Fortinet Inc (FTNT) 2022 Q4 法說會逐字稿

Thank you for standing by, and welcome to the Fortinet Fourth Quarter Earnings Conference Call. (Operator Instructions) As a reminder, today's call is being recorded.

感謝您的支持，歡迎來到 Fortinet 第四季度收益電話會議。 （操作員說明）提醒一下，今天的通話正在錄音中。

I will now turn the conference to your host, Mr. Peter Salkowski, Senior Vice President of Finance and Investor Relations. Please go ahead.

我現在將會議轉交給您的主持人，財務和投資者關係高級副總裁 Peter Salkowski 先生。請繼續。

Thank you, Valerie. Good afternoon, everyone. This is Peter Salkowski, Senior Vice President of Finance and Investor Relations at Fortinet. I'm pleased to welcome everyone to our call to discuss Fortinet's financial results for the full year and fourth quarter of 2022.

謝謝你，瓦萊麗。大家下午好。我是 Fortinet 財務和投資者關係高級副總裁 Peter Salkowski。我很高興歡迎大家參加我們的電話會議，討論 Fortinet 2022 年全年和第四季度的財務業績。

Speakers on today's call are Ken Xie, Fortinet's Founder, Chairman and CEO; and Keith Jensen, our Chief Financial Officer. This is a live call that will be available for replay via webcast on our Investor Relations website. Ken will begin our call today by providing a high-level perspective on our business. Keith will then review our financial and operating results for the full year and fourth quarter of 2022 before providing guidance for the first quarter of 2023 and the full year. We'll then open the call for questions.

今天電話會議的發言人是 Fortinet 的創始人、董事長兼首席執行官 Ken Xie；以及我們的首席財務官 Keith Jensen。這是一個現場通話，可以通過我們的投資者關係網站上的網絡直播進行重播。 Ken 將在今天開始我們的電話會議，提供對我們業務的高層次視角。然後，基思將審查我們 2022 年全年和第四季度的財務和運營業績，然後再提供 2023 年第一季度和全年的指導。然後我們將打開問題電話。

Before we begin, I'd like to remind everyone that on today's call, we will be making forward-looking statements, and these forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. Please refer to our SEC filings, in particular, the risk factors in our most recent Form 10-K and Form 10-Q for more information. All forward-looking statements reflect our opinions only as of the date of this presentation, and we undertake no obligation and specifically disclaim any obligation to update forward-looking statements.

在我們開始之前，我想提醒大家，在今天的電話會議上，我們將做出前瞻性陳述，而這些前瞻性陳述受風險和不確定性的影響，可能導致實際結果與預期結果存在重大差異。請參閱我們向 SEC 提交的文件，尤其是我們最新的 10-K 表格和 10-Q 表格中的風險因素，以了解更多信息。所有前瞻性陳述僅反映我們截至本演示文稿之日的意見，我們不承擔任何義務，特別是不承擔任何更新前瞻性陳述的義務。

Also, all references to financial metrics that we make on today's call are non-GAAP unless stated otherwise. Our GAAP results and GAAP to non-GAAP reconciliations are located in the earnings press release and in the presentation that accompany today's remarks, both of which are posted on the Investor Relations website. Ken and Keith's prepared remarks for today's earnings call will be posted on the quarterly earnings section of our Investor Relations website immediately following the call.

此外，除非另有說明，否則我們在今天的電話會議上提及的所有財務指標都是非公認會計原則。我們的 GAAP 結果和 GAAP 與非 GAAP 調節表位於收益新聞稿和今天的評論隨附的演示文稿中，兩者均發佈在投資者關係網站上。 Ken 和 Keith 為今天的收益電話會議準備的評論將在電話會議後立即發佈在我們投資者關係網站的季度收益部分。

Lastly, all references to growth are on a year-over-year basis unless noted otherwise.

最後，除非另有說明，否則所有提及的增長都是按年計算的。

I will now turn the call over to Ken.

我現在將電話轉給肯。

Thanks, Peter, and thank you to everyone for joining today's call to review our outstanding full year and fourth quarter 2022 results. For the full year, revenue growth accelerated to 32%. We continue to gain market share in the service security industry with customers increasingly recognizing how Fortinet integrate and a single platform approach to security delivers a low total cost of ownership and a greater return on investment than competing solutions.

謝謝彼得，也感謝大家參加今天的電話會議，回顧我們出色的全年和 2022 年第四季度業績。全年，收入增長加速至 32%。我們繼續在服務安全行業獲得市場份額，客戶越來越認識到 Fortinet 如何集成和單一平台安全方法提供較低的總擁有成本和比競爭解決方案更高的投資回報。

Product revenue growth of 42% was very strong, making Fortinet a leading product revenue company in the cybersecurity industry with total product revenue of $1.8 billion. SD-WAN and OT bookings together accounted for over 25% of total bookings. And our goal is to keep growing and achieve #1 market share in network firewall secure SD-WAN and OT security market over the next couple of years. For 20 years, Fortinet has made long-term strategies and investments around the convergence of networking and security.

42% 的產品收入增長非常強勁，使 Fortinet 成為網絡安全行業領先的產品收入公司，產品總收入達到 18 億美元。 SD-WAN 和 OT 預訂合計佔總預訂量的 25% 以上。我們的目標是在未來幾年內保持增長並在網絡防火牆安全 SD-WAN 和 OT 安全市場中取得第一的市場份額。 20 年來，Fortinet 圍繞網絡和安全的融合製定了長期戰略和投資。

Yesterday, we announced our fifth-generation Forti Security processor, the FortiSP5. This new SOC base for the ASIC has secure computing power ratings for major network security functions like firewall and VPN throughputs that are 17 to 32x greater than the average of our competitive similar price model using general purpose CPUs. And doubles the ASIC chip acceleration of applications to fortune such as zero-trust, SASE, 5G and SD-Branch with much better performance and efficiency.

昨天，我們發布了第五代 Forti 安全處理器 FortiSP5。這種用於 ASIC 的新 SOC 基礎具有針對主要網絡安全功能（例如防火牆和 VPN 吞吐量）的安全計算能力額定值，比我們使用通用 CPU 的競爭性類似價格模型的平均值高 17 到 32 倍。並使零信任、SASE、5G、SD-Branch等應用的ASIC芯片加速倍增，性能和效率大幅提升。

According to the most recent IDC data on unit shipment of firewall plants, Fortinet hold the #1 unit shipped market share position and 48%, providing Fortinet with an attractive economy of scale position as well as making it difficult for competitors to develop their own ASIC technology due to high entry barrier and significant investment that is required.

根據最新的 IDC 防火牆工廠單位出貨量數據，Fortinet 佔據了 48% 的單位出貨市場份額第一，為 Fortinet 提供了具有吸引力的規模經濟地位，同時也讓競爭對手難以開發自己的 ASIC由於高進入壁壘和需要大量投資而導致的技術。

Fortinet is a huge security computing power advanced -- advantages are able for the OS to integrate more security functions and applications than our competitors with much better performance and much lower energy consumption, resulting in a much lower total cost of ownership while offering easier operations for our customers. For example, a recent Forrester report highlighted that customers deploying Fortinet Secure SD-WAN solutions achieved a 300% return on investment over 3 years with a payback period of only 8 months. Fortinet's substantial installed base of product with reach functions enable us to offer additional secure services. An upsell, integrated and automated FortiFabric product and solutions.

Fortinet 是一個巨大的先進安全計算能力——優勢在於操作系統能夠集成比我們的競爭對手更多的安全功能和應用程序，具有更好的性能和更低的能耗，從而大大降低總擁有成本，同時為我們的顧客。例如，Forrester 最近的一份報告強調，部署 Fortinet Secure SD-WAN 解決方案的客戶在 3 年內實現了 300% 的投資回報，投資回收期僅為 8 個月。 Fortinet 大量的具有覆蓋功能的產品安裝基礎使我們能夠提供額外的安全服務。追加銷售、集成和自動化的 FortiFabric 產品和解決方案。

We recently announced several new and advanced services that help SOC team reduce their operations cyber risk while being more efficient and handling cybersecurity issues. As networking and security continue to converge and consolidate, we believe we are well positioned to achieve our 2025 billing target of $10 billion.

我們最近宣布了幾項新的和先進的服務，幫助 SOC 團隊降低運營網絡風險，同時提高效率和處理網絡安全問題。隨著網絡和安全不斷融合和整合，我們相信我們已做好充分準備，可以實現 2025 年 100 億美元的賬單目標。

Before turning the call over to Keith, I would like to thank our employees, customers, partners and suppliers worldwide for their continued support and hard work.

在將電話轉給 Keith 之前，我要感謝我們全球的員工、客戶、合作夥伴和供應商一直以來的支持和辛勤工作。

Thank you, Ken, and good afternoon, everyone. As we look back at 2022, we see the success of our strategy to lead in convergence and consolidation as well as the combined power of our ASIC technology with our integrated operating system. Combined, these efforts are driving our strong financial results.

謝謝你，肯，大家下午好。回顧 2022 年，我們看到了引領融合和整合戰略的成功，以及我們的 ASIC 技術與集成操作系統的綜合力量。這些努力共同推動了我們強勁的財務業績。

There's been an explosion of devices that must be connected to the cloud, data center and edge compute. As a result, the infrastructure has expanded to support secure connectivity via distributed firewalls. It is no longer feasible to overlay security on top of networking in the data center. They must be deployed as a converged solution. Firewalls need to work seamlessly with networking and security applications across the company's entire infrastructure. Fortinet is leading the convergence trend with a wide range of technologies, including network firewalls, secure SD-WAN, 5G and OT security, all embedded in our single operating system delivered as hardware, software, cloud and as a service.

必須連接到雲、數據中心和邊緣計算的設備呈爆炸式增長。因此，基礎設施已經擴展到支持通過分佈式防火牆的安全連接。在數據中心的網絡之上覆蓋安全性不再可行。它們必須作為融合解決方案進行部署。防火牆需要與公司整個基礎架構中的網絡和安全應用程序無縫協作。 Fortinet 通過廣泛的技術引領融合趨勢，包括網絡防火牆、安全的 SD-WAN、5G 和 OT 安全，所有這些都嵌入在我們的單一操作系統中，以硬件、軟件、雲和服務的形式提供。

Traditional CPU-based solutions are very inefficient as supporting both networking and security. That's why Fortinet developed proprietary ASIC technology to build an application-specific solution. Yesterday, as Ken mentioned, we announced our next-generation ASIC, the 40 security processor or FortiSP5, which allows line speed convergence of networking and security at every network edge. The new 7-nanometer technology combines existing NP7 technology with new content processor capabilities. Our enhanced platform suite of integrated products is delivering on customer demands for convergence, vendor consolidation, ease of management and lower operating costs. The success of this strategy is evident in our full year 2022 results, and I'll start there.

