Fortinet Inc (FTNT) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Fortinet Fourth Quarter 2023 Earnings Announcement. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎閱讀 Fortinet 2023 年第四季財報公告。 （操作員指示）請注意，今天的會議正在錄製中。

I'd now like to hand the conference over to your host today, Peter Salkowski, Senior Vice President of Investor Relations. Please go ahead.

現在，我想將會議交給今天的東道主，投資者關係高級副總裁 Peter Salkowski。請繼續。

Thank you, Liz. 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 fourth quarter of 2023. Joining me on today's call are Ken Xie, Fortinet's Founder, Chairman and CEO; Keith Jensen, our Chief Financial Officer; and John Whittle, our Chief Operating Officer.

謝謝你，莉茲。大家下午好。我是 Peter Salkowski，Fortinet 財務和投資者關係資深副總裁。我很高興歡迎大家參加我們的電話會議，討論 Fortinet 2023 年第四季度的財務業績。參加今天的電話會議的是 Fortinet 創始人、董事長兼首席執行官謝肯 (Ken Xie)； Keith Jensen，我們的財務長；以及我們的營運長約翰·惠特爾 (John Whittle)。

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 the fourth quarter of 2023 before providing guidance for the first year -- first quarter of 2024 and the full year. We'll then open the call for questions. During the Q&A session, we ask that you please limit yourself to one question and one follow-up question to allow others to participate.

這是一場現場電話會議，可透過我們的投資者關係網站上的網路廣播進行重播。肯將在今天的電話會議開始時提供有關我們業務的高層觀點。然後 Keith 將審查我們全年和 2023 年第四季的財務和營運業績，然後為第一年（即 2024 年第一季和全年）提供指導。然後我們將開始提問。在問答環節中，我們要求您只回答一個問題和一個後續問題，以便其他人參與。

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，我們將做出前瞻性聲明，這些前瞻性聲明受到風險和不確定性的影響，可能導致實際結果與預測有重大差異。請參閱我們向 SEC 提交的文件，特別是我們最新的 10-K 表格和 10-Q 表格中的風險因素，以了解更多資訊。所有前瞻性陳述僅反映我們截至本簡報發布之日的觀點，我們不承擔任何義務，並特別聲明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 our GAAP to non-GAAP reconciliations are located in our earnings press release and in the presentation that accompany today's remarks, both of which are posted on the Investor Relations website.

此外，除非另有說明，我們在今天的電話會議中提到的所有財務指標均非公認會計準則。我們的 GAAP 業績以及我們的 GAAP 與非 GAAP 調整表位於我們的收益新聞稿和今天演講隨附的簡報中，兩者均發佈在投資者關係網站上。

The prepared remarks for today's earnings call will be posted in the Quarterly Earnings section of our Investor Relations website immediately following the call. Lastly, all references to growth are on a year-over-year basis unless noted otherwise.

為今天的收益電話會議準備的評論將在電話會議結束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，所有提及的成長都是年增長。

I will now turn the call over to Ken.

我現在會把電話轉給肯。

Thank you, Peter, and thank you to everyone for joining our call. In Q4, total billings grew 8.5% to $1.9 billion, driven by our increased focus on secure ops, SASE and improved execution for our sales team. We closed 6 8-figure deals across 5 industry verticals. All 6 of these transactions, including all 3 of our SASE, secure ops and secure networking solutions, illustrating our value of our integrated platform that spans across on-premise and cloud as well as our FortiASIC technology advantages.

謝謝你，彼得，也謝謝大家加入我們的電話會議。第四季度，由於我們更加關注安全營運、SASE 以及銷售團隊執行力的提高，總帳單增加了 8.5%，達到 19 億美元。我們在 5 個垂直行業完成了 6 筆 8 位數的交易。所有 6 項交易，包括我們的所有 3 項 SASE、安全操作和安全網路解決方案，說明了我們跨越本地和雲端的整合平台的價值以及我們的 FortiASIC 技術優勢。

Fortinet's total addressable market across secure ops, SASE and secure networking is expected to increase from $150 billion in 2024 to $208 billion by 2027. Our customer base consists of 76% of Fortune 100, including 9 of the top 10 technology companies, 9 of the top 10 manufacturers and 9 of the top 10 health care.

Fortinet 在安全操作、SASE 和安全網路方面的總潛在市場預計將從2024 年的1500 億美元增加到2027 年的2080 億美元。我們的客戶群包括財富100 強中的76%，其中包括排名前10的科技公司中的9 家、全球排名前10 的科技公司中的9 家前 10 名製造商和前 10 名醫療保健中的 9 家。

Our secure ops billing grew 44%, accounted for 11% of total billings with strong performance from several solutions, including EDR, SIEM, e-mail security and NDR, to automatically detect, investigate and respond to threats. Unified SASE billings grew 19%, accounted for 21% of total billings. We believe Fortinet is the only company with a unified SASE solution all integrated into single FortiOS that includes a full networking and security stack consisting of market-leading SD-WAN, ZTNA, Secure Web Gateway, CASB and firewall-as-a-service designed for on-premise and cloud.

我們的安全營運計費成長了 44%，佔總計費的 11%，多種解決方案（包括 EDR、SIEM、電子郵件安全和 NDR）的強大效能可自動偵測、調查和回應威脅。統一SASE帳單成長了19%，佔總帳單的21%。我們相信Fortinet 是唯一一家擁有統一SASE 解決方案的公司，該解決方案全部整合到單一FortiOS 中，其中包括完整的網路和安全堆疊，其中包括市場領先的SD-WAN、ZTNA、安全Web 網關、CASB 和防火牆即服務。適用於本機和雲端。

Our FortiSASE solution is gaining momentum quickly as we closed our first 8-figure SASE deal for 350,000 seats. In Q4, we added 40 new features to our SASE solution, including support for over 150 PoP solution -- 150 PoP locations worldwide and the ability to protect thin edge devices. We see a huge opportunity to attach FortiSASE to tens of thousands SD-WAN customers.

隨著我們完成了第一個 8 位數的 350,000 個席位的 SASE 交易，我們的 FortiSASE 解決方案正在迅速獲得發展勢頭。第四季度，我們為 SASE 解決方案增加了 40 個新功能，包括對 150 多個 PoP 解決方案的支援——全球 150 個 PoP 位置以及保護薄邊緣設備的能力。我們看到了將 FortiSASE 連接到數以萬計的 SD-WAN 客戶的巨大機會。

Secure networking accounted for 68% of billings and represents our largest addressable market. Garner expects the secure networking market to overtake the traditional networking market by 2030. Fortinet is the #1 network security vendor with over half the global firewall deployment. In addition to physical firewall, we offer virtual, cloud-native and firewall-as-a-service solution, all based on our FortiOS operation system, consolidate over 30 networking and security function together.

安全網路佔帳單的 68%，代表了我們最大的潛在市場。 Garner 預計，到 2030 年，安全網路市場將超越傳統網路市場。Fortinet 是排名第一的網路安全供應商，擁有全球一半以上的防火牆部署。除了實體防火牆之外，我們還提供虛擬、雲端原生和防火牆即服務解決方案，所有這些解決方案均基於我們的 FortiOS 作業系統，將 30 多種網路和安全功能整合在一起。

Converged security and networking require more specialized computing power than traditional networking. Our FortiASIC-powered FortiGate delivers 3 to 10x more performance as indicated by secure computing rating with every new FortiGate product release. The latest FortiASIC SP5-based FortiGate70G with dual 5G in ruggedized format secure device within operational technology environment, it is off a great start as a Fortune 50 company signed an 8-figure operation technology deal featuring this new FortiGate in the fourth quarter.

融合安全和網路比傳統網路需要更專業的運算能力。每個新的 FortiGate 產品發布的安全計算評級表明，我們的 FortiASIC 支援的 FortiGate 的性能提高了 3 到 10 倍。最新的基於FortiASIC SP5 的FortiGate70G 在操作技術環境中具有雙5G 加固型安全設備，這是一個良好的開端，財富50 強公司在第四季度簽署了一項價值8 位數的操作技術協議，採用這款新型FortiGate。

Also included with our FortiOS operating system is a fully featured access point controller. Recently, we announced a new secure access point product, making us the first vendor to announce a business-grade WiFi 7 product.

我們的 FortiOS 作業系統還包括一個功能齊全的接入點控制器。最近，我們發布了一款新的安全接入點產品，使我們成為第一家發布企業級 WiFi 7 產品的供應商。

Fortinet has consistently been an innovative cybersecurity company, and this earnings call won't be complete without a few words about our AI. We have invested heavily in AI across every function and product. For over a decade, Fortinet has used machine learning and AI to provide advanced threat intelligence across more than 40 products from network, endpoint and application security. Our solutions apply AI and machine learning across expanded digital attack surface automatically, containing and remediating incidents within seconds where the industry average for detection and remediation takes several days.

Fortinet 一直是一家創新的網路安全公司，如果不介紹我們的人工智慧，這次財報電話會議就不算完整。我們在每個功能和產品的人工智慧方面都投入了大量資金。十多年來，Fortinet 使用機器學習和人工智慧為 40 多種網路、端點和應用程式安全產品提供進階威脅情報。我們的解決方案自動將人工智慧和機器學習應用於擴展的數位攻擊面，在幾秒鐘內包含和修復事件，而業界平均偵測和修復需要幾天的時間。

We have also been applying gen AI technology across our entire product line, allowing customers to optimize the security effectiveness and operational efficiency. FortiAI is already available on FortiSIEM and FortiSOAR, and more products will be adding this function in the coming months.

我們也將Gen AI技術應用於整個產品線，使客戶能夠優化安全有效性和營運效率。 FortiAI 已經在 FortiSIEM 和 FortiSOAR 上可用，未來幾個月將有更多產品添加此功能。

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.

在將電話轉接給 Keith 之前，我要感謝我們全球的員工、客戶、合作夥伴和供應商的持續支持和辛勤工作。

Thank you, Ken, and good afternoon, everyone. As Ken mentioned, billings grew 8.5%, driven by improved sales execution and early returns on our SASE and SecOp investments. The quarter benefited from what we saw as a muted seasonal budget flush and certain deals that had pushed from earlier quarters closing in the fourth quarter, driving a record 6 transactions, each of which were over $10 million. For these exceptionally large transactions, secure networking was 75% of the billings mix, while SecOps and SASE combined for another 20% plus, illustrating these companies' long-term commitment to both firewall and consolidation strategies.

