Sumo Logic Inc (SUMO) 2023 Q3 法說會逐字稿

Greetings. Welcome to the Sumo Logic Third Quarter Fiscal 2023 Earnings Call. (Operator Instructions) Please note, this conference is being recorded.

您好。歡迎參加 Sumo Logic 2023 財年第三季財報電話會議。 （操作說明）請注意，本次會議正在錄音。

I'll now turn the conference over to your host, Bryan Liberator, Senior Director of Investor Relations. You may begin.

現在我將會議交給主持人，投資者關係高級總監布萊恩·利貝拉托。您可以開始了。

Thank you, and good afternoon. Welcome to Sumo Logic's Third Quarter Fiscal 2023 Earnings Conference Call. Joining me on the call today are Ramin Sayar, President and CEO; and Stewart Grierson, Chief Financial Officer. Our format today will include prepared remarks by Ramin and Stewart, followed by a question-and-answer session. Some of our discussions and responses to your questions will contain forward-looking statements, including statements relating to the expected performance for business, expectations regarding our platform and solutions, expectations regarding our go-to-market efforts, our future financial results and guidance; our growth, expense and investment strategies, our market opportunities, the recent economic downturn inflation and our overall future prospects.

謝謝，下午好。歡迎參加 Sumo Logic 2023 財年第三季財報電話會議。今天與我一同出席會議的有總裁兼執行長 Ramin Sayar 和財務長 Stewart Grierson。今天的會議形式包括 Ramin 和 Stewart 的發言，以及問答環節。我們的一些討論和回答將包含前瞻性陳述，包括與公司預期業績、平台和解決方案預期、市場推廣預期、未來財務業績和指引、成長、支出和投資策略、市場機會、近期經濟衰退和通貨膨脹以及整體未來前景相關的陳述。

These statements are subject to risks and uncertainties. Actual results may differ materially from our forward-looking statements. A discussion of the risks and uncertainties related to our business is contained in our filings with the Securities and Exchange Commission, including our risk factors filed with our most recent quarterly report on Form 10-Q and the risk factors that will be included in our Form 10-Q that will be filed subsequent to this call.

這些聲明受風險和不確定性因素的影響。實際結果可能與我們的前瞻性聲明有重大差異。有關我們業務相關風險和不確定性的討論，請參閱我們向美國證券交易委員會提交的文件，包括我們最新季度報告（10-Q 表格）中披露的風險因素，以及將在本次電話會議後提交的 10-Q 表格中包含的風險因素。

Sumo Logic assumes no obligation and does not intend to update or comment on forward-looking statements made on this call, except as required by law. Our discussion today will include non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. Information regarding our non-GAAP financial results, including a reconciliation of our historical GAAP to non-GAAP results would be found in our earnings release, which was furnished with our Form 8-K filed today with the SEC on our Investor Relations website at investor.sumologic.com.

Sumo Logic不承擔任何義務，也不打算更新或評論本次電話會議中所做的前瞻性陳述，除非法律另有規定。我們今天的討論將涉及非GAAP財務指標。這些非GAAP財務指標應作為補充訊息，而非替代或孤立地看待我們的GAAP業績。有關我們非GAAP財務業績的信息，包括我們歷史GAAP業績與非GAAP業績的調節表，請參閱我們今天向美國證券交易委員會（SEC）提交的8-K表格中的盈利報告，該報告可在我們投資者關係網站investor.sumologic.com上查閱。

For certain forward-looking guidance, a reconciliation of the non-GAAP financial guidance to the corresponding GAAP measure is not available as discussed and detailed in our earnings release posted on the Investor Relations website. With that, let me turn the call over to Ramin.

對於某些前瞻性指引，如我們在投資者關係網站發布的獲利報告中所述，我們無法提供非GAAP財務指引與相應GAAP指標的調節表。接下來，我將把電話會議交給拉明。

Thanks, everyone, for joining us today on our third quarter earnings call. We are pleased with the continued progress and strength in our business. We once again exceeded the high end of all of our guided metrics.

感謝各位今天參加我們的第三季財報電話會議。我們對公司業務的持續發展和強勁勢頭感到滿意。我們再次超額完成了所有預期指標。

In Q3, we delivered total revenue of $79 million or 27% year-over-year revenue growth and ended the quarter with ARR of $298.9 million or 22% year-over-year growth. We achieved these strong results while also demonstrating outperformance across both gross margin and operating margin.

第三季度，我們實現了7,900萬美元的總營收，年增27%；季末，年度經常性收入（ARR）達到2.989億美元，年增22%。在取得這些強勁業績的同時，我們的毛利率和營業利益率也都表現出色。

Our improving operating efficiency is driven by a combination of continued cost optimization, improved sales productivity and headcount rationalization. We've driven sequential operating margin improvements throughout this year as it remains a key area of focus.

我們營運效率的提升得益於持續的成本優化、銷售效率的提高以及人員結構的合理化。今年以來，我們持續提升營運利潤率，這始終是我們工作的重點領域。

Moreover, we remain optimistic about our opportunity and our ability to execute against our plans. We are committed to continuing to deliver more efficient growth as we look to accelerate our plans to achieve cash flow breakeven and profitability.

此外，我們對自身機會和執行計劃的能力仍然保持樂觀。我們將致力於持續提升成長效率，並加快現金流收支平衡和獲利目標的步伐。

While in the near term, there is less certainty and more noise in the macroeconomic climate, we have control over how we manage the business and remain committed to delivering more durable growth and accelerating our path to profitability. Despite the macro uncertainty, we are still in the early innings of a multiyear growth cycle driven by digital transformation, cloud migration, and security modernization.

儘管短期內宏觀經濟環境不確定性增加，波動性增大，但我們仍能掌控業務管理，並致力於實現更永續的成長，加速獲利。儘管宏觀經濟情勢不明朗，但我們仍處於由數位轉型、雲端遷移和安全現代化驅動的多年成長週期的初期階段。

Companies are increasingly relying on digital services to help grow and operate their business. And we play a critical role in ensuring that these experiences are both reliable as well as secure.

企業越來越依賴數位化服務來促進業務成長和營運。而我們在確保這些體驗的可靠性和安全性方面發揮著至關重要的作用。

These long-term trends drive our business and are contributing to our strength that we are seeing in our results. In Q3, we continued to see strong win rates with our customers increasing their adoption and usage of our platform. We ended the quarter with 501 customers with more than $100,000 in ARR, representing a year-over-year growth of 14%.

這些長期趨勢推動著我們的業務發展，並促成了我們業績的強勁成長。第三季度，我們繼續保持較高的成交率，客戶對我們平台的採用和使用率不斷提高。本季末，我們擁有 501 家年經常性收入 (ARR) 超過 10 萬美元的客戶，年增 14%。

Before I share some key customer wins, I would like to reiterate that our vision is to make the world's digital experiences, both reliable and secure. Our cloud-native platform uniquely helps customers do 3 things: first, ensure application reliability; second, secure and protect against modern security threats; and third, gain insights into cloud infrastructure. This vision and our strength was further validated by the fact that we are recently named a visionary in Gartner's Magic Quadrant for Security Information and Event Management for a second straight year.

在分享一些重要的客戶成功案例之前，我想重申我們的願景：打造可靠且安全的全球數位體驗。我們的雲端原生平台能夠幫助客戶實現三個獨特目標：首先，確保應用程式的可靠性；其次，保護應用程式免受現代安全威脅；第三，深入了解雲端基礎架構。我們連續第二年被Gartner評為安全資訊和事件管理魔力像限的遠見者，這進一步印證了我們的願景和實力。

Additionally, we are the only cloud-native vendor in the Gartner Magic Quadrant for both APM and Observability as well as SIEM that offers a unified analytics platform for application reliability and security. As a reminder, at the core of our platform is best-in-class cloud scale log analytics.

此外，我們是Gartner魔力像限中唯一同時入選APM、可觀測性和SIEM領域的雲端原生供應商，能夠提供統一的應用可靠性和安全性分析平台。再次強調，我們平台的核心是業界領先的雲端規模日誌分析。

This is critical as logs are essential for detecting diagnosing, troubleshooting and remediating both reliability and security issues. Rapid root cause analysis is essential to minimize end user or business disruption and security and compliance risk to applications and cloud infrastructure.