傳統的基於 CPU 的解決方案在支持網絡和安全方面效率非常低。這就是 Fortinet 開發專有 ASIC 技術來構建特定應用程序解決方案的原因。昨天，正如 Ken 所提到的，我們發布了我們的下一代 ASIC，即 40 安全處理器或 FortiSP5，它允許在每個網絡邊緣實現網絡和安全的線速融合。新的 7 納米技術將現有的 NP7 技術與新的內容處理器功能相結合。我們增強的集成產品平台套件正在滿足客戶對融合、供應商整合、易於管理和降低運營成本的需求。這一戰略的成功在我們 2022 年的全年業績中顯而易見，我將從那裡開始。

Billings passed the $5 billion mark, totaling $5.6 billion and growing 34%. While revenue totaled $4.4 billion, with growth accelerating to 32%, the fifth consecutive year of revenue growth of 20% or more. Driven by strong demand for our fabric and Cloud Security Solutions, enhanced platform technology billings and revenue both increased over 40% to $1.8 billion and $1.5 billion, respectively.

比林斯突破 50 億美元大關，總計 56 億美元，增長 34%。雖然收入總計 44 億美元，增速加快至 32%，但已連續第五年實現 20% 或更高的收入增長。在對我們的結構和雲安全解決方案的強勁需求的推動下，增強型平台技術的賬單和收入分別增長了 40% 以上，達到 18 億美元和 15 億美元。

And despite a challenging global supply chain environment, product revenue growth came in at 42%, our highest annual product revenue growth rate in over 10 years. Our product revenue growth was driven by the combined -- by the continued growth of our firewall use cases and the addition of over 23,000 new customers. Service revenue was up 26% to $2.6 billion, resulting in 3 consecutive years of accelerating service revenue growth rates.

儘管全球供應鏈環境充滿挑戰，產品收入增長率仍達到 42%，這是我們 10 多年來最高的年度產品收入增長率。我們的產品收入增長是由我們的防火牆用例的持續增長和超過 23,000 名新客戶的共同推動的。服務收入增長 26% 至 26 億美元，服務收入增長率連續 3 年加快。

Gross margin was strong at 76.3% and operating margin outpaced our initial expectations, increasing 110 basis points to a new Fortinet record high of 27.3%. Our GAAP operating margin of 22% and is one of the highest in the industry, and we continued our streak of being GAAP profitable every year of our 14-year history as a public company.

毛利率強勁，達到 76.3%，營業利潤率超出我們最初的預期，增長 110 個基點，達到 27.3% 的 Fortinet 歷史新高。我們的 GAAP 營業利潤率為 22%，是業內最高的之一，在我們作為上市公司的 14 年曆史中，我們繼續保持每年 GAAP 盈利的勢頭。

Earnings per share increased 49% to $1.19. Free cash flow was a record at $1.45 billion. Free cash flow margin was 33% and adjusted for real estate investments, the free cash flow margin came in at 37%. And for the year, we repurchased approximately 36 million shares at a cost of $2 billion. Total deferred revenue increased 34% to $4.6 billion. Short-term deferred revenue increased 32% to $2.35 billion. Quarterly contract terms throughout the year were consistent with the year earlier periods, including the fourth quarter at 28 months.

每股收益增長 49% 至 1.19 美元。自由現金流達到創紀錄的 14.5 億美元。自由現金流利潤率為 33%，經房地產投資調整後，自由現金流利潤率為 37%。這一年，我們以 20 億美元的成本回購了大約 3600 萬股股票。遞延收入總額增長 34% 至 46 億美元。短期遞延收入增長 32% 至 23.5 億美元。全年的季度合同條款與去年同期一致，包括第 28 個月的第四季度。

Before moving on to our Q4 results, I'd like to summarize our enterprise success and highlight a few 7-figure deals from 2022. We saw great success during the year with our strategy to expand further into the large enterprise segment as the number of deals over $1 million increased over 55% to a record 546 deals, and billings on these deals increased by over 70%. If we look at a few of our large deals of the year, let's start with the competitive upsell deal, Fortinet displaced 11 different vendors by consolidating the customer's network to security functions on our Security Fabric.

在繼續我們的第四季度業績之前，我想總結一下我們的企業成功，並強調從 2022 年開始的幾筆 7 位數的交易。我們在這一年裡看到了巨大的成功，我們的戰略進一步擴展到大型企業領域，因為超過 100 萬美元的交易增加了 55% 以上，達到創紀錄的 546 筆交易，這些交易的賬單增加了 70% 以上。如果我們看一下今年的幾筆大交易，讓我們從競爭性追加銷售交易開始，Fortinet 通過將客戶的網絡整合到我們的 Security Fabric 上的安全功能，取代了 11 家不同的供應商。

This worldwide wholesaler previously purchased Secure SD-WAN and FortiProxy. Next on the list was a centralized network security solution that could be managed and deployed to its 400 global locations. This customer chose Fortinet Security Fabric for a flexible and integrated solution across multiple scenarios, including work from anywhere, perimeter security and data center segmentation.

這家全球批發商之前購買了 Secure SD-WAN 和 FortiProxy。名單上的下一個是集中式網絡安全解決方案，可以管理並部署到其全球 400 個地點。該客戶選擇 Fortinet Security Fabric 作為跨多種場景的靈活集成解決方案，包括隨時隨地工作、邊界安全和數據中心分段。

In another upsell deal, a leading global manufacturer was spun off and had to stand up the security and networking infrastructure separately. The newly created infrastructures included remote access, SD-WAN, application delivery control, authentication, endpoint, e-mail protection and switching. Keys to our win included our zero-trust capabilities, a cloud-first SD-WAN strategy and the ease of integration and convergence across our platform suite.

在另一筆追加銷售交易中，一家領先的全球製造商被分拆出來，不得不單獨建立安全和網絡基礎設施。新創建的基礎設施包括遠程訪問、SD-WAN、應用程序交付控制、身份驗證、端點、電子郵件保護和交換。我們獲勝的關鍵包括我們的零信任能力、雲優先的 SD-WAN 戰略以及我們平台套件的輕鬆集成和融合。

Lastly, in the new logo win, a large U.S. retailer with over 500 locations were struggling with a total cost of ownership of their legacy security architecture. Keys to this win included delivering a single pane of glass versus the multiple consoles they were using and replacing the competitors' firewalls with our FortiGates, delivering URL filtering, WiFi security, and edge router replacement, all on our unified and integrated FortiOS platform. This customer reported anticipated savings of $29 million over 5 years.

最後，在贏得新徽標的過程中，一家擁有 500 多家門店的美國大型零售商正在努力應對其傳統安全架構的總擁有成本。獲勝的關鍵包括提供單一管理平台而不是他們使用的多個控制台，並用我們的 FortiGates 替換競爭對手的防火牆，提供 URL 過濾、WiFi 安全和邊緣路由器替換，所有這些都在我們統一和集成的 FortiOS 平台上。該客戶報告預計在 5 年內節省 2900 萬美元。

Turning to Q4 results. Both billings and revenue delivered new Fortinet records with billings of $1.7 billion and revenue of $1.3 billion. Both metrics increased over 30%. The strong fourth quarter revenue performance reflects solid customer demand across both our core and enhanced platform technologies. In the fourth quarter, we added over 6,200 new logos, another new Fortinet record reflecting the support of our channel partners, the leverage they bring and the breadth of our worldwide customer base.

轉向第四季度的結果。賬單和收入都創造了新的 Fortinet 記錄，賬單為 17 億美元，收入為 13 億美元。這兩個指標都增加了 30% 以上。第四季度強勁的收入表現反映了客戶對我們核心和增強平台技術的強勁需求。在第四季度，我們添加了 6,200 多個新徽標，這是 Fortinet 的又一項新記錄，反映了我們渠道合作夥伴的支持、他們帶來的影響力以及我們全球客戶群的廣度。

Taking a closer look at the fourth quarter, billings growth of 32% was driven by a 40% increase in enhanced platform technology billings, which accounted for over 1/3 of total billings. Total revenue growth of 33% was driven by strong demand for core and enhanced technology platforms, which increased 26% and 47%, respectively.

仔細觀察第四季度，32% 的賬單增長是由增強型平台技術賬單增長 40% 推動的，佔總賬單的 1/3 以上。對核心和增強技術平台的強勁需求推動了總收入增長 33%，這兩個平台分別增長了 26% 和 47%。

Product revenue grew 43% to $540 million. Service revenue was up 27% and to $743 million, driven by strong product revenue growth and strength in our security subscriptions. Short-term deferred revenue grew 32% and represents 8 consecutive quarters of accelerating growth rates. Total gross margin of 77.6% was driven by a 310 basis point increase in product gross margin to 65.2%. Several factors converged to drive our record high quarterly product gross margin, including legacy pricing actions, easing supply chain cost pressures and improved discounting. Service gross margin of 86.7%, ticked down 40 basis points due to increased labor cost and our expansion in cloud services and the related hosting costs.

產品收入增長 43% 至 5.4 億美元。服務收入增長了 27%，達到 7.43 億美元，這得益於產品收入的強勁增長和我們安全訂閱的強勁增長。短期遞延收入增長 32%，連續 8 個季度加速增長。總毛利率為 77.6%，這是由於產品毛利率增長 310 個基點至 65.2%。幾個因素共同推動我們創紀錄的季度產品毛利率，包括傳統定價行動、緩解供應鏈成本壓力和改善折扣。由於勞動力成本增加以及我們在雲服務和相關託管成本方面的擴張，服務毛利率為 86.7%，下降了 40 個基點。

Operating margin of 32.5%, was up 400 basis points year-over-year due to the strong gross margin performance and FX benefit.

由於強勁的毛利率表現和外匯收益，營業利潤率為 32.5%，同比增長 400 個基點。

Looking to the statement of cash flow summaries on Slides 11 and 12. Free cash flow was $497 million, adjusted free cash flow, which excludes real estate investments, was $510 million, representing a 40% adjusted free cash flow margin.

查看幻燈片 11 和 12 的現金流量摘要表。自由現金流量為 4.97 億美元，調整後的自由現金流量（不包括房地產投資）為 5.1 億美元，調整後的自由現金流量利潤率為 40%。

Cash taxes were $63 million, Capital expenditures were $31 million, including $13 million for real estate investments. DSO increased 14 days sequentially and year-over-year to 89 days, also impacting service revenue growth.

現金稅為 6300 萬美元，資本支出為 3100 萬美元，其中包括 1300 萬美元的房地產投資。 DSO 連續增加 14 天，同比增加到 89 天，這也影響了服務收入的增長。

Moving to guidance. We believe the continued innovations we made in building our platform enables our customers' digital transformation journey. And as Ken noted, customers are increasingly recognizing how Fortinet is integrated and single platform approach to security can deliver a lower total cost of ownership and a greater return on investments than competing solutions.

轉向指導。我們相信，我們在構建平台方面所做的持續創新有助於客戶的數字化轉型之旅。正如 Ken 指出的那樣，客戶越來越認識到 Fortinet 是如何集成的，單一平台的安全方法可以提供比競爭解決方案更低的總擁有成本和更高的投資回報。

Now I'd like to review our outlook for 2023, summarized on Slide 15, which is subject to disclaimers regarding forward-looking information that Peter provided at the beginning of the call. For the first quarter, we expect billings in the range of $1.415 billion to $1.465 billion, which at the midpoint represents growth of 24%. Revenue in the range of $1.180 billion to $1.220 billion, which at the midpoint represents growth of 26%. non-GAAP gross margin of 75% to 76%; non-GAAP operating margin of 23% to 24%, which at the midpoint represents an increase of 150 basis points.

