Zuora Inc (ZUO) 2024 Q4 法說會逐字稿

Good afternoon. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Zuora fourth-quarter fiscal year 2024 earnings conference call. (Operator Instructions) Thank you. Luana Wolk, Vice President Investor Relations, you may begin your conference.

午安.我叫羅布，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加祖叡2024財年第四季財報電話會議。（操作員說明）謝謝。Luana Wolk，投資者關係副總裁，您可以開始會議了。

Thank you. Good afternoon and welcome to Zuora's fourth-quarter fiscal 2024 earnings conference call. On the call, we have Tien Tzuo, Zuora's Founder and Chief Executive Officer; and Todd McElhatton, Zuora's Chief Financial Officer. Robbie Traube, the President and Chief Revenue Officer will be joining us for the Q&A session.

謝謝。下午好，歡迎參加 Zuora 2024 財年第四季財報電話會議。Zuora 創辦人兼執行長 Tien Tzuo 出席了電話會議。麥克埃爾哈頓 (Todd McElhatton)，Zuora 財務長。總裁兼首席營收長 Robbie Traube 將參加我們的問答環節。

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 law. These statements reflect our view 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.

在今天的電話會議中，我們將發表代表我們對未來事件的期望和信念的聲明，根據聯邦證券法，這些事件可能被視為前瞻性的。這些陳述僅反映我們今天的觀點，不應被視為代表我們在任何後續日期的觀點。我們不承擔更新任何前瞻性陳述或展望的義務。

These statements are subject to several risks and uncertainties that could cause actual results to differ materially from expectation. For further discussion of the 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.

這些陳述受到多種風險和不確定性的影響，可能導致實際結果與預期有重大差異。有關可能影響我們財務表現的重大風險和其他重要因素的進一步討論，請參閱我們向 SEC 提交的文件。最後，除非另有說明，除今天提到的收入外，所有數字均為非公認會計原則。

You can find the reconciliation from GAAP to non-GAAP results for both the current and the prior year in today's press release. Our press release and a replay of today's call can be found on Zuora's Investor Relations website at investor.zuora.com. Now I'll turn the call over to you, Tien.

您可以在今天的新聞稿中找到當年和前一年的 GAAP 與非 GAAP 業績的調整表。我們的新聞稿和今天電話會議的重播可以在 Zuora 的投資者關係網站 Investor.zuora.com 上找到。現在我把電話轉給你，田。

Thank you, Luana, and thank you everyone for joining Zuora's fourth-quarter fiscal 2024 earnings call. I'd imagine there are quite a few questions based on the information we shared in our filing a few weeks ago. You all saw that our Q4 ARR growth fell short of where we were trying to land.

謝謝 Luana，也謝謝大家參加 Zuora 的 2024 財年第四季財報電話會議。我想根據我們幾週前在文件中分享的信息，會有很多問題。大家都看到我們第四季的 ARR 成長低於我們想要達到的目標。

We'll go through the details of the quarter. But the bottom line is this, in an uncertain year, we strengthened our position in the marketplace by focusing what was in our control, namely celebrating new logo acquisition, continuing to innovate our market leading multiproduct portfolio, investing in the success of our customers, and delivering balanced growth and profitability.

我們將詳細介紹本季的細節。但最重要的是，在不確定的一年中，我們透過專注於我們控制的事情來加強我們在市場中的地位，即慶祝新徽標的獲得，繼續創新我們市場領先的多產品組合，投資於我們客戶的成功，並實現平衡的成長和獲利能力。

For the full fiscal 2024, subscription revenue was within the high end of guidance at $383.4 million, up 13% year over year. ARR grew 10.4%, falling short of we were hoping to land. And the trailing 12 months DBRR ticked two points lower, primarily from one large churn, which I'll talk about later on the call. At the same time, non-GAAP operating income improved by over $44 million year over year, exceeding the high range of our guidance by nearly $3 million, a big big highlight for the year.

2024 財年全年，訂閱收入達 3.834 億美元，處於指導上限，年增 13%。ARR 成長了 10.4%，低於我們的預期。過去 12 個月的 DBRR 下降了兩個點，主要是由於一次大規模的客戶流失，我將在稍後的電話會議上討論這一點。同時，非 GAAP 營業收入年增超過 4,400 萬美元，超出我們指導的高點近 300 萬美元，是今年的一大亮點。

And our adjusted free cash flow improved $72 million year over year, allowing us to generate over $44 million of cash in a year. In Q4, we also saw the biggest year-over-year increase in new logos that we've seen in eight quarters. And in the quarter, nearly 60% of our customers who renewed in Q4 actually increased their spends with us.

我們調整後的自由現金流年增了 7,200 萬美元，使我們能夠在一年內產生超過 4,400 萬美元的現金。在第四季度，我們還看到了八個季度以來新徽標的最大同比增長。在本季度，在第四季度續訂的客戶中，近 60% 實際上增加了在我們這裡的支出。

To put all this in context, let's go back to the start of the fiscal year. Like many other companies, one year ago, we were seeing signs of a general slowdown in IT spending. Many expressed that the office of the CFO was an area that could be affected. And there's a general consensus that there was going to be a slowdown in the digital transformation projects that have driven technology spending over the previous few years. And so we adjusted.

為了了解這一切，讓我們回到本財年之初。與許多其他公司一樣，一年前，我們看到 IT 支出普遍放緩的跡象。許多人表示，財務長辦公室是一個可能受到影響的領域。人們普遍認為，過去幾年推動技術支出的數位轉型項目將會放緩。所以我們進行了調整。

Specifically, we said we would do two things. First, as we've been highlighting in the last few earnings calls, we shifted to doing faster lands at a lower ACV. So of course, still focus on what we believe is the sweet spot of the market, large enterprises and fast-growing disruptors. In other words, the leaders of today and of tomorrow.

具體來說，我們說我們會做兩件事。首先，正如我們在過去幾次財報電話會議中所強調的那樣，我們轉向以較低的 ACV 實現更快的著陸。因此，當然，仍然關注我們認為的市場最佳點、大型企業和快速成長的顛覆者。換句話說，今天和明天的領導者。

Second, we said we would strike a good balance between growth and profitability. We committed to making progress towards the Rule of 40 framework. As it turns out, this was the right approach. As the year progressed, we did indeed see a pause in digital transformation projects.

其次，我們表示要在成長和獲利之間取得良好的平衡。我們致力於在 40 條規則框架方面取得進展。事實證明，這是正確的方法。隨著時間的推移，我們確實看到了數位轉型專案的暫停。

In FY24, we saw fewer seven-digit ACV new logo deals. And in Q4, we did see these deals continue to push. However, our strategy of pursuing smaller, faster lands allowed us to sign almost 30% more new logos in fiscal '24 as compared to the previous year.

2024 財年，我們看到的七位數 ACV 新標誌交易有所減少。在第四季度，我們確實看到這些交易繼續推進。然而，我們追求更小、更快的土地策略使我們在 24 財年簽署的新標誌比上一年多了近 30%。

In fact, if you just look at Q4, we signed on over 40% new logos compared to Q4 of last year. And this is with some fantastic companies, including Sony Network Communications, who will be bringing on approximately 1.5 million subscribers,

事實上，如果你只看第四季度，與去年第四季度相比，我們簽署了超過 40% 的新商標。這是與一些出色的公司合作的，包括索尼網路通訊公司，他們將帶來大約 150 萬訂戶，

For [Enfore], a global leader in business cloud software for industry specific markets with over $3 billion in annual revenue and one of Europe's largest airlines, they selected Zuora to scale their exclusive travel program with new strategic offerings. We're one of the leading brands of private member clubs in hotels with over 70 locations around the world. We're even a leading marketing SaaS platform used by 80% of the Fortune 1000. Fantastic companies all around.

[Enfore] 是特定產業市場的商業雲端軟體的全球領導者，年收入超過 30 億美元，也是歐洲最大的航空公司之一，他們選擇 Zuora 透過新的策略產品來擴展其獨家旅行計畫。我們是飯店私人會員俱樂部的領導品牌之一，在全球設有 70 多個分店。我們甚至是領先的行銷 SaaS 平台，80% 的財富 1000 強企業都在使用我們。周圍都是很棒的公司。

We also saw sales cycles shorten. In fact, when I look at new logo deals between $100,000, $500,000 in ACV, these deals close to 25% faster as compared to FY23. Now, while this new logo strategy meant lower top line growth, we also executed on our commitment to deliver balanced growth and profitability. And we did it by rapidly expanding our bottom line. In fact, we ended the year at [24%] against the Rule of 40 metric, which exceeded what we initially set out to do.

