Fortinet Inc (FTNT) 2021 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Fortinet Third Quarter 2021 Earnings Announcement Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

美好的一天，感謝您的支持。歡迎參加 Fortinet 2021 年第三季財報公佈電話會議。 （操作員指示）請注意，今天的會議正在錄製中。 （操作員說明）

I would now like to hand the conference over to your first speaker for today, Mr. Peter Salkowski, Vice President of Investor Relations. Please go ahead, sir.

現在我想將會議交給今天的第一位發言者，投資者關係副總裁 Peter Salkowski 先生。請繼續，先生。

Thank you, Eli. Good afternoon, everyone. This is Peter Salkowski, Vice President of Investor Relations at Fortinet. I am pleased to welcome everyone to our call to discuss Fortinet's financial results for the third quarter of 2021.

謝謝你，伊萊。大家下午好。我是 Peter Salkowski，Fortinet 投資者關係副總裁。我很高興歡迎大家致電我們，討論 Fortinet 2021 年第三季的財務業績。

The 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.

今天電話會議的演講嘉賓是 Fortinet 創辦人、董事長兼執行長 Ken Xie；和我們的財務長 Keith Jensen。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。

Ken will begin our call today providing a high-level perspective of our business. Keith will then follow with the financial and operating results for the third quarter before providing guidance for the fourth quarter and updating the full year. We'll then open the call for questions. (Operator Instructions)

肯今天將開始我們的電話會議，提供我們業務的高層視角。然後基思將公佈第三季的財務和營運業績，然後提供第四季度的指導並更新全年。然後我們將開始提問。 （操作員說明）

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，特別不承擔任何更新前瞻性聲明的義務。

Also, our references to financial metrics that we make today on today's call are non-GAAP unless stated otherwise. Our GAAP results and GAAP to non-GAAP reconciliations is 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. Lastly, all references to growth are on a year-over-year basis unless noted otherwise.

此外，除非另有說明，否則我們在今天的電話會議上提到的財務指標都是非公認的會計原則。我們的 GAAP 業績以及 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。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。

Thanks, Peter, and thank you to everyone for joining today's call to review our outstanding third quarter 2021 results. Billing increased 42% to $1.064 billion, exceeding $1 billion in quarterly billing for the first time in Fortinet history. Global G2000 billing growth accelerated to over 50%; total revenue growth, 33% to $867 million, with product revenue up 51%, our highest quarterly product revenue growth since going public in November 2009. With very strong business momentum, we remain focused on growth.

謝謝 Peter，也謝謝大家參加今天的電話會議，回顧我們 2021 年第三季的優異業績。帳單成長了 42%，達到 10.64 億美元，Fortinet 歷史上首次季度帳單超過 10 億美元。全球G2000帳單成長加速至50%以上；總營收成長 33%，達到 8.67 億美元，其中產品收入成長 51%，這是我們自 2009 年 11 月上市以來最高的季度產品收入成長。

According to Gartner, the network parameter is fragmented with many security teams and tools operating in silos, and integrating best-of-breed solution only add to the complexity. To address this challenge, Gartner is predicting that by 2024, organizations that adopt our cybersecurity mesh architecture will reduce the financial impact of individual security incidents by an average of 90%. In a recent report, Gartner called out Fortinet Security Fabric as a platform that offers cybersecurity mesh architecture approach.

據 Gartner 稱，網路參數分散，許多安全團隊和工具各自為政，整合最佳解決方案只會增加複雜性。為了因應這項挑戰，Gartner 預測，到 2024 年，採用我們的網路安全網格架構的組織將平均將單一安全事件的財務影響減少 90%。在最近的一份報告中，Gartner 將 Fortinet Security Fabric 稱為提供網路安全網狀架構方法的平台。

Fortinet is helping customers solve the issue of complexity through our security-driven networking and Security Fabric platform approach. Fortinet's unrivaled FortiASIC offers 5 to 10x more security computing power. This results in tightly integrated functionality with better performance, lower cost and power consumption compared with a general CPU. Our organically developed [Forti Fabric] solution like e-mail, web and endpoint together with FortiGate firewall offers much broader protection, more integration and better automation than other competitive solutions.

Fortinet 正在透過我們的安全驅動網路和 Security Fabric 平台方法幫助客戶解決複雜性問題。 Fortinet 無與倫比的 FortiASIC 提供了 5 到 10 倍的安全運算能力。與通用 CPU 相比，這實現了緊密整合的功能，具有更好的效能、更低的成本和功耗。我們有機開發的 [Forti Fabric] 解決方案（如電子郵件、Web 和端點）與 FortiGate 防火牆一起提供比其他競爭解決方案更廣泛的保護、更多的整合和更好的自動化。

As organizations continue to consolidate towards a platform approach and as network security expand to local and wide area network to the work-from-anywhere environment and to the cloud, Fortinet is strongly positioned to significantly capture market share of a projected total addressable market of more than $174 billion by 2025. We are confident that this trend, together with the relentless focus on organic innovation, will drive better-than-industry average long-term growth for Fortinet.

隨著組織繼續向平台方法整合，以及網路安全擴展到區域網路和廣域網路、隨時隨地工作環境和雲，Fortinet 處於有利地位，可以在預計的總可尋址市場中顯著佔據更多市場份額。年，銷售額將超過1740 億美元。我們相信，這一趨勢，加上對有機創新的不懈關注，將推動Fortinet 實現優於行業平均水平的長期成長。

Work-from-anywhere is here to stay. The COVID-19 pandemic has greatly expanded the work-from-anywhere model. According to Gartner, organizations are facing a hybrid future, with 75% workers saying their expectation for working and flexibility has increased. Today, Fortinet announced the industry's most complete solution to enable organizations to secure and connect work-from-anywhere by unifying Fortinet's broad portfolio of zero trust, endpoint and network security solution within the Fortinet Security Fabric. Fortinet delivers security that follows user whether on the road, at home or in office to provide enterprise-grade protection and productivity.

隨時隨地工作將持續下去。 COVID-19 大流行大大擴展了隨時隨地工作的模式。 Gartner 表示，組織面臨著混合的未來，75% 的員工表示，他們對工作和彈性的期望有所提高。今天，Fortinet 宣布推出業界最完整的解決方案，透過在 Fortinet 安全結構中統一 Fortinet 廣泛的零信任、端點和網路安全解決方案組合，使組織能夠在任何地方保護和連接工作。 Fortinet 提供隨時跟隨使用者的安全性，無論是在路上、在家中還是在辦公室，以提供企業級保護和生產力。

In the 2021, Gartner Magic Quadrant for WAN Edge Infrastructure just announced, Fortinet was once again named the leader, placed highest in the ability to execute and ranked #1 for Remote Worker in Critical Capabilities. [Claiming] our leadership in SD-WAN, Fortinet and Verizon recently announced the expansion of the Verizon global offering with Fortinet Secure SD-WAN. The solution is designed to provide enterprise and the business market customer with a converged networking and security solution in-a-box to secure and connect work-from-anywhere.

在剛剛公佈的 2021 年 Gartner 廣域網路邊緣基礎設施魔力像限中，Fortinet 再次被評為領導者，在執行能力方面排名最高，並在遠端工作人員關鍵能力方面排名第一。 [聲稱]我們在 SD-WAN 領域的領導地位、Fortinet 和 Verizon 最近宣布透過 Fortinet Secure SD-WAN 擴展 Verizon 全球產品。該解決方案旨在為企業和商業市場客戶提供一體化的整合式網路和安全解決方案，以保護和連接任何地方的工作。

We continue to see momentum and adoption of our Secure SD-WAN, 5G hybrid SD-Branch and cloud delivered SASE solution among the world's largest service providers. Internet providers including AT&T, British Telecom, Telefónica and others, we plan to announce in the coming months.

我們繼續看到全球最大的服務供應商對我們的安全 SD-WAN、5G 混合 SD-Branch 和雲端交付的 SASE 解決方案的採用和發展勢頭。我們計劃在未來幾個月內宣布包括 AT&T、英國電信、Telefónica 等在內的網路供應商。

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

在將電話轉接給 Keith 之前，我要感謝我們全球的員工、客戶和合作夥伴的持續支持和辛勤工作。基思？

Thank you, Ken. Okay, let's start the more detailed Q3 discussion with revenue and the drivers for our record-setting product revenue growth. Clearly, demand is strong.

謝謝你，肯。好的，讓我們開始更詳細地討論第三季的收入以及創紀錄的產品收入成長的驅動因素。顯然，需求強勁。

Total revenue of $867 million was up 33%, driven by industry-leading product revenue growth of 51%. Looking closer to 51% product revenue growth, our highest quarterly product growth rate in 12 years as a public company, we can point to 3 drivers: First, the convergence of security and networking or what we call security-driven networking; second, strong customer demand for vendor consolidation on platforms; and third, a heightened awareness of today's elevated threat landscape across a broader set of entities.

