SolarWinds Corp (SWI) 2023 Q3 法說會逐字稿

Good morning. My name is Jeannie, and I will be your conference operator today.

早安.我叫珍妮，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the SolarWinds Third Quarter 2023 Earnings Call. (Operator Instructions).

此時，我謹歡迎大家參加 SolarWinds 2023 年第三季財報電話會議。 （操作員說明）。

Tim Karaca, Group Vice President of Finance, you may begin your conference.

Tim Karaca，集團財務副總裁，您可以開始會議了。

Thank you. Good morning, everyone, and welcome to the SolarWinds Third Quarter 2023 Earnings Call. With me today are Sudhakar Ramakrishna, our President and CEO, and Bart Kalsu, our CFO.

謝謝。大家早安，歡迎參加 SolarWinds 2023 年第三季財報電話會議。今天與我在一起的有我們的總裁兼執行長 Sudhakar Ramakrishna 和我們的財務長 Bart Kalsu。

Following our prepared remarks, we will have a question-and-answer session. This call is being simultaneously webcast on our Investor Relations website at investors.solarwinds.com. You can also find our earnings press release and the summary slide deck, which is intended to supplement our prepared remarks during today's call.

在我們準備好的發言之後，我們將舉行問答環節。本次電話會議同時在我們的投資人關係網站 Investors.solarwinds.com 上進行網路直播。您還可以找到我們的收益新聞稿和幻燈片摘要，其旨在補充我們在今天的電話會議期間準備好的言論。

Please remember that certain statements made during this call are forward-looking statements, including those concerning our financial outlook, our market opportunities, our expectations regarding customer retention, our continued evolution to a subscription-first mentality and the timing of the phases of such evolution, our expectations regarding our partner ecosystem, the SEC enforcement action, the impact of the global economic and geopolitical environment on our business and our gross level of debt.

請記住，本次電話會議中所做的某些陳述均為前瞻性陳述，包括有關我們的財務前景、市場機會、我們對客戶保留的期望、我們向訂閱優先心態的持續演變以及這種演變階段的時間表的陳述、我們對合作夥伴生態系統的期望、美國證券交易委員會的執法行動、全球經濟和地緣政治環境對我們業務的影響以及我們的總債務水平。

These statements are based on currently available information and assumptions, and we undertake no duty to update this information except as required by law. These statements are subject to a number of risks and uncertainties, including the numerous risks and uncertainties highlighted in today's earnings release and our filings with the SEC. Copies are available from the SEC on our Investor Relations website. We will discuss various non-GAAP financial measures on today's call. Unless otherwise specified, when we refer to financial measures, we will be referring to non-GAAP financial measures.

這些聲明是基於目前可用的資訊和假設，除非法律要求，否則我們不承擔更新此資訊的義務。這些聲明受到許多風險和不確定性的影響，包括今天的收益報告和我們向 SEC 提交的文件中強調的眾多風險和不確定性。副本可從美國證券交易委員會的投資者關係網站上取得。我們將在今天的電話會議上討論各種非公認會計準則財務指標。除非另有說明，當我們提到財務指標時，我們將指的是非公認會計準則財務指標。

A reconciliation of the differences between GAAP and non-GAAP financial measures, and the definition of other financial metrics discussed on today's call are available in our earnings press release and summary slide deck on the Investor Relations page of our website.

公認會計原則和非公認會計原則財務指標之間的差異以及今天電話會議上討論的其他財務指標的定義可在我們網站投資者關係頁面上的收益新聞稿和摘要幻燈片中找到。

Finally, we note that the financial results discussed on today's call and in our earnings release are preliminary and pending final review by us and our external auditors and will only be final once we file our quarterly report on Form 10-Q.

最後，我們注意到，今天的電話會議和收益報告中討論的財務結果是初步的，有待我們和我們的外部審計師進行最終審查，只有在我們提交10-Q 表格季度報告後才會成為最終結果。

With that, I will now turn the call over to Sudhakar.

現在，我將把電話轉給蘇達卡爾。

Thank you, Tim, and good morning, everyone. Thank you for joining us today. As always, I'd like to thank our employees, customers, partners and shareholders for their ongoing commitment to SolarWinds. We delivered another strong quarter, once again beating our guidance across our key metrics, demonstrating the compelling value we deliver to customers and the strength of our business model.

謝謝蒂姆，大家早安。感謝您今天加入我們。一如既往，我要感謝我們的員工、客戶、合作夥伴和股東對 SolarWinds 的持續承諾。我們又實現了強勁的季度業績，在關鍵指標上再次超越了我們的指導，展示了我們為客戶提供的令人信服的價值以及我們業務模式的優勢。

I'm especially pleased with our team's execution across many aspects of our business resulting in top line growth while driving adjusted EBITDA that exceeded the high end of our guidance range, all in an uncertain macro environment.

我對我們的團隊在業務的許多方面的執行力感到特別滿意，從而實現了營收成長，同時推動調整後的EBITDA 超出了我們指導範圍的上限，所有這些都是在不確定的宏觀環境中實現的。

Third quarter results include strong subscription revenue and ARR growth, demonstrating the positive effect of our subscription-first strategy. Growing revenue and adoption from our observability solutions, coupled with continued product innovation, growth in the sales of our service management and database monitoring offerings. Continued strong customer retention, demonstrating our focused execution as well as the value proposition of our solutions and double-digit year-over-year adjusted EBITDA growth along with increased margins, highlighting the operating leverage in our business and our commitment to expense management and operating discipline.

第三季的業績包括強勁的訂閱收入和 ARR 成長，證明了我們訂閱優先策略的正面影響。我們的可觀測性解決方案的收入和採用率不斷增長，加上持續的產品創新、服務管理和資料庫監控產品的銷售成長。持續強勁的客戶保留率，展示了我們專注的執行力以及解決方案的價值主張，以及兩位數的同比調整後EBITDA 增長以及利潤率的提高，凸顯了我們業務的運營槓桿以及我們對費用管理和營運的承諾紀律。

I will now touch some of these highlights before turning the call over to Bart for more color on the quarter and our financial outlook for the balance of the year.

現在，我將談談其中的一些要點，然後再將電話轉給巴特，以了解有關本季度的更多資訊以及我們對今年剩餘時間的財務前景。

In Q3 2023, we delivered total revenues of $190 million, above the high range we provided, representing 6% growth year-over-year and our highest quarterly revenue growth since the first quarter of 2020. We continue to see the benefits of our subscription-first transformation and delivered third quarter subscription revenue growth of 39% and subscription ARR growth of 34%. This evolution to subscription is not only contributing to our overall improved financial performance and revenue predictability with more than 92% of recurring revenue, but we believe it enables us to deliver greater value to customers.

