Fortinet Inc (FTNT) 2020 Q3 法說會逐字稿

Welcome to the third quarter earnings call. I would now like to hand the call over to Peter Salkowski. Please go ahead.

歡迎來到第三季度財報電話會議。我現在想把電話轉給 Peter Salkowski。請繼續。

Thank you, Michelle. Good afternoon, everyone. This is Peter Salkowski, Vice President of Investor Relations at Fortinet. I'm pleased to welcome everyone to our call to discuss Fortinet's financial results for the third quarter of 2020.

謝謝你，米歇爾。大家下午好。我是 Peter Salkowski，Fortinet 投資者關係副總裁。我很高興歡迎大家參加我們的電話會議，討論 Fortinet 2020 年第三季度的財務業績。

Speakers on today's call are Ken Xie, Fortinet's Founder, Chairman and CEO; and Keith Jensen, our Chief Financial Officer. This is a live call that will be available for replay via webcast on our Investor Relations website.

今天電話會議的發言人是 Fortinet 的創始人、董事長兼首席執行官 Ken Xie；以及我們的首席財務官 Keith Jensen。這是一個現場通話，可以通過我們的投資者關係網站上的網絡直播進行重播。

Ken will begin our call by providing a high-level perspective on our business. Keith will then follow that with a review of our financial and operating results for the third quarter before providing guidance for the fourth quarter of 2020. We'll then open the call for questions. (Operator Instructions)

Ken 將通過提供對我們業務的高層次視角來開始我們的電話會議。然後，Keith 將審查我們第三季度的財務和運營結果，然後再提供 2020 年第四季度的指導意見。然後我們將公開提問。 （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 those forward-looking statements are subject to risks and uncertainties which could cause our 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 date of this presentation, and we undertake no obligation and specifically disclaim any obligation to update forward-looking statements.

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

Also, all references to financial metrics that we make on today's call are non-GAAP, unless stated otherwise. Our GAAP results and GAAP-to-non-GAAP reconciliations is located in our earnings press release and in the presentation that accompanies today's remarks, both of which are on our 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所有財務指標都是非公認會計原則。我們的 GAAP 結果和 GAAP 與非 GAAP 對賬位於我們的收益新聞稿和今天的評論附帶的演示文稿中，兩者都在我們的投資者關係網站上。最後，除非另有說明，否則所有提及的增長都是按年計算的。

I'll now turn the call over to Ken.

我現在將電話轉給 Ken。

Thanks, Peter, and thank you to everyone for joining today's call to review our third quarter 2020 results. We are very pleased with our third quarter performance.

謝謝彼得，感謝大家參加今天的電話會議，回顧我們 2020 年第三季度的業績。我們對第三季度的表現非常滿意。

Billing increased 20% to $750 million. Our SD-WAN solution more than doubled year-over-year and represent over 13% of total billings. Total revenue increased 19% to $651 million, with product revenue growth accelerating quarter-over-quarter to 14%, and service revenue up 22%.

賬單增長 20% 至 7.5 億美元。我們的 SD-WAN 解決方案同比增長了一倍以上，佔總賬單的 13% 以上。總收入增長 19% 至 6.51 億美元，產品收入環比增長 14%，服務收入增長 22%。

Recently, Fortinet was the only vendor recognized as a leader in both the latest Gartner Magic Quadrant for WAN Edge infrastructure and Gartner Magic Quadrant for network firewalls. Fortinet's FortiGate SD-WAN is the only organically built solution that provides networking and security, integrated into a single appliance that delivers leading protection, performance and cost saving for the largest customer base and fastest revenue growth among major players in the space.

最近，Fortinet 是唯一一家在最新的 Gartner 廣域網邊緣基礎設施魔力像限和 Gartner 網絡防火牆魔力像限中都被公認為領導者的供應商。 Fortinet 的 FortiGate SD-WAN 是唯一提供網絡和安全性的有機構建解決方案，集成到單個設備中，為最大的客戶群提供領先的保護、性能和成本節約，並在該領域的主要參與者中實現最快的收入增長。

The COVID-19 pandemic has accelerated digital transformation. And organization have to deal with new challenges to secure the whole infrastructure in the Zero Trust environment, whether it's a WAN, cloud, data center, network, branch or home edge. Fortinet is helping customers solve these issues through security-driven networking and our platform approach. Fortinet's Security Fabric, which combine networking and security across the entire connect environment provide protection, whether on-premise, virtual or cloud-based environment.