由於業界領先的產品收入成長 51%，總收入成長了 33%，達到 8.67 億美元。接近 51% 的產品收入成長（我們作為上市公司 12 年來最高的季度產品成長率），我們可以指出三個驅動因素：首先，安全和網路的融合，或我們所說的安全驅動的網路；二是客戶對平台廠商整合的需求強烈；第三，提高對當今更廣泛實體中日益嚴重的威脅情勢的認識。

Fortinet is proud to be an innovative leader in security-driven networking with the convergence of security and networking functionality incorporated into our broad, integrated and automated Security Fabric platform. Our security-driven networking investments in Wi-Fi, switching, WAN, data center cloud, 5G and OT enable us to provide integrated security at networking speeds from the data center to endpoints and to the cloud; and with our Secure SD-WAN solution, security at the edges.

Fortinet 很自豪能夠成為安全驅動網路領域的創新領導者，將安全性和網路功能整合到我們廣泛、整合和自動化的 Security Fabric 平台中。我們在 Wi-Fi、交換、WAN、資料中心雲端、5G 和 OT 方面的安全驅動型網路投資使我們能夠以網路速度提供從資料中心到端點再到雲端的整合安全性；透過我們的安全 SD-WAN 解決方案，確保邊緣安全。

Today, we announced a unified solution, enabling organizations to secure and connect work-from-anywhere. By unifying our zero trust, endpoint and network security solutions, we can deliver enterprise-grade security services and threat intelligence that seamlessly follows users on the road, at home and in the office.

今天，我們宣布了一個統一的解決方案，使組織能夠在任何地方保護和連接工作。透過統一我們的零信任、端點和網路安全解決方案，我們可以提供企業級安全服務和威脅情報，無縫追蹤路上、家中和辦公室的用戶。

As for consolidation, customers are increasingly focused on vendor consolidation, automation and platform strategies that provide a broad, integrated and single platform approach to security that effectively protects from a wide range of attack vectors. Our Security Fabric platform provides a broad range of security products integrated on a single operating system.

至於整合，客戶越來越關注供應商整合、自動化和平台策略，這些策略提供了廣泛、整合和單一平台的安全方法，可以有效地防範各種攻擊媒介。我們的 Security Fabric 平台提供整合在單一作業系統上的廣泛安全產品。

Gartner recently called out Fortinet Security Fabric as a platform to provide the cybersecurity mesh architecture approach, or CSMA. The cornerstone of Fortinet CSMA approach is our ASIC-driven FortiGates, which provide on average 5 to 10x more computing power than competitors' firewalls running on common CPUs. The greater computing power allows our software engineers to embed additional security functionality and integration into the operating system, enhancing our price-for-performance advantage.

Gartner 最近將 Fortinet Security Fabric 稱為提供網路安全網狀架構方法 (CSMA) 的平台。 Fortinet CSMA 方法的基石是我們的 ASIC 驅動的 FortiGates，它提供的運算能力比競爭對手在普通 CPU 上運行的防火牆平均高出 5 到 10 倍。更強大的運算能力使我們的軟體工程師能夠嵌入額外的安全功能並整合到作業系統中，從而增強我們的性價比優勢。

The integration extends across our suite of Security Fabric solutions and consists of a complete range of form factors and delivery methods, including physical and virtual appliances, cloud, SaaS and perpetual software as well as hosted and nonhosted solutions.

此整合擴展了我們的 Security Fabric 解決方案套件，並包含一整套外形尺寸和交付方法，包括實體和虛擬設備、雲端、SaaS 和永久軟體以及託管和非託管解決方案。

And lastly, turning to awareness. The explosion of ransomware attacks has led to a greater awareness of the need for cybersecurity technologies. According to the latest global threat landscape report published by our FortiGuard Labs, the number of unique ransomware detections per week increased more than 10x from July of 2020 to June of 2021. The increase in attacks is across entities of all sizes, geographies and industries.

最後，轉向意識。勒索軟體攻擊的激增使人們更加意識到網路安全技術的必要性。 根據我們的FortiGuard 實驗室發布的最新全球威脅情勢報告，從2020 年7 月到2021 年6 月，每週偵測到的獨特勒索軟體數量增加了10 倍以上。行業的實體。

These 3 factors: the convergence of security and networking, the adoption of a cybersecurity mesh architecture, and a greater awareness of threat landscape drove record-setting product revenue growth, contributing to market share gains for Fortinet.

這三個因素：安全和網路的整合、網路安全網狀架構的採用以及對威脅情勢的更高認識推動了創紀錄的產品收入成長，為 Fortinet 的市場份額成長做出了貢獻。

The dramatic product revenue growth was broad-based, with FortiGate and non-FortiGate both posting product revenue growth rates of approximately 50%, while tilting our current revenue mix 450 basis points from higher-margin services revenue to product revenue. FortiGate product revenues were driven by entry-level and high-end FortiGate product revenue growth of 60% and 57%, respectively. Non-FortiGate product revenue growth was driven by several platform products, including mail, sandbox, SIM, switches and virtual firewalls.

產品收入的大幅成長是廣泛的，FortiGate 和非 FortiGate 的產品收入成長率均約為 50%，同時我們目前的收入組合從利潤率較高的服務收入向產品收入傾斜了 450 個基點。入門級和高端 FortiGate 產品收入分別成長 60% 和 57%，推動了 FortiGate 產品收入的成長。非 FortiGate 產品收入的成長是由多種平台產品推動的，包括郵件、沙箱、SIM、交換器和虛擬防火牆。

Rounding out our revenues, we saw service revenue of $530 million, up 24%. Support and related services revenue was up 26% to $243 million, while security subscription services revenue was up 22% to $287 million.

服務收入達 5.3 億美元，成長 24%。支援和相關服務收入成長 26%，達到 2.43 億美元，而安全訂閱服務收入成長 22%，達到 2.87 億美元。

Turning to revenue by geos that's summarized on Slide 5. Revenue in EMEA increased 33%. In the Americas, revenue increased 29%. And APAC posted revenue growth of 43%.

轉向投影片 5 中總結的按地理位置劃分的收入。在美洲，收入成長了 29%。亞太地區營收成長 43%。

Moving to billings. Quarterly billings crossed the $1 billion threshold for the first time in our history. At $1.064 billion, billings were up 42% as enterprises responded to the expanding threat landscape, favoring cost-for-performance leaders and integrated platform for CSMA strategies.

搬到比林斯。季度帳單歷史上首次突破 10 億美元大關。隨著企業應對不斷擴大的威脅情勢，青睞性價比領先的領導者和 CSMA 策略的整合平台，帳單金額達到 10.64 億美元，成長了 42%。

This is especially evident across the enterprise segments. For example, in the large enterprise sector, Global 2000 billings were up 52%, with growth accelerating over the last 3 consecutive quarters. And for the second consecutive quarter, we added over 6,000 new logos across all customer segments. FortiGate billings were up 39% and accounted for 70% of total billings.

這在企業領域尤其明顯。例如，在大型企業領域，全球 2000 強企業的營業額成長了 52%，並且在過去連續 3 個季度加速成長。我們連續第二季為所有客戶群添加了 6,000 多個新標誌。 FortiGate 的帳單成長了 39%，佔總帳單的 70%。

As shown on Slide 6, entry-level and high-end FortiGates posted very strong billings growth. Non-FortiGate billings were up 49%, driving a 1-point billings mix shift to non-FortiGate. The top 10 solutions accounted for 68% of non-FortiGate billings and were up 48%. The number of deals over $1 million increased over 70% to 83 deals and saw Secure SD-WAN deals more than double to 19.

如幻燈片 6 所示，入門級和高端 FortiGates 的帳單成長非常強勁。非 FortiGate 的帳單成長了 49%，推動了 1 個百分點的帳單組合轉向非 FortiGate。排名前 10 的解決方案佔非 FortiGate 帳單的 68%，成長了 48%。超過 100 萬美元的交易數量增加了 70% 以上，達到 83 筆，安全 SD-WAN 交易增加了一倍多，達到 19 筆。

Average contract term increased 3 months year-over-year and 1 month quarter-over-quarter to 29 months. The increase in contract term was driven by the significant increase in G2000 and other large enterprise deals. SD-WAN billings were up 52%, outpacing the company's billings growth and accounted for approximately 14% of total billings and continue to receive industry accolades.

平均合約期限年增 3 個月，月增 1 個月至 29 個月。合約期限的成長是由G2000和其他大型企業交易的大幅增加所推動的。 SD-WAN 帳單成長了 52%，超過了公司的帳單成長，約佔總帳單的 14%，並繼續獲得行業讚譽。

For the second consecutive year, Fortinet was named the leader in the Gartner Magic Quadrant for WAN Edge Infrastructure and positioned #1 for ability to execute. For Critical Capabilities, Fortinet's SD-WAN ranked first in the Small Branch WAN, Security Sensitive and remote work use cases. And consistent with the elevated threat environment and the breadth of ransomware and other attacks, OT billings were up 77%.

