Cloudflare (NET) Q1 2024 Earnings Call Transcript
Cloudflare (NET) 2024 年第一季財報電話會議實錄

Cloudflare (NET -16.38%)
Q1 2024 Earnings Call 2024 年第一季財報電話會議
May 02, 2024, 5:00 p.m. ET
東部時間 2024 年 5 月 2 日下午 5:00

Contents: 內容

• Prepared Remarks 備註
• Questions and Answers 問題與解答
• Call Participants 徵集參與者

Prepared Remarks: 準備發言：

Operator 操作員

Thank you for standing by, and welcome to the Cloudflare first-quarter 2024 earnings conference call. [Operator instructions] I now like to turn the call over to your host, Phil Winslow, vice president of strategic finance, treasury, and investor relations. You may begin.
感謝各位的支持，歡迎收聽 Cloudflare 2024 年第一季財報電話會議。 [接線員指示] 現在請主持人菲爾-溫斯洛（Phil Winslow）發言。您可以開始了。

Phil Winslow -- Vice President, Strategic Finance, Treasury, and Investor Relations
Phil Winslow -- 策略財務、司庫與投資者關係副總裁

Thank you for joining us today to discuss Cloudflare's financial results for the first quarter of 2024. With me on the call, we have Matthew Prince, co-founder and CEO; Michelle Zatlyn, co-founder, president, and COO; Thomas Seifert, CFO; and Mark Anderson, president of revenue. By now, everyone should have access to our earnings announcement. This announcement, as well as our supplemental financial information, may be found on our Investor Relations website.
感謝各位參加今天的會議，討論 Cloudflare 2024 年第一季的財務表現。與我一起參加電話會議的有聯合創始人兼首席執行官馬修-普林斯（Matthew Prince）、聯合創始人、總裁兼首席營運官米歇爾-扎特林（Michelle Zatlyn）、首席財務官托馬斯-塞弗特（Thomas Seifert）和營收總裁馬克-安德森（Mark Anderson）。現在，大家應該已經看到我們的收益公告了。該公告以及補充財務資訊可在我們的 "投資者關係 "網站上查閱。

As a reminder, we will be making forward-looking statements during today's discussion, including, but not limited to, our customers, vendors, and partners' operations and future financial performance, our anticipated product launches, and the timing and market potential of those products and our anticipated future financial and operating performance, and our expectations regarding future macroeconomic conditions. These results and other comments are not guarantees of future performance and are subject to risks and uncertainties, much of which is beyond our control. Our actual results may differ significantly from those projected or suggested in any of our forward-looking statements. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future.
作為提醒，我們將在今天的討論中發表前瞻性聲明，包括但不限於我們的客戶、供應商和合作夥伴的營運和未來財務業績，我們預期的產品發布、這些產品的上市時間和市場潛力，我們預期的未來財務和營運業績，以及我們對未來宏觀經濟狀況的預期。這些結果和其他評論並不能保證未來的業績，而且會受到風險和不確定因素的影響，其中許多是我們無法控制的。我們的實際結果可能與我們的任何前瞻性陳述中預測或暗示的結果大相徑庭。這些前瞻性聲明僅適用於今天，您不應將其視為我們對未來的看法。

We undertake no obligation to update these statements after this call. For a more complete discussion of the risks and uncertainties that could impact our future operating results and financial condition, please see our filings with the SEC as well as in today's earnings press release. Unless otherwise noted, all numbers we talk about today other than revenue will be on an adjusted non-GAAP basis. You will find a reconciliation of GAAP to non-GAAP financial measures that are included in our earnings release on our Investor Relations website.
我們沒有義務在本次電話會議後更新這些聲明。有關可能影響我們未來經營業績和財務狀況的風險和不確定性的更全面討論，請參閱我們向美國證券交易委員會提交的文件以及今天的財報新聞稿。除非另有說明，否則我們今天討論的除收入以外的所有數字都是基於調整後的非美國通用會計準則（Non-GAAP）。您可以在我們的 "投資者關係 "網站上找到財報中包含的 GAAP 與非 GAAP 財務指標的調整表。

For historical periods, a GAAP to non-GAAP reconciliation can be found in the supplemental financial information referenced a few moments ago. Before wrapping up, please save the date for our Investor Day on Thursday, May 30, which is being held in conjunction with our user conference, CloudFlare Connect, in New York City. A live webcast will also be accessible from our Investor Relations website. Now I'd like to turn the call over to Matthew.
對於歷史數據，可在剛才提到的補充財務資訊中找到 GAAP 與非 GAAP 的對帳。在結束發言之前，請將 5 月 30 日星期四的 "投資者日 "活動的日期保留下來，該活動將與我們的用戶大會 "CloudFlare Connect "同時在紐約舉行。我們也將在投資者關係網站上進行網路直播。現在，我想把電話交給馬修。

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

Thank you, Phil. We had a very strong quarter. We achieved revenue of $378.6 million, up 30% year over year. We added 122 new large customers, those that pay us more than $100,000 per year and now have 2,878 large customers, up 33% year over year.
謝謝你，菲爾。本季我們的業績非常強勁。我們實現了 3.786 億美元的收入，年增 30%。我們新增了 122 家大客戶，也就是那些每年向我們支付超過 10 萬美元的客戶，現在我們擁有 2878 家大客戶，年增 33%。

Revenue contribution from our large customers during the quarter increased to 67%, up from 62% in the first quarter last year. Digging into our largest customers, we added a record number of net new customers year over year spending more than $100,000, $500,000, and $1 million on an annualized basis. We are successfully moving upmarket and becoming a larger and more strategic vendor to more and more of our customers. Our dollar-based net retention held steady quarter over quarter at 115%.
本季來自大客戶的營收貢獻率從去年第一季的 62% 上升到 67%。深入分析我們最大的客戶，我們新增的淨客戶數量比去年同期分別增加了 10 萬美元、50 萬美元和 100 萬美元。我們正成功地向高端市場邁進，成為越來越多客戶心目中更具規模和策略性的供應商。我們以美元為基礎的淨保留率每季穩定在 115%。

Our gross margin was 79.5%, again, above our long-term target range of 75% to 77% and up from 78.9% last quarter. We delivered operating profit of $42.4 million, representing an operating margin of 11.2%. Our gross margin and operating margin performance underscore Cloudflare's efficiency and increasing operational excellence. We again meaningfully outperformed on free cash flow, generating $35.6 million during the quarter.
我們的毛利率為 79.5%，再次高於我們 75% 至 77% 的長期目標範圍，也高於上一季的 78.9%。我們的營業利潤為 4,240 萬美元，營業利益率為 11.2%。我們的毛利率和營業利潤率表現凸顯了 Cloudflare 的效率和日益卓越的營運能力。我們的自由現金流再次大幅超越預期，本季產生了 3,560 萬美元的自由現金流。

We have our hands firmly on the levers of our business. I'm proud of the fact that our team has been able to continue to build our network, service larger and larger customers, and launch entirely new categories of products including in the AI space, while remaining disciplined with our capex, gross margin, operating margin, and cash flow. We have an elegant business that works because how all the pieces fit together and leverage our hyper-efficient network infrastructure in a way that we believe no competitors can match. If I reflect back on the history of Cloudflare, it defies fairly neatly in the seven-year eras.
我們牢牢把握住了業務槓桿。我感到自豪的是，我們的團隊能夠繼續建立我們的網絡，為越來越多的客戶提供服務，並推出包括人工智慧領域在內的全新產品類別，同時保持對資本支出、毛利率、營業利潤率和現金流的嚴格控制。我們的業務非常出色，因為我們將所有環節整合在一起，並利用我們高效的網路基礎設施，我們相信這是任何競爭對手都無法比擬的。如果我回顧 Cloudflare 的歷史，它在七年時間裡的表現相當出色。

The first seven years, 2010 to through 2017 were all about engineering and little else, figuring out if it was even possible to build the revolutionary network we have today. The next seven were all about product, taking that incredible engineering and packaging it up. As we got greater product, we didn't stop being incredible at engineering. We continue to build on and improve that foundation.
從 2010 年到 2017 年的前七年，我們只專注於工程設計，幾乎沒有做其他事情，我們一直在探索是否有可能建立我們今天所擁有的革命性網絡。接下來的七年，我們專注於產品，將令人難以置信的工程技術加以包裝。隨著我們的產品越來越豐富，我們並沒有停止對工程技術的追求。我們將繼續在此基礎上不斷改進。

Looking forward to the next seven years, we will continue to be the best in the world in engineering and product, but we'll add to that world-class sales and marketing. To that end, just 90 days ago, we announced that Mark Anderson will be joining Cloudflare as our new president of revenue to accelerate our next phase of growth at scale. He has the ground running and has been enthusiastically embraced by our team. I thought it made sense for Mark to say a few words on what he's seeing in his first 90 days.
展望未來七年，我們將繼續在工程設計和產品方面保持世界一流水平，並在此基礎上增加世界一流的銷售和行銷。為此，就在 90 天前，我們宣布馬克安德森（Mark Anderson）將加入 Cloudflare，成為我們新的營收總裁，以加速我們下一階段的規模成長。他已經開始工作，並受到我們團隊的熱烈歡迎。我認為馬克有必要談談他在最初 90 天的感受。

Mark?  馬克？

Mark Anderson -- President, Revenue
馬克安德森 - 總裁，收入

Thanks, Matthew. I was with Cloudflare and the team as a Board member for the last 4.5 years. But the thing that surprised me the most getting the trenches is just how incredible the product is. I know this space, and we are leaps and bounds better than any of our competitors.
謝謝你，馬修。在過去的4年半時間裡，我作為董事會成員與Cloudflare及其團隊一起工作。但在工作中最讓我驚訝的是，我們的產品是如此令人難以置信。我了解這個領域，我們比任何競爭對手都好得多。

What also surprised me is how much room for improvement there is for Cloudflare's go-to-market organization. The last year has been about steering away for a world-class enterprise sales organization to emerge. We've got some great people, great experiences. And gosh, I can see the early results.
同樣令我驚訝的是，Cloudflare 的行銷組織還有很大的進步空間。在過去的一年裡，我們一直在引導世界級的企業銷售組織崛起。我們有很多優秀的人才和豐富的經驗。天哪，我能看到早期的成果。

I'm now signing to step on the gas, building and enabling this team that can take Cloudflare's best-of-breed products to every single enterprise everywhere in the world. I don't see anything stopping us from becoming one of the most strategic key vendors to every Fortune 500 company out there. I couldn't be more excited.
現在，我將加足馬力，建立並扶持這個團隊，將 Cloudflare 的一流產品推向全球各地的每家企業。我認為沒有什麼能阻止我們成為財富 500 強企業最具戰略意義的重要供應商之一。我感到無比興奮。

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

Thanks, Mark. Some of the benefits of a world-class leader are hard to measure in the short term, but I'll give you one that can be clearly measured and that stood out to me. The number of applicants for strategic account and enterprise sales positions increased 56% in March versus February following Mark Anderson's appointment. We're definitely hiring.
謝謝，馬克。世界級領導者帶來的一些好處很難在短期內衡量，但我要告訴你一個可以清楚衡量的好處，它讓我印象深刻。馬克-安德森上任後，三月戰略客戶和企業銷售職位的申請人數比二月增加了 56%。我們確實在招募。