COVID-19 大流行加速了數字化轉型。組織必須應對新的挑戰，以保護零信任環境中的整個基礎設施，無論是 WAN、雲、數據中心、網絡、分支機構還是家庭邊緣。 Fortinet 正在通過安全驅動的網絡和我們的平台方法幫助客戶解決這些問題。 Fortinet 的 Security Fabric 結合了整個連接環境中的網絡和安全性，可提供保護，無論是本地、虛擬還是基於雲的環境。

Our recent Fortinet survey of cybersecurity leaders showed almost 70% of organizations have concerns about insider threat. Today, Fortinet announced a FortiGate 2600F for enterprise-level internal segmentation and hyperscale data center in multi-cloud environment. Powered by the new NP7 security processor, the FortiGate 2600F offer the highest performance with a secure computing, up to 10x higher than our competition.

我們最近對網絡安全領導者進行的 Fortinet 調查顯示，近 70% 的組織對內部威脅表示擔憂。今天，Fortinet 宣布推出 FortiGate 2600F，用於多雲環境中的企業級內部分段和超大規模數據中心。由新的 NP7 安全處理器提供支持，FortiGate 2600F 提供最高性能和安全計算，比我們的競爭對手高出 10 倍。

Gartner has stated that over the next few years, edge and immersive technologies will begin to replace cloud and mobile. The release of several new appliance called by our latest FortiASIC SPU together with cloud and software-based virtual machine could replace security anywhere, will enable Fortinet to capitalize on this investment and will fuel our growth going forward.

Gartner 表示，在未來幾年內，邊緣和沈浸式技術將開始取代云和移動。由我們最新的 FortiASIC SPU 調用的幾個新設備的發布以及基於雲和基於軟件的虛擬機可以取代任何地方的安全性，將使 Fortinet 能夠利用這項投資並將推動我們的未來發展。

Before turning the call over to Keith, I would like to thank our employees, customers, partners worldwide for their continued support to manage our response to the ongoing COVID-19 pandemic.

在將電話轉給 Keith 之前，我要感謝我們的員工、客戶和全球合作夥伴一直以來的支持，以管理我們對持續的 COVID-19 大流行的反應。

Keith?

基思？

Thank you, Ken. Let's start the third quarter review of revenue. Total revenue of $651 million was up 19%. Product revenue of $224 million was up 14%. Benefiting from strong demand for secure SD-WAN, high-end FortiGate and cloud solutions. Service revenue increased 22% to $427 million. FortiGuard service revenue increased 22% to $235 million. FortiCare service and other revenue increased 21% to $192 million. The revenue mix shift from 8x5 to 24x7 support was 11 points, with 24x7 now representing over 65% of the mix

謝謝你，肯。讓我們開始第三季度的收入回顧。總收入為 6.51 億美元，增長 19%。產品收入為 2.24 億美元，增長 14%。受益於對安全 SD-WAN、高端 FortiGate 和雲解決方案的強勁需求。服務收入增長 22% 至 4.27 億美元。 FortiGuard 服務收入增長 22% 至 2.35 億美元。 FortiCare 服務和其他收入增長 21% 至 1.92 億美元。從 8x5 到 24x7 支持的收入組合轉變為 11 個點，現在 24x7 佔組合的 65% 以上

Moving to the mix of FortiGate and non-FortiGate revenue. FortiGate product and service revenue increased 16%. Non-FortiGate products and service revenue grew 27% driven by growth in cloud and fabric solutions. Given the continuing strong growth of our non-FortiGate or fabric platform, it's worth noting the absolute size of this business.

轉向 FortiGate 和非 FortiGate 收入的組合。 FortiGate 產品和服務收入增長了 16%。受雲和結構解決方案增長的推動，非 FortiGate 產品和服務收入增長了 27%。鑑於我們的非 FortiGate 或結構平台持續強勁增長，值得注意該業務的絕對規模。

For example, during the trailing 12-month period ended September 30, 2020, non-FortiGate products and services totaled $668 million, an increase of 26.5% when compared to the previous 12-month period.

例如，在截至 2020 年 9 月 30 日的過去 12 個月期間，非 FortiGate 產品和服務總計 6.68 億美元，與前 12 個月相比增長 26.5%。

Revenues and solutions include the complete range of form factors and delivery methods, including physical and virtual appliances, cloud, SaaS and perpetual software as well as hosted and non-hosted solutions. Combined with our FortiGate business, we offer our customers the needed range of security solutions and form factors, enabling them to provide security across their entire IT infrastructure whether it's at the WAN, cloud, data center, network branch or even home office edge. Our third quarter performance illustrate the benefits of our diversification across geographies, customer segments and industry verticals.