我們也看到銷售週期縮短了。事實上，當我查看 ACV 100,000 美元至 500,000 美元之間的新徽標交易時，這些交易比 2023 財年快了近 25%。現在，雖然這項新標誌策略意味著收入成長下降，但我們也履行了實現平衡成長和獲利能力的承諾。我們透過迅速擴大利潤來做到這一點。事實上，根據 40 法則，我們今年的收盤價為 [24%]，這超出了我們最初設定的目標。

When you net down the year, we executed on the strategy we set out at the start of the year. We were agile and able to quickly adapt to market conditions. We focused well on the things that were in our control, specifically profitability and the free cash flow. And as such, we now enter FY25 in a stronger position.

當你減少今年的淨值時，我們執行了年初制定的策略。我們很敏捷，能夠快速適應市場條件。我們非常關注我們控制範圍內的事情，特別是盈利能力和自由現金流。因此，我們現在在進入 25 財年時處於更有利的地位。

Now, what enabled the strategy, of course, is our differentiated technology and our amazing customer base. First, our products are built on a differentiated cloud architecture, one that I call loosely coupled, but tightly integrated; meaning, our customers can start with any of our products. But then as we add additional products and modules over time, everything just works together. So we can start with the revenue or start with building or Zephyr or payments and then expand within our portfolio.

現在，推動這項策略的當然是我們的差異化技術和令人驚嘆的客戶群。首先，我們的產品建立在差異化的雲端架構之上，我稱之為鬆散耦合但緊密整合的雲端架構；這意味著，我們的客戶可以從我們的任何產品開始。但隨著時間的推移，當我們添加額外的產品和模組時，一切都會協同工作。因此，我們可以從收入開始，或從建造、Zephyr 或付款開始，然後在我們的投資組合中擴展。

Here's just two examples from Q4. And the first one is Toast, a leading restaurant technology management software company used by approximately 106,000 restaurant locations with over $3.9 billion in annual revenue. Now, Toast with a Zuora Revenue customer. And in Q4, I'm proud to say that they added Zuora billing.

這裡只是第四季的兩個例子。第一個是 Toast，這是一家領先的餐廳技術管理軟體公司，約有 106,000 家餐廳使用該軟體，年收入超過 39 億美元。現在，與 Zuora Revenue 客戶一起 Toast。在第四季度，我很自豪地說他們添加了 Zuora 計費功能。

Toast needed an enterprise-grade monetization platform that can keep up with their rapid growth in a flexible solution, capable of managing their dynamic business models. The second example is the Globe and Mail, Canada's leading national news brand with over 6 million monthly users. After going live at Zuora's building in Q4, they added Zephyr to help them accelerate the growth of their digital new subscription to greater pricing and bundling flexibility.

Toast 需要一個企業級貨幣化平台，能夠透過靈活的解決方案跟上其快速成長的步伐，並能夠管理其動態業務模式。第二個例子是《環球郵報》，它是加拿大領先的全國性新聞品牌，每月擁有超過 600 萬用戶。第四季在 Zuora 大樓投入使用後，他們添加了 Zephyr，以幫助他們加速數位新訂閱的成長，從而提高定價和捆綁靈活性。

Second, we put a lot of work this year to shortening our deployment times to get our customers live on our monetization technology even faster. For example, you might remember, early in the year, we announced a new deal with Telus Corporation, Canada's second largest communications technology company with more than $20 billion of annual revenue. And in Q4, they went live in just around 90 days, which is pretty amazing.

其次，我們今年投入了大量工作來縮短部署時間，以便讓我們的客戶更快地使用我們的貨幣化技術。例如，您可能還記得，今年年初，我們宣布與年收入超過 200 億美元的加拿大第二大通訊技術公司 Telus Corporation 達成新協議。在第四季度，他們僅用了大約 90 天就上線了，這非常驚人。

Four, the Associated Press, the independent global news organization that reaches 4 billion people every day. In Q4, they went live on Zephyr with its new donations capability as they continue to grow their direct-to-consumer offering.

第四，美聯社，獨立的全球新聞機構，每天覆蓋 40 億人。在第四季度，他們在 Zephyr 上上線了新的捐贈功能，同時繼續發展直接面向消費者的產品。

Third, our product is sticky and allows our customers to grow with us. This past year, we had the best retention rates since we went public. We are at the core of what our customers do, and once we are live, we become an important part of their DNA. And we've seen that when we sign on a new customer, they become a long-term growth engine.

第三，我們的產品有黏性，可以讓客戶與我們一起成長。去年，我們擁有自上市以來最好的保留率。我們是客戶工作的核心，一旦上線，我們就成為他們 DNA 的重要組成部分。我們已經看到，當我們簽約新客戶時，他們就成為長期成長引擎。

As we look at our cohorts, even after five years and beyond, these companies continue to show consistent growth with us. And this is why we describe ourselves as a long-term durable business. In fact, we saw it in Q4 with a leading CRM platform, renew with lower billings.

當我們審視我們的同類企業時，即使在五年或更長時間之後，這些公司仍繼續與我們一起表現出持續的成長。這就是為什麼我們將自己描述為長期耐用的企業。事實上，我們在第四季度看到了領先的 CRM 平台，並以較低的帳單續訂。

And over time, as our customers, they have increased their billing volume by over 8x or after a long-time customer, Bridgestone, the world's largest tyre and rubber company, acquired Azuga, fleet management platform, they expanded to work with us. In Q4, Azuga went live on Zuora to power its software solutions. And Bridgestone progresses towards their goal to drive 20% of their revenue from recurring services by 2025.

隨著時間的推移，作為我們的客戶，他們的帳單量增加了8 倍以上，或者在長期客戶、全球最大的輪胎和橡膠公司普利司通收購車隊管理平台Azuga 之後，他們擴大了與我們的合作範圍。第四季度，Azuga 在 Zuora 上上線，為其軟體解決方案提供支援。普利司通正在朝著 2025 年將 20% 的收入來自經常性服務的目標不斷邁進。

Finally, we have a proven committed field organization, which in my biased view is the best in the industry to help ensure our customer base continues to benefit from our technology. And here's how we saw this come to life last year. Our customers with multiple products as well as our highest ARR accounts, they have the highest level of customer satisfaction.

最後，我們擁有一個經過驗證的、忠誠的現場組織，在我看來，這是業內最好的組織，有助於確保我們的客戶群繼續從我們的技術中受益。這就是我們去年看到的這一點的實現方式。我們的客戶擁有多種產品以及我們最高的 ARR 帳戶，他們擁有最高水準的客戶滿意度。

Our customers see our platform is flexible and powerful, but still easy to use. The fact one of our top 10 customers recently awarded us as a top innovation partner, recognizing our innovation enabled them to introduce new licensing metrics that drove greater impact on their business.

我們的客戶看到我們的平台靈活且功能強大，但仍然易於使用。事實上，我們的十大客戶最近授予我們頂級創新合作夥伴的稱號，認可我們的創新，使他們能夠引入新的許可指標，從而對其業務產生更大的影響。

So now let's look forward to FY25. The headline is, we remain committed through our strategy of faster lighter lands and adding great new logos to our installed base. This is the right strategy and over the long run, it makes us a stronger company.

現在讓我們期待 25 財年。標題是，我們仍然致力於透過更快更輕的土地策略並為我們的安裝基礎添加出色的新標誌。這是正確的策略，從長遠來看，它使我們成為更強大的公司。

Let me highlight three areas that we are focused on have improvements and one potential area of opportunity. First, unfortunately, there are two large churns that are affecting our revenue growth for this upcoming fiscal year. It's important to call out that we do not believe these indicate a broader trend across our business. But I believe it's important to highlight to you all.

讓我強調一下我們重點關注的三個有改進的領域和一個潛在的機會領域。首先，不幸的是，有兩個大的流失正在影響我們即將到來的財政年度的收入成長。重要的是要指出，我們不認為這些表明我們業務的更廣泛趨勢。但我相信向大家強調這一點很重要。

The first instance we saw in Q4, with a large customer that has experienced macro headwinds in their industry and they faced digital transformation budget cuts. It's important to note that this customer was not yet live. That being said, as we reflect on what we could have done better, we do believe that faster go-lives will continue to reduce the likelihood of these events. And so you will see us continue to focus on this area.

我們在第四季度看到的第一個例子是，一家大客戶在其行業中經歷了宏觀逆風，並且面臨數位轉型預算削減。值得注意的是，該客戶尚未上線。話雖這麼說，當我們反思我們可以做得更好時，我們確實相信更快的上線將繼續降低這些事件發生的可能性。所以你會看到我們繼續關注這個領域。

The second one is the churn that we are going to see in Q1, and this is factored into our guide. This is a company that signed on a number of years ago, and they had a digital transformation vision that unfortunately has not yet become a reality and their processes are still very much traditional one-off transactions. But these anomalies do not change the strategy we have in place, but they do highlight the continued need for us, not only to close the right type of customer but also continue to focus on reducing time to go-live.