Across all positions, we had over 350,000 applicants in Q1, up 47% over the same quarter last year. We added several senior go-to-market leaders with proven track records in their areas of expertise, including a new chief partner officer, a new head of global sales and renewals, and multiple regional strategic account sales leaders. If you're a sales professional who wants to win with great products and world-class leadership, the word is out, Cloudflare is the place to bet the next stage of your career. Beyond incredible hiring, our sales productivity from existing team members improved year over year.
第一季度，我們所有職位的申請人數超過 35 萬人，比去年同期成長 47%。我們新增了幾位在各自專業領域中績效卓著的高階市場領導者，包括一位新的首席合作夥伴長、一位新的全球銷售和續約主管，以及多位區域策略客戶銷售主管。如果您是銷售專業人士，希望透過優秀的產品和世界級的領導力贏得市場，那麼Cloudflare將是您職業生涯下一階段的最佳選擇。除了令人難以置信的招聘，我們現有團隊成員的銷售效率也逐年提升。

Sales cycles were similar to last quarter, and new pipeline attainment exceeded our expectations. I don't think Mark can take credit for any of that yet, which is actually very encouraging. We have room for improvement, as we said. But now we have the right leadership and foundation to take our go-to-market efforts to the next level.
銷售週期與上一季相似，新管道的實現超出了我們的預期。我不認為馬克在這一點上可以居功至偉，這實際上是非常鼓舞人心的。正如我們所說，我們還有改進的空間。但現在我們有了正確的領導和基礎，可以將我們的市場推廣工作提升到一個新的水平。

I feel extremely confident and clear in the long-term opportunity that Cloudflare has in front of us. In the short term, however, my crystal ball is less clear. We see a lot of signals based on our privileged position running a good chunk of the Internet. Even without that visibility, if you've been watching the news at all, it's clear that the near-term outlook for the world is uncertain, increasing tensions in the Middle East, no end in sight from the Russia-Ukraine war and potential signs of instability in Asia.
我對 Cloudflare 面臨的長期機會非常有信心，也非常清楚。但是，在短期內，我的水晶球就沒那麼清晰了。基於我們在互聯網中佔據的重要地位，我們看到了很多訊號。即使沒有這種能見度，如果你一直在關注新聞，你會發現世界的近期前景並不明朗，中東局勢日益緊張，俄烏戰爭看不到盡頭，亞洲也有潛在的不穩定跡象。

It's not at all certain on anything we see that things will get worse. But we do know from even recent history that macro factors can impact short-term sales trends. We're fortunate that we're in the cybersecurity space, perhaps one of the few sectors that can actually benefit from increased global tensions. We're already seeing that, especially in our government business, but we also want to acknowledge the risky world we live in; and b, as we always have been, prudent and careful with our investments and our forecast as we look into what is a short-term cloudy crystal ball.
從我們看到的任何情況來看，都不能確定情況會變得更糟。但我們從最近的歷史中確實知道，宏觀因素會影響短期銷售趨勢。我們很幸運，我們所處的網路安全領域，也許是少數幾個能真正從全球緊張局勢加劇中受益的行業之一。我們已經看到了這一點，特別是在我們的政府業務中，但我們也要承認我們所處的世界充滿風險；在展望短期多雲的水晶球時，我們要一如既往，謹慎小心地對待我們的投資和預測。

That served us well in the past, and I think will prove to be the disciplined approach once again going forward. The short term is uncertain, the long term is bright. And so in the medium term, we're going to keep our hands firmly on the levers of our business and thoughtfully invest in our go-to-market efforts in great engineering and in disruptive new products that deliver incredible value to our customers. That's the winning strategy, especially in uncertain times.
這在過去是行之有效的，我認為在未來也將再次被證明是嚴謹的方法。短期是不確定的，長期是光明的。因此，從中期來看，我們將牢牢掌握業務槓桿，深思熟慮地投資於我們的市場推廣工作，投資於優秀的工程設計和顛覆性的新產品，為我們的客戶帶來難以置信的價值。這是製勝的策略，尤其是在不確定的時期。

Speaking of customers, let me share some great wins for the quarter. The National Cybersecurity Center, the U.K.'s technical authority for Cyber threats, signed a 3-year contract with Cloudflare to deliver its protective domain name service. PBNS, protecting over 1,400 U.K. organizations in central government, local government, healthcare and emergency services from malware and cyber threats.
說到客戶，請容許我與大家分享本季的一些成功案例。國家網路安全中心（National Cyber​​security Center）是英國應對網路威脅的技術權威機構，它與 Cloudflare 簽訂了一份為期 3 年的合同，由 Cloudflare 提供保護性域名服務。 PBNS，保護英國中央政府、地方政府、醫療保健和緊急服務機構中的 1400 多個組織免受惡意軟體和網路威脅的侵害。

This was a very competitive process with several vendors and a rigorous technical evaluation. We tightly collaborate with Accenture, a partner we're looking working with even more closely on its landmark U.K. public sector win. A leading technology company expanded their relationship with Cloudflare signing a 3-year $40 million pool of funds contract, $8.5 million of which are expansion.
這是一個競爭非常激烈的過程，有多家供應商參與，並進行了嚴格的技術評估。我們與埃森哲（Accenture）緊密合作，我們期待與埃森哲在英國公共部門的里程碑式勝利中更加緊密地合作。一家領先的技術公司與 Cloudflare 簽訂了一份為期 3 年、價值 4000 萬美元的資金池合同，其中 850 萬美元用於擴展。

This deal is an example of a strategic platform deal that we're increasingly seeing customers opt for with a rate card for more than 40 Cloudfare parts and services. These include Cloudflare One, Magic Transit, R2, as well as workers' AI, which the customer was quick to dive in and start trialing. As a textbook land-and-expand story, this customer first came to us in 2017 for our allocation security services and has continued to expand over the years with this deal encompassing the vast majority of Cloudflare's platform. A Fortune 100 financial services company signed a similar 4-year $10 million pool of funds deal.
這筆交易是策略平台交易的一個範例，我們看到越來越多的客戶選擇使用一張包含 40 多種 Cloudfare 零件和服務的費率卡。這些服務包括 Cloudflare One、Magic Transit、R2，以及客戶迅速投入並開始試用的工人人工智慧。作為一個教科書式的落地與擴張故事，該客戶在 2017 年首次找到我們，尋求我們的分配安全服務，並在過去幾年中不斷擴張，此次交易涵蓋了 Cloudflare 平台的絕大部分。一家財富 100 強金融服務公司也簽署了類似的 4 年期 1000 萬美元資金池交易。

This customer represents our largest new logo win with a major financial institution. We successfully completed six different proof of concepts. And the main business drivers for going with Cloudflare were resilient, the operational efficiency from a single unified platform, and our ability to meet data sovereignty requirements with complete flexibility at the country level, a requirement that no other vendor was able to accommodate. We anticipate this deal will serve as a beachhead for us to win more financial service customers looking for the same benefits.
該客戶是我們與一家大型金融機構合作中贏得的最大一筆新商標訂單。我們成功完成了六個不同的概念驗證。選擇 Cloudflare 的主要業務驅動因素是彈性、單一統一平台的營運效率，以及我們在國家層級完全靈活地滿足資料主權要求的能力，這是其他任何供應商都無法滿足的要求。我們預計這筆交易將成為我們贏得更多尋求相同優勢的金融服務客戶的灘頭堡。

A large international energy company signed a 5-year $4.5 million contract. This new customer is going all in with Cloudflare's SASE platform with 6,000 Zero Trust seats along with CASB, DLP, browser isolation, MAGIC WAN, and Magic Firewall. Competing against a first-generation Zero Trust vendor, our focus on scalability and efficiency, as well as the ability to consolidate several vendors due to the significant value in our overall portfolio, were key factors delivering this win. A large financial institution in Latin America signed a 2-year $1.3 million contract for Zero Trust seats for their employees and contractors, along with our application security services.
一家大型國際能源公司簽訂了一份為期 5 年、價值 450 萬美元的合約。這家新客戶正在全面使用 Cloudflare 的 SASE 平台，該平台擁有 6000 個零信任席位以及 CASB、DLP、瀏覽器隔離、MAGIC WAN 和 Magic Firewall。在與第一代零信任供應商的競爭中，我們對可擴展性和效率的關注，以及因我們整體產品組合的巨大價值而整合多家供應商的能力，是我們贏得這場競爭的關鍵因素。拉丁美洲的一家大型金融機構簽署了一份為期 2 年、價值 130 萬美元的合同，為其員工和承包商提供零信任席位以及我們的應用安全服務。

This is a very competitive process with 11 participants. Cloudflare's pace of innovation, speed of deployment, superior performance, and integrated platform with DDoS and WAF for agentless access set us apart from the rest. A leading digital marketplace signed a 3-year $880,000 contract for Zero Trust, MAGIC WAN, and application security. The company was looking to simplify, optimize and reduce latency in their security architecture and WAN platform.
這是一個競爭非常激烈的過程，共有 11 位參與者。 Cloudflare 的創新步伐、部署速度、卓越性能以及與 DDoS 和 WAF 整合的無代理存取平台使我們從眾多競爭者中脫穎而出。一家領先的數位市場簽訂了一份為期 3 年、價值 88 萬美元的零信任、MAGIC 廣域網路和應用程式安全合約。該公司希望簡化、優化並減少其安全架構和廣域網路平台的延遲。

With their incumbent solution, this company found it difficult to roll out consistent security posture where they can manage security and network together. With Cloudflare, this customer is able to consolidate seven incumbent products onto Cloudflare modernized network, merging network and security solutions on our unified platform with a single control plane. A Fortune 100 government-sponsored financial services company signed a 3-year $3 million contract for DDoS protection with our Magic Transit, Magic Firewall, and DNS firewall products. This customer was looking for a solution that was more resilient, performant, and better architected than their incumbent solution.
透過現有的解決方案，該公司發現很難推出一致的安全態勢，無法同時管理安全和網路。有了 Cloudflare，該客戶能夠將現有的七種產品整合到 Cloudflare 現代化網路中，在我們的統一平台上透過單一控制平面合併網路和安全解決方案。由財富 100 強政府贊助的金融服務公司與我們的 Magic Transit、Magic Firewall 和 DNS 防火牆產品簽訂了為期 3 年、價值 300 萬美元的 DDoS 保護合約。該客戶一直在尋找比現有解決方案更具彈性、效能更強、架構更好的解決方案。

With Cloudflare's unified platform, this customer is able to improve attack mitigation outcomes on a single pane of glass and eliminate the need for dedicated teams to run and manage multiple products. Another deal with this customer is already underway. A leading construction company signed a 3-year $720,000 contract for Zero Trust, Magic WAN, and Magic Firewall. This customer is looking to shift from a legacy hub-and-spoke architecture, eliminating costly hardware appliances at job sites to a modern, cloud-native SASE model, Cloudflare One against the first-generation Zero Trust vendor due to our superior network, pace of innovation, ease of use and speed of deployment.
有了 Cloudflare 的統一平台，該客戶就能在單一視窗上改善攻擊緩解結果，無需專門的團隊來運作和管理多個產品。與該客戶的另一項交易正在進行中。一家領先的建築公司與 Zero Trust、Magic WAN 和 Magic Firewall 簽訂了為期 3 年、價值 72 萬美元的合約。該客戶希望從傳統的集線器和輻條架構轉變為現代的雲端原生 SASE 模型，Cloudflare One 憑藉其卓越的網路、創新速度、易用性和部署速度擊敗了第一代 Zero Trust 供應商。