謝謝你，肯，大家下午好。正如 Ken 所提到的，由於銷售執行力的提高以及我們的 SASE 和 SecOp 投資的早期回報，帳單增加了 8.5%。該季度受益於我們所看到的淡季預算充裕以及某些從前幾季在第四季度結束的交易中推動的交易，推動了創紀錄的 6 筆交易，每筆交易都超過 1000 萬美元。對於這些異常大的交易，安全網路佔計費組合的 75%，而 SecOps 和 SASE 合計佔另外 20% 以上，這說明了這些公司對防火牆和整合策略的長期承諾。

Taking a closer look at 3 of these 8-figure deals. One of these deals included mid-7 figures for SecOps and another mid-7 figures for SASE. The SASE solution covers a planned 350,000-user deployment at a top U.S. school district to provide a safe learning environment for students regardless of their physical location. We won this deal because of our operating systems ability to integrate 30-plus networking and security functions across SecOps, SASE and secure networking into a single unified platform providing consistent policies and automated responses.

仔細看看其中 3 筆 8 位數的交易。其中一筆交易包括 SecOps 的 7 美元左右的數字和 SASE 的另一筆約 7 美元的數字。 SASE 解決方案計劃在美國頂尖學區部署 35 萬名用戶，為學生提供安全的學習環境，無論他們身在何處。我們之所以贏得這筆交易，是因為我們的作業系統能夠將 SecOps、SASE 和安全網路中的 30 多種網路和安全功能整合到一個統一平台中，從而提供一致的策略和自動回應。

Our vision encompasses creating a secure foundation for our customers, allowing them to navigate today's evolving digital landscape with confidence while empowering them to embrace innovation without compromising security. Illustrating this vision, in another 8-figure deal, a large U.S. enterprise selected Fortinet to support their hybrid cloud architecture as they transition more of their workloads to the cloud. This competitive displacement reduced complexity and the customers' total cost of ownership while showcasing our ability to consolidate security functions onto our FortiOS platform.

我們的願景包括為客戶創建一個安全的基礎，使他們能夠自信地駕馭當今不斷變化的數位環境，同時使他們能夠在不影響安全性的情況下擁抱創新。在另一筆 8 位數的交易中，美國大型企業選擇 Fortinet 來支援其混合雲架構，因為他們將更多工作負載轉移到雲端中，這說明了這個願景。這種競爭性的替代降低了複雜性和客戶的總擁有成本，同時展示了我們將安全功能整合到 FortiOS 平台上的能力。

In a third 8-figure win, a large financial institution in the U.S. expanded their partnership with us with their first enterprise agreement with Fortinet. This EA includes the recently announced FortiGate Rugged 70G to secure their remote working and ATM environment. Built with AI-powered security, the Rugged 70G brings our customers the latest secure networking innovations while at the same time simplifying infrastructure and driving efficiencies.

美國一家大型金融機構與 Fortinet 簽訂了第一份企業協議，擴大了與我們的合作夥伴關係，這是第三次 8 位數的勝利。該 EA 包括最近發布的 FortiGate Rugged 70G，以保護其遠端工作和 ATM 環境。 Rugged 70G 採用人工智慧驅動的安全性構建，為我們的客戶帶來最新的安全網路創新，同時簡化基礎設施並提高效率。

In addition to exceeding the customers' performance expectations in a multi-vendor bake-off, we were successful by demonstrating the versatility of our single operating system and FortiOS platform across multiple use cases. Over the past several years, we have successfully addressed large customer buying preferences by increasing our investments in EA programs. In the fourth quarter, these contracts represented nearly 10% of our billings with a 3-year CAGR of over 80%.

除了在多供應商測試中超越客戶的效能預期之外，我們還透過在多個用例中展示單一作業系統和 FortiOS 平台的多功能性而獲得成功。在過去幾年中，我們透過增加對 EA 計劃的投資，成功滿足了大客戶的購買偏好。第四季度，這些合約占我們營業額的近 10%，3 年複合年增長率超過 80%。

Today, with over 35% of our billings beyond traditional and sometimes cyclical firewalls, Fortinet has become an increasingly diversified business over the past decade. Most recently, the diversification has included prioritizing investments in SASE, SecOps and other software and cloud-based solutions. The key element of this diversification is our single operating system strategy. FortiOS is the foundation of our comprehensive and innovative solutions that drive the convergence of networking and security while also consolidating multiple security capabilities.

如今，我們超過 35% 的帳單超出了傳統防火牆（有時是週期性防火牆），Fortinet 在過去十年中已成為一家日益多元化的企業。最近，多元化包括優先投資 SASE、SecOps 以及其他軟體和基於雲端的解決方案。這種多元化的關鍵要素是我們的單一作業系統策略。 FortiOS 是我們全面創新解決方案的基礎，該解決方案推動網路和安全的整合，同時整合多種安全功能。

Attempting to piece together best-of-breed solutions from multiple vendors can result in significant security gaps, slower AI-driven technology adoption and a slower pace of identifying, reporting and resolving security incidents. Organizations increasingly recognize that an integrated security solution run by a single operating system is the best way to improve their security posture.

試圖將多個供應商的最佳解決方案拼湊在一起可能會導致嚴重的安全漏洞、人工智慧驅動技術的採用速度變慢以及識別、報告和解決安全事件的速度變慢。組織越來越認識到，由單一作業系統運行的整合安全解決方案是改善其安全狀況的最佳方式。

Consolidation allows security solutions to share data and communicate with each other, reducing complexity, improving security effectiveness, easing the need for skilled labor and lowering the total cost of ownership. Consolidation drove our SecOps business to 44% growth, with strong growth from EDR, SIEM, e-mail security and NDR. Importantly, 94% of our SecOps business was from existing customers as companies look to execute their vendor consolidation strategy with Fortinet.

整合使安全解決方案能夠共享資料並相互通信，從而降低複雜性、提高安全有效性、減少對熟練勞動力的需求並降低總擁有成本。整合推動我們的 SecOps 業務成長 44%，EDR、SIEM、電子郵件安全和 NDR 實現強勁成長。重要的是，我們 94% 的 SecOps 業務來自現有客戶，因為公司希望透過 Fortinet 執行其供應商整合策略。

Digging a little deeper into the 11% of billings, the SecOps contributed to our business. The mid-enterprise segment is growing the fastest as these companies respond to the cybersecurity labor shortage and look to reduce complexity. Geographically, International Emerging is leading the way for SecOps, likely reflecting stronger economic conditions and extending the success of their 2022 pilot project.

更深入地研究 11% 的帳單，SecOps 對我們的業務做出了貢獻。隨著這些公司應對網路安全勞動力短缺並尋求降低複雜性，中型企業市場成長最快。從地域上看，國際新興公司正在引領 SecOps，這可能反映了更強勁的經濟狀況並延續了 2022 年試點計畫的成功。

Extending the single operating system and consolidation strategy further, our single vendor SASE solution billings increased 19% and accounted for 21% of total billings. Our SASE pipeline is up over 150% as more of our sales reps are building pipeline. As expected, the SMB segment was the largest mix of SASE customers at 55%, increasing 8 points quarter-over-quarter.

進一步擴展單一作業系統和整合策略，我們的單一供應商 SASE 解決方案的帳單成長了 19%，佔總帳單的 21%。隨著越來越多的銷售代表正在建立通路，我們的 SASE 通路成長了 150% 以上。正如預期的那樣，SMB 細分市場是 SASE 客戶的最大組合，佔 55%，環比成長 8 個百分點。

Fortinet has one of the least complex and most customer-friendly SASE pricing models. Our one bundle and one operating system solution provides all the standard capabilities, including secure web gateway and firewall as a service for secure Internet access; zero trust network access and SD-WAN from our points of presence, providing secure private access; as well as CASB and data loss protection. Our single vendor SASE solution also includes integration to SOC as a service and FortiClient, which provides the customer with endpoint protection and vulnerability scanning.

Fortinet 擁有最不複雜且對客戶最友善的 SASE 定價模式之一。我們的一攬子和一個作業系統解決方案提供了所有標準功能，包括安全 Web 閘道和防火牆即安全網際網路存取服務；從我們的存在點進行零信任網路存取和 SD-WAN，提供安全的私人存取；以及 CASB 和資料遺失保護。我們的單一供應商 SASE 解決方案還包括與 SOC 即服務和 FortiClient 的集成，為客戶提供端點保護和漏洞掃描。

Regarding our focus and investments in SASE and SecOps, SD-WAN customers represented 37% of new SASE customers. Over 90% of our global sales force has completed mandatory sales training for both SASE and SecOps. In 2023, 60,000 customers and partners attended at least 1 of our 27 training workshops. Lastly, we've increased our worldwide points of presence coverage to over 150 locations.

關於我們對 SASE 和 SecOps 的關注和投資，SD-WAN 客戶佔新 SASE 客戶的 37%。我們超過 90% 的全球銷售人員已完成 SASE 和 SecOps 的強制性銷售培訓。 2023 年，60,000 名客戶和合作夥伴至少參加了我們 27 個培訓研討會中的 1 個。最後，我們將全球服務點覆蓋範圍擴大到 150 多個地點。

Turning now to the quarterly financial results. Total billings were $1.86 billion, up 8.5%, driven by improved sales execution and the strong rebound in the large enterprise segment, together with 6,400 new logos. On a billings by geo basis, the U.S. led the way with mid-teens growth driven by strong performance in the U.S. enterprise. In terms of industry verticals, government and financial services, each with growth of approximately 25%, were our top 2 industry verticals. Wealth service provider and retail remained under pressure.

現在轉向季度財務業績。由於銷售執行力的改善、大型企業部門的強勁反彈以及 6,400 個新商標的推動，總銷售額達到 18.6 億美元，成長 8.5%。從按地域劃分的帳單來看，在美國企業強勁表現的推動下，美國以十幾歲左右的增長領先。在垂直產業方面，政府和金融服務分別成長約 25%，是我們前 2 名的垂直產業。財富服務提供者和零售業仍面臨壓力。

The average contract term was 30 months, up 2 months year-over-year and sequentially. Adjusting for the 6 8-figure deals, the normalized contract term was consistent year-over-year and sequentially at 28 months.

平均合約期限為30個月，較去年同期增加2個月。在對 6 筆 8 位數的交易進行調整後，標準化合約期限與去年同期和上一季保持一致，均為 28 個月。

Turning to revenue and margins. Total revenue grew 10% to $1.42 billion, driven by strong services revenue growth. Service revenue of $927 million grew 25%, accounting for 66% of total revenue, a mix shift of 8 points. Service revenue growth was driven by strength in SecOps, SASE and other security subscriptions.

轉向收入和利潤。受服務收入強勁成長的推動，總營收成長 10%，達到 14.2 億美元。服務收入為 9.27 億美元，成長 25%，佔總收入的 66%，混合變化為 8 個百分點。服務收入的成長是由 SecOps、SASE 和其他安全訂閱的實力所推動的。

Product bookings were up. However, product revenue decreased 10% to $488 million due to a tough compare. Product revenue grew 43% in the prior year period, benefiting from the drawdown of backlog.

