Fortinet Inc (FTNT) 2023 Q1 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Fortinet's First Quarter 2023 Earnings Announcement Conference Call. (Operator Instructions)

美好的一天，謝謝你的支持。歡迎參加 Fortinet 2023 年第一季度收益公告電話會議。 （操作員說明）

Please be advised that today's conference is being recorded.

請注意，今天的會議正在錄製中。

I would now turn the conference over to Mr. Peter Salkowsk. Go ahead.

我現在將會議轉交給 Peter Salkowsk 先生。前進。

Thank you, Chris. 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 first quarter of 2023.

謝謝你，克里斯。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 2023 年第一季度的財務業績。

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 the call today, providing a high-level perspective on our business. Keith will then review our financial and operating results for the first quarter of 2023 before providing guidance for the second quarter of 2023 and updating 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 將於今天開始通話，提供有關我們業務的高層次視角。然後，基思將審查我們 2023 年第一季度的財務和運營結果，然後提供 2023 年第二季度的指導並更新全年。然後我們將打開問題電話。

During the Q&A session, we do ask that you please limit yourself to one question and one follow-up question to allow others to participate. 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.

在問答環節中，我們確實要求您將自己限制在一個問題和一個後續問題上，以允許其他人參與。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，這些前瞻性陳述受風險和不確定因素的影響，可能導致實際結果與預期結果大相徑庭。

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. Also, all references to financial metrics that we make today are non-GAAP unless stated otherwise.

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。此外，除非另有說明，否則我們今天對財務指標的所有引用都是非 GAAP。

Our GAAP results and GAAP to non-GAAP reconciliations are located in our earnings press release and in the presentation that accompanies 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 today's call. Lastly, all references to growth are on a year-over-year basis, unless noted otherwise.

我們的 GAAP 結果和 GAAP 與非 GAAP 調節表位於我們的收益新聞稿和今天的評論附帶的演示文稿中，兩者都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今天的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。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'll now turn the call over to Ken.

我現在將電話轉給 Ken。

Thanks, Peter, and thank you to everyone for joining today's call to review our outstanding first quarter 2023 results. For the first quarter, revenue growth was 32% due to strong growth in both product and service revenue. With 35% product revenue growth, we continue to gain market share while being a leading product revenue company in the cybersecurity industry. This strong product revenue growth will help drive future service revenue growth.

謝謝彼得，感謝大家參加今天的電話會議，回顧我們 2023 年第一季度的出色業績。第一季度，由於產品和服務收入的強勁增長，收入增長了 32%。隨著 35% 的產品收入增長，我們繼續獲得市場份額，同時成為網絡安全行業領先的產品收入公司。這種強勁的產品收入增長將有助於推動未來服務收入的增長。

Quarterly service revenue grew over 30% for the first time in 6 years. We believe we have a significant opportunity to upsell value-added secured service to a large installed base. In the first quarter, SD-WAN and OT bookings together continued to account for over 25% of total bookings, and our goal is to become the #1 in network firewall, secure SD-WAN and OT security market over the next couple of years.

季度服務收入 6 年來首次增長超過 30%。我們相信，我們有很大的機會向大型安裝基礎追加銷售增值安全服務。第一季度，SD-WAN 和 OT 預訂量繼續佔總預訂量的 25% 以上，我們的目標是在未來幾年內成為網絡防火牆、安全 SD-WAN 和 OT 安全市場的第一名.

Fortinet is leading the trend of network and security convergence and cybersecurity consolidation. Gartner expects that by the year 2030, the secure networking market will be larger than traditional networking. Traditional networking lacks awareness and control of content, applications, users, device and location and is still using the same network protocol that was developed 50 years ago.

Fortinet 引領著網絡和安全融合以及網絡安全整合的趨勢。 Gartner 預計，到 2030 年，安全網絡市場的規模將超過傳統網絡。傳統網絡缺乏對內容、應用程序、用戶、設備和位置的感知和控制，並且仍在使用 50 年前開發的相同網絡協議。

Fortinet secure networking solution has expanded from next-gen firewall to SD-WAN, SD-Branch, 5G, Internal Segmentation, ZTNA and Universal SASE. And we believe the secure networking market can achieve double-digit growth annually for the foreseeable future. In today's environment, organization are looking to consolidate their multiple security vendors and functions that are deployed across the expanding attack service to lower their total cost of ownership and management costs, while improving visibility and automating real-time threat detection and response.

Fortinet 安全網絡解決方案已從下一代防火牆擴展到 SD-WAN、SD-Branch、5G、內部分段、ZTNA 和 Universal SASE。我們相信，在可預見的未來，安全網絡市場每年可以實現兩位數的增長。在當今的環境中，組織正在尋求整合他們部署在不斷擴展的攻擊服務中的多個安全供應商和功能，以降低他們的總擁有成本和管理成本，同時提高可見性和自動化實時威脅檢測和響應。

Fortinet latest release of FortiOS 7.4 together with the FortiSP5 ASIC leads the industry in better integration and automation as well as a faster acceleration while lower total cost ownership. FortiOS enable automation to deploy the Fortinet Security Fabric to every edge allowing security to dynamically scale and adapt as network evolves.

Fortinet 最新發布的 FortiOS 7.4 與 FortiSP5 ASIC 在更好的集成和自動化以及更快的加速和更低的總擁有成本方面引領行業。 FortiOS 支持自動化將 Fortinet Security Fabric 部署到每個邊緣，允許安全性隨著網絡的發展而動態擴展和適應。

Last month, we announced Universal SASE, which is supporting hybrid infrastructure and enable the same networking and security features that are available in our plants to be delivered as a service all within a single console. Many of our service provider partners are collaborating with us on these offerings.

上個月，我們發布了 Universal SASE，它支持混合基礎架構，並支持將我們工廠中可用的相同網絡和安全功能作為一項服務在單個控制台中交付。我們的許多服務提供商合作夥伴都在與我們合作提供這些產品。

Also, we announced an enhancement to several of our Fortinet Security Fabric solutions including end point security, cloud security, SOC and SOAR. As networking and security continue to converge and customers looking to consolidate vendors and [core] product, we believe we are well positioned to achieve our 2025 building target of $10 billion while generating an annual non-GAAP operating margin of at least 25% for each of the next 3 years. Before turning the call over to Keith, I would like to thank our employees, customers, partners, suppliers worldwide for their continued support and hard work. Keith?

此外，我們還宣布增強我們的幾個 Fortinet Security Fabric 解決方案，包括端點安全、雲安全、SOC 和 SOAR。隨著網絡和安全不斷融合，客戶希望整合供應商和[核心]產品，我們相信我們有能力實現我們 2025 年 100 億美元的建設目標，同時為每個公司產生至少 25% 的年度非 GAAP 營業利潤率未來 3 年。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。基思？

Thank you, Ken, and good afternoon, everyone. Let's start with the key highlights from our strong first quarter performance. Our strong first quarter results reflect a continued demand for our broad portfolio of cybersecurity and networking solutions and the demand for consolidation and convergence that is delivered by our integrated single-platform strategy. Total revenue growth of 32% was led by strong product revenue growth and service revenue growth accelerating to over 30%.

謝謝你，肯，大家下午好。讓我們從第一季度強勁表現的主要亮點開始。我們強勁的第一季度業績反映了對我們廣泛的網絡安全和網絡解決方案組合的持續需求，以及對我們集成的單一平台戰略所提供的整合和融合的需求。產品收入增長強勁，服務收入增長加速至 30% 以上，帶動總收入增長 32%。

Billings increased 30%, our eighth consecutive quarter of at least 30% billings growth. Secure SD-WAN and OT bookings once again accounted for over 25% of total bookings. Our strong top line results reflect continued customer demand across both core and enhanced platform technologies, and highlights the diversification of our business model by solutions, geographies, customer segments and industry verticals. We continue to deliver balanced growth and profitability with better-than-industry average top line growth and strong profitability despite the continued economic uncertainty.

比林斯增長了 30%，我們連續第八個季度至少增長了 30%。安全 SD-WAN 和 OT 預訂再次佔總預訂的 25% 以上。我們強勁的營收結果反映了客戶對核心和增強平台技術的持續需求，並突出了我們業務模式在解決方案、地域、客戶群和垂直行業方面的多元化。儘管經濟持續存在不確定性，但我們繼續實現平衡的增長和盈利能力，高於行業平均的收入增長和強勁的盈利能力。

The first quarter operating margin of 26.5% represents the highest first quarter operating margin in our 14-year history as a publicly-traded company. Free cash flow of $647 million, representing a margin of 51% is up 23 percentage points. Both the quarterly free cash flow and free cash flow margin are Fortinet post-IPO records. Last month, we hosted nearly 3,000 customers and partners at our very successful Accelerate conference.

第一季度 26.5% 的營業利潤率是我們作為上市公司 14 年曆史上最高的第一季度營業利潤率。自由現金流為 6.47 億美元，利潤率為 51%，上升了 23 個百分點。季度自由現金流和自由現金流利潤率都是 Fortinet IPO 後的記錄。上個月，我們在非常成功的 Accelerate 會議上接待了近 3,000 名客戶和合作夥伴。

I'd like to recap 3 key themes: one, the expanding firewall deployment environment, two convergence and three consolidation. So starting for us today's rapidly evolving threat landscape and connectivity demands a comprehensive approach to firewalls and network security, including a combination of hardware, virtualized software and security services.

我想回顧一下 3 個關鍵主題：一是不斷擴展的防火牆部署環境，二是融合，三是整合。因此，對於我們來說，當今快速發展的威脅形勢和連接性需要一種全面的防火牆和網絡安全方法，包括硬件、虛擬化軟件和安全服務的組合。

In fact, Gartner anticipates that by 2026, more than 60% of organizations will have more than one type of firewall deployment, which will prompt adoption of hybrid mesh firewalls. Fortinet is well positioned to capitalize on this expansion of firewall deployments and form factors as we've been delivering hybrid mesh firewalls for years on a single operating system; second, the company was founded 20 years ago on the belief that the convergence of security and networking will become an industry standard. Gartner shares this belief, noting they expect the size of secured networking market to overtake the traditional networking market by 2030.