收入和解決方案包括完整的外形規格和交付方法，包括物理和虛擬設備、雲、SaaS 和永久軟件以及託管和非託管解決方案。結合我們的 FortiGate 業務，我們為客戶提供所需範圍的安全解決方案和形式因素，使他們能夠在整個 IT 基礎架構中提供安全性，無論是在 WAN、雲、數據中心、網絡分支機構還是家庭辦公室邊緣。我們第三季度的業績說明了我們在地域、客戶群和行業垂直領域多元化的好處。

Looking at revenue by Geos. As with the second quarter, our geographic revenue performance aligned with the economic impact of the pandemic and, with it, highlighted the geographic diversification of our business. As summarized on Slide 5, revenues in Asia Pacific increased 27.5% as many Asian countries and economies have been able to remain largely open. Revenue growth for the Americas of 13% continue to reflect the impact of the pandemic, especially in Latin America as well as a very difficult year-over-year comparison. Revenue growth for the Americas in the third quarter of 2019 was over 24%, the highest of all 3 geographies.

查看 Geos 的收入。與第二季度一樣，我們的地域收入表現與大流行的經濟影響保持一致，並由此凸顯了我們業務的地域多元化。正如幻燈片 5 總結的那樣，亞太地區的收入增長了 27.5%，因為許多亞洲國家和經濟體能夠在很大程度上保持開放。美洲 13% 的收入增長繼續反映了大流行病的影響，特別是在拉丁美洲，以及非常困難的同比比較。 2019 年第三季度美洲的收入增長超過 24%，是所有 3 個地區中最高的。

Let's shift to billings. Total billings increased 20% to $750 million. Looking at billings by solutions segment. FortiGate billings increased 16% and accounted for 72% of total billings. As shown on Slide 6, high-end FortiGuard posted strong billing growth in the quarter. Non-FortiGate billings increased 29% with strong demand for fabric and cloud solutions.

讓我們轉到比林斯。總賬單增長 20% 至 7.5 億美元。查看按解決方案細分的賬單。 FortiGate 的賬單增長了 16%，佔總賬單的 72%。如幻燈片 6 所示，高端 FortiGuard 在本季度實現了強勁的賬單增長。由於對結構和雲解決方案的強勁需求，非 FortiGate 的賬單增長了 29%。

As with revenue, our billings performance by geos aligned with the economic impact of the path of the pandemic. APAC billings outperformed all geos, followed by Europe and then the Americas, including Latin America.

與收入一樣，我們按地理劃分的賬單表現與大流行路徑的經濟影響一致。亞太地區的賬單表現優於所有地區，其次是歐洲，然後是美洲，包括拉丁美洲。

Now turning to billings by customer segments. As we experienced in the second quarter, we saw solid billing growth in the SMB and large enterprise segments. SMB posted strong growth across all geos, illustrating the strength of our channel programs, the solid execution by our channel employees and partners and the large diverse makeup of this multinational customer segment.

現在轉向按客戶群劃分的賬單。正如我們在第二季度所經歷的那樣，我們看到 SMB 和大型企業細分市場的賬單增長穩健。 SMB 在所有地區都實現了強勁增長，這說明了我們渠道計劃的實力、渠道員工和合作夥伴的紮實執行以及這一跨國客戶群的多元化構成。

Moving to worldwide billings by industry verticals. Our top 5 verticals continue to account for about 2/3 of total billings. The worldwide government sector topped all verticals at 20% of total billings and grew at over 40%. We experienced solid performance internationally and in the U.S. at the local levels.

按垂直行業轉移到全球賬單。我們排名前 5 位的垂直行業繼續佔總賬單的 2/3 左右。全球政府部門以 20% 的總收入在所有垂直領域中名列前茅，並以超過 40% 的速度增長。我們在國際和美國的地方層面都表現出色。

Service providers and MSSPs accounted for 16% of total billings. Financial services, with 14% of total billings, also had a very strong billings growth quarter at 27%. Education with 9% of total billings, rebounded in the third quarter as schools prepare for secure e-learning in the fall semester.