產品預訂量增加。然而，由於嚴格的比較，產品收入下降了 10% 至 4.88 億美元。受惠於積壓訂單的減少，產品收入較上年同期成長 43%。

Total gross margin of 78.5% was up 90 basis points and exceeded the high end of the guidance range by 200 basis points, driven by the increase in service gross margin and the 8-point mix shift from product revenue to service revenue. Service gross margins were up 140 basis points as service revenue growth outpaced labor costs and benefited from the mix shift towards higher-margin security subscription services. Product gross margins were down 510 basis points as we continue to see margin pressure related to inventory levels and product transitions.

受服務毛利率上升以及產品收入轉變為服務收入8個百分點的推動，總毛利率達到78.5%，成長90個基點，超出指導區間上限200個基點。由於服務收入成長超過了勞動力成本，並受益於向利潤率更高的證券訂閱服務的組合轉變，服務毛利率上升了 140 個基點。由於我們繼續看到與庫存水準和產品轉型相關的利潤壓力，產品毛利率下降了 510 個基點。

Operating margin was very strong at 32%, 3.5 points above the high end of our guidance range. And operating income of $454 million was $40 million above the high end of the implied guidance range, reflecting aggressive cost management.

營業利益率非常強勁，達到 32%，比我們指導範圍的上限高出 3.5 個百分點。營業收入為 4.54 億美元，比隱含指導範圍的上限高出 4,000 萬美元，反映出積極的成本管理。

Looking to the statement of cash flow summarized on Slide 17 and 19. Total cash taxes paid in the quarter were $341 million, including $210 million in estimated tax payments that were deferred from earlier quarters in accordance with U.S. and California onetime regulatory relief, resulting in free cash flow of $165 million. Capital expenditures were $27 million. We repurchased approximately 16.8 million shares at a cost of $895 million for an average cost per share of $53.29.

請參閱投影片17 和19 中總結的現金流量表。本季支付的現金稅總額為3.41 億美元，其中包括根據美國和加州一次性監管減免政策從前幾季遞延的2.1 億美元估計稅款，導致自由現金流為 1.65 億美元。資本支出為 2700 萬美元。我們以 8.95 億美元的成本回購了約 1,680 萬股股票，每股平均成本為 53.29 美元。

Moving to an overview of our 2023 full year results. Billings surpassed the $6 billion mark, totaling $6.4 billion and up 14%. Total revenue grew 20% to $5.3 billion, and we added over 25,000 new customers. Service revenue grew 28% to $3.4 billion, driven by a 33% increase in security subscriptions. Product revenue grew 8% to $1.9 billion on a very tough compare after growing 42% in 2022.

接下來概述我們的 2023 年全年業績。比林斯突破 60 億美元大關，總計 64 億美元，成長 14%。總營收成長 20%，達到 53 億美元，我們增加了 25,000 多個新客戶。在安全訂閱成長 33% 的推動下，服務收入成長了 28%，達到 34 億美元。產品收入在 2022 年成長 42% 後，成長 8% 至 19 億美元，這是一個非常艱難的比較。

Gross margin was up 110 basis points to 77.4%, benefiting from the revenue mix shift to service revenue. Operating margin also increased 110 basis points to a calendar year record of 28.4%, resulting in operating income of $1.5 billion. The GAAP operating margin of over 23% continues to be one of the highest in the industry.

由於收入結構向服務收入的轉變，毛利率成長了 110 個基點，達到 77.4%。營業利益率也成長了 110 個基點，達到歷年最高記錄 28.4%，營業收入達 15 億美元。超過 23% 的 GAAP 營業利潤率仍然是業內最高的之一。

Earnings per share increased 37% to $1.63. Free cash flow was a record at over $1.7 billion. Free cash flow margin was 33%. Including real estate investments, the adjusted free cash flow margin came in at 35%. For the year, we repurchased approximately 20 million shares at a cost of $1.5 billion for an average cost per share of $55.25.

每股收益成長 37% 至 1.63 美元。自由現金流創歷史新高，超過 17 億美元。自由現金流利潤率為33%。包括房地產投資在內，調整後的自由現金流利潤率為 35%。今年，我們以 15 億美元的成本回購了約 2,000 萬股股票，平均每股成本為 55.25 美元。

To summarize on Slide 20. Fortinet has returned $5.3 billion to shareholders via share repurchases in the past 3 years. Earlier this year, the Board increased the share repurchase authorization by an additional $500 million, bringing our remaining share repurchase authorization to approximately $1 billion.

總結投影片 20。過去 3 年，Fortinet 透過股票回購向股東返還了 53 億美元。今年早些時候，董事會將股票回購授權額外增加了 5 億美元，使我們剩餘的股票回購授權達到約 10 億美元。

Moving on to guidance. As we look to 2024, several factors impact guidance, including the firewall industry cycle, remnants of 2022 and 2023 supply chain activity and customer buying behavior. Prior firewall product life cycles have lasted approximately 4 years with 8 quarters of higher growth followed by 8 quarters of slower growth.

繼續指導。展望 2024 年，有幾個因素會影響指引，包括防火牆產業週期、2022 年和 2023 年供應鏈活動的殘餘以及客戶購買行為。先前的防火牆產品生命週期持續約 4 年，其中 8 個季度增長較快，隨後 8 個季度增長較慢。

Looking at our bookings. The current product cycle decline started approximately 4 quarters ago in Q1 of '23, suggesting that we should experience the bottom of the cycle in early 2024. Worldwide supply chain challenges resulted in elevated purchasing and record backlog, distorting year-over-year growth comparisons and creating a period of project and product digestion.

看看我們的預訂。目前的產品週期下降始於大約 4 個季度前的 23 年第一季度，這表明我們應該在 2024 年初經歷週期的底部。全球供應鏈挑戰導致採購增加和創紀錄的積壓，扭曲了同比增長比較創造一個項目和產品消化期。

The backlog drawdown in the first half of 2023 provides a mid- to high single-digit percentage tailwind to billings and low double-digit tailwind to product revenue growth for that period. The year-over-year product revenue comparisons in the first half of 2024 will be the most challenged, while we expect service revenues to grow sequentially in the low single digits in the first quarter and to grow sequentially at low to mid-single digits for the remainder of 2024. In addition, we expect product revenue growth will continue to be impacted by project and product digestion in 2024, and we believe the selling environment should improve in the second half of 2024 and into 2025.

2023 年上半年的積壓訂單減少為該時期的帳單帶來了中高個位數百分比的推動力，並為該時期的產品收入增長提供了低兩位數的推動力。 2024 年上半年的年比產品收入比較將面臨最大的挑戰，而我們預計第一季服務收入將按低個位數連續增長，並在2024 年上半年以低個位數到中個位數連續增長。2024年 剩餘時間。此外，我們預計2024年產品收入成長將繼續受到專案和產品消化的影響，我們認為銷售環境應在2024年下半年和2025年有所改善。

As a reminder, our first quarter and full year outlook, which are summarized on Slides 23 and 24, is subject to the disclaimers regarding forward-looking information that Peter provided at the beginning of the call.

提醒一下，我們在投影片 23 和 24 中總結的第一季和全年展望受到 Peter 在電話會議開始時提供的有關前瞻性資訊的免責聲明的約束。

For the first quarter, we expect billings in the range of $1.39 billion to $1.45 billion, which at the midpoint represents a decline of 5.5%; revenue in the range of $1.3 billion to $1.36 billion, which at the midpoint represents growth of 5.4%; non-GAAP gross margin of 76.5% to 77.5%; non-GAAP operating margin of 25.5% to 26.5%; non-GAAP earnings per share of $0.37 to $0.39, which assumes a share count of between 775 million and 785 million; capital expenditures of $220 million to $250 million, including a real estate transaction that closed earlier in the quarter; a non-GAAP tax rate of 17%; and cash taxes of $30 million.

我們預計第一季的營收將在 13.9 億美元至 14.5 億美元之間，中間值表示下降 5.5%；營收在 13 億美元至 13.6 億美元之間，中間值成長 5.4%；非公認會計準則毛利率為 76.5% 至 77.5%；非公認會計準則營業利益率為 25.5% 至 26.5%；非公認會計準則每股收益為 0.37 美元至 0.39 美元，假設股票數量介於 7.75 億股至 7.85 億股之間；資本支出為 2.2 億至 2.5 億美元，其中包括本季稍早完成的房地產交易；非公認會計準則稅率為 17%；和3000萬美元的現金稅。

For the full year, we expect billings in the range of $6.4 billion to $6.6 billion; revenue in the range of $5.715 billion to $5.815 billion, which at the midpoint represents growth of 9%; service revenue in the range of $3.92 billion to $3.97 billion, which at the midpoint represents growth of 17%; non-GAAP gross margin of 76% to 78%; non-GAAP operating margin of 25.5% to 27.5%; non-GAAP earnings per share of $1.65 to $1.70, which assumes a share count of between 785 million and 795 million; capital expenditures of $370 million to $420 million; non-GAAP tax rate of 17%; and cash taxes of $520 million.

我們預計全年的營收將在 64 億美元至 66 億美元之間；營收在 57.15 億美元至 58.15 億美元之間，中間值成長 9%；服務收入在 39.2 億美元至 39.7 億美元之間，中間值成長 17%；非公認會計準則毛利率為 76% 至 78%；非公認會計準則營業利益率為 25.5% 至 27.5%；非公認會計準則每股收益為 1.65 至 1.70 美元，假設股票數量在 7.85 億至 7.95 億之間；資本支出3.7億至4.2億美元；非公認會計準則稅率為 17%；和5.2億美元的現金稅。

I look forward to updating you on our progress in the coming quarters, and I'll now hand the call back over to Peter to begin the Q&A session.

我期待著向您介紹我們在未來幾季的最新進展，現在我將把電話轉交給 Peter 以開始問答環節。

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

謝謝。 （接線生說明）接線員，請撥打電話詢問問題。

(Operator Instructions) Our first question comes from the line of Fatima Boolani with Citi.

（操作員說明）我們的第一個問題來自花旗銀行的法蒂瑪·布爾尼（Fatima Boolani）。

Keith, I really appreciate you fleshing out some of the factors that are going to be creating volatility in your top line performance. But what I wanted to focus on was how you are able to hold the line on the expense structure in light of these volatilities, both on the revenue and billings front. So if you can just help us appreciate how you're able to manage for profitability. And then by extension, these top line volatilities, how should we think about the free cash flow cadence against your assumptions on the OpEx structure, along with the fact that you have seen lumpy, very large deals that have positively influenced duration for now?