第二個是我們將在第一季看到的流失，這已納入我們的指南中。這是一家多年前簽約的公司，他們有一個數位轉型願景，不幸的是尚未成為現實，而且他們的流程仍然是非常傳統的一次性交易。但這些異常現象並沒有改變我們現有的策略，但它們確實凸顯了我們的持續需求，不僅要吸引正確類型的客戶，還要繼續專注於縮短上線時間。

Second, another area we are working on is what I'll call consumption billing. So we've got consumption billing since day one. Of course, we cannot rest on our laurels. In fact, we believe as more technology companies adopt AI, artificial intelligence, they will need to shift more of their pricing model to consumption-based pricing models. And so you're going to see this is an area that we will double down on. And I'm pleased to announce that since the launch of advanced consumption back in June, we've had over 40 customers purchased the product, including seven go-lives.

其次，我們正在研究的另一個領域是我所說的消費計費。所以我們從第一天起就有消費帳單。當然，我們不能固步自封。事實上，我們認為，隨著越來越多的科技公司採用人工智慧，他們將需要將更多的定價模式轉變為基於消費的定價模式。所以你會發現這是我們將加倍努力的領域。我很高興地宣布，自 6 月推出高級消費以來，已有 40 多名客戶購買了該產品，其中 7 名已上線。

Third, in fiscal '25, you are also going to see us continue to focus on improving our go-to-market efficiency. You're going to see us leaning into higher quality demand generation and efficient pipeline capabilities, and we've made changes in our marketing and alliances leadership to drive this. We will continue to invest in our partnerships with leading system integrators to help us down this journey.

第三，在 25 財年，您也將看到我們持續專注於提高進入市場的效率。您將看到我們傾向於更高品質的需求產生和高效的管道能力，並且我們已經對行銷和聯盟領導層進行了變革來推動這一目標。我們將繼續投資與領先的系統整合商的合作夥伴關係，以幫助我們完成這趟旅程。

Last thing is the potential opportunity, and it's around the office of the CFO. When you look at the horizontal application stack, almost every application area has gone into the cloud with one big exception, and that is a company's core ERP systems.

最後一件事是潛在的機會，而且是在財務長辦公室周圍。當你觀察橫向應用程式堆疊時，幾乎所有應用程式領域都已進入雲端，但有一個很大的例外，那就是公司的核心 ERP 系統。

Now most people will say that at some point in the future, a trend has to kick in to move ERP into the cloud. It's obviously when that happens, we believe this is something that will benefit us now. We're not saying it's going to happen this year, and we're not going to build that into our plan. What we are going to do is continue to focus on signing on some great new logos with the confidence that this will only make us stronger if and when the market for ERP projects reflect.

現在大多數人會說，在未來的某個時候，必須出現將 ERP 遷移到雲端的趨勢。顯然，當這種情況發生時，我們相信這將使我們受益。我們並不是說這會在今年發生，我們也不會將其納入我們的計劃中。我們要做的就是繼續專注於簽署一些出色的新徽標，並相信這只會讓我們在 ERP 專案市場反映時變得更加強大。

To summarize, as I look back on fiscal year '24, the strategy we put in place at the start of the year has put us in a good position for fiscal year '25. We will continue to add new logos at a faster pace. We will continue to invest in our market-leading multiproduct portfolio that has been proven over and over again to be critical for driving success with recurring revenue models. We will continue to invest in amazing customer success, and we will continue to commit to delivering balanced growth and profitability.

總而言之，當我回顧 24 財年時，我們在年初制定的策略使我們在 25 財年處於有利地位。我們將繼續以更快的速度添加新徽標。我們將繼續投資於市場領先的多產品組合，這些產品組合已被一再證明對於推動經常性收入模式成功至關重要。我們將繼續投資於令人驚嘆的客戶成功，我們將繼續致力於實現平衡的成長和獲利能力。

Finally, I want to thank all of our ZEOs that contributed to our success in FY '24. We would not be who we are today without your vision and your commitments. With that, I will pass the call over to Todd to review our financials.

最後，我要感謝所有為我們 24 財年的成功做出貢獻的 ZEO。如果沒有你們的遠見和承諾，我們就不會成為今天的我們。這樣，我會將電話轉給托德，以審查我們的財務狀況。

Thank you, Tien, and thanks for joining our call in Q4, we met our guidance on subscription revenue and total revenue while exceeding the high end range for non-GAAP operating income and full year adjusted free cash flow. In fact, our focus on efficiency yielded a significant $72 million improvement on our full year adjusted free cash flow compared to last year.

謝謝你，Tien，感謝您參加第四季度的電話會議，我們達到了訂閱收入和總收入的指導，同時超出了非 GAAP 營業收入和全年調整後自由現金流的高端範圍。事實上，與去年相比，我們對效率的關注使我們全年調整後的自由現金流顯著提高了 7,200 萬美元。

At the close of the quarter, we announced the workforce reduction and our preliminary expectations for ARR growth and DBRR for Q4 for fiscal 2024. The revised expectations were driven by the macroeconomic pressures we talked about as well as an unexpected customer churn we experienced. We significantly improved our bottom line and accelerated our new logo growth. In light of slower top line growth, we're focused on driving profitability as we make progress towards the Rule of 30 by Q4 of fiscal 2025.

在本季末，我們宣布了裁員以及對 2024 財年第四季 ARR 成長和 DBRR 的初步預期。修訂後的預期是由我們談到的宏觀經濟壓力以及我們經歷的意外客戶流失所推動的。我們顯著提高了利潤並加速了新徽標的成長。鑑於營收成長放緩，我們將專注於提高獲利能力，並在 2025 財年第四季之前朝著「30 法則」邁進。

Subscription revenue in Q4 was $100.2 million, growing 12% year over year in both constant currency and as reported. For the full year, subscription revenue was $383.4 million, representing 13% growth year over year as reported and 15% in constant currency.

第四季的訂閱收入為 1.002 億美元，以固定匯率和報告數據計算，年增 12%。全年訂閱收入為 3.834 億美元，年增 13%，以固定匯率計算成長 15%。

As we continue to expand our partnerships with SIs, our professional services revenue decreased by 22% year over year, ending Q4 at $10.5 million and represented 9.5% of total revenue. For the full year, professional services revenue was $48.3 million, a year-over-year decline of 16%. Total revenue for Q4 was $110.7 million, up 7% year over year and for the full year was $431.7 million, up 9%.

隨著我們繼續擴大與 SI 的合作夥伴關係，我們的專業服務收入年減 22%，第四季末為 1,050 萬美元，佔總收入的 9.5%。全年專業服務收入為4,830萬美元，年減16%。第四季總營收為 1.107 億美元，年增 7%，全年總營收為 4.317 億美元，成長 9%。

Non-GAAP subscription gross margin in Q4 was 82%, an improvement of over 280 basis points year over year. For the full year, our non-GAAP subscription gross margin was 82%, which represented an improvement of over 230 basis points. Throughout the fiscal year, we realized continued margin performance from optimizing our hyperscalers and increasing efficiency.

第四季非 GAAP 訂閱毛利率為 82%，年增 280 個基點。全年，我們的非 GAAP 訂閱毛利率為 82%，提高了 230 個基點以上。在整個財年中，我們透過優化超大規模運算設備和提高效率實現了持續的利潤率表現。

Non-GAAP professional services gross margin for Q4 was negative 10%, a decline of 215 basis points year over year. This was driven by our continued investment in our customers. For the full year, our non-GAAP professional services gross margin was negative 4%. Looking ahead in Q1, we expect margins to be consistent with Q4 with sequential improvements throughout fiscal 2025.

第四季非 GAAP 專業服務毛利率為負 10%，較去年同期下降 215 個基點。這是由我們對客戶的持續投資所推動的。全年，我們的非 GAAP 專業服務毛利率為負 4%。展望第一季度，我們預計利潤率將與第四季度保持一致，並在 2025 財年持續改善。

Our Q4 non-GAAP blended gross margin was 74%, an increase of over 550 basis points year over year. Our full year non-GAAP blended gross margin was 72%, an increase of over 460 basis points. In Q4, non-GAAP operating income exceeded the high end of our guidance by nearly $3 million coming in at $15.9 million compared to $2.2 million in the prior year and representing a non-GAAP operating margin of 14% for the quarter.

我們第四季的非 GAAP 混合毛利率為 74%，較去年同期成長超過 550 個基點。我們全年非 GAAP 混合毛利率為 72%，成長超過 460 個基點。第四季度，非 GAAP 營業收入超出我們指引的上限近 300 萬美元，達到 1,590 萬美元，而前一年為 220 萬美元，該季度的非 GAAP 營業利潤率為 14%。

For the full year, our non-GAAP operating income was $47.5 million, resulting in operating margin of 11% or a 10 point improvement compared to last year. The operating margin improvements for Q4 and the full year are the result of disciplined spending as we remain committed to improving our bottom line. Despite the top line headwinds, we have laid a path to achieve a Rule of 30, exiting fiscal 2025.

