Zuora Inc (ZUO) 2023 Q4 法說會逐字稿

Ladies and gentlemen, good afternoon. My name is Abbie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Zuora Fiscal Year 2023 Fourth Quarter Earnings Conference Call. Today's conference is being recorded. (Operator Instructions)

女士們，先生們，下午好。我叫 Abbie，今天我將擔任你們的會議接線員。在這個時候，我想歡迎大家參加 Zuora 2023 財年第四季度財報電話會議。今天的會議正在錄製中。 （操作員說明）

And I will now turn the conference over to Luana Wolk, Vice President of Investor Relations. You may begin.

我現在將會議轉交給投資者關係副總裁 Luana Wolk。你可以開始了。

Thank you. Good afternoon, and welcome to Zuora's Fourth Quarter Fiscal 2023 Earnings Conference Call. On the call today, we have Tien Tzuo, Zuora's Founder and Chief Executive Officer; Todd McElhatton, Zuora's Chief Financial Officer; Robbie Traube, our President and Chief Revenue Officer, will also be joining us for the Q&A session.

謝謝。下午好，歡迎來到 Zuora 2023 財年第四季度收益電話會議。在今天的電話會議上，我們有 Zuora 的創始人兼首席執行官 Tien Tzuo； Zuora 首席財務官 Todd McElhatton；我們的總裁兼首席營收官 Robbie Traube 也將加入我們的問答環節。

During today's call, we will make statements that represent our expectations and beliefs concerning future events that may be considered forward-looking under federal securities laws. These statements reflect our views only as of today and should not be relied upon as representative of our views as of any subsequent date. We disclaim any obligation to update any forward-looking statements or outlook. These statements are subject to several risks and uncertainties that could cause actual results to differ materially from expectations.

在今天的電話會議中，我們將發表聲明，代表我們對根據聯邦證券法可能被視為前瞻性的未來事件的期望和信念。這些聲明僅反映我們截至今天的觀點，不應被視為代表我們在任何後續日期的觀點。我們不承擔任何更新任何前瞻性陳述或展望的義務。這些陳述受多種風險和不確定因素的影響，這些風險和不確定因素可能導致實際結果與預期存在重大差異。

For further discussion of the material, material risks and other important factors that could affect our financial results, please refer to our filings with the SEC. And finally, unless otherwise noted, all numbers, except revenue mentioned today are non-GAAP. You can find a reconciliation from GAAP to non-GAAP results in today's press release. Our results, press release and a replay of today's call can be found on Zuora's Investor Relations page at investor.zuora.com.

有關可能影響我們財務業績的材料、材料風險和其他重要因素的進一步討論，請參閱我們向美國證券交易委員會提交的文件。最後，除非另有說明，除今天提到的收入外，所有數字均為非 GAAP。您可以在今天的新聞稿中找到從 GAAP 到非 GAAP 結果的調節。我們的結果、新聞稿和今天電話會議的重播可以在 Zuora 的投資者關係頁面 investor.zuora.com 上找到。

Now I'll turn the call over to you, Tien.

現在我會把電話轉給你，Tien。

Thank you, Luana, and thank you, everyone, for joining us. Welcome to Zuora's Fourth Quarter Fiscal 2023 Earnings Call.

謝謝你，Luana，也謝謝大家加入我們。歡迎來到 Zuora 2023 財年第四季度財報電話會議。

I want to start by thanking our ZEOs for delivering another solid quarter. It's another quarter where we can in ahead of guidance across our operating metrics, including revenue, net dollar retention, free cash flow and non-GAAP operating income. In the fourth quarter, subscription revenue grew by 20% in constant currency and 16% as reported. ARR grew 16% as reported and net dollar retention ended the year at 108%.

首先，我要感謝我們的 ZEO 帶來了又一個穩健的季度。這是另一個季度，我們可以在我們的運營指標方面領先於指導，包括收入、淨美元保留、自由現金流和非 GAAP 營業收入。第四季度，訂閱收入按固定匯率計算增長了 20%，據報導增長了 16%。據報導，ARR 增長了 16%，年末淨美元保留率為 108%。

We remain bullish on our long-term vision and growth potential. Companies continue to come to Zuora because they see the need for our mission-critical solutions. And we continue to execute against the strategy that we laid out at Investor Day back in April 2021. A strategy anchored on moving upmarket, landing and expanding within our accounts and leveraging our ecosystem of system integrators.

我們仍然看好我們的長期願景和增長潛力。公司繼續選擇 Zuora，因為他們看到了對我們的關鍵任務解決方案的需求。我們將繼續執行我們在 2021 年 4 月投資者日制定的戰略。該戰略立足於向高端市場轉移，在我們的賬戶內著陸和擴張，並利用我們的系統集成商生態系統。

But we remain sharply focused on our growth, as we highlighted last quarter, we're also putting more weight on profitability in free cash flow given the current macroeconomic environment. In the year ahead, we are committing to strong improvement of free cash flow year-over-year, and we will closely manage our stock-based compensation. Todd will discuss this in more detail later in the call.

但正如我們上個季度強調的那樣，我們仍然非常關注我們的增長，鑑於當前的宏觀經濟環境，我們也更加重視自由現金流的盈利能力。來年，我們致力於逐年大幅改善自由現金流，並將密切管理我們的股票薪酬。托德將在稍後的電話會議中更詳細地討論這個問題。

But first, let me start with what we're seeing in the macro environment. Over the past quarter, we started seeing buyer behavior stabilize, especially in our installed base. While the uncertainty we saw in buyer behavior at the end of Q3 has not disappeared, it certainly has lessened. Even as companies settled into this extended period of higher interest rates and lower macroeconomic growth, they continue to prioritize digital transformation. They continue to launch and scale recurring revenue businesses, and they continue to pursue growth in new revenue streams through these new digital services. As an example, the majority of deals that were pushed at the end of our third quarter, ultimately closed in Q4. In addition, we saw our win rates also improve quarter-over-quarter.

但首先，讓我從我們在宏觀環境中看到的情況開始。在過去的一個季度中，我們開始看到買家行為趨於穩定，尤其是在我們的已安裝基礎中。雖然我們在第三季度末看到的買家行為的不確定性並未消失，但肯定已經減少。即使企業進入了利率較高和宏觀經濟增長放緩的長期階段，他們仍將數字化轉型放在首位。他們繼續推出和擴大經常性收入業務，並繼續通過這些新的數字服務尋求新收入流的增長。例如，大多數在第三季度末推進的交易最終在第四季度完成。此外，我們看到我們的贏率也比上一季度有所提高。

Let me give you some examples.

讓我舉幾個例子。

In Q4, AVEVA a global leader in industrial software and one of the largest software companies in the U.K. with more than $1 billion in annual revenue. They selected Zuora to help accelerate its AVEVA Flex subscription service with the goal of having more than 80% of its business coming through recurring revenue in just the years.

在第四季度，AVEVA 是工業軟件的全球領導者，也是英國最大的軟件公司之一，年收入超過 10 億美元。他們選擇 Zuora 來幫助加速其 AVEVA Flex 訂閱服務，目標是在短短幾年內讓超過 80% 的業務來自經常性收入。

Donnelley Finance Solutions, otherwise known as DFIN, a leader in risk and compliance solutions came to us last quarter after outgrowing their homegrown system. After a comprehensive review, they chose Zuora's full order-to-revenue suite of products, following the implementation of Billing, Revenue and Zuora platform. DFIN, we'll be able to better manage multiple complex revenue streams from onetime transactions to recurring subscriptions and advanced consumption models. Finally, Scout24, who operates ImmoScout24 in Germany and Austria. This is a residential and commercial real estate online marketplace powering more than 20 million monthly users. And they came to Zuora because we were the best option available to handle the fast growth and scale they needed.

Donnelley Finance Solutions（也稱為 DFIN）是風險和合規解決方案領域的領導者，在他們自己開發的系統超出其規模後，上個季度找到了我們。在全面審查之後，他們選擇了 Zuora 的完整訂單到收入套件，繼而實施了 Billing、Revenue 和 Zuora 平台。 DFIN，我們將能夠更好地管理從一次性交易到定期訂閱和高級消費模型的多個複雜收入流。最後是在德國和奧地利運營 ImmoScout24 的 Scout24。這是一個住宅和商業房地產在線市場，每月擁有超過 2000 萬用戶。他們之所以選擇 Zuora，是因為我們是應對他們所需的快速增長和規模的最佳選擇。

For these companies and more, we believe that our singular focus here is what gives us a competitive advantage. Now in the past, we've seen large ERP and CRM vendors take multiple runs at copying what we do, only to ultimately retreat. And there are signs that this is happening yet again. When uncertainty looms, big players need to focus on their core competencies. In fact, this quarter, we saw a major SaaS company who declared Zuora to be their solution of choice after throwing in the towel on a large multiyear deployments from using a billing system from a large CRM vendor.