2023 年第三季度，我們的總收入達到 1.9 億美元，高於我們提供的最高範圍，同比增長 6%，是自 2020 年第一季以來的最高季度收入增長。我們繼續看到訂閱的好處-首次轉型，第三季訂閱營收成長39%，訂閱ARR 成長34%。這種向訂閱的演變不僅有助於我們整體改善財務績效和收入可預測性（佔經常性收入的 92% 以上），而且我們相信它使我們能夠為客戶提供更大的價值。

In the third quarter, our in-quarter maintenance renewal rates was 96%, and our trailing 12-month maintenance renewal rate is now 95%, up from 94% last quarter and 91% in the prior year. This increase is another reflection of the value of our solutions to our customers. We ended the third quarter of 2023 with 955 customers, who have spent more than $100,000 with us in the last 12 months, an increase of 8% over the comparable period in the previous year. These results are indicative of our focus on helping our customers reduce tools sprawl, reduce alert fatigue, and reduce costs while improving productivity.

第三季度，我們的季度維護續約率為 96%，過去 12 個月的維護續約率為 95%，高於上季的 94% 和上年度的 91%。這一增長再次體現了我們的解決方案對客戶的價值。截至 2023 年第三季度，我們有 955 名客戶在過去 12 個月內在我們這裡花費了超過 10 萬美元，比去年同期增長了 8%。這些結果顯示我們致力於幫助客戶減少工具蔓延、減少警報疲勞並降低成本，同時提高生產力。

We delivered an adjusted EBITDA of $85 million, representing an adjusted EBITDA margin of 45% and a 21% increase year-over-year driven by revenue growth and maintaining investment and expense discipline.

我們的調整後 EBITDA 為 8,500 萬美元，調整後 EBITDA 利潤率為 45%，在收入成長以及維持投資和費用紀律的推動下，年增 21%。

Our adjusted EBITDA margins are the highest quarterly results since the fourth quarter of 2020 for both adjusted EBITDA and adjusted EBITDA margins. The results testify to our progress towards continued robust growth and operating discipline.

我們的調整後 EBITDA 利潤率是自 2020 年第四季以來調整後 EBITDA 和調整後 EBITDA 利潤率的最高季度業績。結果證明了我們在持續強勁成長和營運紀律方面取得的進展。

Now turning to some business highlights from this quarter. I want to share updates on our product portfolio and partner ecosystem and the broad industry recognition we have received. Our product and engineering teams continue to deliver capabilities rapidly on our SolarWind's platform and recently delivered network and infrastructure observability to give customers a SaaS option in addition to our self-hosted Hybrid Cloud Observability.

現在轉向本季的一些業務亮點。我想分享我們的產品組合和合作夥伴生態系統的最新資訊以及我們獲得的廣泛行業認可。我們的產品和工程團隊繼續在 SolarWind 平台上快速交付功能，最近還交付了網路和基礎設施可觀測性，除了我們自架的混合雲可觀測性之外，還為客戶提供了 SaaS 選項。

Our solutions strive to deliver the best time to value, time to detect, and time to remediate issues in our customers' multi-cloud environment. Our Hybrid Cloud Observability solution continues to gain widespread customer adoption as it helps customers to reduce tool sprawl, reduce alert fatigue through AIOps services, achieve deployment flexibility and prepare for a hybrid multi-cloud world.

我們的解決方案致力於在客戶的多雲環境中提供最佳的價值實現時間、偵測時間和修復問題時間。我們的混合雲可觀測性解決方案繼續獲得客戶的廣泛採用，因為它可以幫助客戶減少工具蔓延、透過 AIOps 服務減少警報疲勞、實現部署靈活性並為混合多雲世界做好準備。

Central to our Hybrid Cloud Observability strategy is the ability to support and interoperate with a wide range of assets inherent in heterogeneous environments. And in Q3, we added significant capabilities to support modern SD-WAN solutions.

我們的混合雲可觀測性策略的核心是能夠支援異質環境中固有的各種資產並與之互通。在第三季度，我們增加了支援現代 SD-WAN 解決方案的重要功能。

We believe the combination of Hybrid Cloud Observability and SolarWinds Observability provides the most comprehensive AI-powered full stack observability solutions in the industry across networks infrastructure, applications and databases.

我們相信，混合雲可觀測性和 SolarWinds Observability 的結合可提供業界最全面的人工智慧驅動的全端可觀測性解決方案，涵蓋網路基礎架構、應用程式和資料庫。

As I have described in previous calls, we intend to make the SolarWinds platform, the foundation for all future innovation.

正如我在先前的電話會議中所描述的，我們打算讓 SolarWinds 平台成為所有未來創新的基礎。

Additionally, at our SolarWinds Day, the Virtual Summit in September, we announced new product enhancements to our service management and database observability solutions. Our new enterprise service management solution extends the value of our service management capabilities beyond IT teams, allowing enterprises to improve the management, efficiency, interactions and user experience across any department of their organizations.

此外，在 9 月的 SolarWinds Day 虛擬高峰會上，我們宣布了服務管理和資料庫可觀測性解決方案的新產品增強功能。我們新的企業服務管理解決方案將我們的服務管理能力的價值擴展到 IT 團隊之外，使企業能夠改善其組織中任何部門的管理、效率、互動和使用者體驗。

With our new solution, customers who currently rely on disparate and disconnected tools across departments to manage workflow and service requests can greatly improve response time and employee experience. We also announced an upgraded version of our comprehensive database performance monitoring and data ops solutions, SQL Sentry.

借助我們的新解決方案，目前依賴跨部門的不同且互不相關的工具來管理工作流程和服務請求的客戶可以大幅縮短回應時間並改善員工體驗。我們也發布了全面的資料庫效能監控和資料操作解決方案 SQL Sentry 的升級版本。

The extension aims to significantly enhance our customers' ability to identify and prevent database performance issues, avoid outages and enjoy the most out of their databases while lowering risk.

此擴展旨在顯著增強客戶識別和預防資料庫效能問題、避免中斷並充分利用資料庫的能力，同時降低風險。

Turning to our partner ecosystem. We announced updates to our Transform Partner Program in August designed to accelerate growth and revenue for our partners, these updates provide greater flexibility for our partners to achieve their targets new opportunities for channel offering improvements and specialized options for database and ITSM products. As you have heard me discuss in recent quarters, our partners and global system integrators are an increasingly important element of our go-to-market motion that can help us expand our reach to customers in a scalable, efficient and cost-effective manner.

轉向我們的合作夥伴生態系統。我們於8 月宣布了轉型合作夥伴計畫的更新，旨在加速合作夥伴的成長和收入，這些更新為我們的合作夥伴提供了更大的靈活性，以實現其目標，為通路提供資料庫和ITSM 產品的改進和專業選項的新機會。正如您在最近幾季中聽到的那樣，我們的合作夥伴和全球系統整合商是我們進入市場行動中越來越重要的元素，可以幫助我們以可擴展、高效和具有成本效益的方式擴大對客戶的影響力。

Lastly, I'm pleased that we have earned multiple product and industry awards this quarter, including the SolarWinds Next-Generation Build System won the 2023 Cloud Security Award for the best security infrastructure in enterprise. SolarWinds won the Gold Globee Award as most Innovative Company of the Year in the cloud SaaS category. SolarWinds observability won with 2023 cloud SaaS awards for Best SaaS Products for IT management.

