Splunk Inc (SPLK) 2024 Q2 法說會逐字稿

Good afternoon. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Splunk Second Quarter 2024 Financial Results Conference Call. (Operator Instructions)

下午好。我叫克里斯塔，今天我將擔任你們的會議接線員。此時，我謹歡迎大家參加 Splunk 2024 年第二季度財務業績電話會議。 （操作員說明）

I will now turn the call over to Katie White, Director of Investor Relations. Please go ahead.

我現在將把電話轉給投資者關係總監凱蒂·懷特 (Katie White)。請繼續。

Thank you, Krista. Good afternoon, and thank you for joining today's call. With me on the call are Gary Steele, President and CEO; and Brian Roberts, CFO.

謝謝你，克里斯塔。下午好，感謝您參加今天的電話會議。與我一起參加電話會議的是總裁兼首席執行官加里·斯蒂爾 (Gary Steele)；和首席財務官布萊恩·羅伯茨。

After market closed today, we issued our earnings press release, which is also posted on our Investor Relations website along with supplemental material. This conference call is being webcast live, and following the call, an audio replay will be available on our website.

今天收盤後，我們發布了收益新聞稿，該新聞稿還與補充材料一起發佈在我們的投資者關係網站上。本次電話會議正在進行網絡直播，電話會議結束後，我們的網站上將提供音頻重播。

On today's call, we will be making forward-looking statements, including financial guidance and expectations, including our growth and profitability, forecast for our third quarter and full year fiscal 2024, and our future expectations of revenue, total ARR, cloud mix, non-GAAP operating expenses, non-GAAP operating margin, free cash flow, free cash flow margin, cloud DBNRR, cloud gross margin, equity compensation usage and liquidity as well as trends in our markets and our business, our strategies and expectations regarding our business, AI, acquisitions, products, technology, customers, demand and regulatory environments.

在今天的電話會議上，我們將做出前瞻性聲明，包括財務指導和預期，包括我們的增長和盈利能力、對2024 財年第三季度和全年的預測，以及我們對收入、總ARR、雲組合、非- GAAP 運營費用、非GAAP 運營利潤率、自由現金流、自由現金流利潤率、雲DBNRR、雲毛利率、股權補償使用和流動性以及我們的市場和業務趨勢、我們對業務的戰略和預期、人工智能、收購、產品、技術、客戶、需求和監管環境。

These statements are subject to risks and uncertainties and are based on assumptions as to the macroeconomic environment and reflect our best judgment based on factors currently known to us. Actual events or results may differ materially. Please refer to documents we filed with the SEC, including our Form 10-K and 10-Qs as well as the Form 8-K filed with today's press release. These documents contain risks and other factors that may cause our actual results to differ from those contained in our forward-looking statements. These forward-looking statements are being made as of today, and we disclaim any obligation to update or revise these statements. If this call is reviewed after today, the information presented during this call may not contain current or accurate information.

這些陳述受到風險和不確定性的影響，並基於對宏觀經濟環境的假設，反映了我們根據目前已知因素做出的最佳判斷。實際事件或結果可能存在重大差異。請參閱我們向 SEC 提交的文件，包括我們的 10-K 表格和 10-Q 表格以及與今天的新聞稿一起提交的 8-K 表格。這些文件包含可能導致我們的實際結果與前瞻性陳述中包含的結果不同的風險和其他因素。這些前瞻性陳述是從今天開始做出的，我們不承擔任何更新或修改這些陳述的義務。如果今天之後審核此電話會議，則此電話會議期間提供的信息可能不包含當前或準確的信息。

We will also discuss non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. A reconciliation of GAAP and non-GAAP results is provided in the press release and on our website.

我們還將討論非公認會計原則財務指標，這些指標不符合公認會計原則。新聞稿和我們的網站上提供了 GAAP 和非 GAAP 業績的調節表。

So with that, let me turn it over to Gary.

那麼，讓我把它交給加里。

Good afternoon, and thank you for joining today's call. To start, Splunk delivered a solid second quarter. Through our ongoing focus on execution, operational discipline and customer engagement, we met or exceeded each of our guided metrics in Q2. I'm really pleased with these results and want to thank the entire Splunk team for their hard work and commitment. At the same time, we further accelerated Splunk's innovation to help our customers achieve resilience across their digital systems through a series of important and exciting announcements. I'll cover our financial results first.

下午好，感謝您參加今天的電話會議。首先，Splunk 的第二季度業績表現強勁。通過我們持續關注執行、運營紀律和客戶參與，我們在第二季度達到或超過了每項指導指標。我對這些結果感到非常滿意，並感謝整個 Splunk 團隊的辛勤工作和承諾。與此同時，我們進一步加速了 Splunk 的創新，通過一系列重要且令人興奮的公告，幫助我們的客戶在其數字系統中實現彈性。我將首先介紹我們的財務業績。

Since joining Splunk 16 months ago, we've been executing to drive long-term durable growth with increasing profitability. Our Q2 results yet again showcase our ability to deliver on that strategy, particularly through ARR and free cash flow growth, which we believe are the best top and bottom line metrics of the health and strength of our business. In Q2, we grew total ARR to $3.858 billion, a 16% year-over-year increase, exceeding the guidance we shared on our last earnings call by over $30 million.

自 16 個月前加入 Splunk 以來，我們一直致力於通過提高盈利能力來推動長期持久增長。我們第二季度的業績再次展示了我們實現該戰略的能力，特別是通過 ARR 和自由現金流增長，我們認為這是衡量我們業務健康狀況和實力的最佳頂線和底線指標。第二季度，我們的總 ARR 增至 38.58 億美元，同比增長 16%，比我們在上次財報電話會議上分享的指導值高出超過 3000 萬美元。

Cloud ARR increased 27% year-over-year to $1.918 billion. And our Q2 total revenue grew to $911 million, a 14% year-over-year increase, well above our previously guided range. We delivered our top line growth while maintaining a sharp focus on operating efficiency and controlling costs. In fact, that focus enabled us to reduce non-GAAP OpEx by 3% year-over-year, which is significant, given that we previously anticipated an increase of between 2% and 2.5%. What's more, we exceeded expectations for free cash flow in Q2, delivering positive $4 million, nearly $20 million above our guidance. Given our considerable progress on driving more efficient growth, we are increasing our full year outlook for free cash flow. Brian will share our updated guidance shortly.

雲 ARR 同比增長 27%，達到 19.18 億美元。我們第二季度的總收入增長至 9.11 億美元，同比增長 14%，遠高於我們之前的指導範圍。我們實現了收入增長，同時保持對運營效率和控製成本的高度關注。事實上，這一重點使我們能夠將非 GAAP 運營支出同比減少 3%，考慮到我們之前預計增長 2% 至 2.5%，這一數字意義重大。此外，我們對第二季度自由現金流的預期超出了預期，實現了 400 萬美元的正值，比我們的指導水平高出近 2000 萬美元。鑑於我們在推動更高效增長方面取得了巨大進展，我們正在上調全年自由現金流預期。布萊恩將很快分享我們更新的指南。

We're proud of what we delivered this quarter even as the uncertain macro environment remain largely consistent with what we've seen throughout this year. Our Q2 performance clearly demonstrates that we have dialed in our ability to navigate the current landscape and execute with consistency to deliver durable growth and profitability. What's also evident is that organizations around the world need Splunk's world-class unified security and observability platform more than ever to underpin the resilience of their digital systems.

儘管不確定的宏觀環境與我們今年所看到的情況基本一致，但我們對本季度的業績感到自豪。我們第二季度的業績清楚地表明，我們已經有能力應對當前形勢並一致執行，以實現持久增長和盈利能力。同樣明顯的是，世界各地的組織比以往任何時候都更需要 Splunk 的世界級統一安全性和可觀察性平台來支撐其數字系統的彈性。

Since becoming CEO, one of my top priorities has been to increase the pace of our innovation. As the technology landscape evolves and becomes more complex, organizations need to see and understand what's happening in their environments in order to keep their systems safe and reliable. In the simplest sense, if you can't see it, you can't secure it, you can't keep it up and running either. I hear time and time again from CISOs, CIOs and CTOs that Splunk's commitment to providing comprehensive visibility into and across environments is critical in today's hybrid multi-cloud world. I'll spend the next few minutes sharing how we're deepening that commitment by taking you through what we announced in July at Splunk's annual user conference, .conf23.

自從擔任首席執行官以來，我的首要任務之一就是加快創新步伐。隨著技術領域的發展並變得更加複雜，組織需要查看並了解其環境中發生的情況，以確保其係統安全可靠。從最簡單的意義上來說，如果您看不到它，就無法保護它的安全，也無法保持它的正常運行。我一次又一次地從首席信息安全官(CISO)、首席信息官(CIO) 和首席技術官(CTO) 那裡聽到，Splunk 致力於提供跨環境的全面可視性，這對於當今的混合多雲世界至關重要。在接下來的幾分鐘裡，我將向您介紹我們 7 月份在 Splunk 年度用戶大會 .conf23 上宣布的內容，分享我們如何深化這一承諾。

During our last earnings call, I spoke about our enthusiasm that AI would fundamentally transform the way organizations keep their digital systems secure and reliable. Given Splunk's flexible and highly scalable data architecture, our industry-leading security and observability solutions and our quickening pace of innovation, we are in a unique position to help enterprises bolster resilience by harnessing AI across our product portfolio.

在我們上次的財報電話會議上，我談到了我們對人工智能將從根本上改變組織保持數字系統安全可靠的方式的熱情。鑑於Splunk 靈活且高度可擴展的數據架構、行業領先的安全性和可觀測性解決方案以及不斷加快的創新步伐，我們處於獨特的地位，可以通過在我們的產品組合中利用人工智能來幫助企業增強彈性。

During .conf23, we unveiled the next step in how Splunk is bringing AI to bear across security and observability. Splunk AI is a collection of new and existing AI-powered offerings that combines automation with human-in-the-loop experiences, so organizations can drive faster detection, investigation and respond while controlling how AI is applied to their data. By optimizing domain-specific large language models and machine learning algorithms built on security and observability data, Splunk AI frees up security, IT and engineering teams for more strategic work, helping to increase productivity and lower costs. In addition, we're applying AI to help teams accelerate time to value through assisted intelligence.

在 .conf23 期間，我們公佈了 Splunk 如何將 AI 應用於安全性和可觀察性的下一步。 Splunk AI 是新的和現有的人工智能驅動產品的集合，它將自動化與人機交互體驗相結合，因此組織可以推動更快的檢測、調查和響應，同時控制人工智能應用於其數據的方式。通過優化基於安全性和可觀測性數據的特定領域的大型語言模型和機器學習算法，Splunk AI 使安全、IT 和工程團隊能夠騰出時間進行更具戰略性的工作，從而幫助提高生產力並降低成本。此外，我們還應用人工智能通過輔助智能幫助團隊加快實現價值的速度。

Our new Splunk AI assistant leverages generative AI to provide an immersive chat experience and helps make our Search Processing Language, or SPL, easier to use by enabling the use of natural language to create SPL queries. We're excited that Splunk AI will continue building on our track record of innovation in AI and ML. This includes our recently launched app for anomaly detection that uses ML and our widely used machine learning toolkit. Looking forward, we see broad opportunities to further apply AI to make our core platform and premium products that much more powerful through advanced functionality. At .conf, we also introduced many new products and features that empower security, IT and engineering teams with unified experiences and workflows so they can detect, investigate and respond to threats quickly, accurately and at scale.