A U.S. government agency signed a 1-year $800,000 contract for Zero Trust, Magic WAN, and R2 Object Storage. The agency was looking to modernize infrastructure and eliminate a complex network of multiple legacy point solution vendors. Cloudflare displaced a first-generation Zero Trust provider due to our ease of use, feed of deployment, and integrated platform with a single control plane.
一家美國政府機構簽訂了一份為期 1 年、價值 80 萬美元的合同，採購 Zero Trust、Magic WAN 和 R2 Object Storage。該機構希望實現基礎設施現代化，並消除由多個傳統點解決方案供應商組成的複雜網路。 Cloudflare 取代了第一代零信任供應商，因為我們易於使用、易於部署，並且整合了單一控制平面的平台。

These are all great wins. And again, I think what we're seeing is more and more customers are turning to the complete Cloudflare platform. Before I hand it over to Thomas, I wanted to spend a couple of minutes talking about Cloudflare Workers, our developer platform. The last few months were incredible for the entire workers' ecosystem.
這些都是巨大的成功。同樣，我認為我們看到的是，越來越多的客戶正在轉向完整的 Cloudflare 平台。在交給湯瑪斯之前，我想花幾分鐘時間談談我們的開發者平台Cloudflare Workers。過去幾個月對於整個 Workers 生態系統來說都是不可思議的。

First, we crossed over 2 million active developers building applications on Cloudflare Workers. Second, in April, we GA-ed a number of key products like DY, our serverless SQL database; hyperdrive, which makes any traditional database perform like it's globally distributed; and Workers AI, which allows developers to run and tune AI models across our global network. We're ahead of schedule rolling out GPUs across our network and now have them running in more than 150 cities globally, making us what we believe is the most widely distributed AI cloud by a huge margin. Our next generation of servers that begin to roll out in Q2 have GPUs built in by default and will support faster influence in even larger, more complicated models.
首先，我們在 Cloudflare Workers 上建立應用程式的活躍開發人員超過了 200 萬。其次，在四月份，我們對一些關鍵產品進行了GA-ed，如DY，我們的無伺服器SQL資料庫；hyperdrive，它能讓任何傳統資料庫像全球分散式資料庫一樣運作；Workers AI，它允許開發人員在我們的全球網路上運行和調整人工智慧模型。我們提前在我們的網路中推出了 GPU，現在它們已在全球 150 多個城市運行，使我們成為我們認為分佈最廣的人工智慧雲端。我們在第二季度開始推出的下一代伺服器預設內建了 GPU，將支援對更大型、更複雜的模型產生更快的影響。

Developers are building incredible new applications using Workers AI, and we're making it increasingly easy for them. We added support for Python, the second most popular programming language generally and the most common language for AI applications. We rolled out our partnership with Hugging Face, making it one-click simple to deploy most of their catalog of models to Cloudflare's network. And we added other bleeding edge models, including releasing Meta's Llama-3 to production simultaneously the day it was announced.
開發人員正在使用 Workers AI 建立令人難以置信的新應用，而我們正在為他們提供越來越多的便利。我們增加了對 Python 的支持，這是全球第二流行的程式語言，也是人工智慧應用最常用的語言。我們推出了與 Hugging Face 的合作夥伴關係，一鍵即可將他們的大部分模式目錄部署到 Cloudflare 網路。我們還增加了其他尖端模型，包括在 Meta 的 Llama-3 發布當天同時將其投入生產。

One of my favorite aspects of my job is I feel like I get to see into the future when I talk to developers who are building on Cloudflare Workers. I'm proud that we're delivering the tools they need to build applications that are intelligent, scalable, and lightning fast around the world. Internally and externally, our innovation engine continues to fire on all cylinders. And as I said, I've never been more excited about the future for Cloudflare, the Internet, and us users who will get to enjoy the benefits of all of this innovation in so many aspects of our lives.
我工作中最喜歡的一點是，當我與在 Cloudflare Workers 上進行開發的開發人員交談時，我感覺自己能看到未來。我們為他們提供所需的工具，幫助他們在全球範圍內構建智能、可擴展、快如閃電的應用程序，對此我深感自豪。無論對內或對外，我們的創新引擎都在持續發力。正如我所說的，我從未像現在這樣對 Cloudflare、互聯網和我們用戶的未來感到興奮，他們將在我們生活的方方面面享受到所有這些創新帶來的好處。

With that, I'll turn it over to Thomas. Thomas, take it away.
好了，現在交給湯瑪斯。湯瑪斯，把它拿走

Thomas Seifert -- Chief Financial Officer
托馬斯-塞弗特 - 首席財務官

Thank you, Matthew, and thank you to everyone for joining us. We are pleased with our execution during the first quarter. Sales productivity improved year over year again this quarter. Sales cycles were similar to last quarter, and our new pipeline attainment exceeded our expectations.
謝謝你，馬修，謝謝大家的參與。我們對第一季的執行感到滿意。本季的銷售效率較去年同期再次提高。銷售週期與上一季相近，我們的新管道實現率超出了我們的預期。

The quarter was highlighted by sustained momentum with large customers including our largest new logo win with a major financial institution and continued progress in the public sector, including our largest contract with the new foreign government customers. We're also seeing security remain a high priority for our customers given continued geopolitical uncertainty and high-profile cyber attacks, driving demand for our application and network security businesses as well as Cloudflare One. We also maintained our strong commitment to being fiscally responsible and act as good stewards of investors' capital. During the first quarter, operating profit more than doubled year over year, and we generated strong free cash flow of $35.6 million, driven by a notable uptick in collections on our accounts receivable.
本季度的亮點是大客戶的持續發展勢頭，包括我們與一家大型金融機構簽訂的最大的新徽標合同，以及在公共部門取得的持續進展，包括我們與新的外國政府客戶簽訂的最大合同。鑑於地緣政治的持續不確定性和備受矚目的網路攻擊，我們也看到安全問題仍然是客戶的重中之重，這推動了對我們的應用和網路安全業務以及 Cloudflare One 的需求。此外，我們也堅持對財務負責的堅定承諾，為投資者的資金提供良好的管理。在第一季度，我們的營業利潤年增了一倍多，並且在應收帳款收款顯著增加的推動下，我們產生了 3,560 萬美元的強勁自由現金流。

Turning to revenue. Total revenue for the first quarter increased 30% year over year to $378.6 million. From a geographic perspective, the U.S. represented 52% of revenue and increased 28% year over year.
關於收入。第一季總營收年增 30%，達到 3.786 億美元。從地區來看，美國佔營收的 52%，年增 28%。

EMEA represented 28% of revenue and increased 35% year over year. APAC represented 12% of revenue and increased 22% year over year. Turning to our customer metrics. In the first quarter, we had about 197,000 paying customers representing an increase of 17% year over year.
歐洲、中東和非洲地區佔營收的 28%，年增 35%。亞太地區佔營收的 12%，年增 22%。再來看我們的客戶指標。第一季度，我們擁有約 19.7 萬名付費客戶，較去年同期成長 17%。

We ended the quarter with about 2,900 large customers representing an increase of 33% year over year and an addition of 122 large customers in the quarter. As Matthew mentioned, we were pleased to see revenue contribution from large customers during the quarter increased again to 67% of revenue, up from 62% in the first quarter last year. We also added a record number of net new customers year over year across all three large customer cohorts, that is those spending more than $100,000, $500,000, and $1 million on an annualized basis with Cloudflare. Our dollar-based natural pension rate was 115% during the first quarter and consistent sequentially.
本季末，我們擁有約 2,900 家大客戶，年增 33%，本季新增 122 家大客戶。正如馬修（Matthew）所提到的，我們很高興地看到，本季來自大客戶的收入佔比從去年第一季的 62% 提高到了 67%。此外，我們在所有三個大客戶群（即在 Cloudflare 的年化支出超過 10 萬美元、50 萬美元和 100 萬美元的客戶）中的淨新增客戶數量也創下了歷史新高。第一季度，我們以美元為基礎的自然退休金率為 115%，並連續保持穩定。

As we mentioned last quarter, there can be some variability in this metric quarter to quarter, but we continue to believe the prior decelerating trend in DNR is stabilizing near these levels. Moving to gross margin. First-quarter gross margin was 79.5%, representing an increase of 60 basis points sequentially and an increase of 170 basis points year over year. Network capex represented 8% of revenue in the first quarter as we continue to benefit from our focus on driving great efficiency from our infrastructure and the uniqueness of our platform to onboard new workloads.
正如我們在上一季提到的，這一指標在各季度之間會有一些變化，但我們仍然相信，DNR 先前的下降趨勢正在這些水平附近趨於穩定。再來看毛利率。第一季毛利率為 79.5%，季增 60 個基點，年增 170 個基點。第一季網路資本支出佔收入的 8%，這得益於我們對提高基礎設施效率的重視，以及我們平台的獨特性，以適應新的工作負載。

We expect network capex to be 10% to 12% of revenue in fiscal 2024. Turning to operating expenses. First-quarter operating expenses as a percentage of revenue decreased by 3% year over year to 68% as we remain committed to driving higher productivity and greater efficiency across our operations. Our total number of employees increased 9% year over year, bringing our total headcount to 3,704 at the end of the quarter.
我們預計 2024 財年的網路資本支出將佔營收的 10%至 12%。關於營運支出。第一季營運支出佔營收的比例年減了 3%，達到 68%，這是因為我們將繼續致力於提高生產力和營運效率。我們的員工總數年增了 9%，截至本季末，我們的員工總數達到了 3,704 人。

Sales and marketing expenses were $156.8 million for the quarter. Sales and marketing as a percentage of revenue decreased to 41% from 42% in the same quarter last year. Over the last 5 quarters, we focused on refining our go-to-market strategies and operations. We are encouraged by the double-digit year-over-year improvement in sales productivity that we again delivered during the first quarter, which continues the upward trend from the trough of early last year to the productivity levels we consistently achieved in 2021 and early 2022.
本季的銷售和行銷費用為 1.568 億美元。銷售和行銷費用佔收入的比例從去年同期的 42% 降至 41%。在過去的 5 個季度裡，我們專注於完善市場策略和營運。第一季度，我們的銷售生產力再次實現了兩位數的同比增長，這讓我們倍受鼓舞，我們將繼續保持從去年年初的低谷到 2021 年和 2022 年初持續實現的生產力水平的上升趨勢。

We expect this positive trajectory to continue based on the analysis of our pipeline and with the onboarding of Mark Anderson and the other senior go-to-market leaders Matthew referenced earlier. As you've heard us say many times, we are committed to the underlying unit economics of our business and make data-driven decisions to pace hiring. The improvement in sales productivity and other leading indicators of our business give us confidence to invest in additional go-to-market improvements and further expand sales capacity. As a result, we intend to accelerate headcount additions in the coming quarters as compared to the first quarter.
根據我們對人才儲備的分析，以及馬克-安德森（Mark Anderson）和馬修（Matthew）之前提到的其他高級市場領導人的加入，我們預計這一積極的發展軌跡將繼續下去。正如大家多次聽到我們說過的，我們致力於業務的基本單位經濟效益，並根據數據做出招募決策。銷售生產力和其他業務領先指標的提高，使我們有信心投資於更多的市場推廣改善措施，並進一步擴大銷售能力。因此，與第一季相比，我們打算在未來幾季加快增加員工人數。