Fortinet 連續第二年被評為 Gartner 廣域網路邊緣基礎設施魔力像限的領導者，並在執行能力方面排名第一。對於關鍵功能，Fortinet 的 SD-WAN 在小型分公司 WAN、安全敏感和遠端工作用例中排名第一。與威脅環境的加劇以及勒索軟體和其他攻擊的廣泛性一致，OT 帳單增加了 77%。

Moving to worldwide billings by industry verticals. Among the top 5 verticals, worldwide government grabbed the largest share with a mix of 17% and saw billings growth of 22%. We've made investments to expand our presence and engagement with the government sector. For example, in the U.S., we recently added retired 4-star Admiral Stavridis to our Board of Directors. And yesterday, Fortinet's Federal announced Department of Defense certification approval for an additional 26 Security Fabric solutions.

按垂直產業轉向全球帳單。在排名前 5 名的垂直行業中，全球政府以 17% 的比例佔據最大份額，帳單增加了 22%。我們進行了投資以擴大我們的影響力以及與政府部門的接觸。例如，在美國，我們最近將退休的四星海軍上將斯塔夫里迪斯加入了我們的董事會。昨天，Fortinet 聯邦宣布國防部認證批准另外 26 個安全結構解決方案。

Internationally, we are set to open Fortinet's Federal Government Integration and Innovation Centre in Australia before the end of the year. Utilities, manufacturing, transportation, construction and other verticals that have not consistently been in our top 5 combined for billings growth of 68%. We believe the growth of these verticals is another indicator of the broadening nature of the threat landscape and is driving security investments in industries that may have shown less affluent security budgets and lower internal labor resource levels.

在國際上，我們計劃於今年年底前在澳洲開設 Fortinet 聯邦政府整合和創新中心。公用事業、製造、運輸、建築和其他一直未能躋身前 5 名的垂直行業的營業額合計增長了 68%。我們認為，這些垂直行業的成長是威脅格局擴大的另一個指標，並且正在推動對可能表現出安全預算不太豐富和內部勞動力資源水平較低的行業的安全投資。

On August 31, Fortinet acquired a controlling stake in ALAXALA Networks, a Japan-based networking company, for approximately $64 million. ALAXALA provides high-performance network switches and routers in their local market. The investment increases our total addressable market and reflects our leadership on the convergence of networking and security.

8 月 31 日，Fortinet 以約 6,400 萬美元收購了日本網路公司 ALAXALA Networks 的控股權。 ALAXALA 在當地市場提供高效能網路交換器和路由器。這項投資擴大了我們的總目標市場，反映了我們在網路和安全融合方面的領導地位。

Moving back to the income statement. Product gross margin declined 220 basis points to 60.7%, reflecting the consolidation of ALAXALA's results and a change in our product mix. Product cost increases associated with supply chain constraints were largely offset by our pricing actions.

回到損益表。產品毛利率下降 220 個基點至 60.7%，反映了 ALAXALA 業績的整合和產品結構的變化。與供應鏈限制相關的產品成本增加在很大程度上被我們的定價行為所抵消。

Services gross margins decreased [150] basis points to 86.6% due to ALAXALA and costs associated with the expansion of our data center footprint. The 25.8% operating margin was 30 basis points above the top end of our guidance. Despite pressure from lower gross margins and higher marketing expenses, primarily from the Fortinet Championship, PGA Tour event. Headcount increased 20% to 9,700.

由於 ALAXALA 以及與資料中心規模擴張相關的成本，服務毛利率下降 [150] 個基點至 86.6%。 25.8% 的營業利益率比我們指引的上限高出 30 個基點。儘管面臨毛利率較低和行銷費用較高的壓力，主要來自 Fortinet 錦標賽、PGA 巡迴賽賽事。員工人數增加 20% 至 9,700 人。

Moving to the statement of cash flows summarized on Slide 7 and 8. Free cash flow was $330 million, representing a margin of 38%. Free cash flow benefited from strong billings growth and good billings linearity. On a year-to-date basis, free cash flow margin was 41.5%. We repurchased approximately 370,000 shares of our common stock for a total cost of $109 million at an average price per share of $2.94. The Board increased the share repurchase authorization by $1.25 billion and extended the expiration date to February 2023. The remaining repurchase authorization is approximately $2 billion. We ended the quarter with total cash and investments of $3.4 billion.

轉到投影片 7 和 8 中總結的現金流量表。自由現金流受益於強勁的帳單成長和良好的帳單線性。年初至今，自由現金流利潤率為 41.5%。我們以每股 2.94 美元的平均價格回購了約 370,000 股普通股，總成本為 1.09 億美元。董事會將股票回購授權增加了12.5億美元，並將到期日延長至2023年2月。本季結束時，我們的現金和投資總額為 34 億美元。

Inventory turns increased to 2.9x from 2.7x in the second -- from the second quarter of 2021, reflecting strong product sales in the quarter and some supply chain pressure. DSOs at 63 days returned to pre-pandemic levels. Capital expenditures for the quarter were $69 million, including a payment for the new campus building of $13 million.

從 2021 年第二季開始，庫存週轉率從第二季的 2.7 倍增加到 2.9 倍，反映出該季度強勁的產品銷售和一定的供應鏈壓力。 63 天時的 DSO 恢復到大流行前的水平。該季度的資本支出為 6,900 萬美元，其中包括 1,300 萬美元的新校園建築付款。

As we noted in our last earnings call, we pivoted our capital expenditure strategy to include building out our facilities and operations infrastructure to support our accelerating growth. We estimate fourth quarter capital expenditures to be between $170 million and $190 million. Investments in our future facilities and operations infrastructure account for the sequential increase in CapEx.

正如我們在上次財報電話會議中指出的那樣，我們調整了資本支出策略，包括建造我們的設施和營運基礎設施，以支持我們的加速成長。我們預計第四季度資本支出將在 1.7 億美元至 1.9 億美元之間。對我們未來設施和營運基礎設施的投資導致資本支出持續成長。

Before providing guidance, I'd like to comment on the supply chain because we widely publicized that the rapidly changing macroeconomic environment is causing disruption in global supply chains for companies of all sizes and industries. We expect the worldwide supply chain constraints will present evolving challenges in the fourth quarter and into 2022. The supply chain issues have proven to be extremely dynamic, and I'd like to pause here to acknowledge and thank each member of our operations team for their truly outstanding performance.

在提供指導之前，我想對供應鏈發表評論，因為我們廣泛宣傳，快速變化的宏觀經濟環境正在導致各種規模和行業的公司的全球供應鏈中斷。我們預計全球供應鏈限制將在第四季度直至2022 年帶來不斷變化的挑戰。感謝他們所做的努力。

With regards to pricing, we believe we entered this phase with a hard-earned reputation of being able to provide customers excellent price-for-performance or value. We believe we can leverage this reputation to largely offset our increased cost. We believe our pricing actions have been met with understanding by our customers, as evidenced by our Q3 results and strong pipeline growth. We view the current situation as a supply challenge, not a demand challenge.

在定價方面，我們相信我們在進入此階段時享有來之不易的聲譽，能夠為客戶提供卓越的性價比或價值。我們相信我們可以利用這種聲譽來很大程度上抵消我們增加的成本。我們相信我們的定價行為得到了客戶的理解，第三季的業績和強勁的管道成長證明了這一點。我們將當前情況視為供應挑戰，而不是需求挑戰。

Now I'd like to review our outlook for the fourth quarter summarized on Slide 9, which is subject to disclaimers regarding forward-looking information that Peter provided at the beginning of the call. The following guidance reflects our best effort to estimate the supply chain impact.

現在我想回顧一下投影片 9 中總結的第四季度展望，該展望受到有關 Peter 在電話會議開始時提供的前瞻性資訊的免責聲明的約束。以下指南反映了我們為估計供應鏈影響所做的最大努力。

For the fourth quarter, we expect billings in the range of $1.165 billion to $1.215 billion; revenue in the range of $940 million to $970 million; non-GAAP gross margin of 75% to 76%; non-GAAP operating margin of 27% to 28%, which includes an estimated 200 basis point headwind from acquisitions, foreign exchange and increased travel and marketing costs; non-GAAP earnings per share of $1.10 to $1.15, which assumes a share count of between 168 million and 170 million. We expect the non-GAAP tax rate of 21%. Based on our very strong third quarter performance and the upside I just provided to the fourth quarter expectations, we are once again raising our 2021 guidance.

