ZeroFox Holdings Inc (ZFOX) 2023 Q4 法說會逐字稿

Thank you for standing by, and welcome to the ZeroFox Fiscal Fourth Quarter 2023 Results Conference Call. (Operator Instructions) And as a reminder, today's call is being recorded. I would now like to turn the conference over to Marc Griffin, Senior Vice President of Investor Relations for ICR. Marc?

感謝您的支持，歡迎參加 ZeroFox 2023 財年第四季度業績電話會議。 （操作員說明）作為提醒，今天的通話正在錄音中。我現在想將會議轉交給 ICR 投資者關係高級副總裁 Marc Griffin。馬克？

Thank you, operator. Good morning, and thank you for joining us today to review ZeroFox' fiscal fourth quarter 2023 financial results. With me on the call today are James C. Foster, as many of you know him, Foster. Foster is the Founder, Chief Executive Officer and Chairman of ZeroFox. Also with me on the call is ZeroFox's CFO, Tim Bender. After prepared remarks, we will open up the call for questions.

謝謝你，運營商。早上好，感謝您今天加入我們，回顧 ZeroFox 2023 財年第四季度的財務業績。今天和我一起打電話的是詹姆斯·C·福斯特，你們很多人都認識他，福斯特。 Foster 是 ZeroFox 的創始人、首席執行官兼董事長。與我一起通話的還有 ZeroFox 的首席財務官 Tim Bender。在準備好發言後，我們將開始提問。

During this call, we may make statements related to our business that are forward-looking statements under federal securities laws, including statements related to our anticipated financial results, growth opportunities and external cybersecurity, our progress in achieving profitability and expected benefits from our acquisition of IDX.

在本次電話會議中，我們可能會根據聯邦證券法做出與我們的業務相關的前瞻性陳述，包括與我們預期的財務業績、增長機會和外部網絡安全、我們實現盈利的進展以及我們收購的預期收益相關的陳述IDX。

These statements are not guarantees of future performance, but rather are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statements. Forward-looking statements made today speak only to our expectations as of today, and we undertake no obligation to publicly update or revise them.

這些陳述不是對未來業績的保證，而是受到各種風險和不確定性的影響。我們的實際結果可能與任何前瞻性陳述中反映的預期存在重大差異。今天做出的前瞻性陳述僅代表我們今天的預期，我們沒有義務公開更新或修改它們。

For a discussion of the material risks and other important factors that could affect our actual results, please refer to the Risk Factors section in our SEC filings and on the SEC's EDGAR system and our website as well as the risks and important factors discussed in today's earnings press release.

有關可能影響我們實際結果的重大風險和其他重要因素的討論，請參閱我們提交給美國證券交易委員會的文件中的風險因素部分以及美國證券交易委員會的 EDGAR 系統和我們的網站以及今天的收益中討論的風險和重要因素新聞稿。

Additionally, non-GAAP financial measures will be discussed on this conference call. Please refer to the tables in our earnings release and on the Investor Relations portion of our website for a reconciliation of these measures to the most directly comparable GAAP financial measure.

此外，本次電話會議還將討論非 GAAP 財務措施。請參閱我們的收益發布和我們網站的投資者關係部分中的表格，以了解這些指標與最直接可比的 GAAP 財務指標的對賬情況。

With that, I'd like to turn the call over to ZeroFox's Chief Executive Officer. Foster, please go ahead.

有了這個，我想把電話轉給 ZeroFox 的首席執行官。福斯特，請繼續。

Thanks, Marc. Good morning, everybody. I'm really excited to speak with you today about our strong close to the fiscal year, the continued significant growth opportunity we see in external cybersecurity and our focus for the upcoming year on taking a balanced approach between capitalizing on growth and progressing on our path to profitability.

謝謝，馬克。大家早上好。我很高興今天能與您談論我們在本財年的強勁表現、我們在外部網絡安全方面看到的持續顯著增長機會以及我們在來年的重點是在利用增長和在我們的道路上取得進展之間採取平衡的方法到盈利能力。

Let's start with a high-level look at our Q4 performance. As the only cybersecurity company to go public in 2022, I'm proud of what our team was able to accomplish. We closed out the year on a high note, beating the high end of our guidance for the second consecutive quarter.

讓我們從高層次的角度來看我們第四季度的表現。作為唯一一家在 2022 年上市的網絡安全公司，我為我們團隊能夠取得的成就感到自豪。我們以高調結束了這一年，連續第二個季度超過了我們指導的高端。

We ended the year with ARR of $157 million and year-over-year platform ARR grew 27%. We also had another strong quarter of new customer wins ending the quarter with over 1,200 subscription customers, up 20% year-over-year. We saw continued success winning larger deals as well, ending the year with 147 subscription customers with ARR greater than $100,000, an increase 25% year-over-year.

年底，我們的 ARR 為 1.57 億美元，平台 ARR 同比增長 27%。在本季度末，我們還贏得了另一個強勁的新客戶，訂閱客戶超過 1,200 名，同比增長 20%。我們也看到繼續成功贏得更大的交易，到年底有 147 名訂閱客戶的 ARR 超過 100,000 美元，同比增長 25%。

Overall, we were pleased with the performance, particularly given a continued volatile and uncertain macro environment. The demand environment we experienced in Q4 was consistent with what we saw in Q3 and thus far is remaining more stable than the macro environment. That said, like other cybersecurity and technology companies, we've continued to see increased scrutiny on larger deals and longer sales cycles in certain cases and geographies, but it has not affected our overall demand.

總體而言，我們對業績感到滿意，特別是考慮到持續動盪和不確定的宏觀環境。我們在第四季度經歷的需求環境與我們在第三季度看到的情況一致，迄今為止比宏觀環境更穩定。也就是說，與其他網絡安全和技術公司一樣，我們繼續看到在某些情況下和地區對更大的交易和更長的銷售週期進行更嚴格的審查，但這並未影響我們的整體需求。

We attribute this experience to the resiliency of cybersecurity and our go-to-market execution. We also recognize our smaller size and emerging nature of the market are positive factors. Taking a closer look at Q4, we continue to see healthy demand from both new and existing customers across our external cybersecurity platform and service offerings.