Research and development expenses were $58.7 million in the quarter. R&D as a percentage of revenue decreased to 16% from 18% in the same quarter last year. General and administrative expenses were $43.2 million for the quarter. G&A as a percentage of revenue decreased to 11% from 12% in the second quarter last year.
本季的研發費用為 5,870 萬美元。研發費用佔營收的比例從去年同期的 18% 降至 16%。本季總務和行政支出為 4,320 萬美元。一般及行政費用佔收入的比例從去年第二季的 12% 降至 11%。

Operating income was $42.4 million compared to $19.4 million in the same period last year. First-quarter operating margin was 11.2%, an increase of 450 basis points year over year. These results highlight our continued focus on becoming more efficient and more productive given that operational excellence is a long-term competitive advantage. Turning to net income on the balance sheet.
營業收入為 4,240 萬美元，去年同期為 1,940 萬美元。第一季營業利益率為 11.2%，較去年同期成長 450 個基點。這些結果凸顯了我們對提高效率和生產力的持續關注，因為卓越營運是一項長期競爭優勢。再來看資產負債表的淨收入。

Our net income in the quarter was $58.2 million or a diluted net income of $0.16 per share. We ended the first quarter with $1.7 billion in cash, cash equivalents, and available-for-sale securities. Free cash flow was $35.6 million in the first quarter or 9% of revenue compared to $13.9 million or 5% of revenue in the same period last year. Remaining performance obligations, or RPO, came in at $1.343 billion, representing an increase of 8% sequentially and 40% year over year.
本季淨收入為 5,820 萬美元，攤薄後每股淨收入為 0.16 美元。第一季結束時，我們擁有 17 億美元的現金、現金等價物和可供出售證券。第一季的自由現金流為 3,560 萬美元，佔營收的 9%，而去年同期為 1,390 萬美元，佔營收的 5%。剩餘履約義務（RPO）為 13.43 億美元，季增 8%，年增 40%。

Current RPO was 70% of total RPO. Moving to guidance for the second quarter and full-year 2024. We are pleased with our execution during the first quarter. However, ongoing mixed macroeconomic data points and heightened geopolitical uncertainty serve as reminders that we continue to operate in a business environment that remains challenging to predict.
目前 RPO 佔總 RPO 的 70%。接下來是 2024 年第二季和全年的指導目標。我們對第一季的執行感到滿意。然而，宏觀經濟數據好壞參半，地緣政治不確定性加劇，這些都提醒我們，我們仍將在一個難以預測的商業環境中運作。

As a result, we remain prudent in our outlook for 2024. For the second quarter, we expect revenue in the range of $393.5 million to $394.5 million, representing an increase of 28% year over year. We expect operating income in the range of $35 million to $36 million, and we expect an effective tax rate of 10%. We expect diluted net income per share of $0.14, assuming approximately 360 million shares outstanding.
因此，我們對 2024 年的前景保持謹慎。對於第二季度，我們預計營收在 3.935 億美元到 3.945 億美元之間，年增 28%。我們預計營業收入在 3,500 萬美元到 3,600 萬美元之間，有效稅率為 10%。假設已發行股票約 3.6 億股，我們預期攤薄後每股淨收益為 0.14 美元。

For the full-year 2024, we expect revenue in the range of $1.648 billion to $1.652 billion, representing an increase of 27% year over year. We expect operating income for the full year in the range of $160 million to $164 million. We expect an effective tax rate of 10% for 2024. And we expect diluted net income per share over that period to be $0.60 to $0.61, assuming approximately 361 million shares outstanding.
對於 2024 年全年，我們預計營收在 16.48 億美元到 16.52 億美元之間，年增 27%。我們預計全年營業收入在 1.6 億美元到 1.64 億美元之間。我們預計 2024 年的實際稅率為 10%。假設流通股約為 3.61 億股，我們預期這段期間稀釋後的每股淨收益為 0.60 美元至 0.61 美元。

We expect free cash flow to be relatively consistent with operating profit for the full-year 2024 with the first half lower and the second half higher compared with operating profit. In closing, our team remains committed to driving operational excellence, ensuring long-term growth, and delivering significant shareholder value. I'd like to thank our employees for their dedication to our mission as well as our customers for trusting us to help them solve some of the hardest problems that they face when modernizing, transforming, and securing their businesses. And with that, I'd like to open it up for questions.
我們預計 2024 年全年的自由現金流將與營業利潤保持相對一致，與營業利潤相比，上半年較低，下半年較高。最後，我們的團隊將繼續致力於推動卓越運營，確保長期成長，並為股東創造巨大價值。我要感謝我們的員工為我們的使命所做的奉獻，感謝我們的客戶信任我們，幫助他們解決在業務現代化、轉型和安全方面所面臨的一些最棘手的問題。下面請大家提問。

Operator, please poll for questions.
接線員，請提問。

Questions & Answers: 問與答：

Operator 操作員

Thank you. We will now being the question-and-answer session. [Operator instructions] Your first question comes from the line of Matt Hedberg from RBC Capital Markets. Your line is open.
謝謝。現在進入問答環節。 [第一個問題來自加拿大皇家銀行資本市場的 Matt Hedberg。您的電話已接通

Matt Hedberg -- RBC Capital Markets -- Analyst
Matt Hedberg -- 加拿大皇家銀行資本市場 -- 分析師

Great. Thaks guys. Congrats on the quarter. Maybe one for Matthew first and then one for Thomas.
太好了謝謝你們。恭喜你們拿到四分之一也許先給馬修一個，然後再給湯瑪斯一個。

Matthew, our checks continue to show you're becoming more relevant in SASE. Can you talk a bit more about the progress in that market? And why you appear to be taking share on what it feels like a more competitive market today?
馬修，我們的調查繼續顯示，你們在 SASE 市場的地位越來越重要。你能談談該市場的進展嗎？為什麼你們似乎在一個競爭更加激烈的市場上佔據了份額？

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

Yeah. I think we're really proud of our team for our ability to execute there. SASE, for those people who aren't as familiar with it, is the forward proxy products that we sell. It helps make sure that employees who are using the Internet online are protected from malware, protected from malicious sites that the networks that you use as part of your business are as secure as possible.
我為我們團隊的執行能力感到自豪。對於那些不太熟悉 SASE 的人來說，這是我們銷售的前向代理商產品。它有助於確保正在使用網路的員工免受惡意軟體和惡意網站的侵害，確保您的業務所使用的網路盡可能安全。

We were able to build our SASE platform on top of Cloudflare's existing network, and the advantage of that is that it means that you get a true platform. Not only do you get those forward proxy products, but a lot of times, we're bundling in our reverse proxy products. And that total solution is extremely compelling in the marketplace, and it's something that no other SASE vendor can match. And so I think we are a newer entrant into this space, but we've caught up very quickly.
我們能夠在 Cloudflare 現有網路的基礎上建立 SASE 平台，這樣做的好處是，您可以獲得一個真正的平台。您不僅可以獲得正向代理產品，而且很多時候，我們還捆綁了反向代理產品。這種整體解決方案在市場上極具吸引力，是其他 SASE 供應商無法比擬的。因此，我認為我們是這一領域的新進入者，但我們已經迅速迎頭趕上。

You can see we have improved more in the Gartner rankings, in the Forrester rankings than any other vendor in this space and companies are taking notice. The other thing that I think everybody really loves is most security companies think that performance is sort of a nice to have, not a must have. We never accepted that. And so our SASE platform is significantly better and faster than anyone else.
你可以看到，我們在 Gartner 排名和 Forrester 排名中的進步幅度超過了這一領域的任何其他供應商，公司也注意到了這一點。我認為大家都非常喜歡的另一件事是，大多數安全公司都認為性能是一種很好的條件，而不是必須具備的條件。我們從不接受這種觀點。因此，我們的 SASE 平台比其他任何人都要好得多、快得多。

And so anyone who's listening to this, if you're frustrated with the VPN that you have to log into, if you're frustrated with whatever service it's providing that, even if it's a new cloud service, if it's slowing you down and making it harder for you to do work, give us a call at Cloudflare because we can actually improve that and make it significantly better. And that's what we're seeing from customer after customer after customer, is that our next-generation SASE platform is winning in this space.
因此，如果您正在收聽這期節目，如果您對必須登入的VPN 感到沮喪，如果您對所提供的任何服務感到沮喪，即使它是一項新的雲端服務，如果它拖慢了您的速度，讓您更難進行工作，請致電Cloudflare，因為我們可以實際改善這種情況，使其大大改善。這就是我們從一個又一個客戶那裡看到的，我們的下一代 SASE 平台正在這個領域中取得勝利。

Matt Hedberg -- RBC Capital Markets -- Analyst
Matt Hedberg -- 加拿大皇家銀行資本市場 -- 分析師

Excellent. And then maybe just a quick one for Thomas. I know calculated billings isn't a great metric for you guys based on your model, but I'm wondering how we should think about billings in the context of your expanded usage-based pricing model.
好極了然後，我想問一下湯瑪斯。我知道根據你們的模式，計算出的計費並不是一個很好的指標，但我想知道，在你們擴展的基於使用量的定價模式下，我們應該如何考慮計費。

Thomas Seifert -- Chief Financial Officer
托馬斯-塞弗特 - 首席財務官

Yes. Especially if we compare fourth quarter to this quarter, fourth quarter was a very strong quarter, both in terms of new business as well as in terms of renewal. But what made -- just for a special from a comparability perspective, as you heard Matthew talked about some very large significant deals both in the federal as well as in the commercial space, some of these very large deals are pool of fund deals, and they have a very different shape to them from current RPO and billings perspective. And one indication is RPO, it's up 40% year over year, where you see this momentum more neutralized and some of the noise taken away.
是的。特別是如果我們將第四季與本季進行比較，第四季無論是新業務還是續約業務都非常強勁。但是，從可比性的角度來看，正如你們聽到馬修（Matthew）談到的聯邦和商業領域的一些非常重要的大型交易，其中一些大型交易是基金池交易，從當前的RPO 和計費角度來看，它們有非常不同的形狀。其中一個跡像是 RPO，年增了 40%，你可以看到這種勢頭得到了中和，一些噪音也被消除了。

But without any doubt of this business, it's becoming more complex. And this is then also reflected in some more noise in -- from a quarter-to-quarter perspective. But overall, we are really happy with the performance in the quarter.
但毫無疑問，這項業務正變得越來越複雜。從逐季的角度來看，這也反映在一些更多的噪音上。但總體而言，我們對本季的表現非常滿意。

Matt Hedberg -- RBC Capital Markets -- Analyst
Matt Hedberg -- 加拿大皇家銀行資本市場 -- 分析師

Got it. Thanks a lot, guys.
明白了非常感謝，夥計們。

Operator 操作員

Your next question comes from the line of Andrew Nowinski from Wells Fargo. Your line is open.
下一個問題來自富國銀行的安德魯-諾溫斯基（Andrew Nowinski）。您的電話已接通

Andrew Nowinski -- Wells Fargo Securities -- Analyst
Andrew Nowinski -- 富國證券 -- 分析師

Great. Thanks very much for taking the question, and congrats on a nice quarter. I wanted to start with a question on Workers AI because I think it's one of the most exciting products that you have in your portfolio. You mentioned Workers AI and developers are using your platform to build some new AI applications.
太好了。非常感謝你接受我的提問，恭喜你取得了一個不錯的季度業績。我想從 Workers AI 開始提問，因為我認為這是你們產品組合中最令人興奮的產品之一。你提到了 Workers AI，開發人員正在使用你們的平台來建立一些新的人工智慧應用。