對於這些公司以及更多公司，我們相信我們在這裡的獨特關注給了我們競爭優勢。現在，在過去，我們已經看到大型 ERP 和 CRM 供應商多次嘗試複製我們所做的事情，但最終卻退卻了。有跡象表明這種情況再次發生。當不確定性迫在眉睫時，大公司需要專注於他們的核心競爭力。事實上，本季度，我們看到一家大型 SaaS 公司在放棄使用大型 CRM 供應商的計費系統進行的大型多年部署後宣布 Zuora 是他們的首選解決方案。

No matter the macroeconomic climate, companies still need to manage their quote to revenue processes at scale. And in fact, during fiscal 2023, our cohort of customers paying us over $1 million a year grew by over 33% compared to the prior year. And so against this macroeconomic backdrop, there continues to be clear demand for our technology. Let's talk next about our land-and-expand strategy. You may recall this strategy laid out at our Investor Day back in 2021 is based on the fact that billing and revenue recognition are very sticky products. If we keep our customers happy, if we give them a mission-critical service that they can rely on, they stay with us. In fact, last year, we had the lowest churn rates in our company history as a percentage of entering ARR.

無論宏觀經濟環境如何，公司仍然需要大規模管理報價到收入流程。事實上，在 2023 財年，我們每年向我們支付超過 100 萬美元的客戶群與上一年相比增長了 33% 以上。因此，在這種宏觀經濟背景下，對我們技術的需求仍然很明顯。接下來讓我們談談我們的土地擴張戰略。您可能還記得我們在 2021 年投資者日制定的這一策略是基於這樣一個事實，即計費和收入確認是非常有粘性的產品。如果我們讓客戶滿意，如果我們為他們提供他們可以依賴的關鍵任務服務，他們就會留在我們身邊。事實上，去年，作為進入 ARR 的百分比，我們的流失率是公司歷史上最低的。

Now all this gives us an opportunity to deliver more value to our customers, enabling us to upsell and cross-sell them as we roll out new innovations, and this strategy is working. Let me give you some examples.

現在，所有這一切讓我們有機會為客戶提供更多價值，使我們能夠在推出新的創新產品時向他們追加銷售和交叉銷售，而且這一戰略正在奏效。讓我舉幾個例子。

Less than 6 years ago, we acquired the technology that is now Zuora Revenue, and this continues to be the leading technology for the revenue recognition space, and it is now an important part of our product portfolio. Zuora Revenue product is growing at a deep double-digit rate. We now have over 170 customers live on Zuora Revenue, including with companies like Salesforce and Ford. As of last quarter by combining the scale of Azure and Zuora, Microsoft is now using Zuora's cloud SSP analyzer, an important component of our Zuora Revenue product. And Stellantis, the world's fifth largest automaker of brands like Fiat, Chrysler, Jeep, Maserati, they are using Zuora Billing and Revenue to monetize their connected services offerings.

不到 6 年前，我們收購了現在的 Zuora Revenue 技術，這項技術仍然是收入確認領域的領先技術，現在是我們產品組合的重要組成部分。 Zuora Revenue 產品正以兩位數的速度增長。我們現在有超過 170 位客戶使用 Zuora Revenue，包括 Salesforce 和福特等公司。截至上個季度，通過結合 Azure 和 Zuora 的規模，微軟現在正在使用 Zuora 的雲 SSP 分析器，這是我們 Zuora Revenue 產品的重要組成部分。 Stellantis 是世界第五大汽車製造商，生產菲亞特、克萊斯勒、吉普、瑪莎拉蒂等品牌，他們正在使用 Zuora Billing and Revenue 來通過其互聯服務產品獲利。

We are an integral part of our customers' businesses, and that's especially true for Zuora Revenue in today's climate. If companies are not compliant, if their revenue recognition does not work properly, they cannot close their books.

我們是客戶業務不可或缺的一部分，在當今環境下對於 Zuora Revenue 來說尤其如此。如果公司不合規，如果他們的收入確認不能正常運作，他們就無法結賬。

Or as another example, our latest acquisition, Zephr is also supporting our land-and-expand strategy. It's another opportunity for our customers to grow with us. In less than 6 months, since Zephr joins Zuora, they integrated with us. They have beaten their targets and now their ARR is 35% larger than when we signed a deal. In fact, in Q4, a global media leader with leaders in more than 80 countries selected Zephr to drive their personalized subscriber experiences, such as enhancing their payroll and newsletter capabilities.

或者作為另一個例子，我們最近收購的 Zephr 也在支持我們的土地擴張戰略。這是我們的客戶與我們一起成長的另一個機會。在 Zephr 加入 Zuora 不到 6 個月的時間裡，他們就與我們融合了。他們已經超過了他們的目標，現在他們的 ARR 比我們簽署協議時高出 35%。事實上，在第 4 季度，一家在 80 多個國家/地區擁有領先地位的全球媒體領導者選擇了 Zephr 來推動他們的個性化訂閱者體驗，例如增強他們的薪資和新聞通訊能力。

Finally, this land-and-expand strategy is not solely predicated on acquired technologies. We also continue to consistently launch organic innovations that our customers want. And this past year was no different. In fact, products released in the last 18 months contributed to over 20% of our deals. And here are just some examples of those innovations, unified monetization. We are taking our customers beyond simple pay-as-you-go models. In Q4, we added new advanced consumption models to this capability. With our consumption billing and revenue recognition products, our customers can handle the complexity that comes with these more sophisticated pricing and packaging models.

最後，這種土地擴張戰略並不僅僅基於獲得的技術。我們還繼續不斷推出客戶想要的有機創新。過去的一年也不例外。事實上，過去 18 個月發布的產品占我們交易的 20% 以上。這裡只是這些創新的一些例子，統一貨幣化。我們正在讓我們的客戶超越簡單的現收現付模式。在第四季度，我們為此功能添加了新的高級消費模型。借助我們的消費計費和收入確認產品，我們的客戶可以處理這些更複雜的定價和包裝模型帶來的複雜性。

Or managed services. This is something we're seeing greater adoption for given the current environment. Last quarter, we doubled the number of managed services customers because it saves our customers' time and money. Plus owning everything end to end means we can set the bar even higher to create the right customer experience.

或託管服務。考慮到當前環境，我們正在看到更廣泛的採用。上個季度，我們將託管服務客戶的數量翻了一番，因為這為我們的客戶節省了時間和金錢。此外，擁有端到端的一切意味著我們可以設置更高的標準來創造正確的客戶體驗。

And finally, another innovation we rolled out with Zuora Secure Data Share for Snowflake which extends Azure's data into Snowflake data cloud without any custom integration. This solution is quickly gaining traction since launching just last July. After years and years of focused, product development and continued investment in our innovation engine is clear there is no shortcut to achieved what we have achieved today.

最後，我們推出了另一項創新，即 Zuora Secure Data Share for Snowflake，無需任何自定義集成即可將 Azure 的數據擴展到 Snowflake 數據云中。自去年 7 月推出以來，該解決方案迅速獲得關注。經過多年的專注、產品開發和對我們創新引擎的持續投資，很明顯，要取得今天的成就，沒有捷徑可走。

Finally, system integrators partnerships are a big part of our land-and-expand strategy. In the last fiscal year, our partners consistently brought us into bigger deals. In the last fiscal year, as an example, partner-sourced new business deals were 3x larger than those deals that came without a partner. And those partner-source deals have 3x better close rates. In Q4, almost 80% of all new business deals were partner influenced with the highest average selling price to date. And finally, I'm proud to say we now have over 900 certified consultants helping to bring us into these larger deals.

最後，系統集成商合作夥伴關係是我們土地擴張戰略的重要組成部分。在上一財年，我們的合作夥伴不斷為我們帶來更大的交易。例如，在上一財年，合作夥伴發起的新業務交易比沒有合作夥伴的交易大 3 倍。這些合作夥伴來源的交易的成交率要高出 3 倍。在第四季度，近 80% 的新業務交易受到合作夥伴的影響，平均售價達到迄今為止最高。最後，我可以自豪地說，我們現在有超過 900 名經過認證的顧問幫助我們參與這些更大的交易。

Lastly, as you may have seen in today's announcement, we do have an update to share about our leadership team. Sri Srinivasan, our Chief Product and Engineering Officer, has made a difficult decision to leave Zuora at the end of this month. Sri has been at the helm, ramping up the incredible engine that you heard about earlier on this call. Now Sri's decision aligns with his personal goals, which I fully support. He will be transitioning away from an operator role to a different type of leadership role at a private equity firm. While we've already started the search for a permanent replacement, I am incredibly confident in the team that Sri is leaving behind, as well as the customer-first culture that now permeates the organization and the innovation machine that continues to evolve our technology and launch new offerings at a rapid, rapid pace.