我們的新 Splunk AI 助手利用生成式 AI 提供身臨其境的聊天體驗，並通過允許使用自然語言創建 SPL 查詢來幫助使我們的搜索處理語言 (SPL) 更易於使用。我們很高興 Splunk AI 將繼續鞏固我們在人工智能和機器學習方面的創新記錄。這包括我們最近推出的異常檢測應用程序，該應用程序使用機器學習和我們廣泛使用的機器學習工具包。展望未來，我們看到了進一步應用人工智能的廣闊機會，通過先進的功能使我們的核心平台和優質產品變得更加強大。在 .conf 上，我們還推出了許多新產品和功能，為安全、IT 和工程團隊提供統一的體驗和工作流程，以便他們能夠快速、準確和大規模地檢測、調查和響應威脅。

In security, we announced multiple new features for our award-winning enterprise security and store products, and we also announced the general availability of Splunk Attack Analyzer, which integrates the capabilities we acquired from TwinWave last year, into our unified security operations experience. Splunk Attack Analyzer is already being used by some of the world's largest companies to analyze threats, including those that employees reported as suspected phishing e-mails. Through an integration with Splunk SOAR, customers that are using Splunk Attack Analyzer and SOAR can fully automate threat analysis process to ensure accurate and timely detections while reducing the time and resources typically spent doing manual investigations.

在安全方面，我們宣布了屢獲殊榮的企業安全和商店產品的多項新功能，我們還宣布全面推出 Splunk Attack Analyzer，它將我們去年從 TwinWave 獲得的功能集成到我們的統一安全運營體驗中。全球一些最大的公司已經使用 Splunk Attack Analyzer 來分析威脅，包括員工報告為可疑網絡釣魚電子郵件的威脅。通過與 Splunk SOAR 集成，使用 Splunk Attack Analyzer 和 SOAR 的客戶可以完全自動化威脅分析流程，以確保准確、及時的檢測，同時減少通常用於手動調查的時間和資源。

We also shared our continued delivery on our unified security operations center vision, which aligns to the threat detection, investigation and response, or TDIR framework. The cornerstone of our approach is Splunk Mission Control, which brings together security analytics, automation and orchestration and threat intelligence capabilities under one common work service, empowering security teams to stay ahead of cyber threats. By unifying, simplifying and modernizing how Splunk is used in the SOC, we're helping teams overcome the challenge of having too many disparate tools, too little time and nonstop threats and alerts coming across their console.

我們還分享了我們對統一安全運營中心願景的持續交付，該願景與威脅檢測、調查和響應或 TDIR 框架保持一致。我們方法的基石是 Splunk Mission Control，它將安全分析、自動化和編排以及威脅情報功能整合到一項通用工作服務中，使安全團隊能夠領先於網絡威脅。通過統一、簡化和現代化 Splunk 在 SOC 中的使用方式，我們正在幫助團隊克服以下挑戰：不同的工具太多、時間太少以及控制台上不間斷的威脅和警報。

On the durability side, we were named a leader in the 2023 Gartner Magic Quadrant for Application Performance Monitoring and Observability. This recognition builds on our 9 consecutive times of being named a leader in the 2022 Gartner Magic Quadrant for Security Information and Event Management. Today, Splunk is the only vendor to be named a leader in both of its Gartner Magic Quadrants.

在耐用性方面，我們在 2023 年 Gartner 應用程序性能監控和可觀察性魔力像限中被評為領導者。這一認可建立在我們連續 9 次被評為 2022 年 Gartner 安全信息和事件管理魔力像限領導者的基礎上。如今，Splunk 是唯一一家在 Gartner 魔力像限中均被評為領導者的供應商。

Our goal is to create a single unified experience for security, IT and engineering teams across security and observability. To that end, we continue to unify Splunk Observability Cloud with the Splunk platform. In 2022, we launched Splunk Log Observer Connect, enabling observability cloud users to seamlessly use their Splunk Enterprise and Splunk Cloud platform data.

我們的目標是為安全、IT 和工程團隊在安全性和可觀察性方面創建單一統一的體驗。為此，我們繼續將 Splunk Observability Cloud 與 Splunk 平台統一起來。 2022 年，我們推出了 Splunk Log Observer Connect，使可觀測性雲用戶能夠無縫使用其 Splunk Enterprise 和 Splunk Cloud 平台數據。

We didn't stop there. In Q2, we previewed the OpenTelemetry Collector as a technical add-on, which provides customers with a unified view of their infrastructure and services. We also launched Unified Identity to give our customers a better user experience as they access data from the Splunk Cloud platform and Splunk Observability Cloud, without the need to authenticate multiple times. Looking ahead, we're continuing to invest in the enterprise-grade observability solutions organizations need to monitor and troubleshoot across the entire tech stack.

我們並沒有就此止步。在第二季度，我們預覽了 OpenTelemetry Collector 作為技術附加組件，它為客戶提供了其基礎設施和服務的統一視圖。我們還推出了統一身份，讓客戶在從 Splunk Cloud 平台和 Splunk Observability Cloud 訪問數據時獲得更好的用戶體驗，而無需多次身份驗證。展望未來，我們將繼續投資企業級可觀測性解決方案，組織需要在整個技術堆棧中進行監控和故障排除。

A guiding factor in our innovation is a belief that organization shouldn't be locked into one environment and should have choice in how they architect their systems across the multi-cloud hybrid world. We're continuing to find ways to make sure that Splunk is available natively to customers in the cloud environment that work best for them. That's why one of the most exciting (inaudible) was our new strategic partnership with Microsoft to build Splunk's cloud solutions natively on Microsoft Azure. Together, our approach will enable our joint customers to migrate, modernize and grow their environments with end-to-end cloud and hybrid visibility at scale.

我們創新的一個指導因素是我們相信組織不應該被鎖定在一個環境中，而應該選擇如何在多雲混合世界中構建系統。我們正在繼續尋找方法，確保客戶可以在最適合他們的雲環境中本地使用 Splunk。這就是為什麼最令人興奮（聽不清）的事情之一是我們與 Microsoft 建立新的戰略合作夥伴關係，以在 Microsoft Azure 上本地構建 Splunk 的雲解決方案。我們的方法將使我們的共同客戶能夠通過端到端雲和混合可視性大規模遷移、現代化和發展他們的環境。

In addition, organizations globally can now purchase Splunk Enterprise, Splunk Enterprise Security and Splunk IT Service Intelligence in the Azure marketplace. We're powering thousands of our joint customers with best-in-class solutions, and I'm glad to share that the first transaction closed in Q2, was a boomerang customer returning to Splunk, thanks to the flexibility and value our approach provides.

此外，全球組織現在可以在 Azure 市場中購買 Splunk Enterprise、Splunk Enterprise Security 和 Splunk IT Service Intelligence。我們正在為數千名共同客戶提供一流的解決方案，我很高興與大家分享，由於我們的方法提供的靈活性和價值，第二季度完成的第一筆交易是返回 Splunk 的迴旋鏢客戶。

Another area where we're continuing to invest is in driving innovation at the Edge. Given the explosion of data, processing information on the Edge has become a critical priority, both for Splunk and our customers. Last quarter, we launched Splunk Edge Processor, which helps our customers process data at the Edge to increase visibility and control over their data before it leaves their network and helps ensure that it ends up at the right destination in the right format. We know this is an essential capability and we are proud to offer Edge Processor for free to our Splunk Cloud customers. As Edge Processor is adopted by our customer base, we believe it will significantly reduce the need for customers to leverage external vendors to preprocess their data.

我們繼續投資的另一個領域是推動邊緣創新。鑑於數據爆炸式增長，對於 Splunk 和我們的客戶而言，在邊緣處理信息已成為首要任務。上季度，我們推出了Splunk Edge Processor，它可以幫助我們的客戶在邊緣處理數據，以在數據離開網絡之前提高數據的可見性和控制力，並幫助確保數據最終以正確的格式到達正確的目的地。我們知道這是一項重要功能，我們很自豪能夠向 Splunk Cloud 客戶免費提供邊緣處理器。由於邊緣處理器被我們的客戶群採用，我們相信它將大大減少客戶利用外部供應商預處理數據的需要。

Related to this, a few of you have asked us about our ongoing lawsuit against Cribl. Although my ability to comment on active litigation is limited, I can tell you that the litigation is very active and the case is scheduled to go to trial in April of 2024. You may recall that this case is about Cribl taking and illegally using our intellectual property. And indeed, Cribl has conceded that it reverse engineered features in Splunk Software. Our case is strong, and we look forward to continuing to prove it.

與此相關，你們中的一些人向我們詢問了我們正在進行的針對 Cribl 的訴訟。儘管我對正在進行的訴訟發表評論的能力有限，但我可以告訴您，訴訟非常活躍，該案預計於2024 年4 月開庭審理。您可能還記得，此案涉及Cribl 竊取並非法使用我們的知識產權。財產。事實上，Cribl 承認它對 Splunk Software 中的功能進行了逆向工程。我們的案例很有說服力，我們期待著繼續證明這一點。

Shifting back to our Edge innovation. Another exciting announcement during the quarter was Splunk Edge Hub, which provides more complete visibility across IT and OT environments by streaming previously hard-to-access data directly into the Splunk platform. For manufacturers, factory floors, server rooms and more, Edge have simplified the ingestion and analysis of data generated by sensors, IoT devices and industrial equipment, enabling advanced monitoring, investigation and response. Edge Hub is sold exclusively through our go-to-market partners who bring deep industry expertise on our customers' IT environment. And I'm pleased to share we're seeing compelling customer use cases from early adopters. For example, a multinational manufacturing company uses Edge Hub to interface with their production systems to collect machine data to classify defects.

回到我們的邊緣創新。本季度另一個令人興奮的公告是 Splunk Edge Hub，它通過將以前難以訪問的數據直接流式傳輸到 Splunk 平台，提供跨 IT 和 OT 環境的更完整的可見性。對於製造商、工廠車間、服務器機房等，Edge 簡化了傳感器、物聯網設備和工業設備生成的數據的攝取和分析，從而實現高級監控、調查和響應。 Edge Hub 由我們的市場合作夥伴獨家銷售，他們為我們客戶的 IT 環境帶來了深厚的行業專業知識。我很高興與大家分享，我們看到早期採用者提供了令人信服的客戶用例。例如，一家跨國製造公司使用 Edge Hub 與其生產系統連接，收集機器數據以對缺陷進行分類。

With over 1 million annual consumer device production capacity, this organization is continuously looking for incremental quality improvement opportunities to save costs and assess factory expansion needs for increases in customer demand. After deploying Edge Hub, the organization achieved a reduction of approximately 70% in defective parts during their QA process, resulting in more than 20% labor cost savings associated with otherwise scrapped or rework products. We're excited to have once again broken down a barrier for our customers to gain more visibility into their data, and we're looking forward to building on Edge Hub's early success.