這一點至關重要，因為日誌對於檢測、診斷、檢查和修復可靠性及安全性問題必不可少。快速進行根本原因分析對於最大限度地減少最終用戶或業務中斷以及應用程式和雲端基礎架構的安全性和合規性風險至關重要。

Given the significant overlap in the logs required to ensure cloud application reliability and security as well as the volume of data created by these cloud apps, the ability to effectively analyze these logs at scale from a unified platform will become increasingly important. We believe we are uniquely positioned to help customers address the challenges of delivering reliable and secure digital services.

鑑於確保雲端應用可靠性和安全性所需的日誌存在大量重疊，以及這些雲端應用產生的資料量龐大，從統一平台大規模高效分析這些日誌的能力將變得日益重要。我們相信，我們擁有獨特的優勢，能夠幫助客戶應對交付可靠、安全數位服務所面臨的挑戰。

With that, I'd like to share some examples of how our customers are using our platform and talk about key wins for the quarter. These wins were fueled by companies modernizing and migrating to the cloud as well as cloud-native companies expanding their footprint and platform usage. Many of the wins this quarter are with digitally disruptive companies, leveraging new technology and modern architectures to gain market share within traditional industries.

接下來，我想分享一些客戶如何使用我們平台的案例，並談談本季的主要成果。這些成果主要得益於企業現代化轉型和雲端遷移，以及雲端原生企業擴大業務規模和平台使用率。本季許多成功案例都來自具有數位顛覆性的公司，它們利用新技術和現代架構在傳統產業中贏得市場份額。

I'd like to first highlight some new logos that we landed in the quarter. The first was a 6-figure new logo deal with a large online retailer, who is newly spun off from its brick-and-mortar parent company. The new entity needed a security solution that could be easily deployed by the existing team and work seamlessly with a modern cloud-native technology stack.

首先，我想重點介紹一下我們本季拿下的一些新logo項目。第一個項目是與一家大型線上零售商簽訂的六位數新logo合同，這家零售商剛從其實體零售母公司分拆出來。這家新公司需要安全解決方案，既能被現有團隊輕鬆部署，又能與現代雲端原生技術堆疊無縫協作。

We proved our value during the POC process when we identified 2 ongoing threats that were quickly remediated. Ultimately, they selected our Cloud SIEM because of its ability to scale with their business and its easy out-of-the-box integrations, providing immediate time to value.

我們在概念驗證 (POC) 過程中證明了自身的價值，當時我們識別出了兩個持續存在的威脅並迅速修復。最終，他們選擇了我們的雲端安全資訊和事件管理 (SIEM) 解決方案，因為它能夠隨著業務的擴展而擴展，並且具有便捷的開箱即用整合功能，可以立即帶來價值。

Next, we landed a 6-figure new logo deal with a Fortune 500 healthcare company that is moving to the cloud and expanding the use of Kubernetes for their microservices architecture. Their existing solutions had difficulty scaling with the data generated by their microservices architecture, creating excessive personnel costs to configure and maintain it. They wanted their team to spend more time developing and less time maintaining and manually troubleshooting issues.

接下來，我們與一家財富 500 強醫療保健公司達成了一項價值六位數的全新 Logo 設計協議。該公司正在向雲端遷移，並計劃在其微服務架構中擴展 Kubernetes 的應用。他們現有的解決方案難以應對微服務架構產生的資料量，導致配置和維護成本過高。他們希望團隊能夠將更多時間用於開發，而不是維護和手動檢查問題。

Therefore, they select Sumo Logic for our SaaS-based analytics offering and easy-to-use Kubernetes observability solution. These wins represent companies in different verticals that are digitally transforming their businesses, thereby requiring them to adopt new solutions to ensure the reliability and security of their cloud applications, without having to run, configure and maintain those technologies themselves or needing specialized in-house skills.

因此，他們選擇 Sumo Logic 的 SaaS 分析產品和易於使用的 Kubernetes 可觀測性解決方案。這些成功案例代表了不同垂直領域的公司，它們正在進行數位轉型，因此需要採用新的解決方案來確保其雲端應用程式的可靠性和安全性，而無需自行運行、配置和維護這些技術，也無需具備專業的內部技能。

Besides new customers, we continue to see many of our existing and larger customers expand their use of our platform by adopting additional Sumo Logic products to solve additional reliability and security use cases, which is made easy with our flexible credit-based licensing model. Additionally, data is growing faster than budgets, and our cloud-native platform can deliver significant economic benefits to our customers via the unified platform and data tiers. I'd like to highlight a few of these exciting cross-sells.

除了新客戶之外，我們還看到許多現有客戶和大型客戶透過採用 Sumo Logic 的其他產品來擴展其平台的使用範圍，以滿足更多可靠性和安全性方面的應用需求。我們靈活的基於積分的授權模式使這一切變得輕鬆便捷。此外，資料成長速度超過了預算成長速度，而我們的雲端原生平台可以透過統一的平台和資料層為客戶帶來顯著的經濟效益。我想重點介紹幾個令人振奮的交叉銷售案例。

We landed a 7-figure enterprise cross-sell with a tech-focused telecommunications company who is already spending over $1 million with us. This cross-sell is a great example of how our platform seamlessly supports a variety of security and observability use cases.

我們與一家專注於科技的電信公司達成了一項價值七位數的企業交叉銷售，該公司此前已在我們這裡消費超過100萬美元。這項交叉銷售充分展現了我們的平台如何無縫支援各種安全和可觀測性用例。

First, they have made 3 acquisitions in the last 6 months and wanted to standardize their logging on Sumo Logic because of their best-in-class log analytics for troubleshooting and remediating issues in real time. Additionally, they chose to standardize on Sumo because of our shared vision of open telemetry standard across for observability.

首先，他們在過去六個月內完成了三項收購，並希望將日誌記錄標準化到 Sumo Logic 上，因為 Sumo Logic 擁有業內一流的日誌分析功能，可以即時檢查和修復問題。此外，他們選擇 Sumo 的原因還在於我們擁有共同的願景，即建立開放的遙測標準，以提高可觀測性。

According to our customer, their DevSecOps teams have experienced a 30% reduction in mean time to identify and reduction in the mean time to remediate versus competitive solutions; second, they wanted a SIEM for their production and application environment and saw the benefit of using our single platform due to the similar or complementary log data for both application reliability and security. And they'll also be using our FedRAMP Moderate Authorized SIEM in their FedRAMP environment.

根據我們的客戶回饋，與競爭對手的解決方案相比，他們的DevSecOps團隊在使用我們的解決方案後，平均識別時間和平均修復時間均縮短了30%；其次，他們需要一套適用於生產環境和應用環境的安全資訊和事件管理（SIEM）系統，並且由於我們的單一平台能夠提供相似或互補的應用可靠性和安全性日誌數據，因此他們看到了使用我們平台的優勢。此外，他們還將在FedRAMP環境中使用我們符合FedRAMP中等授權標準的SIEM系統。

Another similar win came from our mid-market segment for a 6-figure cross-sell with a media and technology company. They're originally using Sumo for a classic monitoring and troubleshooting use case with logs, reducing time to identification and remediation when the payments or APIs failed. They're building out the security practices and adopted our cloud SIEM and SOAR as they saw the benefits of having a single vendor providing a single platform for ensuring application reliability and security of their mission-critical applications.

另一個類似的成功案例來自我們的中階市場，我們與一家媒體和科技公司達成了一項價值六位數的交叉銷售交易。他們最初使用 Sumo 進行經典的日誌監控和故障排除，以縮短付款或 API 故障的識別和修復時間。隨著他們意識到由單一供應商提供單一平台來確保其關鍵業務應用程式的可靠性和安全性所帶來的優勢，他們正在建立安全實踐，並採用了我們的雲端 SIEM 和 SOAR 解決方案。

While data consumption continues to grow more than 50% year-over-year, data volumes are continuing to outpace budgets. With increased data volumes, there's a natural opportunity to drive further expansions. In the quarter, we had a couple of Fortune 500 companies with 7-figure upgrades due to continued data growth. They chose Sumo because of our data tiers, help lower their ingestion costs, and our out-of-the-box analytics helps increase their time to value.

儘管數據消費量持續年增超過 50%，但數據量的成長速度仍超過預算。隨著數據量的成長，自然而然地出現了進一步擴張的機會。本季度，我們為幾家財富 500 強企業提供了價值數百萬美元的升級方案，以應對持續成長的數據需求。他們選擇 Sumo 的原因在於我們的資料分層功能，這有助於降低他們的資料收集成本，而我們開箱即用的分析功能可以幫助他們更快地實現價值。

Lastly, I'd like to highlight that we continue to see strong traction with our channel partners for both observability and security deals. More than 2/3 of our new business went through the channel in the quarter, and we think we can continue to drive this number up as we continue our focused shift to our partner-first strategy.