事實上，Gartner 預計到 2026 年，超過 60% 的組織將部署不止一種類型的防火牆，這將促使採用混合網狀防火牆。 Fortinet 有能力利用這種防火牆部署和形式因素的擴展，因為我們多年來一直在單一操作系統上提供混合網狀防火牆；其次，公司成立於 20 年前，堅信安全和網絡的融合將成為行業標準。 Gartner 認同這一觀點，並指出他們預計到 2030 年安全網絡市場的規模將超過傳統網絡市場。

We believe secured networking at scale works most effectively on ASIC technology. Since its inception, Fortinet has been deploying -- developing proprietary ASIC technologies to build application-specific solutions to support convergence that traditional CPU-based solutions are less efficient at supporting both networking and security; third, vendor and product functionality consolidation strategies continue to become more commonplace.

我們相信大規模的安全網絡在 ASIC 技術上最有效。自成立以來，Fortinet 一直在部署——開發專有 ASIC 技術來構建特定於應用程序的解決方案，以支持傳統基於 CPU 的解決方案在支持網絡和安全方面效率較低的融合；第三，供應商和產品功能整合策略繼續變得更加普遍。

Looking to Gartner here again, they note 75% of organizations are pursuing a cybersecurity vendor consolidation strategy in 2022, up from 29% in 2020. Our integrated FortiOS platform allows customers to converge networking functionality with security capabilities while consolidating cybersecurity products and functionality with FortiASIC significant computing power advantage, FortiOS can consolidate more security functions and solutions while maintaining our performance and cost advantage.

再次關注 Gartner，他們指出 75% 的組織正在尋求 2022 年的網絡安全供應商整合戰略，高於 2020 年的 29%。我們的集成 FortiOS 平台允許客戶將網絡功能與安全功能融合在一起，同時通過 FortiASIC 整合網絡安全產品和功能顯著的計算能力優勢，FortiOS 可以整合更多的安全功能和解決方案，同時保持我們的性能和成本優勢。

Specifically, FortiOS supports many security applications including network firewall, SD-WAN, SASE, 5G, WiFi security, ZTNA, VPN and SSL, with a variety of use cases for each security application. For example, firewall use cases include data center, branches, edges, virtual, cloud native, micro segmentation, both east-west and north-south and Firewall-as-a-Service. Our convergence and consolidation strategy provides security across our customers' entire digital infrastructure while lowering their operating costs.

具體來說，FortiOS 支持許多安全應用程序，包括網絡防火牆、SD-WAN、SASE、5G、WiFi 安全、ZTNA、VPN 和 SSL，每個安全應用程序都有各種用例。例如，防火牆用例包括數據中心、分支機構、邊緣、虛擬、雲原生、微分段、東西向和南北向以及防火牆即服務。我們的融合和整合戰略為客戶的整個數字基礎設施提供安全保障，同時降低他們的運營成本。

Now let's take a closer look at the first quarter. Billings grew 30% to $1.5 billion, driven by enhanced platform technology solutions. In terms of industry verticals, government and financial services topped the list as a percentage of total billings, with financial services up over 40%.

現在讓我們仔細看看第一季度。在增強的平台技術解決方案的推動下，比林斯增長了 30%，達到 15 億美元。就垂直行業而言，政府和金融服務佔總賬單的百分比位居榜首，其中金融服務增長超過 40%。

Construction, media and utilities were all up at least 50%. Billings growth benefited from better-than-expected backlog contribution. While the backlog cancellation rate increased quarter-over-quarter, it was lower than we had forecasted in our model. We continue to believe there's an elevated cancellation risk in future periods for networking equipment backlog. Bookings grew double digits in the quarter, off a challenging comparison to 50% growth in the first quarter of last year.

建築、媒體和公用事業均上漲至少 50%。比林斯的增長得益於好於預期的積壓貢獻。雖然積壓訂單取消率環比上升，但低於我們在模型中的預測。我們仍然認為，在未來一段時間內，網絡設備積壓的取消風險會增加。本季度的預訂量增長了兩位數，與去年第一季度 50% 的增長相比具有挑戰性。

We continue to see success with our strategy to expand further into the large enterprise segment with a number of deals over $1 million, increasing 38% to 124 deals and billings on these deals increasing 50%. One of these deals was an 8-figure expansion and upsell opportunity at a Fortune 50 retailer. The retailer was looking to replace their firewall point solutions with a more holistic cybersecurity solution. After purchasing FortiManager and FortiAnalyzer in the fourth quarter of last year, this customer selected 48 VMs for a very competitive (technical difficulty) a very competitive process for their 2,000 store locations as part of our new FortiFlex program.

我們繼續看到我們的戰略取得成功，進一步擴展到大型企業領域，交易數量超過 100 萬美元，增加 38% 至 124 筆交易，這些交易的賬單增加了 50%。其中一項交易是一家財富 50 強零售商的 8 位數擴張和追加銷售機會。該零售商希望用更全面的網絡安全解決方案取代他們的防火牆點解決方案。在去年第四季度購買了 FortiManager 和 FortiAnalyzer 之後，該客戶選擇了 48 台 VM，作為我們新的 FortiFlex 計劃的一部分，為他們的 2,000 個商店位置提供了一個非常有競爭力（技術難度）的過程。

FortiFlex is a new points-based consumption program supporting hybrid mesh firewall deployments as well as a variety of other security solutions. The customer selected Fortinet due to the substantial value offered by our unified platform, and their significant technical requirements. In the first quarter, we added approximately 6,100 new logos, reflecting the support of our channel partners to their investments and the investments we've made in them. Average contract term was flat year-over-year at 27 months and down 1 month quarter-over-quarter.

FortiFlex 是一種新的基於積分的消費計劃，支持混合網狀防火牆部署以及各種其他安全解決方案。客戶選擇 Fortinet 是因為我們的統一平台提供的巨大價值以及他們的重要技術要求。第一季度，我們添加了大約 6,100 個新徽標，反映了我們的渠道合作夥伴對其投資的支持以及我們對他們的投資。平均合同期限為 27 個月，同比持平，環比下降 1 個月。

Turning now to revenue. Total revenue grew 32% to $1.26 billion driven by strong demand for core and enhanced platform technologies, increasing 23% and 50%, respectively. Product revenue of $501 million increased 35% despite the very difficult comparison to last year's first quarter at 54%, with its very strong contribution from acquisitions.

現在轉向收入。受對核心和增強平台技術的強勁需求推動，總收入增長 32% 至 12.6 億美元，分別增長 23% 和 50%。產品收入為 5.01 億美元，儘管與去年第一季度的 54% 相比非常困難，但由於收購的貢獻非常大，因此增長了 35%。

Product revenue growth was driven by strong growth in enhanced platform technologies, improving supply chain dynamics and our earlier pricing actions. Service revenue was up over 30% to $762 million, the highest growth rate in Services since 2016. The average number of days between when the customer purchases and subsequently activates a security service contract declined slightly sequentially and remained elevated on a year-over-year basis.

產品收入增長是由增強平台技術的強勁增長、改善供應鏈動態和我們早期的定價行動推動的。服務收入增長 30% 以上，達到 7.62 億美元，是自 2016 年以來服務領域的最高增長率。從客戶購買到隨後激活安全服務合同的平均天數環比略有下降，但同比仍保持較高水平基礎。

Service revenue growth was closely aligned with our short-term deferred revenue growth rate in recent periods. Short-term deferred revenue growth was over 30% for the fourth consecutive quarter. Total gross margin of 76.3% was up 190 basis points, including a 440 basis point increase in product gross margin to 61.8%. Product gross margin benefited from earlier pricing actions, improved discounting and easing cost pressures. Service gross margin of 85.9% picked up 70 basis points as price increases offset increased investments in data centers and points of presence or PoPs.

服務收入增長與我們近期的短期遞延收入增長率密切相關。短期遞延收入連續第四個季度增長超過 30%。總毛利率為 76.3%，上升 190 個基點，其中產品毛利率上升 440 個基點至 61.8%。產品毛利率受益於更早的定價行動、改善的折扣和緩解的成本壓力。 85.9% 的服務毛利率上升了 70 個基點，因為價格上漲抵消了對數據中心和接入點或 PoP 的投資增加。

Operating margin of 26.5% was up 450 basis points due to the strong gross margin performance, of foreign exchange benefit and revenue growth that was 10 points higher than our 22% headcount growth. As previously noted, 26.5% is our highest ever first quarter operating margin as a public company. Looking at the statement of cash flow summarized on Slide 7 and 8. Free cash flow was a quarterly Fortinet record at $647 million and benefited from elevated receivables in the fourth quarter of last year in the subsequent cash collections as well as the record-setting operating margin and the timing of CapEx projects.

由於強勁的毛利率表現、外匯收益和收入增長比我們 22% 的員工增長高 10 個百分點，營業利潤率為 26.5%，上升了 450 個基點。如前所述，26.5% 是我們作為上市公司有史以來最高的第一季度營業利潤率。查看幻燈片 7 和 8 中總結的現金流量表。自由現金流量是 Fortinet 的季度記錄，達到 6.47 億美元，這得益於去年第四季度在隨後的現金回收中增加的應收賬款以及創紀錄的運營保證金和資本支出項目的時間安排。

Adjusted free cash flow, which includes the real estate investments, was $662 million, representing a 52% adjusted free cash margin and our highest margin since our 2009 IPO. We've come to expect some quarterly variances in our free cash flow results with the first quarter often stronger due to the seasonally strong fourth quarter billings. Capital expenditures were $30 million, including $15 million of real estate investments.

包括房地產投資在內的調整後自由現金流為 6.62 億美元，相當於 52% 的調整後自由現金利潤率，是我們自 2009 年首次公開募股以來的最高利潤率。我們已經開始預計我們的自由現金流結果會出現一些季度差異，由於季節性強勁的第四季度賬單，第一季度通常會更強。資本支出為 3000 萬美元，其中包括 1500 萬美元的房地產投資。

This was lower than expected due to the timing of real estate activities. Cash taxes were $21 million. The Board increased the company's share repurchase authorization by $1 billion and the total available share buyback authorization is now $1.5 billion for repurchases through February 2024.

由於房地產活動的時間安排，這低於預期。現金稅為 2100 萬美元。董事會將公司的股票回購授權增加了 10 億美元，目前可用的股票回購授權總額為 15 億美元，可用於到 2024 年 2 月的回購。

Looking forward, we are excited about the growth drivers that we've discussed previously as well as our new single vendor, Universal SASE offering. Our Universal SASE offering delivers a comprehensive solution that extends the convergence of networking and security from the edge to remote users, while helping teams drive operational efficiency and reducing complexity and costs by consolidating vendors.