最後，正如您在今天的公告中看到的那樣，我們確實要分享有關我們領導團隊的最新消息。我們的首席產品和工程官 Sri Srinivasan 做出了一個艱難的決定，他將在本月底離開 Zuora。 Sri 一直掌舵，提升了您早些時候在本次電話會議上聽說過的令人難以置信的引擎。現在斯里的決定符合他的個人目標，我完全支持。他將從經營者角色過渡到私募股權公司的不同類型的領導角色。雖然我們已經開始尋找永久替代者，但我對 Sri 即將離開的團隊、現在滲透到組織中的客戶至上文化以及不斷發展我們的技術和創新的創新機器充滿信心。快速推出新產品。

Our Chief Customer Officer, Tom Krackeler, will take over as Chief Product Officer in the interim. Tom is an experienced product development leader who's been with us for almost 8 years.

我們的首席客戶官 Tom Krackeler 將臨時接任首席產品官一職。 Tom 是一位經驗豐富的產品開發領導者，他已經在我們公司工作了將近 8 年。

Thank you, Sri, for your transformative contributions to Zuora over the past 2 years.

感謝您，Sri，感謝您在過去 2 年中為 Zuora 做出的變革性貢獻。

To close out, I want to thank our ZEOs for their dedication as we wrap up another fiscal year. We continue to feel good about our position in the market. Buyer behavior is starting to normalize as customers settle into this new environment. Companies are still coming to us because our technology gives them the agility and capabilities they need.

最後，我要感謝我們的 ZEO 在我們結束另一個財政年度時所做的奉獻。我們繼續對我們在市場上的地位感到滿意。隨著客戶適應這個新環境，買家行為開始正常化。公司仍然來找我們，因為我們的技術為他們提供了所需的敏捷性和能力。

Looking to the new fiscal year, we remain committed to our strategy with an increased focus on balancing growth and profitability.

展望新的財政年度，我們將繼續致力於我們的戰略，更加註重平衡增長和盈利能力。

Now I'll turn the call over to Todd to review our financials. Todd?

現在我會把電話轉給托德來審查我們的財務狀況。托德？

Thank you, Tien. We closed off the year with a solid Q4. As I discussed, going forward, we will focus on a balance of growth and profitability. While we adjusted for the buyer behavior we experienced in Q3, I'm pleased that we accomplished what we said we were going to do. We exceeded our outlook for subscription revenue, total revenue and non-GAAP operating margin for the quarter. We were also above guidance for both DBRR and ARR growth.

謝謝你，天。我們以穩健的第四季度結束了這一年。正如我所討論的，展望未來，我們將專注於增長和盈利能力的平衡。雖然我們針對第三季度的買家行為進行了調整，但我很高興我們實現了我們所說的我們要做的事情。我們超出了本季度訂閱收入、總收入和非 GAAP 營業利潤率的預期。我們也高於 DBRR 和 ARR 增長的指導。

While the macro has not improved materially from Q3, customers are adjusting to the new reality. In fact, we saw the level of uncertainty start to normalize in Q4 with several projects that were on hold from the prior quarter, reaching completion. We expect there may be some delays in decision-making. However, Zuora's products are critical for companies to launch and grow new revenue streams. They are also bringing additional efficiencies, which are especially relevant in the current environment.

雖然宏觀經濟與第三季度相比沒有實質性改善，但客戶正在適應新的現實。事實上，我們看到不確定性水平在第四季度開始正常化，幾個從上一季度擱置的項目即將完成。我們預計決策可能會有所延遲。然而，Zuora 的產品對於公司推出和發展新的收入來源至關重要。它們還帶來了額外的效率，這在當前環境中尤為重要。

Let me give you some more color on our Q4 performance. Subscription revenue was $89.5 million, growing 20% year-over-year in constant currency and 16% as reported, exceeding the high end of our guidance. We continue to experience FX headwinds during the quarter based on the strength of the U.S. dollar. For the full year, subscription revenue ended at $338.4 million, up 20% year-over-year in constant currency and 18% as reported.

讓我給你更多關於我們第四季度表現的顏色。訂閱收入為 8950 萬美元，按固定匯率計算同比增長 20%，報告的增長率為 16%，超過了我們指引的上限。基於美元的強勢，我們在本季度繼續經歷外匯逆風。全年訂閱收入為 3.384 億美元，按固定匯率計算同比增長 20%，據報導增長 18%。

Professional services revenue was $13.5 million, an increase of 1% year-over-year. This represented 13% of our total revenue. We expect professional services revenue to be around 13% of total revenue going forward as we further strengthen our relationship with system integrators. For the full year, services revenue ended at $57.7 million, down 2% year-over-year, aligned with our strategy to leverage our SI partners for implementation services.

專業服務收入為 1350 萬美元，同比增長 1%。這占我們總收入的 13%。隨著我們進一步加強與系統集成商的關係，我們預計未來專業服務收入將佔總收入的 13% 左右。全年服務收入為 5770 萬美元，同比下降 2%，符合我們利用 SI 合作夥伴提供實施服務的戰略。

For Q4, total revenue ended up at the high end of the guide at $103 million, up 17% in constant currency and 14% as reported. Over 1/3 of our revenue is international, which created FX headwinds of approximately $4 million for the quarter. For the full year, total revenue ended at $396.1 million, up 17% in constant currency and 14% as reported. For Q4, non-GAAP subscription gross margin was 80%, remaining flat year-over-year. This was driven by our continued investments in our infrastructure to drive future margin expansion.

對於第四季度，總收入達到指南的高端，達到 1.03 億美元，按固定匯率計算增長 17%，按報告計算增長 14%。我們超過 1/3 的收入來自國際，這在本季度造成了大約 400 萬美元的外匯逆風。全年總收入為 3.961 億美元，按固定匯率計算增長 17%，按報告計算增長 14%。第四季度，非 GAAP 訂閱毛利率為 80%，同比持平。這是由於我們對基礎設施的持續投資以推動未來利潤率的增長。

Non-GAAP professional services gross margin was negative 8%, a 270 basis point improvement year-over-year. This was driven by fewer billable days in the quarter due to the holiday season. Our non-GAAP blended gross margin saw an improvement of 180 basis points year-over-year, ending the quarter at 68%. This illustrates the incremental leverage we've experienced in our model as we benefit from working with our partner channel. Q4 non-GAAP operating income was $2.2 million compared to a non-GAAP operating loss of $0.6 million in the prior year. This resulted in a Q4 non-GAAP operating margin of 2.1%, a 275 basis point improvement over last year.

非 GAAP 專業服務毛利率為負 8%，同比提高 270 個基點。這是由於假日季節導致本季度計費天數減少所致。我們的非 GAAP 混合毛利率同比提高 180 個基點，本季度末為 68%。這說明了我們在與合作夥伴渠道合作中受益時在模型中體驗到的增量槓桿作用。第 4 季度非 GAAP 營業收入為 220 萬美元，而上一年的非 GAAP 營業虧損為 60 萬美元。這導致第四季度非美國通用會計準則營業利潤率為 2.1%，比去年提高了 275 個基點。

Fiscal 2023 marks our first full year of generating non-GAAP profitability with non-GAAP operating income of $2.5 million. This was driven by continued top line growth and disciplined investment in the business. We expect to continue generating non-GAAP operating income on a quarterly basis going forward. Our fully diluted share count at the end of the quarter was approximately 162.3 million shares using both the treasury stock and if-converted methods.

2023 財年是我們實現非 GAAP 盈利的第一個全年，非 GAAP 營業收入為 250 萬美元。這是由持續的收入增長和對業務的嚴格投資推動的。我們預計未來將繼續按季度產生非 GAAP 營業收入。我們在本季度末使用庫存股和 if-converted 方法完全稀釋後的股票數量約為 1.623 億股。

Now let's dive into some of the key metrics. We ended the year with a dollar-based retention or DBRR of 108%, which includes 2 points of FX headwinds. The DBRR was 1 point reduction sequentially and a 2-point reduction year-over-year as reported. While the current buying trends and overall market uncertainty had an impact on our DBRR, we continue to see strong retention rates.

現在讓我們深入了解一些關鍵指標。我們以 108% 的美元保留率或 DBRR 結束了這一年，其中包括 2 個外匯逆風點。據報導，DBRR 連續下降 1 點，同比下降 2 點。雖然當前的購買趨勢和整體市場不確定性對我們的 DBRR 產生了影響，但我們繼續看到強勁的保留率。

In Q4, we again improved our retention rate, and for the full year, we had the lowest churn as a percentage of entering ARR in the company's history. This illustrates how mission-critical and sticky our solutions are. At the end of Q4, we had 773 customers that spend at or above $100,000 in average contract value, up 3% sequentially and up 26% year-over-year.

在第四季度，我們再次提高了保留率，並且在全年中，我們的流失率達到了公司歷史上進入 ARR 的最低水平。這說明了我們的解決方案的關鍵任務和粘性。截至第四季度末，我們有 773 名客戶的平均合同價值達到或超過 100,000 美元，環比增長 3%，同比增長 26%。

In Q4, the $100,000 cohort continued to represent 95% of our business. This metric is less indicative of our overall execution as the cohort has grown since our IPO to become the vast majority of our business. We plan to provide investors with additional customer metrics on our next earnings call.