最後，我想強調的是，我們在可觀測性和安全性交易方面，與通路合作夥伴的合作持續強勁。本季度，超過三分之二的新業務是透過通路管道獲得的，我們相信，隨著我們繼續專注於以合作夥伴為先的策略，這一比例也將繼續增長。

In addition, as we shift from channel fulfilled to channel sourced sales opportunities, it will free up sales cycles for our direct sellers, improving the reach and efficiency of our sales organization. This is an important lever for our future growth. These wins highlight our continued traction, large market opportunity as well as underscores the core differentiators of our unified cloud-native platform for observability and security.

此外，隨著我們從通路交付轉向通路採購，這將釋放直銷人員的銷售週期，從而提升銷售組織的覆蓋範圍和效率。這對我們未來的成長至關重要。這些成功案例凸顯了我們持續的市場動力和巨大的市場潛力，同時也強調了我們統一雲端原生平台在可觀測性和安全性方面的核心優勢。

Our platform is able to handle modern data volumes at unparalleled scale as our customers' needs expand and contract. In an environment where customers are scrutinizing budgets, there's an even bigger opportunity for customers to eliminate expenses by moving to our unified platform that has the breadth and scale required to meet their business needs.

隨著客戶需求的擴展和收縮，我們的平台能夠以前所未有的規模處理現代數據量。在客戶精打細算的當下，遷移到我們統一的平台，為客戶提供滿足其業務需求所需的廣度和規模，從而幫助他們節省開支，這無疑是一個絕佳的機會。

Additionally, our platform is highly audited and certified for a variety of industry, security and compliance regulations, including PCI, HIPAA and FedRAMP. With that, I would like to share some quick product highlights. During Q3, we announced significant new capabilities and functionality to continue strengthening our full stack observability and security value by providing our practitioners with greater insights and usability.

此外，我們的平台經過嚴格的審計和認證，符合包括PCI、HIPAA和FedRAMP在內的多項產業、安全和合規法規。接下來，我想簡單介紹一下我們的產品亮點。在第三季度，我們發布了多項重要的新功能，旨在透過為用戶提供更深入的洞察和更便利的使用體驗，持續增強我們的全端可觀測性和安全性。

We announced reliability management, which is a better approach to measure and improve the reliability of distributed applications shifting the focus on reliability towards the user experience. Additionally, we provided some exciting updates and enhancements to develop our strategy and user experience with our real-user monitoring, a unified entity model, intelligent alert grouping and a new app to help practitioners manage their AWS performance and costs.

我們發布了可靠性管理，這是一種更有效的衡量和提升分散式應用程式可靠性的方法，它將可靠性的關注點轉移到用戶體驗上。此外，我們還推出了一系列令人振奮的更新和增強功能，旨在透過真實用戶監控、統一實體模型、智慧警告分組以及一款幫助從業人員管理 AWS 效能和成本的新應用，進一步完善我們的策略和用戶體驗。

For security, we continue to invest in developing security capabilities as well as enhancements to the platform in order to open up new routes to market and levers for growth. This quarter, we announced that our Cloud SIEM is now available as part of the Sumo Logic FedRAMP Moderate offering. With this designation, Sumo Logic became the first cloud-native SIEM to deliver insights into on-premises and cloud environments for public sector organizations, helping in our efforts to continue to expand our public sector presence.

在安全性方面，我們持續投資於安全功能的開發以及平台的增強，以開拓新的市場管道和成長動力。本季度，我們宣布我們的雲端安全資訊和事件管理 (SIEM) 解決方案現已納入 Sumo Logic FedRAMP 中等安全等級產品組合。憑藉此項認證，Sumo Logic 成為首個能夠為公共部門機構提供本地和雲端環境洞察的雲端原生 SIEM 解決方案，協助我們不斷拓展在公共部門的市場份額。

Additionally, we continued our commitment and focus on our DevSecOps community and end-user practitioners. This quarter, we hosted our sixth annual user conference, Illuminate, a premier global education and community event that brought together customers with thought leaders in IT operations, development and operations, security and more. Besides the free training certifications and best practices content that we deliver to Illuminate, we also continue to support the broader open source community via contributions to open telemetry initiatives. I'm extremely proud of the highly differentiated solutions that we have to offer in a single platform that is recognized by customers and industry experts alike and I feel that our portfolio offerings have never been stronger.

此外，我們持續致力於服務DevSecOps社群和終端用戶從業人員。本季度，我們舉辦了第六屆年度用戶大會Illuminate，這是一場全球頂尖的教育與社群盛會，匯集了客戶與IT維運、開發維運、安全等領域的思想領袖。除了在Illuminate大會上提供的免費培訓認證和最佳實踐內容外，我們還透過參與開放遙測計劃，持續支持更廣泛的開源社群。我為我們能夠在一個平台上提供高度差異化的解決方案而感到無比自豪，這些解決方案獲得了客戶和行業專家的一致認可，我認為我們的產品組合從未如此強大。

Before concluding, I'd like to welcome Timothy Youngblood to our Board of Directors as we further our efforts to help CISOs and organizations of all sizes to address the increasing cybersecurity challenges with digital transformation and cloud migrations. Tim has extensive cyber experience and a deep understanding of challenges faced by his fellow CISOs, and we are super excited to have him join the Board.

在結束發言之前，我謹代表董事會歡迎 Timothy Youngblood 加入我們。我們將繼續努力，協助首席資訊安全長 (CISO) 和各種規模的組織應對數位轉型和雲端遷移帶來的日益嚴峻的網路安全挑戰。 Tim 擁有豐富的網路安全經驗，對其他 CISO 面臨的挑戰有著深刻的理解，我們非常高興他能加入董事會。

Now in summary, our industry-leading cloud-native platform has never been stronger, and we continue to deliver improved results on both the top and bottom line as we drive towards the commitments we've made on the path to profitability and positive cash flow.

總而言之，我們領先業界的雲端原生平台從未如此強大，我們不斷提高營收和利潤，朝著獲利和正現金流的目標邁進，並持續取得更好的業績。

I'm extremely proud of our continued progress and results we have achieved so far throughout the first 3 quarters of our fiscal year. I would like to thank all of our employees for their continued dedication and passion to help us innovate, drive continued improvements in our go-to-market efforts; and lastly, commitment to increase our operational rigor.

我為我們在本財年前三個季度取得的持續進展和成果感到無比自豪。我要感謝所有員工的持續奉獻和熱情，正是他們的努力幫助我們不斷創新，推動市場推廣工作的持續改進；最後，也要感謝他們致力於提升我們的營運效率。

The impact of these collective efforts can be seen through the significant efficiency improvements from our initial guidance at the beginning of the fiscal year. With that, I'd now like to turn it over to Stewart Grierson, our Chief Financial Officer, who'll provide more details on our strong financial results in Q3 and our outlook for Q4 as well as our fiscal year.

這些集體努力的成效體現在效率的顯著提升上，與我們年初的預期相比，實屬不易。接下來，我將把發言權交給財務長史都華‧格里爾森，他將詳細介紹我們第三季強勁的財務業績以及對第四季和本財年的展望。

Thanks, Ramin, and thanks, everyone, for joining us on the call. I'd like to start with a brief summary of the financial highlights for the quarter and then go into more detail on each topic.

謝謝拉明，也謝謝各位參加本次電話會議。我首先想簡要總結本季的財務亮點，然後再詳細討論每個主題。

First, as Ramin mentioned, we've continued to deliver strong top line results with Q3 year-over-year revenue growth of 27% and ARR growth of 22%; second, we have continued to deliver our commitment to more efficient growth. In cost of sales, we executed some focused initiatives to drive efficiencies in our cloud infrastructure and operations, resulting in a reduction in cost of revenue from the prior quarter.

首先，正如拉明所提到的，我們持續保持強勁的營收成長，第三季營收年增27%，年度經常性收入（ARR）年增22%；其次，我們繼續履行對更有效率成長的承諾。在銷售成本方面，我們實施了一些重點舉措，以提高雲端基礎設施和營運效率，從而降低了營收成本，較上一季下降。

These efforts, combined with the strong revenue in the quarter resulted in gross margins of 73%. In addition, as discussed in prior calls, we are executing on our revised go-to-market strategy and these actions are starting to pay off, resulting in improved operating performance. To recap, under Lynne Doherty's leadership, we segmented our sales team into a hunter-farmer model, implemented a channel-first strategy, brought in new sales leaders and up-leveled our talent to better fit this new model.

