信心隨著時間的推移，當你確實成為一家大公司的主導品牌並且你可以指向所有這些業務部門時，它最終會完全為你提供幫助。但同樣，我不認為最好的資本回報是嘗試更換那個，如果那裡再次沒有發生破損。如果他們在那個地區快樂地前進，那就順其自然，然後在其他任何地方著陸，然後像瘋了一樣成長。

Your next question comes from the line of Keith Bachman with Bank of Montreal.

您的下一個問題來自蒙特利爾銀行的 Keith Bachman。

And I'm going to ask my questions concurrently since they are related. Pete, to start with you, can you help us bridge the 10% in FY '25 free cash flow margins, which you provided at your Analyst Day? In other words, you're guiding to a negative 1% to 2% margins this year. Should we just be thinking gradual steps to that? And I know you answered this previously on the bridge to operating income. I'm still not clear what that means. You said it follows revenue and billings.

我將同時提出我的問題，因為它們是相關的。皮特，首先從你開始，你能幫助我們彌補你在分析師日提供的 25 財年自由現金流利潤率的 10% 嗎？換句話說，你今年的利潤率為負 1% 到 2%。我們應該只是考慮逐步採取措施嗎？我知道你之前在營業收入的橋樑上回答了這個問題。我仍然不清楚這意味著什麼。你說它遵循收入和賬單。

Does that mean if we thought about -- it's a pretty significant loss, 3x what everybody was expecting. Does that mean, in FY '24, given the billings guide you made, that comes back a little bit more quickly than free cash flow?

這是否意味著如果我們考慮一下——這是一個相當大的損失，是每個人預期的 3 倍。這是否意味著，在 24 財年，鑑於您製作的賬單指南，它的恢復速度比自由現金流快一點？

And my broader -- the reason I want to ask these concurrently, Mark, I want to bring it back to you. You've mentioned a couple of times that you have single-digit penetration, which you can see by the average dollar per customer. And your competitors are spending a lot of money during the course of what is calendar year '22. Previously, you had established, I think, to Pete's predecessor, that you're going to do 20% free cash flow margins in '25. At the Analyst Day, you cut it to 10%.

還有我更廣泛的 - 我想同時問這些的原因，馬克，我想把它帶回給你。您已經多次提到您擁有個位數的滲透率，您可以從每位客戶的平均美元數中看出這一點。您的競爭對手在 22 日曆年期間花費了大量資金。以前，我認為，你已經向皮特的前任確定，你將在 25 年實現 20% 的自由現金流利潤率。在分析師日，您將其削減至 10%。

The question is, how do we -- what do you tell investors if there's concerns a year from now that the free cash flow targets, because you have low penetration, there's great opportunities. The free cash and operating margins targets don't get pushed out again. You've been -- you haven't generated free cash flow. We go back to 2016. So your company has been around for a while. What comfort can you give to investors that ultimately you will generate meaningful free cash flow if we look out into FY '25 and beyond?

問題是，如果你擔心一年後自由現金流的目標是什麼，你會告訴投資者什麼，因為你的滲透率很低，所以有很大的機會。自由現金和營業利潤率目標不會再次被推出。你一直 - 你沒有產生自由現金流。我們回到 2016 年。所以你的公司已經存在了一段時間。如果我們展望 25 財年及以後，您最終將產生有意義的自由現金流，您能給投資者帶來什麼安慰？

Yes. Let me start, and I'll let Pete follow. I think it's really important here not to fall into the average trap. And what I mean by that is when I say single-digit penetration, I'm not thinking about that account that's approaching 8 figures of revenue contribution, right? So we have some accounts where we are huge, like 100,000 people connected to our platform. When you see that evidence and you see the ability and the go-to-market motion that can get you there, and you see an LTV to CAC, which is north of 13, you invest in that.

是的。讓我開始，我會讓皮特跟上。我認為在這裡不要落入普通陷阱非常重要。我的意思是當我說個位數的滲透率時，我並沒有考慮那個接近 8 位數收入貢獻的賬戶，對吧？所以我們有一些龐大的賬戶，比如有 100,000 人連接到我們的平台。當你看到這些證據，你看到了可以讓你到達那裡的能力和進入市場的動議，你看到 CAC 的 LTV 是 13 以北，你就投資了。

If everyone was at 6%, yes, that would be a problem. If you had no evidence of being able to climb effectively and efficiently, that would be more of a bold investment posture. But because we are seeing it, because we are seeing record $100,000 deals, record million-dollar customers being established, that is what's giving us on the inside, great confidence in leaning forward. Pete?

如果每個人都在 6%，是的，那將是一個問題。如果您沒有證據表明您能夠有效且高效地攀登，那將是一種更大膽的投資姿勢。但是因為我們看到了它，因為我們看到了創紀錄的 100,000 美元的交易，創紀錄的數百萬美元的客戶正在建立，這就是讓我們在內部充滿信心的原因。皮特？

So Keith, taking the sort of your question in 2 parts and sort of building on what Mark said, there's a clear signal, we have the metrics that support sort of what we're doing very specifically. They're improving year-over-year, and so we're seeing that. But to your question on free cash flow, first, free cash flow, we've shown -- we see as a leading indicator because it ties to billings.