該組織擁有超過 100 萬台消費設備年產能，不斷尋找增量質量改進機會，以節省成本並評估工廠擴張需求，以滿足客戶需求的增長。部署 Edge Hub 後，該組織在 QA 流程中減少了約 70% 的缺陷零件，從而節省了 20% 以上與報廢或返工產品相關的勞動力成本。我們很高興能夠再次打破客戶的障礙，使他們能夠更清楚地了解他們的數據，並且我們期待在 Edge Hub 的早期成功的基礎上再接再厲。

Let's change gears and highlight the continued demand we're seeing from customers around the world. We ended Q2 with 834 customers with $1 million or more in ARR, up by 24% since just last quarter. This includes 452 customers with Cloud ARR over $1 million, which is up by 100 year-over-year from the 352 cloud customers with ARR over $1 million in a year ago period. Our team landed many significant deals in Q2 that illustrate our growth levers and the breadth of value we bring to the largest and most complex global enterprises.

讓我們換個思路，強調我們看到的來自世界各地客戶的持續需求。第二季度末，我們有 834 名客戶的 ARR 達到或超過 100 萬美元，較上季度增長了 24%。其中包括 452 個雲 ARR 超過 100 萬美元的客戶，比去年同期的 352 個 ARR 超過 100 萬美元的雲客戶增加了 100 個。我們的團隊在第二季度達成了許多重大交易，這些交易說明了我們的增長槓桿以及我們為最大、最複雜的全球企業帶來的價值廣度。

I'll start with observability. Since 2018, we built, acquired and integrated what we believe are the best technologies to help enterprises monitor, operate and improve their hybrid technology environments. Our rapid innovation and investments in observability are paying off for Splunk and our customers. We're continuing to win significant deals and displace leading competitors by offering customers comprehensive observability solutions in a unified experience. During Q2, we were pleased to secure a 7-figure observability deal and extend our footprint within a leading U.S. financial services organization. This customer needs to close the visibility gaps and requires a complete hybrid platform solution that eases resource constraints and consolidate their observability tools and cost as they prepare to move more than 150 applications to the cloud.

我將從可觀察性開始。自 2018 年以來，我們構建、收購併集成了我們認為最好的技術，以幫助企業監控、運營和改進其混合技術環境。我們在可觀測性方面的快速創新和投資正在為 Splunk 和我們的客戶帶來回報。我們通過為客戶提供統一體驗的全面可觀測性解決方案，繼續贏得重大交易並取代領先競爭對手。在第二季度，我們很高興獲得了一筆 7 位數的可觀察性協議，並擴大了我們在美國領先金融服務組織中的足跡。該客戶需要縮小可見性差距，並需要一個完整的混合平台解決方案，以緩解資源限制並在準備將 150 多個應用程序遷移到雲時整合其可觀察性工具和成本。

We were already the trusted security provider, and through a technical proof of concept, we demonstrated not only the observability feature is needed for their transformation and full visibility, but also the vital platform integration capability to complement their existing use of Splunk and help them avoid (inaudible), data silos and waste.

我們已經是值得信賴的安全提供商，通過概念技術驗證，我們不僅展示了他們的轉型和完全可見性所需的可觀察性功能，而且還展示了重要的平台集成功能，以補充他們現有的Splunk 使用並幫助他們避免（聽不清）、數據孤島和浪費。

In Q2, a U.S.-based multinational conglomerate and long-standing hybrid security customer significantly expanded their use of Splunk by shifting more of their workload to cloud and through a new 7-figure 3-year observability deal for the new health care division and cloud stack. They chose Splunk Observability over competitive options because of our ability to drive lower total cost of ownership and because our differentiated capabilities offer full visibility by using not only metrics and traces, but also underlying logs, helping enhance resilience by proactively preventing outages while also monitoring critical infrastructure and applications. The market for observability is growing rapidly, and only Splunk has the integrated enterprise-grade solutions needed by the IT and engineering teams of the Global 2000, to keep their services up and running.

第二季度，一家美國跨國企業集團和長期混合安全客戶通過將更多工作負載轉移到雲端，並為新的醫療保健部門和雲簽訂了為期7 位數的新可觀察性協議，顯著擴大了Splunk 的使用範圍堆。他們選擇Splunk Observability 而不是競爭選項，是因為我們有能力降低總體擁有成本，而且我們的差異化功能不僅使用指標和跟踪，還使用底層日誌來提供完整的可見性，通過主動防止中斷同時監控關鍵數據來幫助增強彈性。基礎設施和應用程序。可觀測性市場正在快速增長，只有 Splunk 擁有 Global 2000 的 IT 和工程團隊所需的集成企業級解決方案，以保持其服務正常運行。

Now turning to security. Since joining Splunk, I've led the team to deliver better outcomes and more value to our customer security leaders by making the work of their security team that much more effective and efficient. During the quarter, we continued to see strong demand for our industry-leading SIEM and premium security solutions needed in the modern stock. In Q2, we secured a significant cloud deal with a global leader in transport and logistics. Following a competitive selection process, this Europe-based organization chose Splunk to support and consolidate its complex security needs on a global level. This 7-figure Splunk Cloud and Splunk Enterprise Security deal displaced a legacy SIEM competitor and as a result of our growing strategic partnership to help them drive resilience through our single unified platform.

現在轉向安全。自從加入 Splunk 以來，我帶領團隊通過提高客戶安全團隊的工作效率和成效，為客戶安全領導者提供更好的成果和更多價值。本季度，我們繼續看到現代庫存所需的行業領先的 SIEM 和高級安全解決方案的強勁需求。在第二季度，我們與運輸和物流領域的全球領導者達成了一項重要的雲交易。經過競爭性選拔流程後，這家位於歐洲的組織選擇了 Splunk 來支持和鞏固其全球範圍內的複雜安全需求。這項價值 7 位數的 Splunk Cloud 和 Splunk Enterprise Security 交易取代了傳統的 SIEM 競爭對手，這是我們不斷發展的戰略合作夥伴關係的結果，旨在幫助他們通過我們的單一統一平台提高彈性。

We also secured a new logo win during Q2 in Europe for Splunk Cloud and Splunk Enterprise Security with a global automotive technology company. The customer chose Splunk over competitors due to limitations in their legacy SIEM and because of our ability to provide full visibility across all of its data sources from over 150 sites globally. The organization is expanding rapidly in software development and with 200,000 employees now count on Splunk to keep their system safe and reliable as they scale.

第二季度，我們還在歐洲為 Splunk Cloud 和 Splunk Enterprise Security 贏得了一家全球汽車技術公司的新徽標。客戶選擇 Splunk 而不是競爭對手，是因為他們傳統 SIEM 的限制，並且因為我們能夠提供來自全球 150 多個站點的所有數據源的完整可見性。該組織在軟件開發方面正在迅速擴張，現在擁有 200,000 名員工，依靠 Splunk 來確保其係統在規模擴展時安全可靠。

Our public sector momentum also continued in the quarter with an 8-figure security expansion and renewal with a large U.S. federal agency that is all in on Splunk. They have centralized their modernization and cybersecurity operations strategy around Splunk and are also delving into both AIOps and ITOps with us. As of Q2, they ingest 30x more data per day than they did in 2019, leveraging hundreds of SIEM use cases as well as several of our premium applications, including nearly 50 store automation playbooks.

我們的公共部門在本季度也繼續保持增長勢頭，與一家完全依賴 Splunk 的美國大型聯邦機構進行了 8 位數的安全擴張和更新。他們將現代化和網絡安全運營戰略集中在 Splunk 周圍，並與我們一起深入研究 AIOps 和 ITOps。截至第二季度，他們每天獲取的數據比 2019 年多了 30 倍，利用了數百個 SIEM 用例以及我們的多個高級應用程序，包括近 50 個商店自動化手冊。

Our work with government agencies is incredibly important, and we're proud of our partnership with this agency to advance their security operations to keep public information safe from threat actors while ensuring a world-class user experience across several applications. Looking ahead at security, we fundamentally believe that Splunk will continue to play a critical role in helping organizations navigate the evolving cybersecurity landscape.

我們與政府機構的合作非常重要，我們為與該機構的合作夥伴關係感到自豪，以推進他們的安全運營，以保護公共信息免受威脅行為者的侵害，同時確保跨多個應用程序提供世界一流的用戶體驗。展望安全領域，我們從根本上相信 Splunk 將繼續在幫助組織應對不斷變化的網絡安全格局方面發揮關鍵作用。

One important example where our innovation and security leadership will be essential, it's helping our U.S. public company customers comply with the SEC's recently announced rules on cybersecurity incident disclosure that will be effective later this year with a 4 business-day window to report once the cybersecurity incident (inaudible), timely response is essential. Splunk's strength is detection and response and the investigative capabilities we provide can help customers quickly gather and analyze telemetry from various tools and sources to classify an event and determine if it's material and requires SEC reporting. Our ability to see across the vast quantities of data helps organizations quickly understand not only if something happened, but also how it happened.

我們的創新和安全領導力至關重要的一個重要例子是，它正在幫助我們的美國上市公司客戶遵守美國證券交易委員會最近宣布的網絡安全事件披露規則，該規則將於今年晚些時候生效，一旦網絡安全事件發生，將在4 個工作日內進行報告事件（聽不清），及時響應至關重要。 Splunk 的優勢在於檢測和響應，我們提供的調查功能可以幫助客戶快速收集和分析來自各種工具和來源的遙測數據，以對事件進行分類並確定事件是否重要以及是否需要 SEC 報告。我們查看大量數據的能力不僅可以幫助組織快速了解某件事是否發生，還可以了解它是如何發生的。

We believe our security solutions will be even more critical as organizations invest in broader resilience strategies to mitigate future cyber threats and improve visibility into their IT infrastructure and accelerated detection and response. This is yet another dimension of value we bring as a strategic partner to our customers' executives as the cybersecurity landscape evolves.

我們相信，隨著組織投資於更廣泛的彈性策略以減輕未來的網絡威脅並提高對其 IT 基礎設施的可見性並加速檢測和響應，我們的安全解決方案將變得更加重要。隨著網絡安全格局的發展，這是我們作為戰略合作夥伴為客戶高管帶來的另一個價值維度。

Finally, our customers can continue to tell us there's incredible value when they utilize both security and observability to solve their complex visibility challenges. During the quarter, we deepened our strategic partnerships with many organizations on their path to greater resilience through unified security and observability. We secured a 7-figure security and observability deal in Q2 with a multinational banking and financial services company, headquartered in the Asia-Pacific region. This milestone renewal and expansion deal took place in a highly competitive landscape, and it represents the deep level of engagement in our partnership over several years. We previously transitioned this organization from on-prem to the cloud, and now our momentum continues as they double down on our security and implement Splunk Observability to meet their evolving needs.