這些努力，加上本季強勁的營收，使得毛利率達到了73%。此外，正如我們在先前的電話會議中討論過的，我們正在執行修訂後的市場推廣策略，這些舉措已開始見效，並帶來了營運績效的提升。簡而言之，在Lynne Doherty的領導下，我們將銷售團隊劃分為「獵手型-耕耘型」模式，實施了通路優先策略，引進了新的銷售領導者，並提升了人才水平，以更好地適應這一新模式。

The result has been a rationalization of the sales force while driving productivity gains and maintaining growth. We have consciously reduced discretionary spend and overall hiring across all organizations in order to bring our cost structure more in line with our long-term operating plan.

最終，我們實現了銷售團隊的精簡，同時提高了生產效率並保持了成長。我們有意識地削減了所有部門的自由支配支出和整體招聘規模，以使成本結構更加符合我們的長期營運計劃。

The result was Q3 operating margins of negative 7% of revenue, a significant improvement from the midpoint of our guidance of negative 23.5%. These results reflect our commitment to driving more efficient growth, as we execute on the path to profitability we shared with you at our Investor Day on September 20.

第三季營業利益率為-7%，較我們先前預期的-23.5%的中位數有了顯著改善。這項業績反映了我們致力於推動更有效率成長的決心，也反映了我們正朝著9月20日投資者日上與各位分享的獲利目標穩步邁進。

As mentioned on our last call, we believe ARR is the best leading indicator of growth in a SaaS business. We ended the quarter with ARR of $298.9 million, representing 22% year-over-year growth. Our ARR is impacted by the reduced number of total sales reps and ramp sales reps from the changes we've driven in the sales organization. While these efforts are delivering better sales efficiency, it will take time for the sales organization to ramp and reach full productivity.

正如我們在上次電話會議中所提到的，我們認為年度經常性收入 (ARR) 是 SaaS 企業成長的最佳領先指標。本季末，我們的 ARR 為 2.989 億美元，年增 22%。由於我們對銷售組織進行了調整，導致銷售代表總數減少，以及新入職的銷售代表人數增加，這影響了我們的 ARR。雖然這些措施提高了銷售效率，但銷售組織需要時間才能全面恢復並達到最佳狀態。

As previously discussed, the benefit of these changes will not be linear in nature with greater impact as we progress into the second half of FY '24 and beyond. Our $100,000-plus ARR customers are foundational to our ARR growth. In Q3, the number of $100,000-plus ARR customers grew 14% year-over-year.

如前所述，這些變革帶來的益處並非線性成長，其影響將在2024財年下半年及以後逐漸顯現。年經常性收入（ARR）超過10萬美元的客戶是我們ARR成長的基石。第三季度，年經常性收入超過10萬美元的客戶數量年增14%。

While the incremental count of these customers was not as significant as in prior quarters, their relative contribution to ARR was consistent as our larger customers contributed significantly to the growth this quarter. As expected, our dollar-based net retention was consistent at 115% for the third quarter in a row. This remains a significant improvement from the prior year as we improved both our expansion and retention rates.

雖然新增客戶數量不如前幾季顯著，但他們對年度經常性收入 (ARR) 的貢獻保持穩定，因為我們的大客戶在本季度對成長做出了顯著貢獻。如預期，我們以美元計價的淨留存率連續第三個季度維持在 115%。這較上年同期有顯著提升，因為我們提高了客戶拓展率和留存率。

We do expect Q4 net retention rates to be a few percentage points lower given some known Q4 downsizing driven by budgetary pressures as some customers look to reduce spend in this uncertain macro environment.

鑑於目前宏觀環境不明朗，有些客戶為了應對預算壓力而尋求減少支出，我們預期第四季淨客戶留存率將下降幾個百分點。

Turning to billings. Calculated billings for the trailing 12-month period was $311.7 million, up 18% year-over-year. Recall that we look at calculated billings over a trailing 12-month period as this metric can fluctuate from quarter-to-quarter due to the timing of our renewals and variances in billing schedules, which was particularly true this quarter for some of our larger customers. Remaining performance obligation, or RPO, remains healthy at $354.9 million, representing a year-over-year increase of 21%.

接下來是帳單金額。過去12個月的計算帳單金額為3.117億美元，較去年同期成長18%。需要注意的是，我們採用的是過去12個月的計算帳單金額，因為該指標會因續約時間和帳單結算週期的變化而出現季度波動，尤其本季部分大客戶的情況更為明顯。剩餘履約義務（RPO）維持良好狀態，為3.549億美元，年增21%。

Now I'll review the income statement in more detail. As a reminder, unless otherwise noted, all metrics are non-GAAP. As previously stated, total Q3 revenue increased to $79 million, up 27% year-over-year. We once again saw better-than-expected linearity in the quarter, a positive indicator of the improved rigor and discipline in the sales organization. In addition, there were some upgrades in the quarter with associated contract revisions resulting in moderate revenue acceleration in the quarter.

現在我將更詳細地分析損益表。需要提醒的是，除非另有說明，所有指標均為非GAAP指標。如前所述，第三季總營收成長至7,900萬美元，年增27%。本季我們再次看到業績線性成長優於預期，顯示銷售團隊的嚴謹性和紀律性有所提升。此外，本季部分產品升級以及相關的合約修訂也推動了本季營收的適度成長。

Q3 gross margin was 73%, which was a few percentage points better than the prior quarter. The improvement was largely driven by several focused initiatives to lower our cloud infrastructure costs. We expect Q4 gross margins to be in the 72% to 73% range as we sustain the savings from these initiatives.

第三季毛利率為73%，較上一季略有提升。這項成長主要得益於我們為降低雲端基礎設施成本所採取的多項重點措施。我們預計，隨著這些措施帶來的成本節約持續下去，第四季毛利率將在72%至73%之間。

Longer term, we expect gross margins in the mid-70% plus range as we drive efficiencies in our cloud infrastructure and operations. With regards to operating expenses, we have continued to rigorously scrutinize hiring and discretionary expenses. By the end of this fiscal year, we will have eliminated roughly $27 million in expenses or approximately 9% from our original plan.

從長遠來看，隨著我們不斷提升雲端基礎設施和營運效率，毛利率預計將達到70%以上。在營運支出方面，我們持續嚴格審查招聘和可自由支配的支出。到本財年末，我們將削減約2,700萬美元的支出，約佔原計畫的9%。

As previously mentioned, in Q3, we reduced operating expenses across all functions from the prior quarter. While we expect to modestly increase our operating expenses in Q4 as we add capacity and sales, we also remain cognizant of the greater uncertainty caused by the macro environment, and we'll invest cautiously.

如前所述，第三季我們所有職能部門的營運費用均較上一季下降。雖然我們預計第四季度隨著產能和銷售額的成長，營運費用將略有增加，但我們也意​​識到宏觀環境帶來的更大不確定性，因此我們將謹慎投資。

As stated previously, our Q3 operating margin was negative 7% driven by revenue outperformance, improvements in gross margin and careful management of operating expenses. Net loss in the quarter was negative $4.4 million or negative $0.04 per diluted share based on approximately 119.1 million weighted average diluted shares outstanding.

如前所述，受營收超預期、毛利率提升以及營運費用有效控制的影響，我們第三季的營業利潤率為-7%。本季淨虧損為440萬美元，即每股虧損0.04美元（以約1.191億股加權平均稀釋後流通股計算）。

Turning to our balance sheet and cash flow. We remain well capitalized and ended the quarter with $342.1 million in cash and marketable securities and no debt. Free cash flow in the quarter was negative $9.1 million or negative 12% of revenue. As we've shared previously, given the variability of free cash flow from quarter-to-quarter, we recommend looking at free cash flow and free cash flow margin on an annual basis. We expect to end the year with free cash flow margin of approximately negative 10%.

接下來來看看我們的資產負債表和現金流量。我們資本充足，本季末持有現金及有價證券3.421億美元，且無任何債務。本季自由現金流為負910萬美元，佔營收的-12%。正如我們先前所述，鑑於自由現金流存在季度波動，我們建議以年度為單位來檢視自由現金流和自由現金流利潤率。我們預計全年自由現金流利潤率約為-10%。

We also expect to continue to deliver improvements in free cash flow margin in the future as we focus on driving more efficient growth.