所以基思，把你的問題分成兩部分，並在馬克所說的基礎上建立，有一個明確的信號，我們有支持我們正在做的非常具體的事情的指標。他們正在逐年改善，所以我們看到了這一點。但是對於您關於自由現金流的問題，首先是自由現金流，我們已經展示了 - 我們將其視為領先指標，因為它與賬單有關。

And the first explanation that you would need is why does it -- why is free cash flow ahead of op margin? And the reason for that is when you hire a sales team, you get the OpEx, it hits you, you deliver the billings. At the end of the year, you're able to collect the cash, but the revenue moves into the next fiscal year. So that's why I'm talking about it as a leading indicator.

你需要的第一個解釋是為什麼會這樣——為什麼自由現金流高於營業利潤率？原因是當你僱傭一個銷售團隊時，你會得到 OpEx，它會打動你，你會交付賬單。在年底，您可以收取現金，但收入會進入下一個財政年度。所以這就是為什麼我把它作為一個領先指標來談論。

Now we've shown that as a leading indicator, we've gone from minus 8% in '21 to minus 4% in '22. We're guiding to 1% to 2% in '23, negative. All these are negative numbers, so they're improving. Now when you look at it and you say, what is the outlook? As I said, I feel comfortable in saying we're not giving a guide, but in FY '24, there's -- with current speed and course, we should be cash flow positive.

現在我們已經表明，作為領先指標，我們已經從 21 年的負 8% 變為 22 年的負 4%。我們在 23 年指導為 1% 到 2%，負數。所有這些都是負數，因此它們正在改善。現在，當你看到它並說，前景如何？正如我所說，我很樂意說我們不提供指導，但在 24 財年，以目前的速度和路線，我們應該是正現金流。

Now the gradient from that point on, we're talking about something in FY '25. That's 2 years out. We're standing by the model we shared with you at the Analyst Day, nothing is changing there. We're just showing you some of the other building blocks along the way that gets you there.

現在從那時起的梯度，我們正在談論 25 財年的事情。那是2年了。我們堅持在分析師日與您分享的模型，那裡沒有任何改變。我們只是向您展示了一些其他的構建塊，這些構建塊可以讓您到達那裡。

Yes. I guess just, Mark, to come back -- sorry to interject. But if I take your comments, if you still see good growth opportunities, it sounds like you'll sacrifice margins and free cash flow if you still see good growth opportunities. So what I take from your answer on your current penetration rate and growth potential is as long as that potential is there, then you'll optimize for billings growth even over margins, or perhaps I'm reading too much into your answer?

是的。馬克，我想只是回來——抱歉插嘴。但是，如果我接受您的評論，如果您仍然看到良好的增長機會，聽起來如果您仍然看到良好的增長機會，您將犧牲利潤率和自由現金流。因此，我從您對當前滲透率和增長潛力的回答中得出的結論是，只要存在這種潛力，那麼您將針對比林斯的增長進行優化，甚至超過利潤率，或者我對您的回答讀得太多了？

Yes. I think that's precisely what we're doing in this coming year. And I think -- so when you think about the opportunity that's ahead of us in this category, this is not the time to be a 20% grower with 20% op margins. This is not the time. And our investment thesis and our desire -- our confidence in taking on the field capacity is grounded in the demand we're seeing with new, the demand we're seeing within existing, domestically, internationally. I mean this is, I would say, a diversified, pretty derisked situation for us. And again, that's -- being in my 17th year at the firm now, seen a lot. Seen a lot of demand environment, seen pullback. And I have not seen a demand environment like we've seen right now.

是的。我認為這正是我們在來年要做的事情。而且我認為 - 所以當你考慮在這個類別中我們面前的機會時，現在不是成為 20% 的增長者和 20% 的運營利潤率的時候。現在不是時候。我們的投資理念和我們的願望——我們對承擔現場能力的信心基於我們看到的新需求，我們在現有的、國內的、國際的需求。我的意思是，我想說，對我們來說，這是一個多元化、相當危險的情況。再說一次，那是我在公司的第 17 個年頭，見得多了。看到了很多需求環境，看到了回調。而且我還沒有看到我們現在看到的需求環境。

And it's all the time we have for questions. I'd like to turn the call back to Aaron Turner for closing remarks.

我們一直都有提問的時間。我想把電話轉回給 Aaron Turner 做結束語。

Great. Thank you, Josh, and thank you, everyone, for joining us today, and we'll speak to you again next quarter.

偉大的。謝謝你，喬希，謝謝大家今天加入我們，我們將在下個季度再次與你交談。

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

今天的電話會議到此結束。您現在可以斷開連接。