展望未來，我們對之前討論過的增長動力以及我們新的單一供應商 Universal SASE 產品感到興奮。我們的 Universal SASE 產品提供了一個全面的解決方案，將網絡和安全的融合從邊緣擴展到遠程用戶，同時通過整合供應商幫助團隊提高運營效率並降低複雜性和成本。

In fact Gartner predicts that by 2025, 1/3 of new SASE deployments will be based on a single vendor SASE offering, up from 10% in 2022. As we bring Universal SASE to market, we expect to make various investments, including increasing our PoPs. Our guidance reflects the impact of these investments to both our gross margin and capital expenditure estimates. Moving to guidance. I'd like to review our outlook for the second quarter and full year summarized on Slides 10 and 11, which is subject to the disclaimers regarding forward-looking information that Peter provided at the beginning of the call.

事實上，Gartner 預測，到 2025 年，1/3 的新 SASE 部署將基於單一供應商 SASE 產品，高於 2022 年的 10%。隨著我們將 Universal SASE 推向市場，我們期望進行各種投資，包括增加我們的持久性有機污染物。我們的指引反映了這些投資對我們的毛利率和資本支出估計的影響。轉向指導。我想回顧一下我們在幻燈片 10 和 11 上總結的第二季度和全年的展望，這些展望受彼得在電話會議開始時提供的前瞻性信息的免責聲明約束。

For the second quarter, we expect billings in the range of $1.560 billion to $1.600 billion, which at the midpoint represents growth of 21%. Revenue in the range of $1.280 billion to $1.320 billion, which at the midpoint represents growth of 26%. Non-GAAP gross margin of 75.5% to 76.5%. Non-GAAP operating margin of 24.5% to 25.5%, non-GAAP earnings per share of $0.33 to $0.35, which assumes a share count of between 790 million and 800 million.

對於第二季度，我們預計賬單在 15.6 億美元至 16.00 億美元之間，中點代表增長 21%。收入在 12.8 億美元至 13.2 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 75.5% 至 76.5%。非 GAAP 營業利潤率為 24.5% 至 25.5%，非 GAAP 每股收益為 0.33 美元至 0.35 美元，假設股票數量在 7.9 億至 8 億股之間。

Capital expenditures of $80 million to $110 million, a non-GAAP tax rate of 17%. Cash taxes of $35 million, which is lower than our prior expectation as the deadline for certain tax payments has been extended to the fourth quarter.

資本支出為 8000 萬至 1.1 億美元，非 GAAP 稅率為 17%。現金稅為 3500 萬美元，低於我們之前的預期，因為某些稅款的繳納期限已延長至第四季度。

The second quarter guidance assumes backlog decreases during the quarter. For the full year, we expect billings in the range of $6.750 billion to $6.810 billion, which at the midpoint represents growth of 21%. This guidance assumes a low single-digit impact of billings growth from backlog. Revenue in the range of $5.425 billion to $5.485 billion, which the midpoint represents growth of 23.5%. Service revenue, the rate of $3.370 billion, to $3.400 billion, which at the midpoint represents growth of 28%. The service revenue guidance implies product revenue growth of 16%.

第二季度指南假設本季度積壓訂單減少。對於全年，我們預計賬單在 67.5 億美元至 68.1 億美元之間，中點代表增長 21%。本指南假設積壓導致的賬單增長產生低個位數的影響。收入在 54.25 億美元至 54.85 億美元之間，中點代表增長 23.5%。服務收入從 33.7 億美元增至 34.00 億美元，中間值代表增長 28%。服務收入指引意味著產品收入增長 16%。

Non-GAAP gross margin is 75% to 76%. Non-GAAP operating margin of 25% to 26%, non-GAAP earnings per share of $1.44 to $1.48, which assumes a share count of between 795 million and 805 million. Capital expenditures of $400 million to $450 million due to the continued cloud data center and facilities investments. Non-GAAP tax rate of 17%, cash taxes of $390 million with approximately $300 million in the fourth quarter.

非 GAAP 毛利率為 75% 至 76%。非 GAAP 營業利潤率為 25% 至 26%，非 GAAP 每股收益為 1.44 美元至 1.48 美元，假設股票數量在 7.95 億至 8.05 億股之間。由於持續的雲數據中心和設施投資，資本支出為 4 億至 4.5 億美元。非美國通用會計準則稅率為 17%，現金稅為 3.9 億美元，第四季度約為 3 億美元。

The full year estimates assume backlog returns to historical levels later this year. As we wrap up the prepared remarks, maybe one additional observation. Over many years, the Fortinet team and its partners has offered very solid and consistent level execution across a wide range of economic cycles and other challenges. Like many others, we see a level of economic uncertainty in front of us, and we look forward to this possible challenge in delivering on our goals. I'll now hand the call back over to Peter to begin the Q&A.

全年估計假設積壓訂單在今年晚些時候恢復到歷史水平。當我們總結準備好的評論時，也許還有一個額外的觀察。多年來，Fortinet 團隊及其合作夥伴在各種經濟周期和其他挑戰中提供了非常穩固和一致的水平執行。與許多其他人一樣，我們看到了一定程度的經濟不確定性，我們期待著在實現目標的過程中迎接這一可能的挑戰。我現在將電話轉回給彼得開始問答。

(Operator Instructions) Chris, please open the call for questions.

（操作員說明）克里斯，請打開電話提問。

(Operator Instructions)

（操作員說明）

Our first question comes from Brian Essex from JPMorgan.

我們的第一個問題來自摩根大通的 Brian Essex。

Congrats on a nice quarter, particularly in a tough macro. Maybe, Keith, for you. Nice acceleration in services revenue this quarter. And I know Ken talked about more effectively selling or some value-added services -- secure services into your installed base. How much was due to the better attach rate of secure services versus changes in registration policy or pricing increases in the quarter?

祝賀一個不錯的季度，尤其是在艱難的宏觀環境中。也許，基思，適合你。本季度服務收入加速增長。我知道 Ken 談到了更有效地銷售或一些增值服務——將服務安全地納入您的安裝基礎。與本季度註冊政策的變化或價格上漲相比，安全服務的附加率更高有多少？

Yes. When we -- great question, Brian. And I think when we peel back the onion, looked back, we saw in FortiGuard, which was the security services part of the business. And you'll see this in our SEC filings next week. Growth was 35% for FortiGuard. So we started looking more deeply at that. And to Ken's point, what we saw there were areas like SaaS products and offerings that are attached to existing customers, certain cloud offerings, what we call pay as you go, if you will, were attached to it as well.

是的。當我們 - 很好的問題，布賴恩。我認為，當我們剝開洋蔥，回頭看時，我們看到了 FortiGuard，它是業務的安全服務部分。你會在下周向美國證券交易委員會提交的文件中看到這一點。 FortiGuard 的增長率為 35%。所以我們開始更深入地研究它。就 Ken 的觀點而言，我們看到有一些領域，如 SaaS 產品和附加到現有客戶的產品，某些雲產品，我們稱之為隨用隨付，如果你願意的話，也附加到它。

And I would describe those as being a significant driver to the growth. I think the price benefits will probably take the #2 slot. And then the #3 slot would be some changes in the registration behavior. By that, I mean, customers did register a little bit faster in the first quarter. But that lag -- that registration policy change that we implemented in the first quarter, that was a specific call out is not really having an impact in the first quarter, nor did we really expect one. So kind of in order, I think it was selling into the installed base, price increases and then some wide improvements in the registration behavior.

我會將這些描述為增長的重要驅動力。我認為價格優勢可能會佔據第二位。然後#3 插槽將是註冊行為的一些更改。也就是說，我的意思是，客戶在第一季度的註冊速度確實快了一點。但是這種滯後——我們在第一季度實施的註冊政策變化，這是一個具體的呼籲，並沒有在第一季度真正產生影響，我們也沒有真正期望會有影響。所以有點有序，我認為它是銷售到已安裝的基礎上，價格上漲，然後是註冊行為的一些廣泛改進。

Yes. Also with the new (inaudible) we started launching, and we started to have a more function, which can also enable much more unused service going forward for both the current customer installation base and also for new customers.

是的。此外，隨著我們開始推出新的（聽不清），我們開始擁有更多功能，這也可以為當前的客戶安裝基礎和新客戶提供更多未使用的服務。

Got it. That's helpful. And maybe as a follow-up, Keith, I think you commented on lower-than-expected cancellation rate. I know the question will be asked, impact on billings from backlog [trend]? And what some of your assumptions are, particularly given what you see in macro? I know you talked about you expect to be at normalized rates for backlog by the end of the year, but maybe if you can contextualize or quantify that to the extent that you're able to.

知道了。這很有幫助。也許作為後續行動，基思，我想你評論過低於預期的取消率。我知道有人會問這個問題，積壓[趨勢]對賬單的影響？你的一些假設是什麼，特別是考慮到你在宏觀上看到的情況？我知道你談到你希望在年底前達到標準化的積壓率，但也許如果你能在你能夠做到的範圍內對其進行背景化或量化。

Yes. I think in the guidance, particularly as we look at the full year, it's kind of difficult to figure out exactly which quarter some of that backlog is going to end up in or be canceled. But for the full year, I think we talked about low single-digits growth that would be coming from the backlog. I do think that the risk of cancellations increases as the year progresses. And by that, I mean if a customer has only been in backlog for a week or a month or something like that, they're seeing somewhat less probability that they're going to cancel. But the longer it takes to deliver on that backlog. I think the cancellation risk continues to increase.

是的。我認為在指導中，特別是當我們看全年時，很難準確地弄清楚哪些積壓的訂單將在哪個季度結束或被取消。但對於全年，我認為我們討論了積壓將帶來的低個位數增長。我確實認為取消的風險隨著時間的推移而增加。而且，我的意思是，如果客戶只積壓了一周或一個月或類似的時間，他們看到他們取消的可能性就會降低。但是交付積壓訂單所需的時間越長。我認為取消風險繼續增加。

Also a point is (inaudible), mentioned go by normal end of the year, we see later this year, it could be a middle could be towards the end. But in Q1, I say, the operations team did a great job to reduce the backlog, which also helping secure more customers and lower some cancellation rate.