我們預計未來將繼續提高自由現金流利潤率，因為我們將專注於推動更有效率的成長。

Turning to guidance. As a reminder, we believe that it is more relevant to measure the growth of our business on a full year basis given potential variability from quarter-to-quarter. The macroeconomic environment continues to create a higher degree of uncertainty. While we did not experience a material impact to our business in Q3, we are seeing increased scrutiny over budgets and buying decisions.

關於業績指引。再次提醒，鑑於季度間可能存在的波動，我們認為以全年為基準衡量業務成長更為恰當。宏觀經濟環境持續帶來較高的不確定性。儘管第三季我們的業務並未受到實質影響，但我們注意到市場對預算和採購決策的審查力度正在增加。

We also believe this environment and the associated uncertainty will progress through Q4 and into next fiscal year. Despite this backdrop, we believe that our offering is more resilient than most as we enable teams to work more efficiently, allowing them to accomplish more with fewer resources.

我們也認為這種環境及相關的不確定性將持續到第四季乃至下一個財年。儘管如此，我們相信我們的產品比大多數產品更具韌性，因為我們能夠幫助團隊更有效率地工作，讓他們以更少的資源完成更多的工作。

The need to deliver reliable and secure digital experiences for mission-critical applications will continue to be a top priority for our customers and the broader market. For the full fiscal year 2023, we expect total revenue of $298 million to $299 million, representing 23% year-over-year growth.

為關鍵任務型應用提供可靠且安全的數位體驗，仍將是我們的客戶和整個市場的首要任務。我們預計2023財年總營收將達到2.98億美元至2.99億美元，年增23%。

Non-GAAP operating margin of negative 16% to negative 15% and non-GAAP loss per share of negative $0.36 to negative $0.35 on approximately 117.5 million weighted average shares outstanding. For the fourth quarter, we expect total revenue of $77 million to $78 million, representing 15% to 16% year-over-year growth. Non-GAAP operating margin of negative 14% to negative 13% and non-GAAP loss per share of negative $0.09 to negative $0.08 on approximately 120.5 million weighted average shares outstanding.

預計第四季非GAAP營業利益率為-16%至-15%，非GAAP每股虧損為-0.36美元至-0.35美元，加權平均流通股約1.175億股。我們預計第四季總營收為7,700萬美元至7,800萬美元，年增15%至16%。預計第四季非GAAP營業利益率為-14%至-13%，非GAAP每股虧損為-0.09美元至-0.08美元，加權平均流通股約1.205億股。

In summary, we are pleased with our continued strong execution on both our top and bottom line priorities. We remain committed to delivering more efficient growth while accelerating our path to profitability as we navigate this uncertain macroeconomic environment. Our unified cloud-native platform for reliability and security continues to resonate with our customers as more customers are seeking to provide best-in-class digital experience to their end users.

總而言之，我們對在營收和利潤兩方面持續取得的強勁業績感到滿意。我們將繼續致力於提高成長效率，並在當前充滿不確定性的宏觀經濟環境下加快獲利的步伐。我們統一的雲端原生平台兼具可靠性和安全性，持續受到客戶的青睞，因為越來越多的客戶希望為其終端用戶提供一流的數位體驗。

With that, Ramin and I are happy to take any of your questions. Operator?

那麼，我和拉明很樂意回答您提出的任何問題。接線生？

(Operator Instructions)

（操作說明）

And our first question comes from the line of Kamil Mielczarek with William Blair.

我們的第一個問題來自 Kamil Mielczarek 和 William Blair 的對話。

Congrats on the strong quarter. Several of your peers have announced plans to slow down hiring. Can you provide more detail on how you're thinking about headcount changes going forward? Are you playing more rationalization or given the initial stats of the Hunter-Farmer structure, would you be adding to the sales organization?

恭喜貴公司本季業績強勁。一些同行已經宣布計劃放緩招聘。能否詳細說明一下貴公司未來在人員調整上的想法？您會採取更合理的人員配置策略，還是會根據獵人-農夫式銷售結構的初步數據，考慮擴充銷售團隊？

Kamil, we're actually, as I said in the prepared remarks, we'll be looking to add capacity to the sales organization. So we're down year-over-year. Obviously, as we've made the changes, we want to make sure we have the right people in the organization.

卡米爾，正如我在事先準備好的演講稿中所說，我們實際上正在尋求增加銷售團隊的人員。所以，我們的人員配置較去年同期有所下降。顯然，在我們進行這些調整的同時，我們希望確保團隊中擁有合適的人才。

But we will always balance hiring with continued view to productivity gains. But our expectation is to add capacity in the sales work.

但我們會始終在招募和持續提升生產力之間取得平衡。我們預計會增加銷售方面的人才儲備。

Got it. That's helpful. And I realize that ARR is the right metric to focus on, but there is a bit of a divergence between revenue, ARR and billings growth. Can you help us bridge the gap between these metrics? And what's driving the strong revenue acceleration.

明白了，這很有幫助。我知道ARR是應該重點關注的指標，但收入、ARR和帳單成長之間存在一些差異。您能幫我們理清這些指標之間的差異嗎？以及是什麼因素推動了營收的強勁成長？

Yes. So I think as we've shared, and I think you're right, ARR is the best metric to look at in terms of kind of the leading indicator of growth. And so as we have made the changes in the sales org capacity is down in particular ramp capacity is down, and that does have an impact in ARR, and that's what you're seeing in the numbers. And then revenue is a trailing indicator in a SaaS business.

是的。正如我們之前討論過的，而且我認為你說得對，ARR（年度經常性收入）是衡量成長的最佳領先指標。由於我們對銷售組織進行了調整，尤其是銷售能力（包括快速反應）有所下降，這確實會對ARR產生影響，而這正是你在數據中看到的。在SaaS業務中，營收則是落後指標。

And so we're getting the benefit of the strength in the prior quarters. As I mentioned, there was some very moderate sort of impact this quarter on some revenue acceleration, which helped with the beat, although we were strong -- we were glad of the strong beat regardless, but that's the dynamic that you're seeing.

因此，我們受益於前幾季的強勁表現。正如我所提到的，本季營收成長受到一定程度的抑制，這有助於我們實現超預期，儘管我們整體業績依然強勁——無論如何，我們都對超預期感到高興，但這就是你目前看到的市場動態。

From a billings perspective, just to touch on that one. We've talked about this in the past. We will have variability from quarter-to-quarter. And some of that's got to do with billing schedules. And so one of the comments I made was we did see this quarter, a number of our larger deals had billing schedules that were -- while they were 1 or multiyear contracts, some of the billing schedules were less than 1 year in duration. So they were either quarterly or semiannual and so that can impact billings -- the perspective of billings growth year-over-year.

從帳單的角度來看，我們之前也討論過這個問題。每季的帳單金額都會有所波動。部分原因在於帳單結算週期。我之前提到過，本季我們發現，一些較大的交易雖然是一年或多年的合同，但有些交易的結算週期不到一年。這些結算週期要么是按季度結算，要么是按半年結算，因此可能會影響賬單金額——也就是同比賬單增長。

Our next question comes from the line of Matt Hedberg with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的 Matt Hedberg。

Yes. This is actually Matt Swanson on for Matt. I guess this would kind of be for both of you, but it's really impressive to see the DBNRR hold consistent for 3 quarters given how challenging the macro has been. Could you just kind of expand, I guess, on what you think this means about how your customers are seeing your platform? And then given the challenging macro, one of the trends we've heard a lot this quarter is about consolidation to fewer vendors. Do you feel like you're seeing that onto the platform as well?

是的。我是Matt Swanson，替Matt發言。我想這個問題其實也適用於你們兩位，但考慮到宏觀經濟情勢如此嚴峻，DBNRR能夠連續三季保持穩定確實令人印象深刻。能否請你們詳細談談，你們認為這反映了顧客對你們平台的看法嗎？另外，鑑於宏觀經濟情勢嚴峻，我們本季經常聽到的一個趨勢是，企業正在向更少的供應商整合。你們覺得這種趨勢也反映在你們的平台上了嗎？

This is Ramin and I'll start. I think the first part of that answer is pretty simple. We are really well positioned in 2 very large markets that are growing, both on the reliability side and security. I think uniquely, we're well positioned even more so because of that single unified platform, that not only meets the technology requirements, but also the business needs in this circumstance and macroeconomics uncertainty.