全年，我們的非 GAAP 營業收入為 4,750 萬美元，營業利潤率為 11%，比去年提高了 10 個百分點。第四季和全年營業利潤率的提高是嚴格支出的結果，因為我們仍然致力於提高我們的利潤。儘管面臨營收的阻力，我們還是為實現 30 條規則（2025 財政年度結束）鋪平了道路。

As a reminder, we define the Rule of 30 as a sum of year-over-year subscription revenue growth plus non-GAAP operating margin. Our fully diluted share count as of the end of the quarter was approximately 180.2 million shares using both the treasury stock and if converted method.

提醒一下，我們將 30 法則定義為年比訂閱收入成長加上非 GAAP 營業利潤率總和。截至本季末，使用庫存股和轉換法計算的完全稀釋後的股票數量約為 1.802 億股。

Let's look into some of the metrics for the quarter and the year. As we disclosed in our SEC filings several weeks ago, seller-based retention ended at 106%, down 2-percentage-points, both quarter over quarter and year over year. As Tien noted, our DBRR this quarter was impacted by an unexpected churn from a large customer that had yet to go live. In fact, this customer faced large budget cuts for the year given the impact of the macro environment on their business.

讓我們來看看本季和本年度的一些指標。正如我們幾週前在 SEC 文件中披露的那樣，基於賣家的保留率為 106%，環比和同比均下降了 2 個百分點。正如 Tien 指出的那樣，我們本季的 DBRR 受到了尚未上線的大客戶意外流失的影響。事實上，鑑於宏觀環境對其業務的影響，該客戶今年面臨大幅預算削減。

This abnormal customer-specific churn created a one-point headwind in both ARR growth and DBRR. It's worth noting that this year, we reached record levels of overall gross retention. We remain confident in our customer retention and product stickiness as we have a differentiated product portfolio that is mission-critical for our customers.

這種異常的特定客戶流失對 ARR 成長和 DBRR 都造成了一定的阻力。值得注意的是，今年我們的整體毛保留率達到了創紀錄的水平。我們對客戶保留率和產品黏性仍然充滿信心，因為我們擁有對客戶至關重要的差異化產品組合。

Our total RPO ended the year at $594 million, growing 19% year over year. Noncurrent RPO grew 31% year over year to $271 million. These strong RPO figures were driven by a number of large multiyear renewals in Q4. We ended the quarter with 461 customers with a contract size at or above $250,000 in average contract value. This was up 8 sequentially and up 30 year over year. This cohort represents 84% of our business as we further expand into the enterprise space.

截至年底，我們的 RPO 總額為 5.94 億美元，年增 19%。非流動 RPO 年成長 31%，達到 2.71 億美元。這些強勁的 RPO 數據是由第四季度的多次大型多年續約推動的。本季結束時，我們有 461 家客戶的合約規模平均合約價值達到或超過 25 萬美元。環比增長 8，年成長 30。隨著我們進一步擴展到企業領域，這個群體占我們業務的 84%。

This quarter, we closed four deals with an ACV of $500,000 or more, down from $600,000 last year. This includes one deal over $1 million down from $2 million last year. In the current environment, we continue to see less of large transformational deals and more of a lighter land that will allow for future expansion.

本季度，我們完成了四筆 ACV 為 50 萬美元或以上的交易，低於去年的 60 萬美元。其中包括一筆超過 100 萬美元的交易，低於去年的 200 萬美元。在當前環境下，我們繼續看到大型轉型交易越來越少，而可供未來擴張的較輕土地越來越多。

In fiscal 2024, we processed $139.9 billion of billing transactions and payment volume, a growth of 10% year over year. In addition, we processed $212.8 billion of revenue volume, a growth of 12% year over year. As a reminder, we provide these metrics on an annual basis as quarterly volumes ebb and flow.

2024 財年，我們處理了 1,399 億美元的帳單交易和支付量，年增 10%。此外，我們還處理了 2,128 億美元的收入，年增 12%。提醒一下，我們每年都會根據季度銷售的漲落提供這些指標。

ARR landed at $403.1 million at the end of Q4 and grew 10.4%. Adjusted free cash flow was $14.6 million in the quarter, a significant improvement of nearly $32 million over Q4 of last year. Adjusted free cash flow for the full year exceeded our guidance by over $7 million at $44.3 million, representing a $72 million increase over the prior fiscal year.

第四季末 ARR 達到 4.031 億美元，成長 10.4%。本季調整後自由現金流為 1,460 萬美元，比去年第四季顯著改善近 3,200 萬美元。全年調整後的自由現金流超出我們的指引超過 700 萬美元，達到 4,430 萬美元，比上一財年增加 7,200 萬美元。

Turning to the balance sheet, we ended the quarter with $514.2 million in cash and cash equivalents, a sequential increase of $20 million. Total CapEx for the quarter was $3.1 million and $10 million for the full year.

轉向資產負債表，本季末我們的現金和現金等價物為 5.142 億美元，比上一季增加 2,000 萬美元。本季總資本支出為 310 萬美元，全年資本支出為 1,000 萬美元。

Before turning to guidance, I want to provide a bit more context regarding our recent organizational changes. In late January, we made the difficult decision to reduce our workforce by roughly 8% net as we drive efficiency and optimization throughout the organization. In connection with this reduction, we incurred approximately $7 million of restructuring charges in Q4. We also expect to occur approximately $1 million in the first half of fiscal 2025.

在轉向指導之前，我想提供更多有關我們最近的組織變革的背景資訊。1 月下旬，我們做出了艱難的決定，將員工人數淨減少約 8%，以推動整個組織的效率和最佳化。由於這一減少，我們在第四季度產生了約 700 萬美元的重組費用。我們也預計 2025 財年上半年營收約為 100 萬美元。

These charges, which were excluded from our non-GAAP results, consisted primarily of cash expenditures related to severance payments, healthcare costs, and job placement benefits for the impacted employees. These actions are part of our enhanced efforts in driving efficient and profitable growth.

這些費用不包括在我們的非公認會計準則績效中，主要包括與受影響員工的遣散費、醫療保健費用和就業安置福利相關的現金支出。這些行動是我們為推動高效率和獲利成長而加強努力的一部分。

Now turning to guidance, enterprises continue to scrutinize their investments. We anticipate this trend will continue in the office of the CFO throughout fiscal 2025, and as such, are being judicious with our guidance. In addition, our professional services business will continue to be a smaller portion of our total revenue mix as we support our partners in leading customer implementations, which is consistent with the trends we've seen this past year.

現在轉向指導，企業繼續審查其投資。我們預計財務長辦公室的這一趨勢將在整個 2025 財年持續下去，因此，我們將謹慎對待我們的指導。此外，我們的專業服務業務將繼續占我們總收入組合的一小部分，因為我們支持合作夥伴領先的客戶實施，這與我們去年看到的趨勢一致。

Now turning to guidance, I want to remind you that Q1 has two fewer days in Q4. For Q1, we currently expect subscription revenue of $98 million to $99 million. Professional services revenue of $9.8 million to $10.8 million. Total revenue of $107.8 million to $109.8 million. Non-GAAP operating income of $14 million to $16 million and non-GAAP net income per share of $0.06 to $0.07, assuming a weighted average share outstanding of approximately $146.9 million.

現在轉向指導，我想提醒您，第一季比第四季少了兩天。我們目前預計第一季的訂閱收入為 9,800 萬美元至 9,900 萬美元。專業服務收入為 980 萬美元至 1,080 萬美元。總收入為 1.078 億美元至 1.098 億美元。假設加權平均流通股約 1.469 億美元，則非 GAAP 營業收入為 1,400 萬至 1,600 萬美元，非 GAAP 每股淨利潤為 0.06 至 0.07 美元。

For the full fiscal year 2025, we expect subscription revenue of $410 million to $414 million. Professional services revenue of $41 million to $45 million, total revenue of $451 million to $459 million, non-GAAP operating income of $79 million to $81 million, and non-GAAP net income per share of $0.40 to $0.42, assuming a weighted average share outstanding of approximately $151.5 million.

對於 2025 年整個財年，我們預計訂閱收入為 4.1 億至 4.14 億美元。專業服務收入為4,100 萬美元至4,500 萬美元，總收入為4.51 億美元至4.59 億美元，非GAAP 營運收入為7,900 萬美元至8,100 萬美元，非GAAP 每股淨利潤為0.40 美元至0.42 美元（假設加權平均流通股）約1.515億美元。

We also expect to be at an annual share dilution of approximately 4% for fiscal '25. For this purpose, dilution as calculated by the number of equity awards granted, net of forfeitures during the fiscal year divided by the total shares outstanding at the end of the fiscal year. For the year, we expect DBRR of 104% to 106% and ARR growth of between 8% and 10%. As Tien noted, these metrics reflect the headwinds we saw in Q4 and early Q1 due to churn activity by two customer specific instances.