我們將這種體驗歸因於網絡安全的彈性和我們的上市執行力。我們還認識到我們較小的規模和市場的新興性質是積極因素。仔細觀察第四季度，我們繼續看到新客戶和現有客戶對我們的外部網絡安全平台和服務產品的健康需求。

During the quarter, we had several key platform and service wins, including a multi 6-figure deal with a Fortune 100 U.S. grocery chain. This deal was a competitive displacement opportunity that we won over key public company competitors. The customer is using ZeroFox to protect multiple brands, domains, executives and mobile apps to detect and disrupt coordinated campaigns across the dark web through our threat intelligence products.

在本季度，我們贏得了幾筆關鍵的平台和服務訂單，包括與財富 100 強美國雜貨連鎖店達成的多筆 6 位數交易。這筆交易是我們贏得主要上市公司競爭對手的競爭性替代機會。該客戶正在使用 ZeroFox 來保護多個品牌、域、高管和移動應用程序，以通過我們的威脅情報產品檢測和破壞暗網上的協調活動。

ZeroFox won this deal due to the strength and comprehensiveness of our platform, differentiated dark web and dark ops capabilities and our ability to take action against the threats we discovered, including removing leak data and personal information with our new PII disruption service.

ZeroFox 之所以贏得這筆交易，是因為我們平台的實力和全面性、差異化的暗網和暗操作能力，以及我們對發現的威脅採取行動的能力，包括使用我們新的 PII 中斷服務刪除洩漏數據和個人信息。

We signed a 6-figure deal with a Fortune 100 retail company that is using ZeroFox to protect and disrupt threats to their corporate and executive social media accounts and domains. We also won a 6-figure multiyear deal with a large European critical infrastructure company. This was a competitive displacement with the customers selecting ZeroFox for our comprehensive platform across 3 of our 4 pillars, including digital risk protection, threat intelligence and disruption.

我們與一家財富 100 強零售公司簽署了一份 6 位數的交易，該公司使用 ZeroFox 來保護和消除對其公司和高管社交媒體帳戶和域的威脅。我們還贏得了與一家大型歐洲關鍵基礎設施公司的 6 位數多年期合同。客戶選擇 ZeroFox 作為我們跨 4 大支柱中的 3 大支柱（包括數字風險保護、威脅情報和中斷）的綜合平台，這是一種競爭優勢。

ZeroFox Response, our fourth and newest pillar focused on incident and brief response capabilities, also performed well in the quarter. We had several key wins, including a large deal with a U.S. restaurant chain where we brought in to leverage our Response platform and operations center. This was a competitive deal when the customer selected ZeroFox because of our proven track record of delivering market-leading breach response services at scale.

ZeroFox Response 是我們的第四個也是最新的支柱，專注於事件和簡短響應能力，在本季度也表現良好。我們取得了幾項關鍵的勝利，包括與一家美國連鎖餐廳的大筆交易，我們在其中利用我們的 Response 平台和運營中心。當客戶選擇 ZeroFox 時，這是一項具有競爭力的交易，因為我們在大規模提供市場領先的違規響應服務方面有著良好的記錄。

Importantly, in Q4, we started to see early signs of synergies following our Q3 acquisition of IDX. For example, our recently launched PII removal disruption service, a joint IDX and ZeroFox innovation, was a key required capability for several [end-quarter] ZeroFox platform deals.

重要的是，在第四季度，我們開始看到第三季度收購 IDX 後協同效應的早期跡象。例如，我們最近推出的 PII 刪除中斷服務是 IDX 和 ZeroFox 的聯合創新，是幾個 [季度末] ZeroFox 平台交易的關鍵要求功能。

One of our long-standing ZeroFox customers, a Fortune 50 media and technology company, also engaged with ZeroFox Response for the first time over their legacy incumbent provider. We also were able to drive some improvement in Response win rates by launching marketing campaigns to drive education and the value of the 2 combined businesses. This is an example of how we're leveraging ZeroFox's larger and more established go-to-market capabilities to drive synergies.

我們的 ZeroFox 長期客戶之一，一家財富 50 強的媒體和技術公司，也首次與 ZeroFox Response 合作，而不是他們的傳統現任供應商。我們還通過發起營銷活動來推動教育和 2 家合併業務的價值，從而推動響應贏率有所提高。這是我們如何利用 ZeroFox 更大、更成熟的上市能力來推動協同效應的一個例子。

While we are pleased with this early progress, we know there is still a lot more work ahead of us. Consistent with what we said last quarter, we continue to expect these synergies to become more meaningful in the latter half of this year. Because this is only our second earnings call since going public and some investors are newer to the story, I'd like to spend just a few minutes to provide an overview of external cybersecurity.

雖然我們對這一早期進展感到滿意，但我們知道我們還有很多工作要做。與我們上個季度所說的一致，我們繼續預計這些協同效應將在今年下半年變得更加有意義。因為這只是我們上市以來的第二次財報電話會議，而且一些投資者對這個故事還比較陌生，所以我想花幾分鐘時間概述一下外部網絡安全。

The external cybersecurity category of products helps customers expose, disrupt and respond to threats beyond the device and outside the perimeter. Traditionally, the focus of cybersecurity has been on endpoints and firewalls with the goal of protecting owned assets with internal security controls. However, digital transformation is propelling a proliferation of digital assets and data on external platforms that are outside the control of organizations and not protected by traditional security controls.

外部網絡安全產品類別可幫助客戶暴露、破壞和響應設備之外和外圍的威脅。傳統上，網絡安全的重點一直放在端點和防火牆上，目的是通過內部安全控制來保護自有資產。然而，數字化轉型正在推動外部平台上數字資產和數據的激增，這些平台不受組織控制，也不受傳統安全控制措施的保護。

Examples of these platforms include the surface web, deep and dark web, social media sites, collaboration platforms, code sharing sites and mobile app stores.