在第四季度，100,000 美元的人群繼續占我們業務的 95%。這個指標不太能說明我們的整體執行情況，因為自我們首次公開募股以來，這個群體已經成長為我們業務的絕大部分。我們計劃在下一次財報電話會議上為投資者提供額外的客戶指標。

We continue to close a number of large deals, which illustrates our continued success in the enterprise space. This quarter, we closed 6 deals with ACV of $500,000 or more, including 2 deals over $1 million. And these customers are growing with us. Our systems processed over $23.8 billion of billing transaction volume in the fourth quarter, representing 13% growth in constant currency and 12% growth as reported year-over-year.

我們繼續完成一些大型交易，這說明我們在企業領域的持續成功。本季度，我們完成了 6 筆 ACV 為 500,000 美元或以上的交易，其中包括 2 筆超過 100 萬美元的交易。這些客戶與我們一起成長。我們的系統在第四季度處理了超過 238 億美元的計費交易量，按固定匯率計算增長了 13%，同比增長了 12%。

We have noted before that billing transaction volume processed alone is not indicative of our revenue growth for 2 reasons. First, our customers gain cost efficiencies as they scale. Second, given the success of our multiproduct portfolio, billing alone only accounts for a part of our overall revenue growth. Zuora Revenue and Zuora Collect generate significant volume growth year-over-year. Both of which are not reflected in the billing transaction metrics. As a result, it's our intention to revisit our metrics and provide you additional visibility into other products during our next call.

我們之前已經註意到，單獨處理的計費交易量並不能代表我們的收入增長，原因有兩個。首先，我們的客戶隨著規模的擴大而獲得成本效益。其次，鑑於我們多產品組合的成功，僅計費僅占我們整體收入增長的一部分。 Zuora Revenue 和 Zuora Collect 產生了顯著的銷量同比增長。這兩者都沒有反映在計費交易指標中。因此，我們打算在下次通話期間重新審視我們的指標並為您提供對其他產品的更多了解。

Now looking at ARR and free cash flow. At the end of Q4, ARR was $365 million and grew 16% as reported, with about 2 points of headwinds due to FX. Free cash flow was negative $20.1 million for the quarter, which included nonrecurring severance payments associated with the workforce reduction and acquisition-related costs with Zephr. As a reminder, free cash flow can fluctuate on a quarterly basis due to the timing of cash collections and seasonality. We believe it's best to assess our cash flow performance over a longer term. Total CapEx for the quarter was $2.2 million.

現在看看 ARR 和自由現金流。第四季度末，ARR 為 3.65 億美元，據報導增長 16%，其中約 2 個百分點的不利因素來自外匯。本季度自由現金流為負 2010 萬美元，其中包括與 Zephr 的裁員和收購相關成本相關的非經常性遣散費。提醒一下，由於現金收集的時間和季節性，自由現金流可能每季度波動一次。我們認為最好評估我們的長期現金流量表現。本季度總資本支出為 220 萬美元。

Turning to the balance sheet. We ended the quarter with $386 million in cash and cash equivalents, a sequential decrease of $14 million.

轉向資產負債表。我們在本季度末擁有 3.86 億美元的現金和現金等價物，環比減少 1,400 萬美元。

Now let's turn to our financial outlook. With a reminder, that our Q1 has 3 fewer days in comparison to the prior quarter, this creates a headwind of approximately $3 million of subscription revenue compared to the prior quarter.

現在讓我們談談我們的財務前景。提醒一下，與上一季度相比，我們的第一季度減少了 3 天，與上一季度相比，這造成了約 300 萬美元的訂閱收入逆風。

Starting with our Q1 guidance. While the demand for our products continues to grow, we remain prudent on our outlook given the buying behavior we've experienced over the past 2 quarters. That said, we also expect to realize some benefits to our bottom line as a result of our December workforce reduction as well as some other cost-cutting measures.

從我們的第一季度指南開始。雖然對我們產品的需求持續增長，但鑑於過去兩個季度的購買行為，我們對前景保持謹慎。也就是說，由於我們 12 月的裁員以及其他一些成本削減措施，我們還預計會為我們的底線帶來一些好處。

For Q1, we currently expect subscription revenue of $88 million to $89.5 million, representing year-over-year growth of 13% at the midpoint. Professional services revenue of $13 million to $13.5 million. Total revenue of $101 million to $103 million, representing year-over-year growth of 9% at the midpoint. Non-GAAP operating income of $4 million to $5 million and non-GAAP net income per share of breakeven to $0.01 per share, assuming a weighted average shares outstanding of approximately 136.2 million.

對於第一季度，我們目前預計訂閱收入為 8800 萬美元至 8950 萬美元，中點同比增長 13%。專業服務收入為 1300 萬至 1350 萬美元。總收入為 1.01 億美元至 1.03 億美元，按中點計算同比增長 9%。假設已發行股票的加權平均數約為 1.362 億股，非 GAAP 營業收入為 400 萬至 500 萬美元，非 GAAP 每股盈虧平衡淨收入為 0.01 美元。

For the full year, we currently expect subscription revenue of $374 million to $384 million, representing year-over-year growth of 12% at the midpoint. Professional services revenue of $54 million to $56 million. Total revenue of $428 million to $440 million, representing year-over-year growth of 10% at the midpoint. Non-GAAP operating income of $26 million to $31 million and a non-GAAP net income per share of $0.07 to $0.11, assuming a weighted average shares outstanding of approximately 140 million.

對於全年，我們目前預計訂閱收入為 3.74 億美元至 3.84 億美元，中點同比增長 12%。專業服務收入為 5400 萬至 5600 萬美元。總收入為 4.28 億美元至 4.4 億美元，按中點計算同比增長 10%。非 GAAP 營業收入為 2600 萬美元至 3100 萬美元，非 GAAP 每股淨收入為 0.07 美元至 0.11 美元，假設加權平均流通股數約為 1.4 億股。

Turning to our free cash flow. We are committed to operating in a disciplined manner. And for the full year, we currently expect free cash flow to be at least (sic) [more than] $24 million, a significant improvement of over $55 million from fiscal year 2023. We are committed to delivering a minimum of 6% non-GAAP operating margin for the year regardless of the macro environment.

轉向我們的自由現金流。我們致力於以紀律嚴明的方式運營。對於全年，我們目前預計自由現金流至少（原文如此）[超過]2400 萬美元，比 2023 財年顯著增加超過 5500 萬美元。我們承諾提供至少 6% 的非無論宏觀環境如何，當年的 GAAP 營業利潤率。

Turning to dollar-based retention rate and ARR growth. We expect DBRR of 107% to 109% and ARR growth of 12% to 15% for the year. Finally, I would like to provide visibility into stock-based compensation. For fiscal year 2024, we expect to be under 5% in annual share dilution with a mid-term target of 4% per year. For this purpose, dilution is calculated as the number of equity awards granted net of (inaudible) during the fiscal year, divided by the total shares outstanding at the end of the fiscal year.

轉向基於美元的保留率和 ARR 增長。我們預計今年的 DBRR 為 107% 至 109%，ARR 增長為 12% 至 15%。最後，我想介紹一下基於股票的薪酬。對於 2024 財年，我們預計年度股份稀釋率將低於 5%，中期目標為每年 4%。為此，稀釋計算為本財政年度授予的股權獎勵數量減去（聽不清）除以本財政年度末的已發行股份總數。

To close off, while the current macro environment remains challenging, we continue to see benefits from the areas we are focused on. This includes our Billing, Revenue, Collect and Zephr products. We will continue to be disciplined and focused in fiscal 2024. Our plan is to balance growth and profitability while significantly improving free cash flow in delivering the most innovative products to our customers.

總而言之，雖然當前的宏觀環境仍然充滿挑戰，但我們繼續看到我們關注的領域帶來的好處。這包括我們的 Billing、Revenue、Collect 和 Zephr 產品。我們將在 2024 財年繼續保持紀律和專注。我們的計劃是平衡增長和盈利能力，同時顯著改善自由現金流，為我們的客戶提供最具創新性的產品。

With that, Tien, Robbie and I will take your questions, and I'll turn it over to the operator.

有了這個，Tien、Robbie 和我會回答你的問題，然後我會把它交給接線員。

(Operator Instructions) We will take our first question from Adam Hotchkiss with Goldman Sachs.

（操作員說明）我們將從高盛的 Adam Hotchkiss 那裡回答我們的第一個問題。

It would be great to start by digging in a bit more on the customer behavior piece you mentioned with the existing base versus Q3. Todd, I remember you've talked quite a bit about volume commitments being the driver of slowing growth on the Q3 call. When you talk about the business stabilizing, are you referring to this volume commitment dynamic? Or are there other areas of relative stability that we should be aware of when we think about that?