我們也預計 25 財年的年度股權稀釋約為 4%。為此，稀釋度的計算方法是，扣除本財年期間沒收的股權獎勵數量除以本財年末已發行股份總數。我們預計今年的 DBRR 為 104% 至 106%，ARR 成長率為 8% 至 10%。正如 Tien 指出的那樣，這些指標反映了我們在第四季度和第一季初看到的不利因素，這是由於兩個客戶特定實例的流失活動造成的。

We have made tremendous progress with our bottom line, and as I stated in prior quarters, we will continue to balance growth and profitability. We remain committed to our goal of exiting fiscal '25 at a Rule of 30 run rate. We expect our adjusted free cash flow to be $80 million for the full year. This represents a $35 million improvement year over year.

我們在獲利方面取得了巨大進步，正如我在前幾個季度所說，我們將繼續平衡成長和獲利能力。我們仍然致力於以 30 的運行率規則退出 25 財年的目標。我們預計全年調整後的自由現金流為 8,000 萬美元。這意味著同比增加了 3500 萬美元。

In closing, while the macro backdrop continues to impact us in the near term, we are focused on showing disciplined bottom line leverage. We continue to focus on accelerating new logos with our strategy to land LiDAR and to expand alongside our customers. This will bring us runway for accelerated growth in the second half of the year.

最後，雖然宏觀背景在短期內繼續影響我們，但我們專注於展示嚴格的底線槓桿。我們繼續專注於加速新標誌的推出，實施光達落地策略並與客戶一起擴展。這將為我們下半年加速成長奠定基礎。

We will keep our retention rate strong while improving profitability margins and increasing free cash flow generation. With that Tien, Robbie and I will take your questions, and I'll turn it over to the operator.

我們將保持強勁的保留率，同時提高利潤率並增加自由現金流的產生。接下來，Tien、Robbie 和我將回答您的問題，然後將其轉交給接線員。

(Operator Instructions) Adam Hodgkinson, Goldman Sachs.

（操作員指令）Adam Hodgkinson，高盛。

Great. Thanks for taking my questions. I guess to start on the new logo side, I know you mentioned Sony and Infor and the increase in total new logos that adds on a year-over-year basis. Just any more commentary on the types of customers you're adding besides the ones you mentioned? What, from a product perspective, a typical LiDAR [land] looks like and how we should think about landing contract values versus the eight net adds that you noted on the $250,000-plus side. Just any incremental color there would be helpful.

偉大的。感謝您回答我的問題。我想首先要從新徽標方面開始，我知道您提到了索尼和 Infor，以及新徽標總數逐年增加的情況。除了您提到的客戶類型之外，還有更多關於您新增的客戶類型的評論嗎？從產品的角度來看，典型的 LiDAR [土地] 是什麼樣子，以及我們應該如何考慮土地合約價值與您在 250,000 美元以上方面提到的八個淨增加額。只要任何增量顏色都會有幫助。

Yeah, absolutely. So in addition to Sony, Infor, I think we noted three more customers. You can see it's a fairly diverse mix actually. There was an airline that I mentioned. It's Tien here. There was a membership club, they're with 70 locations, and there was definitely a traditional SaaS company.

是的，絕對是。因此，除了索尼、Infor 之外，我認為我們還注意到了另外三個客戶。你可以看到它實際上是一個相當多樣化的組合。我提到過一家航空公司。這裡是田。有一個會員俱樂部，有 70 個地點，而且肯定有一家傳統的 SaaS 公司。

I would not say the mix has changed too much. I would say that we continue to focus on technology companies. Today, SaaS companies continue to do well, especially as they gear up for perhaps a churn in the IPO market, at least the private ones. And we still continue to see healthy growth in our media segments as well.

我不會說混合變化太大。我想說的是，我們將繼續關注科技公司。如今，SaaS 公司繼續表現良好，尤其是當它們為 IPO 市場（至少是私人市場）可能出現的動盪做好準備時。我們的媒體領域仍然繼續健康成長。

In terms of the type of deals, obviously, it's an arbitrary number, but we thought that $100,000 to $500,000 is a good indication where the deal is not too small, not too big. And that's really where, like I said, we saw a pretty dramatic decrease in sales cycle time. So I'd say that's how to think about the business.

就交易類型而言，顯然，這是一個任意數字，但我們認為 100,000 美元到 500,000 美元是一個很好的指示，其中交易不太小，也不太大。正如我所說，這確實是我們看到銷售週期時間大幅縮短的地方。所以我想說這就是思考業務的方式。

Okay. That's really helpful. Thanks. And then Todd, I think you mentioned previously that ARR growth for the past fiscal year would be a good indicator of growth for fiscal '25. And it looks like there's a little bit of deceleration now baked into the guidance. So just curious how much of that is the two logo churns you mentioned versus maybe some incremental conservatism now that you're getting more of a view on the macro. Just any incremental color on the dispersion there would be useful.

好的。這真的很有幫助。謝謝。然後托德，我想您之前提到過上一財年的 ARR 增長將是 25 財年增長的良好指標。看起來現在的指導中已經包含了一點減速。所以只是好奇你提到的兩個標誌的流失有多少與可能是一些漸進的保守主義有關，因為你對宏觀有了更多的看法。分散體上的任何增量顏色都是有用的。

Hey, thanks a lot, Adam. So as you said, we had one customer in Q4 that was a pretty significant churn. That's going to give us a point of DBR headwind and same thing on the ARR as we move into next year. When we took a look at just some of the larger deals, those deals continue to elongate in cycle. And when we took a look at some of the things that continue to push out into the future, we've got another point there.

嘿，非常感謝，亞當。正如您所說，我們在第四季有一位客戶流失率相當大。當我們進入明年時，這將為我們帶來 DBR 的逆風和 ARR 上的同樣的情況。當我們只看一些較大的交易時，這些交易的周期繼續延長。當我們審視一些未來繼續發展的事情時，我們得到了另一個觀點。

And then the last one was, there is a large customer. And in both of these churns that we've talked about, they're not in our core verticals. And so not standard; one was not live.

最後一個是，有一個大客戶。在我們討論過的這兩種流失中，它們都不屬於我們的核心垂直領域。所以不標準；一個沒有直播。

The other was an old company. Actually, they do [porta-potties]. And was trying to make a digital transformation, didn't happen. And so that's giving us another point. So if I take those three things together, those are the three points that we're seeing.

另一個是一家老公司。事實上，他們確實[porta-potties]。並試圖進行數位轉型，但沒有發生。這給了我們另一點。因此，如果我將這三件事放在一起，那就是我們看到的三點。

And as we're just seeing elongated sales cycle, I think we were to be really judicious and not assume that we're going to have some of the larger deals that we had because that's really quite a lot of headwind on us this year. So we're going to assume for all next year that we're landing LiDAR. And then we have those two churns that obviously bring through the entire year from an ARR growth. And that's really what we've seen from a headwind perspective.

由於我們剛剛看到銷售週期延長，我認為我們應該非常明智，不要假設我們會達成一些較大的交易，因為今年這對我們來說確實是一個很大的阻力。因此，我們假設明年我們將推出雷射雷達。然後，這兩次流失顯然會帶來全年的 ARR 成長。這確實是我們從逆風角度看到的情況。

Okay. All really helpful. Thanks, Tien. Thanks, Todd.

好的。一切都非常有幫助。謝謝，田。謝謝，托德。

Hey, thanks a lot, Adam.

嘿，非常感謝，亞當。

Chad Bennett, Craig-Hallum.

查德·貝內特，克雷格·哈勒姆。

Great. Thanks for taking my questions. Just curious on the math behind the narrative of our best retention rate since going public considering the churn. Is that a gross retention number? Just how do we think about that considering the churn?

偉大的。感謝您回答我的問題。只是對自上市以來考慮到客戶流失的最佳保留率的敘述背後的數學原理感到好奇。這是總留存率嗎？考慮到客戶流失，我們如何看待這一點？

Chad, that absolutely is a gross retention rate. And like I said, we were running well below where we thought we'd be. We actually ended up landing right on plan for the full year. We had that unexpected churn. Large company really facing some big macro headwinds.

乍得，這絕對是毛保留率。正如我所說，我們的運行速度遠低於我們的預期。事實上，我們最終完全按照全年計劃進行。我們遇到了意想不到的流失。大公司確實面臨一些巨大的宏觀阻力。

Maybe just give you a little bit more color. It was a company that had not gone live, not in our core vertical. Right up until before it churned, they were actually talking to us. They were looking to expand and bring Zuora revenue on.

也許只是給你多一點色彩。這是一家尚未上線的公司，不在我們的核心垂直領域。直到它攪動之前，他們實際上正在和我們說話。他們希望擴大規模並增加 Zuora 的收入。

And then literally, on a dime, it's like not only are we not going to do the revenue thing. We're canceling the whole project; and we're canceling all of our IT projects that aren't live. So that was something that was a surprise to us. So that's really what we're driving on it.