現在我想回顧一下幻燈片 15 上總結的我們對 2023 年的展望，該展望受制於彼得在電話會議開始時提供的前瞻性信息的免責聲明。對於第一季度，我們預計賬單在 14.15 億美元至 14.65 億美元之間，中點代表增長 24%。收入在 11.8 億美元至 12.2 億美元之間，中間值代表增長 26%。非美國通用會計準則毛利率為 75% 至 76%；非 GAAP 營業利潤率為 23% 至 24%，中點代表增加 150 個基點。

Non-GAAP earnings per share of $0.27 to $0.29, which assumes a share count of between 795 million and 805 million. Capital expenditures of $80 million to $110 million, non-GAAP tax rate of 17%, cash taxes of $20 million. I should also note that first quarter guidance assumes backlog decreases slightly during the quarter.

非 GAAP 每股收益為 0.27 美元至 0.29 美元，假設股票數量在 7.95 億至 8.05 億之間。資本支出為 8000 萬至 1.1 億美元，非 GAAP 稅率為 17%，現金稅為 2000 萬美元。我還應該指出，第一季度指導假設積壓訂單在本季度略有減少。

For the full year, we expect billings in the range of $6.710 billion to $6.790 billion, which at the midpoint represents growth of 21%. Revenue in the range of $5.370 billion to $5.430 billion which at the midpoint represents growth of 22%. Total service revenue in the range of $3.335 billion to $3.365 billion, which at the midpoint represents growth of 27% and employees -- and implies a fourth consecutive year of accelerating service revenue growth.

對於全年，我們預計賬單在 67.10 億美元至 67.90 億美元之間，中點代表增長 21%。收入在 53.7 億美元至 54.3 億美元之間，中點代表增長 22%。總服務收入在 33.35 億美元至 33.65 億美元之間，中點代表 27% 的增長和員工——這意味著服務收入連續第四年加速增長。

The service revenue guidance also implies product revenue growth of 15%. Non-GAAP gross margin of 75% to 76%, non-GAAP operating margin of 25% to 26%, non-GAAP earnings per share of $1.39 to $1.41, which assumes a share count of between 805 million and 815 million. Capital expenditures of $400 million to $450 million due to continued investments in cloud, data centers and facilities. Non-GAAP tax rate of 17%, cash taxes of $375 million split somewhat evenly between the first and second half of the year. The increase in cash taxes reflects recently effective R&D capitalization and amortization requirements.

服務收入指引還暗示產品收入增長 15%。非美國通用會計準則毛利率為 75% 至 76%，非美國通用會計準則營業利潤率為 25% 至 26%，非美國通用會計準則每股收益為 1.39 美元至 1.41 美元，假設股票數量在 8.05 億至 8.15 億股之間。由於對雲、數據中心和設施的持續投資，資本支出為 4 億至 4.5 億美元。非 GAAP 稅率為 17%，3.75 億美元的現金稅在今年上半年和下半年之間平均分配。現金稅的增加反映了最近有效的研發資本化和攤銷要求。

The full year estimate assumes backlog approaches historical levels by the end of the year. Cybersecurity, but not immune to economic slowdowns is expected to remain a comparatively safe harbor. And with a strong business model and history of execution, we are confident that our market share gains will continue. We remain on track to achieve our 2025 financial targets, which include billings of $10 billion, revenue of $8 billion, non-GAAP operating margin of at least 25% and adjusted free cash flow margin in the mid- to high 30% range in 2025.

全年估計假設積壓在年底前接近歷史水平。網絡安全，但不能免受經濟放緩的影響，預計仍將是一個相對安全的港灣。憑藉強大的商業模式和執行歷史，我們相信我們的市場份額將繼續增長。我們仍有望實現我們的 2025 年財務目標，其中包括 100 億美元的營業額、80 億美元的收入、至少 25% 的非 GAAP 營業利潤率以及 2025 年調整後的自由現金流利潤率在 30% 的中高範圍內.

And with that, I'll now hand the call back over to Peter to begin the Q&A session.

有了這個，我現在將把電話轉回給彼得開始問答環節。

Thank you, Keith. Operator, please open the call for questions. (Operator Instructions) Open up the call, please. Thank you.

謝謝你，基思。接線員，請打開電話提問。 （操作員說明）請打開電話。謝謝。

(Operator Instructions) Our first question comes from Brian Essex of JPMorgan.

（操作員說明）我們的第一個問題來自摩根大通的 Brian Essex。

And congrats on some solid results and a solid guide. I guess given that we heard from one of your peers last night and they were I guess, markedly more conservative or cautious on the macro than you seem to be. Maybe for Ken and Keith, could you help us understand what you're seeing in the market from a macro perspective, how enterprises are spending, and how do any changes in the quarter relative to initial expectations pan out with regard to demand we're seeing sales cycles -- we're hearing about sales cycles elongating and budget scrutiny ongoing. What are you seeing on your side?

並祝賀一些可靠的結果和可靠的指南。我想鑑於昨晚我們從您的一位同行那裡聽到的消息，我猜他們在宏觀上比您看起來要保守或謹慎得多。也許對於 Ken 和 Keith，您能否幫助我們從宏觀角度了解您在市場上看到的情況、企業的支出情況，以及本季度相對於最初預期的任何變化對我們的需求有何影響？看到銷售週期——我們聽說銷售週期延長和預算審查正在進行中。你在你身邊看到了什麼？

I took a question feedback from some customer partners. Their budget is tight, but Fortinet solution has a better cost of total cost ownership and also kind of even cost saving for some like a Secure SD-WAN solution. And at the same time, we do see the use case of firewall expanding much broader than before, expect for this OT security, some other area, which pretty much, I'd say, network security may be the only solution to secure some of this OT area. So that's where we see the demand is still pretty strong. And so we're probably -- we're keeping gaining more market share in this [volatile] fragmented market.

我從一些客戶夥伴那裡得到了一個問題反饋。他們的預算很緊張，但 Fortinet 解決方案的總體擁有成本更低，而且對於一些安全 SD-WAN 解決方案來說甚至可以節省成本。同時，我們確實看到防火牆的用例比以前擴展得更廣，對於這種 OT 安全性，其他一些領域，我想說的是，網絡安全可能是保護某些領域安全的唯一解決方案這個OT區。所以這就是我們看到需求仍然非常強勁的地方。所以我們可能 - 我們在這個[不穩定]分散的市場中不斷獲得更多的市場份額。

Yes. Thanks, Ken. I -- spot on with that. I would also add, look, I think we're all sensitive to the overhang from the macro environment and what that may mean is (inaudible) but when we look at our internal numbers, whether it's pipeline growth and even if we compare what pipeline growth is today versus a year ago, it's even up in terms of percentage growth rates. The use cases, and I think in this environment, the savings that we offer and the ROI that we provide and some of the case studies that we provided in the call there are examples of that. I think we're continuing to benefit from that, and we do see that continued opportunities for market share gains even in this environment.

是的。謝謝，肯。我 - 發現了這一點。我還要補充一點，看，我認為我們都對宏觀環境的懸念很敏感，這可能意味著（聽不清）但是當我們查看我們的內部數據時，無論是管道增長還是我們比較管道今天的增長與一年前相比，就百分比增長率而言甚至更高。用例，我認為在這種環境下，我們提供的節省和我們提供的投資回報率以及我們在電話中提供的一些案例研究都是這樣的例子。我認為我們將繼續從中受益，我們確實看到即使在這種環境下也有繼續增加市場份額的機會。

Got it. Maybe just for a quick follow-up then, Keith. As you think about the level of conservatism in your fiscal '23 guide, I mean, stronger than, I think, some had expected. I know I'm going to get the question tomorrow how much conservatism is in there. What gives you confidence in hitting that kind of level of performance, particularly with regard to billings. And then any change to your 2025 targets as you kind of look at the strength that you're seeing in the market from here on out?

知道了。基思，也許只是為了快速跟進。當你考慮你的 23 財年指南中的保守主義水平時，我的意思是，比我認為的一些人預期的要強。我知道我明天會被問及那裡有多少保守主義。是什麼讓您有信心達到這種績效水平，尤其是在賬單方面。然後，當您審視從現在開始在市場上看到的實力時，您的 2025 年目標有何變化？

Yes. I think that the approach that we take, if you will, is consistent this time around with what we've done in prior years, but with certainly added conservatism in it to reflect what's happening or what may happen with the macro environment. And first and foremost, we start with the pipeline and looking at the pipeline growth there -- and the kind of the timing of the pipeline and making sure that we have deals that are teed up for the middle of the year and perhaps even to the second half of the year. So there's ample opportunity there. You also want to make sure that you've got sales productivity numbers that make sense and sales capacity numbers that make sense.

是的。我認為，如果你願意的話，我們這次採取的方法與我們前幾年所做的是一致的，但肯定會增加保守主義，以反映宏觀環境正在發生或可能發生的事情。首先也是最重要的，我們從管道開始，看看那裡的管道增長——以及管道的時間類型，並確保我們的交易在年中甚至可能到下半年。所以那裡有很多機會。您還想確保您擁有有意義的銷售生產力數字和有意義的銷售能力數字。

Yes, I think there will be some tailwind from the backlog, which I commented on in the comment that we're going to get some benefit from that as it continues to burn down. But keep in mind that we have seen some changes in cancellation rates, and I think we've added a significant amount of conservatism there around cancellation rates. Again, so I think it's really about the pipeline, it's the tailwind that we have and it take us the advantages that we're offering and total cost of ownership in this environment.

是的，我認為積壓會帶來一些順風，我在評論中評論說，隨著它繼續減少，我們將從中獲得一些好處。但請記住，我們已經看到取消率發生了一些變化，我認為我們在取消率方面增加了大量的保守主義。再一次，所以我認為這真的與管道有關，它是我們擁有的順風，它讓我們獲得了我們提供的優勢和在這種環境下的總擁有成本。

Our next question comes from the line of Fatima Boolani of Citi.

我們的下一個問題來自花旗銀行的 Fatima Boolani。

Keith, for you, just with respect to the services revenue guidance at 27%. That's not a material difference from the cadence you've been running at this year. And I'm curious what sort of input embed that revenue segment for you? And I ask because we have the dynamic of some of your customers delaying their subscription registrations over the course of '22.

基思，對你來說，關於 27% 的服務收入指導。這與您今年的跑步節奏沒有實質性區別。而且我很好奇什麼樣的輸入為您嵌入了該收入部分？我問是因為我們有一些客戶在 22 年期間推遲了他們的訂閱註冊。

And then we also have the dynamic of a lot of your customers not having realized the pricing increases that you've affected in the last 12 to 18 months. So I'm curious as to why with those positive inputs, you -- we wouldn't see better services growth. And what sort of things that you're being conservative about there? And then a quick follow-up, please.

然後我們還有很多客戶的動態，他們沒有意識到您在過去 12 到 18 個月中影響的價格上漲。所以我很好奇為什麼有了這些積極的投入，你 - 我們不會看到更好的服務增長。你在那裡保守了什麼樣的事情？請快速跟進。

Yes. I think it kind of goes back to Brian's question a moment ago in terms of -- with the level of conservatism, we caution that's in the guide. And I know that historically, I've often complained that I don't get much room in the services line from where the consensus is versus what I'm forecasting. At a 27% number, I think that's pretty much right on top of (inaudible) of that for the full year. And I think in this macro environment, I think that's a good place for us to be at this point in the year for full year guidance.