Can you just give us some examples of maybe what those apps are and why they chose Workers AI to build on among the many other alternatives out there?
您能否舉例說明這些應用程式是什麼，以及他們為何在眾多其他應用程式中選擇 Workers AI 作為基礎？

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

Yeah, Andrew, I -- as I said, one of the most fun parts of my job is getting to see what developers are building. So let me give you a handful of examples off the top of my head and see if any of these are interesting. You can stop me if they get boring. I think one of the largest e-commerce platforms out there is starting to use Workers AI to do image classification and generate keywords for their shops.
是的，安德魯，我 -- 正如我所說的，我工作中最有趣的部分之一就是了解開發人員正在開發什麼。所以，讓我舉幾個例子，看看有沒有有趣的。如果你覺得無聊，你可以阻止我。我認為最大的電子商務平台之一已經開始使用 Workers AI 進行圖片分類，並為其店鋪產生關鍵字。

A start-up in the drone space is taking imagery and turning it into 3D models and using Workers AI to do that. They service around the globe, and so that's interesting. A handful of the public platform companies are using Workers AI for video description, transcribing, translation, all those things. A multinational online food ordering company, every once in while a restaurant does submit a picture for one of the dishes.
無人機領域的一家新創公司正在獲取影像並將其轉化為三維模型，並使用人工智慧工人來完成這項工作。他們的服務遍布全球，這很有趣。一些公共平台公司正在使用 Workers AI 進行視訊描述、轉錄、翻譯等工作。一家跨國線上訂餐公司，每隔一段時間就會有一家餐廳提交其中一道菜的​​圖片。

And so they're actually experimenting with Workers AI to generate pictures of the food that you're serving. Hopefully, they disclosed that it's not an actual picture. A handful of photo and video-adding platforms are using Workers AI or evaluating it in order to do image enhancement and make that better. There's a start-up that's generating songs in whatever language you speak and local languages, and they're using Workers AI in order to power their sum generation platform.
因此，他們實際上是在嘗試用人工智慧來產生食物的圖片。但願他們透露的不是真實照片。一些照片和影片添加平台正在使用 Workers AI 或對其進行評估，以便進行影像增強，使其效果更好。有一家新創公司正在用你所說的任何語言和當地語言生成歌曲，他們正在使用 Workers AI 來為他們的和聲生成平台提供動力。

We're thinking about a large consulting companies, public companies, the big gaming company, all of which are actually worried about Shadow AI, and so they're actually using Workers AI gateway in order to understand how their own teams are using Workers. Startup is using a series of enterprise summarization tools where they can look at a bunch of emails and very quickly summarize them into executive reports. There's another start-up that's creating an AI search engine. There's a public company in the financial services space that's doing real-time fraud detection.
我們在考慮大型顧問公司、上市公司、大型遊戲公司，所有這些公司實際上都在擔心影子人工智慧，因此他們實際上都在使用 Workers 人工智慧網關，以便了解自己的團隊是如何使用 Workers 的。新創公司正在使用一系列企業總結工具，他們可以查看大量電子郵件，並快速將其總結為執行報告。還有一家新創公司正在創建一個人工智慧搜尋引擎。有一家金融服務領域的上市公司正在做即時詐欺偵測。

There are people who are finding ways to -- in the renovation space, how can you imagine before you hire a contract what the space is going to look like in another sense. I mean I just go on and on and on with example after example after example. And our team just hands these to us every day, and it's so exciting to see what people are doing in this space and the different ways that they're using it. In terms of why, what is it about Cloudflare that's unique? I think there are sort of three things that stand out to me about it.
有些人正在想辦法--在裝修領域，在簽訂合約之前，你怎麼能想像這個空間從另一個意義上來說會是什麼樣子。我的意思是，我只是不停地舉例說明。我們的團隊每天都會把這些例子交給我們，看到人們在這個空間裡做的事情以及他們使用這個空間的不同方式，真是令人興奮。 Cloudflare 有什麼獨特之處？我認為有三點讓我印象深刻。

The first is just the performance of Cloudflare Workers AI. Because we are distributed around the world and today, over 150 locations globally, as we serve customers that serve a global audience, we can just give them a much better experience in having to ship all of your code back to some central location. The second is that we can actually be significantly more cost effective. If you're using one of the big hyperscale cloud in order to do any sort of AI task, it's up to you to manage efficiency.
首先是 Cloudflare Workers AI 的效能。由於我們分佈在世界各地，目前在全球有 150 多個分支機構，當我們為全球客戶提供服務時，我們可以為他們提供更好的體驗，而無需將所有程式碼運回某個中心位置。其次，我們可以大幅提高成本效益。如果你使用大型超大規模雲端來完成任何一種人工智慧任務，那麼效率管理就取決於你了。

You have to make sure that you're getting the most out of the GPU that you're renting, whereas what we do is much more of a serverless AI model where you only pay for the task that you actually run. So especially in a lot of the start-ups, they're finding that they can just get significant better efficiency, significant better cost if they use our platform in order to deliver that AI experience. And then the third thing is that because we got it distributed globally and because of the fact that we have such a rich ecosystem that we've built, where you can get a soup-to-nuts AI experience, that's allowing people to actually fine-tune their models. And so my silly example of this is that if you have an AI that's responding back to a British user and describing what something looks like versus a U.S.
你必須確保你能從租用的 GPU 中獲得最大收益，而我們所做的更多是一種無伺服器人工智慧模式，你只需為實際運行的任務付費。因此，特別是在許多新創公司中，他們發現如果使用我們的平台來提供人工智慧體驗，他們可以獲得更高的效率和更低的成本。第三點是，由於我們的平台分佈在全球各地，而且我們建立了一個豐富的生態系統，在這個生態系統中，你可以獲得從頭到尾的人工智慧體驗，這使得人們可以對他們的模型進行微調。我舉一個很蠢的例子，如果你有一個人工智慧，它在回覆英國用戶時，描述的是某樣東西的樣子，而在回覆美國用戶時，它描述的是某樣東西的樣子。

user, in the U.K., you want color to be spelled C-O-L-O-U-R. In the U.S., you want it to be spelled C-O-L-O-R. Because we can regionally tune that, we can actually correspond with all of the local and regional differences all around the world. That's something that you don't get anywhere else.
用戶，在英國，你希望 color 拼寫為 C-O-L-O-U-R。而在美國，你希望拼寫為 C-O-L-O-R。因為我們可以按地區進行調整，所以實際上我們可以與世界各地所有的地方和地區差異相對應。這是其他任何地方都無法做到的。

And that, I think, is going to be really important for these inference tasks. They're going to want to be run locally for both the normative and experienced reasons, but also for the regulatory reasons that are out there. So I'm super excited about what we're seeing in the AI space. I'm really proud of our team for being ahead of our rollout.
我認為，這對這些推理任務非常重要。出於規範和經驗方面的原因，以及監管方面的原因，它們都希望在本地運作。因此，我對我們在人工智慧領域看到的一切感到非常興奮。我為我們的團隊領先於我們的推廣工作而感到自豪。

We had to actually physically get geared to over 150 cities worldwide, and we're still on track by the end of this year, we think, be able to do AI inference from nearly every location that makes up Cloudflare network.
我們必須在全球 150 多個城市進行實際部署，而且我們認為到今年年底，我們仍將能夠在 Cloudflare 網路的幾乎所有位置進行人工智慧推理。

Matt Hedberg -- RBC Capital Markets -- Analyst
Matt Hedberg -- 加拿大皇家銀行資本市場 -- 分析師

Well, that was an incredibly comprehensive answer. Thank you so much, Matthew. Maybe just a quick one for Thomas. You guys have made some great new hires beefing up your go-to-market on the channel side with Tom Evans and, of course, Mark Anderson.
嗯，你的回答非常全面。非常感謝你，馬修。我想問一下湯瑪斯。你們招募了一些優秀的新員工，加強了通路的市場推廣能力，其中包括湯姆-埃文斯（Tom Evans），當然還有馬克-安德森（Mark Anderson）。

I know you talked about the uncertain macro in the short term, but I was wondering if you're factoring in any sort of conservatism into your annual outlook for the go-to-market changes that you guys are -- might make as a reason for perhaps not raising your guidance despite the strong Q1. Thank you.
我知道你們談到了短期內不確定的宏觀形勢，但我想知道，儘管第一季業績強勁，但你們沒有提高指導性目標的原因是什麼？謝謝。

Thomas Seifert -- Chief Financial Officer
托馬斯-塞弗特 - 首席財務官

As you know, conservative is not a word that we use when we talk about giving guidance. We tend to be thoughtful and prudent about it. And of course, it's a balance of the tailwinds and we see, but also the uncertainty that is out there. And every major go-to-market, transformation, in our case, it's actually more an evolution, there is risk.
大家都知道，我們在談論提供指導時不會用保守這個詞。我們傾向於深思熟慮，謹慎行事。當然，這既是我們所看到的順風，也是存在的不確定性。每一次重大的市場推廣、轉型，就我們而言，其實更像是進化，都存在著風險。

And it's reflected in our guidance, too.
這也反映在我們的指導下。

Andrew Nowinski -- Wells Fargo Securities -- Analyst
Andrew Nowinski -- 富國證券 -- 分析師

Thank you. 謝謝。

Operator 操作員

Your next question comes from the line of Brent Thill from Jefferies. Your line is open.
下一個問題來自 Jefferies 的 Brent Thill。您的電話已接通

Brent Thill -- Jefferies -- Analyst
Brent Thill - Jefferies - 分析師

Thanks. Matthew, on federal, the last couple of quarters, you had a theme of some pretty big wins. And I'm just curious if you could give us a sense of where you think penetration is. And is it fair to say the flywheel is spinning faster here, at least from what you guys are giving us in terms of the breadcrumbs around the federal business?
謝謝。馬修，關於聯邦，在過去的幾個季度裡，你的主題是一些相當大的勝利。我很好奇，你能否告訴我們你認為的滲透率是多少。至少從你們提供給我們的聯邦業務的麵包屑來看，說飛輪在這裡轉得更快是否公平？

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

Yeah. I think federal is exciting for us. Last year, we achieved FedRAMP certification. That's opened a lot of FedRAMP -- or excuse me, of federal deals to us.
是的，我認為聯邦對我們來說是令人興奮的。去年，我們獲得了 FedRAMP 認證。這為我們打開了大量的 FedRAMP -- 或不好意思，聯邦交易。

I think we've always had a great relationship with a lot of the members of the federal government. I think the thing which is hard to appreciate that as I talked to our federal customers is how much they appreciate that when they ask us to help with something, we step up and help. So this year in the United States, obviously, is an election year. We've been running the Athenian project since 2016, which provides our services at no cost to anyone who is helping administer an election anywhere in the United States.
我認為，我們與聯邦政府的許多成員一直保持著良好的關係。我認為，當我與我們的聯邦客戶交談時，很難體會到的一點是，當他們要求我們提供幫助時，我們會挺身而出，提供幫助。很明顯，今年是美國的大選年。自2016年以來，我們一直在運行 "雅典 "項目，為美國任何地方幫助管理選舉的人免費提供服務。