這些平台的示例包括表層網絡、深網和暗網、社交媒體網站、協作平台、代碼共享網站和移動應用程序商店。

As business shifts online, the external attack surface for every organization continues to grow, increasing potential financial and reputational risk. And the risk is real. The adversaries are increasingly targeting this external attack surface with phishing attacks, impersonations of companies, brands and executives, account takeovers, frauds and even attacking those exposed external platforms.

隨著業務在線轉移，每個組織的外部攻擊面都在不斷擴大，從而增加了潛在的財務和聲譽風險。風險是真實存在的。對手越來越多地通過網絡釣魚攻擊、冒充公司、品牌和高管、賬戶接管、欺詐甚至攻擊那些暴露的外部平台來瞄準這個外部攻擊面。

At the same time, the volume of threats continues to increase, making it more critical to use actionable threat intelligence for continuous visibility and continuous protection from threats beyond the perimeter.

與此同時，威脅的數量不斷增加，這使得使用可操作的威脅情報來獲得持續可見性和持續保護免受外圍威脅變得更加重要。

The size and scale of the external attack surface is driving a growing need for external cybersecurity solutions. And today, we provide continuous visibility into that entire external attack surface, robust threat intelligence, protection with the ability to disrupt active threats and comprehensive response capabilities to assist with investigations, incidents and breaches.

外部攻擊面的規模和規模正在推動對外部網絡安全解決方案的需求不斷增長。今天，我們提供對整個外部攻擊面的持續可見性、強大的威脅情報、能夠破壞活躍威脅的保護以及全面的響應能力，以協助調查、事件和違規。

So why do we believe that ZeroFox is well positioned to capitalize on this opportunity? Three main reasons. The first is our platform. We believe that solving the external cybersecurity problem requires a platform-based approach. This is exactly what we have and what we will continue to build upon. Our platform combines patented AI-powered analysis, full spectrum threat intelligence, adversary disruption and response capabilities into a single comprehensive solution. Customers want a single pane of glass.

那麼，為什麼我們認為 ZeroFox 能夠很好地利用這個機會呢？三個主要原因。首先是我們的平台。我們認為，解決外部網絡安全問題需要基於平台的方法。這正是我們所擁有的，也是我們將繼續發展的基礎。我們的平台將獲得專利的人工智能分析、全方位威脅情報、對手破壞和響應能力結合到一個綜合解決方案中。客戶需要單一的管理平台。

The second reason is scale. We believe that the scale at which we operate and disrupt threats on a daily basis for our customers represents a competitive advantage. We also believe that our growing size and customer base will increase this scale advantage over time.

第二個原因是規模。我們相信，我們每天為客戶運營和消除威脅的規模代表著競爭優勢。我們還相信，隨著時間的推移，我們不斷增長的規模和客戶群將增加這種規模優勢。

We believe this will be especially true in less predictable macro environments like we're operating in today. And the third reason is our experience and focus. Solving the external cybersecurity problem has been our focus since we founded the company just over 10 years ago. We continue to innovate and deepen our platform to ensure that we have identified and disrupt every external attack.

我們相信，在我們今天所處的不可預測的宏觀環境中尤其如此。第三個原因是我們的經驗和重點。自 10 多年前我們成立公司以來，解決外部網絡安全問題一直是我們的重點。我們不斷創新和深化我們的平台，以確保我們已經識別並破壞了每一次外部攻擊。

Fiscal year '23 was transformational for ZeroFox. We were the only cybersecurity company to go public last year, and we have the capital required to cross over free cash flow breakeven late next year. We raised new growth capital, and with the acquisition of IDX, we strategically expanded our platform to include ZeroFox Response.

23 財年對 ZeroFox 來說是變革性的。我們是去年唯一一家上市的網絡安全公司，我們擁有在明年年底實現自由現金流收支平衡所需的資本。我們籌集了新的增長資本，通過收購 IDX，我們戰略性地擴展了我們的平台，將 ZeroFox Response 包括在內。

As we look to this upcoming fiscal year, we believe that ZeroFox has the resources, scale and platform depth to ensure another successful growth year. At the same time, we believe it's important to pursue this growth in a disciplined way that allows us to make progress towards becoming profitable.

展望即將到來的財政年度，我們相信 ZeroFox 擁有資源、規模和平台深度來確保又一個成功的增長年。與此同時，我們認為以一種有紀律的方式追求這種增長很重要，這樣我們才能在盈利方面取得進展。

Looking forward, I would like to outline our top 3 priorities, and you'll be able to remember these by the simple acronym, F-O-X. First is for focus. We will continue to focus on executing our strategic plan to lead and grow our external cybersecurity platform, capabilities and customer base.

展望未來，我想概述我們的前 3 個優先事項，您將能夠通過簡單的首字母縮略詞 F-O-X 記住它們。首先是為了專注。我們將繼續專注於執行我們的戰略計劃，以領導和發展我們的外部網絡安全平台、能力和客戶群。

Success here will be reflected in quarterly performance metrics with a focus on core growth. Second, O is for optimization. We know that the path to profitability is an important area for focus for investors, and it's a key area of focus for ZeroFox. This year, we will continue to optimize our infrastructure to support our near-term growth while laying the foundation to drive operational efficiencies and leverage. Our goal is to achieve cash flow breakeven late next year.

這裡的成功將反映在以核心增長為重點的季度績效指標中。其次，O是為了優化。我們知道，盈利之路是投資者關注的重要領域，也是 ZeroFox 關注的重點領域。今年，我們將繼續優化我們的基礎設施以支持我們的近期增長，同時為推動運營效率和槓桿率奠定基礎。我們的目標是在明年年底實現現金流收支平衡。

Lastly, X represents X factor. This year, our x-factor will be executing on driving more meaningful synergies and improving our overall cross-selling efforts from our recent acquisitions.