是的。我認為這有點回到 Brian 剛才的問題——關於保守主義的程度，我們警告說在指南中。而且我知道，從歷史上看，我經常抱怨我在服務領域沒有太多空間，從共識與我的預測來看。以 27% 的數字，我認為這幾乎是全年的（聽不清）。而且我認為在這種宏觀環境下，我認為這是我們在這一年的這一點上進行全年指導的好地方。

Understood. And any commentary on operating margin and operating profitability performance because we are seeing compression into next year, certainly on a quarterly basis. But anything to be mindful of there as it relates to maybe onetime items that are peeling out just perhaps why not see better follow-through rent profitability? And that's it for me.

明白了。以及對營業利潤率和營業利潤率表現的任何評論，因為我們看到明年壓縮，當然是按季度進行。但有什麼需要注意的，因為它可能與正在剝離的一次性項目有關，也許為什麼看不到更好的後續租金盈利能力？對我來說就是這樣。

Yes. Yes, I think our guidance is pretty much in sync with where we are historically at this point in time and consistent what we always talked about the 25% margin number. But I think the -- what you may be suggesting or referring is really, it's all about FX, if you will, when you look at 2022 compared to 2023. We had a nice benefit from FX in 2022. And I think in terms of what our assumptions are for 2023, like the rest of people, we read the economic reports from the big banks and so forth and what the dollar is expected to do. And I think we've really pulled out a lot of that benefit by the end of this year. So you're not really going to see that in the year-to-year comparison.

是的。是的，我認為我們的指引與我們在這個時間點的歷史位置非常同步，並且與我們一直談論的 25% 保證金數字一致。但我認為 - 你可能建議或指的是，如果你願意的話，當你將 2022 年與 2023 年進行對比時，這一切都與外匯有關。我們在 2022 年從外匯中受益匪淺。我認為就我們對 2023 年的假設是什麼，與其他人一樣，我們閱讀了大銀行等的經濟報告以及美元的預期走勢。我認為到今年年底，我們真的已經從中獲得了很多好處。所以你不會真的在逐年比較中看到這一點。

Our next question comes from the line of Saket Kalia of Barclays.

我們的下一個問題來自巴克萊銀行的 Saket Kalia。

Maybe first for -- maybe a question for both Ken and Keith. Clearly, SD-WAN and OT are becoming a bigger part of the business and that too with higher growth rates. And so maybe the question is, how do you folks think about the growth rate or runway for growth in those 2 businesses either separately or together, over the next couple of years, as part of the total growth equation or part of the $10 billion goal, however you want to think about it, but really curious about that SD-WAN and OT part of the business that's been doing so well.

也許首先是——也許是Ken 和Keith 的問題。顯然，SD-WAN 和 OT 正在成為業務的重要組成部分，而且增長率也更高。所以也許問題是，你們如何看待這兩個業務的增長率或增長路徑，無論是單獨還是一起，在接下來的幾年裡，作為總增長方程式的一部分或 100 億美元目標的一部分，但是您想考慮一下，但對業務中一直做得很好的 SD-WAN 和 OT 部分真的很好奇。

I think there is 2 parts. First, I totally agree with you said that SD-WAN and the OT market growing faster than the network security average. And on the other side, we do believe our solution has huge advantage compared to other competitors. So both SD-WAN and OT market is still pretty fragmented and compared to our home growth integrated solution and leverage FortiASIC and power. So our advantage much huge compared to other competitors, quite some -- mostly come from acquisition. And at the same time, they don't have the ASIC help to increase speed, lower the cost and the product consumption. So that's why we feel we're keeping growing above the market, so about the market growth rate. There's a different research about how the market is growing. But I do agree it's a fast-growing market compared to the cybersecurity space and there will be a lot of potential going forward.

我認為有兩個部分。首先，我完全同意你所說的 SD-WAN 和 OT 市場的增長速度快於網絡安全平均水平。另一方面，我們確實相信我們的解決方案與其他競爭對手相比具有巨大的優勢。因此，與我們的家庭增長集成解決方案和利用 FortiASIC 和電源相比，SD-WAN 和 OT 市場仍然相當分散。因此，與其他競爭對手相比，我們的優勢非常巨大，很多 - 主要來自收購。同時，他們沒有 ASIC 幫助提高速度、降低成本和產品消耗。所以這就是為什麼我們覺得我們的增長一直高於市場，所以關於市場增長率。關於市場如何增長，有不同的研究。但我確實同意，與網絡安全領域相比，這是一個快速增長的市場，未來會有很大的潛力。

Got it. Got it. Very helpful. Keith, maybe just a quick follow-up for you. Actually, great to see the billings duration stay roughly similar. I'm curious if you could just talk anecdotally or just specifically just around how you're thinking about billings duration here in '23? And whether that's been something that you feel like customers have pushed on given the interest rate environment that we're in?

知道了。知道了。很有幫助。基思，也許只是對你的快速跟進。實際上，很高興看到賬單持續時間保持大致相似。我很好奇你是否可以只是談些軼事，或者只是具體談談你如何看待 23 年的賬單持續時間？考慮到我們所處的利率環境，這是否是您認為客戶推動的事情？

Yes. I don't think that we've really seen customers push on the term. Obviously, at 28 months - 28 months, which is kind of been keeping where we've been historically. But I do think in the fourth quarter, we certainly had conversations with customers that were I think perhaps even more focused on cash flow, if you will, than they were on discounting in terms of extended payment terms and that sort of thing. So if I were to look at the -- what I'm hearing back from customers, it was all about cash protection. And with that, I assume if I were trying to do a lot of 5-year deals or something like that, I might have felt more pressure. But given the SMB mix of our business and our partner footprint, obviously, didn't come through in the numbers really.

是的。我不認為我們真的看到客戶推動這個詞。顯然，在 28 個月 - 28 個月，這有點保持我們歷史上的水平。但我確實認為在第四季度，我們當然與客戶進行了對話，我認為他們可能更關注現金流，如果你願意的話，而不是他們在延長付款條件和類似事情方面的折扣。因此，如果我要看——我從客戶那裡聽到的，都是關於現金保護的。因此，我想如果我嘗試做很多 5 年期交易或類似的事情，我可能會感到更大的壓力。但考慮到我們的業務和合作夥伴足蹟的 SMB 組合，顯然並沒有真正體現在數字上。

Our next question comes from the line of Hamza Fodderwala of Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Hamza Fodderwala。

Keith, I wanted to clarify something you said about the cancellation rates. I think you mentioned that you're seeing some changes there. Can you maybe elaborate on that a little bit? I think like the past few quarters, it's been around 4%, 5%. Just if you could provide any more color on that comment?

基思，我想澄清一下你所說的關於取消率的事情。我想你提到你在那裡看到了一些變化。你能詳細說明一下嗎？我認為與過去幾個季度一樣，大約在 4%、5% 左右。只是如果您可以為該評論提供更多顏色？

Yes. We did see a pickup to if we want to call it mid-single digits in Q3, we saw it tick up to high single digits in fourth quarter -- in the fourth quarter. And we've anticipated this, particularly as the backlog starts to shift its mix as the firewalls. There's still a significant amount of firewalls in the backlog, but it really now has tilted towards the network equipment, the switches and the access points. And so as you would expect, one last comment on that, as we see the shift in the mix in the backlog as well as the pick up in the cancellation rates I would also offer that as part of the guidance setting process, I think we've taken a fairly conservative approach to cancellation rates on what they -- how they may impact 2023 or said another way, we're not expecting all the backlog that exists at the beginning of the year to convert in 2023 because we think there'll be some cancellations.

是的。如果我們想在第三季度稱之為中個位數，我們確實看到了回升，我們看到它在第四季度上升到高個位數——在第四季度。我們已經預料到了這一點，尤其是當積壓工作開始轉變為防火牆時。積壓中仍有大量防火牆，但現在確實已經向網絡設備、交換機和接入點傾斜。因此，正如您所期望的那樣，關於這一點的最後一個評論是，當我們看到積壓訂單組合的變化以及取消率的回升時，我也會將其作為指導制定過程的一部分提供，我認為我們我們對取消率採取了相當保守的方法——它們如何影響 2023 年，或者換句話說，我們預計年初存在的所有積壓訂單都不會在 2023 年轉化，因為我們認為會有一些取消。

Got it. And just maybe a follow-up for Ken. I think SD-WAN is now nearly a $1 billion business for Fortinet, which is quite remarkable because you just started selling it, I think, maybe 4 years ago. I'm curious as more of that base starts to come up for refresh. What are other monetization drivers do you see for SD-WAN, whether it be attaching more services or perhaps increasing the price points. I'm curious how you're thinking about that?

知道了。也許只是肯的後續行動。我認為 SD-WAN 現在對 Fortinet 來說是一項價值近 10 億美元的業務，這非常了不起，因為你剛剛開始銷售它，我想，也許是 4 年前。我很好奇，因為越來越多的基地開始出現以進行更新。您認為 SD-WAN 的其他貨幣化驅動因素是什麼，無論是附加更多服務還是可能提高價格點。我很好奇你是怎麼想的？

We're definitely more service, whether under the overlay service for SD-WAN because our SD-WAN has all the security functions and also a lot of SD-WAN deployed case whether supporting work from home or work from anywhere or kind of helping enterprise reduce their total cost of networking all these things. We do see a lot of additional service they need. At the same time, we also see the service provider starting more working together with us, offer some quite additional service beyond, that's the traditional SD-WAN. So that's also helping drive market more service going forward.

我們肯定提供更多服務，無論是在 SD-WAN 的覆蓋服務下，因為我們的 SD-WAN 具有所有安全功能，而且還有很多 SD-WAN 部署案例，無論是支持在家工作還是在任何地方工作，或者某種程度上幫助企業降低他們將所有這些東西聯網的總成本。我們確實看到他們需要很多額外的服務。同時，我們也看到服務提供商開始更多地與我們合作，提供一些非常額外的服務，這就是傳統的 SD-WAN。因此，這也有助於推動市場提供更多服務。

Our next question comes from the line of Brad Zelnick of Deutsche Bank.

我們的下一個問題來自德意志銀行的 Brad Zelnick。

Congratulations on just blow out results and guidance, a nice job. My first question is just around the new ASIC FortiSP5. Can you remind us what, if any, impact we might expect in terms of customer purchasing patterns and what you've seen in the past and the extent perhaps it can drive accelerated demand and/or maybe the risk of trade-down effect? And I've got a follow-up.

祝賀你取得了巨大的成果和指導，幹得好。我的第一個問題是關於新的 ASIC FortiSP5。您能否提醒我們，在客戶購買模式方面我們可能會產生什麼影響（如果有的話）以及您在過去看到的情況，以及它可能會在多大程度上推動需求加速和/或降價交易效應的風險？我有後續行動。

Probably take some time, I'd say, maybe 1 to 2 years to refresh the product. And that's where every quarter, we tend to release 1 or 2 products, whether leverage new ASIC or the new CPU of some other network chip in the industry. I don't feel it will be a significant impact up and down of the result and will be more smooth transition. Because security deployment is a kind of a take long time to design, evaluate, deploy and also (inaudible) long sales cycle. At the same time, the life cycle of the product also tend to be quite long, like 7 to 10 years.