We've done similar things around the rest of the world. We've worked with the White House on a number of initiatives, including Project safe schools in order to protect the most vulnerable schools and communities across the country. And that is all the foundation, which I think has built an incredible amount of trust and an incredible amount of goodwill in the federal space. And so today, as the world is getting scarier and scarier and we're seeing more and more cyber attacks, the federal -- our federal business, I think, is being driven by the fact that we have great products, the fact that we have the certifications that are required to serve the federal government, and the fact that we've built an incredible relationship as being not just a trusted vendor but a true partner where we have helped make sure that when there's any public institution that is in true need anywhere across the country, we step up and help.
我們在世界其他地方也做過類似的事。我們與白宮合作進行了一系列活動，包括 "安全學校計畫"，以保護全國最脆弱的學校和社區。所有這些都是我們的基礎，我認為這在聯邦範圍內建立了極大的信任和極大的善意。今天，世界變得越來越可怕，我們看到越來越多的網路攻擊，聯邦--我認為我們的聯邦業務是由以下事實推動的：我們擁有優秀的產品，我們擁有服務聯邦政府所需的認證，我們已經建立了令人難以置信的關係，我們不僅是一個值得信賴的供應商，還是一個真正的合作夥伴，我們幫助確保全國任何地方的任何公共機構真正需要幫助時，我們都會挺身而出，提供幫助。

And I think that's now turning into more and more business that is also generating significant revenue for us.
我認為，現在這已經轉化為越來越多的業務，也為我們帶來了可觀的收入。

Brent Thill -- Jefferies -- Analyst
Brent Thill - Jefferies - 分析師

And then just quickly for you and Thomas, this AI capex war debate, you saw all the big hyperscalers take capex way up. How do you do this efficiently? You mentioned bringing gear to 150 cities are ahead in GDP rollout. Explain how you're -- is there only which way -- only one way to do with costs? Or is there a way you can do this in a more efficient way than maybe others?
然後，你和湯瑪斯可以快速討論一下人工智慧資本支出戰的問題，你們看到所有大型超大型企業都在大幅提高資本支出。你們是如何做到這一點的？你們提到將裝備帶到了150個城市，在GDP方面走在了前面。請解釋一下你們是如何 -- 只有哪一種方法 -- 只有一種方法可以降低成本？或者說，你們有沒有比別人更有效的方法？

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

I'll start, and then Thomas may have more to add. I think the thing which is really magical about Cloudflare's business, which is really elegant is that it all fits together so well. So for instance, as we sell more of our Zero Trust and SASE products, those are extremely high-margin products, and they don't require a significant additional amount of capex. That then frees up our ability to invest that capex in other areas, including in the AI space.
我先說，然後托馬斯可能會有更多補充。我認為，Cloudflare 的業務非常神奇，它的優雅之處在於所有業務都能很好地結合在一起。因此，舉例來說，隨著我們銷售更多的零信任和 SASE 產品，這些都是利潤率極高的產品，而且不需要大量的額外資本支出。這樣，我們就有能力將資本支出投資到其他領域，包括人工智慧領域。

I think we made some very smart decisions, specifically reserving space and the equipment that we deployed knowing that AI would be part of our story at some point in the future. And so we really wanted to make sure that's the case. That means that as we deploy capex, it's literally not shipping an entire server to support AI, but shipping just the GPU cards that go into existing servers that are in the field. That reduces the amount of capex that has to be deployed.
我認為我們做出了一些非常明智的決定，特別是預留空間和部署設備，因為我們知道人工智慧將在未來的某個時刻成為我們故事的一部分。因此，我們真的想確保這一點。這就意味著，當我們部署資本支出時，並不是將整台伺服器用於支援人工智慧，而是將 GPU 卡安裝到現有的伺服器中。這就減少了必須部署的資本支出。

And again, it works because it is all running on one unified network. The fact that every server across Cloudflare's entire platform is capable of performing any function that we need, that has allowed us an enormous amount of flexibility in how we can deploy things and has helped us. The other part is that a lot of the hyperscale players, what they're really doing is they're renting out a full GPU or a full machine, whereas our business is a little bit different. We're selling the actual work that those machines do.
同樣，它之所以能夠運行，是因為它全部運行在一個統一的網路上。事實上，Cloudflare 整個平台上的每台伺服器都能執行我們所需的任何功能，這讓我們在如何部署方面擁有了極大的靈活性，對我們大有裨益。另一個原因是，許多超大規模企業的真正業務是出租整塊 GPU 或整台機器，而我們的業務略有不同。我們銷售的是這些機器所做的實際工作。

What that means is that we can then be much more efficient at figuring out how to allow multi-tenant use of the equipment that we have provided, and we can make sure that the utilization is extremely high. So if -- and again, these are -- I don't know the exact numbers for each of the hyperscalers, and they all have different -- slightly different characteristics. But in the average hyperscaler, if they're getting maybe 20% utilization out of a CPU or GPU resources that they've deployed, we can often be many times that in terms of the utilization wherein CPUs we're seeing almost 80% utilization. So that efficiency allows us to get more out of every capex dollar.
這意味著我們可以更有效地找出如何允許多租戶使用我們提供的設備，並確保設備的使用率非常高。因此，如果--再說一遍，這些都是--我不知道每個超級分頻器的確切數字，它們都有不同的--略有不同的特點。但在普通的超級分級器中，如果他們部署的 CPU 或 GPU 資源的利用率只有 20%，那麼在 CPU 的使用率方面，我們通常可以達到 80% 的使用率。因此，這種效率可以讓我們從每一美元的資本支出中獲得更多。

Finally, I would say that inference is different than training, and so you need different resources for that. You don't need necessarily the most cutting-edge GPUs in order to do inference tasks. And so that has meant that we haven't had to chase down what is a -- GPUs that have limited quantity. It's also meant that we can be much smarter about picking and choosing between different GPU vendors and matching workloads to whoever it is that can provide the best service.
最後，我想說的是，推理不同於訓練，因此需要不同的資源。你不一定需要最先進的 GPU 來完成推理任務。因此，這意味著我們不必追逐數量有限的 GPU。這也意味著，我們可以更聰明地在不同的 GPU 供應商之間進行挑選，並將工作負載配對給能夠提供最佳服務的供應商。

And I think over time, that gives us a significant advantage over people who are just trying to rent one particular type of GPU or rent that and let their customers figure out how to be as efficient as possible.
我認為，隨著時間的推移，這將使我們比那些只想租用某一種 GPU 或租用那種 GPU 並讓客戶自行決定如何盡可能提高效率的人更具優勢。

Thomas Seifert -- Chief Financial Officer
托馬斯-塞弗特 - 首席財務官

There's not much to add to this. We were at 8% to 9% of revenue with network capex in the first quarter. We said we -- the year will be close in the range of 10% to 12%, and this includes the rollout of GPU capacity pretty much to every server and every location we have. I think the -- just to underline what Matthew just said, the huge variety of use cases we see and that Matthew talked about when he talked about Workers AI deployment with developers gives us huge insight in how we optimize this capacity, and there's not one card that is good for every inference task.
沒有什麼好補充的。第一季度，我們的網路資本支出佔營收的 8% 至 9%。我們說過，我們今年的資本支出將接近 10% 至 12%，這包括在我們的每台伺服器和每個地點推廣 GPU 容量。我認為--我只是想強調馬修剛才所說的，我們看到的用例種類繁多，馬修在談到與開發人員一起部署人工智能時也談到了這一點，這讓我們對如何優化這種容量有了深刻的認識，並不是一種顯示卡就能勝任所有的推理任務。

And this ability to optimize our investment mix in GPU capacity to that need based on the huge variety of use cases we see is, I think, an additional big factor that allows us to be so efficient with our capex spend.
我認為，這種根據我們所看到的各種使用案例來優化 GPU 容量投資組合的能力，是我們能夠如此有效率地進行資本支出的另一個重要因素。

Brent Thill -- Jefferies -- Analyst
Brent Thill - Jefferies - 分析師

Thanks a lot. 非常感謝。

Operator 操作員

Your next question comes from the line of Joel Fishbein from Truist Securities. Your line is open.
下一個問題由來自 Truist Securities 的 Joel Fishbein 提出。您的電話已接通

Joel Fishbein -- Truist Securities -- Analyst
Joel Fishbein -- Truist Securities -- 分析師

Thank you. Thanks for taking the questions. And great execution in the quarter, 30% top line growth. Matthew, one for you and a follow-up for Thomas.
謝謝。感謝您接受提問。本季的執行力很強，銷售額成長了 30%。馬修（Matthew），你的問題和湯瑪斯（Thomas）的後續問題。

Matthew, you talked a lot about hiring of go-to-market talent and just inflecting on that. How is -- there seems to be a war on talent for AI engineers. You've seen a few companies do accu hires where they're just draining talent. Curious where Cloudflare is with hiring and retaining talent and if it's fitting into your normal compensation, things, capacity.
馬修，你談到了很多關於招募市場人才的問題，並對此進行了深入探討。人工智慧工程師的人才爭奪戰似乎很激烈。你已經看到一些公司在招募人才，他們只是在消耗人才。我很好奇Cloudflare在招募和留住人才方面的情況，以及這是否符合你們的正常薪資和能力。

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

Yeah. I mean I think we are very fortunate that across the board, we are seen as a place where if you want to be innovative, if you want to invent the future or if you want to sell really incredible products or help market them or frankly work on some of the hardest public policy issues or get to work with Thomas on the world's coolest finance team, that you -- that Cloudflare is a place where you can go. And so when you see someone like Mark Anderson, when you see someone like Stephanie Cohen, you see the engineers who are coming to Cloudflare every day. We had 350,000 people applied to work at Cloudflare in Q1 for, I don't know, 250 jobs roughly.
是的，我是說，我認為我們非常幸運，因為我們被視為一個地方，如果你想創新，如果你想發明未來，或者如果你想銷售真正令人難以置信的產品或幫助行銷它們，或者坦白說，在一些最困難的公共政策問題上工作，或者與托馬斯一起在世界上最酷的財務團隊工作，你- Cloudflare是一個你可以去的地方。因此，當你看到像馬克安德森（Mark Anderson）這樣的人，當你看到像斯蒂芬妮-科恩（Stephanie Cohen）這樣的人，你會看到每天都有工程師來到 Cloudflare。第一季有 35 萬人申請 Cloudflare 的工作，大概有 250 個職位。

That's extraordinary. And that is -- and that's up over what was an extraordinary Q1 of last year, up almost 50% year over year. So I'm -- I think that the talent war is real, but we are in a fortunate position where we are winning that war. We have not seen an uptick in any regrettable attrition.
這是非同尋常的。與去年第一季的非凡表現相比，這一數字年增了近50%。因此，我認為人才爭奪戰是真實存在的，但我們很幸運地贏得了這場戰爭。我們沒有看到任何令人遺憾的減員現象。

It's been -- it's -- I think we're very fortunate to be working on some of the world's hardest problems, and some of the smartest people in the world want to come and help us on this.
我認為我們非常幸運，能夠研究世界上一些最棘手的問題，而且世界上一些最聰明的人也願意來幫助我們。

Joel Fishbein -- Truist Securities -- Analyst
Joel Fishbein -- Truist Securities -- 分析師

That's great. And Thomas, for you, just in terms of sales productivity, really strong improvement again. Do you expect that to change with the acceleration of new hires, sales hires? Or are you hiring more experienced people so their time to productivity is shorter?
很好。湯瑪斯，就你而言，在銷售生產力方面，又有了很大的提升。隨著新進員工（銷售人員）招募速度的加快，你預期這種情況會改變嗎？或者說，你是在招募更有經驗的員工，從而縮短他們提高生產力的時間？