最好先深入了解您提到的現有基礎與第三季度的客戶行為部分。托德，我記得你在第三季度的電話會議上談到了銷量承諾是導致增長放緩的驅動因素。當你談到業務穩定時，你指的是這種數量承諾動態嗎？或者我們在考慮這個問題時是否應該注意其他相對穩定的領域？

Adam, thanks a lot for the question. So we across the board on upsells did see a stabilization. Companies got a little more comfortable with how they thought the year was progressing, and we saw folks have a more normal behavior from a standpoint of not only making commitments on volume but other additional products. That being said, it certainly is muted, and I wouldn't say we were where we were 12 months ago.

亞當，非常感謝這個問題。因此，我們在加售方面的全面發展確實看到了穩定。公司對他們認為這一年的進展方式感到更加自在，我們看到人們從不僅對數量做出承諾而且對其他附加產品做出承諾的角度來看有更正常的行為。話雖如此，它肯定是靜音的，我不會說我們是 12 個月前的樣子。

Okay. Great. That's super helpful. And then on the profitability guidance, I know on the last call, you had mentioned sort of the 6% plus on operating margins. When you think about the guidance that you put out today, what are some of the levers that you think you're still able to pull over the next 6 to 12 months and your willingness to do so to outperform there?

好的。偉大的。這非常有幫助。然後關於盈利指導，我知道在上次電話會議上，你提到了 6% 以上的營業利潤率。當您考慮今天發布的指南時，您認為在接下來的 6 到 12 個月內您仍然可以利用哪些槓桿，以及您願意這樣做以超越那裡的表現？

Again, I think we've been very prudent on how we've been spending and how we're thinking about dollars that we're holding back and that we might put in investments if we see things move forward or if we see the economy continue to be challenged way, we will put those dollars to the bottom line. But we've also got opportunities to make further reductions. I think you probably saw this last quarter that we closed down our Atlanta office, we've shrunk the Boston office. There's other opportunities within the sales and marketing areas to do better.

再一次，我認為我們對我們的支出方式以及我們如何考慮我們持有的美元以及如果我們看到事情向前發展或我們看到經濟我們可能會進行投資的方式一直非常謹慎繼續受到挑戰的方式，我們將把那些美元放在底線。但我們也有機會進一步削減。我想你可能在上個季度看到我們關閉了亞特蘭大辦事處，我們縮減了波士頓辦事處。銷售和營銷領域還有其他機會可以做得更好。

And you're also seeing the on the COGS side, on the subscription piece, we're certainly rationalizing what our hyperscaler spend looks like. There's opportunities there. We're getting more efficient on the support. And last but not least, we've also committed to be profitable on a non-GAAP basis on the professional services. So I think we've still got several levers that we have that we can use during the year.

而且你也看到了在 COGS 方面，在訂閱部分，我們當然正在合理化我們的超大規模支出的樣子。那裡有機會。我們在支持方面的效率越來越高。最後但同樣重要的是，我們還承諾在非 GAAP 基礎上在專業服務上實現盈利。所以我認為我們在這一年中仍然有幾個可以使用的槓桿。

This is Tien here. I'll just add. One of the things I want to make sure does not get lost is because of what we do because of the product that we have because of the customer base that we have, we have the fortune of having a solid customer base in a very sticky, and I think that gives us a level of certainty in these unpredictable times of being able to manage the business, which is fortunate for us.

這是Tien。我補充一下。我想確保不會迷失的一件事是因為我們所做的事情因為我們擁有的產品因為我們擁有的客戶群，我們有幸在一個非常粘性的地方擁有穩固的客戶群，我認為這讓我們在這些不可預測的時期能夠管理業務，這對我們來說是幸運的。

We will take our next question from Chad Bennett with Craig-Hallum.

我們將與 Craig-Hallum 一起接受 Chad Bennett 的下一個問題。

So just try to kind of reconcile and get a sense for the stableness, I guess, you would call it in the fourth quarter, you talked about the majority of deals that pushed from Q3 into Q4, closed, win rates improved, and I think I heard record low churn for the year, which I assume means Q4. And then you just kind of reconciling with the net new add number of over [100,000] of 3 deals. Just kind of how relative to whether you look at a year-over-year basis or whatnot? So how should we view that net new number in the quarter?

所以只是嘗試調和並了解穩定性，我想，你會在第四季度稱之為，你談到了從第三季度推到第四季度的大多數交易，關閉，贏率提高，我認為我聽說今年的客戶流失率創歷史新低，我認為這意味著第四季度。然後你只需與 3 筆交易中超過 [100,000] 的淨新增數量進行核對。只是相對於你是否看年同比或其他什麼？那麼我們應該如何看待本季度的淨新增數字呢？

What we're trying to say is you all see the data out there, you talk to lots of companies. There's certainly a macro-level slowdown in tech. What we were trying to highlight is if you look at what happened for us in Q3 specifically in the month of October, which is in Q3. It felt like -- what we sensed from our buyers, there was a lot more uncertainty in Q3 in October, right? And they weren't sure whether the economy was going to slow down, they weren't sure what the Feds were going to do.

我們想說的是你們都看到了那裡的數據，你們與很多公司交談過。科技領域肯定存在宏觀層面的放緩。我們想要強調的是，如果你看看我們在第三季度發生的事情，特別是在第三季度的 10 月份。感覺就像——我們從我們的買家那裡感覺到，10 月份的第三季度有更多的不確定性，對吧？他們不確定經濟是否會放緩，他們不確定美聯儲將要做什麼。

And while I wouldn't say that the tech industry is back to a growth mode, right, at least the level of uncertainty of what the Fed is going to do and other factors are seem to be lower. And so the uncertainty we saw in the pipe has lessened. I think that's what we're trying to communicate because I know you all have a lot of questions about what's going on with the macro.

雖然我不會說科技行業正在恢復增長模式，但至少美聯儲將要採取的行動和其他因素的不確定性水平似乎較低。因此，我們在管道中看到的不確定性已經減少。我認為這就是我們試圖傳達的內容，因為我知道你們對宏的進展情況都有很多疑問。

I'd like to maybe emphasize a couple of other things. So one, is, remember, we have a land-and-expand strategy. And on the expand strategy, I think it's a really important Tien talked earlier in the call. We saw an increase of customers spending over $1 million with us, that number of customers increased by 33% this year. That's been a huge component. And remember, going back a couple of years ago, I think we absolutely made the right decision to focus on enterprise customers. And we've talked about those customers that we're landing are landing much larger and with a much larger ASP, and so that's one of the things that's also driving growth.

我想強調一些其他事情。因此，請記住，我們有一個土地擴張戰略。關於擴張戰略，我認為 Tien 在早些時候的電話會議中談到了一個非常重要的問題。我們看到在我們這里花費超過 100 萬美元的客戶有所增加，今年客戶數量增加了 33%。這是一個巨大的組成部分。請記住，回到幾年前，我認為我們絕對做出了專注於企業客戶的正確決定。我們已經談到了我們登陸的那些客戶正在登陸更大並且具有更大的 ASP，因此這也是推動增長的因素之一。

We're certainly focused on new business. And I would say the environment still remains cautious and people are being very thoughtful before they make incremental purchasing decisions. But we have a two-pronged strategy here. We're certainly bringing on new customers, and you saw this quarter, we had 6 deals that were over $0.5 million. 2 of those deals were over $1 million. So the lands that we're getting, especially with the SI strategy has moved to larger deals.

我們當然專注於新業務。我要說的是，環境仍然保持謹慎，人們在做出增量購買決定之前會非常深思熟慮。但我們在這裡有一個雙管齊下的策略。我們當然會帶來新客戶，你看到本季度，我們有 6 筆交易超過 50 萬美元。其中 2 筆交易的金額超過 100 萬美元。因此，我們獲得的土地，尤其是 SI 戰略已經轉向更大的交易。

Okay. And then maybe a follow-up, just on the dollar-based net expansion expectation or range for the year. I think it's 107% to 109%, effectively stable with where you ended this year. Todd, how are you thinking about that this year as it relates from the past year in terms of volume growth versus cross-sell, upsell? Any material mix change there in terms of how you're thinking about net expansion?

好的。然後可能是後續行動，只是關於今年基於美元的淨擴張預期或範圍。我認為它是 107% 到 109%，與你今年結束時的水平有效穩定。托德，你如何看待今年與去年相比在銷量增長與交叉銷售、追加銷售方面的關係？就您對淨擴張的看法而言，是否有任何材料組合發生變化？

Yes. So thanks a lot, Chad. So yes, I think you are certainly looking at that range being stable. And I think that also hits the fact that we want to have a balance. We want to be bringing on new business along with expanding our installed base.

是的。非常感謝，乍得。所以是的，我認為您肯定會看到該範圍穩定。我認為這也符合我們想要平衡的事實。我們希望在擴大我們的安裝基礎的同時開展新業務。

From that being said, we're certainly being, I would say, very prudent on how we're thinking about the volume. A big chunk of our business does come from technology. We've seen that slowing down. So we plan for that accordingly. The other thing I would point you out to is another comment that we made earlier in the call is 20% of our incremental billings last year came from products that had been developed in the last 18 months. So I'm going to expect to see things that have come out of the innovation engine this year and things that will be coming out next year, also driving that dollar-based retention. And maybe the last thing I would just say is as I think about that for the year. Remember, especially I think in Q1 of last year, we've got a pretty strong compare that we're lapping. So I think that's why I've given the range of 107% to 109% in for the full year.