可能需要一些時間，我會說，可能需要 1 到 2 年的時間來更新產品。這就是每個季度，我們傾向於發布 1 或 2 種產品，無論是利用新的 ASIC 還是業內其他網絡芯片的新 CPU。我認為這不會對結果產生重大影響，並且過渡會更加平穩。因為安全部署是一種需要很長時間的設計、評估、部署，而且（聽不清）銷售週期也很長。同時，產品的生命週期也往往比較長，有7年到10年。

So that's where the ASIC definitely -- each generation definitely will help in and at the same time has a huge advantage compared to using general-purpose CPU. So that's where we're keeping gaining market share. But consider the switching costs, consider the long cycle, sale cycle and deployment cycle. And also, we also need time to put ASIC into a new product, which also taken in a few months, 3 to 6 months, thus I do see it will be like a more long-term positive impact instead of short term.

所以這就是 ASIC 肯定的地方——每一代肯定會提供幫助，同時與使用通用 CPU 相比具有巨大的優勢。所以這就是我們不斷獲得市場份額的地方。但是考慮轉換成本，考慮長周期，銷售週期和部署週期。而且，我們還需要時間將 ASIC 放入新產品中，這也需要幾個月、3 到 6 個月的時間，因此我確實認為這將是一種更長期的積極影響，而不是短期的。

Yes, Brad, I would only offer again for context. I think that this is what Fortinet has been 20 generation. It's a chip (inaudible) probably now we think content processors and network process and Systems-on-a-Chip. And I think that (inaudible) Ken and Michael have actually shown the ability to transition through those generations of chips. And if you look back at the financials, I think it's a little bit difficult to find a year that for a period of time, really saw spike because of the new chip. These are much more long-term plays. And I think the approach here is to execute in a smooth fashion over a number of years.

是的，布拉德，我只會再次提供上下文。我認為這就是 Fortinet 的第 20 代。它是一個芯片（聽不清），現在我們可能認為是內容處理器和網絡進程以及片上系統。我認為（聽不清）Ken 和 Michael 實際上已經展示了通過那幾代芯片進行過渡的能力。而且，如果您回顧一下財務狀況，我認為很難找到在一段時間內真正因為新芯片而出現飆升的一年。這些都是更長期的遊戲。我認為這裡的方法是在多年內以平穩的方式執行。

And Keith, can you just expand on your comments around DSOs being up sequentially year-on-year and the impact of services revenue? And related to that, I recall you had a change in policy around subscription activations. Is that also impacting services revenue? Any help there would be great.

Keith，你能否就 DSO 逐年增長以及服務收入的影響展開評論？與此相關的是，我記得您更改了有關訂閱激活的政策。這是否也會影響服務收入？任何幫助都會很棒。

Yes. The change in activation policies started February last week, I believe, February 1. So we'll start to see that going forward. What I was referring to is the -- DSO is really all about linearity, right? That's what it gives you insights, too. And if I see my DSO go from, call it, 75 days to 89 or 90, you can kind of start doing the math there and see that's a 20% increase in DSO, and it's really driven by how linearity came through in the quarter.

是的。激活政策的變化從上週的 2 月開始，我相信是 2 月 1 日。所以我們將開始看到它向前發展。我指的是——DSO 真的是關於線性度的，對吧？這也是它給你的見解。如果我看到我的 DSO 從 75 天變成 89 天或 90 天，你可以開始計算一下，發現 DSO 增加了 20%，這實際上是由本季度的線性度驅動的.

And when linearity starts shifting that much, we lose the opportunity to gain service revenue from sales early in the quarter that would normally activate. So we really didn't get a lift in service revenue from in-quarter deals the way that we would have expected because of linearity.

當線性開始發生如此大的變化時，我們就失去了從本季度初通常會激活的銷售中獲得服務收入的機會。因此，由於線性，我們真的沒有像我們預期的那樣從季度交易中獲得服務收入的提升。

Our next question comes from the line of Shaul Eyal of Cowen.

我們的下一個問題來自 Cowen 的 Shaul Eyal。

And congrats on the great performance and guidance. Keith, given the slightly lower-than-expected 4Q service revenue, how should we be thinking about the first quarter service revenue growth?

並祝賀您的出色表現和指導。基思，鑑於第四季度服務收入略低於預期，我們應該如何看待第一季度服務收入增長？

Yes. I think that we kind of remain truthful to our faithful to the notion of providing service revenue guidance for the full year and kind of letting the Street work out the numbers from that point going forward. I think that certainly, as we kind of look at laying out the year and with the backdrop of the macro that we're all concerned about, I don't think we really wanted to push too hard on some of the metrics that we didn't need to push on. And I think where we ended up with is pretty consistent in the quarter with our consensus when we look at our internal allocations between product and service revenue.

是的。我認為我們對我們忠實於提供全年服務收入指導的概念保持誠實，並讓華爾街從那時起計算出未來的數字。我認為肯定的是，當我們著眼於佈局這一年以及我們都關心的宏觀背景時，我認為我們真的不想在我們沒有的一些指標上過分努力需要繼續前進。當我們查看產品和服務收入之間的內部分配時，我認為我們在本季度的結果與我們的共識非常一致。

Understood. And maybe one more. As we think about the non-GAAP operating margins and really great performance, should we be thinking of the target to be some sort of an average of 25% over the period or a floor of 25% over the course of the next few years?

明白了。也許還有一個。當我們考慮非 GAAP 營業利潤率和真正出色的業績時，我們是否應該將目標視為在此期間的平均 25% 或未來幾年的底線 25%？

I'm going to answer yes. Yes, you should be thinking about 1 of those 2 ways. Look, I think we're driven by being above 25% operating margin, right? I think the ones that -- the last few years have taught us is life full of surprises. And so locking into a fixed commitment is a little bit challenging sometimes. But clearly, we manage the business as if it's the floor.

我會回答是的。是的，您應該考慮這兩種方式中的一種。看，我認為我們的營業利潤率超過 25%，對嗎？我認為過去幾年教會我們的是生活充滿驚喜。因此，鎖定一個固定的承諾有時會有點挑戰。但很明顯，我們管理業務就好像它是地板一樣。

Our next question comes from the line of Adam Borg of Stifel.

我們的下一個問題來自 Stifel 的 Adam Borg。

Maybe for Ken or Keith, just on sales headcount. Obviously, you guys have been aggressively growing sales and marketing headcount in recent years, and it's nice to see the enterprise success you talked about. Just curious where we are in sales force productivity, and how we should think about sales headcount growth and even overall headcount growth in '23? And I have a follow-up.

也許對於 Ken 或 Keith，只是銷售人數。顯然，你們近年來一直在積極增加銷售和營銷人員，很高興看到你們談到的企業成功。只是好奇我們在銷售人員生產力方面的進展情況，以及我們應該如何考慮 23 年的銷售人數增長甚至整體人數增長？我有一個後續行動。

Yes, we are continue hiring. But at the same time, we want to keeping the efficiency and is not dropping the efficiency for the sales and marketing. And at the same time, there's some long-term investment, whether in R&D, the infrastructure supporting we will continue to need to make. So that's why we do expect the total head count will keeping increased, but probably the rate that just like the last few years will be below the top line increase.

是的，我們正在繼續招聘。但與此同時，我們希望保持效率，而不是降低銷售和營銷的效率。與此同時，還有一些長期投資，無論是在研發方面，還是我們需要繼續進行的基礎設施支持。所以這就是為什麼我們確實預計總人數將繼續增加，但可能就像過去幾年一樣，增長率將低於收入增長。

Yes. I think I -- just building on Ken's comment. One of the note is that we do track tenure. We talked about it last quarter. Tenured would be people that have been here for, say, tenured people have been here more than 6 months. And I commented last quarter, the tenure was up, I think, 8 points. It's actually moved back to historical norms now. And tenure is kind of a key component of productivity as we see -- as we go forward.

是的。我想我——只是基於 Ken 的評論。其中一個注意事項是我們確實跟踪任期。我們上個季度談到了它。終身職位是指已經在這里工作了 6 個月以上的人。我上個季度評論說，我認為任期上升了 8 個百分點。它現在實際上已經回到了歷史規範。正如我們所見，任期是生產力的一個關鍵組成部分——隨著我們的前進。

Got it. And maybe just a quick follow-up just on the FortiGate and entry mid and high. It's nice to see really strong midrange growth. It's interesting at the high end at least by my math was the lowest mix since 2017. Just curious if anything to comment there.

知道了。也許只是對 FortiGate 和入門級中高端的快速跟進。很高興看到真正強勁的中端增長。這在高端很有趣，至少根據我的計算，這是自 2017 年以來最低的組合。只是想知道是否有什麼要評論的。

That sometimes depend on certain like products or backlog. I think that's probably the average still pretty similar. We don't see much up and down but sometimes from quarter-to-quarter, it may change a little bit. But I have to say the total mix is still pretty much the same.

這有時取決於某些類似的產品或積壓。我認為這可能是平均值仍然非常相似。我們看不到太多的上下波動，但有時從一個季度到另一個季度，它可能會發生一點變化。但我不得不說整體組合仍然幾乎相同。

Yes. I think that's one of the challenges you have in the current environment and the supply chain was really doing funny things, if you will, into delivery, and we don't give you a lot of insights to orders that we were taking in, but we provide billings numbers, you get some distortion there just simply based upon what's available. Specifically, we saw a significant amount of availability of the 100F products, if you will, which are a midrange product. And you're seeing that availability came in the fourth quarter, and it shifted that mix in the way you just described it.

是的。我認為這是您在當前環境中面臨的挑戰之一，供應鏈確實在做一些有趣的事情，如果您願意的話，在交付過程中，我們不會給您很多關於我們正在接受的訂單的見解，但是我們提供帳單號碼，您只是根據可用的東西在那裡得到一些失真。具體來說，我們看到 100F 產品的大量可用性，如果您願意的話，它們是中檔產品。你看到可用性出現在第四季度，它以你剛才描述的方式改變了這種組合。

Our next question comes from the line of Tal Liani of Bank of America.

我們的下一個問題來自美國銀行的 Tal Liani。

There's going to be one day call that no one is going to butcher my name, and I'm going to be very happy. But I wanted to ask you 2 things. First of all, could you provide a backlog for 4Q or anything about it? I'm trying to calculate the bookings for the year and what happens to bookings? And any color on backlog would be great.

總有一天會宣布沒有人會毀掉我的名字，我會非常高興。但我想問你兩件事。首先，您能否提供第 4 季度的積壓訂單或相關信息？我正在嘗試計算當年的預訂量以及預訂量會發生什麼變化？積壓的任何顏色都會很棒。

And the second question, a few people asked you about the services growth for next year. I want to ask you about the product growth. The product growth is going from 42% to 15%, if my math is right, from last year to next year to this year. And on the other hand, your commentary is positive. It's -- there's more activity, there's more product sales. So can you take us through the dynamics of product growth and also the connection, the relationship between services and products.