我們預計第四季的營收將在 11.65 億美元至 12.15 億美元之間；收入在9.4億美元至9.7億美元之間；非公認會計準則毛利率為 75% 至 76%；非公認會計準則營業利潤率為 27% 至 28%，其中包括來自收購、外匯以及旅行和行銷成本增加的估計 200 個基點的阻力；非公認會計準則每股收益為 1.10 美元至 1.15 美元（假設股票數量在 1.68 億至 1.7 億股之間）。我們預期非 GAAP 稅率為 21%。基於我們非常強勁的第三季業績以及我剛剛提供的第四季預期的上行空間，我們再次提高了 2021 年的指導。

We expect billings in the range of $4.04 billion to $4.09 billion, which at the midpoint represents growth of approximately 31.5%; revenue in the range of $3.32 billion to $3.35 billion, which at the midpoint represents growth of 28.5%; total service revenue in the range of $2.08 billion to $2.09 billion, which represents growth of 24% and implies a full year product revenue growth of 36%; 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 $3.85 to $3.95, which assumes a share count of between 167 million and 169 million.

我們預計營業額在 40.4 億美元至 40.9 億美元之間，中間值代表成長約 31.5%；營收在 33.2 億美元至 33.5 億美元之間，中間值成長 28.5%；總服務收入在20.8億美元至20.9億美元之間，成長24%，意味著全年產品收入成長36%；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 3.85 美元至 3.95 美元，假設股票數量介於 1.67 億股至 1.69 億股之間。

We expect our non-GAAP tax rate to be 21%. We expect cash taxes to be approximately $130 million, which includes a $47 million tax payment made in the fourth quarter.

我們預期非 GAAP 稅率為 21%。我們預計現金稅約為 1.3 億美元，其中包括第四季度繳納的 4,700 萬美元稅款。

Along with Ken, I'd like to thank our partners, our customers and all members of the Fortinet team for all their hard work, execution and outstanding success. I'll now hand the call back over to Peter to begin the Q&A.

我要與 Ken 一起感謝我們的合作夥伴、客戶以及 Fortinet 團隊的所有成員，感謝他們的辛勤工作、執行力和卓越的成功。我現在將把電話轉回給 Peter 開始問答。

(Operator Instructions) Eli, please open up the call for Q&A.

（操作員指示）Eli，請撥打電話進行問答。

(Operator Instructions) And now for your first question, we have Brian Essex from Goldman Sachs.

（操作員說明）現在請來自高盛的 Brian Essex 回答你的第一個問題。

Congrats on some really nice results this quarter. I guess, Keith, you spent some extra time talking about the supply chain, and it's certainly the most frequent question I've gotten from investors, particularly over the past 3 weeks. So could you maybe help us understand what kind of headwind you're quantifying or accounting for in your 4Q guide, where you might see risk in the supply chain? And then what you might be seeing from peers, particularly where you may be benefiting from having supply where your peers may not have product?

恭喜本季取得了一些非常好的結果。我想，基思，你花了一些額外的時間來談論供應鏈，這肯定是我從投資者那裡得到的最常見的問題，特別是在過去的三週。那麼，您能否幫助我們了解您在第四季度指南中量化或解釋了哪種逆風，您可能會在供應鏈中看到風險？然後，您可能會從同行那裡看到什麼，特別是當您可能從同行可能沒有產品的供應中受益時？

Thanks, Ryan. And I don't know that anybody knows all the answers to the questions that you've kind of articulated. I'll give you some color, if you will. I think we saw a little bit of supply chain pressure in the second -- in the third quarter, as I alluded to, but obviously, the number is nothing that was terribly noteworthy. I do think the guidance that we've given for the fourth quarter is appropriately conservative, if you will, in terms of what we see for supply chain and what we would call backlog in the fourth quarter.

謝謝，瑞安。我不知道有人知道你所提出的問題的所有答案。如果你願意的話，我會給你一些顏色。正如我所提到的，我認為我們在第二季（第三季）看到了一點供應鏈壓力，但顯然，這個數字並不是非常值得注意。我確實認為，就我們對供應鏈的看法以及我們所說的第四季度積壓而言，如果您願意的話，我們為第四季度提供的指導是適當保守的。

I think we feel good about the guidance that we've given. I think the -- if you look at kind of the general tone and what we're hearing from our operations team, I think there is some time in the third quarter where every day was very dynamic for them, with people calling and then having to scramble about component matters and contract manufacturing commitments or what have you. I'm hearing less about that at this point. That's probably very early on.

我認為我們對所提供的指導感到滿意。我認為，如果你看看總體基調以及我們從營運團隊那裡聽到的信息，我認為在第三季度的某個時候，他們每天都充滿活力，人們打電話來，然後爭奪組件問題和合約製造承諾或其他什麼。目前我對此的了解較少。這可能是很早的事了。

I would also offer that the backlog or supply chain first appears for us in some of the Fabric products, the non-FortiGate. And I think that will continue on a little bit into the fourth quarter and probably also get to the FortiGate to some extent in the fourth quarter as well. Getting out to 2022, I think everybody is kind of in the same boat and trying to understand when we're actually going to see something that's a real marked improvement. And I think we'll probably kind of hold back commenting on that for the next several months until we get closer to providing guidance for the next year.

我還想提出，積壓或供應鏈首先出現在一些 Fabric 產品中，即非 FortiGate。我認為這種情況將持續到第四季度，並且可能也會在第四季度在某種程度上影響 FortiGate。到 2022 年，我認為每個人都在同一條船上，並試圖了解我們何時真正會看到真正顯著的改進。我認為，在接下來的幾個月裡，我們可能不會對此發表評論，直到我們接近為明年提供指導。

Brian, this is Ken. A few other points to add on top of what Keith said. I think we are a little bit better positioned compared to competitors. First, it's really -- we have the quantity much larger than a competitor, like we're probably like 3x compared to the Cisco in unit shipment, maybe probably 10x than Palo Alto and some other, which give us better negotiation power with some of the supply. And also, we manage all this more directly compared to our competitor who go through some third-party. So that does give us better visibility and also can act quick earlier.

布萊恩，這是肯。在基斯所說的基礎上還需要補充一些其他觀點。我認為與競爭對手相比，我們的定位更好一些。首先，我們的數量確實比競爭對手大得多，就單位出貨量而言，我們可能是思科的3 倍，可能是帕洛阿爾托和其他一些公司的10 倍，這使我們有更好的談判能力與一些供應。而且，與透過第三方進行管理的競爭對手相比，我們更直接地管理這一切。因此，這確實為我們提供了更好的可見性，也可以更早迅速採取行動。

Second, we have quite a broad product line, both in the FortiGate and also non-FortiGate. It's more easy for a customer to really go to the next line of product, have a similar performance and [outrunning] the FortiOS in FortiOS. So it's more easy to using some different product to (inaudible) some of the product shortage.

其次，我們擁有相當廣泛的產品線，包括 FortiGate 和非 FortiGate。對於客戶來說，更容易真正轉向下一個產品線，擁有類似的性能並在 FortiOS 中[超越] FortiOS。因此，使用一些不同的產品來解決（聽不清楚）某些產品短缺的情況會更容易。

And also, we have a great team operation side. And at the same time, we have a culture more invested in the long term, both on the inventory, some other things compared to a competitor to me, some -- even like 5, 10, 15 years ago, we tend to keep some more inventory to meet some customer urgent needs. So that actually benefit us in this supply chain issue.

而且，我們有一個很好的團隊運作面向。同時，我們有一種更注重長期投資的文化，無論是在庫存方面，還是在其他方面，與我的競爭對手相比，有些——甚至像5、10、15 年前，我們傾向於保留一些更多的庫存可以滿足一些客戶的緊急需求。因此，這實際上對我們在供應鏈問題上有利。

Next we have Tal Liani from Bank of America.

接下來是美國銀行的塔爾·利亞尼 (Tal Liani)。

I want to focus on the most important part, which is the growth acceleration. Your revenue -- your product revenue growth went from 25% to 41% to 51% in the last 3 quarters. And your billing growth went from 14% to 35% to 42%, which is just a major acceleration. The question is, can you identify the key areas? I know that a lot of areas are growing. But when you look at material areas, meaning the most -- the highest contribution to the growth acceleration, what are the key areas? Can you share with us the key areas where you see the highest growth in terms of dollars? And can you also give us an update on SD-WAN specifically?

我想專注於最重要的部分，那就是成長加速。您的收入—您的產品收入在過去 3 個季度中從 25% 成長到 41%，再到 51%。您的帳單成長從 14% 上升到 35% 再到 42%，這只是一個重大的加速。問題是，你能找出關鍵領域嗎？我知道很多領域都在成長。但是，當你看看物質領域，也就是對成長加速貢獻最大的領域時，關鍵領域是什麼？您能與我們分享您認為以美元計算成長最快的關鍵領域嗎？能給我們具體介紹一下 SD-WAN 的最新情況嗎？

You can see both the FortiGate and also non-Fortigate, all kind of a revenue growth of 50%. FortiGate is more related to -- because like -- whether the internal segmentation built to protect all this kind of ransomeware or go to the WAN, Secure SD-WAN. And also the non-FortiGate is more tied to the story, the Fabric -- Fortinet Security Fabric, which is also Gartner said in promoting the core cybersecurity mesh architecture, which can reduce the financial cost of a single incident by like 90%. I think that these both contribute for the growth, like Keith said. And also some vendor consolidation, we see some smaller vendors starting to kind of go weaker and weaker. So we do see some market share gain here also.