然後從字面上看，在一毛錢上，我們不僅不會做收入的事情。我們將取消整個專案；我們將取消所有未上線的 IT 專案。所以這對我們來說是一個驚喜。這就是我們真正的動力。

And again, next year, we've got a timing issue. The linearity seems to be moved forward. When we take a look at the full year, that is what's driving it. And again, our customers are really sticky. And once they go live, we tend to keep them for a long time. And our top 100 customers, only 5 customers haven't gone live yet.

明年，我們又遇到了時間問題。線性似乎向前推進了。當我們回顧全年時，這就是推動因素。再說一次，我們的客戶真的很黏。一旦它們上線，我們往往會保留它們很長一段時間。而我們前100個客戶中，只有5個客戶還沒上線。

Okay. And just curious, were we recognizing subscription revenue from these two customers that have not went live or are not going live? And if so, for how long?

好的。只是好奇，我們是否認識到這兩位尚未上線或即將上線的客戶的訂閱收入？如果是這樣，持續多久？

So I don't have the exact dates when they went live. But as soon as we sign a contract, we begin recognizing our revenue as anybody in the SaaS organization does because we do stand up that environment. They need that environment as they are working in their internal processes. So I think if any SaaS company, as soon as they sign the contract, depending on how it ramps, that is part of our revenue. So that was part of our run rate, and it was in the ARR.

所以我不知道它們上線的確切日期。但一旦我們簽署了合同，我們就開始像 SaaS 組織中的任何人一樣確認我們的收入，因為我們確實支持這種環境。他們在內部流程中工作時需要這種環境。所以我認為，如果任何 SaaS 公司一旦簽署合同，根據其成長方式，這就是我們收入的一部分。所以這是我們運行率的一部分，並且在 ARR 中。

Yes. And the second company, just to be clear, they have been live for over five years. And so they have big ambitions for digital transformation project. But if you look at their internal processes, I think we mentioned on the call, it's still very much one-off transactions, and they just never really transformed. And so the overhead of using our system ultimately, it just wasn't a good fit.

是的。第二家公司，要明確說明的是，他們已經成立五年多了。因此他們對數位轉型專案抱持著很大的野心。但如果你看看他們的內部流程，我想我們在電話會議上提到過，這仍然是一次性交易，而且他們從未真正轉變。因此，最終使用我們系統的開銷並不合適。

Got it. And then maybe just one last one if I could. Just on the service line and the gross profit there. We're clearly running at a negative gross profit. And I think the thought was going back a couple of years is we're going to kind of sacrifice service revenue to invest in the channel and offer them up that implementation revenue. And what we get back for that is obviously subscription revenue growth. That doesn't seem like it's transpiring.

知道了。如果可以的話，也許只是最後一件事。就服務線和那裡的毛利而言。我們的毛利顯然為負。我認為幾年前的想法是我們將犧牲服務收入來投資管道並為他們提供實施收入。我們得到的回報顯然是訂閱收入的成長。這似乎並沒有發生。

And then the other avenue is we're investing in our customers direct. And our service revenue is going down materially year over year. Should we be running this at a negative gross margin business at this point?

另一種途徑是我們直接投資於我們的客戶。我們的服務收入逐年大幅下降。此時我們是否應該以負毛利率經營這項業務？

Chad, I think for the full year, our objective is to run it slightly below where we are from a standpoint of the loss from Q4. And I'll just remind you, Q4 is always a little bit special for us. We have in the US, which is a big chunk of our business, 60%-some. We have the Thanksgiving week; and then, we have the end of the year shutdowns that a lot of companies have.

查德，我認為全年的目標是從第四季度的損失來看，將其運行得略低於我們的水平。我只是提醒你，第四季對我們來說總是有點特別。我們在美國，這是我們業務的很大一部分，大約佔 60%。我們有感恩節週；然後，我們會像許多公司一樣在年底關閉。

And so when you take those, we just have a lot fewer billable days, and that continues to put pressure on it. From another standpoint, we do invest in customers. We're also investing in partners. Those are some of the investments we continue to evaluate them. But at this point, we believe those are prudent. And those do help us drive topline subscription growth that has a very positive, almost 83% margin this company.

因此，當你考慮這些時，我們的計費天數就會少得多，這繼續給它帶來壓力。從另一個角度來看，我們確實對客戶進行投資。我們也投資於合作夥伴。這些是我們繼續評估的一些投資。但目前，我們認為這些都是謹慎的。這些確實幫助我們推動了營收成長，該公司的利潤率非常積極，幾乎達到 83%。

And Chad, the other point to it is, yeah, we all fall and the first to land, it is important. And we do see. Our source pipeline as an example, one at 1.5 times year over year through our partners.

乍得，另一點是，是的，我們都會跌倒，第一個落地，這很重要。我們確實看到了。以我們的源管道為例，透過我們的合作夥伴，管道的數量年增 1.5 倍。

Got it. Thank you for taking my questions.

知道了。感謝您回答我的問題。

Thank, Chad.

謝謝，查德。

Patrick Schulz, Baird.

派崔克舒爾茨，貝爾德。

Hey, thanks for taking my question. Just appreciate all the color you provided around guidance. Kind of curious if you could dig into some of the more recent buying patterns and deal closure rates you're seeing from customers, excluding those two large customers that churned. Have customers been incrementally more cautious with our budgets now compared to late '23? Just trying to get a better understanding of the buying environment that's embedded within guidance.

嘿，謝謝你回答我的問題。只需欣賞您為指導提供的所有顏色即可。有點好奇您是否可以深入了解從客戶那裡看到的一些最近的購買模式和交易完成率，不包括那兩個流失的大客戶。與 23 年末相比，客戶現在對我們的預算是否越來越謹慎？只是想更了解指南中包含的購買環境。

Yes. This is Tien. I'll chime in there. You can see the tale of two cities, right? There're two spectrums if you will. What we're seeing in overall customers have remained really interested. Recurring revenue models are really important. The shift to subscription is really important. In the technology sector, if anything, AI, is pushing more and more people to do consumption-based billing models. And so from overall trend for what we do and the market's need for what we do, we feel really, really good.

是的。這是田。我會在那裡插話。你可以看到兩個城市的故事，對吧？如果你願意的話，有兩個光譜。我們在整體客戶中看到的情況仍然非常感興趣。經常性收入模式非常重要。向訂閱的轉變確實很重要。在技​​術領域，人工智慧正在推動越來越多的人採用基於消費的計費模式。因此，從我們所做的事情的整體趨勢以及市場對我們所做的事情的需求來看，我們感覺非常非常好。

When it comes to specific deal cycles, we're seeing two ends of the spectrum, right? On the smaller deals, and let's call it, less than $500,000, we're actually seeing those deals close faster, and we're seeing good, good, healthy demand.

當談到特定的交易週期時，我們看到了頻譜的兩端，對嗎？對於較小的交易，我們稱之為低於 50 萬美元的交易，我們實際上看到這些交易完成得更快，而且我們看到了良好、良好、健康的需求。

I think there's just simply more scrutiny. You talk about $1 million, $1.5 million, $2 million ARR deal, multiply that by three or five sometimes, right because they really see us as a long-term investment; you're talking about a sizable approval. Those things just continue to have a lot of scrutiny. Is there something out there that says, do those start to loosen up? Perhaps, but it's not something that we're going to count on, and we're going to build into our models.

我認為只是需要更多的審查。你談論 100 萬美元、150 萬美元、200 萬美元的 ARR 交易，有時會將其乘以三到五，因為他們確實將我們視為一項長期投資；你說的是相當大的批准。這些事情將繼續受到大量審查。有沒有什麼東西可以說，那些開始放鬆了嗎？也許吧，但這不是我們要指望的東西，我們將把它構建到我們的模型中。

I think one other thing, Patrick, it's also really important to note is these aren't lost deals. As a matter of fact, when we look at our win rates, they're at record levels. And in fact, some of the companies that are doing bundling and giving away the subscription billing, we're seeing over 80% win rate against those.

我認為另一件事，帕特里克，值得注意的是，這些並不是丟失的交易。事實上，當我們查看我們的勝率時，它們處於創紀錄的水平。事實上，對於一些進行捆綁銷售並贈送訂閱帳單的公司，我們發現這些公司的勝率超過 80%。

So I think it's really important to note, this is absolutely a macro phenomenon. This is not where we're not being successful against competitors. And in fact, I think another interesting thing is during the year, we actually took 17 deals away from our competitors, both high end and low end, where they said they really needed an enterprise solution at scale, and they came to Zuora because what they had wasn't doing what they needed.

所以我認為值得注意的是，這絕對是一個宏觀現象。這並不是我們在對抗競爭對手時未能取得成功的地方。事實上，我認為另一件有趣的事情是，在這一年裡，我們實際上從競爭對手那裡拿走了17 筆交易，包括高端和低端，他們說他們確實需要大規模的企業解決方案，他們來到Zuora 是因為他們沒有做他們需要做的事情。

Yes, that's absolutely true. If you think about all the customers that we mentioned on the call, I can think of at least three or four or five of those that are competitive win backs, where maybe they picked a competitor two to three years ago, realized it doesn't have the functionality they need and they want them coming back to us.