基思，我真的很感謝你詳細說明了一些會導致你的營收表現波動的因素。但我想重點關注的是，鑑於收入和帳單方面的這些波動，您如何能夠控制費用結構。因此，如果您能幫助我們了解您如何管理盈利能力。然後，推而廣之，這些收入波動，我們應該如何根據您對營運支出結構的假設來考慮自由現金流節奏，以及您已經看到目前對持續時間產生積極影響的波動性、非常大的交易這一事實？

Yes. I think kind of going backwards in terms of the very large deals that we talked about, I think experience has showed us in the second half or the middle part of last year that we're well served not to get too far ahead of ourselves in terms of forecasting those deals. And it's difficult to understand when they're actually going to close and what the specific terms are going to be with those. So I think we kind of set those aside, and you saw that in some of the performance in the fourth quarter.

是的。我認為就我們談到的非常大的交易而言，有點倒退，我認為去年下半年或中期的經驗向我們表明，我們最好不要在這方面走得太遠。預測這些交易的條款。而且很難理解它們何時真正關閉以及具體條款是什麼。所以我認為我們把這些放在一邊，你在第四季的一些表現中看到了這一點。

In terms of margins, I think that sometimes the business model is easier than people think it is when it comes to margin because services provides so much of the business. If the business model is 2/3 services and it's throwing out a very rich margin even in a period of time where you're going through the firewall refresh cycle, you're still seeing your margins hold up fairly nicely. I think there's also significant economies of scale involved in the services line, whether it's the support or the security subscription.

就利潤率而言，我認為有時商業模式比人們想像的更容易，因為服務提供瞭如此多的業務。如果商業模式是 2/3 服務，即使在您經歷防火牆更新周期的一段時間內，它也會產生非常豐厚的利潤，那麼您仍然會看到利潤保持得相當不錯。我認為服務線也具有顯著的規模經濟，無論是支援還是安全訂閱。

And then the last comment I would offer is that I think the breadth of both the SecOps solutions and the SASE solutions together are serving to spread some of the incremental costs for the hosting solutions and bringing those to market.

我要提出的最後一個評論是，我認為 SecOps 解決方案和 SASE 解決方案的廣度一起有助於分攤託管解決方案的一些增量成本並將其推向市場。

Our next question will come from the line of Hamza Fodderwala with Morgan Stanley.

我們的下一個問題將來自摩根士丹利的 Hamza Fodderwala。

Ken, over the last several years, we've seen some pretty significant increases in network traffic, whether it be more cloud adoption, more work from home, et cetera. And that led to a pretty healthy firewall refresh over the last several years. I'm curious, and I know it's very early innings, but how do you see sort of the adoption of generative AI, particularly in some of these hybrid context, impacting network traffic going forward? And do you think that that's going to incent more firewall refresh to secure that growing network traffic?

Ken，在過去的幾年裡，我們看到網路流量出現了相當顯著的成長，無論是更多的雲端採用、更多的在家工作等等。這導致了過去幾年防火牆的一次相當健康的更新。我很好奇，我知道現在還處於早期階段，但您如何看待生成式人工智慧的採用，特別是在某些混合環境中，對未來網路流量的影響？您認為這會刺激更多的防火牆更新以保護不斷增長的網路流量嗎？

Long term, definitely, we see that gen AI will increase the traffic a lot and also made a lot of security operations. It's -- we also see the refresh of the product cycle. We do provide some kind of historic data there, but we also see a lot of new opportunity that is coming with the refresh. Like we mentioned in the script, some of the OT technology area and even supporting some work from home and also some other enterprise internal segmentation are replacing the traditional switch with the network security firewall that we call the convergence also starting to get more and more adopted by the big enterprise.

從長遠來看，我們肯定會看到新一代人工智慧將大大增加流量，並且也進行大量的安全操作。我們也看到產品週期的更新。我們確實在那裡提供了某種歷史數據，但我們也看到了刷新帶來的許多新機會。正如我們在腳本中提到的，一些OT技術領域甚至支持一些在家工作以及其他一些企業內部細分正在用我們稱之為融合的網路安全防火牆取代傳統交換機，也開始得到越來越多的採用由大企業。

So that's also the new market compared to refreshed traditional firewall. But I agree with you, the next phase connection, the traffic will keep increasing. Especially, more devices will be connected online and also more people work remotely. And at the same time, the AI also kind of generate quite a lot of additional data, which also kind of need to be secured. So we see a pretty good potential for the long-term growth.

因此，與更新的傳統防火牆相比，這也是新的市場。但我同意你的觀點，下一階段的連接，流量會不斷增加。特別是，更多的設備將聯網，更多的人遠端工作。同時，人工智慧也會產生大量額外數據，這些數據也需要受到保護。因此，我們看到了長期成長的良好潛力。

Our next question will come from the line of Brian Essex with JPMorgan.

我們的下一個問題將來自摩根大通的布萊恩·埃塞克斯 (Brian Essex)。

I guess maybe for Ken, could you dig in a little bit to the SASE performance of the quarter? If I recall correct -- and I don't know what kind of metrics you can break out to give us a little bit more color behind that. But if I recall, you're doing quite well with kind of the SD-WAN component. And we're trying to kind of pivot to better penetrate the secure service edge component. Maybe a little bit of color as you've pivoted towards, I guess, focusing a little bit more on SecOps and SASE. What does the nature of the deals look like this quarter? What do you see in the pipeline for SASE? And are you getting better traction with secure service edge? And does that include SD-WAN? Or is it relatively agnostic to SD-WAN?

我想 Ken 能否深入了解本季的 SASE 表現？如果我沒記錯的話——我不知道你可以提出什麼樣的指標來提供我們更多的資訊。但如果我沒記錯的話，您在 SD-WAN 元件方面做得非常好。我們正在嘗試轉向更好地滲透安全服務邊緣組件。我想，當您轉向更多地關注 SecOps 和 SASE 時，可能會有一些色彩。本季交易的性質如何？您對 SASE 的發展有何看法？您是否透過安全的服務優勢獲得了更好的吸引力？這包括 SD-WAN 嗎？還是它對 SD-WAN 相對不可知？

You probably can recall, in the last earnings call, we started more focus on SASE, secure ops and started tracking that separately. And also during Keith's script, we also mentioned 90% of our field sales force also been trained, certified for SASE, secure ops. And also all the 6 8-figure deals, include all the 3, secure networking, SASE and secure ops. So we do see it grow faster, especially during the current kind of environmental refresh cycle.

您可能還記得，在上次財報電話會議中，我們開始更專注於 SASE、安全操作，並開始單獨追蹤。在 Keith 的腳本中，我們也提到 90% 的現場銷售人員也接受過 SASE 安全操作訓練和認證。還有所有 6 項 8 位數的交易，包括所有 3 項：安全網路、SASE 和安全操作。所以我們確實看到它成長得更快，特別是在當前的環境更新周期中。

We do see the SASE, which is more consumption model, and also secure ops, which can lower the operational cost, probably grow faster than the traditional secure networking area. So that's where we kind of redirect some focus. Resource are more focused on these 2 areas. We see a pretty huge success, grow both the pipeline and also even the deal. We closed some of the first 8-figure SASE deal, which also makes me feel pretty excited.

我們確實看到了 SASE，這是一種更多的消費模式，還有安全操作，可以降低營運成本，可能比傳統的安全網路領域成長得更快。所以這就是我們轉移注意力的地方。資源更集中在這兩個領域。我們看到了巨大的成功，管道甚至交易都在成長。我們完成了第一筆 8 位數的 SASE 交易，這也讓我感到非常興奮。

I think it's -- we do see this is -- we have some advantage actually, leverage the -- whether the SD-WAN huge deployment we have or the firewall huge deployment and also the single OS-based SASE solution, which integrate all the SD-WAN, all the SASE function into a single FortiOS, which is a huge advantage for whether the customer himself or even for some service provider offer the SASE service to their customer base. So it's a pretty strong growth. We see it's a pretty good move we had.

我認為——我們確實看到這一點——我們實際上有一些優勢，利用——無論是我們擁有的 SD-WAN 大型部署還是防火牆大型部署以及基於單一作業系統的 SASE 解決方案，它集成了所有SD-WAN，將所有SASE 功能整合到一個FortiOS 中，這對於客戶本身甚至某些服務提供者向其客戶群提供SASE 服務來說都是一個巨大的優勢。所以這是一個相當強勁的成長。我們認為這是一個非常好的措施。

Yes, Brian, I would kind of follow that up with the results, if you will, what Ken just talked about. And to your point, I think you're kind of asking us if you take -- if you focus more on the SSE element of SASE and less on SD-WAN, what does that mean. And I think that we have a pretty interesting horse race developing internally. If you look at what you would probably think of as the SSE component and the SecOps business, both growing in the 40% range. SecOps won the quarter. We'll see how SASE does, but they're very, very close at this point in time in terms of growth. And then I think the other metric we gave is we talked about the pipeline growth. And that 150% would really be around what you would think of as the SSE component.

是的，布萊恩，如果你願意的話，我會跟進肯剛才談到的結果。就您的觀點而言，我認為您是在問我們，如果您更專注於 SASE 的 SSE 元素，而不是 SD-WAN，這意味著什麼。我認為我們內部正在進行一場非常有趣的賽馬比賽。如果你看看你可能會想到的 SSE 元件和 SecOps 業務，兩者的成長都在 40% 的範圍內。 SecOps 贏得了這個季度的勝利。我們將看看 SASE 的表現如何，但就成長而言，他們目前非常非常接近。然後我認為我們給出的另一個指標是我們討論了管道成長。這 150% 實際上就是您所認為的 SSE 成分。

Our next question will come from the line of Tal Liani with Bank of America.

我們的下一個問題將來自塔爾·利亞尼與美國銀行的聯繫。

I'll ask 2 questions together. It's easier. CapEx is going up materially next year [this year]. What is the outlook for free cash flow margin? What happens to free cash flow this year? Can you actually drill down to the CapEx? What drives the increase? And then what happens to free cash flow margin?

我一起問2個問題。更容易了。明年[今年]資本支出將大幅增加。自由現金流利潤率的前景如何？今年的自由現金流會發生什麼變化？你真的能深入了解資本支出嗎？是什麼推動了成長？那麼自由現金流邊際會發生什麼變化呢？

The second question I have is on the business. This quarter, billings were supposed to be weak, but they're very strong. Next quarter, we expected roughly 5%, 6% declines, and that's what you're guiding to. So that means maybe there was some pull forward but kind of in line-ish. So what happens this quarter that billings is so strong versus expectations? What drove the strength? And why isn't it -- why don't we see it continue into the next quarter?