還有一點是（聽不清），提到在今年晚些時候正常結束，我們會在今年晚些時候看到，它可能是一個中間可能是接近年底。但我說，在第一季度，運營團隊在減少積壓方面做得很好，這也有助於確保更多客戶並降低一些取消率。

This question comes from the line of Gabriela Borges with Goldman Sachs.

這個問題來自 Gabriela Borges 與 Goldman Sachs 的合作。

I have for Ken or for Keith. It's a follow-up question on for costing, which is we've heard so much noise in the industry around supply chain and cover catalyst product cycles. How do you all think about true demand and potentially plan around the risk of demand going faster than expected, given you've had a very strong couple of years?

我代表 Ken 或 Keith。這是關於成本核算的後續問題，這是我們在供應鍊和涵蓋催化劑產品週期方面聽到的行業內如此多的聲音。考慮到你們已經度過了非常強勁的幾年，你們如何看待真實需求並可能圍繞需求增長快於預期的風險進行計劃？

I think probably some of that more refer to the traditional network security, secure some deployment enterprise. But we do see that our solution has a much broader use case. And also expand to much bigger market opportunities in the traditional enterprise firewall and also the SD-WAN OT, it's also see strong growth continue to helping drive both the new customers and also expanding the current existing customer.

我認為其中一些更多的是指傳統的網絡安全，保護一些部署企業。但我們確實看到我們的解決方案有更廣泛的用例。並且還在傳統企業防火牆和 SD-WAN OT 中擴展到更大的市場機會，它也看到強勁的增長繼續幫助推動新客戶並擴大當前的現有客戶。

Also in the SMB space, it's relatively greenfield. We also see pretty healthy, faster growth, probably even faster than the traditional enterprise, which is more replacement. I think all this actually contributing to a pretty healthy keep on saying double-digit growth in the future for the whole wholesale network security space.

同樣在 SMB 領域，它是相對未開發的。我們還看到了相當健康、更快的增長，甚至可能比傳統企業更快，後者更具替代性。我認為所有這些實際上都有助於整個批發網絡安全領域在未來保持兩位數的增長。

Yes. That makes sense. And Ken, the follow-up is for you, which is as we start to execute more on the convergence of selling into the networking budget or the convergence of networking plus security, when you look at the classic networking competitors, how do you think about the barrier or the limitation for classic networking vendors to get more into security and become more competitive in the convergence over time.

是的。這就說得通了。肯，接下來是給你的，隨著我們開始更多地執行網絡預算的融合或網絡與安全的融合，當你看到經典的網絡競爭對手時，你如何看待隨著時間的推移，傳統網絡供應商更多地進入安全領域並在融合中變得更具競爭力的障礙或限制。

I have to say from the product architecture, it's very different because security needs much more complete power and to handle a lot of unstructured data, which the traditional networking company, probably more based on some structured data, handle some fixed next protocol, and much less computing power needed to process data compared to the network security. So that's where -- and also, we would have to implement function and the new function come up every year in the software first and then keeping enhancing improving performance, leverage ASIC -- that's also we don't see networking company doing some of that.

我不得不說，從產品架構來看，這是非常不同的，因為安全性需要更完整的功能並處理大量非結構化數據，而傳統網絡公司可能更多地基於一些結構化數據，處理一些固定的下一個協議，等等與網絡安全相比，處理數據所需的計算能力更少。所以這就是 - 而且，我們必須首先在軟件中實現功能和新功能，然後不斷提高性能，利用 ASIC - 我們也沒有看到網絡公司這樣做.

They probably a little bit slow on where to come up a new function for the security space, all kind of have a different architecture to really supporting the secure computing needed for network security. So that's -- so far, we have not seen the traditional networking company really come close. They did some acquisition, but so far, I don't see the really come up too much since to meet new demand from customers, both on the function and also on the service on the infrastructure change.

他們可能在為安全空間提出新功能的地方有點慢，它們都有不同的架構來真正支持網絡安全所需的安全計算。這就是 - 到目前為止，我們還沒有看到傳統網絡公司真正接近。他們進行了一些收購，但到目前為止，我認為自從滿足客戶的新需求以來，無論是在功能上還是在基礎設施變化的服務上，我都沒有真正看到太多。

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

下一個問題來自花旗銀行的 Fatima Boolani。

Ken, just a technology vision question for you. You are very -- and the team is very bullish on the SASE opportunity. That was very apparent at the Accelerate conference as well. But I'm curious as to why you're taking the effort to build out data centers and points of presence to deliver your Universal SASE strategy versus maybe some of your peers and competitors who are maybe relying on third-party providers hyperscalers? And then I have a quick follow-up for Keith, please.

肯，只是一個技術願景問題。你非常 - 團隊非常看好 SASE 機會。這在 Accelerate 會議上也很明顯。但我很好奇，為什麼您要努力構建數據中心和存在點來提供您的 Universal SASE 戰略，而您的一些同行和競爭對手可能依賴第三方提供商超大規模？然後我有一個關於基思的快速跟進，請。

First of all, SASE, kind of version is a little bit different than some of our competitors. We do believe need to be universal, need to be more broadly deployed and also more leverage. A lot of service provider infrastructure is kind of a hybrid environment instead of a cloud-only SASE solution. And we do keep expanding some of our part because there's -- definitely, there's some user like whether depending on work from home or some other cloud -- SASE to secure some of their traffic here.

首先，SASE，其版本與我們的一些競爭對手略有不同。我們確實認為需要具有普遍性，需要更廣泛的部署以及更多的影響力。許多服務提供商基礎設施是一種混合環境，而不是純雲 SASE 解決方案。我們確實在不斷擴展我們的部分內容，因為有——當然，有些用戶喜歡依賴在家工作還是其他雲——SASE 來保護他們在這裡的一些流量。

But on the other side, there's a huge base of customer need to use SASE or kind of service model, (inaudible) service provider all their current infrastructure and even on-site appliance. And so that's where a certain point, we also see our FortiSwitch and FortiAPs kind of hardware agent helping for the traffic for the FortiGate to process all these SASE traffic there.

但另一方面，有大量客戶需要使用 SASE 或某種服務模型，（聽不清）服務提供商提供他們所有當前的基礎設施甚至現場設備。所以這就是某個點，我們也看到我們的 FortiSwitch 和 FortiAPs 類硬件代理幫助 FortiGate 處理那裡的所有這些 SASE 流量。

So that's where -- that's the reason we kind of put SASE in a single OS, both on the networking side function like SD-WAN, 5G or other past security like a (inaudible), all these firewall service all these things. So that's where we have a more integrated, more broadly distributed and leverage whatever the hybrid infrastructure SASE solution there. That's also the reason we continue to build some of the PoP.

這就是我們將 SASE 放在單個操作系統中的原因，無論是在網絡方面的功能，如 SD-WAN、5G 還是其他過去的安全性，如（聽不清），所有這些防火牆都為所有這些東西提供服務。因此，這就是我們擁有更集成、更廣泛分佈並利用那裡的任何混合基礎架構 SASE 解決方案的地方。這也是我們繼續構建一些 PoP 的原因。

It's a little bit different than some other very certain cloud providers because we do see the cloud provider potentially also can be the service provider to offer SASE. And also from the (inaudible) point of view, even have a little bit more investment from the beginning to build some PoP ourselves. But long term will be more profit model. So we have a better margin -- so it will take some time to make sure we build a healthy ecosystem, both with our partner and also with the investment for long-term benefit.

它與其他一些非常確定的雲提供商有點不同，因為我們確實看到雲提供商也可能是提供 SASE 的服務提供商。而且從（聽不清）的角度來看，甚至從一開始就需要更多的投資來自己構建一些 PoP。但長期來看會是更多的盈利模式。所以我們有更好的利潤——所以需要一些時間來確保我們與我們的合作夥伴以及為長期利益而進行的投資建立一個健康的生態系統。

I appreciate that detail, Ken. Keith, just quickly for you, kind of a tactical question on the billings outlook. You're raising the full year by less than half the beat and a raise when I think about the first half. And so maybe from a bottom-up perspective, can you walk us through what sort of underpinning that conservatism. I can appreciate the macro is jittery, but if you can kind of give us some more tangible considerations you're thinking about in terms of a bottom-up perspective on getting to that billings guide for the full year.

我很欣賞這個細節，肯。基思，快點回答你，這是一個關於賬單前景的戰術問題。當我想到上半年時，你將全年提高了不到一半的節拍和加薪。因此，也許從自下而上的角度來看，您能否向我們介紹一下這種保守主義的支撐方式。我可以理解宏觀是緊張的，但如果你能給我們一些更具體的考慮，你正在考慮從自下而上的角度來獲得全年的賬單指南。

Yes. I would say one just kind of as a general thought, I think raising it to some extent, I think, probably gives you a little bit of a of a message that we feel good about our strategy and the execution that level that we can bring to the market. But more specifically and more tactically, as we look through -- look to the second half of the year, there's probably a little more rigor and effort, if you will, in trying to look at what we see coming in the second half of the year. And I would give you that probably the 2 headlines that we're looking at.

是的。我想說的只是一種一般性的想法，我認為將其提高到某種程度，我認為，可能會給你一點信息，即我們對我們的戰略和我們可以帶來的執行水平感到滿意去市場。但更具體和更具策略性的是，當我們回顧時 - 展望今年下半年，如果你願意的話，可能會更加嚴謹和努力，試圖看看我們在下半年看到的情況年。我會給你這可能是我們正在看的 2 個頭條新聞。

One is we're still very, very pleased with the pipeline. And the pipeline continues to -- continues to be well above anything that we're talking about growth rates for the company for the full year. But I think the nuance that -- maybe not even a nuance really, that's come into play now is more about close rates. It's not just as simple of taking your pipeline, assuming you're going to have close rates that were at the same level they were in prior periods.

一是我們仍然對管道非常非常滿意。而且管道繼續 - 繼續遠遠高於我們談論的公司全年增長率。但我認為現在開始發揮作用的細微差別——也許甚至不是真正的細微差別更多是關於收盤價。假設您的收盤價與之前的時期處於同一水平，這不僅僅是採用您的管道那麼簡單。

And that's -- when we use the term close rate, not a suggestion that deals are getting lost, but this continual cycle that we seem to be in, where some of the larger enterprise deals, in particular, are taking longer, they're pushing out a lot of pushes. It's not that there's been an increase in losses, but the continual push. And so with that in mind, I think a fair amount of attention looking at the full year guidance on what we really think our close rates may be for the second half of this year.