是的，這絕對是真的。如果你考慮我們在電話中提到的所有客戶，我可以想到至少有三、四或五個具有競爭力的贏回客戶，他們可能在兩三年前選擇了一個競爭對手，但意識到這並不重要擁有他們需要的功能，他們希望這些功能回到我們身邊。

Okay. Thanks. That is very helpful. Appreciate the color there. And then maybe one quick follow up, too, just on the go-to-market investments. You guys mentioned that's going to be a big focus for you guys this year is improving the go-to-market efficiency. Could you maybe talk about some of the investments you're making around this motion, and how you're thinking about the partner channel investments for this year? Thanks, guys.

好的。謝謝。這非常有幫助。欣賞那裡的顏色。然後也許還有一個關於上市投資的快速後續。你們提到今年你們的重點是提高上市效率。您能否談談您圍繞這項動議所做的一些投資，以及您如何考慮今年的合作夥伴通路投資？多謝你們。

Hi, it's Robbie. We are making sure that as we look at go-to-market, we're keeping all of our [core areas] exactly flat. We're focused very much on the marketing and the pipeline areas in terms of how we create more demand around those particular areas and make that fast moving in that sense.

嗨，我是羅比。我們確保在考慮進入市場時，我們保持所有[核心領域]完全平坦。我們非常關注行銷和通路領域，以及如何圍繞這些特定領域創造更多需求，並在這個意義上快速發展。

Yeah. Maybe I'll add a little color on that. Think about it as how do we generate demand. And we generate demand primarily through two ways. We do it through ourselves, and we do it through our partners. We really like the partner demand. Those partners in previous calls we mentioned. Those deals closed at a higher close rate; they tend to be bigger.

是的。也許我會在上面添加一點顏色。將其視為我們如何產生需求。我們主要透過兩種方式產生需求。我們透過自己做到這一點，並透過我們的合作夥伴做到這一點。我們非常喜歡合作夥伴的需求。我們在之前的電話會議中提到的那些合作夥伴。這些交易以較高的成交率完成；它們往往更大。

Yes, once you get into the seven-digit deals, our partners feel us to just do more scrutiny on those deals, but partners remain really, really important for us. And then on the pipeline side, how we do demand just through what the industry calls. SDRs or BDRs, I think there's a transformation there. I think AI is going to help. And I think we're going to be able to find -- we'd be much, much more productive in that group.

是的，一旦達成七位數的交易，我們的合作夥伴就會覺得我們只需對這些交易進行更多審查，但合作夥伴對我們來說仍然非常非常重要。然後在管道方面，我們如何透過產業所說的方式來滿足需求。SDR 或 BDR，我認為其中存在轉變。我認為人工智慧會有所幫助。我認為我們將能夠發現——我們在這個團隊中的生產力會高得多。

Thanks, Patrick.

謝謝，派崔克。

Joseph Vafi, Canaccord.

約瑟夫·瓦菲，Canaccord。

Hey, guys. Good afternoon. Thanks for the questions. Just wondering, does it sound like perhaps one of those two customers could come back at some point when those IT projects begin again. And then just kind of wanted to make sure there was really no competitive influence on those deals. And then I have a quick follow up.

大家好。午安.感謝您的提問。只是想知道，聽起來這兩個客戶中的一個是否可能會在這些 IT 專案再次開始時回來。然後只是想確保這些交易確實沒有競爭影響。然後我會進行快速跟進。

Yeah, the company that did not go live, that industry is definitely hitting headwinds if you will. And so absolutely, the business that we're in that company is subscription, is recurring revenue is really important. That's why this did take us by surprise. And so I'm certainly optimistic that eventually we'll have another shot to work with them and make them successful.

是的，如果你願意的話，沒有上線的公司，這個行業一定會遇到阻力。因此，我們公司的業務絕對是訂閱，經常性收入非常重要。這就是為什麼這確實讓我們感到驚訝。因此，我當然樂觀地認為，最終我們將有另一個機會與他們合作並使他們取得成功。

Okay. Great. And then on the workforce reduction, could you maybe drill down a little bit? And was it broad-based across the company? Was there certain areas where there was a little bit more reduction? And how do you see that reduction affecting the R&D and the go-to-market?

好的。偉大的。那麼關於裁員的問題，你能不能再深入一點？它在整個公司範圍內是否具有廣泛的基礎？是否有某些領域的減少幅度較大？您如何看待這種減少對研發和上市的影響？

Hey, thanks a lot, Joe. So this action was really focused on efficiency, a little smaller than what we had done last time about 8% net. And they give us $15 million of savings for the year. And so maybe I would put it into the following buckets.

嘿，非常感謝，喬。所以這個行動真正關注的是效率，比我們上次所做的大約 8% 淨值還要小。他們今年為我們節省了 1500 萬美元。所以也許我會把它放入以下桶子中。

First bucket is what we did in product and technology. And when we think there, as COVID started out, we did a lot of hiring, especially offshore. And when we did that, we hired a lot of generalists, and we also let people kind of be scattered throughout wherever they were. And we found was this just wasn't really effective for us.

第一個桶子是我們在產品和技術方面所做的事情。當我們想到那裡時，隨著新冠疫情的爆發，我們進行了大量招聘，尤其是海外招聘。當我們這樣做時，我們僱用了很多通才，我們也讓人們分散在任何地方。我們發現這對我們來說並不是真正有效。

We need especially these generalists and folks to be aware they're able to collaborate and get into an office. And we just weren't seeing productivity from them. And so those were some reductions that we made the decision to make. So from a standpoint of we were able to get more efficient there, but we were seeing very little profitability. So we feel like there's not a loss of capacity there.

我們特別需要這些多面手和普通人意識到他們能夠協作並進入辦公室。我們只是沒有看到他們的生產力。因此，我們決定進行一些削減。因此，從我們的角度來看，我們能夠提高效率，但我們看到的獲利能力非常低。所以我們覺得那裡的容量沒有損失。

On the go-to-market side, I think Robbie hit it is. We're not divesting in capacity out in the field, but we're just getting a lot smarter on how we're generating pipeline. What we're doing through partners, what we're doing through marketing, how we're spending our outbound. We're just learning there are certain things that are really productive and there's other areas that aren't.

在進入市場方面，我認為羅比做到了這一點。我們並沒有放棄現場產能，但我們只是在如何產生管道方面變得更加聰明。我們透過合作夥伴做什麼，我們透過行銷做什麼，我們如何支出我們的出境遊。我們剛剛了解到，有些事情確實富有成效，而有些領域則不然。

And the last is, we got really focused on G&A. There's a lot of areas where we've invested in the last two years on processing technology. That's just allowed us to get a lot more efficient, and we're dropping those to the bottom line. So overall, I think we've got the right structure, and we still have the investment that we need to deliver the leading product and go-to-market organizations.

最後一點是，我們非常關註一般行政費用。過去兩年我們在加工技術的許多領域進行了投資。這只是讓我們變得更有效率，而我們正在將這些降低到底線。總的來說，我認為我們擁有正確的結構，並且我們仍然擁有交付領先產品和進入市場組織所需的投資。

Great. Thanks for that color. And then just squeeze one more in. I know you were targeting Rule of 30, and you're targeting it again here. But given a couple of the moving parts on the top line and then the cost reductions, do you see yourself getting to the Rule of 30 slightly differently than you were previously or the last time you provided that outlook? Thanks a lot, guys.

偉大的。謝謝那個顏色。然後再擠一個進去就好了。我知道你的目標是“30 條規則”，而你又在這裡再次瞄準它。但考慮到營收方面的一些變化以及成本的降低，您認為自己採用的「30 法則」與之前或上次提供這一前景時相比是否略有不同？非常感謝，夥計們。

So, we've been really disciplined. We said at the beginning of the last year that we weren't sure exactly how things were going to go. If we didn't see the ability to put dollars on the top line that we continue to put through the bottom line, I said at the beginning of last year that we would do 6%-plus profit. We delivered 11%. We're going to continue to do that.

所以，我們真的很遵守紀律。我們去年年初曾說過，我們不確定事情到底會如何發展。如果我們沒有看到將美元投入我們繼續投入利潤的能力，我在去年年初就說過，我們將實現 6% 以上的利潤。我們交付了 11%。我們將繼續這樣做。

So obviously, if you take a look at where we've given the guidance, that's going to imply that we're over a 20% operating margin at the end of the year. So yeah, that'll probably be a little bit more on the bottom line, but we've certainly got opportunity to accelerate on the top line. So I feel like we've got a lot of different avenues for how we can get to that Rule of 30 regardless of what the environment looks like.