最後，我很高興我們本季獲得了多項產品和行業獎項，其中 SolarWinds 下一代建置系統榮獲 2023 年企業最佳安全基礎設施雲端安全獎。 SolarWinds 榮獲金球獎雲 SaaS 類別年度最具創新力公司獎。 SolarWinds 可觀測性榮獲 2023 年雲端 SaaS 最佳 IT 管理 SaaS 產品獎。

In closing, we had another strong quarter, and we are making excellent progress against the priorities we laid out for 2023. First, we continue to seek to drive subscription adoptions across our business, which is seen in our strong subscription revenue and ARR growth results. We believe this is consistent with how our customers want to consume our products and that an increase in our subscription base provides an even more solid foundation for our revenue and margin expansion efforts.

最後，我們又度過了一個強勁的季度，並且我們在2023 年制定的優先事項方面取得了出色的進展。首先，我們繼續尋求推動整個業務的訂閱採用率，這從我們強勁的訂閱收入和ARR增長結果中可以看出。我們相信這符合我們的客戶消費我們產品的方式，並且我們訂閱基礎的增加為我們的收入和利潤擴張工作提供了更堅實的基礎。

Second, we continue to (inaudible) expense discipline in a challenging macro environment by investing selectively while managing costs and improving our operating margins as reflected in our 21% adjusted EBITDA year-over-year growth in Q3. Third, we remain very focused on customer retention and expansion efforts as evidenced by our improved renewal rates.

其次，我們在充滿挑戰的宏觀環境中繼續（聽不清楚）支出紀律，透過選擇性地投資，同時管理成本並提高我們的營業利潤率，第三季調整後EBITDA 年成長21% 就反映了這一點。第三，我們仍然非常注重客戶保留和擴張工作，我們提高的續約率就證明了這一點。

And fourth, we continue to innovate on our SolarWinds platform organically and with our expanding ecosystem to bring even greater value to our customers. While there is much work left to do, we believe we are in a great position to achieve what we had hoped to accomplish this fiscal year and enter 2024 with strong momentum. We believe IT environments continue to grow in complexity, while budgets remain constrained, and therefore, customers value solutions that improve productivity and lower costs.

第四，我們繼續在 SolarWinds 平台上進行有機創新，並透過不斷擴大的生態系統為客戶帶來更大的價值。儘管還有很多工作要做，但我們相信我們完全有能力實現本財年的預期目標，並以強勁的勢頭進入 2024 年。我們相信，IT 環境的複雜性不斷增加，而預算仍受到限制，因此，客戶重視能夠提高生產力和降低成本的解決方案。

I believe our comprehensive observability, service management and database products and services are ideally suited to address these growing challenges and we are becoming an even more relevant to our customers' current and future needs. Our Q3 results reflect our increasing relevance to our customers.

我相信我們全面的可觀察性、服務管理以及資料庫產品和服務非常適合應對這些日益增長的挑戰，我們正在變得更加貼近客戶當前和未來的需求。我們第三季的業績反映出我們與客戶的相關性日益增強。

With that, I will turn it over to Bart to expand on our financial performance and provide a full year outlook. Bart?

這樣，我將把它交給巴特來擴展我們的財務表現並提供全年展望。巴特？

Thanks, Sudhakar. Our subscription-first strategy continues to make solid progress. As you know, historically, we sold on-premises licenses and maintenance to our customers. The first phase of our subscription transformation involves converting our existing maintenance base to subscription via our self-hosted Hybrid Cloud Observability product. We are now seeing a bigger shift in new sales to our subscription offerings, driven by our observability solution and our database and service desk products.

謝謝，蘇達卡爾。我們的訂閱優先策略持續取得紮實進展。如您所知，過去我們向客戶出售本地許可證和維護。我們訂閱轉型的第一階段涉及透過我們自架的混合雲可觀測性產品將我們現有的維護基礎轉換為訂閱。在我們的可觀察性解決方案以及資料庫和服務台產品的推動下，我們現在看到訂閱產品的新銷售發生了更大的轉變。

The second phase began with the launch of SolarWinds Observability, our SaaS solution. So whether we sell Hybrid Cloud Observability or SolarWinds Observability, we believe this lays the foundation for even more predictable recurring revenue and the opportunity to expand the lifetime value with customers.

第二階段從推出我們的 SaaS 解決方案 SolarWinds Observability 開始。因此，無論我們銷售混合雲可觀測性還是 SolarWinds 可觀測性，我們相信這都為更可預測的經常性收入和擴大客戶生命週期價值的機會奠定了基礎。

We've seen great progress with this transformation, and we believe we are in a position to continue our momentum through the fourth quarter. It is worth noting that our third quarter performance puts us back in the position of being a rule of 50 company. We believe that with our focus on investment and operating discipline and a broadly diversified portfolio of solutions participating in growing markets, we can be a rule of 50 company on a sustained basis.

我們已經看到這一轉型取得了巨大進展，我們相信我們有能力在第四季度繼續保持這一勢頭。值得注意的是，我們第三季的業績使我們重新回到了 50 強公司的地位。我們相信，憑藉我們對投資和營運紀律的關注以及參與不斷增長的市場的廣泛多元化的解決方案組合，我們可以持續成為 50 家公司的規則。

Turning to the numbers. We finished the third quarter with total revenue of $190 million a 6% increase compared to the prior year and above the total revenue range of outlook we provided of $182 million to $186 million. You'll notice that a meaningful shift in our revenue mix, which reflects our subscription transformation. We continue to have a larger percentage of our new sales as subscription products.

轉向數字。我們第三季的總營收為 1.9 億美元，比上年成長 6%，高於我們提供的 1.82 億至 1.86 億美元的總營收預期範圍。您會注意到我們的收入組合發生了有意義的轉變，這反映了我們的訂閱轉型。我們的新銷售額中訂閱產品的比例持續提高。

We ended the third quarter with total ARR of $668 million, up 8% year-over-year. Our subscription ARR as of September 30, was $213 million, an increase of 34% year-over-year. This growth is primarily due to the execution of our subscription-first strategy, the continued conversion of a portion of our maintenance base to the Hybrid Cloud Observability solution and growth in our database and service desk subscription products.