我的第二個問題是關於生意的。本季的營業額本應疲弱，但實際上卻非常強勁。下個季度，我們預計將下降約 5%、6%，這就是你們所指導的。所以這意味著也許有一些向前推動，但有點排隊。那麼本季發生了什麼導致帳單比預期如此強勁呢？是什麼驅動了力量？為什麼不是——為什麼我們看不到這種情況持續到下個季度？

You want to take CapEx or deals? Tal, thanks for calling in. On CapEx, I think we'll continue to build out both things that we need for our engineering team as we look forward and best places to work in labs and so forth. So I think you're seeing an element of that, but also our ability to continue to deliver hosted -- the wide range of hosted solutions. I think those are the things that are driving CapEx. And as we said before, we know that there's a bias here of making real estate investment decisions so that I as a long-term investor, and with that, the ROI over a longer period of time has always been very enticing to us.

您想獲取資本支出或交易嗎？ Tal，感謝您的來電。關於資本支出，我認為我們將繼續為我們的工程團隊打造我們所需要的東西，因為我們期待著實驗室等的最佳工作場所。因此，我認為您不僅看到了其中的一個要素，還看到了我們繼續提供託管的能力——廣泛的託管解決方案。我認為這些都是推動資本支出的因素。正如我們之前所說，我們知道在做出房地產投資決策時存在偏見，因此我作為長期投資者，因此，較長時間內的投資回報率對我們來說一直非常有吸引力。

And I think to your second question on the spike that we saw in performance that we're very pleased with in the fourth quarter and then how does that -- what does that translate to in the first quarter, a couple of things. One is, as we talked about during the call, the comps in the first quarter of 2024 are probably among the most challenging on the billings line and the product revenue line that we think we're going to see. And then I think also the read through on doing 6 8-figure deals in the fourth quarter and being a record, obviously, put a lot of tailwind to that fourth quarter number. We like 8-figure deals, but I don't know that we're really in the business of forecasting them each and every quarter as we go forward.

我認為，關於你的第二個問題，我們對第四季度的業績激增感到非常滿意，那麼這會在第一季轉化為什麼，有幾件事。一個是，正如我們在電話會議中談到的，2024 年第一季的比較可能是我們認為將看到的比林斯線和產品收入線上最具挑戰性的。然後我認為，通讀第四季完成的 6 筆 8 位數交易並創下紀錄，顯然為第四季的數字帶來了巨大的推動力。我們喜歡 8 位數的交易，但我不知道我們是否真的在每個季度預測這些交易。

Also, we kind of own probably high percentage of some infrastructure, some real estate than some of our competitors. That actually gave us much lower cost -- operation cost going forward, which also will help drive the future growth, especially on a service like SASE. And that also give us a better margin long term.

此外，與我們的一些競爭對手相比，我們擁有的某些基礎設施、某些房地產的比例可能很高。這實際上大大降低了我們的成本——未來的營運成本，這也將有助於推動未來的成長，尤其是像 SASE 這樣的服務。從長遠來看，這也為我們帶來了更好的利潤。

And free cash flow specifically because your stock trades on free cash flow, should we expect free cash flow to go down? Or is it -- can you offset the increase in CapEx with something else?

自由現金流特別是因為你的股票是在自由現金流上交易的，我們是否應該預期自由現金流會下降？或者是——你能用其他東西來抵銷資本支出的增加嗎？

Well, obviously, there's a lot of levers that come into free cash flow. I think that where we look at in terms of where The Street was for free cash flow in 2024 for the full year, I think that's in the ballpark at this early stage. We don't really guide to free cash flow, as you know. But I think the puts and takes, one is CapEx, which is not all that far away from what we saw in 2023. But then you have the operating profits, the billings growth, et cetera. You know all the components that go into it.

顯然，有許多槓桿可以影響自由現金流。我認為，從華爾街 2024 年全年自由現金流的角度來看，我認為這在早期階段是大致情況。如您所知，我們並沒有真正指導自由現金流。但我認為看跌期權和看跌期權，其中之一是資本支出，這與我們在 2023 年看到的情況相差不遠。但是你還有營業利潤、比林斯增長等等。您知道其中的所有組件。

Our next question will come from the line of Gabriela Borges with Goldman Sachs.

我們的下一個問題將來自高盛的加布里埃拉·博爾赫斯 (Gabriela Borges)。

I'm looking to better understand the SASE dynamics that you're seeing at the lower end of the market versus the higher end. So maybe any commentary on the SMB part of the SASE pipeline, what you're seeing in terms of willingness and readiness to convert, what you're seeing in terms of competition and what you're seeing in terms of average deal sizes in terms of uplift when you get a SASE deal versus a regular firewall deal.

我希望更好地了解您在低端市場與高端市場看到的 SASE 動態。因此，也許對 SASE 管道的 SMB 部分有任何評論，您在轉換的意願和準備方面看到了什麼，您在競爭方面看到了什麼以及您在平均交易規模方面看到了什麼與常規防火牆交易相比，當您獲得SASE 交易時，會得到提升。

Yes. SMB is pretty interesting. We did quite well in the SMB market, even for the traditional firewall, bigger than any other competitors. But also, SMB has a pretty low percentage of a customer actually using any network security because -- whether the management costs or some other people cost, all these kind of things. So that's where SASE [pioneer] definitely help in some SMB customers. But also, we see kind of the long-term combined both whether work from home or where we're pretty strong like a couple of years ago in the retail brand [drove] solution there also helping us kind of like doing well in SMB.

是的。 SMB 非常有趣。我們在中小企業市場上做得很好，即使是傳統防火牆，也比其他競爭對手都要大。而且，中小型企業實際使用任何網路安全的客戶比例相當低，因為無論是管理成本還是其他人員成本，所有這些都是如此。因此，這就是 SASE [先鋒] 肯定能為某些中小企業客戶提供幫助的地方。而且，我們看到了一種長期的結合，無論是在家工作，還是像幾年前我們在零售品牌[驅動]解決方案中相當強大的地方，也幫助我們在中小型企業中取得好成績。

And also the new product refresh, which leverage SP5, we're only half the way. Probably towards the second half of this year, we have more product come in using the new SP5. That's also keeping a handsome position there. Yes, it's -- like I said, it's more kind of consumption model. In the current environment, it'd probably be more attractive compared to a CapEx model. So that's where we see both SMB, enterprise, they do have some more interest to do this kind of OpEx model. Maybe Keith and John, any addition?

還有利用 SP5 的新產品更新，我們只完成了一半。可能到今年下半年，我們就會有更多的產品使用新的 SP5。這也在那裡保持了一個不錯的位置。是的，就像我說的，這更像是一種消費模式。在當前環境下，與資本支出模型相比，它可能更具吸引力。因此，我們看到中小企業和企業確實對這種營運支出模式更有興趣。也許是基斯和約翰，還有補充嗎？

I would just say that the success we had in enterprise -- this is John Whittle, by the way. With the number of 8-figure deals and having over 0.5 million customers out there really bodes well both in enterprise and in the SMB market because we've got so many customers out there that are testing our product and so many customers that are providing feedback along the way to improve our products that it's a real testament to the products and gives both enterprises and the SMB comfort in buying our products going forward.

我只想說，我們在企業領域的成功——順便說一下，這是約翰·惠特爾（John Whittle）。 8 位數的交易數量和超過 50 萬的客戶對於企業和中小企業市場來說確實是個好兆頭，因為我們有很多客戶正在測試我們的產品，也有很多客戶正在提供反饋在改進我們產品的過程中，這是對產品的真正證明，讓企業和中小企業在未來購買我們的產品時感到放心。

And you can kind of put yourself into a customer's shoes and say, okay, some of the most discerning customers are spending 8 figures on these products and services, and we have strength in SMB and upmarket. I think that bodes really well for kind of the smaller segments of the market and the larger segments of the market going forward. I think that's a real headline from this quarter in terms of the real success we had with some of the most discerning customers out there.

您可以設身處地為客戶著想，說，好吧，一些最挑剔的客戶在這些產品和服務上花費了 8 位數，而我們在中小型企業和高端市場有實力。我認為這對於未來較小的市場部分和較大的市場部分來說確實是個好兆頭。我認為，就我們與一些最挑剔的客戶取得的真正成功而言，這是本季度真正的頭條新聞。

Our next question will come from the line of Saket Kalia with Barclays.

我們的下一個問題將來自 Saket Kalia 與巴克萊銀行的關係。

Keith, maybe for you. I just want to talk about the shape of billings a little bit here in 2024. I think at the midpoint for this year, billings is about 2%, give or take, at the midpoint. How should we sort of think about the exit rate on billings this year? I know that was something we talked about in prior quarters. I'm not sure if that's something that we can -- that we could just revisit. And then maybe relatedly, how -- it was great to get the segment detail, by the way, across the 3 segments. How are we sort of thinking about the rough growth ranges for those 3 segments as part of this guide?

基思，也許適合你。我只想稍微談談 2024 年比林斯的形狀。我認為今年的中點，比林斯大約是 2%，或多或少，處於中點。我們該如何看待今年比林斯的退出率？我知道這是我們在前幾個季度討論過的事情。我不確定我們是否可以重新審視這一點。然後也許相關的是，順便說一句，跨 3 個細分市場獲得細分詳細資訊真是太棒了。作為本指南的一部分，我們如何考慮這 3 個細分市場的粗略成長範圍？

Yes. I think on the billings trend, if you will, I would go back to our prior conversations about the backlog created the headwind, if you will, in the first half of the year. And I think you heard some of the tone of that, if you will, right, before I gave the guidance this year. And that would suggest that our expectations are that billings growth rate should be improving as we move through -- on a quarterly basis as we move through the year.

是的。我認為關於比林斯趨勢，如果你願意的話，我會回到我們之前關於積壓造成逆風的對話，如果你願意的話，在今年上半年。我想，在我今年給予指導之前，如果你願意的話，你已經聽到了一些這樣的語氣。這表明我們的預期是，隨著我們的進展，比林斯的成長率應該會隨著我們的進展而有所改善——隨著我們全年的進展，每季都會有所改善。

I think we probably made it a little bit tougher on the sales team for the fourth quarter of 2024 by having such a strong fourth quarter of 2023. But I think they're going to do fairly well there. And then I'm sorry, the second part of the question, Saket, was...

我認為，由於 2023 年第四季的表現如此強勁，我們可能會讓 2024 年第四季的銷售團隊面臨一些困難。但我認為他們在那裡會做得相當好。然後我很抱歉，問題的第二部分，Saket，是......

It was just on the 3 segments, right, secure networking, SASE and SecOps. It was helpful to get sort of the growth ranges for this quarter. I'm not going to hold you to it, but how do you think about sort of the relative growth rates for those 3 segments this year?