服務提供商和 MSSP 佔總賬單的 16%。佔總賬單 14% 的金融服務也有非常強勁的賬單增長季度，達到 27%。隨著學校為秋季學期的安全電子學習做準備，教育佔總費用的 9% 在第三季度出現反彈。

Now looking at deals by dollar size. We had 48 deals over $1 million in the third quarter compared to 53 deals in the third quarter of 2019 and 30 deals in the third quarter of 2018. Secure SD-WAN accounted for 7 of the deals over $1 million, and while down from 8 deals over $1 million a year ago, total SD-WAN billings more than doubled and, as Ken mentioned, accounted for approximately 13% of total billings.

現在按美元大小看交易。我們在第三季度有 48 筆超過 100 萬美元的交易，而 2019 年第三季度有 53 筆交易，2018 年第三季度有 30 筆交易。安全 SD-WAN 佔 7 筆超過 100 萬美元的交易，而低於 8 筆一年前交易超過 100 萬美元，SD-WAN 總賬單翻了一番以上，正如 Ken 提到的那樣，約佔總賬單的 13%。

Moving back to the income statement. As shown on Slide 4, gross margin improved 130 basis points to 79.5%. Product gross margin improved 220 basis points to 62.9%. Product gross margin continued to benefit from the lower direct cost of our newer generation of FortiGate products, offset slightly by higher indirect costs.

回到損益表。如幻燈片 4 所示，毛利率提高 130 個基點至 79.5%。產品毛利率提高 220 個基點至 62.9%。產品毛利率繼續受益於我們新一代 FortiGate 產品的較低直接成本，但被較高的間接成本略微抵消。

It's worth noting that for 5 quarters in a row, including 2 pandemic quarters, product gross margin has been over 60%. Operating margin for the third quarter increased 90 basis points to 27.4%, benefiting from the improvement in gross margin and continued lower travel and marketing program expenses related to the shift towards virtual events, offset by the addition of new team members.

值得注意的是，連續5個季度，包括2個疫情季度，產品毛利率都在60%以上。第三季度的營業利潤率增長了 90 個基點，達到 27.4%，這得益於毛利率的提高以及與向虛擬活動的轉變相關的差旅和營銷計劃費用的持續下降，這些費用被新團隊成員的增加所抵消。

Total head count ended the quarter at 8,075, a 23% increase driven by the increased investments we've made to grow our business. Given the strong operating income performance, net income for the third quarter was $145 million. And earnings per diluted share increased $0.21 to $0.88 per diluted share.

本季度末總人數為 8,075 人，增長了 23%，這得益於我們為發展業務而增加的投資。鑑於強勁的營業收入表現，第三季度的淨收入為 1.45 億美元。每股攤薄收益增加 0.21 美元至 0.88 美元。

On a GAAP basis, we reported net income of $123 million or $0.75 per diluted share versus GAAP income of $80 million or $0.46 per diluted share a year ago. The strong performance this quarter is the result of the diversification of our business and the strategic long-term investments we've made to expand our global sales force, to invest in our channel partners and to expand our product offerings and provide a truly integrated security platform, enabling automation.

根據 GAAP，我們報告的淨收入為 1.23 億美元或每股攤薄收益 0.75 美元，而一年前的 GAAP 收入為 8000 萬美元或每股攤薄收益 0.46 美元。本季度的強勁表現是我們業務多元化的結果，也是我們為擴大全球銷售隊伍、投資於我們的渠道合作夥伴以及擴大我們的產品供應和提供真正集成的安全性而進行的戰略性長期投資的結果。平台，實現自動化。

Moving to the statement of cash flow summarized on Slide 7 and 8. Free cash flow came in at $186 million. As we commented previously, we are leveraging the strength of our balance sheet as a competitive advantage to support our partners and our customers as they experience the economic challenges of the pandemic. As a result, average days sales outstanding increased to 76 days, up 3 days sequentially and 13 days year-over-year in line with our expectations and reflecting our decision to provide geographically targeted extended payment plans.

轉到幻燈片 7 和 8 中總結的現金流量表。自由現金流量為 1.86 億美元。正如我們之前評論的那樣，我們正在利用我們資產負債表的實力作為競爭優勢，以支持我們的合作夥伴和客戶，因為他們正在經歷大流行病帶來的經濟挑戰。因此，平均未完成銷售天數增加至 76 天，連續增加 3 天，同比增加 13 天，符合我們的預期，並反映出我們決定提供針對地域的延期付款計劃。

We expect extended payment terms and higher inventory balances to be in effect as we move through at least the first half of 2021. Inventory turns decreased to 2.1x as we increased our on-hand inventory to mitigate supply chain risk. Capital expenditures for the third quarter were $35 million, including $26 million related to construction and other real estate activity. We estimate capital expenditures for the fourth quarter to between $40 million and $50 million. And for all of 2020 to between $130 million and $140 million.