最後，我們的客戶可以繼續告訴我們，當他們利用安全性和可觀察性來解決複雜的可見性挑戰時，會產生令人難以置信的價值。在本季度，我們加深了與許多組織的戰略合作夥伴關係，幫助他們通過統一的安全性和可觀察性來增強彈性。我們在第二季度與一家總部位於亞太地區的跨國銀行和金融服務公司達成了一項價值 7 位數的安全和可觀察性協議。這一具有里程碑意義的更新和擴張交易是在競爭激烈的環境中進行的，它代表了我們多年來合作夥伴關係的深度參與。我們之前將該組織從本地遷移到雲，現在我們的勢頭仍在繼續，因為他們加倍加強我們的安全性並實施 Splunk Observability 以滿足他們不斷變化的需求。

To wrap up, I want to reflect on the journey Splunkers and I have been on for the past 16 months. When I joined Splunk, my thesis was that we could accelerate Splunk's 20 years of industry leadership to deliver even more exceptional customer and shareholder value. I since led the team to build more executive-level customer relationships. We are a vital strategic partner to customers worldwide, and we are focused on serving their expanding needs by increasing the pace of innovation. Along the way, we have cultivated the leadership and talent needed to drive durable growth with increasing profitability. Our results demonstrate that my thesis is proving out, and that Splunk is the key to enterprise resilience. Thank you again for joining today's call.

最後，我想回顧一下我和 Splunkers 在過去 16 個月裡經歷的旅程。當我加入 Splunk 時，我的論點是我們可以加速 Splunk 20 年的行業領導地位，從而提供更卓越的客戶和股東價值。此後，我帶領團隊建立了更多高管級別的客戶關係。我們是全球客戶的重要戰略合作夥伴，我們致力於通過加快創新步伐來滿足他們不斷增長的需求。一路走來，我們培養了推動持久增長和提高盈利能力所需的領導力和人才。我們的結果表明我的論點得到了證明，Splunk 是企業彈性的關鍵。再次感謝您參加今天的電話會議。

Now over to Brian to walk through our financial results and outlook.

現在請布萊恩介紹一下我們的財務業績和前景。

Thanks, Gary. So let's get to our financial review and outlook. We continue to successfully navigate this economic backdrop and close a solid quarter as we exceeded or met our outlook across all guided metrics. We increased total ARR by 16% year-over-year to $3.858 billion, above our prior outlook of 15% growth. Cloud ARR increased 27% year-over-year to $1.918 billion. Cloud DBNRR, which is a trailing 12-month metric, was 116%, which was in line with our expectations. Remember, cloud migrations began to slow in July of last year, which impact this trailing 12-month metric.

謝謝，加里。那麼讓我們來看看我們的財務回顧和展望。我們繼續成功應對這一經濟背景，並在所有指導指標上超出或達到了我們的預期，並結束了一個穩定的季度。我們的總 ARR 同比增長 16%，達到 38.58 億美元，高於我們之前增長 15% 的預期。雲 ARR 同比增長 27%，達到 19.18 億美元。雲 DBNRR（過去 12 個月的指標）為 116%，符合我們的預期。請記住，雲遷移從去年 7 月開始放緩，這影響了過去 12 個月的指標。

In terms of mix, the cloud portion of Q2 software bookings came in at 64%, near the top end of our quarterly outlook of between 55% and 65%. Q2 total revenue increased 14% year-over-year to $911 million, ahead of our guidance range of between $880 million and $895 million. Cloud revenue increased by 29% year-over-year to $445 million.

就組合而言，第二季度軟件預訂中的雲部分為 64%，接近我們季度展望的上限（55% 至 65%）。第二季度總收入同比增長 14% 至 9.11 億美元，高於我們 8.8 億至 8.95 億美元的指導範圍。雲收入同比增長 29%，達到 4.45 億美元。

With regards to cloud gross margin, we continue to make progress on our efficiency initiatives. Q2 non-GAAP cloud gross margin reached 73.8%, an all-time quarterly record, which is up nearly 450 basis points year-over-year and better than our outlook.

在雲毛利率方面，我們在效率舉措方面繼續取得進展。第二季度非 GAAP 雲毛利率達到 73.8%，創歷史季度記錄，同比增長近 450 個基點，好於我們的預期。

Now let's move to operating expenses. Q2 was a milestone quarter. It was a showcase of our strong collaborative execution. We asked teams to find (inaudible) and they rose to the challenge. They identified new opportunities to reduce third-party spend as well as expand scope for team members, which helped us decrease cost and increase operating efficiency. As a result, we were able to reduce non-GAAP OpEx by 3% year-over-year instead of the previously expected increase of between 2% and 2.5%. And we achieved this while growing ARR by 16% year-over-year, ahead of our outlook.

現在讓我們轉向運營費用。第二季度是一個具有里程碑意義的季度。這是我們強大的協作執行力的展示。我們要求團隊尋找（聽不清），他們迎接了挑戰。他們發現了減少第三方支出以及擴大團隊成員範圍的新機會，這幫助我們降低了成本並提高了運營效率。因此，我們能夠將非 GAAP 運營支出同比減少 3%，而不是之前預期的 2% 至 2.5% 的增幅。我們實現了這一目標，同時 ARR 同比增長 16%，超出了我們的預期。

The significant cost leveraging, combined with our revenue beat, helped us exceed our guidance on non-GAAP operating margin. In Q2, we achieved a 16.7% non-GAAP operating margin, which was 470 to 670 basis points above our guidance of between 10% and 12%.

顯著的成本槓桿，加上我們的收入增長，幫助我們超越了非公認會計原則營業利潤率的指導。第二季度，我們實現了 16.7% 的非 GAAP 營業利潤率，比我們 10% 至 12% 的指導值高出 470 至 670 個基點。

Let's move to free cash flow. Remember, Q2 is seasonally impacted, given (inaudible) typically slowest bookings quarter, which has historically led to negative quarterly free cash flow. In Q2, we exceeded expectation and generated $4 million of positive free cash flow, which is $19 million ahead of our guidance. Given the seasonality of bookings, we recommend that investors evaluate free cash flow on a trailing 12-month basis, which totaled $805 million at the end of Q2, nearly quadruple the $216 million generated over the 12 months ending July 31, 2022.

讓我們轉向自由現金流。請記住，第二季度受到季節性影響，因為（聽不清）預訂季度通常是最慢的，這歷來導致季度自由現金流為負。第二季度，我們超出了預期，產生了 400 萬美元的正自由現金流，比我們的指導提前了 1900 萬美元。考慮到預訂的季節性，我們建議投資者評估過去12 個月的自由現金流，第二季度末的自由現金流總額為8.05 億美元，幾乎是截至2022 年7 月31 日的12 個月中產生的2.16 億美元的四倍。

Before I move to guidance, I am pleased to announce that we will host our Investor and Analyst Day in New York City on January 9. We are excited to share our strategy, long-term targets and capital allocation plan with you. More details will follow as we approach the date.

在開始指導之前，我很高興地宣布，我們將於 1 月 9 日在紐約舉辦投資者和分析師日。我們很高興與您分享我們的戰略、長期目標和資本配置計劃。隨著日期的臨近，我們將提供更多詳細信息。

And with that, let's turn to guidance. The current selling environment remains uncertain. We continue to experience increased scrutiny on deals as well as delayed cloud migrations. That said, we're pleased with our first half execution, navigating this macro backdrop. Based on our progress to date, we're increasing the low end of our ARR outlook to $4.15 billion. In terms of the high end, until we see a positive change in the macro environment, we believe it's prudent to hold it unchanged at $4.175 billion. Separately, we are increasing our annual revenue outlook to a range of between $3.925 billion and $3.95 billion, up from our prior single point estimate of $3.9 billion, an increase of $25 million to $50 million.

接下來，讓我們轉向指導。當前的銷售環境仍然不確定。我們繼續經歷對交易越來越嚴格的審查以及雲遷移的延遲。也就是說，我們對上半年的執行情況感到滿意，在這個宏觀背景下。根據迄今為止的進展，我們將 ARR 展望的下限提高至 41.5 億美元。就高端而言，在我們看到宏觀環境出現積極變化之前，我們認為保持 41.75 億美元不變是謹慎的做法。另外，我們將年收入預期上調至 39.25 億美元至 39.5 億美元之間，高於我們之前單點預測的 39 億美元，增加了 2500 萬美元至 5000 萬美元。

Please recognize that duration and mix of term contract volume could significantly impact reported revenue and associated growth rates. I want to remind investors that our software license revenue related to term contract volume is recognized upfront. Thus, GAAP revenue is highly subject to both bookings mix and contract duration. As a reminder, we believe ARR is a better top line indicator since we bill both cloud and term software license customers on an annual basis.

請注意，期限合同量的期限和組合可能會嚴重影響報告的收入和相關的增長率。我想提醒投資者，我們與定期合同量相關的軟件許可收入是預先確認的。因此，公認會計原則收入很大程度上取決於預訂組合和合同期限。提醒一下，我們認為 ARR 是一個更好的收入指標，因為我們每年向雲和術語軟件許可證客戶收取費用。

So let's move to expenses and the impact on free cash flow. We remain laser-focused on improving our margin profile. We made outstanding progress in the first half. And looking forward, we remain extremely focused on unlocking additional savings and efficiencies. As a result, we are updating our annual expense guidance as we now expect to manage annual non-GAAP OpEx growth below our prior outlook. At the beginning of this fiscal year, we provided an outlook for annual non-GAAP OpEx growth of 7%. Last quarter, based on Q1 progress, we changed our guidance to between 5% and 6% growth. And we now have a new outlook. We expect that we can hold non-GAAP OpEx growth in fiscal '24 to approximately 2.5%, which represents a 450 basis point improvement from our original outlook at the beginning of the year, and a 300 basis point improvement from the midpoint of our outlook provided just one quarter ago.

那麼讓我們來看看費用及其對自由現金流的影響。我們仍然專注於改善我們的利潤狀況。上半場我們取得了顯著的進步。展望未來，我們仍然非常專注於進一步節省成本並提高效率。因此，我們正在更新年度費用指引，因為我們現在預計年度非 GAAP 運營支出增長將低於我們之前的預期。在本財年年初，我們預計非 GAAP 運營支出年度增長率為 7%。上個季度，根據第一季度的進展，我們將增長預期更改為 5% 至 6% 之間。現在我們有了新的展望。我們預計，我們可以將 24 財年的非 GAAP 運營支出增長率保持在 2.5% 左右，這比我們年初的最初預期提高了 450 個基點，比我們的預期中點提高了 300 個基點就在四分之一前提供的。

In terms of the impact on margins, we now expect a fiscal '24 non-GAAP operating margin of between 21% and 21.5%, up 300 basis points from our prior guidance range. Based on our successful expense management, we're also increasing our annual free cash flow forecast by an additional $50 million. We now expect to generate free cash flow between $855 million and $875 million in fiscal '24, which represents a year-over-year increase of between 100% and 105% from the $427 million generated in fiscal '23. As a percentage of ARR, this would represent a free cash flow margin between 20.6% and 21%, up from just 11.6% in fiscal '23.