第二個問題，有幾個人問你明年的服務增長情況。我想問你關於產品增長的問題。如果我的計算正確的話，從去年到明年再到今年，產品增長率將從 42% 上升到 15%。另一方面，你的評論是積極的。它是——有更多的活動，有更多的產品銷售。那麼，您能否帶我們了解一下產品增長的動態，以及服務和產品之間的聯繫、關係。

Yes, I'll start with the last one first, if you will. I think that -- I think we are very excited about the opportunities in front of us in terms of how the company is executing. But we are certainly also very cognizant of the unknown of the macro environment. And I think there's just an opportunity here in terms of how we guide for the full year to really bake in concerns around the macro and how it may manifest in the coming months -- coming quarters. So I think you're seeing that, and I kind of made a comment earlier that historically, it's been tough for me to be somewhat cautious on service revenue because it's so visible.

是的，如果你願意的話，我會先從最後一個開始。我認為 - 我認為我們對公司執行方式方面擺在我們面前的機會感到非常興奮。但我們當然也非常清楚宏觀環境的未知性。而且我認為，就我們如何指導全年真正解決對宏觀的擔憂以及它在未來幾個月 - 未來幾個季度中可能如何體現而言，這裡只是一個機會。所以我認為你看到了這一點，而且我早些時候曾發表過評論，從歷史上看，我很難對服務收入持謹慎態度，因為它是如此明顯。

We're looking at short-term deferred revenue and the conservatism oftentimes ends up in product revenue. I think there's still an element of that in this conversation.

我們正在研究短期遞延收入，而保守主義通常最終會出現在產品收入中。我認為在這次談話中仍然有這樣的元素。

Yes, I think for the backlog like what I said in the last one of the quarters, it's continued shifting to the network -- network and the Wi-Fi, which is more industry standard product. I'd say probably today, most of the backlog will come from the network side and the Wi-Fi side, which has a higher cancellation rate and -- so that's where the negative mentioned, we take a pretty -- when it's positive conservative, that definitely pretty good estimate what will the impact for the whole year on all these -- the backlog for the product revenue.

是的，我認為對於像我在最後一個季度所說的那樣的積壓，它繼續轉移到網絡——網絡和 Wi-Fi，這是更多的行業標準產品。我想說今天可能，大部分積壓將來自網絡端和 Wi-Fi 端，它們具有更高的取消率，並且 - 所以這是負面提到的地方，我們採取漂亮 - 當它是積極保守的，這絕對很好地估計了全年對所有這些的影響——產品收入的積壓。

And product revenue, definitely, we see probably going forward, the benefit of the new ASIC and also some of the new products that were helping and also some of the case -- the use case -- additional use case of the firewall definitely also are helping, but it will take some time. So that's where we tend to be more careful to forecast. At the same time, we do see long term, we still have a huge advantage compared to other competitors because the investment we made in the product, in the hardware, in the ASIC give us huge advantage of the total cost of ownership. So we'll continue keeping gaining market share in that space.

和產品收入，當然，我們可能會看到未來，新 ASIC 的好處以及一些有幫助的新產品，還有一些案例 - 用例 - 防火牆的其他用例肯定也有幫助幫助，但需要一些時間。所以這就是我們傾向於更加謹慎地預測的地方。與此同時，我們確實看到，從長遠來看，與其他競爭對手相比，我們仍然擁有巨大的優勢，因為我們在產品、硬件和 ASIC 上的投資給了我們巨大的總擁有成本優勢。因此，我們將繼續在該領域繼續獲得市場份額。

And do you provide some numbers about the backlog or maybe how material it is to revenues as a percentage of revenues?

你是否提供了一些關於積壓的數字，或者它對收入的重要性（佔收入的百分比）？

I think since it's been very difficult to forecast at the same time, with change in cancellation and also most of the backlog related to networking WiFi, not a core product. So that's where, since last quarter, we no longer provide detail of the backlog, we feel that could be a little bit misleading if we keep in providing that.

我認為，因為很難同時預測，取消的變化以及與網絡 WiFi 相關的大部分積壓，而不是核心產品。因此，自上個季度以來，我們不再提供積壓的詳細信息，我們認為如果我們繼續提供這些信息可能會有點誤導。

I think we can offer you some directional comments here. So the headlines would be that backlog was up year-over-year. Quarter-over-quarter, it was down. But as you start thinking through how to treat the backlog in terms of doing your own models going forward, again, we would come back and remind you of a couple of things. We expect the cancellation rates are going to increase, and that's baked into our guidance as we look at things.

我想我們可以在這里為您提供一些方向性的評論。因此，頭條新聞是積壓訂單逐年增加。環比下降。但是，當您開始考慮如何處理積壓的工作以繼續構建您自己的模型時，我們會再次提醒您一些事情。我們預計取消率將會增加，並且在我們審視事物時將其納入我們的指導方針。

And when we say return to historical norms in the commentary, I think we probably would have -- 3 years ago had backlog for professional services and training that may have been in the $30 million range. So maybe with growth now you're probably looking at a steady state that could get you over $40 million to $50 million. So just a note of caution, they'll just take all that backlog and assume it's all going to convert into billings and revenue in 2023 given those dynamics.

當我們在評論中說回到歷史規範時，我認為我們可能會 - 3 年前積壓的專業服務和培訓可能在 3000 萬美元範圍內。因此，也許隨著現在的增長，你可能正在尋找一個穩定的狀態，可以讓你超過 4000 萬到 5000 萬美元。所以請注意，鑑於這些動態，他們只會處理所有積壓的訂單，並假設它們將在 2023 年全部轉化為賬單和收入。

Our next question comes from the line of Ittai Kidron of Oppenheimer.

我們的下一個問題來自 Oppenheimer 的 Ittai Kidron。

Nice quarter. Keith, I was wondering if you could do a little bit of a deeper dive for us into the enhanced part of your business, if there's a way for you to kind of break it down a little bit for us by product. And perhaps rank order for us, categories, which are growing above the average for the category and below the average for the category. I would just like to get a little bit more color as to the change in mix within that.

不錯的季度。基思，我想知道你是否可以為我們更深入地了解你業務的增強部分，如果有一種方法可以讓你按產品為我們稍微分解一下。也許我們的排名順序是類別，這些類別的增長高於該類別的平均水平，但低於該類別的平均水平。關於其中的混合變化，我只想獲得更多顏色。

Yes. I don't know that I've really seen a change in the mix, if you will. I think the -- when you look at the -- what we call the FortiManager, FortiAnalyzer and certainly, the virtual machines are doing very, very well. And then as you start looking at the tail of the fabric products in the areas of EDR and monitor and SIM and so on and so forth, I think that they're smaller dollar totals but sometimes very dramatic and exciting growth rates. So I want to be a little bit careful about getting -- painting anybody in too great a light in terms of their contribution because everybody is contributing. Certainly, the networking equipment part of the business has done very, very well, and this is a key component of this convergent story that we've talked about, and it remains probably about 1/3 of the fabric business.

是的。如果你願意的話，我不知道我是否真的看到了組合的變化。我認為——當你看到——我們稱之為 FortiManager、FortiAnalyzer 的東西，當然，虛擬機做得非常非常好。然後，當你開始關注 EDR、監視器和 SIM 等領域的織物產品尾部時，我認為它們的美元總額較小，但有時增長率非常顯著和令人興奮。所以我要小心一點——在任何人的貢獻方面過於誇張地描繪任何人，因為每個人都在做出貢獻。當然，業務的網絡設備部分做得非常非常好，這是我們談到的這個融合故事的關鍵組成部分，它可能仍然佔結構業務的 1/3 左右。

Got it. Excellent. And then just going back to the cancellation rate, just to make sure I understand this. How much of this is tied into supply chain, meaning of supply chain? Is it getting better? Availability is no longer an issue? Customers are less perhaps interested in getting too far ahead in line and waiting for product. How much of that is a factor in this?

知道了。出色的。然後回到取消率，只是為了確保我理解這一點。其中有多少與供應鏈相關，即供應鏈的含義？好轉了嗎？可用性不再是問題？客戶可能不太願意排隊太遠並等待產品。其中有多少是其中的一個因素？

The supply chain environment definitely has some improvement for networking for the WiFi. That's where sometimes a customer, they may have a multiple order to see which vendor can deliver because a lot of networking equipment WiFi is a pretty standard product. Even for us, we do add quite some security functions in there. But sometimes customers just cannot wait. So that's where we see a little bit higher cancellation rate with -- I think right now, the overall supply chain environment, I think, is improving.

供應鏈環境對於 WiFi 的網絡肯定有一些改善。有時候客戶可能會有多個訂單，看看哪個供應商可以交付，因為很多網絡設備 WiFi 是非常標準的產品。即使對我們來說，我們也確實在其中添加了相當多的安全功能。但有時客戶就是等不及了。所以這就是我們看到取消率略高的地方 - 我認為現在，我認為整體供應鏈環境正在改善。

Yes. I think the conversation around cancellation rates, a few things there. We said it went from mid-single digits to high single digits. And then as we built into the guidance, it is a multiple that we built in the guidance of what we just saw in the fourth quarter. What we actually get out of it, we'll see. But the reason to be so cautious about it is what Ken is talking about. We knew that we had an advantage with firewalls and dealing with our suppliers and our vendors and we thought we'd be successful in pushing down that component of backlog first. And indeed, the mix has shown that. I think it's now something on the order of about 75% -- 75%, 25% between networking equipment and firewalls, still firewalls in the mix.

是的。我認為圍繞取消率的談話，有一些事情。我們說它從中個位數變為高個位數。然後，當我們在指導中建立時，它是我們在第四季度剛剛看到的指導中建立的倍數。我們實際從中得到什麼，我們拭目以待。但對此如此謹慎的原因正是肯所說的。我們知道我們在防火牆和與我們的供應商打交道方面有優勢，我們認為我們會成功地首先減少積壓的那部分。事實上，混合已經表明了這一點。我認為現在大約有 75% - 75%，網絡設備和防火牆之間有 25%，仍然是混合防火牆。

But as Ken pointing out is there may be more risk with that networking equipment of cancellations as we go forward, and particularly as a backlog deal for those elements continue to age out a little bit as we move through this process.

但正如 Ken 指出的那樣，隨著我們的前進，網絡設備取消的風險可能會更大，特別是隨著我們在這個過程中的推進，這些元素的積壓交易會繼續老化。

In terms of continuing supply chain challenges, I'm not quite sure I was making the length on that. I don't -- I guess that would have an impact on the continuing build of backlog. But as we said in our comments, we really expect to get to a backlog number by the end of this year that's much more closely aligned with our historical norms.

就持續的供應鏈挑戰而言，我不太確定我在這方面做得很長。我沒有——我想這會對積壓的持續構建產生影響。但正如我們在評論中所說，我們真的希望在今年年底之前達到一個與我們的歷史規範更加一致的積壓數量。

Our next question comes from the line of Andrew Nowinski of Wells Fargo.

我們的下一個問題來自 Wells Fargo 的 Andrew Nowinski。

Just 2 quick questions. First, I want to ask a question on EMEA. You've had 5 quarters now of accelerating growth in Europe, and that seems to defy the macro trends that we consistently hear about in Europe. Just wondering if there's something specific in your portfolio that might be driving that strong growth in Europe.