我們預計，至少在 2021 年上半年，延長的付款期限和更高的庫存餘額將生效。隨著我們增加現有庫存以降低供應鏈風險，庫存周轉率降至 2.1 倍。第三季度的資本支出為 3500 萬美元，其中包括與建築和其他房地產活動相關的 2600 萬美元。我們估計第四季度的資本支出在 4000 萬至 5000 萬美元之間。 2020 年全年將達到 1.3 億至 1.4 億美元。

The lower full year CapEx range is due to utilities and other delays in the construction of our new campus building that are pushing more spending to 2021. Our move in date has moved to mid-2021.

較低的全年資本支出範圍是由於公用事業和我們新校園建築建設的其他延誤將更多支出推至 2021 年。我們的搬遷日期已移至 2021 年年中。

The average contract term for the third quarter was 26 months, flat year-over-year as well as sequentially. We expect full year cash taxes to be approximately $40 million, and our full year non-GAAP tax rate to be 21%.

第三季度的平均合同期限為 26 個月，同比和環比持平。我們預計全年現金稅約為 4000 萬美元，全年非 GAAP 稅率為 21%。

As we look forward, 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. For the fourth quarter, we expect billings in the range of $890 million to $920 million. Revenue in the range of $710 million to $730 million. Non-GAAP gross margin of 78% to 80%, and non-GAAP operating margin of 27% to 29%. Non-GAAP earnings per share of $0.95 to $0.97, which assumes a share count of between 157 million and 169 million.

展望未來，我想回顧一下幻燈片 9 中總結的第四季度展望，該展望受制於彼得在電話會議開始時提供的前瞻性信息的免責聲明。對於第四季度，我們預計賬單在 8.9 億美元至 9.2 億美元之間。收入在 7.1 億美元至 7.3 億美元之間。非美國通用會計準則毛利率為 78% 至 80%，非美國通用會計準則營業利潤率為 27% 至 29%。非 GAAP 每股收益為 0.95 美元至 0.97 美元，假設股票數量在 1.57 億至 1.69 億之間。

We expect a non-GAAP tax rate of 21%. Having said that, based on this fourth quarter guidance, we expect to achieve the rule of 40 for the full year. Making 2020 the third consecutive year in the ninth year of the last 11 years that we've been able to achieve this milestone.

我們預計非 GAAP 稅率為 21%。話雖如此，根據第四季度的指導，我們預計全年將達到 40 的規則。使 2020 年成為我們能夠實現這一里程碑的過去 11 年中的第九年連續第三年。

So along with Ken, I'd like to thank our partners, our customers and the Fortinet team for their support and hard work during these difficult and unique times.

因此，我要與 Ken 一起感謝我們的合作夥伴、我們的客戶和 Fortinet 團隊，感謝他們在這些困難和獨特的時期的支持和辛勤工作。

I'll now hand the call back over to Peter to begin the Q&A.

我現在將電話轉回給彼得開始問答。

Thank you. Operator, please open the call for Q&A.

謝謝。接線員，請打開電話進行問答。

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

（操作員說明）我們的第一個問題來自高盛的 Brian Essex。

And congrats on a nice quarter of results. I was wondering maybe if you could touch on what you're seeing in the spending environment? Particularly, it sounded like you had a really nice quarter of fabric growth and SD-WAN demand. But we also picked up physical firewall strength in the quarter. So maybe from the standpoint of what you're hearing from CIOs and what actually surprised you the most about the demand in the quarter?

並祝賀四分之一的結果。我想知道您是否可以談談您在消費環境中看到的情況？特別是，聽起來你們的結構增長和 SD-WAN 需求非常好。但我們在本季度也提升了物理防火牆強度。那麼，也許從您從首席信息官那裡聽到的觀點來看，以及本季度的需求最讓您感到驚訝的是什麼？

Yes. Brian, this is Ken. That's a good question. We also closely monitor watching the whole since change in the space. Basically, so that's where we're keeping promoting we call secure-driven networking. And also that's the concept we try to -- the thinking we have in the last 20 years. So you can see the -- definitely, the SD-WAN starting -- come to the networking side and probably in the next 3 years can grow over $20 billion. So that will be huge. We want to be the leader, #1 in the space, hope to target next year.