就對利潤率的影響而言，我們目前預計 24 財年非 GAAP 營業利潤率將在 21% 至 21.5% 之間，比我們之前的指導範圍高出 300 個基點。基於我們成功的費用管理，我們還將年度自由現金流預測額外增加了 5000 萬美元。我們現在預計 24 財年將產生 8.55 億至 8.75 億美元的自由現金流，較 23 財年的 4.27 億美元同比增長 100% 至 105%。作為 ARR 的百分比，這意味著自由現金流利潤率在 20.6% 到 21% 之間，而 23 財年僅為 11.6%。

Let's move to near-term guidance. In Q3, we expect to grow ARR by over $120 million to $3.98 billion, which represents 15% year-over-year growth.

讓我們轉向近期指導。第三季度，我們預計 ARR 將增長超過 1.2 億美元，達到 39.8 億美元，同比增長 15%。

With regards to bookings mix, it's important to note that the U.S. public sector has historically had an outsized impact on our business in Q3, given the federal fiscal year end of September 30 and typical purchasing patterns. The majority of our public sector business remains on-prem and the expected renewals and expansions in Q3 will impact the cloud mix of software bookings. So while we continue to expect the cloud mix of software bookings will range between $55 and 65% each quarter, we will likely be towards the bottom end in Q3 after reaching the top end in Q2. Trailing 12-month cloud DBNRR should tick down by approximately 400 basis points and roughly stabilizing that vicinity for the remainder of the year.

關於預訂組合，值得注意的是，鑑於 9 月 30 日結束的聯邦財政年度和典型的採購模式，美國公共部門歷來對我們第三季度的業務產生了巨大影響。我們的大部分公共部門業務仍保留在本地，預計第三季度的更新和擴展將影響軟件預訂的雲組合。因此，雖然我們繼續預計每個季度軟件預訂的雲組合將在 55 美元到 65% 之間，但在第二季度達到最高點後，我們可能會在第三季度達到最低點。追踪 12 個月的雲 DBNRR 應下降約 400 個基點，並在今年剩餘時間內大致穩定在該附近。

I am pleased to share that we now expect to achieve an important milestone early. We previously indicated that cloud services would represent the majority of total ARR in the second half of the year. We now expect to achieve this during Q3.

我很高興地告訴大家，我們現在期望早日實現一個重要的里程碑。我們此前表示，雲服務將佔今年下半年總 ARR 的大部分。我們現在預計在第三季度實現這一目標。

Let's move to revenue. We expect revenue between $1.02 billion and $1.035 billion in Q3, representing year-over-year growth of approximately 10% to 11%. With respect to non-GAAP cloud gross margin, we expect it will be relatively flat quarter-on-quarter as we focus on improving service level and customer experience. This would still represent approximately a 100 basis point improvement year-over-year. We continue to expect that we can achieve non-GAAP cloud gross margins of roughly 74% in Q4. We expect Q3 non-GAAP OpEx growth to range between 4% and 5% year-over-year as we begin to comp some of the cost actions we took last year. This OpEx growth translates into an expected Q3 non-GAAP operating margin of between 24.7% and 25.3%.

讓我們轉向收入。我們預計第三季度營收在 10.2 億美元至 10.35 億美元之間，同比增長約 10% 至 11%。就非 GAAP 雲毛利率而言，我們預計季度環比將相對持平，因為我們專注於提高服務水平和客戶體驗。這仍然意味著同比改善約 100 個基點。我們仍然預計第四季度的非 GAAP 雲毛利率將達到約 74%。隨著我們開始計算去年採取的一些成本行動，我們預計第三季度非 GAAP 運營支出同比增長將在 4% 至 5% 之間。這一運營支出增長意味著預計第三季度非 GAAP 運營利潤率將在 24.7% 至 25.3% 之間。

Let's move to cash flow. In Q3, we expect to generate $75 million of free cash flow. This implies free cash flow of $834 million for the 12 months ending October 31, 2023, which is nearly triple the $287 million of free cash flow for the 12 months ending October 31, 2022. We then expect to generate approximately $300 million of free cash flow in Q4. Again, for the full year, we expect free cash flow between $855 million and $875 million, which is an increase of $50 million compared to our guidance range provided last quarter.

讓我們轉向現金流。第三季度，我們預計將產生 7500 萬美元的自由現金流。這意味著截至2023 年10 月31 日的12 個月的自由現金流為8.34 億美元，幾乎是截至2022 年10 月31 日的12 個月的2.87 億美元的自由現金流的三倍。我們預計將產生約3 億美元的自由現金第四季度的流量。同樣，我們預計全年自由現金流在 8.55 億美元至 8.75 億美元之間，比我們上季度提供的指導範圍增加了 5000 萬美元。

Let's move to equity. As I mentioned last quarter, we're taking deliberate steps to reduce equity dilution. In fiscal '24, we expect to meaningfully reduce equity burn relative to fiscal '23, and this will benefit future (inaudible) indicator. In terms of what we can control in Q2, we reduced equity usage by approximately 50% versus the year ago period.

讓我們轉向股權。正如我上個季度提到的，我們正在採取審慎措施來減少股權稀釋。在 24 財年，我們預計相對於 23 財年將顯著減少股權消耗，這將有利於未來的（聽不清）指標。就我們在​​第二季度可以控制的情況而言，我們的股權使用量比去年同期減少了約 50%。

Finally, let me spend a moment on capital allocation. We ended Q2 with over $2.4 billion of cash, cash equivalents and short-term investments. We have elected to redeem the 2023 convertible notes in cash next month, but on a pro forma basis, we will continue to have significant liquidity. We will share more details of our capital allocation strategy at our Investor and Analyst Day in January.

最後，讓我花點時間談談資本配置。第二季度末，我們擁有超過 24 億美元的現金、現金等價物和短期投資。我們已選擇在下個月以現金贖回 2023 年可轉換票據，但在備考基礎上，我們將繼續擁有大量流動性。我們將在一月份的投資者和分析師日分享我們資本配置策略的更多細節。

So in closing, we remain intently focused on creating shareholder value by driving durable long-term growth and increasing our free cash flow and free cash flow margin. Despite a challenging macroeconomic environment, execution in Q2 was solid. We delivered strong results across the business, including exceeding our outlook on the top and bottom line.

因此，最後，我們仍然專注於通過推動持久的長期增長和增加我們的自由現金流和自由現金流利潤率來創造股東價值。儘管宏觀經濟環境充滿挑戰，但第二季度的執行情況依然穩健。我們在整個業務領域取得了強勁的業績，包括超出了我們對營收和利潤的預期。

With that, let's open it up for questions.

說到這裡，讓我們開始提問吧。

(Operator Instructions) Your first question comes from the line of Matt Hedberg from RBC Capital Markets.

（操作員說明）您的第一個問題來自 RBC Capital Markets 的 Matt Hedberg。

Gary and the whole team, congrats on the results, really, really good to see the momentum on both the top line and certainly the bottom line. It looks to me like you grew net new ARR really for the first time in a couple of years. Obviously, great to see. When you think about momentum in the second half and even next year, how do you expect to build on this success? And I guess specifically, outside of macros, which remain -- it feels like it's stable here, what are the most important things that we should think about that could perhaps apply further acceleration as we look out into the second half and into next year?

加里和整個團隊，祝賀我們的結果，真的非常高興看到頂線和底線的勢頭。在我看來，您的新 ARR 淨增長確實是幾年來的第一次。顯然，很高興看到。當您考慮下半年乃至明年的勢頭時，您預計如何在這一成功的基礎上再接再厲？我想具體來說，除了宏觀之外，感覺這裡很穩定，我們應該考慮哪些最重要的事情，當我們展望下半年和明年時，這些事情可能會進一步加速？

Yes. Yes, great question, Matt. So when we look at the business today, we continue to see tremendous strength in our security offerings and people are modernizing their SOC, thinking differently about how they want to run their SOC, and we're playing an integral role there. New capabilities like Attack Analyzer and things like that have been really well received by our customers and by prospects. And then more broadly, the advantage that we have, bringing security and observability together, we're giving our customers this opportunity to standardize on a single platform and save money in what has been a challenging economic time for folks.

是的。是的，很好的問題，馬特。因此，當我們審視當今的業務時，我們繼續看到我們的安全產品具有巨大的優勢，人們正在對他們的SOC 進行現代化改造，以不同的方式思考他們想要如何運行他們的SOC，而我們正在其中發揮著不可或缺的作用。像攻擊分析器之類的新功能受到了我們的客戶和潛在客戶的好評。更廣泛地說，我們擁有的優勢是將安全性和可觀察性結合在一起，我們為客戶提供了在單一平台上進行標準化的機會，並在對人們來說充滿挑戰的經濟時期節省資金。

So I think we're well positioned. What we saw in the quarter, we think, continues through the second half and into the coming year. And as we described before, we're excited about growth opportunities outside the U.S., and you heard it in a lot of the prepared remarks with the customers that we (inaudible), we're seeing very good traction in markets where we're relatively new. And so we feel like we have a lot of good momentum coming out of this quarter going into the second half, and we think it's a good set-up as we contemplate next year.

所以我認為我們處於有利位置。我們認為，我們在本季度看到的情況將持續到下半年和來年。正如我們之前所描述的，我們對美國以外的增長機會感到興奮，並且您在與客戶的許多準備好的講話中聽到了這一點，我們（聽不清），我們在我們所在的市場中看到了非常好的吸引力相對較新。因此，我們覺得從本季度到下半年，我們有很多良好的勢頭，我們認為這是我們明年考慮的一個很好的安排。

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

您的下一個問題來自 Jefferies 的 Brent Thill。

Gary, can you characterize the just demand environment, what you're seeing now versus perhaps 6 to 9 months ago, if things started to improve, stabilized and if they're stable, it's just better execution on your end? And I had a quick follow-up on Brian on expenses and where you're continuing to see the most leverage ahead in the operating margin expansion?

加里，您能否描述一下正義需求環境，您現在所看到的情況與 6 到 9 個月前相比，如果情況開始改善、穩定，如果穩定，這只是您的執行力更好？我對布萊恩的支出進行了快速跟進，您認為運營利潤率擴張中未來最大的槓桿作用在哪裡？

Brent, I think there's a couple of things. I think one is, while we continue to see a high level of deal scrutiny, we see cloud migrations continue to be thoughtfully reviewed. It's stabilized in the sense, I think we understand what that environment looks like. I think we're executing extremely well in this particular environment. I would say the macro environment is pretty much the same as what we see in the entire year, as we mentioned in the prepared remarks, but I think we're executing well within that.

布倫特，我認為有幾件事。我認為其中之一是，雖然我們繼續看到高水平的交易審查，但我們看到雲遷移繼續受到深思熟慮的審查。從某種意義上說它是穩定的，我認為我們了解那個環境是什麼樣子的。我認為我們在這個特定的環境中執行得非常好。我想說，正如我們在準備好的評論中提到的那樣，宏觀環境與我們全年看到的情況幾乎相同，但我認為我們在這方面執行得很好。

Yes, Brent, this is Brian. In terms of the expense question, I would say, look, we made very important progress in the first half of the year. And looking forward, we're going to continue evaluating opportunities to increase our efficiency and speed of execution. We should always be focused on identifying savings as we scale. It's just what good businesses do. As I shared in my prepared remarks, Q2 really was a milestone quarter as we reduced OpEx 3% while we grew ARR 16% year-over-year. And as we look forward, we're going to continue to see opportunities to drive leverage. So we increased our free cash flow margin for the year as we plan to limit OpEx growth to just 2.5%, and this is the second quarter in a row that we've increased our outlook for fiscal '24 free cash flow margin.