您可以看到 FortiGate 和非 Fortigate，所有收入都成長了 50%。 FortiGate 更相關的是——因為就像——是為了保護所有此類勒索軟體而建構的內部分段，還是為了保護 WAN、安全 SD-WAN。而非FortiGate則更貼近故事，即Fabric——Fortinet Security Fabric，這也是Gartner在推廣核心網路安全網狀架構時所說的，可以將單一事件的財務成本降低90%左右。正如基思所說，我認為這些都有助於成長。還有一些供應商整合，我們看到一些較小的供應商開始變得越來越弱。因此，我們確實也看到了一些市場份額的成長。

Okay. And when you look at 2022, and I know you don't provide guidance, but when you look forward, do you see the same drivers continuing to support growth acceleration? Or how do you deal with these high targets next year?

好的。當你展望 2022 年時，我知道你沒有提供指導，但當你展望未來時，你是否看到相同的驅動因素繼續支持成長加速？或是明年你如何應對這些高目標？

We do see this trend has not slowed down or will last for probably a few years, whether we call secure-driven networking, our Security Fabric, which really we're helping the enterprise or service provider to get better security to the customer [on these things]. So, so far, we don't see anything slow down. We feel we are well positioned to keep and gain market share.

我們確實看到這種趨勢並沒有放緩，或者可能會持續幾年，無論我們稱之為安全驅動的網絡，還是我們的安全結構，我們實際上是在幫助企業或服務提供者為客戶提供更好的安全性。所以，到目前為止，我們沒有看到任何放緩的情況。我們認為我們處於有利地位，可以保持並獲得市場份額。

I would just echo what Ken said, Tal. I think the threat landscape is a hot topic of conversation, and all quarters of the world is seeing right now, and it doesn't seem like that's going to abate any time soon. I think the need -- what Ken and the team have built here with providing security and networking speeds is critical.

我只是重複肯所說的話，塔爾。我認為威脅情勢是一個熱門話題，世界各地現在都在關注這個問題，而且這種情況似乎不會很快減弱。我認為 Ken 和團隊在這裡建立的提供安全性和網路速度的需求至關重要。

But I think also this platform of what Gartner is now calling the mesh architecture, the cybersecurity mesh architecture, I think consistent with Gartner's other reports about the percentage of companies that are looking for consolidation, I think Ken has commented on that and how that's going to continue to increase. It certainly seems that those tailwinds are poised to continue to exist as we get into 2022.

但我認為 Gartner 現在稱之為網狀架構、網路安全網狀架構的平台，我認為與 Gartner 關於尋求整合的公司百分比的其他報告一致，我認為 Ken 對此以及進展發表了評論繼續增加。進入 2022 年，這些有利因素似乎仍將繼續存在。

All right. Next, we have Shaul Eyal from Cowen.

好的。接下來是來自 Cowen 的 Shaul Eyal。

Congrats on the performance and guidance, guys. Keith, the Federal vertical had a good performance. Was it just a typical third quarter government seasonality? Or do you see that sustainable going forward, given your recent investments within this vertical?

恭喜你們的表現和指導。 Keith，聯邦垂直部門表現不錯。這只是典型的第三季政府季節性因素嗎？或者考慮到您最近在這個垂直領域的投資，您認為這種趨勢可持續發展嗎？

Yes. So keep in mind, for us, the government is a worldwide number when we talk about it. So it includes some U.S. federal, international governments, also state and local governments, et cetera. It has been a very strong vertical of ours for well over a year, if not 2 years now. And I certainly don't see any reason that just on that basis that it will slow down. And I think if you overlay that with the investments that Ken and team are now making, particularly as it relates to the U.S. Federal team, I think there's some opportunities for us to explore and exploit hopefully as we move forward.

是的。因此請記住，對我們來說，當我們談論政府時，它是一個世界性的數字。因此它包括一些美國聯邦、國際政府、州和地方政府等。一年多（甚至兩年）以來，它一直是我們的一個非常強大的垂直領域。我當然看不出有任何理由表明它會在此基礎上放緩。我認為，如果你將其與肯和團隊現在正在進行的投資相結合，特別是與美國聯邦團隊相關的投資，我認為在我們前進的過程中，我們有希望探索和利用一些機會。

Next we have Michael Turits from KeyBanc.

接下來有來自 KeyBanc 的 Michael Turits。

Keith, I'd let you drill down on the FortiGate side and really understand where the purchasing is taking place and for what. It's good to see, I would think, that we're modernizing data centers. Is it data center expansion? Is it displacements? And again, surprising perhaps, considering the move to cloud. So just drill down the physical on-prem/FortiGate side.

Keith，我會讓您深入了解 FortiGate 方面，真正了解採購在哪裡進行以及採購的目的。我認為，很高興看到我們正在實現資料中心的現代化。是資料中心擴建嗎？是位移嗎？考慮到向雲端的遷移，這也許令人驚訝。因此，只需深入了解實體本地/FortiGate 端即可。

I think what we're -- and I hate to give compliments to my peers. But I think what we're really seeing here is really strong execution from the sales team. I think we came into this conversation feeling that we had a very strong product suite. But I think the sales team has done a stellar job. And we talked to them about the same question you just asked me, where is this coming from?

我認為我們是什麼——我討厭讚美我的同事。但我認為我們在這裡真正看到的是銷售團隊的強大執行力。我認為我們在進行這次談話時感覺我們擁有非常強大的產品套件。但我認為銷售團隊做得非常好。我們和他們討論了你剛才問我的同一個問題，這是從哪裡來的？

I can hear in them the confidence when it comes to displacements. There's certainly no competitor that they're afraid of. I can hear them articulate back the platform strategy, the land-and-expand strategy. I can see them using some of the tools and products and technologies that we've invested in and invested in them, and they're leveraging them, I think, very successfully.

我可以從他們身上聽到對位移的信心。他們當然沒有害怕的競爭對手。我可以聽到他們清晰地闡述平台策略、土地擴張策略。我可以看到他們使用我們已經投資和投資的一些工具、產品和技術，我認為他們正在非常成功地利用它們。

So it was a question going back, I think, that Tal had asked about, and we used this term before, rising tide lifting all boats. And I think we saw that in the quarter. There wasn't a weak geography. There wasn't a weak product suite. I think everybody performed very strongly.

所以我認為這是一個可以追溯到塔爾問過的問題，我們之前用過這個詞，漲潮舉起所有的船。我認為我們在本季度看到了這一點。地理並不薄弱。不存在薄弱的產品套件。我認為每個人都表現得非常出色。

Yes, to echo Keith, the Global 2000 growing over 50% and also the investment we made like last year and the year before in some big enterprise and some service providers are starting paying off.

是的，呼應基斯的觀點，全球 2000 強成長了 50% 以上，而且我們去年和前年對一些大企業和一些服務提供者的投資也開始得到回報。

Yes. I think it's the same question, so hopefully not to, but I'm just trying to figure out, of course, execution and competition doing well that way. But where are we in terms of people just buying stuff to put in data centers when we're really in a cloud mode here. Is it because of the refresher? Why are we seeing that investment?

是的。我認為這是同樣的問題，所以希望不要這樣做，但我只是想弄清楚，當然，執行和競爭以這種方式表現良好。但是，當我們真正處於雲端模式時，我們在哪裡，人們只是購買東西放在資料中心。是因為複習的緣故嗎？為什麼我們會看到這項投資？

I think it all plays well, like, long-term ASIC strategy, which had a lot of performance and the more function and, at the same time, cost lower and low power consumption also. That's where the security is starting to expand, inside the data, inside a company, internal network. And also, the WAN side, SD-WAN 5G, we also see a lot of driving from that angle. So it's really starting to expand to the whole infrastructure instead of traditionally just secure Internet border. So that has a much bigger total addressable market. Sometimes we call secure-driven networking, but it's really a more expanded market and has a more strong security need.

我認為這一切都發揮得很好，就像長期的 ASIC 策略一樣，它具有更高的性能和更多的功能，同時成本更低，功耗也更低。這就是安全性開始擴展的地方，在資料內部、公司內部、內部網路中。此外，在廣域網路方面，SD-WAN 5G，我們也從這個角度看到了許多推動力。因此，它確實開始擴展到整個基礎設施，而不僅僅是傳統上的安全互聯網邊界。因此，這有一個更大的總目標市場。有時我們稱之為安全驅動的網絡，但它實際上是一個更廣泛的市場，並且具有更強烈的安全需求。

Next we have Sterling Auty from JPMorgan.