是的。布賴恩，這是肯。這是個好問題。我們也密切注視著整個自空間的變化。基本上，這就是我們一直在推廣的地方，我們稱之為安全驅動網絡。這也是我們嘗試的概念——我們在過去 20 年中的想法。所以你可以看到 - 當然，SD-WAN 開始 - 進入網絡方面，並且可能在未來 3 年內增長超過 200 億美元。所以那將是巨大的。我們想成為領導者，在該領域排名第一，希望明年成為目標。

And at the same time, the security is at Zero Trust concept starting to get very popular. So we need to make the whole infrastructure very secure. And also, the work for home also starting changing a lot. Like in early this year, once the pandemic just started and people -- enterprise just try to see how IT can supporting work from home. Now they're starting to try to see what's the long-term solution, whether some service-based SASE or some other way they call the home is the new branch, right? So that's where we can have the FortiGate installed in the home, can manage much broader device.

與此同時，零信任安全概念開始變得非常流行。所以我們需要讓整個基礎設施非常安全。而且，在家工作也開始發生很大變化。就像今年年初一樣，一旦大流行剛剛開始，人們 - 企業就會嘗試了解 IT 如何支持在家工作。現在他們開始嘗試看看什麼是長期解決方案，無論是基於服務的 SASE 還是他們稱之為家的其他方式都是新分支，對嗎？這就是我們可以在家里安裝 FortiGate 的地方，可以管理更廣泛的設備。

It can also like traffic shaping, like many different priority for different application, different users and, at the same time, can secure the whole infrastructure that sometimes they also call the SD branch solution. That's where managed Wi-Fi and manage other switch, other networking equipment altogether and also even the printer or the other home appliance.

它還可以像流量整形一樣，為不同的應用程序、不同的用戶提供許多不同的優先級，同時可以保護整個基礎設施，有時他們也稱之為 SD 分支解決方案。這就是管理 Wi-Fi 和管理其他交換機、其他網絡設備，甚至打印機或其他家用電器的地方。

So that's we're starting to see. Some -- even some big enterprise or some -- working with whatever service provider, some companies started offer the employee because this is what they call the new branch. They not only give them some kind of FortiGate planning, but also including the internet access, including like whether 4, 5 -- 3, 4, 5G or some other things altogether.

這就是我們開始看到的。一些 - 甚至是一些大企業或一些 - 與任何服務提供商合作，一些公司開始為員工提供服務，因為這就是他們所說的新分支機構。他們不僅為他們提供某種 FortiGate 規劃，還包括互聯網接入，包括 4、5、3、4、5G 或其他一些東西。

It's kind of a packaged solution and to help them secure it, they call them the whole infrastructure security. So that's why we see both kind of approach. So we're closely working with service provider whether to the service base, SASE or to this kind of a whole infrastructure security approach, but the new branch -- home's-the-new-branch approach.

這是一種打包解決方案，為了幫助他們保護它，他們稱其為整個基礎設施安全。這就是我們看到這兩種方法的原因。因此，我們正在與服務提供商密切合作，無論是服務基礎、SASE 還是這種整體基礎設施安全方法，但新分支——家庭的新分支方法。

So it's definitely changing the whole environment. So the security no longer just secure the gateway, the border and we expect the whole infrastructure. And at the same time, the network also need to be more application awareness, like based on application like SD-WAN or some other based on the content, like there are certain content and provider also starting to add in the security space. So that's what keep us saying the secure-driven network is starting to kind of ramp up quickly.

所以它肯定會改變整個環境。因此，安全性不再只是保護網關、邊界，我們期望整個基礎設施。同時，網絡還需要更多的應用程序感知，比如基於 SD-WAN 等應用程序或其他一些基於內容的應用程序，比如某些內容和提供商也開始添加到安全空間中。所以這就是讓我們說安全驅動的網絡開始快速增長的原因。

Got it. That's super-helpful. And maybe just a follow-up on that SASE comment. Any -- and I know I'm going to mispronounce this, but any initial traction with OPAQ or OPAQ through MSSP channel and how much progress have you made with that relationship so far?

知道了。這非常有幫助。也許只是對該 SASE 評論的跟進。任何 - 我知道我會誤讀這個，但是通過 MSSP 渠道對 OPAQ 或 OPAQ 的任何初步牽引力以及到目前為止你在這種關係中取得了多少進展？

Yes. We acquired OPAC last quarter, and we're working together to make it the whole solution for the SASe. Also, we work closely -- working with a lot of service provider because we do keep it same for a few years. The service provider has the best position to offer a lot of service. So we help them. And also, FortiGate is one of the best platform they can build whether within their POP or even extend into the branch or extend to -- inside the company. So it's a good change in the space.