最後，X代表X因素。今年，我們的 x-factor 將執行以推動更有意義的協同效應，並通過最近的收購改進我們的整體交叉銷售工作。

In summary, a strong fourth quarter capped off a transformational year for ZeroFox. And with the continued energy, passion and commitment of our Foxes around the world, I believe that ZeroFox is well positioned to execute on our initiatives and further leverage our platform.

總之，強勁的第四季度為 ZeroFox 的轉型年畫上了句號。憑藉我們在世界各地的 Foxes 持續的活力、熱情和承諾，我相信 ZeroFox 能夠很好地執行我們的計劃並進一步利用我們的平台。

With that, I would like to turn the call over to our CFO, Tim Bender, who will provide more color on our financial performance and our guidance for Q1 and this fiscal year. Tim, the floor is yours.

有了這個，我想把電話轉給我們的首席財務官 Tim Bender，他將為我們的財務業績和我們對第一季度和本財政年度的指導提供更多色彩。蒂姆，地板是你的。

Thanks, Foster. As Foster mentioned, ZeroFox in its fiscal year '23 on a positive note. Before we take a closer look at our Q4 results, I wanted to remind everyone that due to the accounting requirements of the transaction, prior period financials presented reflect only the results of ZeroFox on a stand-alone basis, and do not include the results of IDX. For comparable purposes, we have provided investors with supplemental financial information that includes historical stand-alone financial statements for both ZeroFox and IDX. This information can be found on our Investor Relations website.

謝謝，福斯特。正如 Foster 所提到的，ZeroFox 在其 23 財年取得了積極的成績。在我們仔細查看我們的第四季度業績之前，我想提醒大家，由於交易的會計要求，前期財務報告僅反映 ZeroFox 的獨立業績，不包括IDX。出於比較目的，我們向投資者提供了補充財務信息，其中包括 ZeroFox 和 IDX 的歷史獨立財務報表。這些信息可以在我們的投資者關係網站上找到。

Now let's take a closer look at our Q4 results. With the exception of revenue, unless otherwise stated, all financial results we will discuss today are non-GAAP financial measures. Reconciliations between our GAAP and non-GAAP results can be found in our earnings release.

現在讓我們仔細看看我們第四季度的結果。除收入外，除非另有說明，否則我們今天要討論的所有財務結果都是非 GAAP 財務指標。我們的 GAAP 和非 GAAP 結果之間的調節可以在我們的收益發布中找到。

For Q4, ZeroFox reported revenue of $45.4 million. This exceeded the high end of our incurred Q4 guidance range. Subscription revenue was $16.5 million. Subscription revenue consists of revenue from ZeroFox platform sales. Services revenue was $28.9 million. Services revenue consists of revenue from Response services as well as revenue from recurring and nonrecurring intelligence services.

第四季度，ZeroFox 報告的收入為 4540 萬美元。這超出了我們第四季度指導範圍的上限。訂閱收入為 1650 萬美元。訂閱收入包括來自 ZeroFox 平台銷售的收入。服務收入為 2890 萬美元。服務收入包括來自響應服務的收入以及來自經常性和非經常性情報服務的收入。

As of January 31, our annual recurring revenue was $157 million. ARR primarily consists of platform subscriptions as well as a small amount of recurring intelligent services and $83 million from our large government contract. We ended the quarter with 1,203 subscription customers.

截至 1 月 31 日，我們的年度經常性收入為 1.57 億美元。 ARR 主要包括平台訂閱以及少量經常性智能服務和來自我們大型政府合同的 8300 萬美元。我們在本季度結束時擁有 1,203 名訂閱客戶。

We continue to see a significant opportunity to both land new customers and expand platform capabilities and services within our existing customer base. As Foster mentioned, in fiscal year '23, we saw continued success winning the larger deals. We ended the year with 147 subscription customers with ARR greater than $100,000, representing a year-over-year increase of 25%.

我們繼續看到一個重要的機會，既可以吸引新客戶，也可以在我們現有的客戶群中擴展平台功能和服務。正如 Foster 所提到的，在 23 財年，我們看到了繼續成功贏得更大的交易。截至年底，我們有 147 名 ARR 超過 100,000 美元的訂閱客戶，同比增長 25%。

Turning to gross margin. For the fourth quarter, subscription gross margin was 73%, an increase from last quarter's subscription gross margin of 72%. While there were some positive impacts from increased efficiencies, subscription gross margin also benefited from the timing of investments. From a seasonality perspective, our investments tend to be more heavily weighted to the first half of our fiscal year.

轉向毛利率。第四季度，訂閱毛利率為 73%，高於上一季度 72% 的訂閱毛利率。雖然效率提高帶來了一些積極影響，但訂閱毛利率也受益於投資時機。從季節性的角度來看，我們的投資往往更傾向於我們財政年度的上半年。

Given this, we would expect subscription gross margin to slightly decline in Q1 '24 and then increase moderately over the remainder of the year. While there is a potential for quarter-to-quarter volatility, our goal is to deliver consistent, moderate subscription gross margin improvement on an annual basis as we have done so for several years.

鑑於此，我們預計訂閱毛利率將在 24 年第一季度略有下降，然後在今年剩餘時間內適度增長。雖然季度之間可能存在波動，但我們的目標是像我們多年來所做的那樣，每年實現一致、適度的訂閱毛利率改善。

Total gross margin was 41% compared to 40% last quarter. The improvement in total gross margin was driven primarily by the higher subscription gross margin referenced above. We continue to see opportunities to improve our overall gross margin as we scale our business, drive greater cost efficiencies and our higher margin subscription revenue becomes a greater portion of our overall revenue mix.

總毛利率為 41%，而上一季度為 40%。總毛利率的提高主要是由於上述較高的訂閱毛利率。隨著我們擴展業務、推動更高的成本效率以及我們更高利潤的訂閱收入成為我們整體收入組合的更大一部分，我們繼續看到提高我們整體毛利率的機會。

Turning to operating expenses. Total operating expenses were $26 million in the quarter. When comparing expense levels to last quarter, keep in mind that Q3 was a partial quarter that reflected 3 fewer days of expenses. Setting this aside, the increase in expenses was primarily driven by increased sales commissions, which is typical in Q4 for us, as well as continued investment in R&D and transaction expenses in G&A related to becoming public.