話雖這麼說，我想說的是，我們在考慮數量方面肯定非常謹慎。我們業務的很大一部分確實來自技術。我們已經看到這種放緩。所以我們相應地計劃。我要指出的另一件事是我們早些時候在電話會議上發表的另一條評論是，我們去年 20% 的增量賬單來自過去 18 個月開發的產品。因此，我將期待看到今年創新引擎產生的東西以及明年將出現的東西，同時推動以美元為基礎的保留。也許我要說的最後一件事是我對這一年的思考。請記住，尤其是我認為在去年第一季度，我們有一個非常強大的比較，我們正在超越。所以我認為這就是為什麼我給出了全年 107% 到 109% 的範圍。

Got it. Maybe one last one, if I could, sorry. Just in terms of the partner traction you're seeing, and it seems like it's been very strong even in a challenging environment and deal sizes are enormous and win rates are higher, which is all good stuff. Do we have enough time or duration in those deals, those partner-led deals to see kind of what net expansion is of those deals when they annualize and how that looks relative to the current net expansion rate, then I'll hop off.

知道了。也許最後一個，如果可以的話，抱歉。就您所看到的合作夥伴吸引力而言，即使在充滿挑戰的環境中，它似乎也非常強大，交易規模巨大，中標率更高，這都是好事。在這些交易中，我們是否有足夠的時間或持續時間，那些由合作夥伴主導的交易，以了解這些交易在年度化時的淨擴張情況，以及相對於當前淨擴張率的情況，然後我會下車。

Yes. I think the only color that I would give you is when we take a look at some of our cohorts that we've landed over the last couple of years, they've actually had a better rate of dollar-based -- DBRR than what we've seen on maybe some of the older cohorts going back several years.

是的。我想我要給你的唯一顏色是當我們看一下我們在過去幾年中登陸的一些隊列時，他們實際上有更好的基於美元的比率 - DBRR 比什麼我們可能已經看到一些年長的隊列可以追溯到幾年前。

We will take our next question from Brent Thill with Jefferies.

我們將與 Jefferies 一起接受 Brent Thill 的下一個問題。

This is Luv Sodha on for Brent Thill. Maybe one on, I guess, unearned revenue was a little bit lighter than expected. Did you see, I know you mentioned stabilization in the base, but did you see any new deals push from Q4 into future quarters?

這是 Brent Thill 的 Luv Sodha。我猜，也許有一個原因是未實現的收入比預期的要少一些。你有沒有看到，我知道你提到了基數的穩定，但是你有沒有看到任何新的交易從第四季度推進到未來的季度？

Thanks for the question. We absolutely, as we've talked about it, it is a slower environment out there. People are being very thoughtful and deliberate as they're making decisions. So we felt good about some of the things that had slipped into Q3. We closed the majority of those. We closed deals that were in the pipeline for Q4. But as we had planned, and I think we landed right about where we said we were going to, it was a slower quarter for things coming through the pipeline. We expected that, and we put that into our guidance as we move forward for next year. I don't expect there to be a material change in that dynamic as we go through the next several quarters.

謝謝你的問題。正如我們所討論的那樣，我們絕對是一個較慢的環境。人們在做決定時非常深思熟慮。所以我們對第三季度的一些事情感覺很好。我們關閉了其中的大部分。我們完成了第四季度籌備中的交易。但正如我們所計劃的那樣，我認為我們正確地實現了我們所說的目標，對於通過管道的事情來說，這是一個較慢的季度。我們預料到了這一點，並且在我們明年前進的過程中將其納入我們的指導方針。我預計在接下來的幾個季度中，這種動態不會發生重大變化。

Got it. And then Todd, for you. I guess, how would you position this guidance? Is it incorporating macro getting worse, stabilizing or improving? And then, any color on dollar-based net retention, when should it bottom during the year?

知道了。然後是托德，給你。我想，你會如何定位這個指南？它是否包含宏觀變差、穩定或改善？然後，基於美元的淨保留率的任何顏色，它應該在年內甚麼時候觸底？

So, I'd say this about the guidance. We exited the year with $365 million worth of ARR. That's in the bank. The low end of the guidance is $374 million. So that means we've got $9 million of net incremental revenue that we've got to add. And if you take a look at what we've added over the last 6 to 8 quarters, I feel that is a very achievable goal to get even if things worsen to get at the low end. So I feel that we've got a very reasonable guidance that we've given.

所以，我想說的是關於指南。我們以價值 3.65 億美元的 ARR 結束了這一年。那是在銀行里。該指引的下限為 3.74 億美元。所以這意味著我們必須增加 900 萬美元的淨增量收入。如果你看一下我們在過去 6 到 8 個季度中添加的內容，我覺得這是一個非常可以實現的目標，即使情況惡化到低端也是如此。所以我覺得我們已經給出了非常合理的指導。

From a dollar-based retention rate, the things I would say is, going back several years, we invested really big in our customer success programs. We've invested in innovation, making sure that our customers are getting the most out of the platform and our revenue and billing products, and that's absolutely showing results. And I think that shows up in the fact that every quarter, I believe this year, we improved our retention. We had the lowest level of churn since we've been a public company.

從基於美元的保留率來看，我想說的是，回顧幾年，我們在客戶成功項目上投入了大量資金。我們投資於創新，確保我們的客戶從平台以及我們的收入和計費產品中獲得最大收益，這絕對是在顯示結果。我認為這體現在每個季度，我相信今年，我們都提高了保留率。自從我們成為上市公司以來，我們的客戶流失率最低。

And then I'll hit you. We talked about one of the big SaaS companies that had made a decision several years ago should they consolidate on a big CRM platform and move over. And after going through this for multiple years, they took a $5 million write-off and said we're all in on Zuora. They had been using Zuora. It's the right solution. This other solution can't do what we're going to do. And I think that's been consistent with what we've seen.

然後我會打你。我們談到了幾年前做出決定的大型 SaaS 公司之一，他們是否應該在一個大型 CRM 平台上整合併轉移。在經歷了多年之後，他們註銷了 500 萬美元，並表示我們全力支持 Zuora。他們一直在使用 Zuora。這是正確的解決方案。這個其他解決方案不能做我們要做的事情。我認為這與我們所看到的一致。

So remember, we have got the -- our installed base is these large enterprise customers. They're getting bigger and bigger, more and more, all in on Zuora and they're dependent on us for recognizing the revenue, for doing their billing and their collections. And those are mission-critical type things. And SOX compliance. So those are things that you don't make changes lightly on, and we feel really good about our position from a retention standpoint.

所以請記住，我們已經得到了——我們的安裝基礎是這些大型企業客戶。他們變得越來越大，越來越多，都在 Zuora 上，他們依賴我們來確認收入、進行計費和收款。這些都是關鍵任務型的東西。和 SOX 合規性。所以這些是你不會輕易改變的事情，從保留的角度來看，我們對我們的立場感到非常滿意。

This is Tien. I'll just add, I know you've been following us for some time. We're a very different company than a few years ago where the vast majority of our upsells were based on volume. Today, we have a much more balanced ability to grow within our accounts. And that's why we shared the data about 20% of our deals, right, in the past 12 months were based on products that were only recently developed in the last 18 months. And so you'll see we have a much more balanced approach now to grow with our installed base.

這是田。我只想補充一點，我知道你已經關注我們一段時間了。與幾年前相比，我們是一家截然不同的公司，那時我們的絕大部分追加銷售都是基於銷量。今天，我們在賬戶內增長的能力更加平衡。這就是為什麼我們在過去 12 個月中分享了大約 20% 的交易數據，這些交易是基於最近 18 個月才開發的產品。所以你會看到我們現在有一個更加平衡的方法來隨著我們的安裝基礎增長。

We will take our next question from Jacob Stephan with Lake Street Capital Markets.

我們將接受 Lake Street Capital Markets 的 Jacob Stephan 的下一個問題。

Maybe just focusing on the European market. I know you said 33% of your revenue comes from the European market. But I mean what trends are you seeing over there that kind of similar to the U.S?

也許只是專注於歐洲市場。我知道你說過 33% 的收入來自歐洲市場。但我的意思是你在那邊看到了哪些與美國相似的趨勢？

So I'll let Robbie take that. But real quick, Jacob. About 1/3 of our business is international. So that's not all Europe. We've got other presence in Japan and Asia Pacific. But Robbie, maybe if you want to give some color on what we're seeing in Europe.