截至第三季末，我們的總 ARR 為 6.68 億美元，年增 8%。截至 9 月 30 日，我們的訂閱 ARR 為 2.13 億美元，年增 34%。這一成長主要歸功於我們的訂閱優先策略的執行、我們的部分維護基礎持續轉換為混合雲可觀測性解決方案以及我們的資料庫和服務台訂閱產品的成長。

Digging into the revenue details. Our third quarter subscription revenue was $59 million, up 39% year-over-year. Our subscription revenue growth reflects the ongoing success of our subscription-first efforts. We continue to convert maintenance customers at a higher than 1:1 ratio as they see the value of our observability products and the need to manage their hybrid IT environments.

深入研究收入細節。我們第三季的訂閱收入為 5,900 萬美元，年增 39%。我們的訂閱收入成長反映了我們訂閱優先努力的持續成功。我們繼續以高於 1:1 的比例轉換維護客戶，因為他們看到了我們可觀測性產品的價值以及管理其混合 IT 環境的需要。

In addition, a higher percentage of our new deals are being sold as subscription arrangements. Subscription revenue was also positively impacted by multiyear arrangements in the third quarter. Maintenance revenue was $116 million in the third quarter, an increase of 2% from the prior year. The increase is attributed to our high renewal rates and the higher-than-normal price increase we implemented at the start of the year.

此外，我們的新交易中有較高比例是以認購方式出售的。第三季的多年安排也對訂閱收入產生了積極影響。第三季維護營收為1.16億美元，較上年成長2%。這一增長歸因於我們的高續訂率以及我們在年初實施的高於正常價格的上漲。

As previously discussed, our maintenance revenue has been impacted by converting a portion of our maintenance customers to subscriptions and by selling a larger percentage of new sales as subscription products, in line with our subscription-first strategy. Our maintenance renewal rate is 95% on a trailing 12-month basis and was 96% for the third quarter. The trailing 12-month rate was the highest rate since the fourth quarter of 2019.

如前所述，我們的維護收入受到了將部分維護客戶轉換為訂閱以及將較大比例的新銷售作為訂閱產品銷售的影響，這符合我們的訂閱優先策略。我們過去 12 個月的維護續約率為 95%，第三季為 96%。過去 12 個月的成長率是自 2019 年第四季以來的最高水準。

We believe this testifies to the loyalty of our customer base, the value of our solutions and our focus on customer retention and expansion efforts. Note that as we convert maintenance customers to subscription arrangements, we exclude those customers from our renewal rate calculation. As a result of the growth in subscription revenue and strong maintenance renewal rates, we now have 92% of our total revenue as recurring revenue.

我們相信，這證明了我們客戶群的忠誠度、我們解決方案的價值以及我們對客戶保留和擴張工作的關注。請注意，當我們將維護客戶轉換為訂閱安排時，我們將這些客戶排除在我們的續訂率計算之外。由於訂閱收入的成長和強勁的維護續約率，我們現在的經常性收入佔總收入的 92%。

For the third quarter, license revenue was $14 million, representing a decline of approximately 37% compared to the third quarter of 2022. Remember that with our increased efforts on subscription transformation, we expect new perpetual license sales performance will continue to be negatively impacted.

第三季的授權收入為1,400 萬美元，與2022 年第三季相比下降了約37%。請記住，隨著我們加大訂閱轉型力度，我們預計新的永久授權銷售業績將繼續受到負面影響。

This is by design and the increased subscription sales continue to more than offset the decline in license revenue. We finished the third quarter of 2023 with 955 customers who have spent more than $100,000 with us in the last 12 months, which is another quarter of year-over-year improvement over the third quarter of 2022 as well as a sequential increase over the second quarter of this year.

這是有意為之，訂閱銷售的增加繼續抵消了授權收入的下降。截至 2023 年第三季度，我們有 955 名客戶在過去 12 個月內在我們這裡花費超過 100,000 美元，這與 2022 年第三季度相比又一個季度同比有所改善，並且比第二季度連續增長今年季度。

I'm pleased to report that we delivered another quarter of strong non-GAAP profitability. Third quarter adjusted EBITDA was $85 million, growing 21% year-over-year, representing an adjusted EBITDA margin of 45% and coming in $8.5 million above the high end of the outlook we gave for the quarter. Excluded from adjusted EBITDA in the third quarter are onetime expenses of approximately $2.9 million related to December's cyber incident, net of insurance reimbursements.

我很高興地報告，我們又一個季度實現了強勁的非公認會計準則獲利能力。第三季調整後 EBITDA 為 8,500 萬美元，年增 21%，調整後 EBITDA 利潤率為 45%，比我們給出的本季預期上限高出 850 萬美元。第三季調整後 EBITDA 中不包括與 12 月網路事件相關的約 290 萬美元的一次性費用（扣除保險報銷後）。

We continue to expect onetime cyber incident-related costs to fluctuate an increase in future quarters related to the litigation with the SEC. As we discussed in our earnings call in May, we are focused on our capital allocation, disciplined expense management and driving operational efficiencies across our business while focusing on growth and our broader subscription transition.

我們仍然預計，與美國證券交易委員會訴訟相關的一次性網路事件相關成本在未來幾季將會波動增加。正如我們在五月的財報電話會議中所討論的那樣，我們專注於資本配置、嚴格的費用管理和提高整個業務的營運效率，同時專注於成長和更廣泛的訂閱過渡。

Given the uncertain macro outlook for 2023, we optimized our expense structure as part of our ongoing focus on improving operating margins in the first half of the year. During 2023, these optimizations resulted in $20 million of restructuring charges, primarily associated with $14 million of lease impairments for certain office locations and costs related to headcount reductions.

鑑於2023年宏觀前景的不確定性，我們優化了費用結構，作為我們上半年持續關注提高營業利潤率的一部分。 2023 年，這些優化導致了 2000 萬美元的重組費用，主要與某些辦公地點的 1400 萬美元的租賃減值以及與裁員相關的成本有關。

Looking ahead, we will continue to monitor the environment closely and we plan to hire selectively and continue to manage our cost in a disciplined manner.

展望未來，我們將繼續密切監控環境，計劃選擇性聘用，並繼續以嚴格的方式管理成本。

Turning to our balance sheet. We've made significant progress reducing our net leverage ratio, which at September 30th was approximately 3.2x our trailing 12-month adjusted EBITDA. This compares to 3.9x at the end of last year. We have significantly improved our leverage position in 2023 through improved performance and our ability to convert non-GAAP profitability to cash flow.

轉向我們的資產負債表。我們在降低淨槓桿率方面取得了重大進展，截至 9 月 30 日，淨槓桿率約為過去 12 個月調整後 EBITDA 的 3.2 倍。相比之下，去年年底的成長率為 3.9 倍。透過改善業績以及將非 GAAP 獲利能力轉化為現金流的能力，我們在 2023 年顯著改善了槓桿狀況。

As communicated before, we will continue to execute our plans to get below 3x net leverage. Our cash and cash equivalents and short-term investments balance was $235 million at the end of the third quarter, bringing our net debt to approximately $1 billion.