是的。我們上個季度收購了 OPAC，我們正在共同努力使其成為 SASe 的整體解決方案。此外，我們密切合作 - 與許多服務提供商合作，因為我們確實在幾年內保持不變。服務提供商處於提供大量服務的最佳位置。所以我們幫助他們。而且，FortiGate 是他們可以構建的最佳平台之一，無論是在 POP 內，還是擴展到分支機構或擴展到公司內部。所以這是一個很好的空間變化。

Next question comes from Fatima Boolani from UBS.

下一個問題來自瑞銀的 Fatima Boolani。

Keith, I have 2 for you. Just looking at your outlook and your billings guidance, I wanted to unpack that a little bit and get your sense of where you are being a little bit more cautious relative to the performance quarter and how we should think about some of the puts and takes into the guidance that implies a deceleration from the third quarter performance you just put up? And I have a follow-up as well.

基思，我有 2 個給你。看看你的前景和你的賬單指導，我想稍微解釋一下，讓你了解相對於業績季度你在哪些方面更加謹慎，以及我們應該如何考慮一些看跌期權和收益暗示您剛剛提出的第三季度業績放緩的指引？我也有後續行動。

Sure. Look, I think it's shown -- 2020 has shown to be a very interesting year for setting guidance. Q1 was very, very strong. Q2 was challenging. Q3 is a nice bounce back. It's really a function of watching media reports almost on a daily basis in terms of what's happening with the pandemic whether -- what we see happening in the U.S. We can also layer into that, the U.S. election, but also what we're seeing in Europe. And I think in the current environment, I think the guidance does a pretty good job of trying to reflect our current understanding of the pandemic.

當然。看，我認為這表明——2020 年對於製定指導方針來說是非常有趣的一年。 Q1 非常非常強勁。第二季度充滿挑戰。 Q3 是一個很好的反彈。就大流行病的情況而言，這實際上是幾乎每天都在觀看媒體報導的功能——我們在美國看到的情況我們也可以深入了解美國大選，以及我們在美國看到的情況歐洲。而且我認為在當前環境下，我認為指南在試圖反映我們當前對大流行的理解方面做得很好。

Fair enough. And just a bigger picture question for you. As I think about the complexion of your 2021 margin profile, if I look at 2020, you're head and shoulders above the sort 25% operating margin watermark that you've spoken to historically.

很公平。對你來說只是一個更大的問題。當我考慮您 2021 年利潤率狀況的情況時，如果我看一下 2020 年，您將遠遠高於您在歷史上談到的 25% 的營業利潤率水線。

So I'm wondering as we think maybe longer term over the next couple of quarters, what are some of the structural versus temporal impacts on the margin trajectory from here, considering the pandemic trade-off and some of the acceleration you've undertaken on the sales hiring front? I would love to parse through that out with you. That would be really helpful.

因此，我想知道，正如我們認為可能在未來幾個季度的更長期時間裡，考慮到大流行病的權衡和您在銷售招聘方面？我很想和你一起分析一下。那真的很有幫助。

Yes. I think -- to kind of start top-down on that, I think the product gross margin and probably why we made reference to it in the call being over 60% for, I think, 5 quarters in a row. There were some periods of time there, it was probably in the higher 50s.

是的。我認為 - 從自上而下開始，我認為產品毛利率以及我們在電話會議中提到它的原因可能連續 5 個季度超過 60%。那裡有一些時期，可能是在 50 年代後期。

we like very much in terms of the structure that we're seeing in terms of our pricing and our cost structure and gross margin. And even as we continue to introduce new products, hopefully, we'll be successful at that 60% gross margin number.

我們非常喜歡我們在定價、成本結構和毛利率方面看到的結構。即使我們繼續推出新產品，也希望我們能夠成功達到 60% 的毛利率。

And as you kind of move your way down to the income statement, I think it's really a sales and marketing conversation in terms of spending. Clearly, we're continuing to get the benefit of not having salespeople travel and not -- the financial benefits, excuse me, of having salespeople not travel as well as marketing programs being virtual. And to the extent that the world stays that way, we're going to continue to get that benefit.