所以我會讓羅比接受這個。但很快，雅各布。我們大約 1/3 的業務是國際業務。所以這不是整個歐洲。我們在日本和亞太地區還有其他業務。但是羅比，如果你想給我們在歐洲看到的東西一些顏色的話。

Yes. I mean, it has been, as you've seen in other places and players, there's been some softness in EMEA due to the macro. Look, we had the execution actually in our Q4 in that region. And bottom line, we've seen that impact overall, but we're still seeing continued interest in the product. We're still selling products that really provide true value base. Tien mentioned Scout24 as an example in a particular space too. So again, some of that softness has been there, but we continue to see growth there.

是的。我的意思是，正如你在其他地方和玩家所看到的那樣，由於宏觀經濟，歐洲、中東和非洲地區出現了一些疲軟。看，我們實際上是在該地區的第四季度執行的。最重要的是，我們已經看到了總體影響，但我們仍然看到對該產品的持續興趣。我們仍在銷售真正提供真正價值基礎的產品。 Tien 在特定領域也提到了 Scout24 作為示例。因此，同樣，一些軟性已經存在，但我們繼續看到那裡的增長。

Okay. Maybe just focusing on gross margin. What -- so you mentioned there'd be some levers that you could pull to increase the subscription revenue margin. But what -- could you give any more color on what some of those levers might be?

好的。也許只關注毛利率。什麼 - 所以你提到你可以利用一些槓桿來增加訂閱收入利潤率。但是什麼——你能給這些槓桿中的一些可能是什麼提供更多的顏色嗎？

Yes. I would give you maybe three things that we're thinking about. First of all, we are now multi-cloud. So we've got our revenue products spun up on Azure. We then are also using AWS. I believe that gives us opportunity for further leverage. The team has spent -- our engineering team has done a fantastic job of working from a standpoint of how to get much better optimization out of the usage, and we're seeing those spend dollars get more controlled.

是的。我會給你三件我們正在考慮的事情。首先，我們現在是多雲。所以我們在 Azure 上啟動了我們的收入產品。然後我們也在使用 AWS。我相信這為我們提供了進一步發揮作用的機會。團隊花費了——從如何更好地優化使用的角度來看，我們的工程團隊在工作方面做得非常出色，而且我們看到這些花費得到了更多的控制。

And then the last thing is I think there's opportunities as we've spent investments on our support area to again get more efficient there, not only provide better customer satisfaction but also to bring down costs in that area.

然後最後一件事是我認為有機會，因為我們已經在我們的支持領域進行了投資，再次提高了那裡的效率，不僅提供了更好的客戶滿意度，而且還降低了該領域的成本。

And we will take our next question from Andrew DeGasperi with Berenberg.

我們將與 Berenberg 一起接受安德魯·德加斯佩里 (Andrew DeGasperi) 的下一個問題。

I guess just as a follow-up to that kind of competitive win with nameless, I guess, large implementation that was canceled, can you maybe explain a little more like -- yes. Sorry. Can you hear me?

我想就像是那種無名的競爭性勝利的後續行動，我想，大型實施被取消了，你能不能解釋得更像——是的。對不起。你能聽到我嗎？

Yes. Yes, I hear you now.

是的。是的，我現在聽到了。

I was going to just say, like, can you maybe elaborate a little more like what, I mean, it seems pretty drastic to take a kind of charge of that size after so many years investing into a platform. Can you maybe explain like do you get any feedback as to what made them do that?

我只是想說，你能不能詳細說明一下，我的意思是，在對一個平台進行了這麼多年的投資之後，負責這種規模的工作似乎相當激進。你能不能解釋一下，你有沒有得到任何關於是什麼讓他們這樣做的反饋？

Yes. So Andrew, that was a customer actually I knew, and we've had an ongoing dialogue, and basically, we had a situation where the CIO would come in, it was no longer at that organization came in and said, "Hey, I think it makes sense to centralize all on 1 platform." And what they realized the complexities of their business from not only their CPQ product, but the difference from a complexity of the different types of billing that they were going to have could not just get it to work. And it was something they had worked on for multiple years. It was truly a case of, hey, here was a product that had very basic functionality that was not matched at all with what that company needed.

是的。所以安德魯，那是我認識的一個客戶，我們一直在進行對話，基本上，我們遇到了 CIO 進來的情況，不再是那個組織進來說，“嘿，我認為將所有內容集中在一個平台上是有意義的。”他們不僅從他們的 CPQ 產品中意識到他們業務的複雜性，而且從他們將要擁有的不同類型的計費的複雜性中的差異無法讓它發揮作用。這是他們多年來一直致力於的事情。這確實是一個例子，嘿，這是一個具有非常基本功能的產品，與該公司的需求根本不匹配。

And so after trying for several years and putting a lot into it, they finally, came back to us and said, "Hey, we're going to go upgrade to your most recent CPQ." We work with them doing that through our Q3 and Q4. They went live on it. And at that point, then made the decision that they weren't going to continue this futile effort to try to move to a platform that didn't meet their business needs.

因此，在嘗試了幾年並投入了大量精力之後，他們終於回信給我們說，“嘿，我們將升級到你們最新的 CPQ。”我們與他們合作，通過我們的 Q3 和 Q4 來做到這一點。他們繼續使用它。就在那時，他們決定不再繼續這種徒勞的努力，試圖遷移到一個不能滿足他們業務需求的平台。

Yes. I mean, Andrew, this is Tien. I think people just continue to underestimate how complicated billing can be, and we've seen a company like NetSuite before they were acquired by Oracle take 3 runs at trying to build suite billing. Customers aren't happy. And so we think really in this environment where you kind of have to focus on your core.

是的。我的意思是，安德魯，這是 Tien。我認為人們只是繼續低估了計費的複雜性，我們已經看到像 NetSuite 這樣的公司在被 Oracle 收購之前經歷了 3 次嘗試建立套件計費。客戶不高興。因此，我們確實認為在這種您必須專注於核心的環境中。

The good news for us is our core is subscription management. It is billing. It is revenue recognition, it is supporting all these different types of charge models and taxes and rev rec rules. And so we feel really good about our position, and we feel really good that there's any complexity in your business and if you're growing, there certainly will be that ultimately, our technology is very differentiated and people eventually figure that out, and it puts us in a really good position.

對我們來說，好消息是我們的核心是訂閱管理。是計費。它是收入確認，它支持所有這些不同類型的收費模型和稅收以及 rev rec 規則。因此，我們對自己的處境感到非常滿意，而且我們對您的業務中存在任何復雜性感到非常滿意，如果您正在成長，最終肯定會有這種情況，我們的技術非常差異化，人們最終會明白這一點，而且它讓我們處於一個非常好的位置。

I mean, Andrew, I'd just use the analogy. I think anybody can go out and play basketball and shoot the hoops, not anybody -- not everybody can play like a world championship team. And when you start looking at some of the companies that we're working with, they need that world championship team. We have spent 14 years and approaching $1 billion of R&D in delivery to optimize our products for billing and revenue. And that's just really where we're differentiated and why we are the best of breed and why we are the leader in this space.

我的意思是，安德魯，我只是用這個比喻。我認為任何人都可以出去打籃球和投籃，但不是任何人——不是每個人都能像世界冠軍隊那樣打球。當你開始關注與我們合作的一些公司時，他們需要一支世界冠軍團隊。我們花費了 14 年的時間和接近 10 億美元的交付研發費用來優化我們的產品計費和收入。這正是我們真正與眾不同的地方，也是我們成為同類產品中最好的以及我們成為該領域領導者的原因。

That's a good analogy. I guess as a follow-up on the Sri's departure, just wondering what that means for integrating, for example, Zephr within the platform? Do you foresee any challenges on that front or on the kind of incubation of the new products for 2024?

這是一個很好的類比。我想作為 Sri 離開的後續行動，只是想知道這對於在平台中集成例如 Zephr 意味著什麼？您是否預見到這方面或 2024 年新產品孵化類型方面的任何挑戰？

Yes. I would say -- this is Tien here. I would say we don't anticipate any challenges. When Sri came in, he's been fantastic. He came in for a mission. We accomplished that mission. We got our innovation machine going. He created a world-class team with fantastic modern processes. And he leaves behind a great infrastructure, great technology platform, a great team. I have every confidence in the team and fully support his decision. I'll miss him, but I think he leaves us in a really good place.

是的。我會說——我是 Tien。我會說我們預計不會有任何挑戰。當 Sri 進來時，他表現得非常出色。他是來執行任務的。我們完成了那個使命。我們啟動了創新機器。他創建了一支擁有出色現代流程的世界級團隊。他留下了一個偉大的基礎設施、偉大的技術平台和一支偉大的團隊。我對球隊充滿信心，完全支持他的決定。我會想念他，但我認為他給我們留下了一個非常好的地方。

Andrew, one more thing on Zephr is we're really pleased with how they've done. That has overperformed on the top line, we've kept over 90% of the employee, product road map is absolutely on target. And if you take a look at our bottom line from a standpoint of the non-GAAP operating margin, we've absolutely overachieved in Q3 and Q4. So I think we're showing that here was a great tuck-in type of acquisition, that fit really well, and it supports our expand strategy, and we did it in a very disciplined way.