是的，布倫特，這是布萊恩。就費用問題而言，我想說，看，我們在上半年取得了非常重要的進展。展望未來，我們將繼續評估提高效率和執行速度的機會。我們應該始終專注於隨著規模的擴大而節省成本。這正是優秀企業所做的事情。正如我在準備好的發言中所分享的那樣，第二季度確實是一個里程碑式的季度，我們的運營支出減少了 3%，而 ARR 同比增長了 16%。展望未來，我們將繼續看到提高槓桿率的機會。因此，我們提高了今年的自由現金流利潤率，因為我們計劃將運營支出增長限制在 2.5%，這是我們連續第二個季度提高了對 24 財年自由現金流利潤率的預期。

Your next question comes from the line of Brad Zelnick from Deutsche Bank.

您的下一個問題來自德意志銀行的 Brad Zelnick。

Congrats, guys. Really great results. And it's great to see the cloud strength at the higher end of your expectations as a percentage of bookings. But Brian, your comments suggest you still face macro headwinds and we should expect lumpiness from quarter-to-quarter. So not totally out of the woods yet. But can you expand on the cloud migration trends that you see? What type of customers are moving over, which might be more resistive? And how if in any way are you adapting incentives to get customers (inaudible)?

恭喜，伙計們。真的很棒的結果。很高興看到雲實力在預訂中所佔的百分比超出了您的預期。但是布萊恩，你的評論表明你仍然面臨宏觀阻力，我們應該預計每個季度都會出現波動。所以還沒有完全脫離困境。但您能詳細闡述一下您所看到的雲遷移趨勢嗎？哪些類型的客戶正在轉向，哪些類型的客戶可能會更抵制？如果您以某種方式調整激勵措施來吸引客戶（聽不清），該怎麼辦？

Yes. So I would say, first of all, at a high level, we were very pleased with Q2. Again, coming it at 64% of our software bookings in terms of the mix, in terms of cloud. I would say, from a cloud migration perspective, the trends that we've seen really since July of last year have remained relatively consistent. We haven't really seen much difference. And so I think it's important for folks to realize again, cloud DBNRR is a trailing 12-month metric. But we do expect that, that metric will stabilize in Q3 and Q4, probably about 400 basis points below where we are.

是的。所以我想說，首先，從高水平來看，我們對第二季度非常滿意。同樣，就雲的組合而言，它占我們軟件預訂的 64%。我想說，從雲遷移的角度來看，自去年 7 月以來我們所看到的趨勢一直保持相對一致。我們還沒有真正看到太大的差異。因此，我認為人們必須再次認識到，雲 DBNRR 是一個跟踪 12 個月的指標。但我們確實預計，該指標將在第三季度和第四季度穩定下來，可能比我們目前的水平低約 400 個基點。

And Brad, one other thing I would add is the ROI on going to cloud continues to be extremely compelling. And so I think we're telling that story well and I think we're doing everything we can to ensure that customers understand that value. Because the reality is, companies today, they want their teams getting great outcomes from Splunk. They don't want them managing Splunk. And so this opportunity getting people to the cloud allows teams to focus on those great outcomes. And I think we're telling -- we continue to tell that story even better all the time. And I think that momentum is showing up in the numbers.

Brad，我要補充的另一件事是，轉向雲的投資回報率仍然非常引人注目。因此，我認為我們很好地講述了這個故事，並且我認為我們正在盡一切努力確保客戶理解這一價值。因為現實情況是，當今的公司希望他們的團隊從 Splunk 中獲得出色的成果。他們不希望他們管理 Splunk。因此，這個讓人們進入雲的機會使團隊能夠專注於這些偉大的成果。我認為我們正在講述——我們一直在繼續更好地講述這個故事。我認為這種勢頭正在數字中顯現出來。

Your next question comes from the line of Raimo Lenschow from Barclays.

您的下一個問題來自巴克萊銀行的 Raimo Lenschow。

Two quick questions, and congrats from me as well. Gary, if you think like since you started, there has been a few changes in terms of how you sell in terms of more a single seller model, more outcome-based selling, kind of refocusing on a little bit more on security again. Like where are we on that journey in terms of the whole sales organization kind of being in there and seeing also the benefit as part of that. Is that part of what's going on here with the better results? And then Brian, if you think about the cost takeout like there's obviously the next question comes, it's like, well, you take out cost, but you grow better, that almost seems too good to be true. Like in terms of what you're doing there, like where are we on that journey of like taking stuff out that actually doesn't really support revenue, and hence, there's a lot more (inaudible).

兩個簡單的問題，我也表示祝賀。加里，如果你認為自從你開始以來，你的銷售方式已經發生了一些變化，更多的是單一賣家模式，更多的是基於結果的銷售，有點重新關注安全性。就整個銷售組織而言，我們在這段旅程中處於什麼位置，並且也看到了其中的好處。這是這裡發生的事情的一部分，結果更好嗎？然後布萊恩，如果你考慮成本削減，顯然下一個問題就來了，就像，好吧，你削減了成本，但你成長得更好，這幾乎看起來好得令人難以置信。就像你在那裡所做的那樣，就像我們在把實際上並不能真正支持收入的東西拿出來的旅程中處於什麼位置，因此，還有更多（聽不清）。

Yes. Raimo, so a couple of things. So one is the move to single seller model that we did in October of last year, has proven to be a really good outcome. I think it's better for our customers. I think it makes us more efficient. And then aligning the resources to support those single sellers is something that we did relatively quickly. And so I believe what you're seeing today in our numbers is the efficiency of that really playing out. And I think we're delivering very good outcomes to our customers as a result of it. So I feel good about where we are in the evolution of that change and the impact that it's having with our customers. And I'll let Brian answer the rest of that.

是的。雷莫，有幾件事。因此，我們去年 10 月採取的向單一賣家模式的轉變已被證明是一個非常好的結果。我認為這對我們的客戶更好。我認為這讓我們更有效率。然後，我們相對較快地調整資源來支持這些單一賣家。因此，我相信您今天在我們的數據中看到的是真正發揮作用的效率。我認為我們正在為客戶帶來非常好的結果。因此，我對我們在這一變革的演變過程中所處的位置以及它對我們的客戶產生的影響感到滿意。我會讓布萊恩回答剩下的問題。

Sure. And I think in terms of our strategy, look, we're pretty consistent here. We want to increase efficiency and speed of execution. If you zoom out and look at the year, we are increasing our investment in the sales market and our go-to-market area to expand, especially in our international presence, improving some of our coverage ratios and really position Splunk to win new accounts.

當然。我認為就我們的戰略而言，看，我們在這裡非常一致。我們希望提高效率和執行速度。如果你把目光放遠一點，看看這一年，你會發現我們正在增加對銷售市場的投資，並擴大我們的進入市場領域，特別是在我們的國際影響力方面，提高我們的一些覆蓋率，並真正使Splunk 贏得新客戶。

And then on R&D, look, we're continuing to make R&D investments under new leadership, and I hope you got a sense from .conf that we've really accelerated our pace of innovation. We just -- we're becoming more efficient as we increase hiring in our global talent centers. And if you look at the R&D trends, we had a cost action in Q1. But in Q2, R&D grew faster than any other expense category on a sequential basis, and we expect this trend to continue in Q3.

然後在研發方面，我們將在新的領導下繼續進行研發投資，我希望您從 .conf 中感受到我們確實加快了創新步伐。隨著我們在全球人才中心增加招聘，我們的效率正在變得更高。如果你看看研發趨勢，我們在第一季度採取了成本行動。但在第二季度，研發的環比增長速度快於任何其他費用類別，我們預計這一趨勢將在第三季度繼續下去。

Your next question comes from the line of Andrew Nowinski from Wells Fargo.

您的下一個問題來自富國銀行的安德魯·諾溫斯基 (Andrew Nowinski)。

Congrats on a great quarter. So I wanted to ask about the partnership with Microsoft coming off your user conference that you announced that. You mentioned the first win already was a boomerang customer. I was wondering which vendor they replaced to come back to Splunk. And why did it take the partnership with Microsoft to convince them to come to Splunk? I guess I'm just trying to understand how applicable their thought process is to the rest of the customers in Azure that you might be able to flip?

恭喜您度過了一個出色的季度。所以我想詢問一下您在用戶大會上宣布的與微軟的合作夥伴關係。你提到第一個勝利已經是迴旋鏢客戶了。我想知道他們替換了哪家供應商回到 Splunk。為什麼要通過與 Microsoft 的合作來說服他們使用 Splunk？我想我只是想了解他們的思維過程對 Azure 中的其他客戶有何適用性，您可能能夠翻轉？

Yes. No, great question. I think what we've seen in the feedback we've gotten, the impetus for us to go drive that relationship with Microsoft was really driven by the customer feedback, both Splunk and Microsoft were getting. And I think there's this -- because there's a lot of data that lives in Azure that people wanted to have Splunk natively available there. The real opportunity for us is to get to a native Splunk solution on Azure, which we believe will have within the next 18 months. And that initial transaction that we saw, I don't have all the details actually of that. I think it's just the simple opportunity as someone wanting to be able to leverage their credits, having an experience in Splunk and that momentum then carrying through to a very quick transaction. But I think there's a very positive sentiment on the combination of Splunk and Azure.

是的。不，很好的問題。我認為我們在收到的反饋中看到的，推動我們與 Microsoft 建立關係的動力實際上是由 Splunk 和 Microsoft 收到的客戶反饋推動的。我認為這是因為 Azure 中有大量數據，人們希望 Splunk 可以在其中本地使用。對我們來說，真正的機會是在 Azure 上獲得原生 Splunk 解決方案，我們相信這將在未來 18 個月內實現。我們看到的最初交易，我實際上並沒有所有細節。我認為這只是一個簡單的機會，因為有人希望能夠利用自己的信用、擁有 Splunk 的經驗以及這種動力，然後進行非常快速的交易。但我認為人們對 Splunk 和 Azure 的結合抱有非常積極的情緒。

Your next question comes from the line of Shrenik Kothari from Baird.

您的下一個問題來自 Baird 的 Shrenik Kothari。

Your next question comes from the line of Keith Weiss from Morgan Stanley.

您的下一個問題來自摩根士丹利的 Keith Weiss。

This is Sanjit Singh on for Keith. Two quick ones from me. On the back of a lot of product announcements on the security side and on the observability side post the .conf conference, is there any changes in sort of pricing and packaging and sort of go-to-market motion behind the capabilities as we look into the back half and into calendar '24?

我是桑吉特·辛格 (Sanjit Singh) 替基思 (Keith) 發言。我的兩個快的。在 .conf 會議後，在安全方面和可觀察性方面發布了許多產品公告，當我們調查時，定價和包裝以及功能背後的上市動向是否有任何變化後半部分進入日曆'24？

There are no price changes. Obviously, these new capabilities represent additional add-on capabilities that customers can purchase. But the basic pricing structure, how we're going to market, we're basically taking these new capabilities and putting them through our existing structure.