我是拉明，我先來。我認為答案的第一部分很簡單。我們在兩個成長迅速的大型市場中都佔據了非常有利的地位，無論是在可靠性還是安全性方面。我認為，我們獨特的優勢在於我們擁有一個統一的平台，它不僅滿足技術要求，還能滿足當前情勢和宏觀經濟不確定性下的業務需求。

So more specifically, a lot to do with the tiered analytics and licensing model. Now the other part of your question in terms of a single platform and consolidation. Yes, we see elements of that. But honestly, there's still a lot of best of breed that's out there, a lot of homegrown solutions. And then a lot of other commercial products that just don't meet the scale, let alone economic needs that are ripe for replacement and displacement by Sumo.

更具體地說，這與分層分析和授權模式密切相關。至於您問題的另一部分，關於單一平台和整合，是的，我們看到了這方面的一些因素。但說實話，目前市面上仍有許多優秀的產品，許多自主研發的解決方案。此外，還有許多其他商業產品無法滿足規模需求，更不用說經濟效益了，它們完全可以被 Sumo 取代。

That's super helpful. And then congrats on the Cloud SIEM and the FedRAMP certification. Do you mind just commenting a little bit on how federal was in general for the quarter?

這非常有幫助。恭喜你獲得雲端安全資訊和事件管理 (SIEM) 以及 FedRAMP 認證。能否簡單談談本季聯邦業務的整體情況？

So our public sector business is something we've been investing in more now on the go-to-market side as we've now achieved, obviously, FedRAMP moderate for our Cloud SIEM. We've had capabilities for logging there, and we've expanded that.

因此，我們現在加大了公共部門業務的市場推廣投入，因為我們的雲端安全資訊和事件管理 (SIEM) 系統已經達到了 FedRAMP 中等標準。我們之前就具備日誌記錄功能，現在我們已經擴充了這項功能。

And so now we're the only cloud-native solution that's available through that means and channel. And so a lot of effort will be focused on our channel partners driving that public sector business.

因此，目前我們是唯一一家能夠透過這種管道和方式提供的雲端原生解決方案供應商。所以，我們將投入大量精力與通路夥伴合作，推動公共部門業務的發展。

Our next question comes from the line of Derrick Wood with Cowen.

我們的下一個問題來自德里克·伍德和考恩的連線。

It's Andrew on for Derrick. Congrats on the strong quarter. Stewart, I think the $7 million revenue beat was one of, if not your largest beat ever, and you called out that there was some revenue acceleration there, but any quantification of what that helped drive the beat would be great. And then is that kind of the main driver of the Q4 guide down sequentially, which I think normally would be up sequentially?

安德魯代替德里克發言。恭喜你們本季業績強勁。斯圖爾特，我認為700萬美元的營收超預期是你們有史以來最大的超預期之一，甚至可能是最大的。你也提到營收成長有加速，但能否量化一下究竟是什麼因素促成了這個超預期？另外，這是否也是導致第四季業績預期環比下調的主要原因？我通常認為第四季度業績預期應該是環比上調才對。

Yes. Sure, Andrew. So just to quantify the Q3, not the beat, but the impact of the acceleration is about $1.5 million of the overachievement. So obviously, it was a nice clean beat irrespective of that, but that definitely helped with the -- to your point, larger than usual beat that we saw. And I think as you look at Q4, we signaled as early as last quarter that there was going to be -- that number will be smaller. We have raised guidance.

是的，當然，安德魯。為了量化第三季業績，不是指業績超預期，而是指加速成長帶來的影響，大約是超額完成的150萬美元。顯然，即便沒有加速成長，第三季的業績依然非常出色，而加速成長無疑也促成了——正如你所說，我們看到的業績超預期幅度比往常更大。我認為，展望第四季度，我們早在上個季度就已表明，業績超預期的幅度將會更小。我們已經提高了業績預期。

And that's obviously with the visibility we have, but also being cognizant of the environment we're in and the uncertainty. But I think raising -- we raised guidance effectively by $2 million from where we were 3 months ago.

這顯然是基於我們目前掌握的信息，但也考慮到我們所處的環境和不確定性。但我認為，我們實際上將預期營收比三個月前提高了200萬美元。

And just lastly, I think just to -- we've talked about variability from quarter to quarter as well. And obviously, what we've always focused folks on is the annual growth. And so -- now we're guiding to 23% annual growth versus the 19% we were at last year.

最後，我想補充一點——我們之前也討論過季度間的波動。顯然，我們一直以來都更關注年度成長率。因此，我們現在預計年度成長率為23%，高於去年的19%。

Yes. Great. And then Ramin, APAC in Europe were pretty strong last quarter. Just wanted to check the performance was this quarter and how pipelines are looking there for Q4?

是的，太好了。拉明，亞太地區和歐洲上季表現相當強勁。我只是想了解本季的業績，以及第四季的銷售管道狀況如何？

Yes. International combined was strong again. We've seen direct business there as well as the partner business continue to perform. It's really about coverage and capacity on the direct side. And then time in the saddle with a lot of new partners that are VARs or disties as well as MSPs as we look to grow that segment of our business. So that's a continued effort of investment for us going forward. I think it was north of 23% or 22% contribution international for last quarter, which was more than 50% growth year-over-year.

是的。國際業務整體表現依然強勁。我們看到，無論是直銷業務還是合作夥伴業務，都持續保持良好勢頭。直銷業務的關鍵在於覆蓋範圍和產能。同時，我們也投入大量時間與眾多新的合作夥伴（包括加值經銷商、經銷商以及託管服務提供者）合作，以期拓展這部分業務。因此，未來我們將繼續加大對國際業務的投資。我認為上個季度國際業務的貢獻率超過了23%或22%，較去年同期成長超過50%。

Our next question comes from the line of Gray Powell with BTIG.

我們的下一個問題來自 BTIG 的 Gray Powell。

Congratulations on the good set of numbers here. So yes, a couple on my side, and I was really just hoping to square the ARR and revenue comments. So specifically, how should we think about the sequential growth in ARR in Q4. It just seems like you can probably get pretty close to your Q4 revenue guidance with little to no growth, the Q3 and the ARR run rate. And then I know you mentioned a customer downsizing. So I'm just trying to just think through those things and just basically verify that I'm doing the math correctly here.

恭喜你拿到了這麼好的業績數據。是的，我這邊也有一些疑問，主要是想弄清楚ARR和營收的問題。具體來說，我們該如何看待第四季ARR的環比成長？感覺即使第三季和ARR的運行率幾乎沒有成長，你第四季的營收目標應該也能基本實現。我知道你提到過客戶數量有減少。所以我想仔細分析這些因素，看看我的計算是否正確。

Sure. I'll take this one, Gray. So Stewart, obviously. Obviously, we don't give ARR guidance at this point. But I think just to give you a little maybe color and perspective I think I would look at kind of the capacity we have, right? We've been down both year-over-year in absolute sales reps and then also from a ramp perspective. That's what has the impact on ARR in the near term, which is why we've talked about how as those ramps -- as those reps continue to be onboard and ramp, the impact gets greater as we get into FY '24, particularly in the back half.

當然。我來回答這個問題，格雷。所以，斯圖爾特，很明顯，我們目前不提供年度經常性收入（ARR）的預測。但我想，為了給你一些更具體的資訊和視角，我會看看我們目前的產能狀況，對吧？我們的銷售代表數量較去年同期下降，從新員工入職到上崗的過渡期也是如此。這在短期內會對ARR產生影響，所以我們之前討論過，隨著這些新員工陸續入職並逐步上崗，這種影響在2024財年會越來越大，尤其是在下半年。

So that's how to think about ARR. From a revenue perspective, I think our philosophy has remained consistent on how we're guiding to revenue is we put out numbers that we have a high conviction that we can deliver on. Obviously, you build a little in and given the uncertainty that we have in this environment, but that's how we think about revenue guidance.

這就是理解年度經常性收入 (ARR) 的方式。從收入角度來看，我認為我們在收入預測方面的理念始終如一：我們發布的都是我們非常有信心能夠實現的數字。當然，考慮到當前環境的不確定性，我們會預留一些餘地，但這就是我們制定收入預測的方式。

Okay. That's really helpful. And then in terms of like the assumptions for Q4, are you assuming like a stable macro environment versus Q3? Do you think worsen? Just kind of curious what sort of like underlying your view of the world.