正如之前所傳達的，我們將繼續執行我們的計劃，將淨槓桿率降至 3 倍以下。截至第三季末，我們的現金和現金等價物以及短期投資餘額為 2.35 億美元，使我們的淨債務達到約 10 億美元。

I will now walk you through our outlook before turning it over to Sudhakar for final thoughts. I will start with our fourth quarter guidance and then discuss what that means for the full year.

現在，我將向您介紹我們的前景，然後將其交給 Sudhakar 進行最後的思考。我將從第四季度的指導開始，然後討論這對全年意味著什麼。

Given the performance we have seen to date, we continue to believe that we will be able to grow our top line in 2023, driven by our expanded product portfolio and ongoing improvements in execution as well as our strong customer renewal and retention rates. We believe the diversity of our customer base across sizes and industries and our focus on attractive growth markets should allow us to weather challenging economic conditions.

鑑於我們迄今為止所看到的業績，我們仍然相信，在我們擴大的產品組合、持續改進的執行力以及強勁的客戶續約率和保留率的推動下，我們將能夠在2023 年實現營收成長。我們相信，我們不同規模和行業的客戶群的多樣性以及我們對有吸引力的成長市場的關注應該使我們能夠應對充滿挑戰的經濟條件。

Our outlook carefully takes into account macroeconomic conditions and the impact of our subscription-first business model transition. We remain focused on our strategy and what we can control and are committed to continuing to improve our profitability profile in 2023.

我們的前景仔細考慮了宏觀經濟狀況以及訂閱優先業務模式轉型的影響。我們仍然專注於我們的策略和我們可以控制的事情，並致力於在 2023 年繼續改善我們的獲利能力。

For the fourth quarter, we expect total revenue to be in the range of $188.5 million to $192.5 million, representing a 2% year-over-year growth at the midpoint. Adjusted EBITDA for the fourth quarter is expected to be approximately $80.5 million to $82.5 million, representing 9% year-over-year growth at the midpoint. Non-GAAP fully diluted earnings per share are projected to be $0.20 to $0.22 per share, assuming an estimated 167.4 million fully diluted shares outstanding. Finally, our outlook for the fourth quarter assumes a non-GAAP tax rate of 26%, and we expect to pay approximately $8 million in cash taxes during the fourth quarter.

對於第四季度，我們預計總營收將在 1.885 億美元至 1.925 億美元之間，中間值將年增 2%。第四季調整後 EBITDA 預計約 8,050 萬美元至 8,250 萬美元，年比中位數成長 9%。假設完全稀釋已發行股票數量估計為 1.674 億股，非 GAAP 完全稀釋每股盈餘預計為每股 0.20 至 0.22 美元。最後，我們對第四季的展望假設非公認會計準則稅率為 26%，我們預計第四季將支付約 800 萬美元的現金稅。

For the full year, we are again raising our guidance and expect total revenue to be in the range of $749 million to $753 million, representing 4% year-over-year growth at the midpoint. This compares to the previously issued guidance of $740 million to $748 million and the initial range of $725 million to $740 million at the start of the year. We are again raising our full year adjusted EBITDA guidance to be between $322 million and $324 million, representing a 15% year-over-year growth at the midpoint. This is compared to the previously provided guidance for the full year of $308 million to $313 million.

對於全年，我們再次上調指導，預計總收入將在 7.49 億美元至 7.53 億美元之間，中間值年增長 4%。相較之下，先前發布的指引為 7.4 億美元至 7.48 億美元，以及年初的初始範圍為 7.25 億美元至 7.4 億美元。我們再次將全年調整後 EBITDA 指引上調至 3.22 億美元至 3.24 億美元之間，中間值年增 15%。相比之下，先前提供的全年指引為 3.08 億至 3.13 億美元。

We continue to make selective investments consistent with our priorities and remain very committed to improving efficiency and profitability. We remain focused on top line growth as we have made meaningful investments in our product portfolio and go-to-market strategies. We believe these investments are starting to pay dividends. Non-GAAP fully diluted earnings per share is projected to be $0.83 to $0.85 per share, assuming an estimated 166.4 million fully diluted shares outstanding.

我們繼續根據我們的優先事項進行選擇性投資，並仍然致力於提高效率和盈利能力。我們仍然專注於營收成長，因為我們對產品組合和上市策略進行了有意義的投資。我們相信這些投資已開始帶來紅利。假設完全稀釋已發行股票數量估計為 1.664 億股，非 GAAP 完全稀釋每股盈餘預計為每股 0.83 至 0.85 美元。

And finally, our full year and fourth quarter guidance assumes a euro to dollar exchange rate of 1.06 to 1.

最後，我們的全年和第四季度指引假設歐元兌美元匯率為 1.06 比 1。

With that, I'll return the call to Sudhakar for his closing remarks.

接下來，我將回電給蘇達卡爾，請他作結語。

Thank you, Bart. I'm very pleased with the team's progress as evidenced by another strong quarterly performance on both revenue and adjusted EBITDA. Although, our focus today is on the strength of our third quarter results and the progress we have made as a business. I want to spend a few moments talking about the recently announced civil enforcement action brought by the SEC related to the SUNBURST attack.

謝謝你，巴特。我對團隊的進展感到非常滿意，收入和調整後 EBITDA 的季度表現再次強勁就證明了這一點。儘管如此，我們今天的重點是我們第三季業績的實力以及我們作為一家企業所取得的進展。我想花一些時間談談 SEC 最近宣布的與 SUNBURST 攻擊相關的民事執法行動。

We find the SEC's allegations very disappointing and believe they are inconsistent with the facts. As difficult as the attack was, we are very proud of how our employees responded and their tireless engagement with our public and private sector customers, partners, and other stakeholders. Through our Secure by Design efforts, we have endeavored to set a new standard in secure software development and infrastructure security and our approach has received broad recognition in the security and IT industries.

我們對 SEC 的指控感到非常失望，並認為它們與事實不符。儘管攻擊非常困難，但我們對員工的應對方式以及他們與公共和私營部門客戶、合作夥伴和其他利益相關者的不懈接觸感到非常自豪。透過我們的「設計安全」努力，我們致力於在安全軟體開發和基礎設施安全方面樹立新標準，我們的方法已在安全和 IT 行業中獲得廣泛認可。

We will continue to be outspoken advocates and promoters of public-private partnerships to thwart and respond to cyber attacks. I believe this is the only way to improve cybersecurity for public and private entities. We are concerned that the SEC's actions will stand the progress we have made as an industry.

我們將繼續成為公私夥伴關係的直言不諱的倡導者和推動者，以阻止和應對網路攻擊。我相信這是改善公共和私人實體網路安全的唯一途徑。我們擔心 SEC 的行動將阻礙我們作為一個行業所取得的進步。

Through all of this and most importantly, we deeply appreciate our customers' recognition of the circumstances of the SUNBURST attack and the opportunity to enjoy greater relevance with them as evidenced by our growth and retention rates.