價格沒有變化。顯然，這些新功能代表了客戶可以購買的附加附加功能。但基本的定價結構，我們將如何營銷，我們基本上採用這些新功能並將其納入我們現有的結構中。

That makes sense. That makes complete sense. And then just as a follow-up. You mentioned a number of unified security and observability wins in Q2, who is actually making the purchasing decision? Is this being handled by the leadership of the Splunk team or (inaudible) more of the centralized platform or the operations team is sort of leading the charge on making these architectural decisions?

這就說得通了。這是完全有道理的。然後作為後續行動。您在第二季度提到了許多統一的安全性和可觀察性方面的勝利，誰實際上在做出購買決定？這是由 Splunk 團隊的領導層還是（聽不清）更多的集中式平台或運營團隊負責制定這些架構決策來處理的？

Yes. No, great question. And typically, and then we could go through the details on a couple of these different customer wins that we talked about. Typically, we've anchored in with the CISO. We have great acceptance broadly across the security team, and then it spreads into broader IT and the observability sale typically then gets driven by a combination of CIO, CTO, and under CTO is typically the Head of Operations. It's collectively across those folks. So it's not -- the decision is not being made by security. It is -- basically, we're getting the endorsement and handoff from security, but it's getting made centrally in that CIO, CTO, Head of Operations area.

是的。不，很好的問題。通常，然後我們可以詳細了解我們討論過的幾個不同的客戶贏得的細節。通常情況下，我們會與 CISO 合作。我們在整個安全團隊中得到了廣泛的認可，然後它擴展到更廣泛的 IT 領域，可觀察性銷售通常由 CIO、CTO 聯合推動，而 CTO 的領導者通常是運營主管。這是這些人的集體。所以事實並非如此——這個決定不是由安全部門做出的。基本上，我們得到了安全部門的認可和移交，但它是在 CIO、CTO、運營主管領域集中完成的。

Makes complete sense. (inaudible).

完全有道理。 （聽不清）。

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

你的下一個問題來自威廉·布萊爾的雅各布·羅伯格。

Congrats again on the great quarter. Helpful commentary on the Cribl lawsuit and what you're doing with your Edge Processor to maybe help combat some of those potential competitive threats. I'm curious what you've seen on the adoption front for that product from your existing base, just given it's free for cloud customers and kind of how they're parsing out the data distribution with that product?

再次祝賀這個偉大的季度。對 Cribl 訴訟的有用評論以及您正在使用邊緣處理器所做的事情可能有助於應對一些潛在的競爭威脅。我很好奇您在現有基礎上對該產品的採用方面看到了什麼，只是考慮到該產品對雲客戶免費，以及他們如何解析該產品的數據分佈？

Yes. No, great question. It's relatively early. People are excited because they like the idea of not having to pay yet another license fee for something sitting around Splunk. And so I would say the reception has been very positive, but I would also say it's early.

是的。不，很好的問題。時間還比較早。人們很興奮，因為他們喜歡這樣的想法：不必為 Splunk 周圍的東西支付另一筆許可費。所以我想說，反響非常積極，但我也想說現在還為時過早。

Your next question comes from the line of Rob Owens from Piper Sandler.

您的下一個問題來自 Piper Sandler 的 Rob Owens。

I want to build on the unified security and observability questions from earlier. Maybe understand just where you are in terms of that process. Realizing it's early, but any metrics you can share in terms of security customers versus observability customers. I think more importantly, where you've landed with both the cross-sold both, excuse me, what's this doing to deal size? And how do the new AI capabilities potentially accelerate this, if at all?

我想以之前統一的安全性和可觀察性問題為基礎。也許了解你在這個過程中所處的位置。意識到這一點還為時過早，但您可以在安全客戶與可觀察性客戶方面分享任何指標。我認為更重要的是，您同時進行了交叉銷售，請問這對交易規模有何影響？新的人工智能功能如何可能加速這一過程（如果有的話）？

Yes. No, great question, Rob. So the motion that we're running today is we're going to existing security customers where we have a strong anchor, a strong set of relationships. We're using those relationships then to get to the broader central IT organization, either a CTO, CIO, sometimes Vice President of Operations, and we're showing them the value and opportunity of thinking about tool consolidation typically. And literally every customer that I talk to, they have tens of monitoring tools, using old words, but that's what they oftentimes have. And they're trying to figure out in this world where the digital footprint is growing rapidly, how do they get a single architecture that enables them to scale that broad digital footprint.

是的。不，很好的問題，羅布。因此，我們今天提出的議案是，我們將面向現有的安全客戶，我們在這些客戶中擁有強大的錨點和強大的關係。然後，我們利用這些關係來接觸更廣泛的中央 IT 組織，無論是 CTO、CIO，有時是運營副總裁，我們向他們展示通常考慮工具整合的價值和機會。事實上，我交談過的每一位客戶，他們都有數十個監控工具，用舊詞來說，但這就是他們經常擁有的。他們試圖弄清楚在這個數字足跡快速增長的世界中，他們如何獲得一個單一的架構，使他們能夠擴展廣泛的數字足跡。

And so you can't have a million different tools all doing different things. And so we run a broad play that enables us to show the value of Splunk and the value that you get by bringing the Observability Cloud in, integrated with the core platform, and how you can drive better resilience as a result of that. So that's the play we've been running. And we enter -- we start with the base of security and we move to observability versus the other way around. And I'll let Brian comment. We don't -- we haven't published any great metrics. There may be some other ways to think about it. But...

因此，你不可能擁有一百萬種不同的工具來完成不同的事情。因此，我們開展了廣泛的活動，使我們能夠展示 Splunk 的價值以及您通過引入 Observability Cloud 並與核心平台集成所獲得的價值，以及如何由此提高彈性。這就是我們一直在演的戲。我們進入——我們從安全基礎開始，然後轉向可觀察性，而不是相反。我會讓布萊恩發表評論。我們沒有——我們還沒有發布任何出色的指標。可能還有其他一些思考方式。但...

Yes. I mean we look at the attach, I think we feel good about the momentum there. But I think back to Gary's point, when we can sell -- successfully sell unified security and observability, it helps obviously increase ARR and it just makes that relationship even more sticky. And I think one thing that we saw in Q2, our renewal rate increased year-over-year, which we feel great about.

是的。我的意思是，我們看看附件，我認為我們對那裡的勢頭感覺良好。但我回想一下加里的觀點，當我們能夠成功地銷售統一的安全性和可觀察性時，它顯然有助於提高 ARR，而且只會使這種關係變得更加粘性。我認為我們在第二季度看到的一件事是，我們的續訂率逐年增加，我們對此感覺很好。

Your next question comes from the line of Joshua Tilton from Wolfe Research.

您的下一個問題來自沃爾夫研究中心的約書亞·蒂爾頓。

This is Patrick on for Josh. You all talked pretty extensively about your own directives to drive cost efficiencies. And we've obviously heard a lot about optimizations across the industry. From your perspective, have you seen customers looking to optimize their spend at this point, whether it be with log ingestion or on the observability side? And then also on the observability side, do you find that you're replacing other vendors more often or homegrown solutions? Or is it kind of a mix of both?

這是帕特里克替喬什發言。你們都非常廣泛地談論了自己的提高成本效率的指令。我們顯然聽說過很多有關整個行業優化的事情。從您的角度來看，您是否看到客戶此時希望優化他們的支出，無論是通過日誌攝取還是在可觀察性方面？然後在可觀察性方面，您是否發現您更頻繁地更換其他供應商或本土解決方案？或者是兩者的混合？

Yes. I think in this economic time, I think customers broadly are looking at how they can overall optimize costs. So I think that is definitely a conversation. A few things to note. One is when customers say, "Hey, I feel like my Splunk Bill is big. What can you do to help me?" We really talked through our overall strategy which is how do you think about your data and where it lives. So through our federated search capabilities, we allow people to get access to data wherever it might live. So you can then think strategically about where is the lowest cost place for storage. Good example of that is S3 where we support federated search on to S3. And then coupled with that, Edge Processor, one of the core capabilities of that solution is to reduce the level of data. So we go -- we lean into those conversations and really help our customers think through where they can optimize and save money. .

是的。我認為在這個經濟時期，我認為客戶普遍正在考慮如何整體優化成本。所以我認為這絕對是一次對話。有幾點需要注意。其中之一是當客戶說：“嘿，我覺得我的 Splunk Bill 很大。你能幫我做什麼？”我們確實討論了我們的總體策略，即您如何看待您的數據及其所在位置。因此，通過我們的聯合搜索功能，我們允許人們訪問數據，無論數據位於何處。因此，您可以戰略性地考慮存儲成本最低的地方。 S3 就是一個很好的例子，我們支持 S3 上的聯合搜索。再加上邊緣處理器，該解決方案的核心功能之一是減少數據級別。所以我們開始——我們深入這些對話，真正幫助我們的客戶思考他們可以在哪些方面進行優化並節省資金。 。

And then as you extend that broadly in observability, as I mentioned before, thematically, we see lots of tool consolidation kinds of opportunities where the outcome is reduced spend of vendors, and we're leveraging the Splunk platform to be able to drive that dialogue and win that. And then in terms of your question, on who the incumbent is, basically everybody as we go into these because big companies, so I think Global 2000 again, they have a broad range of what they would term as monitoring solutions. So you literally see everybody.

然後，當您廣泛擴展可觀察性時，正如我之前提到的，從主題上講，我們看到了許多工具整合的機會，其結果是減少供應商的支出，並且我們正在利用Splunk 平台來推動這種對話並贏得勝利。然後就你的問題而言，現任者是誰，基本上我們進入這些領域的每個人都是大公司，所以我再次認為全球 2000 強，他們擁有廣泛的監控解決方案。所以你確實看到了每個人。

Your next question comes from the line of Bradley Sills from Bank of America.

您的下一個問題來自美國銀行的 Bradley Sils。

And great to hear the commentary and interest level of observability. We certainly hear that from the channel. Would you classify that more as pipeline or deal activity that's already happening today? And if it is more pipeline, is there something on the horizon here on the road map that could potentially be a catalyst to convert that pipeline? Or is this just a gradual effort to continue to integrate observability with the core security suite?

很高興聽到可觀察性的評論和興趣水平。我們當然從頻道中聽到了這一點。您是否會將其更多地歸類為今天已經發生的管道或交易活動？如果是更多的管道，路線圖上是否有一些東西可能成為轉換該管道的催化劑？或者這只是繼續將可觀察性與核心安全套件集成的漸進努力？

Yes, great question, Brad. So what I would say is, just go back to our prepared remarks, we had some amazing wins with our observability solution in the current period. At the same time, because of the broad interest level, pipeline continues to grow as well. And so I would say it's a little bit of both. Like we've had really good adoption and we're getting good reception. This play of doing tool consolidation has been working well. I think that's what's driving pipeline conversion in the short term. And then we're on a long journey to continue to deliver new cool capabilities that make the observability experience that much better. And so I don't know that there's any one thing that anybody is waiting for, Brad. I feel like the maturity of where we are today versus a year ago is amazing. And I feel like we've got a really good set-up as we head into the second half and into next year.