只需 2 個快速問題。首先，我想問一個關於 EMEA 的問題。你現在已經有 5 個季度在歐洲加速增長，這似乎違背了我們在歐洲一直聽到的宏觀趨勢。只是想知道您的投資組合中是否有特定的東西可能會推動歐洲的強勁增長。

I think we definitely have a pretty long tenure and a good team there. And at the same time, the case, the firewall case also expand quite well in Europe, in some countries there. And some of the service provider carrier, they are a little bit more ahead compared to some bigger service provider for the U.S. on moving some new solutions, including some 5G SD-WAN. So that's where we continue to see some good growth there.

我認為我們肯定有很長的任期和一支優秀的團隊。而與此同時，防火牆的案例在歐洲也擴展得很好，在一些國家也有。還有一些服務提供商運營商，與美國一些更大的服務提供商相比，他們在移動一些新解決方案（包括一些 5G SD-WAN）方面領先一點。所以這就是我們繼續在那裡看到一些良好增長的地方。

Also, we kind of surprisingly -- even during the recession, the SMB sector growing quite strong compared to some enterprise. Enterprise more about how to lower the cost of ownership, protect some of their own kind of profit margin. But SMB, they do see the importance of cybersecurity, especially in ransomware they are starting more targeted SMB right now. So we do see quite strong growth in SMB and so that's also helping some regions in Europe.

此外，我們有點令人驚訝——即使在經濟衰退期間，與某些企業相比，SMB 部門的增長相當強勁。企業更多關心的是如何降低擁有成本，保護自己的一些利潤空間。但是 SMB，他們確實看到了網絡安全的重要性，特別是在勒索軟件方面，他們現在正在啟動更有針對性的 SMB。所以我們確實看到 SMB 的增長非常強勁，這也幫助了歐洲的一些地區。

Got it. Okay. And then I wanted to ask about gross margins. So you talked about easing cost pressures and lower discounting as some of the levers that drove that better-than-expected gross margin. I guess, number one, how sustainable do you think those factors are as we look into fiscal '23? And then when you launched new ASIC, like you did earlier today, is that a headwind to gross margin initially?

知道了。好的。然後我想問一下毛利率。所以你談到緩解成本壓力和降低折扣是推動毛利率好於預期的一些槓桿。我想，第一，在我們研究 23 財年時，您認為這些因素的可持續性如何？然後當你推出新的 ASIC 時，就像你今天早些時候所做的那樣，這最初是否會對毛利率產生不利影響？

Yes. I think the -- few things we talked about price benefits, the discounting and then some easing of the impact of the supply chain. I think the price benefit is something that will obviously stay with us in the future. And so we should still get a tailwind from that. However, discounting and supply chains, call it, savings for lack of a better term, that's what we relate to our history of price increases. And I think we kind of reached a very kind of maybe the high watermark in terms of being -- having price increases covering those costs, and that will start to settle back down to a more normalized pattern going forward. Meaning that we'll still have inflationary cost increases, but we've really slowed down the price benefits, the price increases. So net-net, price increases continue, discounting and supply chain benefits may not.

是的。我認為 - 我們談到了價格優勢、折扣以及供應鏈影響的一些緩和。我認為價格優勢顯然會在未來與我們同在。因此，我們仍然應該從中受益。然而，折扣和供應鏈，稱之為“因缺乏更好的術語而節省”，這就是我們與價格上漲歷史相關的內容。而且我認為，就存在而言，我們有點達到了一個非常高的水位線 - 價格上漲覆蓋了這些成本，並且這將開始回歸到更正常化的模式。這意味著我們仍然會有通貨膨脹成本增加，但我們確實減緩了價格收益，價格上漲。因此，淨價繼續上漲，折扣和供應鏈利益可能不會。

Our next question comes from the line of Ray McDonough of Guggenheim Partners.

我們的下一個問題來自 Guggenheim Partners 的 Ray McDonough。

Maybe for Ken or Keith. The last time we saw product growth accelerate for 2 years was back in 2014 and '15, you had 2 really strong years of product growth, and that was followed by a pretty sharp deceleration of growth over the next 2 years. And I understand the business is a lot different than it was back then, but there does seem to be some similarities, at least how it relates to the macro environment and your results obviously point to you guys navigating it, the macro quite well. But you did reiterate your '25 guidance, which I believe implies mid-teens product growth. So I guess the question is, why should we think this time is different? Is it just that you have a significantly larger portfolio of solutions? Is it broader acceptance from customers willing to consolidate networking and security functionality. Any comparisons or contrast you can provide specifically as it relates to product growth versus, if you will, the previous cycle would be helpful.

也許是為了 Ken 或 Keith。我們上一次看到產品增長加速 2 年是在 2014 年和 15 年，你有 2 年非常強勁的產品增長，隨後 2 年增長急劇放緩。而且我知道業務與當時有很大不同，但似乎確實有一些相似之處，至少它與宏觀環境的關係以及你的結果顯然指向你們導航它，宏觀非常好。但你確實重申了你的 25 年指導方針，我認為這意味著產品增長處於中期。所以我想問題是，為什麼我們應該認為這次不同？僅僅是因為您擁有明顯更大的解決方案組合嗎？願意整合網絡和安全功能的客戶是否更廣泛地接受了它。您可以提供任何與產品增長相關的具體比較或對比，如果您願意的話，上一個週期將有所幫助。

I think in the 2014, 2015 (inaudible) the outbreak of whether Target or Sony case, which a lot of enterprise tried to upgrade from the traditional connection-based firewall to the next-gen firewall, which including some prevention and other things. So that's where it's more like kind of refresh more in the enterprise area. So we do see some strong growth there after the severe issue. And then by this time, we see there's a few things. One is really during the pandemic, there's a new infrastructure build supporting a work from home or anywhere. At the same time, the ransomware attack quite broadly hit the whole industry.

我認為在 2014 年、2015 年（聽不清）爆發時，無論是 Target 還是 Sony 案例，很多企業都試圖從傳統的基於連接的防火牆升級到下一代防火牆，其中包括一些預防和其他東西。所以這更像是企業領域的更新。因此，在嚴重問題之後，我們確實看到了一些強勁的增長。然後到這個時候，我們看到了一些東西。一個是在大流行期間，有一個新的基礎設施建設支持在家或任何地方工作。與此同時，勒索軟件攻擊對整個行業的衝擊也相當廣泛。

And another part, we keep on seeing the convergence, which is like SD-WAN, the 5G, the Wi-Fi and also internal segmentation. So that's a much broader use case of the firewall deployment and also including OT, a lot of more devices being connected. So we feel this time is really kind of a more broad firewall use case kind of apply to the whole infrastructure. That's what we kind of more emphasized the convergence is a little bit different than the last time, like 8, 9 years ago. So that's why we feel this time probably will be more smooth transition because the traditional firewall, whatever will not go away. And at the same time, that's more use case convergence into the traditional networking area, expanding to the OT some other area, we're helping keeping driving the product revenue growth and then followed by the additional service revenue. So that's the sense we're planning.

另一方面，我們不斷看到融合，例如 SD-WAN、5G、Wi-Fi 以及內部分段。因此，這是一個更廣泛的防火牆部署用例，還包括 OT，連接了更多的設備。所以我們覺得這次真的是一種更廣泛的防火牆用例，適用於整個基礎設施。這就是我們更加強調的一點，融合與上次（例如 8、9 年前）有點不同。所以這就是為什麼我們覺得這次過渡可能會更加平穩，因為傳統防火牆無論如何都不會消失。與此同時，更多的用例融合到傳統網絡領域，擴展到 OT 其他領域，我們正在幫助繼續推動產品收入增長，然後是額外的服務收入。這就是我們計劃的意義。

That's helpful. And if I could, maybe a follow-up. You talked a little bit about the momentum in large deals and enterprise deals in '22. But given the macro environment, could you compare and contrast, maybe Keith or Ken, behavior you're seeing from larger customers and maybe those on the smaller end of the spectrum. Are you seeing more deal delays upmarket, more propensity to consolidate functionality at the lower end? Anything -- any more color would be helpful.

這很有幫助。如果可以的話，也許可以跟進。你談到了 22 年大型交易和企業交易的勢頭。但是考慮到宏觀環境，您能否比較和對比您從大客戶和小客戶那裡看到的行為，也許是 Keith 或 Ken。您是否看到更多交易延遲高端市場，更傾向於在低端整合功能？任何東西——任何更多的顏色都會有所幫助。

Yes, it's definitely helping the customer lower the total cost of ownership, both on the management cost and also on the product service cost, which we have here an advantage over the competitors. So that's where we see a lot of big enterprise customers. They definitely want to -- when they see the renewal, when they see all is the need to add additional protection for the infrastructure, we do see this like how to have a better total cost of ownership and at the same time, leverage a single integrated platform, automated platform to offer better security networking together. Even there's a trend to merge the traditional network operating team security team together so making the SOC and NOC kind of combined together and also converge on the traditional networking and security together. So we do see some trends happening in the big enterprise and which we kind of developed technology and the long-term investments starting to see. I mean, started getting benefit for the trend.

是的，它確實幫助客戶降低了總擁有成本，包括管理成本和產品服務成本，這是我們相對於競爭對手的優勢。所以這就是我們看到很多大企業客戶的地方。他們肯定希望——當他們看到更新時，當他們看到所有需要為基礎設施增加額外保護時，我們確實看到瞭如何擁有更好的總擁有成本，同時利用單一集成平台，自動化平台共同提供更好的安全網絡。甚至有將傳統網絡運營團隊安全團隊合併在一起的趨勢，使 SOC 和 NOC 有點結合在一起，同時也將傳統網絡和安全融合在一起。因此，我們確實看到了大企業中正在發生的一些趨勢，我們已經開始看到這種開發技術和長期投資的趨勢。我的意思是，開始從趨勢中獲益。

Like everybody else, I mean, you're reading about people talking about deals taking longer to get across the finish line and more approvals and so forth. And I don't think we were immune to that by any stretch of the imagination. Keep in mind as we're going through -- as the world is moving through this. At the same time, Fortinet's kind of expanding from just 7-figure deals. And I think we talked about 546 7-figure deals or more last year, if I remember correctly, a huge number. now adding more and more 8-figure deals. So I think we're probably seeing huge opportunities, but we're also getting exposed to how that approval process works and how we manage with our sales team, our customers through that process.

和其他人一樣，我的意思是，你正在閱讀人們談論的交易需要更長的時間才能通過終點線和更多的批准等等。而且我認為無論怎麼想，我們都無法倖免。請記住我們正在經歷的事情——因為世界正在經歷這一切。與此同時，Fortinet 的交易規模從 7 位數開始擴大。我想我們去年討論了 546 筆 7 位數或更多的交易，如果我沒記錯的話，這是一個巨大的數字。現在增加越來越多的 8 位數交易。所以我認為我們可能看到了巨大的機會，但我們也了解了審批流程的運作方式以及我們如何通過該流程與銷售團隊和客戶進行管理。

Congrats on the strong results.

祝賀你取得了優異的成績。

Our next question comes from the line of Adam Tindle of Raymond James.