轉向運營費用。本季度總運營費用為 2600 萬美元。將費用水平與上一季度進行比較時，請記住，第三季度是一個部分季度，反映了減少 3 天的費用。撇開這一點不談，費用的增加主要是由於銷售佣金的增加，這對我們來說是第四季度的典型情況，以及與上市相關的 G&A 的研發和交易費用的持續投資。

As we look to Q1 '24, we would expect operating expenses to increase slightly in absolute dollars driven by the timing of professional fees for our annual audit, residual transaction-related filing costs and planned investments that should provide operating leverage in the second half of the year. Our loss from operations was $7.2 million.

當我們展望 24 年第一季度時，我們預計運營費用將以絕對美元計算略有增加，這是由於我們的年度審計專業費用的時間安排、與交易相關的剩餘備案費用以及應在下半年提供運營槓桿的計劃投資推動的那一年。我們的運營損失為 720 萬美元。

Looking at the balance sheet. We ended the quarter with $48 million in cash, $30 million in accounts receivable and $54 million in total deferred revenue. Our total outstanding debt was $174 million, including $157 million in convertible debt. The convertible note has a cash interest rate of 7% and a PIK rate of 8.75%.

看著資產負債表。我們在本季度末擁有 4800 萬美元現金、3000 萬美元應收賬款和 5400 萬美元總遞延收入。我們的未償債務總額為 1.74 億美元，其中包括 1.57 億美元的可轉換債務。可轉換票據的現金利率為 7%，PIK 利率為 8.75%。

Consistent with last quarter, we elected the PIK option for our second interest payment due on March 15. We believe the PIK option continues to provide us the opportunity and flexibility to prudently invest in the growth of our business.

與上一季度一致，我們選擇了 PIK 選項來支付 3 月 15 日到期的第二次利息。我們相信 PIK 選項繼續為我們提供機會和靈活性，以審慎地投資於我們的業務增長。

Turning to cash flow. Cash flow used in operations was $5.3 million.

轉向現金流。運營中使用的現金流量為 530 萬美元。

Now to our outlook. As we indicated last quarter, we are providing revenue and non-GAAP loss from operations guidance for Q1 and fiscal year '24. Our outlook reflects our solid Q4 '23 results, assumes no material changes in the macro environment and consistent demand for our external cybersecurity solutions and does anticipate volatility within our service business. Our outlook also incorporates my prior commentary regarding the trajectory of subscription gross margin and operating expenses for Q1.

現在談談我們的展望。正如我們上個季度所指出的那樣，我們將提供第一季度和 24 財年運營指南的收入和非 GAAP 虧損。我們的展望反映了我們 23 年第四季度的穩健業績，假設宏觀環境沒有重大變化，對我們的外部網絡安全解決方案的需求持續存在，並且確實預計我們的服務業務會出現波動。我們的展望還結合了我之前對第一季度訂閱毛利率和運營費用軌蹟的評論。

For Q1 '24, we currently expect revenue to be in the range of $44.0 million to $44.6 million, and non-GAAP loss from operations to be in the range of $9.8 million to $9.3 million. For fiscal year '24, we currently expect revenue to be in the range of $183 million to $187 million, and non-GAAP loss from operations to be in the range of $29 million to $26 million.

對於 24 年第一季度，我們目前預計收入將在 4400 萬美元至 4460 萬美元之間，非 GAAP 運營虧損將在 980 萬美元至 930 萬美元之間。對於 24 財年，我們目前預計收入將在 1.83 億美元至 1.87 億美元之間，非 GAAP 運營虧損將在 2900 萬至 2600 萬美元之間。

As Foster mentioned earlier, we are focused on the path to profitability, and we continue to expect that we will achieve free cash flow breakeven in the latter part of fiscal year '25.

正如福斯特之前提到的，我們專注於盈利之路，我們繼續預計我們將在 25 財年下半年實現自由現金流盈虧平衡。

With that, we'd like to take your questions. Operator?

有了這個，我們想回答你的問題。操作員？

(Operator Instructions)

（操作員說明）

The first question comes from Joseph Gallo with Jefferies.

第一個問題來自 Joseph Gallo 和 Jefferies。

Obviously, there's a lot of factors that impact the revenue guide between macro and the different components of the business following the transaction. How should we think about ARR growth trending versus revenue growth, which is probably a truer reflection of the health of the business?

顯然，有很多因素會影響交易後宏觀和業務不同組成部分之間的收入指南。我們應該如何看待 ARR 增長趨勢與收入增長，這可能更真實地反映了業務的健康狀況？

Joe, this is Tim. Yes, I mean, if you think about our overall growth, the subscription side of the business does grow a little bit faster. So you would expect that the ARR would grow a little bit ahead of our overall total revenue growth.

喬，這是蒂姆。是的，我的意思是，如果你考慮我們的整體增長，業務的訂閱方面確實增長得更快一些。因此，您會預計 ARR 的增長會略高於我們整體總收入的增長。

Okay. That's helpful. And then maybe just, Tim, while I have you, just talk to the puts and takes of the guidance. Your revenue guidance, I would believe, appears prudent. I mean you just did 17% growth. And I think your full year guide implies you're exiting the year at mid-single digits. So one, how should we think about your guidance methodology? And two, maybe as we move beyond these macro headwinds, how should we think about the sustainable growth rate of the business?

好的。這很有幫助。然後也許只是，蒂姆，當我有你的時候，就談談指導的觀點。我相信，您的收入指導似乎是審慎的。我的意思是你剛剛實現了 17% 的增長。而且我認為你的全年指南意味著你將以中個位數退出這一年。那麼，我們應該如何考慮您的指導方法？第二，也許當我們超越這些宏觀逆風時，我們應該如何考慮業務的可持續增長率？

Yes. So I guess if we get into methodology and philosophy, the first thing, we have the OPM contract that certainly weighs as an anchor on the overall growth rates, obviously, a very consistent cash flow generating contract, but does weigh on overall growth. Again, subscription growth, that line of the business is the strongest performer. And I think you'll see that continue through Q1 in the fiscal year.