那就是——當我們使用成交率這個詞時，並不是說交易正在丟失，而是我們似乎處於這個持續的周期中，特別是一些較大的企業交易需要更長的時間，他們是推了很多推。並不是虧損增加了，而是持續的推動。因此，考慮到這一點，我認為相當多的注意力都在關注我們真正認為今年下半年的收盤價可能是多少的全年指導。

This question comes from the line of Saket Kalia of Barclays.

這個問題來自巴克萊銀行的 Saket Kalia。

Okay. Great. Ken, maybe just to start with you, great to see Fortinet sell the whole breadth of the platform, particularly within the enterprise. Could you just maybe talk about anything that you can do to make it easier for customers to consolidate spending with Fortinet, whether that's an enterprise license agreement or any other thing that sort of makes it easier to combine -- consolidate those vendors, which was a theme, I think, was talked about earlier.

好的。偉大的。肯，也許只是從你開始，很高興看到 Fortinet 銷售整個平台，特別是在企業內部。你能不能談談你能做些什麼來讓客戶更容易地整合與 Fortinet 的支出，無論是企業許可協議還是任何其他能讓合併更容易的東西——整合這些供應商，這是一個主題，我想，之前已經談過了。

We definitely see some healthy growth of enterprise agreement. And also we're working closely with our channel partner with a service provider also leverage their connection, their resource to the healthy ecosystem to grow together. But I also see the -- from enterprise level, they also see the benefit of consolidation definitely and also not just consolidate some of the security product, but also the expanded infrastructure go beyond the traditional network security.

我們肯定會看到一些企業協議的健康增長。此外，我們還與我們的渠道合作夥伴密切合作，服務提供商也利用他們的聯繫，他們與健康生態系統的資源共同成長。但我也看到了——從企業層面來看，他們也看到了整合的好處，不僅是整合了一些安全產品，而且擴展的基礎設施超越了傳統的網絡安全。

So that also we see pretty healthy growth like in Q1. We do see that we call enhanced -- enhanced technology side also has pretty healthy growth. Yes, the sales force also you can see the number of $1 million deal, both on the number and also on the dollar-wise, has a pretty healthy growth continue to accelerate and grow beyond the total billing growth. So that's a pretty healthy trend we see going forward to helping customers consolidate.

因此，我們也看到像第一季度那樣健康的增長。我們確實看到我們稱之為增強 - 增強技術方面也有相當健康的增長。是的，銷售人員也可以看到 100 萬美元交易的數量，無論是在數量上還是在美元方面，都有相當健康的增長，繼續加速並超過總賬單增長。因此，我們認為這是一個非常健康的趨勢，可以幫助客戶整合。

Yes. And Saket, maybe just -- this is Keith, just to go a little deeper on what Ken is talking about there, and I'll give you maybe 4 quick examples. So enterprise agreement is something that we've been doing now for probably a couple of years. We track those as -- in some ways, it's a different line of business in terms of the growth rates and particularly as we move into the enterprise. I think it's been very important to be there, and we've been very successful in it. I think another illustration of trying to make it easier for customers was the example of the large retailer we gave on the call today.

是的。 Saket，也許只是 - 這是 Keith，只是為了更深入地了解 Ken 在那裡談論的內容，我會給你大概 4 個簡單的例子。所以企業協議是我們現在可能已經做了幾年的事情。我們跟踪這些——在某些方面，它在增長率方面是不同的業務線，特別是當我們進入企業時。我認為在那裡非常重要，我們在這方面非常成功。我認為另一個試圖讓客戶更容易的例子是我們今天在電話會議上提供的大型零售商的例子。

And we talked about the points program, right, which is an easier way, I think, sometimes for them to get on board and consume more of the products. And I think also then when we sell, making sure that our salespeople are well trained on the value proposition that we're offering, not just on the cost of the appliance or the throughput, the performance, but also what it means to the customers' management cost and overhead costs as well. So I think those types of things are all going into play here to support what Ken is talking about, about making it easier for customers to consume our products.

我們討論了積分計劃，對吧，我認為這是一種更簡單的方法，有時讓他們加入並消費更多的產品。我還認為，當我們進行銷售時，確保我們的銷售人員在我們提供的價值主張方面接受過良好培訓，不僅是關於設備成本或吞吐量、性能，還包括它對客戶的意義' 管理成本和管理費用也是如此。所以我認為這些類型的事情都會在這裡發揮作用，以支持 Ken 所說的，關於讓客戶更容易消費我們的產品。

Got it. That's super helpful. Keith, maybe for my follow-up for you. Great to see that 30% growth and acceleration in services revenue. Maybe the question is, how do you think about what portion of your existing subscription base hasn't seen that cumulative impact of the price increases you've done yet, right? Like clearly, the price increases on products have been fully baked. But how much of the base or maybe how long will it take for the subscription base to fully realize that pricing as well?

知道了。這非常有幫助。基思，也許是為了我跟進你。很高興看到服務收入 30% 的增長和加速。也許問題是，您如何看待您現有訂閱基礎的哪一部分尚未看到您所做的價格上漲的累積影響，對嗎？顯然，產品的價格上漲已經完全出爐。但是訂閱基礎需要多少基礎或者可能需要多長時間才能完全實現該定價？

Yes. Great question, and I think didn't really look at the numbers closely this quarter as we did last quarter. A couple of things to keep in mind. The average contract term, call it, 27 months. If all the contracts were 27 months, you can do that math, but they're not. Some are 1 and some are 3-year contracts -- in terms of the renewals that are coming through. So probably 1 and 5-year contracts. Sorry, Peter, thank you for that.

是的。很好的問題，我認為本季度並沒有像上個季度那樣仔細研究這些數字。有幾件事要記住。平均合同期限，稱之為 27 個月。如果所有合同都是 27 個月，你可以計算一下，但事實並非如此。有些是 1 年合同，有些是 3 年合同——就即將到來的續約而言。所以可能是 1 年和 5 年的合同。對不起，彼得，謝謝你。

So it does have a long tail. And again, I refer you back to how many quarters or a few years that we talked about seeing the uplift that came when we converted to 24 by 7 support from 8 by 5. That was something that continued to provide a benefit for several years. I think the tail gets smaller, obviously, as you go further out. I think the majority of what's -- of the existing contracts, more than 50% are under the new pricing.

所以它確實有一條長長的尾巴。再一次，我讓你回顧一下我們討論了多少個季度或幾年，當我們從 8 x 5 轉換為 24 x 7 支持時看到了提升。這幾年繼續提供好處。我認為當你走得更遠時，尾巴會變小，很明顯。我認為大部分 - 在現有合同中，超過 50% 的合同都在新定價之下。

The next question comes from the line of Shaul Eyal of TD Cowen.

下一個問題來自 TD Cowen 的 Shaul Eyal。

Congrats on results and guidance in a tough macro. Keith, maybe starting with you. Can you comment -- can you provide us with some color about the financial vertical performance this quarter?

祝賀在艱難的宏觀環境中取得的成果和指導。基思，也許從你開始。您能否發表評論 - 您能否為我們提供有關本季度財務垂直績效的一些信息？

Yes. Well, financial services have always been one of our -- I should say always, but for a long time, even the top 3. And it can be a bit feast or famine there with some very large deals in the quarter. But I don't think there was anything that was it was #2 in this particular quarter. Thank you, Peter. I don't think there are any really large deals that drove that number. I think it was -- we saw growth and success, not only in the U.S. but also internationally, particularly in Europe. And so I think it was a strong quarter for us in that area.

是的。好吧，金融服務一直是我們的服務之一——我應該說一直如此，但很長一段時間以來，甚至是前三名。而且本季度有一些非常大的交易，這可能會有點盛宴或飢荒。但我認為在這個特定的季度中沒有什麼是排名第二的。謝謝你，彼得。我不認為有任何真正的大交易推動了這個數字。我認為是——我們看到了增長和成功，不僅在美國，而且在國際上，尤其是在歐洲。所以我認為這對我們來說在那個領域是一個強勁的季度。

Got it. Got it. From a product mix perspective, so the entry level performed the best versus the high end. Is that just a mix or a macro reflection? And also, did you have any 8-digit wins this quarter?

知道了。知道了。從產品組合的角度來看，入門級與高端相比表現最好。那隻是混合還是宏觀反射？還有，你這個季度有沒有 8 位數的勝利？

So we talked about -- yes, we did. I think we talked about one in the script just a moment ago. I think we commented it was an 8-figure deal, if I'm not mistaken, right, without giving a specific number -- yes. And I don't recall if there was a second 8-figure deal, there was a second.

所以我們談到了——是的，我們做到了。我想我們剛才在劇本中談到了一個。我想我們評論說這是一筆 8 位數的交易，如果我沒記錯的話，對，沒有給出具體數字——是的。而且我不記得是否有第二個 8 位數的交易，有第二個。

Also our SMB had pretty healthy growth. Like I said, SMB is more greenfield for the network security. We do see more and more SMB need network security to protect their business, especially comes from some of the (inaudible) attacks.

我們的 SMB 也有相當健康的增長。就像我說的，SMB 是網絡安全的新領域。我們確實看到越來越多的 SMB 需要網絡安全來保護他們的業務，尤其是來自一些（聽不清）攻擊。

On enterprise because it's a kind of more replacement -- and also a lot of enterprise kind of maybe the big environment in the refresh some of the hardware more dependent on the service -- so that impacts some of the high end. And also the other benefit for some of the low and middle range is really -- most -- I'd say most SD-WAN and some of the OT deployment maybe more towards the low and middle range.

在企業上，因為它是一種更多的替代品——而且很多企業可能在刷新一些更依賴於服務的硬件的大環境中——所以影響了一些高端。對於一些低端和中端來說，另一個好處是——大多數——我想說大多數 SD-WAN 和一些 OT 部署可能更傾向於中低端。

This question comes from Rob Owens of Piper Sandler.