接下來有來自摩根大通的斯特林·奧蒂。

I'm going to ask my one question as kind of an extension of what Michael was just kind of talking about. I'm curious, as you look at the growth in the quarter, even if it's qualitative, can you help characterize for us how much of that growth is coming from actual displacement of solutions, both traditional cybersecurity and networking, versus how much of that growth is coming from existing customers buying additional expansion, so additional products just to build out to handle their growth needs?

我將問我的一個問題，作為邁克爾剛才所說的內容的延伸。我很好奇，當您看到本季的成長時，即使是定性的，您能否幫助我們描述一下這種成長有多少來自傳統網路安全和網路解決方案的實際替代，以及其中有多少成長來自於現有客戶購買額外的擴展，那麼額外的產品只是為了滿足他們的成長需求而建構的嗎？

I think the metric I would give is 6,000 new logos. So I think that -- I'm going to go back and say, I mean, the execution was very strong across the board. Did we -- was there a penetration -- greater penetration in our installed base of customers? Absolutely, no doubt about it. But at the same time, that's 2 quarters back to back now that we've added 6,000 new logos. And I know some of those are small enterprises. But we are getting the add-backs that we've always coveted. And I think coming with more add-backs, I think we were seeing stronger execution as well.

我認為我給出的衡量標準是 6,000 個新徽標。所以我認為——我要回過頭來說，我的意思是，整體執行力非常強大。我們的客戶群中是否有滲透率？絕對是，毫無疑問。但同時，我們已經添加了 6,000 個新徽標，這已經是連續 2 個季度的時間了。我知道其中一些是小企業。但我們正在得到我們一直夢寐以求的回加。我認為隨著更多的回加，我們也看到了更強大的執行力。

Also, the existing customers keep expanding their security infrastructure approach like adding to the WAN side, SD-WAN 5G and also expand to the internal segmentation of Wi-Fi security, data center security. So that's why I think the -- both. But I do see probably a little bit more come from the customer keeping -- expanding their security infrastructure.

此外，現有客戶不斷擴展其安全基礎設施方法，例如添加到 WAN 側、SD-WAN 5G，並擴展到 Wi-Fi 安全性、資料中心安全的內部細分。所以這就是為什麼我認為兩者都是。但我確實看到可能更多來自於客戶保留——擴展他們的安全基礎設施。

Next we have Rob Owens from Piper Sandler.

接下來我們有來自派珀·桑德勒 (Piper Sandler) 的羅布·歐文斯 (Rob Owens)。

I guess I'll pivot a little bit from Sterling and ask about G2K specifically? And what is driving the strength in G2K billings? Is that product-related? Is it just better distribution relationships that are getting you into these accounts? And who do you think share is coming from in this market?

我想我會從斯特林的角度稍微轉向一下，具體詢問一下 G2K 的情況？是什麼推動了 G2K 帳單的強勁成長？這與產品有關嗎？是否只是更好的分銷關係讓您進入這些帳戶？您認為這個市場的市佔率來自誰？

I think the -- I would give a general comment in terms of where -- who is the market share gainers and who are the market share donors. I don't think there'll be any surprises if I'm asked to mention names in terms of who I thought those were. In terms of distribution, I think when you get in particularly into the U.S. market with a large enterprise-focused distributors, you've got to -- as a company, you've got to invest on time and bring opportunities to them and demonstrate that you have a superior product, a superior offering. And I think that the team has done the heavy lifting on that. And I do believe that we are getting more momentum, if you will, from those large U.S. distributors that maybe we did not have previously. So I think there's some of that.

我認為——我會就誰是市場份額獲得者以及誰是市場份額捐贈者進行一般性評論。如果我被要求說出我認為的名字，我認為不會有任何意外。在分銷方面，我認為當你進入美國市場並擁有以大型企業為中心的分銷商時，你必須——作為一家公司，你必須按時投資，為他們帶來機會並展示您擁有優質的產品、優質的產品。我認為團隊已經完成了這方面的繁重工作。我確實相信，如果你願意的話，我們將從那些美國大型經銷商那裡獲得更多動力，而這可能是我們以前沒有的。所以我認為有一些。

And I think we've continued to invest in both the sales and the marketing. We knew all along for several years now that we needed to improve our coverage in terms of number of accounts that were assigned to reps and the people that we're bringing in from outside that maybe had more of an enterprise experience and less of a channel experience, et cetera. So I do think that all those things have combined and are demonstrating the success. As you point out, G2000 growth at over 52% and accelerated for the last 3 quarters.

我認為我們繼續在銷售和行銷方面進行投資。幾年來我們一直知道，我們需要提高分配給銷售代表的客戶數量以及我們從外部引進的人員的覆蓋範圍，這些人員可能擁有更多的企業經驗，而不是管道。所以我確實認為所有這些因素結合在一起並正在證明成功。正如您所指出的，G2000 成長超過 52%，並且在過去 3 個季度中加速成長。

Now we have Hamza Fodderwala from Morgan Stanley.

現在請來了來自摩根士丹利的哈姆扎·福德瓦拉 (Hamza Fodderwala)。

I'm going to keep it to one question. But just on the OT side, you talked about that growing 77% this quarter. I think that was the first time you mentioned that product specifically. Just curious, can you give us any rough sense of how material that's becoming to your overall billings? And what's been driving that in more recent quarters?

我將只討論一個問題。但就 OT 而言，您談到本季成長了 77%。我認為這是您第一次具體提到該產品。只是好奇，您能否讓我們大致了解一下這對您的整體帳單有何影響？最近幾季是什麼推動了這一趨勢？

Yes. I think it's not as big as SD-WAN, but growing faster. But also, I don't think we're -- I think that it's reached a point, if you will, in terms of size that we're comfortable and we think it's worthwhile making sure that we share with people outside the company those growth levels. If you combine SD-WAN and OT together, as a percentage of billings, you're going to get to something I think that's over 20% of our total billings.

是的。我認為它沒有SD-WAN那麼大，但成長得更快。但我也不認為我們——如果你願意的話，我認為就規模而言，我們已經達到了一個讓我們感到滿意的地步，我們認為值得確保我們與公司外部的人分享這些增長水平。如果將 SD-WAN 和 OT 結合在一起，以佔帳單的百分比計算，我認為這將占我們總帳單的 20% 以上。

Next, we have Adam Borg from Stifel.

接下來是來自 Stifel 的 Adam Borg。

Maybe just for Ken, so back in September, you guys signed a partnership with Linksys around securing work-from-home environments and segmenting corporate and personal networks. And I know one of your competitors also announced a similar idea. So how should we think about the idea of securing home networks and effectively the home becoming an extension of a branch office of one and the opportunity to do that as we live in this work-from-anywhere world going forward?

也許只是為了 Ken，所以早在 9 月份，你們就與 Linksys 簽署了合作夥伴關係，圍繞著保護在家工作環境以及分割企業和個人網絡。我知道你們的一位競爭對手也宣布了類似的想法。那麼，我們應該如何考慮保護家庭網絡的想法，並有效地使家庭成為一個分支機構的延伸，以及在我們生活在這個隨時隨地工作的世界中實現這一目標的機會？

We see, it's a new market. There's a lot of potential supporting work-from-anywhere, that's where we partnered with Linksys and we tracked down in -- the home networking area for quite a while. And we do believe, eventually a lot of the result is IoT, some other things connect online and also a lot of work-from-home and school-from-home, all these kind of things, they all will need security, which we combine with the network security -- endpoint security and also the cloud, some other SASE solution. So we do feel it's a big long-term potential. But it's not quite -- I mean the business actually ramped up quickly, but it eventually will contribute more revenue to the company.

我們看到，這是一個新市場。任何地方都有很多潛在的支援工作，這就是我們與 Linksys 合作的地方，並且我們在家庭網路領域進行了相當長的一段時間的追蹤。我們確實相信，最終很多結果是物聯網，其他一些東西在線連接，還有很多在家工作和在家上學，所有這些東西，它們都需要安全性，我們與網路安全——端點安全以及雲端、其他一些SASE解決方案相結合。所以我們確實認為這是一個巨大的長期潛力。但事實並非如此——我的意思是業務實際上成長很快，但最終將為公司貢獻更多收入。

And next we have Jonathan Ho from William Blair.

接下來是威廉布萊爾的喬納森何 (Jonathan Ho)。

Congrats on the strong results. I just wanted to, I guess, understand a little bit better sort of the dynamics around the price increases to your base. Can you give us a sense of maybe the magnitude or impact to the quarter from those increases? And is there a potential for that to stick even beyond some of these supply chain challenges?

祝賀取得強勁的成果。我想，我只是想更了解您的基礎價格上漲的動態。您能否讓我們了解這些成長對本季的影響程度或影響？是否有可能超越這些供應鏈挑戰？

Yes. We kind of -- we'll carefully increase the price based on our cost increase, which are also kind of supported by some of our partners. And at the same time, because we have much better performance-price ratio and also more functions, especially on the FortiGate side, so we do feel we have more room to address by some of the price, and still our customers do like the product. So since, we did some price increase, and we'll just offset the cost increase and will get margin back on line.