它只涉及 3 個部分，即安全網路、SASE 和 SecOps。了解本季的成長範圍很有幫助。我不會讓你堅持下去，但你如何看待今年這三個細分市場的相對成長率？

And maybe I'll answer that in the context of average contract term or duration because I know there's a lot of concern or questions have been raised about will that shorten the contract term. And you heard the data that we gave during the call. These 2 segments, we have a business that basically runs on average contract terms, call it, 2 years, 2.25, if you will. SASE and SecOps business mix would probably be billing 1 year in advance when you look at the competitors and so forth.

也許我會在平均合約期限或期限的背景下回答這個問題，因為我知道對於是否會縮短合約期限存在許多擔憂或疑問。您聽到了我們在通話期間提供的數據。這兩個部分，我們的業務基本上是按照平均合約條款運行，如果你願意的話，可以稱之為2年、2.25年。當您查看競爭對手等資訊時，SASE 和 SecOps 業務組合可能會提前一年計費。

So that kind of gives you the range. It's going to take a while for SASE and SecOps to really impact that contract term or duration. And I think the read-through to that in terms of -- we're excited about the opportunity with SASE and SecOps. If we have outsized growth there, we'll be very pleased with it. But I don't know that we're hanging our head on something completely out of the realm of reality, if you will, for 2024 from SASE or SecOps.

這樣就給了你範圍。 SASE 和 SecOps 需要一段時間才能真正影響合約期限或持續時間。我認為通讀一遍——我們對 SASE 和 SecOps 的機會感到興奮。如果我們在那裡有超額成長，我們會感到非常高興。但我不知道我們是否會在 2024 年從 SASE 或 SecOps 中完全脫離現實領域（如果你願意的話）。

Yes. For the 3 segments, I don't have the latest market data. But from Q3, the firewall market is kind of flat year-over-year. Q4, we probably will read out the company reporting. But it's -- we do see probably still under some pressure [ACA] especially in the first half of this year. But I do believe the long-term converging story will hold quite well because the company also needs to manage like a counter application level, which is network security to do that. So that's where long term, we do see the firewall market or the network security market will continue to grow. I feel probably around 10% year-over-year in the next maybe 3 to 5 years.

是的。對於這3個細分市場，我沒有最新的市場數據。但從第三季開始，防火牆市場就比去年同期持平。第四季度，我們可能會宣讀公司報告。但我們確實看到，[ACA] 可能仍面臨一些壓力，尤其是在今年上半年。但我確實相信長期融合的故事將會很好地成立，因為公司還需要像櫃檯應用程式層級一樣進行管理，這就是網路安全。因此，從長遠來看，我們確實看到防火牆市場或網路安全市場將繼續成長。我感覺未來 3 到 5 年的成長率可能會達到 10% 左右。

SASE and Secure Ops come from a little bit smaller base, which also grow faster. And we also have a lot of existing customers about this together with us. They probably already are firewall customer or SD-WAN customer. They can easily adopt additional solution, additional product so that we see the other 2 sectors grow faster than the company average and probably will continue to grow faster in the next few quarters.

SASE 和 Secure Ops 的基礎較小，但成長速度也較快。我們也有很多現有客戶與我們一起關注此事。他們可能已經是防火牆客戶或 SD-WAN 客戶。他們可以輕鬆地採用額外的解決方案、額外的產品，這樣我們就可以看到其他兩個部門的成長速度快於公司平均水平，並且可能在未來幾個季度繼續保持更快的成長速度。

Our next question will come from the line of Andrew Nowinski with Wells Fargo.

我們的下一個問題將來自富國銀行的安德魯·諾溫斯基 (Andrew Nowinski)。

So I was just wondering if you could -- and we've talked a lot about your other pillars. I was wondering if we could touch on SecOps and maybe what's driving that. Is that related to the recent SEC regulation? And then second, I was wondering, if you look at your billings guidance for the year, where do you see the most risk as it relates to that guidance in terms of the 3 pillars and the performance you're expecting from those 3 pillars?

所以我只是想知道你是否可以 - 我們已經討論了很多關於你的其他支柱。我想知道我們是否可以談談 SecOps，也許是什麼推動了這一點。這與最近的 SEC 監管有關嗎？其次，我想知道，如果您查看今年的帳單指導，您認為與該指導的三大支柱以及您對這三大支柱的績效的期望相關的最大風險在哪裡？

Yes. The secure ops is actually helping customers, more like better security and more efficient and also lower the total management cost. That's where you need to have multiple solutions, multiple products integrated together, automated together. So that's where we see during the current environment, a lot of the companies, big and small, they do see the secure ops really the area they probably worked on the investment there.

是的。安全營運實際上是在幫助客戶，更像是更好的安全性和更高的效率，同時也降低了總管理成本。這就是您需要將多種解決方案、多種產品整合在一起並實現自動化的地方。因此，這就是我們在當前環境中看到的情況，許多公司，無論大小，他們確實看到了安全操作，這確實是他們可能在那裡進行投資的領域。

And also, we do see the merging of networking and security together, which also secure ops play a quite important role to make sure the 2 operations can be operated together, which we are leading this area. So that's where secure ops will see pretty strong growth. SASE is more like a consumption model. We also see kind of the current environment well. Even the cost could be a little bit higher than our plans. But it gives the customer flexibility and so that we see that. Maybe John want to add some.

此外，我們確實看到網路和安全的整合，這也使安全操作發揮著非常重要的作用，以確保這兩種操作可以一起操作，我們在這一領域處於領先地位。因此，這就是安全營運將出現相當強勁成長的地方。 SASE更像是一種消費模型。我們也很好地看到了目前的環境。甚至成本也可能比我們的計劃高一點。但它為客戶提供了靈活性，因此我們看到了這一點。也許約翰想補充一些。

I think for SecOps, what we're seeing is the threat landscape out there is driving a lot of the customer behavior as well. You see these ransomware attacks that are really debilitating to customers. And so prevention is important, but time to detection and time to remediation is critical, and it's real money. And these are really important issues for our customers.

我認為對於 SecOps，我們所看到的威脅情勢也推動了許多客戶行為。您會看到這些勒索軟體攻擊確實對客戶造成了損害。因此，預防很重要，但檢測時間和補救時間也很關鍵，而且這是真正的金錢。這些對我們的客戶來說都是非常重要的問題。

And also, I would note, we've really been building this solution over many, many years, but we really just started to focus on it as a separate pillar 3 months ago. And then we had a record Q4. And so I think that degree of focus internally, coupled with how we can actually help our customers, putting our customers first, really is driving a lot of the success there. And that new focus -- we're pretty much sticking to the plan. The plan is working. We're sticking to the plan, and so we see a lot of opportunity there.

另外，我要指出的是，我們多年來一直在建立這個解決方案，但我們實際上只是在 3 個月前才開始將其作為一個單獨的支柱來關注。然後我們創造了創紀錄的第四季。因此，我認為內部的關注程度，再加上我們如何真正幫助我們的客戶，把客戶放在第一位，確實推動了那裡的成功。新的焦點—我們幾乎堅持這個計劃。該計劃正在發揮作用。我們堅持執行計劃，因此我們看到了很多機會。

Our next question will come from the line of Brad Zelnick with Deutsche Bank.

我們的下一個問題將來自德意志銀行的 Brad Zelnick。

I think I've got one for John Whittle and one for Keith. First, just for you, John. Given your recent appointment as Fortinet's first ever COO, can you talk about your perspective stepping into the role and how you plan to help drive Fortinet's business forward? And Keith, for you, in your guidance comments, you said for the full year that you expect the selling environment to improve in the back half and into 2025. And I'm not saying I disagree with you, but I'm just curious why you say that and if it's just relative to the comments that you also made on the firewall cycle dynamics or if it's something else more broadly in the economy that you're expecting.

我想我有一本給約翰·惠特爾，一本給基斯。首先，只為你，約翰。鑑於您最近被任命為 Fortinet 首位首席營運官，您能否談談您對這一職位的看法以及您計劃如何幫助推動 Fortinet 的業務向前發展？ Keith，您在指導意見中表示，您預計全年銷售環境將在下半年和 2025 年有所改善。我並不是說我不同意您的觀點，但我只是很好奇你為什麼這麼說，是否只是與你對防火牆週期動態的評論有關，或者是否是你所期望的更廣泛的經濟中的其他事情。

Thanks for the question. I'm really excited about the role. I've been working here for 17 years through a lot of growth. And my focus over those 17 years has really been learning from Ken and Michael and the team. And it's like an [NBA on] steroids. They're brilliant business people in addition to focusing on the innovation and the technology, which I think is a core differentiator for Fortinet. We are an innovation-first company.

謝謝你的提問。我對這個角色感到非常興奮。我在這裡工作了 17 年，經歷了許多成長。這 17 年裡我的重點其實是向 Ken、Michael 和團隊學習。這就像 [NBA ] 打了類固醇。除了專注於創新和技術之外，他們還是才華橫溢的商業人士，我認為這是 Fortinet 的核心差異因素。我們是一家創新第一的公司。

And I think our culture is really around what I call almost a straightforward meritocracy. And Ken and Michael drive this throughout the organization. It's very straightforward. It's work hard, work smart, innovate and put the customer first and deliver results. And so I really like the culture. Obviously, I've been here 17 years. Some people say I need to get more accretive with my career. But I really -- it really gets me excited to make a difference, and it's a positive difference. We're protecting our customers so they can get about their business. So I really like that.

我認為我們的文化實際上是圍繞著我所說的幾乎直接的精英管理。肯和邁克爾在整個組織中推動這一目標。這非常簡單。它意味著努力工作、聰明工作、創新、將客戶放在第一位並交付成果。所以我真的很喜歡這種文化。顯然，我已經在這裡17年了。有些人說我需要讓我的職業生涯更有價值。但我真的——這真的讓我很興奮能夠做出改變，這是一個積極的改變。我們正在保護我們的客戶，以便他們能夠開展業務。所以我真的很喜歡這樣。

And in terms of how I can contribute, up until now, I've focused on legal and corp dev. I'm taking over corporate real estate. I'm adding systems, manufacturing and logistics. And so I have a broad set of responsibilities. I also have always worked very closely with the sales teams. I will not be managing the sales teams, but I will continue to work closely. Teamwork is one of our top 3 culture items here. And we're not really boxed in here in a way. We really work together. And so we've got great sales leaders, and I look forward to working with them. We've got a huge opportunity to grow. We want to grow and capture that opportunity by putting the customer first. I want to support that, and to the extent I can help the team, I want to do that.