透過這一切，最重要的是，我們深深感謝客戶對 SUNBURST 攻擊情況的認可，以及與他們享有更大相關性的機會，這一點從我們的成長率和保留率就可以看出。

We are working hard and making significant progress in our initiatives to deliver ongoing compelling value to customers via our subscription-first mindset, build solutions to deliver the best time to value, the best time to detect issues, and the best time to remediate issues in their multi-cloud environments via simple, powerful and secure solutions, and to expand our margins even as we deliver top line growth and evolve to a more predictable subscription revenues.

我們正在努力工作，並在我們的計劃中取得重大進展，透過訂閱優先的心態為客戶提供持續的令人信服的價值，構建解決方案以提供實現價值的最佳時間、發現問題的最佳時間以及修復問題的最佳時間。透過簡單、強大和安全的解決方案來改善他們的多雲環境，並在我們實現營收成長並發展到更可預測的訂閱收入的同時擴大我們的利潤。

The macro environment continues to present challenges to the broader software industry. Even so, I'm confident our strategy, portfolio, and customer success focus, will appeal to customers across all geographies and across all verticals. We continue to exercise expense discipline, invest selectively, and strive to deliver revenue growth and expanding margins.

宏觀環境持續為更廣泛的軟體產業帶來挑戰。即便如此，我相信我們的策略、產品組合和客戶成功重點將吸引所有地區和所有垂直領域的客戶。我們持續實行費用紀律，有選擇地投資，努力實現收入成長和利潤率擴大。

We are increasing our guidance for 2023 across total revenue and adjusted EBITDA, as you've heard from Bart, on the heels of a strong Q3 and first half 2023 performance. In fact, our revised low end of the outlook for the year is above the previously indicated high end of our guidance ranges on both total revenue and adjusted EBITDA.

正如您從巴特那裡聽到的，繼 2023 年第三季和上半年的強勁業績之後，我們正在提高 2023 年總收入和調整後 EBITDA 的指導。事實上，我們修訂後的今年前景下限高於先前指出的總收入和調整後 EBITDA 指導範圍的上限。

Again, I thank our employees, partners, customers and shareholders for their commitment to SolarWinds. Bart and I are now happy to address your questions.

我再次感謝我們的員工、合作夥伴、客戶和股東對 SolarWinds 的承諾。巴特和我現在很高興回答您的問題。

(Operator Instructions) Your first question comes from the line of Rob Oliver with Baird.

（操作員說明）您的第一個問題來自 Rob Oliver 和 Baird 的線路。

It's Patrick Schulz on for Rob this morning. I guess, first, starting with the larger customers of greater than $100,000 spend. This cohort performed pretty well during the quarter, and growth actually accelerated despite a continued challenging macro for larger deals.

今天早上帕特里克·舒爾茨 (Patrick Schulz) 替補羅布 (Rob)。我想，首先，先從消費額超過 10 萬美元的大客戶開始。該群體在本季表現相當出色，儘管大型交易的宏觀環境持續面臨挑戰，但成長實際上仍在加速。

Just wanted to dive a little deeper into this. Just trying to understand some of the main drivers are and maybe some of the enhancements you made around the Partner Program, are they starting to gain traction with the larger customers?

只是想更深入地了解這一點。只是想了解一些主要驅動因素，也許還有您圍繞合作夥伴計劃所做的一些增強，它們是否開始吸引更大的客戶？

I'll take crack at that question, and Bart feel free to jump in and add your comments.

我會回答這個問題，巴特也可以隨時加入並添加您的評論。

First of all, yes, your observation is absolutely right. But as we have always described on these calls, we will expect some variability in large deals as we go through various quarters. But the reason why you're seeing this steady strength from us is because we are continuing to deliver greater value to customers. One of the points I'd bring up consistently is that we are helping customers eliminate tools sprawl.

首先，是的，您的觀察是絕對正確的。但正如我們在這些電話會議中一直描述的那樣，隨著我們經歷不同的季度，我們預計大型交易會出現一些變化。但您之所以能從我們身上看到這種穩定的實力，是因為我們不斷為客戶提供更大的價值。我一貫提出的觀點之一是，我們正在幫助客戶消除工具蔓延的問題。

What that means is that instead of us being simply a point product solution provider, we are delivering platforms and broader capabilities to customers that then let them consolidate other vendors tools and other capabilities onto the SolarWinds platform.

這意味著我們不再只是一個單點產品解決方案提供商，而是為客戶提供平台和更廣泛的功能，然後讓他們將其他供應商的工具和其他功能整合到 SolarWinds 平台上。

In fact, the Hybrid Cloud Observability solution that's been gaining traction since we introduced does exactly that in addition to doing a lot of other things. So that's what's contributing to some of the larger deal sizes.

事實上，自從我們推出以來，混合雲可觀測性解決方案一直受到關注，除了做很多其他事情之外，它還確實做到了這一點。這就是促成一些較大交易規模的原因。

The other point is what you highlighted, which is working with global system integrators and continuing to evolve our Transform Partner Program. We will see some more traction there, but it's not fully reflected yet. And this will be a long journey for us, but we are very excited about where we are headed.

另一點是您強調的，即與全球系統整合商合作並繼續發展我們的轉型合作夥伴計劃。我們將在那裡看到更多的吸引力，但尚未完全反映出來。這對我們來說將是一段漫長的旅程，但我們對前進的方向感到非常興奮。

Great. I appreciate the color. And a quick follow-up too. I just want to ask about the public sector and some of the Fed customers, which your team has done a great job maintaining these relationships here. It seems like this vertical continues to be a nice pocket of strength.

偉大的。我很欣賞它的顏色。並進行快速跟進。我只想詢問公共部門和一些聯準會客戶的情況，你們的團隊在維持這些關係方面做得很好。看起來這個垂直方向仍然是一個很好的力量。

So can you talk about some of the demand you saw during Q3, just given the Federal September fiscal year-end? And maybe where do you stand now in terms of renewal rates, expansion activity, subscription progress, et cetera, just relative to where you'd like to be?

那麼，鑑於聯邦 9 月財年結束，您能否談談您在第三季看到的一些需求？也許您現在在續訂率、擴展活動、訂閱進度等方面處於什麼位置，只是相對於您想要的位置？

We are making very good progress there. And as you indicated, we have retained most, if not all our customers and have continued to expand as well with new customers in the public sector and especially the Federal segment. That will continue to be a very important aspect of our business because our solutions support federal government customers in my opinion, as well or better than most other options out there. And that's the reason why they tend to be loyal to us and continue to expand with us.