Thomas Seifert -- Chief Financial Officer
托馬斯-塞弗特 - 首席財務官

This is, of course, what the goal is. But even if you hire experienced people, there's a ramp-up curve that comes along with it. We are moving up market. We are getting to larger and larger customers, more strategic accounts.
這當然是我們的目標。但是，即使你僱用了經驗豐富的員工，也會有一個提升的過程。我們正在向市場上游移動。我們正在接觸越來越多的大客戶，越來越多的策略客戶。

They're more complex. There's more overlay. So this balances itself out. We hire trade talent.
它們更加複雜。有更多的疊加。所以這就平衡了。我們僱用貿易人才。

We see great productivity improvement. But as I said earlier, every transformation or evolution in the go-to-market side comes with potential risk, and we try to be thoughtful when we give guidance that there might be downside implied.
我們看到生產力有了很大提高。但正如我之前所說，市場推廣的每一次轉型或發展都伴隨著潛在的風險，我們在提供指導意見時會盡量考慮周全，因為這可能會帶來負面影響。

Joel Fishbein -- Truist Securities -- Analyst
Joel Fishbein -- Truist Securities -- 分析師

That's great. Thank you so much.
好極了非常感謝

Operator 操作員

Your next question comes from the line of Jonathan Ho from William Blair. Your line is open.
下一個問題來自 William Blair 公司的 Jonathan Ho。您的電話已接通

Jonathan Ho -- William Blair and Company -- Analyst
Jonathan Ho - William Blair and Company - 分析師

Hi. I just wanted to follow up on that last question and just try to better understand from a sales productivity standpoint, what inning are we in? And where do you think Mark can add the most value?
我想跟進最後一個問題，從銷售效率的角度更了解我們現在處於哪一局？你認為馬克能在哪些方面帶來最大價值？

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

I'll start and then Thomas can maybe add some more if he has it. I think that -- I think we are still early in the journey of being really great at enterprise. I think in Mark's comments, he said that our product is great, but our ability to really sell to large enterprises, to understand their needs and drive more of a strategic relationship is something that we are continuing to work on. That is -- I think the last 18 months were all about us sort of cleaning up the sales organization.
我先說，然後托馬斯可以再補充一些。我認為--我認為我們在成為真正的企業巨頭的道路上仍處於早期階段。我認為在馬克的評論中，他說我們的產品很棒，但我們真正向大型企業銷售的能力，了解他們的需求和推動更多策略關係的能力，是我們繼續努力的方向。我認為，在過去的 18 個月裡，我們一直在清理銷售組織。

And now with Mark on board, it's all about now how do we get the real professionals on board, where we can become that strategic vendor for literally every large company in the world. There is no large company that doesn't have a need for what it is that we sell. What I think is really encouraging is where we have done that, where we have really nailed that. We are becoming one of the largest IT vendors for those companies, and some of those are very large companies.
現在有了馬克的加入，我們要做的就是如何讓真正的專業人士加入進來，讓我們成為世界上所有大公司的策略供應商。沒有一家大公司不需要我們銷售的產品。我認為真正令人鼓舞的是，我們已經做到了這一點，我們已經真正做到了這一點。我們正在成為這些公司最大的 IT 供應商之一，其中一些公司規模非常大。

I think the fact that we won a very large financial services organization and became a strategic vendor for them. That -- and that, as I said, is a beachhead for us to go in and take much more share. Almost all the financial -- major financial services institutions in the United States use us for something. But I want to say that we're aren't a strategic vendor for many of them yet.
我認為，我們贏得了一家大型金融服務機構，並成為其策略供應商。正如我所說的那樣，這是我們進入市場並佔據更多份額的灘頭陣地。美國幾乎所有的金融服務機構都在使用我們的產品。但我想說的是，我們還不是其中許多機構的策略供應商。

We're going to be, and we can do so many things in the networking and security space that they absolutely need. And as we, I think, mature that process, it's great. I can't imagine someone who is better for this role than Mark Anderson. And again, it was not the plan when we added him to our Board 4 years ago, but he's gotten to know us over that period of time.
在網路和安全領域，我們可以做很多他們絕對需要的事情。我認為，隨著我們的發展，這個過程會越來越成熟，這很棒。我無法想像還有誰比馬克安德森（Mark Anderson）更適合這個角色。再說一次，4 年前我們讓他加入董事會時並沒有這個計劃，但他在這段時間裡已經了解了我們。

And it's just incredible to see the high caliber of talent who is excited to lean forward and work with him going forward.
看到有這麼多優秀的人才願意與他並肩作戰，真是令人難以置信。

Jonathan Ho -- William Blair and Company -- Analyst
Jonathan Ho - William Blair and Company - 分析師

Excellent. And just a quick follow-up. Is there something specific in the macro that's maybe causing you a little bit of pause? Anything that you can sort of point to in terms of that additional concern on the outlook? Thank you.
好極了再跟進一下。宏觀方面是否有什麼具體的因素讓你有點猶豫？你是否能指出對前景的額外擔憂？謝謝。

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

I think that we get a lot of signal based on where we sit on the Internet, and what I would say right now is that it's not any one thing pointing in any one clear direction. But there's a lot of noise pointing in a number of different directions that give us, I think, reason to be cautious. And I think that that is in our very nature, is always taking as much signal being data-driven and making sure that we're making investments in a responsible way. And so I think the obvious thing is the geopolitical uncertainty around the world.
我認為，根據我們在網路上所處的位置，我們可以得到很多訊號，而我現在要說的是，這並不是任何一件事都指向一個明確的方向。但有許多噪音指向不同的方向，這讓我們有理由保持謹慎。我認為這是我們的天性，我們總是以數據為導向，盡可能捕捉訊號，確保我們以負責任的方式進行投資。因此，我認為最明顯的是全球地緣政治的不確定性。

That absolutely causes changes in buying behavior. On the other hand, some of that -- those changes in buying behavior have been positive for us as we're seeing, especially in our government business, pick up because of that uncertainty. So there are puts and takes that are out there. What we want to do is just make sure that we are being prudent and responsible and thoughtful as we make investments and as we think through how to handle the responsibility that we have with investors' capital and that they've trusted us with.
這絕對會導致購買行為的改變。另一方面，一些購買行為的變化對我們來說也是積極的，因為我們看到，尤其是我們的政府業務，因為這種不確定性而有所回升。因此，市場上有看跌和看漲兩種情況。我們要做的就是確保我們在進行投資時謹慎、負責、深思熟慮，並考慮如何處理投資者的資金和他們對我們的信任所賦予我們的責任。

Jonathan Ho -- William Blair and Company -- Analyst
Jonathan Ho - William Blair and Company - 分析師

Thank you. 謝謝。

Operator 操作員

Your next question comes from the line of Tom Blakey from KeyBanc Capital Markets. Your line is open.
下一個問題來自 KeyBanc Capital Markets 的 Tom Blakey。您的電話已接通。

Tom Blakey -- KeyBanc Capital Markets -- Analyst
Tom Blakey -- KeyBanc Capital Markets -- 分析師

Hey, guys. Great Thanks for taking my questions. Matt, I was wondering about the recent Nefeli acquisition around multi-cloud networking and a possible acceleration to act this prior question on Zero Trust SASE services. I guess specifically, maybe the interest of the deal, maybe there was some pent-up demand that maybe this addition of multi-cloud networking technology could maybe expand Cloudflare's reach from a Zero Trust perspective, I'd love to hear your comments there.
大家好非常感謝你們接受我的提問。馬特，我想了解一下最近奈飛圍繞多雲網路的收購，以及可能加速執行先前關於零信任 SASE 服務的這個問題。我想，具體來說，也許這筆交易的利益，也許有一些被壓抑的需求，也許多雲端網路技術的增加可以從零信任的角度擴大 Cloudflare 的覆蓋範圍，我想聽聽你的意見。

And I have a follow-up.
我有一個後續問題。

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

Yes. We're incredibly excited to have the Nefeli team on board. We want to make it -- we think the space that Cloudflare competes in is in the networking and in the security space. And so making it very easy to get traffic on to our network to connect to any other cloud is just a critical aspect, and it seemed like something that we were either going to have to build or buy.
是的。我們對奈飛團隊的加入感到無比興奮。我們認為，Cloudflare 的競爭領域是網路和安全領域。因此，讓流量輕鬆進入我們的網絡，連接到任何其他雲，是至關重要的方面。

And we came across the Nefeli team in part because they came in through our own launchpad program, which is a program having customers that -- and start-ups that use Cloudflare's resources and especially our workers' platform in order to build. What is powerful about that is we use that same platform to build ourselves. And so when we find great teams working in a space that we think is exciting building on the same platform, the same platform that our own team uses, that just decreases the risk of any kind of technical integration, any kind of sort of frankensteining of your platform that's out there. And so the Nefeli team was really great, and we were excited to announce it.
我們接觸到奈飛團隊的部分原因是，他們是透過我們自己的launchpad計劃進來的，這是一個擁有客戶的計劃，新創公司使用Cloudflare的資源，尤其是我們的員工平台來進行建設。它的強大之處在於，我們使用同樣的平台來建立自己。因此，當我們發現有優秀的團隊在我們認為令人興奮的領域中工作，並在我們自己的團隊所使用的同一平台上進行建設時，這就降低了任何技術整合的風險，也降低了任何對你的平台進行"偽造"的風險。因此，奈飛團隊真的很棒，我們很高興能宣布這項消息。

We think that, again, our hurdle rate for acquisitions and M&A remains very, very high. But these -- some of these small acquisitions where we found great teams working in interesting spaces has worked incredibly well for us. A couple of other examples that are very similar. Baseline that we acquired is, again, giving observability to our platform, and it's one of the No.1 things that developers on our platform were looking for.
我們認為，我們的收購和併購門檻仍然非常非常高。但是，我們發現一些在有趣領域工作的優秀團隊，這些小規模併購對我們來說效果非常好。還有幾個非常類似的例子。我們收購的 Baseline 再次為我們的平台提供了可觀察性，這也是我們平台上的開發者所追求的首要目標之一。

And again, another time where we found some is using our own platform in order to build out a great observability platform there. Party kit, which is a real-time integration service again, it's just a natural extension of what it is that we're doing. So again, none of these are very large acquisitions, but I think they're extremely strategic. I think they accelerate our ability to get into more markets.
同樣，我們也發現，使用我們自己的平台，可以建立一個很好的可觀察性平台。 Party kit 是一種即時整合服務，也是我們正在做的事情的自然延伸。再說一遍，這些都不是非常大的收購，但我認為它們都極具戰略意義。我認為它們加快了我們進入更多市場的能力。

And what I love is that they oftentimes are using our own existing developer platform, which means that they are just incredibly easy for us to integrate with the rest of Cloudflare and decrease the technical risk as we go with M&A. In all three of those cases, also, the founders and the team, they're just sort of Cloudflare-like people and there are people that were so excited and proud to have on the team, and I think you'll hear more about the wins that we have from all those areas over the quarters to come.
我最喜歡的是，他們經常使用我們現有的開發人員平台，這意味著我們可以非常輕鬆地將他們與 Cloudflare 的其他部分整合起來，降低併購過程中的技術風險。在所有這三個案例中，創辦人和團隊都是Cloudflare式的人物，他們的加入讓我們感到非常興奮和自豪，我想在接下來的幾個季度裡，你們會聽到更多關於我們在所有這些領域所取得的勝利的消息。

Tom Blakey -- KeyBanc Capital Markets -- Analyst
Tom Blakey -- KeyBanc Capital Markets -- 分析師