就我如何做出貢獻而言，到目前為止，我一直專注於法律和公司開發。我正在接管公司房地產。我正在添加系統、製造和物流。因此，我肩負著廣泛的責任。我也一直與銷售團隊密切合作。我不會管理銷售團隊，但我將繼續密切合作。團隊合作是我們這裡的三大文化項目之一。從某種程度上來說，我們並沒有真正被困在這裡。我們確實一起工作。我們擁有出色的銷售領導者，我期待與他們合作。我們有巨大的成長機會。我們希望透過將客戶放在第一位來發展並抓住這個機會。我想支持這一點，並且在我能幫助球隊的範圍內，我想這麼做。

To Fatima's question earlier, we're also very disciplined on the cost side. And as Keith said, we have this services model where we have a lot of visibility based on the deferred revenue on the top line, but we also are very disciplined at kind of managing and monitoring the costs on a real-time basis. And sometimes you can control the costs more quickly than other things. And so what I've noticed is we're very good at kind of managing that on a real-time basis, and we'll continue to do that as well.

對於法蒂瑪之前的問題，我們在成本方面也非常嚴格。正如基斯所說，我們有這種服務模式，根據頂線的遞延收入，我們有很多可見性，但我們在即時管理和監控成本方面也非常嚴格。有時你可以比其他事情更快地控製成本。所以我注意到我們非常擅長即時管理，我們也將繼續這樣做。

Thank you, John. John also helped us form the company culture on our beginning, which is the teamwork and also openness and also innovation. So we'll continue to maintain this culture and keep in growing the company together.

謝謝你，約翰。 John也幫助我們從一開始就形成了公司文化，那就是團隊合作、開放和創新。因此，我們將繼續保持這種文化，並繼續共同發展公司。

And then quickly, Brad, on the other. I mean yes, obviously, the view of the firewall cycles has some part of it. But I think probably more to the point is the digestion of products and projects. And if you look back to where the peak was of firewall purchasing and you kind of play that out, you should be coming to its logical end of deployment cycles.

然後很快，布拉德，在另一方面。我的意思是，是的，顯然，防火牆循環的觀點有一部分。但我認為可能更重要的是產品和專案的消化。如果您回顧一下防火牆購買的高峰期，並將其發揮出來，您應該會到達部署週期的邏輯終點。

Our next question will come from the line of Keith Bachman with BMO.

我們的下一個問題將來自 BMO 的 Keith Bachman。

Peter and Keith, thank you again for the disclosures on the segments within billings. It's very helpful. Two questions. One is on strategy and one is on guidance. Ken, on the strategy question, I wanted to ask you on your perspective on the unified SASE, excluding the SD-WAN and SecOps. There's 2 broad variables that I think about. One is go to market and one is product or R&. D, you've clearly increased the go-to-market efforts surrounding unified SASE and SecOps. I'm wondering, do you feel the need to also incrementally focus on the product side or incremental R&D, if you will, to strengthen the portfolio for things such as improving your positioning within the Gartner Magic Quadrant or however you want to think about it? So is it more go-to-market that you think incremental efforts? Or it's both incremental, both the R&D side and as well as the go-to-market?

Peter 和 Keith，再次感謝你們對 Billings 內細分市場的揭露。這非常有幫助。兩個問題。一是戰略，一是指導。 Ken，關於策略問題，我想問您對統一 SASE（不包括 SD-WAN 和 SecOps）的看法。我考慮了兩個廣泛的變數。一是進入市場，一是產品或研發。 D，您顯然加大了圍繞統一 SASE 和 SecOps 的市場推廣。我想知道，您是否覺得有必要逐步關注產品方面或增量研發（如果願意的話），以加強產品組合，例如提高您在 Gartner 魔力像限中的定位，或者以您想要的方式進行思考？那麼您認為漸進式的努力是否更能走向市場？還是它既是增量的，既是研發方面的，也是進入市場的？

And just in the interest of time, I'll ask my second question. Keith, on the guidance, just given the performance in the quarter, and I'm really focused on the year, not the March quarter, it does seem very conservative. You very much outperformed your expectations associated with the December quarter. And you're guiding for kind of 2%. And even if you normalize for the backlog burn, you're sort of mid-single digits, maybe a little bit better than that. And so I guess I'm just trying to reconcile. It seems like very conservative guidance. And perhaps the way to ask the question is, how do you think about the product side as we get to the back half of the year? Do you think that industry demand returns to normal levels? Or do you feel like there's some pressure on the product side? Or anything else you want to draw comments on associated with what seems to be a conservative billings guide.

為了節省時間，我會問第二個問題。基思，關於指導，只是考慮到本季的表現，我真正關注的是這一年，而不是三月的季度，這看起來確實非常保守。您的表現遠遠超出了您對 12 月季度的預期。你的指導價是2%。即使你將積壓的消耗標準化，你的水平也只是個位數左右，也許比這要好一點。所以我想我只是想和解。這似乎是非常保守的指導。也許提問的方式是，當我們進入下半年時，您如何看待產品方面？您認為產業需求是否恢復到正常水準？或者您覺得產品方面有一些壓力嗎？或者您想對與保守的比林斯指南相關的任何其他內容發表評論。

Yes, very good question about SASE. Definitely, we want to do both, even more than that. So we definitely see the opportunity changing our go-to-market strategy because a few months ago, we were more dependent on the service provider carrier trying to do SASE, help them to do the SASE. Now it's more go-to-market direct ourselves. At the same time, working with our service provider, but also more important, the internal R&D and internal investment in the infrastructure.

是的，關於 SASE 的問題非常好。當然，我們想要兩者兼而有之，甚至不止於此。因此，我們肯定看到了改變我們進入市場策略的機會，因為幾個月前，我們更依賴嘗試執行 SASE 的服務供應商運營商，幫助他們執行 SASE。現在我們自己更直接進入市場。同時，與我們的服務提供者合作，更重要的是內部研發和內部基礎設施的投資。

Like we mentioned, now we have over 150 PoPs worldwide, probably can match any other competitor. At the same time, the function, the innovation and also put out SASE in a single OS, and then a lot of functions starting to use ASIC will accelerate. And that will also make our SASE solution much better, more advantage compared to other competitors and also more easy to deploy, more easy to manage.

正如我們所提到的，現在我們在全球擁有超過 150 個 PoP，可能可以與任何其他競爭對手相提並論。同時，功能、創新也在單一作業系統中推出了SASE，然後許多功能開始使用ASIC將會加速。這也將使我們的 SASE 解決方案比其他競爭對手更好、更具優勢，並且更容易部署、更易於管理。

So we see definitely huge opportunity for SASE. It's not just SASE using a traditional cloud approach, but also on-premise SASE, the private SASE. So we see a lot of opportunity for SASE going forward, both on the technology, which we also work with our innovation on developing technology, and at the same time, the go-to-market strategy, once we focus, we see huge success behind.

因此，我們確實看到了 SASE 的巨大機會。它不僅是使用傳統雲端方法的 SASE，還包括本地 SASE（私人 SASE）。因此，我們看到 SASE 未來有很多機會，無論是在技術方面，還是在開發技術方面的創新，同時，在進入市場策略方面，一旦我們專注，我們就會看到巨大的成功在後面。

And just on the guidance, Keith, I appreciate the thought after kind of a tough middle of the year last year for us. So for me, I think keep in mind that we do probably have between $150 million and $200 million of headwind related to backlog or year-over-year comparisons, if you will, the backlog impact in the year.

就指導而言，基思，我很欣賞去年我們經歷了艱難的年中之後的想法。因此，對我來說，我認為請記住，我們可能確實面臨 1.5 億至 2 億美元的與積壓或同比比較相關的逆風，如果你願意的話，今年積壓的影響。

I think also in some of the commentary that we provided right before guidance where we talked about the relative impact specifically to product revenue and what you should see from service revenue for the year, you can kind of get a sense of what we're thinking about for product revenue. I think we -- I do see that -- some opportunities on the service revenue line with things that come from SecOp and SASE in the year, but I think all in all, I think where we're at right now in terms of the full year guidance number is an appropriate number for us.

我認為，在我們在指導之前提供的一些評論中，我們專門討論了對產品收入的相對影響以及您應該從今年的服務收入中看到的內容，您可以了解我們的想法關於產品收入。我認為我們——我確實看到了——今年來自 SecOp 和 SASE 的服務收入方面有一些機會，但我認為總而言之，我認為我們現在在全年指導數字對我們來說是合適的數字。

Our next question will come from the line of Ittai Kidron with Oppenheimer.

我們的下一個問題將來自 Ittai Kidron 與 Oppenheimer 的關係。

A couple for me. First, on the comp side. As you move into '24, can you share a little bit more color on the changes you're making or have made to the sales comp? And what kind of incentives have you laid in place in a way that's different than '23? Then on the competitive front, just given where you're positioned on SecOps and SASE, I think you've talked about kind of more enterprise on the SecOps and more SMB is the largest category in SASE. Can you talk specifically on who do you see more competition in those categories? Because you don't seem to kind of stretch the entire customer profile so -- or regions, frankly. So we'd love to get a little bit more color into who do you see more versus less in those categories.

給我一對。首先，在比較方面。當你進入 24 世紀時，你能分享你正在或已經對銷售人員所做的改變嗎？你們以與 23 世紀不同的方式製定了哪些激勵措施？然後在競爭方面，考慮到您在 SecOps 和 SASE 上的定位，我認為您已經談到了 SecOps 上更多的企業和更多的 SMB 是 SASE 中最大的類別。您能具體談談您認為這些類別中誰的競爭更激烈嗎？因為坦白說，你似乎並沒有擴展整個客戶檔案，或擴展整個地區。因此，我們希望能更詳細地了解您在這些類別中看到的人較多和較少的人。

Yes. We kind of keep in improving the sales comp plan and also try to line up what's the company goal and what's the [fuel cells] and also how we can move kind of tied together and success together. So that there is some modification of the comp plan, which move towards the company long term, both on the growth and the margin and also the fact more on some kind of service-based kind of model there behind. So that's also kind of keep in investing in the sales force and also kind of making the structure more efficient. That's the other area and also training the sales and make sure -- because a lot of new areas, whether SASE and SecOps, do need a lot of training. That's also the big enhancement we kind of go through right now.

是的。我們一直在改進銷售補償計劃，並嘗試將公司目標和[燃料電池]聯繫起來，以及我們如何將兩者聯繫在一起並取得成功。因此，對補償計劃進行了一些修改，從長遠來看，無論是在增長還是利潤方面，以及背後的某種基於服務的模型方面，這都朝著公司的長期方向發展。因此，這也是對銷售團隊的持續投資，也是提高結構效率的一種方式。這是另一個領域，也是對銷售人員的培訓並確保——因為許多新領域，無論是 SASE 還是 SecOps，確實需要大量培訓。這也是我們現在正在經歷的重大改進。

Yes. I'd probably add to that, just a couple of things on the comp plan conversation. This is the time of year where comp plans go out, and I think every company makes -- needs to make some changes. I think the real thing that jumps out at me this year is that I think after the 2023 results, the quotas are probably a little bit lower on an individual basis than they have been in the past, and we probably put some things to work in the other direction on it. But to Ken's point, we really want to make sure that we're investing in building on the sales team. And making the adjustments in the quota for 2024, I think, is appropriate.