這個問題來自 Piper Sandler 的 Rob Owens。

I wanted to start around OpEx or the quarterly operating margin. A very strong first quarter here. I think you mentioned it was the strongest Q1 that you've had since you're public. If I go back through results since you've been public, Q1 has never really been the high watermark from an operating margin standpoint. So walk me through your thought process as the rest of this year plays out, was there some aberration in Q1 that really helped drive that or just a lot of conservatism as we look ahead.

我想從 OpEx 或季度營業利潤率開始。這裡的第一季度非常強勁。我想你提到過這是你上市以來最強勁的第一季度。如果我回顧一下你公開後的結果，從營業利潤率的角度來看，第一季度從來都不是真正的高水位線。因此，在今年餘下的時間裡，讓我了解一下你的思考過程，第一季度是否有一些失常真的有助於推動這一點，或者只是在我們展望未來時有很多保守主義。

Yes. I think that we called out 3 things and maybe focusing on 2. One, we had a very strong gross margin in the quarter, and I'll elaborate on that in a moment. And then also FX continues to provide a tailwind. More commentary about the gross margin, particularly the product gross margin as we moved through the supply chain challenges and then into inflation, et cetera, over the last couple of years, I think we've talked publicly that our goal is to try and keep the product gross margin around 61% or so.

是的。我認為我們提出了 3 件事，也許專注於 2 件事。第一，我們本季度的毛利率非常高，我稍後會詳細說明。然後 FX 也繼續提供順風。更多關於毛利率的評論，特別是產品毛利率，因為我們在過去幾年經歷了供應鏈挑戰，然後進入通貨膨脹等，我認為我們已經公開談論過我們的目標是努力保持該產品毛利率在61%左右。

The fourth quarter came in obviously very low. We did not anticipate that we'd be able to time our price increases and the cost increases perfectly. So they went through the income statement in the same quarter, so to speak. And with that, I think you saw a little bit of pressure in the fourth quarter then you saw it kind of revert in the first quarter.

第四節顯然很低。我們沒有預料到我們能夠準確地安排價格上漲和成本上漲的時間。所以他們在同一季度查看了損益表，可以這麼說。因此，我認為你在第四季度看到了一點壓力，然後你看到它在第一季度有所恢復。

I think longer term, we also look at product gross margin as an opportunity sometimes for us to continue to invest in growth. And I think we saw the first quarter gross margin certainly well above that band that I just talked about.

我認為從長遠來看，我們有時也會將產品毛利率視為我們繼續投資於增長的機會。而且我認為我們看到第一季度的毛利率肯定遠高於我剛才談到的那個區間。

And with that in mind, as we start to see some of the costs moving out of the equation, and we introduce new products, I think we'll be looking at that in terms of is there an opportunity there to make certain investments in growth while maintaining the margin commitments that we've talked about.

考慮到這一點，當我們開始看到一些成本被排除在外，並且我們推出新產品時，我認為我們會考慮是否有機會在增長方面進行某些投資同時保持我們已經談到的保證金承諾。

Great. And then as a follow-up, did want to touch on the OT business and the strength you're seeing there. Can you talk a little bit from a go-to-market standpoint and some of the channel programs because it does seem like there's some new large channel partners out there that are very excited about the opportunity.

偉大的。然後作為後續行動，確實想談談 OT 業務和你在那裡看到的實力。你能從進入市場的角度和一些渠道計劃談一談嗎，因為看起來確實有一些新的大型渠道合作夥伴對這個機會感到非常興奮。

Yes. I think OT, we do look at -- I mean, you're always trying to organize your sales force around verticals, geographies or what have you.

是的。我認為 OT，我們確實在看——我的意思是，你總是試圖圍繞垂直、地域或你擁有的東西來組織你的銷售隊伍。

And I think when we started to see the opportunity in OT several years ago, Patrice and Ken made a decision to start separating that out and having really a separate sales function and some people that specialize in that. I do think that we probably got some first-mover advantages by doing that, particularly as we look at Europe and then quickly followed thereafter by the U.S. And yes, there are some large names that are in that space that are providing technology, not security technology, but technologies in the OT space that have been very receptive, if you will, to conversations and opportunities to meet with us.

我認為，當我們幾年前開始看到 OT 的機會時，Patrice 和 Ken 決定開始將其分開並擁有真正獨立的銷售職能和一些專門從事該工作的人員。我確實認為我們可能通過這樣做獲得了一些先發優勢，特別是當我們著眼於歐洲，然後美國很快緊隨其後時。是的，該領域有一些大公司提供技術，而不是安全技術，但如果您願意的話，OT 領域的技術非常容易接受對話和與我們會面的機會。

The next question comes from Adam Borg of Stifel.

下一個問題來自 Stifel 的 Adam Borg。

Awesome. Just for Ken or Keith, obviously, it's great to see the strong collections and the record free cash flow. And you also talked about contract terms being consistent year-on-year. And I was just curious, though, just given the tougher macro, are you seeing any pushback by customers around willingness to pay upfront? And then I have a follow-up.

驚人的。顯然，對於 Ken 或 Keith 來說，很高興看到強大的收藏和創紀錄的自由現金流。你還談到合同條款與去年同期相比是一致的。不過，我只是好奇，考慮到更嚴格的宏觀經濟，你是否看到客戶對預付意願有任何抵觸？然後我有一個後續行動。

Yes. Well, first of all, I want to revel in the $600 million of free cash flow, wish that we'll be doing for several more quarters. But I'm trying to let people know that a lot of the things fell our way in the quarter. There's always the conversation and part of the sales cycle, if you will. The customer is a lot a 1-year, 3-year, 5-year deal. And certainly, in a rising -- in an environment where interest rates have gone up, I think there's a lot more -- many more conversations that exist around payment terms and things like that.

是的。好吧，首先，我想陶醉於 6 億美元的自由現金流，希望我們能再持續幾個季度。但我想讓人們知道，本季度有很多事情都發生了變化。如果您願意的話，總會有對話和銷售週期的一部分。客戶很多是 1 年、3 年、5 年的交易。當然，在利率上升的環境中，我認為圍繞付款條件和類似問題存在更多的對話。

I do believe that just as we just talked about in the second quarter of 2020, when COVID hit, we have a very strong balance sheet. We obviously have very strong margins. And it's appropriate for us to look to that as opportunities to leverage our balance sheet. Sometimes that may be in the form of extended payment terms or what have you.

我確實相信，正如我們剛剛談到的 2020 年第二季度，當 COVID 來襲時，我們的資產負債表非常強勁。我們顯然有非常高的利潤率。我們將其視為利用資產負債表的機會是合適的。有時，這可能會以延長付款期限或您有什麼的形式出現。

In our income statement in the form of how we want to go about discounting and supporting growth. So I think that, again, the strength that we've had, we have the ability to do those things. If the question is around what are we seeing from some of the enterprise customers and Ken is seeing a lot of this as well. Do we see deals that go from 5 years to 3 years? Sure. Is it more than we've seen in the past? I kind of look back at the contract term data point that we gave and say, maybe but not a lot kind of a thing. And on payment terms, the channel has always offered a financing function. I think they prefer to provide the financing function. And I think we provide support to the financing function to the channel by making capital available to them through payment terms.

在我們的損益表中，我們希望如何貼現和支持增長。所以我認為，我們擁有的力量，我們有能力做那些事情。如果問題是關於我們從一些企業客戶那裡看到了什麼，Ken 也看到了很多。我們是否看到從 5 年到 3 年的交易？當然。它比我們過去看到的更多嗎？我有點回顧我們給出的合同條款數據點，也許但不是很多。而在支付方面，該渠道一直提供融資功能。我認為他們更願意提供融資功能。我認為我們通過支付條款向渠道提供資金，從而為渠道的融資功能提供支持。

That's really helpful. And maybe just as a quick follow-up. Head count was up a little bit over 600 people quarter-over-quarter, up over 21.5% year-on-year. Just curious how we think about headcount growth, either in 2Q or later this year, again, just given the macro.

這真的很有幫助。也許只是快速跟進。員工人數環比增加了 600 多人，同比增長超過 21.5%。只是好奇我們如何考慮員工人數增長，無論是在第二季度還是今年晚些時候，再一次，考慮到宏觀因素。

Yes, we are -- overall, we look at both headcount -- headcount cost, probably the same pace company grow the top line and also try to at the same time, try to improving some efficiency there. So we're not looking for headcount growth above the top line, even we feel there's still some question area, we also need to do some more investment, [long-term] investment. But the company so far, we feel we have a pretty healthy finance model. And this also could be the opportunity to also gaining some market share.

是的，我們 - 總的來說，我們同時關注員工人數 - 員工成本，可能是公司增長收入的相同速度，同時也試圖提高那裡的一些效率。所以我們不是在尋找高於收入的員工人數增長，即使我們覺得仍然存在一些問題，我們也需要做更多的投資，[長期] 投資。但到目前為止，我們認為公司擁有一個非常健康的財務模式。這也可能是獲得一些市場份額的機會。

(Operator Instructions)

（操作員說明）

This question comes from Ittai Kidron from Oppenheimer & Company.

這個問題來自 Oppenheimer & Company 的 Ittai Kidron。

Nice results. My first question, I guess, is on the U.S. enterprise, so not U.S. in general, but just the enterprise vertical, clearly, one of the most important growth opportunities for you long term. Can you talk about progress over their win rates displacements? And is the macro making things easier or more difficult for you specifically in the U.S.?

不錯的結果。我想我的第一個問題是關於美國企業的，所以不是一般的美國，而是垂直企業，顯然，從長遠來看，這是最重要的增長機會之一。你能談談他們的勝率置換方面的進展嗎？宏觀經濟是讓你在美國的事情變得更容易還是更困難？

First, we continue to invest in the U.S. enterprise. We also see a huge growth potential for us because we have a relatively small market share. And with all the strong product technology we have. On the other side, the big environment definitely slowed down some of the enterprise making certain decisions, whether to refresh or something like that. But on the other side, our solution has a better, lower total cost of ownership and also can expand beyond the traditional network security and also helping customers to consolidate. So I think all these combined together, we do see the U.S. enterprise definitely a strong growth area for us.