安德魯，關於 Zephr 的另一件事是我們對他們的表現非常滿意。這在頂線表現出色，我們保留了 90% 以上的員工，產品路線圖完全符合目標。如果你從非 GAAP 營業利潤率的角度來看我們的底線，我們在第三季度和第四季度絕對超額完成。所以我認為我們正在展示這是一種很好的收購類型，非常適合，它支持我們的擴張戰略，我們以一種非常有紀律的方式做到了。

We'll take our next question from Joshua Reilly with Needham.

我們將與 Needham 一起接受 Joshua Reilly 的下一個問題。

If you look at customers that are more willing to buy, would you say that they're in more of the media and manufacturing verticals? Or would you also say that like tech is buying out a bit as well?

如果你看看更願意購買的客戶，你會說他們更多地在媒體和製造垂直領域嗎？或者您還會說像科技公司也在買斷一些產品嗎？

Maybe one thing I'd say, Joshua, thanks for the question. It's the mix, right? It's the mix across all of these. We have great wins reading about it from a manufacturing standpoint. There's some large pharma, top-tier automotive like Stellantis, but also in tech, right, some great wins there as well, and then even going into transportation and in information services. So it's the mix across all of these, and we're just proving that out and seeing that more and more.

也許我要說一件事，約書亞，謝謝你提出這個問題。是混音吧？這是所有這些的混合。從製造的角度來看，我們有很大的收穫。有一些大型製藥公司，像 Stellantis 這樣的頂級汽車公司，但也有科技公司，對，那裡也有一些偉大的勝利，然後甚至進入運輸和信息服務領域。所以這是所有這些的混合，我們只是證明了這一點，並且越來越多地看到了這一點。

I think it's only the mix. We've got a good geographic mix, Josh, along with the fact that we're working with enterprise companies and many of these companies, regardless of where they are, they're needing to make transformation. So even though there's a tough environment, there are still companies that are looking forward to what do I need to do to grow my business? What do I need to do to support in the year, next year and the year after? And so just that whole base of customers and where we're focused gives us a lot of opportunity even in a challenging environment.

我認為這只是混合。 Josh，我們有很好的地理組合，而且我們正在與企業公司合作，其中許多公司，無論他們身在何處，他們都需要進行轉型。所以雖然環境很艱難，但還是有公司很期待我需要做些什麼來發展我的事業？今年、明年和後年我需要做什麼來支持？因此，即使在充滿挑戰的環境中，整個客戶群和我們關注的領域也為我們提供了很多機會。

Got it. That's helpful. And then can you just give us a sense of maybe how much are RFPs or deals that you see in the market down year-over-year entering this year versus last year, even just qualitatively, not quantitatively? And how would you characterize your market share position at this point in the year versus a year ago as well? Do you believe that you've gained market share relative to the broader market?

知道了。這很有幫助。然後你能不能讓我們了解一下，你在今年進入市場時看到的 RFP 或交易與去年相比有多少下降，甚至只是定性，而不是定量？與一年前相比，您如何描述今年此時的市場份額地位？您是否相信您已經獲得了相對於更廣闊市場的市場份額？

I'll take that one. And I think the -- look, overall, our pipeline is up, right? And we're looking at it in terms of good buy run as we go forward into -- as we progress in Q1.

我會拿那個。而且我認為 - 總的來說，我們的管道已經啟動，對吧？隨著我們在第一季度取得進展，我們正在從良好的購買運行角度來看待它。

I think overall, we're seeing more traction. And also from a partner perspective, the amount of momentum that we're seeing there and the increase in the source pipeline and influence pipeline we get there is also proving out that momentum too.

我認為總體而言，我們看到了更多的吸引力。而且從合作夥伴的角度來看，我們在那裡看到的勢頭以及我們到達那裡的源管道和影響管道的增加也證明了這種勢頭。

Okay. Got it. And then maybe just one last quick one for Todd. If you look at the guidance for '24, I didn't see a comment in there about how much of the FX headwind assumed in subscription revenue and ARR.

好的。知道了。然後也許只是托德的最後一個快速的。如果你查看 24 年的指南，我沒有看到關於訂閱收入和 ARR 中有多少外匯逆風的評論。

Yes. So I think what we've done is we put it in an as-reported basis, and we're going to assume that the rates are relatively constant from where they are today from a planning perspective.

是的。所以我認為我們所做的是將其置於報告的基礎上，並且我們將假設從規劃的角度來看，與今天的利率相比，利率相對穩定。

We have time for one final question, and that will come from Joseph Vafi with Canaccord.

我們有時間提出最後一個問題，這個問題將來自 Joseph Vafi 和 Canaccord。

Nice execution here this quarter. A lot of questions already. Just wanted to follow up, I think, Tien, on your comment relative to Microsoft and Azure. I mean, obviously, they're a partner, but it also sounds like they're moving to be a customer. Any extra color you can add there on that.

本季度在這裡執行得很好。已經有很多問題了。 Tien，我想只是想跟進你對 Microsoft 和 Azure 的評論。我的意思是，很明顯，他們是合作夥伴，但聽起來他們也正在成為客戶。您可以在上面添加任何額外的顏色。

Yes. So we're pretty excited about that. Microsoft is a customer in several cases, but we have committed and delivered on our revenue product on Azure, and that's what Microsoft is using. And so we are now a multi-cloud environment. We're going to continue to move in that direction. And we're pretty happy to have Microsoft under the customer and also the first customer of our Azure stack.

是的。所以我們對此感到非常興奮。微軟在多個案例中都是客戶，但我們已經承諾並在 Azure 上交付了我們的收入產品，而這正是微軟正在使用的產品。所以我們現在是一個多雲環境。我們將繼續朝著這個方向前進。我們很高興微軟成為客戶，也是我們 Azure 堆棧的第一個客戶。

That's great. Is that -- I mean any more color you can add there on -- I mean, obviously, Azure is a huge platform and the ability to -- for them to be a customer and to integrate that solution is pretty wide. Is it still a small kind of pilot size? Or what's that road map look like in that opportunity to the extent you can talk about it?

那太棒了。那是——我的意思是你可以在上面添加更多的顏色——我的意思是，顯然，Azure 是一個巨大的平台，並且能夠——讓他們成為客戶並集成該解決方案是非常廣泛的。它仍然是一種小型飛行員嗎？或者在您可以談論的範圍內，該機會的路線圖是什麼樣的？

Yes. So Microsoft, obviously, a large company, we're talking to them in multiple places. Maybe with the more exciting -- the question really is, hey, what is it being on Azure opened up? And it does open up for us the entire Microsoft Reseller base. If you're a Microsoft customer and you have an Azure contract and you buy Zuora Revenue on Azure, you can actually use your Azure credits as part of that transaction. And so it's pretty exciting for us now to be in the position where we can actually talk to Microsoft Reseller channel and co-sell with them into those accounts, perhaps into the Microsoft Dynamics space as an example.

是的。所以微軟，顯然是一家大公司，我們在多個地方與他們交談。也許更令人興奮——真正的問題是，嘿，Azure 上打開的是什麼？它確實為我們打開了整個 Microsoft 經銷商基礎。如果您是 Microsoft 客戶並且擁有 Azure 合同並且在 Azure 上購買了 Zuora Revenue，那麼您實際上可以在該交易中使用您的 Azure 積分。因此，我們現在能夠真正與 Microsoft 經銷商渠道交談並與他們共同銷售到這些帳戶中，例如進入 Microsoft Dynamics 空間，這對我們來說是非常令人興奮的。

Sure. That's great. And then just one other question. It sounds like the Zephr deal is going really nicely. To what extent are kind of some of your systems integration partners aware of Zephr at this point? Is it ready for them to be included in kind of their sale of your products?

當然。那太棒了。然後是另一個問題。聽起來 Zephr 的交易進展得非常順利。目前，您的一些系統集成合作夥伴在多大程度上了解 Zephr？是否準備好讓他們參與您的產品銷售？

Yes, Joe. I mean there's definitely interest. I mean, we've been very, very focused around the media and publishing area, specifically there. But that interest is definitely growing across some. We had actually a large number from across Deloitte, PwC, EY, RSM, and then right away Accenture actually had a (inaudible) and actually came on (inaudible) for 2 days, and they were extremely interested in what the solution has to offer.

是的，喬。我的意思是肯定有興趣。我的意思是，我們一直非常非常關注媒體和出版領域，尤其是那裡。但這種興趣肯定會在一些人中增長。我們實際上有來自德勤、普華永道、安永、RSM 的大量人員，然後埃森哲實際上有一個（聽不清）並且實際上出現了（聽不清）2 天，他們對解決方案必須提供的內容非常感興趣.

And ladies and gentlemen, this concludes today's conference call, and we thank you for your participation. You may now disconnect.

女士們，先生們，今天的電話會議到此結束，我們感謝您的參與。您現在可以斷開連接。