好的，這很有幫助。那麼關於第四季的假設，您認為宏觀環境會像第三季一樣保持穩定嗎？還是會惡化？我只是好奇您對世界情勢的看法是怎麼樣的。

Yes. Listen, I think we're seeing more discussions around buying, decisions and budgets, right, than we saw even as we were in Q3. So we're definitely seeing more scrutiny. And so we've seen that, I would say, tick up from where it was in Q3. And I think we expect that to continue into Q4 and into next year.

是的。聽著，我認為我們現在看到的關於購買、決策和預算的討論比第三季度要多得多，對吧？所以我們肯定看到了更多檢視。因此，我認為這種情況比第三季加劇。而且我認為我們預計這種情況會持續到第四季和明年。

And our next question comes from the line of Sanjit Singh with Morgan Stanley.

下一個問題來自摩根士丹利的桑吉特辛格。

Congrats on the solid execution this quarter. Stewart, I guess my question was really around the really great sort of operational efficiencies you guys have been materializing the business. If I look at sort of OpEx, I think it's down sequentially quarter-over-quarter. Then I think 2 of the 3 lines in OpEx, R&D and G&A are down year-over-year. Sales and marketing is sort of slightly up.

恭喜你們本季業績出色。斯圖爾特，我的問題其實是關於你們在營運效率方面取得的顯著提升。就營運支出而言，我認為它環比下降。然後，我認為營運支出中的三項支出中，研發和一般及行政費用這兩項同比下降。銷售和行銷支出則略有成長。

I heard you loud and clear on the need to invest on sales and marketing. I guess my broader question is, as we look over the next 4 to 5 quarters, is this pace of efficiency sort of sustainable? How structural are these efficiencies that you're seeing within gross margin, R&D, G&A.

我完全理解您關於需要增加銷售和行銷投入的必要性。我想問的是，展望未來四到五個季度，這種效率提升的速度是否可持續？您在毛利率、研發和一般管理費用方面看到的這些效率提升，其結構性影響有多大？

Should we assume that, that sort of sustains going forward, realizing that there needs to be more investment in sales and marketing as you ramp go-to-market and product. Just want to get a sense of how long-lasting some of these margin improvements can be going forward?

我們是否應該假設這種趨勢能夠持續下去，同時意識到隨著市場推廣和產品開發的推進，需要加大對銷售和行銷的投入？我只是想了解一下，這些利潤率的提升能夠持續多久？

Yes. So our expectation, Sanjit, is obviously, as I said, we're going to invest in sales capacity given we are lower -- listen, we need to invest in across the business as we scale. We recognize that we needed to improve our op loss profile. We've still got work to be done there, obviously, as we laid out a picture of driving the company towards first cash flow breakeven and operating margin breakeven and we're trying to accelerate that path.

是的。桑吉特，正如我剛才所說，我們的預期顯然是，鑑於我們目前的規模較小，我們將投資於銷售能力——聽著，隨著業務規模的擴大，我們需要在整個業務範圍內進行投資。我們意識到我們需要改善營運虧損狀況。顯然，我們在這方面還有很多工作要做，因為我們已經制定了公司實現現金流和營運利潤率首次收支平衡的目標，並且我們正在努力加快這一進程。

And so we're going to evaluate this every quarter. It's an ongoing thing where we're looking at hiring plans. We look at where do we hire. We look at discretionary spend, and so obviously, while we had a big impact this quarter and it's pretty unusual for a business that's growing like ours be able to take down expenses quarter-over-quarter, I don't think you should continue to expect that. But certainly, we expect to have the better leverage and efficiencies relative to revenue as we scale this into over the next several quarters.

因此，我們將每個季度都進行評估。我們會持續關注招聘計劃，考慮招聘地點，以及可自由支配的支出。顯然，雖然本季我們取得了顯著成效，而且對於像我們這樣快速發展的企業來說，能夠逐季降低成本實屬罕見，但我認為大家不應該繼續抱持這樣的期望。不過，隨著未來幾季業務規模的擴大，我們預計在營收方面將擁有更高的槓桿率和效率。

And so big picture, the mantra here is that the team is going to invest behind revenue versus ahead of revenue, which had been more of the case in the past couple of years.

因此，從大局來看，這裡的原則是團隊將投資於收入之後的項目，而不是投資於收入之前的項目，而過去幾年更多的是投資於收入之前的項目。

I would say that's true. Obviously, I think the most important thing there that we evaluate is both the environment we're all operating in as well as the productivity that we're seeing in the sales force, right? And so it's constantly evaluating those. And that will dictate the pace at which we invest in sales capacity.

我覺得沒錯。顯然，我認為我們評估的最重要的因素是我們所處的營運環境以及銷售團隊的生產力，對吧？所以我們會不斷評估這些因素。而這將決定我們投資銷售能力的速度。

Understood. That's very clear. And then Ramin, on the -- or maybe this might be a question for you, Stewart, as well. On some of these customer downsells. To the extent that is happening, is there a profile of customers that where that's occurring more versus less, whether it's a market segment, mid-market, large enterprise versus SMB or in particular industries or customers that may have really expanded significantly with Sumo Logic in the past couple of years, they may be going through a digestion period now. Is there any sort of patterns that you are picking up in some of the customers that are indicating that they may be looking to rationalize some of their spend going forward.

明白了。非常清楚。然後，拉明，關於——或者這個問題也可能應該問你，史都華。關於一些客戶的降價銷售。如果這種情況確實存在，是否存在某些客戶群更容易出現降價銷售，而另一些客戶則較少出現這種情況？無論是在市場區隔、中型市場、大型企業或中小企業，或是在特定產業或客戶群體中，哪些客戶在過去幾年透過 Sumo Logic 實現了顯著成長，他們現在可能正處於消化期。你是否注意到某些客戶身上存在某種模式，表示他們可能正在尋求合理化未來的支出？

Sanjit, I don't know if anyone is immune to what's going on out there. And if they are, I don't know how they're operating a business, right? I think as we look at the macro headwinds, there's also some macro tailwinds, right? And I think those companies that have similar tailwinds are continuing to invest, but just not at the pace that they're investing in before.

桑吉特，我不知道是否有人能完全不受當前局勢的影響。如果有，我也不知道他們是如何維持營運的，對吧？我認為，在看待宏觀經濟逆風的同時，也存在一些順風，對吧？我認為那些擁有類似順風的公司仍在繼續投資，只是投資速度不如以前了。

So the size of the upgrades or cross-sells may be temporarily reduced or the length of the contract, right? I think no one -- no particular vertical is better than another right now, to be honest. I think we've seen probably stronger contribution internationally than we originally thought, given everything going on with the war and the macroeconomic uncertainty, GDP, all that. I don't know how long that will persist, our business in the enterprise is continuing to progress as is in the mid-market segments. And we'll continue to as Stewart mentioned, moderate that investment as we see demand and kind of budgets dictate how we invest.

所以升級或交叉銷售的規模可能會暫時縮小，合約期限也可能縮短，對吧？說實話，我認為目前沒有哪個垂直領域比其他領域更有優勢。考慮到戰爭、宏觀經濟的不確定性、GDP等等因素，我認為我們在國際市場的貢獻可能比我們最初預想的還要強。我不知道這種情況會持續多久，但我們在企業級市場和中端市場的業務都在持續發展。正如史都華所提到的，我們將繼續根據市場需求和預算狀況來調整投資。

Got it. And that's very correct and makes a ton of sense.

明白了。你說得完全正確，也很有道理。

And our next question comes from the line of Blair Abernethy with Rosenblatt Securities.

我們的下一個問題來自 Rosenblatt Securities 的 Blair Abernethy。

Nice quarter, guys. Ramin, just want to dig in a little bit more on the channel side. Just in terms of the managed service providers, how are they performing in this macro and the cloud service providers that you've been working more closely with over the last couple of -- last year or so. I just want to get a sense of how the channel is performing for you now in the environment?

各位，這季業績不錯。拉明，我想更深入地了解一下頻道方面的情況。就託管服務提供者而言，他們在當前的宏觀環境下表現如何？還有你們過去兩年（或者說去年）一直密切合作的雲端服務供應商？我想了解你們目前的通路營運狀況。

Good to hear your voice. First, let me start by saying that we're in this transition to a channel-first strategy, right, meaning that we are trying to make sure all new opportunities involve in our -- actually transacted through a channel partner, whether that's a VAR, a disti or in a lot of cases, you're referring to an MSSP or an MSP.