是的。我們會根據成本的增加謹慎地提高價格，這也得到了我們一些合作夥伴的支持。同時，因為我們的性價比更好，功能也更多，特別是在FortiGate方面，所以我們確實覺得我們在一些價格上還有更大的空間，而且我們的客戶仍然喜歡這個產品。因此，從那時起，我們進行了一些價格上漲，我們將抵消成本增加並將利潤恢復到正常水平。

Yes. I would add to that, I think, Jonathan, one of the metrics that we looked at in the third quarter was just our ability to hold the line on the price increases, which were largely effective on August 1. I say largely because you have to give notice to your channel partners, which is appropriate. And you can imagine them taking certain actions to get orders in the first month of the quarter, if you will. So it gets a little bit distorted that way.

是的。我想補充一點，喬納森，我們在第三季度關注的指標之一就是我們控制價格上漲的能力，這在 8 月 1 日基本上有效。通知（這是適當的）。如果您願意的話，您可以想像他們採取某些行動來在該季度的第一個月獲得訂單。所以這樣就有點扭曲了。

But we do look at our ASPs and wanting to make sure in our discounting that we're not giving back that price increase, if you will. And overall, I think the headline is that we think we were -- on the direct product line, I think it was accretive to the margin in the quarter. And I emphasize direct because as volatile as it is, predicting things like expedite fees and sometimes freight as well can come into that line. So I think overall, when you factor in direct and indirect, we're probably in a wash for the quarter.

但我們確實會關注我們的平均售價，並希望在折扣中確保我們不會回饋價格上漲（如果您願意的話）。總的來說，我認為標題是我們認為我們在直接產品線上，我認為它增加了本季的利潤。我強調直接，因為儘管它很不穩定，但預測諸如加急費和有時運費之類的事情也可能會進入該行。因此，我認為總體而言，當您考慮直接和間接因素時，我們本季可能會遭遇困境。

Next we have Gray Powell from BTIG.

接下來有來自 BTIG 的 Gray Powell。

Congratulations on the good numbers. So yes, within your non-FortiGate billings, can you roughly give us a sense as to how much is related to appliances versus software and cloud? And then how should we think about supply chain issues potentially impacting non-FortiGate in Q4?

恭喜你取得了好成績。那麼，是的，在您的非 FortiGate 帳單中，您能否大致讓我們了解有多少與設備相關，而不是與軟體和雲端相關？那麼我們該如何考慮第四季可能影響非 FortiGate 的供應鏈問題呢？

Yes. I think the non-FortiGate mix is something on the order of about -- we've talked about this before, something in the order of 30% to 40% of that is cloud or software, and the remainder would be a hardware form factor. And as I mentioned in the call, I think the first place that we saw supply chain pressure in this third quarter was in non-FortiGate, more specifically around switches and access points.

是的。我認為非 FortiGate 的混合大約是——我們之前討論過這個，其中大約 30% 到 40% 是雲端或軟體，其餘的是硬體外形因素。正如我在電話中提到的，我認為第三季我們首先看到的供應鏈壓力是在非 FortiGate 領域，更具體地說是在交換機和接入點方面。

Next we have Andrew Nowinski from Wells Fargo.

接下來有來自富國銀行的安德魯‧諾溫斯基 (Andrew Nowinski)。

Congrats on a great quarter. I want to ask about the high end. There was certainly better than expected, I think, over 37% of your FortiGate sales, which looks like it was the highest level of spend in at least the last 2 years. Can you just talk about the drivers of the high end and whether the 5G rollouts and your leadership position in the carrier market might be contributing to that?

恭喜您度過了一個出色的季度。我想問一下高端的。我認為，你們的 FortiGate 銷售額的 37% 以上肯定好於預期，這看起來是至少過去兩年來的最高支出水準。您能否談談高端市場的驅動因素以及 5G 的推出以及您在營運商市場的領導地位是否會對此做出貢獻？

Yes, the big enterprise, the Global 2000 definitely contributed some high-end growth. And also on the product refresh side, in the last 1 to 2 years, we also refreshed the high end. You've seen the latest ASIC [foray to] NP7, which has a 5x better performance and more function compared to the previous NP6, which I think the high end, we probably refreshed like maybe 80% of the [parts] already. So that also is having benefited with some of the refresh we made in the last 1 to 2 years.

是的，大企業、全球2000強肯定貢獻了一些高端成長。還有在產品刷新方面，最近一兩年，我們也刷新了高階。您已經看到了最新的 ASIC [涉足] NP7，與之前的 NP6 相比，它的性能提高了 5 倍，功能更多，我認為它是高端產品，我們可能已經更新了 80% 的 [部件]。因此，這也得益於我們在過去 1 到 2 年中所做的一些更新。

No contribution from the 5G carrier class customers? There is more in the enterprise?

5G電信級客戶沒有貢獻？企業裡還有更多嗎？

There are some contribution from SD-WAN. But the 5G is still in the ramp-up stage. I don't see much, but I do see it's a huge potential.

SD-WAN 做出了一些貢獻。但5G仍處於爬坡階段。我看不到太多，但我確實看到它有巨大的潛力。

Next, we have Irvin Liu from Evercore ISI.

接下來是來自 Evercore ISI 的 Irvin Liu。

This question is for either Ken or Keith. You have the opportunity to meet with several customers and partners along with new prospects at your first-of-its-kind Security Summit [that's the place at] your sponsored PGA Fortinet Championship event. Can you just talk about whether you're seeing -- what you're seeing from a customer traction perspective post the event? And perhaps if the event had led to a notable uptick in visibility and mind share among customers?

這個問題是問 Ken 或 Keith 的問題。您有機會在您贊助的 PGA Fortinet 錦標賽賽事舉辦的首屆安全高峰會上與多個客戶和合作夥伴以及新的潛在客戶會面。您能否談談在活動結束後您是否從客戶吸引力的角度看到了什麼？也許該活動是否導致客戶的知名度和思想佔有率顯著上升？

I think the Head of Marketing asked that question. But it's a good question. I think we'll both...

我認為行銷主管問過這個問題。但這是一個好問題。我想我們都會...

Yes. It's probably one of the biggest marketing investment we have made. But definitely, we see more and more successful result. A lot of customers and a lot of partners really appreciate all this -- the Fortinet Champion PGA effort there. And also, we're using the platform to bring different customers, partners altogether to share, communicate their experience and also to do training education. So we do see this as really helping a lot of the marketing sales effort we have and also generate a lot of new leads for them this way. It's a very successful event.

是的。這可能是我們所做的最大的行銷投資之一。但可以肯定的是，我們看到了越來越多的成功結果。 很多客戶和許多合作夥伴都非常感謝這一切—Fortinet Champion PGA 的努力。此外，我們也利用這個平台讓不同的客戶、合作夥伴一起分享、交流他們的經驗，並進行訓練教育。因此，我們確實認為這確實對我們的行銷銷售工作有很大幫助，並且還透過這種方式為他們創造了許多新的銷售線索。這是一次非常成功的活動。

Yes. I would come over the top and completely echo what Ken had to say. I just -- I'm shocked at how enthusiastic I am about how that event came out, whether we look at what we call white space names that we got from, say, S&P 500. The percentage of attendees that were noncustomers, and they would sit with us in one-on-one sessions and hear more about our story, and the household names that were there, it was fantastic.

是的。我會超越並完全回應肯所說的話。我只是 - 我對我對這次活動的熱情如此熱情感到震驚，無論我們是否看看我們從標準普爾 500 指數中獲得的所謂空白名稱。在對一的會議上，更多地了解我們的故事，以及那裡家喻戶曉的名字，這太棒了。

I think the branding, what the marketing team pulled together with -- together with Silverado Country Club, it's extremely successful. And I think also, it kind of goes back to some of the comments we made earlier in the conversation. I think it was -- it really struck Fortinet at the right time in terms of its maturity, right? I think that the team here was really in a good position to execute against that.

我認為行銷團隊與西爾維拉多鄉村俱樂部的品牌推廣非常成功。我還認為，這可以追溯到我們之前在談話中發表的一些評論。我認為，就其成熟度而言，它確實在正確的時間讓 Fortinet 震驚了，對嗎？我認為這裡的團隊確實處於一個很好的位置來應對這一問題。

I was in a customer meeting yesterday here in Sunnyvale with a very large company that came to the event. And so it was a follow-up. And there have been other very large companies that have come to our EBC events here in Sunnyvale just in the first 1.5 months after the event. I'm just really impressed with what the guys did -- guys and ladies, excuse me.

昨天我在桑尼維爾與一家參加這項活動的非常大的公司參加了一次客戶會議。所以這是一個後續行動。就在活動結束後的前 1.5 個月內，還有其他非常大的公司來參加我們在桑尼維爾舉辦的 EBC 活動。我對這些傢伙所做的事情印象深刻——夥計們，女士們，對不起。

(Operator Instructions) Next you have Keith Bachman from BMO.