顯然，如果你看一下我們給的指導，這將意味著我們到年底的營業利潤率將超過 20%。所以，是的，這可能會增加一點底線，但我們當然有機會加速頂線。所以我覺得我們有很多不同的途徑來實現 30 條規則，無論環境如何。

(Operator Instructions) Joshua Reilly, Needham

（操作員指令）Joshua Reilly，Needham

This is Michael on for Josh today. Thanks for taking my question. I just have two quick ones here. First, what are you seeing in terms of invoice volume growth returning to maybe a more normalized level over time? And then could you help us understand the impact of lower invoice growth to the NRR? Thanks.

這是麥可今天為喬許的發言。感謝您提出我的問題。我這裡只有兩個快速的。首先，隨著時間的推移，您認為發票量成長會恢復到更正常的水平嗎？那麼您能否幫助我們了解發票成長放緩對 NRR 的影響？謝謝。

Yes. I'll go ahead and feel that maybe, Todd, you can jump in. But look, I think we said invoice volume was 10%, revenue volume was 12%. And you compare that to the growth of the GDP in the large countries, you can certainly see that our customer base continues to grow, continues to have a much healthier outsized growth compared to the general economy. So we're in the right part of the market; we're in the right part of the customer.

是的。我會繼續思考，也許托德，你可以加入進來。但你看，我認為我們說發票量是 10%，收入量是 12%。與大國的 GDP 成長進行比較，您當然可以看到我們的客戶群持續成長，與整體經濟相比，繼續保持更健康的超額成長。所以我們處於市場的正確位置；我們處於客戶的正確位置。

Understand, right, how does that correlate to us? I think what you've seen us do, we've been pretty public about it over the last three, four years. It simply reduces our reliance on invoice volume growth for our own growth. And so you've heard us talk about our multiple vectors of growth or multiproduct land and expand strategy.

明白了，對吧，這跟我們有什麼關係？我想你已經看到我們做了什麼，在過去的三、四年裡我們一直在公開談論這一點。它只是減少了我們自身成長對發票量成長的依賴。因此，您已經聽到我們談論我們的多重成長向量或多產品土地和擴張策略。

Today, we can grow by certainly volume and revenue scheduled growth in invoice volume. But we can also grow by additional cross-sell products, right, billing customers that buy revenue and vice versa. You heard us talk about that in the call. Or even within each of these products, we continue to launch new innovations, fraud detection in the billing product, FSP in the revenue product and the like.

今天，我們可以按預定的發票數量和收入增長來增長。但我們也可以透過額外的交叉銷售產品來實現成長，對吧，向購買收入的客戶計費，反之亦然。您在電話中聽到我們談到了這一點。或甚至在這些產品中，我們不斷推出新的創新，計費產品中的詐欺偵測，收入產品中的 FSP 等。

We can certainly sell additional modules and capabilities within a product that they already have. And so our goal is to give our sellers, right, a broad toolbox, if you will, a tool bag to bring value to our customers. And as long as we continue to do that, you're going to see us ability to grow with our customers.

我們當然可以在他們已有的產品中銷售額外的模組和功能。因此，我們的目標是為我們的賣家提供一個廣泛的工具箱，如果你願意的話，一個工具包，為我們的客戶帶來價值。只要我們繼續這樣做，您就會看到我們有能力與客戶一起成長。

Yeah, maybe Michael, the only thing I would follow up with is, we've talked in the past, maybe 30% or so of our revenue is driven by that volume metric. But we don't have a natural correlation for the 10% to 12% growth because as our customers get larger, they get big economies of scale. And that's one of the reasons that there's not an easy correlation for that.

是的，也許邁克爾，我唯一要跟進的是，我們過去談過，也許我們 30% 左右的收入是由銷售指標驅動的。但 10% 到 12% 的成長並沒有自然的相關性，因為隨著我們的客戶規模不斷擴大，他們會獲得巨大的規模經濟。這就是兩者之間不易關聯的原因之一。

And I think Tien hit it right. That's certainly a driver for us. And as we've seen, especially the SaaS market, which is more than 50% of our business, as we've seen growth rates come down, that's been a headwind for us this year.

我認為田說得對。這無疑是我們的驅動力。正如我們所看到的，特別是占我們業務 50% 以上的 SaaS 市場，我們看到成長率下降，這對我們今年來說是一個阻力。

We think we'll see this year that we get to the end of that headwind, but that certainly has caused a bit of a headwind for us. And as those we accelerate, that will be something that we'll be able to take advantage of. But we also have multiple other avenues where we can grow. And the fact that we have a $600 million opportunity within our installed base outside of volume, we think, gives us a lot of ability to also grow within our installed base.

我們認為今年我們會看到這種逆風的結束，但這肯定給我們帶來了一些逆風。隨著我們的加速，這將是我們能夠利用的東西。但我們還有多種其他可以發展的途徑。事實上，我們認為，除了銷售量之外，我們的安裝基礎中還有 6 億美元的機會，這讓我們有很大的能力在我們的安裝基礎上實現成長。

Awesome. Thanks so much. Appreciate it.

驚人的。非常感謝。欣賞它。

Brent Thill, Jefferies.

布倫特·希爾，杰弗里斯。

Well, thanks, for the question. This is Eylon Liani on for Brent Thill. My first question is most companies are telling us that the environment is improving. So other than the macro piece, is there anything structural that we should be aware of?

嗯，謝謝你的提問。我是埃隆·利亞尼 (Eylon Liani) 替補布倫特·希爾 (Brent Thill)。我的第一個問題是，大多數公司都告訴我們，環境正在改善。那麼除了宏觀的部分之外，還有什麼結構性的東西是我們該注意的呢？

And my second question is on the recent layoffs. How much of those the cost savings from the layoffs are being reinvested versus flow back through the margins? If you can help quantify that, that would be helpful. Thanks.

我的第二個問題是關於最近的裁員。裁員節省的成本中有多少被再投資，而不是透過利潤回流？如果你能幫助量化這一點，那將會很有幫助。謝謝。

Yeah, let me field the first one, and I'll let Todd deal the second one. Look, we all read the news just like you all, right? Is there a general sense that maybe at the US, at least we dodged a recession or a soft landing? Is there a general sense that, hey, maybe the Fed will start to lower interest rates? Was it going to be at the start of the year, would it be the end of the year? I'd say we're picking up the same level of optimism in the air that other companies are.

是的，讓我處理第一個，我會讓托德處理第二個。看，我們都像你們一樣讀新聞，對吧？是否存在一種普遍的感覺，也許在美國，我們至少避免了經濟衰退或軟著陸？人們是否普遍認為，嘿，Fed也許會開始降低利率？是在年初還是年底？我想說，我們的空氣中瀰漫著與其他公司一樣的樂觀情緒。

But then I don't know if -- you've obviously been following some of the announcements today. You certainly see other companies be a little bit more muted in their expectations of what revenue growth will look like this coming year. So I think in this uncertain environment, it's good to be prudent. And that's why I like our strategy, right?

但我不知道你是否一直在關註今天的一些公告。你當然會看到其他公司對來年營收成長的預期更加低調。所以我認為在這個不確定的環境下，保持謹慎是有好處的。這就是為什麼我喜歡我們的策略，對吧？

I like our strategy of saying, look, regardless of what's going on in the macro, we can continue to sign on new logos. We might be doing a smaller ACV, a smaller land, but at least to faster sales cycles that leads to more customers. We've got a proven engine that once we get the customers and we get them live, we can grow with them.

我喜歡我們的策略，無論宏觀情況如何，我們都可以繼續簽署新徽標。我們可能會做一個更小的ACV，更小的土地，但至少可以加快銷售週期，從而吸引更多的客戶。我們擁有一個經過驗證的引擎，一旦我們獲得客戶並讓他們上線，我們就可以與他們一起成長。

You heard the stat, about 60% of our customers who were renewed this year actually grew their spend with us. And so we feel good about the strategy that allows us to continue to set ourselves up to be in a great position for long-term durable growth regardless of what happens in the overall macro.

您聽說過統計數據，今年續約的客戶中約有 60% 實際上增加了在我們這裡的支出。因此，我們對這項策略感到滿意，該策略使我們能夠繼續為長期持久成長奠定良好的基礎，無論整體宏觀情況如何。

The only thing I'd also add to what Tien said is I probably talk to 20-plus CFOs in the most recent quarter. And when I talk about all of them, I think everyone is being very cautious in their outlook as they start thinking about this year. So I think the guidance that we've given is really prudent based on the macro from what we're seeing and hearing from our customers.

對於 Tien 所說的，我唯一要補充的是，我可能在最近一個季度與 20 多名財務長進行了交談。當我談論所有人時，我認為每個人在開始思考今年時都對自己的前景非常謹慎。因此，我認為根據我們從客戶那裡看到和聽到的宏觀情況，我們給出的指導非常謹慎。

On your second question, as I noted on the last call was that there was about $15 million of that savings will go to the bottom line for the year. So I appreciate the question.

關於你的第二個問題，正如我在上次電話會議中指出的那樣，其中大約 1500 萬美元的節省將用於今年的利潤。所以我很欣賞這個問題。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。