第一，我們繼續投資美國企業。我們也看到了巨大的增長潛力，因為我們的市場份額相對較小。憑藉我們擁有的所有強大的產品技術。另一方面，大環境肯定會減慢一些企業做出某些決定的速度，無論是更新還是類似的事情。但另一方面，我們的解決方案具有更好、更低的總體擁有成本，還可以擴展到傳統網絡安全之外，還可以幫助客戶進行整合。所以我認為所有這些結合在一起，我們確實看到美國企業對我們來說絕對是一個強勁的增長領域。

Okay. And then maybe a follow-up on the competitive side. Then Ken, maybe you can talk about what have you seen out of your competitors here in the U.S., any kind of abnormal activity from discounting or otherwise?

好的。然後可能是競爭方面的後續行動。那麼肯，也許你可以談談你在美國這裡的競爭對手身上看到了什麼，打折或其他方面的任何異常活動？

I think given the slowdown of some of the big environment, definitely the competitors starting to do more aggressive, whether on some discount or offer some free some of the -- some percentage of free service. But from our angle, we see we have much better product position, much broad like infrastructure coverage and better service and also both on the performance angle, the product definitely has performed much better for the same functions in [cost] at the same time.

我認為，鑑於一些大環境的放緩，競爭對手肯定會開始變得更加激進，無論是打折還是提供一些免費服務——一定比例的免費服務。但從我們的角度來看，我們看到我們擁有更好的產品定位，更廣泛的基礎設施覆蓋範圍和更好的服務，而且從性能角度來看，該產品在 [成本] 的相同功能上肯定表現得更好。

Our service also has much more value and cost lower than competitors. So for us, we have not experienced like price pressure or discount pressure. It's more about how we can increase the coverage, increase the lead gen pipeline and also to meet the customer need in this big environment change.

我們的服務也比競爭對手具有更高的價值和更低的成本。所以對我們來說，我們沒有經歷過價格壓力或折扣壓力。更多的是關於我們如何增加覆蓋面，增加潛在客戶開發渠道，以及如何在這個大環境變化中滿足客戶需求。

I would think that what Ken talked about, I think, is fantastic. I think keep in mind, we don't -- we have a very -- as we kind of talked about in prepared remarks, a very diverse customer base, if you will. Between being international, between being very large, mid, small, and MSSPs, et cetera. So I don't want to put a policy in place that covers every geography and it covers every customer size.

我認為 Ken 談到的內容非常棒。我認為請記住，如果您願意的話，我們不會 - 我們有一個非常 - 正如我們在準備好的評論中所說的那樣，一個非常多樣化的客戶群。在國際化之間，在非常大、中型、小型和 MSSP 之間，等等。因此，我不想制定涵蓋所有地區和所有客戶規模的政策。

And I think what you're really talking about here is something that for us represents 15% of our business, maybe just a little bit less. And because it's at that size, it's something that we can really more, I think, target our responses to as we get deeper into the selling function as opposed to some broad announcement that we're going to give away services for 2 years or something like that.

而且我認為你在這裡真正談論的是對我們來說代表我們業務的 15%，也許只是一點點。而且因為它的規模如此之大，我認為，隨著我們深入了解銷售功能，我們可以真正更多地針對我們的回應，而不是像一些廣泛的聲明那樣，我們將放棄 2 年或其他時間的服務像那樣。

This question comes from the line of Angie Song with Morgan Stanley.

這個問題來自 Angie Song 與 Morgan Stanley 的對話。

I'm on for Hamza Fodderwala, Morgan Stanley. So could you just share a little bit more about your current interest around the SASE -- or current customer interest around the SASE product? And -- what are some of the responses around it so far?

我支持摩根士丹利的 Hamza Fodderwala。那麼，您能否再分享一下您目前對 SASE 的興趣——或者當前客戶對 SASE 產品的興趣？並且 - 到目前為止，圍繞它的一些回應是什麼？

It's a pretty strong growth. And also, we're working with a lot of our service providers, both on the infrastructure side or security service side and offer SASE. Because we do believe SASE should be ecosystem with a lot of players instead of just a vendor offer their own SASE because a lot of -- I say, probably most customers, they prefer some of their data being processed control themselves, whether some private SASE or some data solvency keeping the data within certain geo.

這是一個相當強勁的增長。而且，我們正在與我們的許多服務提供商合作，無論是在基礎設施方面還是在安全服務方面，並提供 SASE。因為我們確實相信 SASE 應該是一個有很多參與者的生態系統，而不僅僅是供應商提供他們自己的 SASE，因為很多——我說，可能是大多數客戶，他們更喜歡自己處理的一些數據，無論是一些私有 SASE或某些數據償付能力將數據保持在特定地理範圍內。

So that's where we see the SASE approach, we call Universal SASE give the customer flexibility to offer both cloud-based or on-prem space or kind of [level] service provider infrastructure will be more benefited the whole industry long term. And so that's where -- even sometimes we kind of take a little bit more time to develop our SASE function in the single OS, but that's make it more easy for the customer, for the service provider to deploy SASE to see their environment.

這就是我們看到 SASE 方法的地方，我們稱之為 Universal SASE，讓客戶可以靈活地提供基於雲或本地空間或某種[級別]服務提供商基礎設施，這將使整個行業長期受益。所以這就是 - 甚至有時我們會花更多的時間在單個操作系統中開發我們的 SASE 功能，但這讓客戶和服務提供商更容易部署 SASE 以查看他們的環境。

So we see a very, very healthy pipeline and the strong growth, kind of a salary growth. And that's also based on kind of a more healthy margin kind of model instead of do see [money] all of our growth. So we want to maintain that model and also working closely with our partner to offer kind of SASE together to the customer.

所以我們看到了一個非常非常健康的管道和強勁的增長，一種工資增長。這也是基於一種更健康的利潤模型，而不是看到我們所有的增長。因此，我們希望保持該模型，並與我們的合作夥伴密切合作，共同為客戶提供某種 SASE。

Got it. And just one more around profitability. So how are you guys thinking about (technical difficulty) slows down over the next few years? And where do (technical difficulty) to see that margin leverage?

知道了。還有一個關於盈利能力的問題。那麼你們如何看待（技術難度）在未來幾年內放緩？在哪裡（技術難度）看到保證金槓桿？

Angie, can you repeat that? You cut out at the beginning of that question.

安吉，你能重複一遍嗎？你在那個問題的開頭就被打斷了。

Yes. No worries. So the question is around profitability. And I was just wondering what you guys are thinking about upside to profitability as growth slows down. And where should we expect to see that margin leverage?

是的。不用擔心。所以問題是圍繞盈利能力。我只是想知道，隨著增長放緩，你們對盈利能力的上行空間有何看法。我們應該在哪裡看到保證金槓桿？

We see the midterm model will be (inaudible) by 2025 with non-GAAP operating margin at least 25% for each year the next 3 years.

我們看到中期模型將（聽不清）到 2025 年，未來 3 年每年的非 GAAP 營業利潤率至少為 25%。

Yes. I think the one thing, Angie, and I think (inaudible) talked about this before as well. Keep in mind, 2/3 of the business roughly is service revenue, and that's producing a gross margin that's in the mid-80s. So -- and that's -- those are longer-term contracts. So I think we -- the business model is such that we have time to react if there was something really dramatic that happened in the industry.

是的。我想有一件事，Angie，我想（聽不清）之前也談過這個。請記住，2/3 的業務大致是服務收入，這產生了 80 年代中期的毛利率。所以——那就是——那些是長期合同。所以我認為我們 - 商業模式是這樣的，如果行業中發生了一些非常戲劇性的事情，我們有時間做出反應。

But part of that is for that to happen, I think you probably have to see some sort of shift in the behavior of the bad actors, the nation states, the organized crime groups, et cetera, and we don't see that, that's on the landscape.

但其中一部分是為了實現這一點，我認為你可能必須看到不良行為者、民族國家、有組織犯罪集團等的行為發生某種轉變，而我們沒有看到，那是在風景上。

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

下一個問題來自美國銀行的 Tal Liani。

What we've seen with good companies in the last 2 quarters is that they make great numbers. But when you look at the composition, new customers are slowing down and sales to existing customers are going up, and we've seen it through multiple companies in the space. So the question is whether you can provide us with some data on sales to existing customers versus new customers? And how is the current environment on customer acquisition on new customer acquisition?

我們在過去兩個季度看到的優秀公司的情況是，他們創造了巨大的數字。但是當你看一下構成時，新客戶正在放緩，而對現有客戶的銷售正在上升，我們已經通過該領域的多家公司看到了這一點。所以問題是你是否可以向我們提供一些關於現有客戶與新客戶的銷售數據？目前在新客戶獲取方面的客戶獲取環境如何？

Yes. So as a reminder, Tal, it's good to hear from you again. If you think of the business being extremely diversified, whether that's geographically or by customer segments, 1/3 small, 1/3 mid, 1/3 large. We specifically called out in the script that we added over 6,000 new logos in the quarter.

是的。提醒一下，塔爾，很高興再次收到你的來信。如果您認為業務極其多元化，無論是在地理上還是按客戶細分，1/3 小型、1/3 中型、1/3 大型。我們在腳本中特別指出，我們在本季度添加了 6,000 多個新徽標。

So obviously -- and that's probably a growth rate that's easily in the double digits. New logos take a while to really produce revenue for us. It tends to be less than 10% of total revenue from the new logos. So it creates the opportunity to continue to sell into them -- kind of Ken's comment a moment ago to your question here, do we see large enterprises in the U.S. still moving forward robustly with all their various digital transformation projects?

很明顯——這可能是一個很容易達到兩位數的增長率。新標識需要一段時間才能真正為我們創造收入。它往往不到新標識總收入的 10%。因此，它創造了繼續向他們銷售產品的機會——這是 Ken 剛才對你的問題發表的評論，我們是否看到美國的大型企業仍在通過各種數字化轉型項目穩步前進？

I think that the word on the Street is that slowed down a little bit. And in that environment, I do think that incumbents sometimes have an advantage, but also a cost of performance argument and debate is something that you see customers perhaps more receptive to in the current macro environment.

我認為街上的說法是放慢了一點點。在那種環境下，我確實認為現任者有時有優勢，但在當前的宏觀環境中，客戶可能更容易接受性能爭論和辯論的成本。

And in the current macro environment, is the duration of contracts going down? Or is (inaudible)?

而在當前的宏觀環境下，合約期限是否在下降？或者是（聽不清）？

It was flat year-over-year, down 1 month quarter-over-quarter -- which is -- somebody reminds me in the room very politely, every first quarter is down 1 month.