是的。所以我想如果我們進入方法論和哲學，首先，我們有 OPM 合同，它肯定是整體增長率的錨點，顯然，這是一個非常穩定的現金流產生合同，但確實對整體增長產生了壓力。同樣，訂閱增長，該業務線是表現最強勁的。我認為你會看到這種情況會持續到本財年的第一季度。

And then we're just really mindful right now of our -- the services business. Obviously, acquisition is fairly new for us, and there's a bit more volatility in that line of business as it relates to the service revenue -- or the subscription revenue, excuse me.

然後我們現在非常關注我們的服務業務。顯然，收購對我們來說是相當新的，而且與服務收入或訂閱收入相關的業務線有更多的波動，對不起。

Awesome. And then maybe if I can just sneak in one more. Foster, what surprised you in your first quarter as a public company? And then maybe focusing on the F in Fox, what are the inputs to the growth algorithm that you're factoring in? And what are the biggest opportunities for growth in fiscal '24?

驚人的。然後也許如果我能再偷偷溜進去一次。福斯特，作為一家上市公司，第一季度有什麼讓你感到驚訝的？然後也許關注 Fox 中的 F，您考慮的增長算法的輸入是什麼？ 24 財年最大的增長機會是什麼？

Yes. Thanks, Joe. Well, I mean, outside of the fact that we had a near tech banking melt down 72 hours ago, throwing a wrench days before our first public earnings call. I think we had a strong Q4 performance. As Tim iterated, we beat the high end of our guidance range. I'm pleased with what the team is doing, but we have meaningfully more in synergies available to us. But we're being mindful of the growth that we project this year given this uncertainty.

是的。謝謝，喬。好吧，我的意思是，除了 72 小時前我們的科技銀行業務幾乎崩潰，在我們第一次公開財報電話會議前幾天引發了混亂之外。我認為我們的第四季度表現強勁。隨著 Tim 的迭代，我們超過了指導範圍的上限。我對團隊正在做的事情感到滿意，但我們有更多有意義的協同作用可供我們使用。但鑑於這種不確定性，我們正在關注我們今年預計的增長。

And certainly, the last 72 hours, adding a new element of uncertainty in the macro environment that we have. If you look back at the growth numbers that we did put up for Q4, Tim mentioned that our subscription businesses far outpacing the rest of our businesses in terms of growth rate. And I'd like to draw another proof point towards here is the growth in large customers.

當然，過去 72 小時，在我們所擁有的宏觀環境中增加了新的不確定因素。如果你回顧一下我們為第四季度提供的增長數字，蒂姆提到我們的訂閱業務在增長率方面遠遠超過其他業務。我想在這裡得出另一個證明點是大客戶的增長。

I mean our growth in large customers over $100,000 in ARR is also outpacing our overall growth. That's a positive factor that I'd like to make sure that everybody's cognizant of is when in general cybersecurity customers pay more for a solution set, we believe that shows that there is a demonstratable problem that's out there and that we have enough trust from our customers to solve it on their behalf. And so that's a very important metric that we keep a close eye on.

我的意思是我們在 ARR 超過 100,000 美元的大客戶中的增長也超過了我們的整體增長。這是一個積極的因素，我想確保每個人都認識到，當一般網絡安全客戶為解決方案集支付更多費用時，我們認為這表明存在一個可以證明的問題，並且我們有足夠的信任來自我們的客戶代為解決。因此，這是我們密切關注的一個非常重要的指標。

(Operator Instructions) Our next question comes from Brad Reback with Stifel.

（操作員說明）我們的下一個問題來自 Stifel 的 Brad Reback。

Great. Foster, you indicated some early synergies on cross-selling with IDX. Can you maybe give us a sense of where the sales force is in training? And is everyone fully up to speed or is there still opportunity there?

偉大的。福斯特，你指出了與 IDX 交叉銷售的一些早期協同作用。您能否讓我們了解一下銷售人員的培訓情況？每個人都完全跟上速度了嗎？還是還有機會？

Yes. I appreciate the question, Brad. We have sales kickoff in 48 hours. And so we're using that as the foundation as we do every year to reenable, reestablish the position, reanchor any of our pricing changes that we have. We're using that as a meaningful catalyst to accelerate the revenue synergies for the acquisition of IDX this year.

是的。我很欣賞這個問題，布拉德。我們將在 48 小時內開始銷售。因此，我們每年都以此為基礎來重新啟用、重新建立位置、重新錨定我們擁有的任何定價變化。我們將其用作有意義的催化劑，以加速今年收購 IDX 的收入協同效應。

We did, however, see some nice, what I'd call, early synergies in Q4 that we mentioned. The release of this new PII disruption service capability in our platform was a meaningful win from multiple customer opportunities in Q4. I think we were positively surprised at how fast those deals move through the pipeline and the traction and the demand that we saw from those customers.

然而，我們確實看到了一些不錯的，我稱之為我們提到的第四季度的早期協同效應。在我們的平台中發布這種新的 PII 中斷服務功能是在第四季度贏得多個客戶機會的一次有意義的勝利。我認為我們對這些交易通過管道的速度以及我們從這些客戶那裡看到的牽引力和需求感到非常驚訝。

And those were just small single-digit percentages of the total net new customers we acquired in Q4. And so I think our saturation of opportunity is really just looking at a couple of points of our total customer base. There's a lot of opportunity, upside and white space that we anticipate tackling this year with the team from IDX and the technologies that are in our platform now.

這些只是我們在第四季度獲得的淨新客戶總數中很小的個位數百分比。所以我認為我們的機會飽和實際上只是在看我們總客戶群的幾個點。我們預計今年將與 IDX 的團隊和我們平台中的技術一起解決很多機會、優勢和空白。

That's great. And then, Tim, you had mentioned some seasonality on expenses. How about helping us with seasonality on cash flow?