（操作員說明）接下來有 BMO 的 Keith Bachman。

I was -- wanted to direct us towards Keith. Keith, as you think about the billings guide, what you're suggesting, even at the high end, the billing sequential growth would be about 13%. And in the past 2 years, you've grown billings sequentially about 28%. So obviously, a little less on the guidance. And I'm just wondering if you could just give us some color or thoughts around that. And in particular, is that a reflection of -- was there any kind of pull-in that you think about on the billings where customers are concerned about not getting product?

我想引導我們去找基斯。 Keith，當您考慮帳單指南時，您的建議是，即使在高端，帳單環比增長也將約為 13%。在過去 2 年中，您的帳單環比增長了約 28%。顯然，指導要少一點。我只是想知道你是否可以給我們一些關於這個問題的看法或想法。特別是，這是否反映了——您認為客戶擔心無法獲得產品的帳單上是否有任何類型的拉動？

And/or is it reflecting some of the concerns you previously mentioned about are we going to have enough of the supply chain availability or product availability, I should say? And therefore, we might need to temp down a little bit in Q4? And then I had a follow-up, if I could, because Peter told me I'm allowed to ask a follow-up.

和/或我應該說，它是否反映了您之前提到的一些擔憂，即我們是否將擁有足夠的供應鏈可用性或產品可用性？因此，我們可能需要在第四季稍微降溫？然後，如果可以的話，我會進行跟進，因為彼得告訴我，我可以詢問後續情況。

I did.

我做到了。

Yes. Look, I think what you're seeing there is supply chain. And as I said earlier in the conversation that I think they -- we've been appropriately conservative, I hope, in terms of how we guided to it. To unpack that just a little bit, we do with our sales team and we manage things on a bookings basis with them. And then we put that up against what we have, the ability to ship. If I look at just the bookings number -- and we had a long internal conversation about whether or not that's a metric that we should provide at this time and decided not to. But if we look at just the bookings number, I would say that it's a very strong indicator that the business is extremely healthy, if you will.

是的。聽著，我想你看到的是供應鏈。正如我在談話中早些時候所說的那樣，我認為我們在引導方式方面一直保持適當的保守。為了稍微解釋一下這個問題，我們與我們的銷售團隊合作，並與他們一起在預訂的基礎上進行管理。然後我們將其與我們擁有的運輸能力進行比較。如果我只看預訂數量，我們進行了長時間的內部對話，討論這是否是我們此時應該提供的指標，但決定不提供。但如果我們只看預訂數量，我會說這是一個非常強大的指標，表明業務非常健康，如果你願意的話。

In terms of customer buying behavior, there's always somebody getting in line early, if you will. Either they have longer-term deployment or what have you. That's not new. And maybe a little bit of it in the third quarter. No deals over $10 million. I think the largest deal was probably $7 million or $8 million or something like that in the quarter. We have seen in the fourth quarter things where customers are, I'd say, they're get-in-line orders.

就顧客購買行為而言，如果你願意的話，總會有人提早排隊。要么他們有長期部署，要么你有什麼。這並不新鮮。也許第三季會有一點。沒有超過 1000 萬美元的交易。我認為本季最大的一筆交易可能是 700 萬美元或 800 萬美元或類似的金額。我們在第四季度看到了客戶的情況，我想說的是，他們正在排隊訂購。

They've got deployments where our plans are deploying in 2022, and they want to make sure that -- they're trying to time when they're actually going to need the product and when the product is going to be available. So I have seen early in the quarter a few companies exhibiting that behavior.

他們已經按照我們的計劃在 2022 年進行了部署，他們希望確保——他們正在嘗試確定何時真正需要該產品以及何時可用。因此，我在本季初看到一些公司表現出了這種行為。

Yes. We're hearing that a little bit from the channel about the lead times because they're getting out, customers are ordering early and more. But it sounds like what you're saying, essentially, you are concerned about maybe the billings number reflects some -- you might not be able to make all shipment demand, and so that's reflected in the quarter, if -- I hope I'm not putting words in your mouth.

是的。我們從通路中聽到一些關於交貨時間的消息，因為他們正在退出，客戶提前訂購，而且訂購時間更多。但這聽起來就像你所說的，本質上，你擔心的可能是賬單數字反映了一些——你可能無法滿足所有的發貨需求，所以這反映在本季度，如果——我希望我'我不會把話放進你嘴裡。

No, absolutely. Yes, that would be -- I think it's very prudent of me to say, with the supply chain environment that we're in, I'm not just going to take the -- I can't just take the absolute booking number that we're going to ship. I think there's a fair amount of internal work around that, if you will.

不，絕對是。是的，我認為我可以非常謹慎地說，在我們所處的供應鏈環境中，我不會僅僅採用 - 我不能只採用絕對預訂號碼我們要發貨了。如果你願意的話，我認為圍繞這個問題有相當多的內部工作。

Now, on the other side, it does give us more predictability as we come into 2022 if this behavior continues than we've had in the past. Backlog or bookings has not been something that Fortinet as a company has really had reason or cause to talk about. And I don't know that as of today that we do, but as we get further into the fourth quarter and then moving into 2022, that may be something that because of the predictability that it helps with, we may be talking about that next year.

現在，另一方面，如果這種行為比過去繼續下去，那麼當我們進入 2022 年時，它確實會為我們帶來更多的可預測性。 Fortinet 作為一家公司，並沒有真正有理由或理由談論積壓或預訂問題。我不知道截至今天我們是否這樣做，但隨著我們進一步進入第四季度，然後進入 2022 年，這可能是因為它有助於可預測性，我們接下來可能會討論這個問題。

Okay. And my Peter-sanctioned second question then is, if you just talk a little bit about the non-FortiGate mix, and I know you mentioned that in one of the previous questions, but how do you see that changing over the course of the next couple of quarters, if at all? And I'm not really talking about a supply chain constraint, but just on demand-related pools as customers may look as they're deploying that incremental 6,000 customers and greater penetration on your existing -- do you see the software side moving up, if you will, in the non-FortiGate component? And then I will cede the floor.

好的。我的彼得批准的第二個問題是，如果你只是談論一下非 FortiGate 組合，我知道你在前面的一個問題中提到過這一點，但你如何看待在下一個問題中這種變化幾個季度，如果有的話？我並不是真正談論供應鏈限制，而是在談論與需求相關的池，因為客戶可能會看到，他們正在部署增量6,000 個客戶以及對現有產品的更大滲透- 您是否看到軟體方面正在上升，如果願意的話，在非 FortiGate 組件中？然後我就讓出發言權。

That's what we call the [Fabric on mesh], we see pretty strong demand from the customers. And the -- both increase the -- among the purchase also the customer adopt the new multiple product, Fabric on mesh solution. So that was coming, if you will, growth on the non-FortiGate. And also, we started working with the service provider carrier on the SASE, some other solution, eventually will also benefit a more broad customer base.

這就是我們所說的[網狀織物]，我們看到客戶的需求相當強勁。而且，客戶在採購中也採用了新的多種產品—Fabric on mesh 解決方案。如果你願意的話，非 FortiGate 的成長即將到來。而且，我們開始與服務供應商營運商就 SASE 以及其他一些解決方案進行合作，最終也將使更廣泛的客戶群受益。

Congratulations for the incredible results.

祝賀取得了令人難以置信的結果。

And there are no further questions at this time. That concludes the Q&A session. I will now turn the call back to Peter Salkowski for closing remarks.

目前沒有其他問題。問答環節到此結束。現在，我將把電話轉回給彼得·薩爾科夫斯基，讓其致閉幕詞。

Thank you, Eli. I'd like to thank everyone for joining the call today. I know you have a lot of calls this evening. Really appreciate your time.

謝謝你，伊萊。我要感謝大家今天加入電話會議。我知道今晚你接到很多電話。非常感謝您的寶貴時間。

Fortinet will be attending the following investor conferences during the fourth quarter with the Wells Fargo conference on November 30, the NASDAQ conference on December 1 and 2, the UBS conference on December 7 and the Barclays conference on December 8.

Fortinet 將在第四季度參加以下投資者會議：11 月30 日的富國銀行會議、12 月1 日至2 日的納斯達克會議、12 月7 日的瑞銀會議和12 月8 日的巴克萊會議。

The events with presentations will be webcast, and links to the webcast will be available on the Investor Relations website of Fortinet at investor.com (sic) [investor.fortinet.com]. If you have any follow-up questions, please feel free to reach out. Have a good day. Thank you very much for your time. Have a good day.

包含示範的活動將進行網路廣播，網路廣播的連結將在 Fortinet 投資者關係網站 Investor.com (原文如此) [investor.fortinet.com] 上提供。如果您有任何後續問題，請隨時與我們聯繫。祝你有美好的一天。非常感謝您抽出時間。祝你有美好的一天。

And this concludes today's conference call. Thank you all for participating. You may now disconnect.

今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連線。