我們的下一個問題來自 Raymond James 的 Adam Tindle。

Okay. Keith, I wanted to start with pricing. I think we picked up if we got this right, another pricing increase announced in January effective in February. Wondering if you could touch on the rationale and early response to that? Where are we in the elasticity of demand? And thinking forward, obviously, costs are ultimately going to normalize, hopefully, in your model. What would be the strategy for you once costs normalize, would you reduce price or capture margin?

好的。基思，我想從定價開始。我認為，如果我們做對了，我們就會回升，1 月份宣布的另一次價格上漲將於 2 月份生效。想知道您是否可以談談對此的基本原理和早期反應？我們的需求彈性在哪裡？顯然，向前看，成本最終會正常化，希望在您的模型中。一旦成本正常化，您的策略是什麼，您會降低價格還是獲取利潤？

Yes, last part first. I mean I think we'll continue to monitor the market and make the appropriate adjustments there. I don't -- seeing inflation go backwards is probably not something that's happened a lot in history, but it could happen, I guess. In terms of the most recent price increase that we talked about, it's almost a nonevent to me. It's extremely low single digits gross and after discounting, it's a fraction of an interest point.

是的，首先是最後一部分。我的意思是我認為我們將繼續監控市場並在那裡做出適當的調整。我沒有——看到通脹倒退在歷史上可能不是經常發生的事情，但我猜它可能會發生。就我們談到的最近的價格上漲而言，這對我來說幾乎是小事一樁。它的毛利率極低，個位數，打折後，只是一個利息點的一小部分。

Got it. Okay. And then maybe just as a follow-up for Ken. I wanted to ask on SASE competition. When your main competitors has said they've integrated their SASE offering with SD-WAN and secure web gateway in particular. They're pushing that sales motion across the entire sales force now. As we think about Fortinet, obviously, very strong in SD-WAN, but that secure web gateway or proxy piece is perhaps not as prevalent or a different strategy. It's clearly not impacting your unit market share at present, but just thinking forward to competing and differentiating in SASE now that your competitors . really pushing that motion across the entire sales force?

知道了。好的。然後可能只是作為 Ken 的後續行動。我想問一下SASE比賽。當您的主要競爭對手錶示他們已將其 SASE 產品與 SD-WAN 和安全 Web 網關集成在一起時。他們現在正在推動整個銷售團隊的銷售活動。當我們考慮 Fortinet 時，顯然在 SD-WAN 方面非常強大，但安全的 Web 網關或代理可能並不那麼普遍或不同的策略。這顯然不會影響您目前的單位市場份額，而只是考慮與您的競爭對手在 SASE 中競爭和差異化。真的要在整個銷售隊伍中推動這項運動嗎？

Yes, I think we -- our strategy, like I keeping saying in the last few years is, first, we want to have a SASE or integrated in the same system, the same OS, including all the SD-WAN or the SASE function. So making SASE can be more easily broader deployed and also working with service provider to leverage their infrastructure to offer SASE. So it's a little bit different than some of the SASE players right now in the market. So we do believe this is highly integrated the single system, OS will be more efficient and same time will be more secure and -- so that's what we're keeping building on whether the new FortiASIC (inaudible) and also the new FortiOS reflect all this kind of development we reported into the solution.

是的，我認為我們——我們的戰略，就像我在過去幾年一直說的那樣，首先，我們希望擁有一個 SASE 或集成在同一個系統、同一個操作系統中，包括所有 SD-WAN 或 SASE 功能.因此，可以更輕鬆地更廣泛地部署 SASE，並與服務提供商合作，利用他們的基礎設施來提供 SASE。所以它與目前市場上的一些 SASE 播放器有點不同。所以我們相信這是高度集成的單一系統，操作系統會更高效，同時會更安全——所以這就是我們一直在構建的新 FortiASIC（聽不清）和新 FortiOS 是否反映了所有我們將這種開發報告到解決方案中。

At the same time, we keep working closely with pretty much all the carrier service provider, even cloud provider to offer SASE together. And that's also a little bit different strategy compared to some other SASE player. So we do believe long-term leverage infrastructure, a lot of our own service provider, telecom provider had will be much more efficient than the profit model compared to some of the SASE solution or player kind of keep losing money, which will be difficult to last long. So that's what we will keeping invest in this area. And also, we want to be a long-term player in this space and also we'll be keeping internal innovation R&D and keeping driving this space.

同時，我們與幾乎所有的運營商服務提供商，甚至雲提供商保持密切合作，共同提供 SASE。與其他一些 SASE 播放器相比，這也有一點不同的策略。所以我們確實相信長期槓桿基礎設施，很多我們自己的服務提供商，電信提供商比盈利模式更有效率，與一些 SASE 解決方案或播放器相比，那種不斷虧損，這將很難長久。因此，這就是我們將繼續在該領域進行投資的原因。而且，我們希望成為這個領域的長期參與者，我們將保持內部創新研發並繼續推動這個領域。

And congrats on the year.

祝賀這一年。

Our next question comes from the line of Ben Bollin of Cleveland Research.

我們的下一個問題來自 Cleveland Research 的 Ben Bollin。

Could you share a little bit of what is happening with respect to the cloud infrastructure build-out. Tell us a little bit about what you're doing, where you are in the progress and customer response thus far? And then I had a follow-up on the networking category.

您能否分享一下在雲基礎設施建設方面正在發生的事情。告訴我們一些你在做什麼，到目前為止你的進展和客戶反應是什麼？然後我對網絡類別進行了跟進。

Yes. We continue keeping building of the infrastructure, including the cloud. Also our strategy a little bit different than other players, we tend to build out ourselves just like we -- you can see the investment in some of the real estate. Quite some of that also go to the -- like a data center infrastructure. That give us much better cost and also more long-term benefit just like how we -- the investment made in early real estate kind of benefit or office cost, rental costs. So that's where we're using the cost saving we get from this rental keeping invest into some more long-term infrastructure, real estate. We do see that we're keeping benefit the company a long time. But at the same time, like I said, also partner working with [care] service providers that's other strategy we have managed with some of their infrastructure. So that's also make a win-win both party or benefit or the profit. That's also the strategy we have.

是的。我們繼續建設基礎設施，包括雲。此外，我們的策略與其他參與者略有不同，我們傾向於像我們一樣建立自己——你可以看到對一些房地產的投資。其中相當一部分也用於——比如數據中心基礎設施。這給了我們更好的成本和更多的長期利益，就像我們如何——早期房地產投資的收益或辦公成本、租金成本一樣。因此，這就是我們使用從租金中節省的成本來投資一些更長期的基礎設施和房地產的地方。我們確實看到我們長期保持公司的利益。但與此同時，就像我說的，還與 [護理] 服務提供商合作，這是我們使用他們的一些基礎設施管理的另一種策略。所以這也是雙贏的雙方或利益或利潤。這也是我們的策略。

And within that, Ken, could you speak to is this -- is it purely cost is latency part of the narrative? Is it being closer to your customers? What's the broader strategy within it?

在這方面，Ken，你能不能談談這個——純粹的成本是延遲的一部分嗎？它是否更貼近您的客戶？其中更廣泛的戰略是什麼？

Not just , but also what make it easy to manage -- easy to scale. Even some of the SASE solution, I do believe some bigger customers, they may even do themselves. So if you can integrate a more SASE function to the same OS into the same system. So that's the long-term strategy we have and also working with service providers is very, very important for us.

不僅如此，還有使它易於管理的原因 - 易於擴展。甚至一些SASE解決方案，我相信一些大客戶，他們甚至可能會自己做。所以如果你能把更多的SASE功能集成到同一個OS到同一個系統中。所以這是我們的長期戰略，與服務提供商合作對我們來說非常非常重要。

And then my last one. Ken, what are your thoughts on the traditional campus networking opportunity in the WLAN market. How do you think about wallet share opportunity and the ability to displace more of the incumbent there? That's it for me.

然後是我的最後一個。 Ken，您對 WLAN 市場中的傳統校園網絡機會有何看法。您如何看待錢包份額機會以及取代更多現任者的能力？對我來說就是這樣。

Last kind of the thinking we have like over 20, 30 years, really there's a convergence networking network (inaudible) and network security. I think SD-WAN is one good example. So the Secure SD-WAN solution will be more efficient, more secure, and there's a lot of additional service we can apply to Secure SD-WAN, which is whether offer free or we are not kind of there yet, but same thing for a lot of other WAN technology. And so we feel that's a huge potential. And -- but also doing security in the networking environment not need a huge company in power, which has come from ASIC investment we made, which also will take a long time to see the return of investment. That's what we kind of commit from day 1, back [23] years ago. So when we start (inaudible) we really need to invest and planning all these kind of long-term convergence of networking or security together.

過去 20 年、30 年來我們的最後一種想法是，確實存在融合網絡（聽不清）和網絡安全。我認為 SD-WAN 是一個很好的例子。因此，Secure SD-WAN 解決方案將更高效、更安全，並且我們可以將許多附加服務應用於 Secure SD-WAN，無論是免費提供還是我們還沒有提供，但對於一個許多其他 WAN 技術。所以我們認為這是一個巨大的潛力。而且——而且在網絡環境中做安全性不需要一家強大的公司，這來自我們所做的 ASIC 投資，這也需要很長時間才能看到投資回報。這就是我們從 [23] 年前的第一天起就做出的承諾。因此，當我們開始（聽不清）時，我們確實需要投資和規劃所有這些網絡或安全的長期融合。

So the new ASIC chip is 1 example is the fifth generation of SOC chip, which also including some of the investments we made in the ninth generation of our content process and seven-generation networks together with a lot of multiple CPU. So we continue to develop technology and eventually will be deployed more broadly beyond the traditional network security.

因此，新的 ASIC 芯片是 1 個示例，是第五代 SOC 芯片，其中還包括我們在第九代內容過程和第七代網絡中所做的一些投資以及許多多 CPU。因此我們不斷開發技術並最終將在傳統網絡安全之外更廣泛地部署。

Thank you. I'd like to turn the call back over to Peter Salkowski for any closing remarks.

謝謝。我想將電話轉回給 Peter Salkowski 以聽取任何結束語。

Thank you, Valerie. I'd like to thank everyone for joining today's call. Fortinet will be attending investor conferences hosted by Baird and Morgan Stanley during the first quarter. A fireside chat webcast link will be posted on the Events & Presentations section of Fortinet's Investor Relations website for the Morgan Stanley conference. If you have any follow-up questions, please feel free to contact me. Have a great rest of your day. Thank you.

謝謝你，瓦萊麗。我要感謝大家參加今天的電話會議。 Fortinet 將在第一季度參加由 Baird 和 Morgan Stanley 主辦的投資者會議。 Fortinet 投資者關係網站的摩根士丹利會議的活動和演示部分將發布爐邊聊天網絡廣播鏈接。如果您有任何後續問題，請隨時與我聯繫。祝您度過愉快的一天。謝謝。

Thank you. Ladies and gentlemen, this does conclude today's conference. Thank you all for participating. You may now disconnect. Have a great day.

謝謝。女士們，先生們，今天的會議到此結束。謝謝大家的參與。您現在可以斷開連接。祝你有美好的一天。