那太棒了。然後，蒂姆，你提到了支出的一些季節性。如何幫助我們處理現金流的季節性？

Sure. I mean I think typical for the ZeroFox in our history, I know it's a short history for you guys, but Q1 has always been our most challenged quarter from a cash flow standpoint and wouldn't expect that this year would be different, but just like the expense flow, cash flow tends to perform throughout the year and getting better each quarter, and we would expect that to happen again this year.

當然。我的意思是，我認為 ZeroFox 在我們的歷史上很典型，我知道這對你們來說是一段短暫的歷史，但從現金流的角度來看，第一季度一直是我們最具挑戰性的季度，預計今年會有所不同，但只是與費用流一樣，現金流往往全年表現良好，每個季度都在好轉，我們預計今年會再次發生這種情況。

(Operator Instructions) The next question comes from Yi Fu Lee with Cantor.

（操作員說明）下一個問題來自 Yi Fu Lee 和 Cantor。

Congrats on the strong finish, Foster and Tim, of course as a public company. A couple of questions for Foster or Tim. Starting with the IDX, I was wondering if you guys could give us some updates on revenue synergy generations from the platform, upsell, cross-sell?

祝賀 Foster 和 Tim，當然是作為一家上市公司，取得了優異的成績。有幾個問題要問 Foster 或 Tim。從 IDX 開始，我想知道你們是否可以向我們提供一些有關平台、追加銷售、交叉銷售的收入協同生成的最新信息？

I know, Foster, you mentioned about a deal -- a joint deal between ZeroFox and IDX, the media company. Wonder if you could double-click on that one for us on cross-sell revenue synergies?

我知道，福斯特，你提到了一筆交易——ZeroFox 和媒體公司 IDX 之間的一項聯合交易。想知道您是否可以為我們雙擊關於交叉銷售收入協同效應的那個？

Good morning, Yi. For better or worse, in terms of revenue synergies, I think it was minimal in Q4. We are excited to see, what I call, feature demand within the platform that accelerated sales cycles, but for me to say that just because of that feature alone, we won those net deals would probably be doing our platform a disservice as a whole. Where I see revenue synergies really manifesting itself here this fiscal year will be an overall pipeline and demand generation improvement. We are seeing consistent trends from Q4, although we're being mindful of what this year could bring in terms of the macro.

早安，伊。無論好壞，就收入協同效應而言，我認為它在第四季度微乎其微。我們很高興看到，我稱之為平台內加速銷售週期的功能需求，但對我來說，僅僅因為這個功能，我們贏得了這些淨交易可能會對我們的平台整體造成損害。我認為本財年真正體現收入協同效應的地方將是整體管道和需求生成的改善。我們看到了第四季度的一致趨勢，儘管我們正在關註今年在宏觀方面可能帶來的影響。

And then outside of that, we mentioned as we were getting ready to go public, the very small overlap in customers that we had as an organization. Let me put on record, it was about 5% or less total customers that overlap between the 2 organizations, which by definition leaves us a lot of upside for cross-sell and upsell this year. And that's something that we think about when we talk about our X factor is top of mind for performance.

然後除此之外，我們在準備上市時提到，作為一個組織，我們在客戶方面的重疊非常小。讓我記錄一下，這兩個組織之間重疊的客戶總數約為 5% 或更少，根據定義，這給我們今年的交叉銷售和追加銷售留下了很大的優勢。當我們談論我們的 X 因素是性能的首要考慮因素時，我們會考慮這一點。

And a quick math would lead you to believe that if you look at our subscription ARR, any meaningful improvement in cross-sell, upsell would see an incremental accelerated growth rate there for ARR.

一個快速的數學會讓你相信，如果你看看我們的訂閱 ARR，交叉銷售的任何有意義的改進，追加銷售都會看到 ARR 的增量加速增長率。

That makes sense, Foster. And then on the multi 6-figure deal, we understand ZeroFox is coming from a platform play. I was wondering, you mentioned about (inaudible), what type of solutions did you (inaudible)? How long is the deal cycle? Was the customer concerned with the cost? They want to lower their TCO, total cost of ownership, that's why they went to ZeroFox. Can you give us more color on that multi-6-figure within (inaudible) deal?

這是有道理的，福斯特。然後在多 6 位數的交易中，我們了解到 ZeroFox 來自平台遊戲。我想知道，你提到過（聽不清），你（聽不清）是什麼類型的解決方案？交易週期有多長？客戶是否關心成本？他們想降低他們的 TCO，總擁有成本，這就是他們選擇 ZeroFox 的原因。你能給我們更多關於（聽不清）交易的多 6 位數的顏色嗎？

Yes. Yi, thanks for that question. A couple of thoughts come to mind. We're in a competitive market. And I think that is -- that's a good thing for cybersecurity as a whole to have multiple solutions and multiple options that allows customers to get educated on the problem set from multiple points of view. But as an organization, we've been working on this problem longer than our competitors. We've been focused on this problem longer than our competitors. And I think the market is really starting to take note of the differentiated capability set and our multi-pillar strategy within our platform.

是的。易，謝謝你提出這個問題。我想到了幾個想法。我們身處競爭激烈的市場。我認為這對整個網絡安全來說是一件好事，擁有多種解決方案和多種選擇，讓客戶能夠從多個角度了解問題集。但作為一個組織，我們解決這個問題的時間比我們的競爭對手要長。我們關注這個問題的時間比我們的競爭對手更長。而且我認為市場真的開始注意到我們平台內的差異化能力集和多支柱戰略。

And it's something that's been asked for by our customers. When I think about innovation, we're a customer-first organization and our path to innovation really is built on top of customer feedback and customer demand. The competitors that we see, especially in the enterprise, just about every enterprise deal we do is competitive in nature. Come to this from maybe one of our pillars, maybe they're a DRP pillar or threat intelligence pillar but what we see is some folks don't feel like they're getting the true value.