是的。我可能會補充一點，只是關於薪酬計劃對話的幾件事。每年這個時候，薪酬計畫都會出台，我認為每家公司都需要做出一些改變。我認為今年真正讓我震驚的是，我認為在 2023 年結果公佈後，個人配額可能比過去要低一些，我們可能會在其中投入一些工作另一個方向就可以了。但就肯的觀點而言，我們確實希望確保投資於銷售團隊的建立。我認為對2024年的配額進行調整是適當的。

On the SMB and SASE, it's probably the SASE and SecOps conversation. And I think it goes back to some of Gabriela's question before. At this stage, they're really shaping up in terms of having different customer mixes. The SMB portion of SASE was about 55% of the business. And we're not surprised to see us having very, very early success there. We're pleased with the development and the feedback we're getting from third parties about the success of the SASE product. But that, together with our SD-WAN customers, is the logical place to see success.

在 SMB 和 SASE 上，這可能是 SASE 和 SecOps 的對話。我認為這又回到了加布里埃拉之前提出的一些問題。在這個階段，他們在擁有不同的客戶組合方面確實正在形成。 SASE 的 SMB 部分約佔業務的 55%。看到我們在那裡非常非常早地取得成功，我們並不感到驚訝。我們對 SASE 產品的開發以及從第三方獲得的 SASE 產品成功的回饋感到滿意。但是，與我們的 SD-WAN 客戶一起，這是一個成功的合理場所。

On the flip side, SecOps is almost the opposite with large enterprises providing about 55% of the business. And I think the read-through to that is all about consolidation. Where you're really going to have success is -- and it ties into the mix of repeat customers, i.e., firewall customers are now buying the SecOp product being very, very high. And that's what we would expect on both of those business segments.

另一方面，SecOps 幾乎相反，大型企業提供了約 55% 的業務。我認為通讀這一切都是為了整合。你真正能取得成功的地方是——它與回頭客的組合有關，即防火牆客戶現在購買 SecOp 產品的頻率非常非常高。這就是我們對這兩個業務部門的期望。

For our team sales and also sometimes even for partner, if they sell all 3 solutions, secure networking, SASE and secure ops, they get more comp compared to only sell 1 or 2 solutions. So that's the additional incentive we offer to the field.

對於我們的團隊銷售，有時甚至對於合作夥伴來說，如果他們銷售所有3 個解決方案、安全網路、SASE 和安全操作，那麼與僅銷售1 或2 個解決方案相比，他們可以獲得更多的報酬。這就是我們為該領域提供的額外激勵。

Maybe as a follow-up, Keith, how much of the opportunity here in SecOps and SASE is outside of our customer footprint? Is the vast majority of traction here just with your existing installed base? Or it also pulls you outside?

Keith，也許作為後續行動，SecOps 和 SASE 中有多少機會超越了我們的客戶足跡？這裡的絕大多數牽引力是否僅來自您現有的安裝基礎？還是它也會把你拉到外面？

Yes. Given, as John pointed out, we have over 500,000 customers, so I'm okay with the installed base, right? And I don't think that's anything new. For several years, we've talked about new logos representing large numbers, hundreds -- thousands of new logos. But they've never really been more than 10% of the business. So I don't think that this is really going to change with that.

是的。正如約翰指出的那樣，我們擁有超過 50 萬名客戶，所以我對安裝基礎感到滿意，對嗎？我認為這不是什麼新鮮事。多年來，我們一直在談論代表大量、數百甚至數千個新徽標的新徽標。但他們在業務中所佔的份額從未真正超過 10%。所以我認為這不會真正改變。

I expect that the firewall is such a compelling product because of the price and performance advantage, because of how more and more security have been embedded into the operating system and the ASIC empowers that, that -- I'm not a salesperson. If I was, I'm probably looking for those opportunities in the white space accounts. And then you want them, like any other enterprise company, to come back and sell more into that company. And that's really what you're seeing with the SecOps and SASE products that Ken and John have been talking about.

我認為防火牆是一款引人注目的產品，因為它具有價格和性能優勢，因為越來越多的安全性已嵌入到作業系統中，並且 ASIC 賦予了這一點——我不是銷售人員。如果是的話，我可能會在空白帳戶中尋找這些機會。然後你希望他們像任何其他企業公司一樣回來並向該公司出售更多產品。這確實是您在 Ken 和 John 一直在談論的 SecOps 和 SASE 產品中看到的情況。

Our next question will come from the line of Adam Tindle with Raymond James.

我們的下一個問題將來自亞當·廷德爾（Adam Tindle）和雷蒙德·詹姆斯（Raymond James）的路線。

Okay. Let me see if I can get everybody involved here. So Ken, I wanted to start with SASE and SecOps was obviously a key pivot point on the last call. As you focus on that more internally, could you summarize your competitive advantage technologically in those areas? And John, logistics from a sales perspective, I know it's been kind of kicked around. A percent of quota retirement might be related to those areas. What did you land on for logistics?

好的。讓我看看是否能讓每個人都參與其中。 Ken，我想從 SASE 開始，而 SecOps 顯然是上次通話的關鍵點。當您在內部更加關注這一點時，您能否總結一下您在這些領域的技術競爭優勢？約翰，從銷售的角度來看，物流，我知道它已經被踢亂了。一定比例的退休配額可能與這些領域有關。您選擇物流的目的是什麼？

And lastly, for Keith, expectations for sales productivity as a result of that pivot towards SASE and SecOps. Just wondering your early observations on what you've seen because it looks like you do expect total margins down, but I think it's somewhat related to gross margin, not much efficiency drain. So just what you're seeing from a sales productivity perspective as you pivot to those areas.

最後，對於 Keith 來說，由於轉向 SASE 和 SecOps，對銷售生產力的期望。只是想知道您對所看到的情況的早期觀察，因為看起來您確實預計總利潤率會下降，但我認為這在某種程度上與毛利率有關，而不是太多效率消耗。這就是當您轉向這些領域時從銷售生產力角度所看到的情況。

Yes. For SASE, we are the only company, we believe, who has all the SASE function, SD-WAN, all the CASB, web firewall service, all in a single operating system, can be deployed on-premise using ASIC to accelerate or using cloud format there. So that's a huge advantage, both for the customer, for the service provider.

是的。對於 SASE，我們相信，我們是唯一擁有所有 SASE 功能、SD-WAN、所有 CASB、Web 防火牆服務的公司，所有這些都在一個作業系統中，可以使用 ASIC 進行本地部署以加速或使用那裡有雲格式。因此，這對客戶和服務提供者來說都是一個巨大的優勢。

I think on the secure ops side, we also -- most of the product we internally develop, whether from endpoint or from all these different like e-mail application, web, all this is because when we internally develop, it integrates, automates much better than other competitor, more comp acquisition, which is a separate product that's more difficult to integrate, automate together. So that's the 2 huge advantage we have.

我認為在安全操作方面，我們內部開發的大部分產品，無論是來自端點還是來自所有這些不同的產品，如電子郵件應用程式、網絡，所有這一切都是因為當我們內部開發時，它會集成、自動化很多比其他競爭對手更好，更多的補償收購，這是一個單獨的產品，更難以整合和自動化。這就是我們擁有的第二個巨大優勢。

We usually call the secure ops more like a fabric approach. We've been doing that for 10 years, which is pretty successful. But now we have the same kind which customer wants to hear is the secure ops, which they see the huge advantage. That drives a huge growth going forward, and also the field training also kind of help a lot. So that's the advantage we have, whether it's SASE, single OS approach, can use ASIC to accelerate, and then the secure ops is integrated, automated together much better than other competitors gave us huge advantage.

我們通常將安全操作稱為結構方法。我們已經這樣做了 10 年，非常成功。但現在我們擁有客戶想要聽到的同一種安全操作，他們看到了巨大的優勢。這推動了未來的巨大成長，而且現場培訓也有很大幫助。所以這就是我們擁有的優勢，無論是SASE、單一作業系統方法，都可以使用ASIC來加速，然後安全操作被整合、自動化在一起，比其他競爭對手更好地給了我們巨大的優勢。

In terms of the quota retirement question, Keith may have additional comments on that, but there's really no change there.

關於配額退休問題，基斯可能會有更多評論，但實際上沒有任何變化。

Yes. I think [OTE] and numbers -- targets are very much the same. I think on sales productivity, in terms of what we saw in 2023, as we move through the year, obviously, productivity kind of came down. It seems to have leveled off now as we exit 2023. And I think that the modeling, if you will, is pretty much a similar expectation for 2024 in terms of where we exited 2023.

是的。我認為 [OTE] 和數字目標非常相似。我認為就銷售生產力而言，就我們在 2023 年看到的情況而言，隨著這一年的推移，生產力顯然有所下降。隨著我們退出 2023 年，現在似乎已經趨於平穩。如果你願意的話，我認為該模型與我們退出 2023 年時對 2024 年的預期非常相似。

On the -- I think in terms of what SASE and SecOps dramatically changed those numbers, I kind of go back to the earlier conversation about contract term. Sure. At some level, if the mix shifts and becomes 50-50 or 60-40, the direction, yes, then we probably have something to talk about, although I'd probably be talking a lot more about the fantastic growth in the SecOps and SASE than the fact that I had to pay salespeople to make that growth happen.

關於——我認為就 SASE 和 SecOps 極大地改變了這些數字而言，我有點回到之前關於合約條款的對話。當然。在某種程度上，如果組合發生變化，變成 50-50 或 60-40，方向是的，那麼我們可能有話要談，儘管我可能會更多地談論 SecOps 的驚人增長， SASE 比我必須向銷售人員付錢才能實現成長這一事實更重要。

That concludes today's question-and-answer session. I'd like to turn the call back to Peter Salkowski for closing remarks.

今天的問答環節到此結束。我想將電話轉回給 Peter Salkowski，讓其閉幕詞。

Thank you, Liz. I'd like to thank everyone for joining today's call. Fortinet will be attending an investor conference hosted by Morgan Stanley during the first quarter. The fireside chat website link will be posted on the Events and Presentations section of the Fortinet Investor website starting soon. If you have any questions, please feel free to reach out. Have a great rest of your day. Thank you.

謝謝你，莉茲。我要感謝大家參加今天的電話會議。 Fortinet 將參加第一季由摩根士丹利主辦的投資者會議。爐邊聊天網站連結將很快發佈在 Fortinet Investor 網站的「活動和演示」部分。如果您有任何疑問，請隨時與我們聯繫。祝您有個愉快的一天。謝謝。

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

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。