同比持平，環比下降 1 個月——也就是說——有人非常禮貌地在房間裡提醒我，每個第一季度都下降了 1 個月。

Sequentially.

按順序。

Yes.

是的。

This question comes from the line of Andrew Nowinski of Wells Fargo.

這個問題來自 Wells Fargo 的 Andrew Nowinski 的台詞。

Congrats on nice quarter. So I wanted to ask about your SASE offering as well. You talked at the Accelerate conference about I think having 8 to 10 new use cases driving demand for the firewall. But I'm wondering if SASE could be one of those use cases as well, meaning is the firewall appliance a critical component of your SASE offering?

恭喜你有一個不錯的季度。所以我也想問問你們的 SASE 產品。你在 Accelerate 會議上談到我認為有 8 到 10 個新用例推動了對防火牆的需求。但我想知道 SASE 是否也可以成為這些用例之一，這意味著防火牆設備是否是您的 SASE 產品的關鍵組件？

Yes, SASE is definitely one of the use case, especially the Universal SASE or sometimes they call the Private SASE. For some customer or some service provider, they want to have more control of their data. So that we see is -- both SASE like the service model, customer benefit and service provider has a big value-add in that one. But at the same time, given the flexibility of whether for some traffic to the cloud or to the PoP or have a process on premise and by the [appliance]. So that's we see the huge benefit of our Universal SASE solution, which is very different than some other SASE players and a lot of customers and the partner very interested in this Universal-SASE approach.

是的，SASE 絕對是用例之一，尤其是 Universal SASE 或者有時他們稱之為 Private SASE。對於某些客戶或某些服務提供商，他們希望對自己的數據有更多的控制權。所以我們看到的是——SASE 就像服務模型、客戶利益和服務提供商在這方面都有很大的增值。但與此同時，考慮到某些流量是流向雲還是流向 PoP 的靈活性，或者是否有內部部署和 [設備] 的流程。因此，我們看到了我們的 Universal SASE 解決方案的巨大好處，這與其他一些 SASE 參與者和許多客戶以及對這種 Universal-SASE 方法非常感興趣的合作夥伴非常不同。

And then maybe a question for Keith, just as it relates to your CapEx. You talked about a component of that being used to build out more PoPs to support the SASE offering. But is that something -- like how should we think about CapEx in that investment beyond 2023 as you continue building out your network?

然後可能有一個問題要問基思，因為它與您的資本支出有關。您談到了用於構建更多 PoP 以支持 SASE 產品的組件。但那是什麼——比如我們應該如何考慮 2023 年以後的投資中的資本支出，因為您將繼續建設您的網絡？

Ken and I are smiling each other. We've had this conversation. I think I've been here for 9 years as of this week. One thing I've come to appreciate is Ken behaves like a long-term investor. And with that in mind, owning critical real estate assets tends to have a better payback than leasing them over an extended period of time, whether that's in R&D facilities, whether that's in manufacturing or warehouse facilities, or that as you -- as we move into the SaaS market as well as other cloud offerings, it's not just investments in SASE, if you will, but it's also investments in larger data centers in order to deliver various cloud-based services and solutions.

肯和我互相微笑。我們有過這樣的談話。截至本週，我想我已經在這裡待了 9 年。我開始欣賞的一件事是 Ken 表現得像一個長期投資者。考慮到這一點，擁有關鍵的房地產資產往往比長期租賃它們有更好的回報，無論是在研發設施中，無論是在製造或倉庫設施中，還是在你——我們搬家的時候進入 SaaS 市場以及其他雲產品，如果您願意的話，這不僅是對 SASE 的投資，而且也是對更大數據中心的投資，以提供各種基於雲的服務和解決方案。

And I think you've heard us talk about that in the last several earnings calls and the guys of data centers having an impact on margins for services and CapEx spending. So I don't think there should be a surprise there, but I think it is an indication of our looking to expand into -- more fully into some of these other markets.

我想你在最近幾次財報電話會議上都聽過我們談論過這個問題，數據中心的人對服務利潤率和資本支出支出有影響。所以我不認為那裡應該有驚喜，但我認為這表明我們希望擴展到 - 更充分地進入其他一些市場。

Our last question comes from the line of Shrenik Kothari from Baird.

我們的最後一個問題來自 Baird 的 Shrenik Kothari。

So for Ken or Pete. I think, Keith, you mentioned about the financial services up over 40%, which is surprisingly strong and contrary to what we are hearing from your peers and competitors. So can you expand a bit about -- upon the underlying drivers? I know you touched upon it but I just wanted to expand on the geographical diversity? Or is it increased kind of impetus for vendor consolidation that is benefiting you guys in that vertical? If you can just elaborate and then I have a quick follow-up.

所以對於肯或皮特。我想，基思，你提到了超過 40% 的金融服務，這是驚人的強勁，與我們從你的同行和競爭對手那裡聽到的相反。那麼你能否擴展一下——在底層驅動程序上？我知道你提到了它，但我只是想擴展地理多樣性？或者它是否增加了供應商整合的動力，讓你們在那個垂直領域受益？如果你能詳細說明，我會快速跟進。

Yes. I would say it's all of the above. It's happening geographically. I think it's happening with customers that we took down earlier that are expanding with us with additional firewalls and additional security or additional services as well. I think the market, if you will, financial services, if you step back and look at what's happening there, specifically the firewalls over the last several years, there's probably 2 legacy vendors there that when they're contracts are up for renewal, and we've talked about this a long period of time.

是的。我想說的是以上所有。它發生在地理上。我認為我們之前關閉的客戶正在發生這種情況，這些客戶正在通過額外的防火牆和額外的安全性或額外的服務與我們一起擴展。我認為市場，如果你願意的話，金融服務，如果你退後一步看看那裡發生了什麼，特別是過去幾年的防火牆，那裡可能有 2 個傳統供應商，當他們的合同需要續籤時，並且我們已經討論了很長一段時間。

Now they're exposed and increasing opportunity to come in for a competitive displacement. And I think that some of the other comments or questions today is -- is it more difficult in this environment for competitive placements? I mean, sure, you've got to work a lot harder to make it happen. You got to make your value proposition more well known. But I think, again, I think it's expansion. I think it's opportunity to displace incumbents, and I don't think it's specific to any one particular geography.

現在，他們面臨著越來越多的機會來進行競爭性取代。我認為今天的其他一些評論或問題是——在這種環境下競爭性安置是否更難？我的意思是，當然，你必須更加努力地工作才能實現它。你必須讓你的價值主張更廣為人知。但我認為，我認為這是擴張。我認為這是取代現任者的機會，我不認為它特定於任何一個特定的地理區域。

Also from technology and go on, we have a huge advantage on for the internal segmentation of security data center. So because the ASIC advantage we have, we can deploy in the very high-speed environment, which a lot of us finance service provider, they do need to secure their kind of internal segmentation there. The other part, really, some of finance services are also starting to supporting work from home, working from remotely, which we also have a super solution with our ASIC based like small appliance and supporting this kind of a very broad infrastructure approach combined with like SD-WAN or the other 5G, 4G network and security together. So that's give us huge advantage from the product angle.

同樣從技術上來說，我們在安全數據中心的內部細分上有巨大的優勢。因此，由於我們擁有 ASIC 優勢，我們可以部署在非常高速的環境中，我們很多金融服務提供商都需要在那裡確保他們的內部分段。另一方面，實際上，一些金融服務也開始支持在家工作，遠程工作，我們也有一個超級解決方案，我們基於 ASIC 的小型設備，支持這種非常廣泛的基礎設施方法，結合類似SD-WAN 或其他 5G、4G 網絡和安全性結合在一起。所以從產品的角度來看，這給了我們巨大的優勢。

Got it. Got it. Just a quick follow-up. And you guys, of course, talked upon the expansion opportunity in the form factors. Of course, your peers and partners have spoken about unit expansion pressure and how the product unit growth is kind of normalizing. But just wondering, given that you guys give examples of this 8-figure expansion and upsell opportunity replacing kind of firewall with a holistic solution. Can you talk about like expansion drivers broadly like -- are you seeing mostly upsell and expansion in form factors versus the units? Just wanted to get some clarification there.

知道了。知道了。只是快速跟進。當然，你們談到了外形尺寸的擴展機會。當然，您的同行和合作夥伴已經談到了單位擴張壓力以及產品單位增長如何正常化。但只是想知道，鑑於你們給出了這個 8 位數擴展和追加銷售機會的例子，用一個整體解決方案取代了某種防火牆。您能否大致談談像擴展驅動程序這樣的問題——您是否看到外形因素與單位相比主要是追加銷售和擴展？只是想在那裡得到一些澄清。

Probably both. Yes, we do see the expanding of both the unit and also upsell cross-sell of the entire for the Forti Security Fabric, which has [53] product. So that's where both our internal sales force also partners setting (inaudible) across for the whole fabric. At the same time, because we combine networking security and more function together have multi-(inaudible) case, which also the unit shipment also starting keeping grow quite nicely.

可能兩者都有。是的，我們確實看到了 Forti Security Fabric 的單位和整體交叉銷售的擴展，其中有 [53] 產品。因此，這就是我們的內部銷售人員和合作夥伴為整個結構設置（聽不清）的地方。同時，由於我們將網絡安全和更多功能結合在一起，因此有多個（聽不清）案例，單位出貨量也開始保持相當不錯的增長。

That concludes the Q&A segment. I'll now turn it back over to Peter Salkowski for closing remarks.

問答環節到此結束。現在我將把它轉回給 Peter Salkowski 作結束語。

Thank you, Chris. Apologies to the 7 people we left in the queue. I'd like to thank everyone for joining today's call. Fortinet will be attending investor conferences hosted by JPMorgan and Bank of America during the second quarter. Fireside chat webcast links will be posted on the Events and Presentations section of the Fortinet Investor Relations website. If you have any questions, please feel free to contact me. Have a great rest of your day. Thank you.

謝謝你，克里斯。對我們留在隊列中的 7 個人表示歉意。我要感謝大家參加今天的電話會議。 Fortinet 將在第二季度參加由摩根大通和美國銀行主辦的投資者會議。爐邊聊天網絡廣播鏈接將發佈在 Fortinet 投資者關係網站的活動和演示部分。如果您有任何疑問，請隨時與我聯繫。祝您度過愉快的一天。謝謝。

And thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了程序。您現在可以斷開連接。