我們在那裡取得了很好的進展。正如您所指出的，我們保留了大部分（如果不是全部）客戶，並繼續擴大公共部門，特別是聯邦部門的新客戶。這將繼續成為我們業務的一個非常重要的方面，因為在我看來，我們的解決方案可以為聯邦政府客戶提供支持，並且比大多數其他選擇更好，甚至更好。這就是為什麼他們往往忠於我們並繼續與我們一起擴張。

With regards to demand in Q3, we did see good demand, although I will say that towards the end of the quarter, especially on the 30th and the 29th, because of some of the continuing resolution issues, we did have deals slip into Q4, with some of them we already closed. But that is a -- that was a soft spot for us in Q3 as we ended it, but as you saw from our results, even without those deals, we delivered excellent results above the high end of the range we provided, indicating the diversity and the robustness of our solutions across all verticals and, of course, a Federal as well.

關於第三季度的需求，我們確實看到了良好的需求，儘管我會說，在本季度末，特別是在30 日和29 日，由於一些持續的解決問題，我們確實有交易滑入了第四季度，其中一些我們已經關閉了。但這是我們在第三季結束時的一個弱點，但正如您從我們的結果中看到的那樣，即使沒有這些交易，我們也提供了高於我們提供的範圍高端的出色結果，這表明了多樣性以及我們跨所有垂直領域（當然還有聯邦）的解決方案的穩健性。

Your next question comes from the line of Matthew Hedberg with RBC Capital Markets.

您的下一個問題來自 RBC Capital Markets 的 Matthew Hedberg。

This is Simran on for Matt Hedberg. Just one for me. Can you speak for the health of the SME market and how customer spending has been tracking?

這是西姆蘭（Simran）為馬特·赫德伯格（Matt Hedberg）代言。只給我一個。您能否談談中小企業市場的健康狀況以及客戶支出的追蹤情況？

And I'd also love to hear any additional commentary around how you've been thinking about retention and expansion throughout the quarter relative to expectations and what is driving this trend.

我也很想聽聽關於您如何考慮整個季度的保留和擴張相對於預期以及推動這一趨勢的因素的任何其他評論。

I'll take a quick to crack at responding to it, and Bart will add any additional color he chooses to. Specifically on the SME sector, I have highlighted this previously as well, which is while many of our customers may be on the mid-market or midsized range, technology is a must-have for them and solutions such as ours will help them eliminate complexity, reduce their costs and improve their productivity. So in an environment where their complexity is growing, they do not have the resources, the human resources of very large enterprises, and at the same time, they tend to be fairly capital rich. And so they invest in solutions like ours, and we are seeing very robust demand in our mid-market customers.

我會快速回應它，巴特會添加他選擇的任何其他顏色。特別是在中小企業領域，我之前也強調過這一點，即雖然我們的許多客戶可能處於中端市場或中型範圍，但技術對他們來說是必須具備的，而像我們這樣的解決方案將有助於他們消除複雜性，降低成本並提高生產力。因此，在複雜性不斷增加的環境中，他們沒有大型企業的資源和人力資源，但同時，他們的資本往往相當豐富。因此，他們投資了像我們這樣的解決方案，我們看到中端市場客戶的需求非常強勁。

The variability as we have highlighted previously is on the large enterprise segment because deal cycles are requiring more approvals and tend to take a bit longer to accomplish. The beauty of our business is that we are very, very diversified. And so we are able to get through these macro conditions and still deliver very predictable results.

正如我們之前所強調的，可變性發生在大型企業領域，因為交易週期需要更多批准，並且往往需要更長的時間才能完成。我們業務的美妙之處在於我們非常非常多元化。因此，我們能夠克服這些宏觀條件，並且仍然提供非常可預測的結果。

And on our renewal rates, we talked about the fact that our renewal rates actually got back to some of our all-time highs. I think our in-quarter renewal rate was actually at 96%. And on a trailing 12-month basis, our renewal rate was up to 95%. So really strong traction just shows, goes back to what Sudhakar talked about as far as the strength of our customer base and the loyalty of our customer base and how much they like our products.

關於我們的續訂率，我們談到了這樣一個事實：我們的續訂率實際上已經回到了歷史最高水準。我認為我們的季度續訂率實際上為 96%。在過去 12 個月的基礎上，我們的續約率高達 95%。因此，真正強大的吸引力只是表明，可以追溯到蘇達卡所說的我們客戶群的實力、客戶群的忠誠度以及他們對我們產品的喜愛程度。

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

你的下一個問題來自摩根士丹利的桑吉特辛格。

Congrats on getting back to the Rule of 50 financials. Given, Sudhakar, what you talked about momentum with the observability portfolio, ITSM and database, I was wondering if you could sort of disaggregate the improvement in sort of net new ARR between sort of migrations and how this sort of growth portfolio, how much of that is contributing to your net new subscription ARR results?

恭喜您回到 50 財務法則。鑑於 Sudhakar，您談到了可觀測性投資組合、ITSM 和資料庫的勢頭，我想知道您是否可以將各種遷移之間的淨新 ARR 的改進進行分類，以及這種成長投資組合的成長方式、多少這對您的淨新訂閱ARR 結果有貢獻嗎？

Thanks again for your questions and your continued support of SolarWinds as well. What we are looking at when we talk about migration of conversions, in almost not every instance, but a majority of the instances, it's not just a claim conversion as I described previously, which is we don't simply give up maintenance dollars and convert them to subscription of HCO or our observability solutions or database or service management for that matter.

再次感謝您提出的問題以及您對 SolarWinds 的持續支持。當我們談論轉換的遷移時，我們所關注的是，幾乎不是在所有情況下，但在大多數情況下，這不僅僅是我之前描述的索賠轉換，即我們不會簡單地放棄維護費用並轉換他們訂閱HCO 或我們的可觀測性解決方案或資料庫或服務管理。

In almost many situations, what happens is that the customer is also expanding with us. This is a consolidation of tool sprawl or reduction of tool sprawl, improvement in alert stacking capabilities, getting them ready for the cloud and so on.

幾乎在許多情況下，客戶也在與我們一起擴展。這是對工具蔓延的整合或減少工具蔓延、改善警報堆疊功能、讓它們為雲端做好準備等等。

So even when we say migration or conversions, there's an expansion involved, and then separate from that is what we call completely new deals. These new deals can be cross-sell of observability, let's say, into database or service management customers, or net new to franchise, which are deals that we may have displaced the competitor because we are more modern and more cloud-ready for that customer.

因此，即使我們說遷移或轉換，也涉及擴張，然後與擴張分開的是我們所說的全新交易。這些新交易可以是可觀察性的交叉銷售，比如說，向資料庫或服務管理客戶進行交叉銷售，或者是特許經營的淨新交易，這些交易我們可能已經取代了競爭對手，因為我們為該客戶提供了更現代化、更適合雲端的服務。 。

So we segregate out internally between conversions as well as new. And we are seeing robust growth in both dimensions, but we don't really split out those financials externally.