這是我們的客戶所要求的。當我想到創新時，我們是一個客戶至上的組織，我們的創新之路確實建立在客戶反饋和客戶需求之上。我們看到的競爭對手，尤其是在企業中，幾乎我們所做的每一筆企業交易本質上都是競爭性的。也許我們的支柱之一，也許他們是 DRP 支柱或威脅情報支柱，但我們看到的是，有些人並不覺得他們正在獲得真正的價值。

We have threat intelligence companies that we displace on a regular basis, where our constant feedback we hear is they're too expensive, and we're tired of searching for data or intelligence. We want to understand what's actionable, and we want somebody to help us take action immediately. We don't want more work where we need to constantly search for answers.

我們定期更換威脅情報公司，我們不斷聽到的反饋是它們太貴了，我們厭倦了搜索數據或情報。我們想了解什麼是可行的，我們希望有人幫助我們立即採取行動。我們不希望在需要不斷尋找答案的地方做更多的工作。

And I think our customers appreciate the proactive nature and protective nature of our platform as opposed to a search and find platform.

而且我認為我們的客戶欣賞我們平台的主動性和保護性，而不是搜索和查找平台。

That makes sense. And then I'm going to end off, Tim, on like 2 more financial questions, if I may, is like the breakup between your existing deals, we understand the macro conditions, right? Any percentage breakdown between new logos versus existing? And the last one is about the investments, you mentioned it's going to be first half heavy -- first half of fiscal '24 heavy. You have about 800 Foxes at the moment. What's your hiring plans, investment plans, et cetera? And that's it for me.

這就說得通了。然後我要結束了，蒂姆，再談兩個財務問題，如果可以的話，就像你現有交易之間的分手，我們了解宏觀條件，對吧？新徽標與現有徽標之間有任何百分比細分嗎？最後一個是關於投資，你提到這將是上半年的重磅——24 財年的上半年。你現在有大約 800 只狐狸。您的招聘計劃、投資計劃等是什麼？對我來說就是這樣。

Yi, would you mind clarifying the first part of that question again? We have...

易，你介意再澄清一下那個問題的第一部分嗎？我們有...

On the new and existing deals, like how much of the revenue generation is coming from new logo versus your existing customer base? And then the second part is your investment plans. You have about 800 Foxes right now, I was wondering your investment plans for the first half -- throughout the year, actually?

在新的和現有的交易中，比如有多少收入來自新徽標而不是您現有的客戶群？然後第二部分是您的投資計劃。你現在有大約 800 只 Foxes，我想知道你上半年的投資計劃——實際上是全年？

So yes. So if we think about like the revenue mix, again, I think it's in line with our ARR growth that we talked about from new customers and existing customers. Most of our revenue does come from existing customers. We have a nice base. And we're adding roughly maybe 100 new customers a quarter, but if you think about that number. So it's still mostly aligned to our existing base because we have a strong customer base in that regard.

所以是的。因此，如果我們再次考慮收入組合，我認為這與我們從新客戶和現有客戶那裡談到的 ARR 增長是一致的。我們的大部分收入確實來自現有客戶。我們有一個很好的基礎。我們每個季度大約增加 100 個新客戶，但如果你考慮一下這個數字。所以它仍然主要與我們現有的基礎保持一致，因為我們在這方面擁有強大的客戶群。

And then I would say maybe on the hiring plan, I mean I think our hiring without giving the exact numbers, it's, again, going to be balanced where we need to see the growth in the company and support the growth. So as we grow our revenue, we'll grow our services delivery commensurate with our margin to keep that in line. Again, talking about adding moderate growth over the course of the year.

然後我會說也許關於招聘計劃，我的意思是我認為我們的招聘沒有給出確切的數字，它再次將在我們需要看到公司增長和支持增長的地方保持平衡。因此，隨著我們收入的增長，我們將增加與我們的利潤相稱的服務交付，以保持一致。再次，談論在一年中增加適度增長。

And then I think G&A will kind of moderate as we become more mature. Sales and marketing is as we add customers and as we continue to grow, we'll have to add capacity in our sales and marketing functions to handle new customers, handle our growth in customers and to drive growth for the upcoming and future years.

然後我認為隨著我們變得更加成熟，G&A 會有所緩和。銷售和營銷是隨著我們增加客戶和繼續增長，我們將不得不增加我們的銷售和營銷職能的能力來處理新客戶，處理我們的客戶增長並推動未來幾年的增長。

And then R&D is just -- we want to be balanced in our investment. Again, we have a strong and robust platform, but as Foster mentioned, there's competition out there. So we want to continue to innovate as well as keep our platform, strengthening, keep our strong platform as it's a driver of our revenue.

然後研發就是——我們希望在我們的投資中保持平衡。同樣，我們有一個強大而穩健的平台，但正如福斯特所說，那裡存在競爭。因此，我們希望繼續創新並保持我們的平台，加強，保持我們強大的平台，因為它是我們收入的驅動力。

So I think we're balanced there. I don't think we're over investing in growth. I think it's the right balance to handle our revenue growth.

所以我認為我們在那裡是平衡的。我認為我們並沒有過度投資於增長。我認為這是處理我們收入增長的正確平衡。

I show no further questions at this time. I would now like to turn the conference back to Foster for closing remarks.

我現在沒有進一步的問題。我現在想把會議轉回福斯特作閉幕詞。

Thank you, operator. As you can tell, we are very excited about the opportunity in front of us. I want to emphasize that we are focused on taking a mindful approach that allows us to capitalize on the growth opportunity we see this year, while also making progress on our path to profitability. Again, I want to thank everybody for joining us today and a special thanks for those that asked questions. Have a great day. Cheers.

謝謝你，運營商。如您所知，我們對擺在我們面前的機會感到非常興奮。我想強調的是，我們專注於採取謹慎的方法，使我們能夠利用今年看到的增長機會，同時在實現盈利的道路上取得進展。再次，我要感謝大家今天加入我們，特別感謝那些提出問題的人。祝你有美好的一天。乾杯。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。