是的，很好的問題，布拉德。所以我想說的是，回到我們準備好的發言，我們在當前時期的可觀測性解決方案取得了一些驚人的勝利。與此同時，由於廣泛的興趣水平，管道也在持續增長。所以我想說兩者兼而有之。就像我們已經得到了很好的採用並且我們得到了很好的接待。這種工具整合的做法一直運作良好。我認為這就是短期內推動管道轉換的原因。然後，我們將踏上漫長的旅程，繼續提供新的炫酷功能，使可觀察性體驗變得更好。所以我不知道有人在等待什麼事情，布拉德。我覺得我們今天的成熟度與一年前相比是驚人的。我覺得當我們進入下半年和明年時，我們已經有了一個非常好的設置。

Great to hear, Gary. One more, if I may, please. If you could just remind us how the macro has impacted the business? Are you talking about elongated sales cycles, smaller deal sizes to get deals through? And coming out of the macro, could we potentially see some acceleration as those things come back?

很高興聽到，加里。如果可以的話，請再來一張。您能否提醒我們宏觀經濟對業務有何影響？您是在談論延長銷售週期、縮小交易規模以完成交易嗎？從宏觀角度來看，隨著這些事情的恢復，我們是否可能會看到一些加速？

Yes. So I would say the macro environment has been largely consistent this entire year. And what that means to us has been we've seen choppiness in cloud migrations, meaning customers (inaudible) cloud migrations, they will defer them if they can because it represents an incremental project. There continues to be a lot of deal scrutiny, meaning additional sign-ups, et cetera. I think, though, having said all that, as we described earlier, I think our team has done a really good job of navigating through that. And so I think we've been able to deal with it reasonably well.

是的。所以我想說，今年宏觀環境基本保持一致。這對我們意味著我們已經看到雲遷移的不穩定，這意味著客戶（聽不清）雲遷移，如果可以的話他們會推遲它們，因為它代表了一個增量項目。仍然會有大量的交易審查，這意味著額外的簽約等等。不過，我認為，正如我們之前所描述的那樣，我認為我們的團隊在解決這個問題方面做得非常好。所以我認為我們已經能夠很好地處理這個問題。

Yes. I think in terms of -- when you think of the second half of the year, I have -- there's no one out there thinking the macro environment is going to get better. And so I think we have to keep that in mind in terms of how budgets are set for calendar '24. So we're not going to provide guidance today for next year, but stay tuned for Investor and Analyst Day on January 9.

是的。我認為，當你想到下半年時，沒有人認為宏觀環境會變得更好。因此，我認為我們在製定 24 日曆年預算時必須牢記這一點。因此，今天我們不會提供明年的指導，但請繼續關注 1 月 9 日的投資者和分析師日。

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

您的下一個問題來自摩根大通的 Pinjalim Bora。

Congrats on the quarter. I just wanted to ask you about the renewal portfolio overall. Maybe talk about the performance. I think you said renewals rate improved year-over-year. Was that for the whole portfolio or just cloud only? And any comments on kind of sequential improvement in renewal rates?

恭喜本季度。我只是想問你有關續約投資組合的整體情況。或許可以談談表演。我想你說過續訂率逐年提高。這是針對整個產品組合還是僅針對雲？對於續訂率的連續改善有何評論？

Sure. So that renewal is dollar based, and it's the full portfolio. So it's all and it did increase year-over-year. So again, we're feeling really good in terms of the value proposition. And just back to Gary's point, how we're executing in this macro environment. And this is a year where renewals should grow in terms of the opportunity roughly 20% this year.

當然。因此，更新是基於美元的，並且是完整的投資組合。就這樣，它確實逐年增加。再說一次，我們在價值主張方面感覺非常好。回到加里的觀點，我們如何在這個宏觀環境中執行。今年續約機會將增長約 20%。

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

您的下一個問題來自 BMO 的 Keith Bachman。

Gary and Brian, I wanted to ask about some of the drivers of growth. And what specifically want to zero in on net new logos or net new customers, I should say. And so we have the metrics for large customers. But I was wondering if you could just -- if you could speak to the breadth of customers. Are net new -- are the net new logos or new customers in entirely growing because it seems like if I just take your cloud DBNRR, which isn't reflective of total ARR. But if cloud DBNRR is in the mid-teens, and you're guiding to total ARR growing kind of in that same rate. If you could just speak to the customer breadth underneath the largest customers. And the co-related question is, if you could speak a little bit to the competitive environment. Because are you seeing more competition stay at some of the smaller customers, whether it be Microsoft or anybody else that you want to call out? That's it for me.

加里和布萊恩，我想問一些增長的驅動因素。我應該說，特別想要將淨新徽標或淨新客戶歸零。所以我們有大客戶的指標。但我想知道你是否可以——是否可以與廣大客戶交談。是淨新的——淨新徽標或新客戶是否完全增長，因為看起來如果我只採用您的雲 DBNRR，這並不反映總 ARR。但是，如果雲 DBNRR 處於十幾歲左右，並且您將引導總 ARR 以同樣的速度增長。如果你能談談最大客戶之下的客戶廣度。與之相關的問題是，您是否可以談談競爭環境。因為您是否看到更多的競爭仍然存在於一些較小的客戶身上，無論是微軟還是您想要提到的其他任何人？對我來說就是這樣。

Yes. I'm happy. I'll take the new customer, and then I'll pivot back to Gary to cover the competitive environment. I would say, I think it's important when you're looking at DBNRR for us, remember, it's a trailing 12-month base -- 12-month metrics. So it's literally the weighted average of the prior 12 months. The way we look at it, new customers continue to drive growth. From an ARR perspective, new customers generally account for roughly 20% of net new ARR on a trailing 12-month basis, and we were pleased that in Q2, this metric increased year-over-year. And I'll let Gary touch on that environment.

是的。我很高興。我將接待新客戶，然後我將轉向加里來報導競爭環境。我想說，我認為當你為我們查看 DBNRR 時，記住，它是一個過去 12 個月的基礎——12 個月的指標。所以它實際上是前 12 個月的加權平均值。我們認為，新客戶繼續推動增長。從 ARR 角度來看，過去 12 個月的新客戶通常約占淨新 ARR 的 20%，我們很高興第二季度這一指標同比有所增長。我會讓加里談談那個環境。

Yes. On the competitive side, I would say the competitive environment was largely consistent with what we've seen this year. The players that we see in the observability market have remained consistent. And then on the security side, I would say consistent as well. And even as you go to new customers, you will see incumbents there. You might see some legacy SIEM vendor that we then take out and replaced, that's been pretty consistent. So I would say there's no -- there's been no big fundamental change competitively.

是的。在競爭方面，我想說競爭環境與我們今年所看到的基本一致。我們在可觀測性市場中看到的參與者保持一致。然後在安全方面，我想說也是一致的。即使當你去接觸新客戶時，你也會在那裡看到現有客戶。您可能會看到一些舊的 SIEM 供應商，然後我們將其淘汰並替換，這非常一致。所以我想說，競爭方面沒有發生重大的根本性變化。

Your final question comes from the line of Trevor Walsh from JMP Securities.

你的最後一個問題來自 JMP 證券公司的特雷弗·沃爾什 (Trevor Walsh)。

Gary, maybe for you. You mentioned the SEC new regulations around public companies and reporting of incidents. I imagine Splunk's kind of on the tip of the spear of that being assumed and kind of the collector of all the information and alerts coming in. How much risk is there with -- within that process, you're probably only going to be as good as the data coming in. So how much risk is there around the other tools within the security stack, whether it's endpoint, network, et cetera, being either not properly tuned or maybe not quite best of breed, and that kind of maybe poor or less high fidelity data getting pumped in? And Splunk kind of bears the burden of kind of dealing with all that and maybe the reporting process kind of being maybe not as good as it could be from that perspective, just given that you're kind of -- again, the tip of the spear, the clearinghouse of all the data kind of coming in.

加里，也許適合你。您提到了美國證券交易委員會關於上市公司和事件報告的新規定。我想像 Splunk 有點像假設的矛尖，是所有信息和警報的收集器。在這個過程中，您可能只會遇到多少風險那麼，安全堆棧中的其他工具（無論是端點、網絡等）存在多少風險，要么沒有適當調整，要么可能不是最好的品種，而且這種風險可能很差或者輸入的保真度較低的數據？ Splunk 承擔著處理所有這些問題的重任，從這個角度來看，報告流程可能並不那麼好，只是考慮到您——再次強調， Spear，所有輸入數據的交換所。

Yes, Trevor, really good question. So I think if you just step back, I think the one thing that we're very positive about is this new SEC really, really drives organizations to think through what is their strategy, if there's an event and how quickly can they actually understand and then provide broad SEC -- the SEC a broad viewpoint on where they stand. So I think that's the number one thing. And one of the things we're getting very good at is helping customers mature their security environment. So to your point, everyone's mileage varies and how mature they are.

是的，特雷弗，真是個好問題。所以我認為，如果你退後一步，我認為我們非常積極的一件事是，這個新的SEC 確實非常推動組織思考他們的策略是什麼，如果有事件發生，以及他們能夠多快真正理解並採取行動。然後向美國證券交易委員會（SEC）提供關於他們立場的廣泛觀點。所以我認為這是第一件事。我們非常擅長的事情之一就是幫助客戶完善他們的安全環境。所以就你的觀點而言，每個人的里程數和成熟程度都不同。

I think one of the kind of the key -- really interesting and exciting opportunities for us is we're very much focused on helping our customers drive that maturity journey to get the most value out of Splunk. And through that, they get the visibility they need to make those determinations because there's lots of places where, as you described it, you could have lack of visibility because you didn't get the right data in or you didn't get the right alerts. We have a very prescriptive program that we're driving with our customers to ensure that they're getting themselves set up correctly and helping them through that journey. And that's a very important motion. We've even accelerated that motion given this new SEC ruling. That was something we had in place prior, but we're accelerating that.

我認為對我們來說真正有趣和令人興奮的關鍵機會之一是我們非常專注於幫助我們的客戶推動成熟之旅，從 Splunk 中獲得最大價值。通過這種方式，他們獲得了做出這些決定所需的可見性，因為正如您所描述的，在很多地方，您可能會缺乏可見性，因為您沒有獲得正確的數據，或者沒有獲得正確的數據。警報。我們有一個非常規範的計劃，我們正在與客戶一起推動，以確保他們正確設置並幫助他們完成整個旅程。這是一項非常重要的動議。鑑於美國證券交易委員會的這項新裁決，我們甚至加快了這一動議。這是我們之前已經採取的措施，但我們正在加速這一進程。

And we have no further questions at this time. Gary, I'll turn the call back over to you.

目前我們沒有進一步的問題。加里，我會把電話轉給你。

Great. Thank you. I just want to take a moment and thank everyone for joining us on the call today. We look forward to seeing you out on the road. We'll be doing a lot of Investor Relations work over the coming quarter and looking forward to seeing you soon.

偉大的。謝謝。我只想花一點時間感謝大家今天加入我們的電話會議。我們期待在路上見到您。我們將在下個季度開展大量投資者關係工作，期待很快見到您。

This concludes today's conference call. Thank you for your participation, and you may now disconnect.

今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。