很高興聽到您的意見。首先，我想說的是，我們正處於向通路優先策略的轉型階段，對吧？這意味著我們正在努力確保所有新的機會都透過通路合作夥伴進行交易，無論是加值經銷商 (VAR)、經銷商，還是在許多情況下，您提到的託管安全服務提供者 (MSSP) 或託管服務提供者 (MSP)。

Now to your question specifically about managed service providers, I think they're going to play an increasing role going forward, particularly because of labor shortages, the concerns around the breadth of security kind of risks and services of attack and the technologies that are insufficient that are continuing out there gives us a great opportunity to go sign up new ones as well as continue to expand and differentiate their businesses.

現在具體回答你關於託管服務提供者的問題，我認為他們未來將發揮越來越重要的作用，尤其是在勞動力短缺、安全風險和攻擊服務範圍不斷擴大以及現有技術不足的情況下，這為我們提供了一個絕佳的機會去簽約新的服務提供商，並繼續擴展和差異化他們的業務。

Last quarter, we did sign up some new MSSPs. We saw the contribution from channel, as I mentioned earlier, increase. Now we're seeing the pipeline being deal reg as well as opportunities from the channel being brought to Sumo start to increase versus solely the other way around. So those are all great indicators, but we have a lot more work to do.

上個季度，我們確實新增了一些託管安全服務提供者 (MSSP)。正如我之前提到的，渠道的貢獻增加。現在，我們看到，通路帶來的交易註冊和商機數量都在增加，而不僅僅是反過來。這些都是很好的跡象，但我們還有很多工作要做。

Okay. Great. And Stewart, just on the cloud -- the gross margins this quarter. Any other color you can give us on that what you were able to do on the cloud margin -- the gross margin? And is this -- should we be thinking of this as the new level?

好的，太好了。斯圖爾特，關於本季的毛利率，您能否再詳細解釋一下？毛利率方面您做得怎麼樣？我們是否應該把這個水平視為新的目標？

Yes. So Blair, I'm not going to get into the specifics as what we did. I mean there's lots of things you can do as you run a SaaS service in terms of optimizing your infrastructure costs and operations. And so we, as a team, looked at opportunities, and you saw those results in the current quarter. I signaled 72% to 73% gross margin for Q4 and so we have a number of initiatives that we're looking at. Some of them will take investment in order to drive the savings further down the road. And so obviously, our goal is to get back to the 75%-plus range over time. And so yes, I think we're going to build up towards that level and evaluate different things that we can do every quarter.

是的。布萊爾，我不會贅述我們具體做了什麼。我的意思是，在營運SaaS服務時，有很多方法可以優化基礎設施成本和營運。我們團隊一直在尋找機會，你們也在本季看到了成果。我預測第四季的毛利率在72%到73%之間，所以我們正在研究一些方案。其中一些需要投資，才能在未來進一步降低成本。顯然，我們的目標是最終將毛利率恢復到75%以上。是的，我認為我們會朝著這個目標努力，並且每個季度都會評估我們可以採取的不同措施。

Okay. Great. And one last quick one. Just any FX impact on the top line this quarter of note?

好的，太好了。最後一個問題。本季外匯交易對營收有影響嗎？

No. We price in U.S. dollars. So obviously, we do have -- I mean, obviously, that impacts the cost of the solution for folks internationally, but not a dynamic that we could point to having any meaningful impact at this point.

不，我們以美元定價。所以很顯然，這會影響國際用戶的解決方案成本，但就目前而言，我們無法指出這種影響會有任何實質作用。

And our final question comes from the line of Pinjalim Bora with JPMorgan.

最後一個問題來自摩根大通的 Pinjalim Bora。

This is Noah on for Pinjalim. Maybe just a quick follow-up on the sales reps. Could you maybe just talk about the rep productivity trend in the third quarter. And how that's heading into the fourth quarter?

這裡是Pinjalim的Noah。我想快速跟進一下銷售代表的情況。您能否談談第三季銷售代表的業績趨勢，以及第四季的前景？

Yes. I'm not going to give specifics, Noah, on the productivity gains. And when we sort of talked about it at our Investor Day, we're continuing to see, I'll say, just same levels. of productivity gains for the folks that we've been bringing on board.

是的。諾亞，我不會透露具體的生產力提升情況。我們在投資者日上也討論過這個問題，可以說，我們新招的員工的生產力提升水平仍然保持在同樣的水平。

And so we're very encouraged by the results. I feel like we've made the right moves in the sales organization to get it moving in a better direction. And we'll be -- obviously, we track this month-to-month and quarter-to-quarter as we move -- we expect to be able to drive further gains down the line.

因此，我們對這些結果感到非常鼓舞。我覺得我們在銷售組織方面採取的措施是正確的，使其朝著更好的方向發展。當然，我們會按月和按季度追蹤進展，並期望在未來取得更大的進步。

Got it. And then just for a follow-up question. Maybe based on your conversation with CIOs, how do you think the industry growth trends next year? Do you think they'll take a step down? Or do you think it will be more resilient.

明白了。還有一個後續問題。根據您與資訊長們的交流，您認為明年的產業成長趨勢如何？您認為成長會放緩嗎？還是會更具韌性？

To be honest, a lot of our CISO CIOs, it's all over the place. A lot of them are going through that finalization of budgets and planning now. I can tell you there's still a lot of demand and concern around continued investment in security, which we're well positioned for, but there's also the reality of shortage of staff, right? And so back to the MSSP conversation. So that's one area.

說實話，我們許多首席資訊安全官（CISO）和首席資訊長（CIO）的情況都比較混亂。他們現在都在忙著最終確定預算和規劃。我可以告訴你，大家對持續投資安全仍然有很多需求和擔憂，而我們在這方面也做好了充分的準備，但同時我們也面臨著人員短缺的現實問題，對吧？所以，我們又回到了託管安全服務提供者（MSSP）的話題。這是其中一個面向。

The second area is I think the effort around migrating of workloads to the cloud hasn't slowed down. I think the question really is how do I replace some of the traditional homegrown piecemeal parts that were stitched together with a consolidated platform is some of the conversations that we're having and leading to some great cross-sells and upsells as well as new opportunities.

第二個方面是，我認為將工作負載遷移到雲端的努力並沒有放緩。我認為真正的問題在於，如何用一個整合的平台來取代一些傳統的、零散的、自行開發的元件。我們正在討論這些問題，而這些問題也帶來了一些很棒的交叉銷售和向上銷售，以及新的機會。

Other than that, it comes down to people, process and technology decision as every CIO looks across their portfolio of spend and where they can drive X percent savings. And we think we're well positioned because we can help them save money as well as continue to innovate and drive agility and growth.

除此之外，最終取決於人員、流程和技術決策，因為每位資訊長都會審視其支出組合，並尋找可以節省多少成本的地方。我們認為我們擁有得天獨厚的優勢，因為我們不僅能幫助他們節省資金，還能持續創新，並推動敏捷性和成長。

And we have reached the end of the question-and-answer session. I'll now turn the call back over to management for closing remarks.

問答環節到此結束。現在我將把電話交還給管理階層，請他們作總結發言。

Wonderful. Thank you, again, everyone, for joining us today. In summary, our industry-leading cloud-native platform and my humble opinion has never been stronger. We're completely in control of the efforts this past quarter and our plans for the year to deliver efficient growth and efficiency improvements, particularly based on from our initial guidance earlier in the year. We'll continue to deliver improved results on both the top line and bottom line as we accelerate towards eventual cash flow breakeven and, of course, profitability.

太棒了！再次感謝各位今天蒞臨。總而言之，我認為我們業界領先的雲端原生平台從未如此強大。我們完全掌控著上個季度的各項工作，並製定了全年計劃，以實現高效增長和效率提升，尤其是在年初的業績指引下。我們將繼續在營收和利潤方面取得進步，加速實現最終的現金流收支平衡和獲利。

With that, I want to take a moment to thank all of our employees once again for their hard work, their dedication as well as everyone today for joining us on the call. Thank you very much, and happy holidays.

在此，我再次感謝所有員工的辛勤工作和敬業精神，也感謝今天所有參加電話會議的朋友。非常感謝，祝大家節日快樂！

And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，您可以斷開線路了。感謝您的參與。