因此，我們在內部將轉換和新的進行了隔離。我們在這兩個方面都看到了強勁的成長，但我們並沒有真正將這些財務數據進行外部分割。

Understood. And then maybe we'd go back to just some of the -- your comments on SME. If we think about the business across geos, if you look at how the SME business performed, was there any sort of themes there between North America, Europe, APAC or were they sort of, you saw broadly consistent trends across the regions?

明白了。然後也許我們會回到您對中小企業的一些評論。如果我們考慮跨地域的業務，如果你看看中小企業業務的表現，北美、歐洲、亞太地區之間是否存在任何主題，或者你看到了各地區大致一致的趨勢？

It's broadly consistent, Sanjit, notwithstanding some of the macro challenges that we're facing in EMEA due to all the reasons that you know, wars and economies and so on and so forth. But even there, our overall transaction count is actually increasing, so which is an indication of the robust demand environment that we are there and the criticality of our solutions.

Sanjit，儘管由於戰爭和經濟等各種原因，我們在歐洲、中東和非洲地區面臨一些宏觀挑戰，但它基本上是一致的。但即便如此，我們的整體交易數量實際上仍在增加，這表明我們所處的需求環境強勁以及我們的解決方案的重要性。

And the reason why I highlight the whole SME angle or the mid-market angle is conventional wisdom would say in these situations that you will face a lot of pressure because of lack of traction or ability to invest in those segments and large enterprise, so to speak, is okay.

我之所以強調整個中小企業角度或中端市場角度，是因為傳統觀點會說，在這些情況下，你將面臨很大的壓力，因為缺乏對這些細分市場和大型企業的投資吸引力或能力，所以說話，就可以了。

We believe, based on our experience, the exact opposite is true, which is large enterprise deals and larger deals in general take a little bit more time, more approvals in place, more scrutiny. So delayed cycles, as you have heard from many different software vendors. And that's where a focus on both mid-market and selective enterprise allows us to drive very diversified results.

我們認為，根據我們的經驗，事實恰恰相反，即大型企業交易和大型交易通常需要更多的時間、更多的批准和更多的審查。正如您從許多不同的軟體供應商那裡聽到的那樣，週期如此延遲。這就是對中端市場和選擇性企業的關注使我們能夠實現非常多元化的結果。

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

您的下一個問題來自 Truist Securities 的特雷爾·蒂爾曼 (Terrell Tillman)。

This is Connor Passarella on for Terry. Just one for me. Curious on the new ESM product you recently announced. Just curious how the initial reception been amongst your customer base and maybe how we should think about the profile of a typical customer that we'll look to deploy ESM across different departments in the organization. Just how we can think about sizing that customer?

我是特里的康納·帕薩雷拉。只給我一個。對您最近發布的新 ESM 產品感到好奇。只是好奇您的客戶群最初的接受程度如何，也許我們應該如何考慮典型客戶的概況，我們將尋求在組織中的不同部門部署 ESM。我們如何考慮評估該客戶的規模？

So previously, our solutions were largely focused on the IT department. With ESM we, of course, can traverse into departments. But in terms of the sweet spot of our customer, I would say that it's still call it the mid-market customers, including the upper end of the mid-market, where the CIO has a significant role to play in deciding the technology solution and the stack across the organization.

所以之前，我們的解決方案主要集中在 IT 部門。有了ESM，我們當然可以跨部門。但就我們客戶的最佳點而言，我想說它仍然是中端市場客戶，包括中端市場的高端客戶，資訊長在決定技術解決方案和決策方面發揮著重要作用。整個組織的堆疊。

Your next question comes from the line of Kash Rangan from Goldman Sachs.

您的下一個問題來自高盛 (Goldman Sachs) 的卡什·蘭根 (Kash Rangan)。

This is Jacob Staffel for Kash. Really solid results. So really good to see that continued execution. So just one or two for me. First one being, I realize that guidance has been raised, and Sudhakar, I think you put it well, how the low end of the new fiscal year guidance is above the high end of the initial fiscal year guidance.

我是卡什的雅各·斯塔費爾。真正可靠的結果。很高興看到繼續執行。所以對我來說只有一兩個。第一個是，我意識到指導意見已經提高，蘇達卡，我認為你說得很好，新財政年度指導意見的低端如何高於初始財政年度指導的高端。

So that being said, do you -- how much potential to the upside do you think there could be in 4Q given that that's typically when budget flushes occur and companies might be a little bit more willing to spend just given uncertainty on budgets heading into next year?

話雖這麼說，您認為第四季度的上行潛力有多大，因為這通常是預算充裕發生的時候，而且考慮到下一季預算的不確定性，公司可能會更願意花錢年？

Yes. Jacob, I would tell you that -- oh sorry, Sudhakar. Jacob, I'll start off, and then Sudhakar, you can come in after that.

是的。雅各布，我想告訴你——哦，對不起，蘇達卡。 Jacob，我先走了，然後 Sudhakar，你可以進來了。

I was just going to say, Jacob, when we set Q4 guidance, we kind of followed a similar methodology that we did for setting the full year guidance back in February as well as the updated guidance that we provided last quarter. There's a lot of macro headwinds right now, so we're trying to be somewhat cautious when we're providing guidance, but the plan is for us to try to exceed that number. But obviously, there's a fair number of factors at play right now.

我只是想說，雅各布，當我們設定第四季度指導時，我們遵循了與我們在 2 月份設定全年指導以及上季度提供的更新指導類似的方法。目前存在許多宏觀阻力，因此我們在提供指導時盡量保持謹慎，但我們的計劃是嘗試超過該數字。但顯然，目前有很多因素在起作用。

And then just last one, is there any specific vertical that you might call out that showed maybe outsized strength or weakness in this last quarter?

最後一個問題是，您可能會指出任何特定的垂直領域在上個季度表現出巨大的優勢或劣勢嗎？

No, Jacob. We had, I would say, consistent results across all the verticals that we participate in. As you know, we are a super diversified company when it comes to both customer count as well as verticals. And then, of course, we had the, call it, traditional traction in Fed that you would expect in Q3, notwithstanding some of the government shutdown related issues.

不，雅各。我想說，我們參與的所有垂直行業都取得了一致的結果。如您所知，就客戶數量和垂直行業而言，我們是一家超級多元化的公司。當然，儘管存在一些與政府關門相關的問題，但我們在第三季仍獲得了聯準會的傳統牽引力。

(Operator Instructions) There are no further questions at this time. I would like to turn the call back to Sudhakar Ramakrishna.

（操作員說明） 目前沒有其他問題。我想把電話轉回蘇達卡爾·羅摩克里希納。

Thank you very much again. With this, we conclude Q3 earnings call, and I appreciate everyone attending, asking your questions and supporting SolarWinds.

再一次非常感謝你。第三季財報電話會議到此結束，我感謝大家參加、提問並支持 SolarWinds。

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

今天的電話會議到此結束。您現在可以斷開連線。