Well, that would be great to get more high-margin SASE revenue here. And I'd like to go as a segue there, back to Brent's question on GPU and I think you gave a great question about the unique architecture of the platform and this kind of multi-tenancy. But is it -- just seeing the explosive growth with other DSPs and the approach that folks are taking there, is it fair to characterize this way that capex would have to go up relatively significantly if, say, a handful of these applications being built on your platform explode to the like of something like a CoPilot?
如果能獲得更多高利潤的 SASE 收入，那就太好了。我想順便回到布倫特（Brent）關於 GPU 的問題，我認為你就平台的獨特架構和這種多租戶模式提出了一個很好的問題。但是，看到其他DSP 的爆炸式增長和人們在那裡採取的方法，我們是否可以這樣說，如果在你們的平台上構建的這些應用中，有一小部分爆炸式增長到像CoPilot 這樣，資本支出就必須相對大幅增加？

Matthew Prince -- Co-Founder and Chief Executive Officer
Matthew Prince - 聯合創始人兼首席執行官

Well, I think that what I would look at is capex as a percentage of revenue, and I think one of the things that's always been magical about Cloudflare has been that we've been able to invest behind the demand, not ahead of the demand. And so we're really good at rolling out more capacity wherever we need it. And so that would be an amazing problem to have. If we have to -- we -- so it may be that we -- on a just pure dollars basis, end up spending more on GPUs.
我認為，我所關注的是資本支出佔收入的百分比，我認為 Cloudflare 一直以來的神奇之處在於，我們能夠根據需求進行投資，而不是超前於需求。因此，我們非常擅長在需要的地方推出更多的容量。因此，這將是一個非常棘手的問題。如果我們不得不--我們--那麼可能我們--就純粹的美元而言，最終會在 GPU 上花費更多。

But as a percentage of revenue, we feel very comfortable that we can service these applications very well at the percentage of revenues that it is in our forecast going forward.
但從佔收入的比例來看，我們感到非常放心，因為按照我們預測的未來收入比例，我們可以很好地為這些應用提供服務。

Thomas Seifert -- Chief Financial Officer
托馬斯-塞弗特 - 首席財務官

What I would want to add here is we -- the efficiency of the architecture is really driving this. We talked about the revenue mix that allows us to invest into GPUs by more and more revenue driven by Zero Trust products. The efficiency that is driven in the hardware architecture is an additional factor that goes into this. We are in the rollout of what we call Generation 12 now of our service of that architecture.
我想在這裡補充的是，我們--架構的效率才是真正的驅動力。我們談到了收入組合，零信任產品帶來的收入越來越多，使我們能夠投資 GPU。硬體架構的效率也是其中的一個因素。我們正在推出我們稱之為第 12 代的架構服務。

It's a little bit more than 25% total cost of ownership reduction in this new generation. So that is 25% more of capex we can deploy toward GPUs. So the levers are just not in one place. They are in many places, and the combination of this is really driving this incredible efficiency.

Tom Blakey -- KeyBanc Capital Markets -- Analyst

That's great. Well, maybe we'll look for you breaking out AI or gen AI revenue one of these days.

Thomas Seifert -- Chief Financial Officer

As soon as it is the right thing to do. At the moment, I think we shouldn't get tired, but the benefit in driving adoption is significantly more important than driving more revenue in the short term. This is why the efficiency is high is we see so many use cases from 2 million developers being on the platform. This far-sided approach has served us well, and we'll continue with it.

Tom Blakey -- KeyBanc Capital Markets -- Analyst

OK Thank you.

Operator

Our next question comes from the line of Alexander Henderson from Needham. Your line is open.

Alexander Henderson -- Needham and Company -- Analyst

Great. Thank you so much. I wanted to ask a question about your comments about the macro conditions. About 2 years ago, I think, it was you guys gave an early warning that the economy had some risks to it and that you were seeing signs of slowdown.

And that actually occurred 6, 9, 12 months later. And so with this commentary on this call, are you suggesting that you're seeing similar kind of characteristics to the conditions? Or is this just a little bit more noise to it, and therefore, you're being prudent, but you just don't have any visibility to whether that's going to happen yet? Can you contrast this event to several years ago when you gave that caution?

Matthew Prince -- Co-Founder and Chief Executive Officer

Yeah, Alex. So I -- 2 years ago, I felt like we had a pretty clear signal that the economy was slowing down. I would say that we don't have as clear of signal today that that's the case. We -- it's -- we see things that worry us, but we also see things that give us some level of optimism.

And so I think describing the crystal ball as cloudy is the right thing. What I like though is that we have a crystal ball. We can make investments and we can think through what that future looks like in part because we just get much more signal than I think the average enterprise SaaS company gets. And I think that that has served us well, and I think we try not to be surprising in any way.

And so as we see -- I would say that there is certainly an uptick in uncertainty and sort of potential downside this quarter over last quarter. But I would not characterize it as the same concerns that I had in Q1 of '20 -- what was that, '22 where we saw what we thought was much, much clearer. So we continue to watch this. Again, I feel like I am proud of how well Thomas and the rest of the team have the ability to take that and keep their hands on the levers of our business and continue to execute.

But I'm not -- I think my level of concern is not at the same level that it was in Q1 of 2022, but it is definitely heightened over a lot of what we've seen in more recent quarters.

Alexander Henderson -- Needham and Company -- Analyst

So if nothing is really spooking you here, I'm still struggling with the guidance and the outlook for the back half of the year. You've given guidance that -- or commentary that you're seeing significant strengthening of your pipeline. You're saying your duration stable. You're seeing solid closure rates.

You're adding more sales capacity. You're winning large customer deals at an accelerating rate. You're spending more on hiring people, and productivity in your sales force is significantly improving. Yet your guidance implies with the first quarter beat and the second quarter are above the Street.

The back half is much more conservative. So I guess the question is, is that a function of a specific weakness in a particular geography or due to political issues? Or is it just trying to feather in more opportunity for the sales organization to be realigned as Mark comes on and drives things? Because ultimately, it sounds like the mechanics imply an acceleration, not a deceleration.

Matthew Prince -- Co-Founder and Chief Executive Officer

Yeah. Alex, I'll start and then Thomas can give a little bit more color. I would push back on your initial statement, which was that nothing spooks me. A lot spooks me right now.

So just because just -- and I want to make it clear. We are in a much more uncertain environment, and the signal that we're seeing is that uncertainty is up. In addition to that, I think you're correct that whenever you have a sales leadership change, there is risk that comes with it. And so there's a bit of that.

But the primary factor here is that as we look at the signals in the overall macro economy, it is -- it feels like a much more -- it feels like there's much more reason to worry in Q1 than there was in Q4. But that doesn't mean that it was the same, just sound the alarm bells that we were seeing back in Q1 of 2022.

Alexander Henderson -- Needham and Company -- Analyst

Great. So just essentially derisked it. I appreciate it. Thanks.

Operator

Your last question comes from the line of Tim Horan from Oppenheimer. Your line is open.

Tim Horan -- Oppenheimer and Company -- Analyst

Thanks, guys. We saw the hyperscale cloud revenues really accelerate this quarter, the accelerated guidance. And they're actually talking about being kind of capacity-constrained. And you're kind of the on-ramp on to those cloud guys.

I guess why the disconnect between what they're seeing in guidance versus what you're seeing out there right now? Particularly, you're also in like the fastest-growing segments of serverless and low latency. But I guess what's changed other than concerns on the macro? Or is there anything on the onramp thesis?

Matthew Prince -- Co-Founder and Chief Executive Officer

Yeah. I think that the big thing, Tim, I'd point to is that they tend to be purely usage-based models. And the good of usage-based models is that they react very quickly, both up and down. And so I think whereas we tend to be much more of a subscription-based model, and the good of that is that it has a lot more stability.

But -- and that stability helps you when things are slowing down. So we had significantly faster growth than the hyperscalers in the last few quarters, and we're now around where they are this quarter. And so I think we are a little bit more moderated than some of the more usage-based models, and I think that explains some of it. I think the second thing that I'd add is that for some of the products, especially around the AI products, as Thomas said, we're really optimizing around adoption.

And while we published pricing and that pricing was extremely well received, in addition to being very, very attractive for us from a margin perspective in the last months, that's something that is still not a place where we are heavily monetizing yet. But again, I think as I listed some of the examples, we see plenty of opportunity there. And we think that when we decide the time is right to turn on some of those monetization, it will help contribute to our top line growth.

Tim Horan -- Oppenheimer and Company -- Analyst

And just two quick follow-ups. Are you seeing any real other competitors coming into what you offer on a global serverless, low-latency basis? And I guess you're implying at some point, revenue growth should really accelerate here. I mean in a more stable macro environment or more visibility, I mean, everything we've been talking about on this call seems, like my predecessor said, incredibly positive. Do you -- and your guide for the second half down to 26%, just seems like very, very low versus what it potentially could be.

I guess, do you think these steps will enable you to accelerate in the next couple of years?

Matthew Prince -- Co-Founder and Chief Executive Officer

So on the competition front, we really don't. We think we are in a very unique position. We don't see anybody else that is yet rolling out the type of connectivity cloud with true serverless architecture. There are people who are buying some legacy businesses.

There are people who sort of talk a good game, but it turns out when you pull the covers back don't have very much business in this space at all. And so we are, I think, unique in the position that we're offering. I don't think that will stay true forever. Other people will provide services here, but we have a clear lead.

We have the richest ecosystem. And I think that what's great about Cloudflare's business is that we have existing, very stable businesses that continue to perform. We have newer businesses for us like our Zero Trust and SASE businesses, which are just accelerating up the S-curve. And then we have a lot of bleeding edge opportunity with things like our Workers' platform.

And so Cloudflare is all about stacking S-curves, one behind another behind another. And so where I think a lot of companies run out of TAM, run out of market, we are able to continue to add and innovate into new areas in a way that I think we'll achieve what we want, which is we think we're going to be one of the truly iconic technology companies. And we're investing for that long term, including at times making the choice of optimizing for adoption rather than trying to figure out how we make money from every single customer with every single transaction. And we think that that's the right formula for building what is an iconic technology company over the long term.

Tim Horan -- Oppenheimer and Company -- Analyst

Very helpful. Thank you.

Operator

That concludes our question-and-answer session. I will now turn the call back over to Matthew Prince for some closing remarks.

Matthew Prince -- Co-Founder and Chief Executive Officer

Just want to thank our entire team for executing. I know that in the world right now, there's a lot of scary things going on, there's a lot of tension. And what we do every day of making sure that the Internet continues to function, that it continues to be a force that drives the economy around the world going forward. I can't imagine anything more important to be working on.

So thank you for the entire team for delivering yet another terrific quarter. We're getting back to work now, and we'll see you all again next quarter. Thank you.

Operator

[Operator signoff]

Duration: 0 minutes

Call participants:

Phil Winslow -- Vice President, Strategic Finance, Treasury, and Investor Relations

Matthew Prince -- Co-Founder and Chief Executive Officer

Mark Anderson -- President, Revenue

Thomas Seifert -- Chief Financial Officer

Matt Hedberg -- RBC Capital Markets -- Analyst

Andrew Nowinski -- Wells Fargo Securities -- Analyst

Brent Thill -- Jefferies -- Analyst

Joel Fishbein -- Truist Securities -- Analyst

Jonathan Ho -- William Blair and Company -- Analyst

Tom Blakey -- KeyBanc Capital Markets -- Analyst

Alexander Henderson -- Needham and Company -- Analyst

Tim Horan -- Oppenheimer and Company -- Analyst

More NET analysis

All earnings call transcripts