當你有點向下移動到損益表時，我認為這實際上是關於支出的銷售和營銷對話。顯然，我們將繼續獲得不讓銷售人員出差的好處 - 經濟利益，對不起，讓銷售人員不出差以及營銷計劃是虛擬的。如果世界保持這種狀態，我們將繼續獲得這種好處。

Now obviously, and I think we've talked previously that we're very committed to use this as an opportunity to bring in more salespeople. We talked about our head count growth of 23%. Hopefully, that we timed this right such that when those newer salespeople are coming online, they're fully productive. It will be around the time that they're adding to the top line at the same time, travel and marketing programs revert to historical norms.

現在很明顯，我想我們之前已經談過，我們非常致力於利用這個機會來引進更多的銷售人員。我們談到了 23% 的員工人數增長。希望我們的時機是正確的，這樣當那些新的銷售人員上線時，他們就能充分發揮作用。大約在他們增加收入的同時，旅遊和營銷計劃將恢復到歷史常態。

Our next question comes from Shaul Eyal of Oppenheimer.

我們的下一個問題來自奧本海默的 Shaul Eyal。

Congrats on the solid performance and outlook. I had a question on the SD-WAN opportunity. And given the ongoing strength you're seeing. Have you started to see some displacement opportunities given potential disruption that one of your competitors, smaller competitors in the space could be seeing given a consolidating market?

祝賀穩健的表現和前景。我對 SD-WAN 機會有疑問。鑑於你所看到的持續力量。考慮到潛在的破壞，你是否開始看到一些替代機會，而你的競爭對手之一，在這個領域的較小競爭對手可能會看到一個整合的市場？

This is Ken. No. We still see very strong interest and no competitor comes close to what we have. So we see that it's more than double year-over-year. And also, we are the only one who has 2 Magic Quadrant, both on SD-WAN also the network firewall come for the same appliance. And at the same time, it's 13% of last quarter's billing, but we have a huge installation base. A lot of customers even enable that one. We are not quite even confident on that one. So we believe we are a much bigger user base about like -- we call secure SD-WAN solution.

這是肯。不，我們仍然看到非常強烈的興趣，沒有競爭對手能接近我們所擁有的。所以我們看到它同比增長了一倍多。而且，我們是唯一擁有 2 個魔力像限的公司，SD-WAN 和網絡防火牆都來自同一設備。同時，它佔上個季度賬單的 13%，但我們擁有龐大的安裝基礎。許多客戶甚至啟用了那個。我們對此甚至都不太有信心。所以我們相信我們有一個更大的用戶群——我們稱之為安全的 SD-WAN 解決方案。

And also going forward, I'd say the work from home also will be helping driving this, whether you treat home as a new branch or whatever, this kind of solution. So we feel we have a market position technology and also the only one build internal organically and also have ASIC to accelerate the performance on average about 10x faster than any other competitor. So that's where we see is a huge opportunity. And the market grow like 50% year-over-year, and we grew more than double year-over-year. It's -- we keep gaining market share.

而且展望未來，我想說在家工作也將有助於推動這一點，無論你把家當作一個新的分支機構還是其他什麼，這種解決方案。所以我們覺得我們擁有市場定位技術，也是唯一一個內部有機構建並且擁有 ASIC 來加速性能的技術，平均速度比任何其他競爭對手快 10 倍。所以這就是我們看到的巨大機會。市場同比增長 50%，我們的同比增長超過兩倍。這是 - 我們不斷獲得市場份額。

Yes. Shaul, it's Keith. I think Ken's spot on with that. I think if we look forward in terms of the opportunities, what Ken is referring to is, look, I think there's still the opportunity in front of us to to help the service providers unpack their existing relationship with their incumbents on the SD-WAN side, and that's something, I think, we're very focused on and as we start to see the SD-WAN is a critical component of SASE and the cloud on-ramp. So I think to Ken's point, that market is going to continue to expand for us.

是的。 Shaul，我是 Keith。我認為肯對此很在行。我認為如果我們展望未來的機會，Ken 指的是，看，我認為我們面前仍有機會幫助服務提供商在 SD-WAN 方面解開他們與現任者的現有關係，我認為這是我們非常關注的事情，並且當我們開始看到 SD-WAN 是 SASE 和雲入口的重要組成部分時。所以我認為肯的觀點是，這個市場將為我們繼續擴大。

Got it. Got it. No, that is super-helpful. And maybe a question on the Americas performance. Keith, when you isolate the mixed Latin American performance and strictly focusing on the northern part of the Americas, how would you characterize the performance slightly more in line with your internal expectations heading into the quarter?

知道了。知道了。不，那是超級有幫助的。也許是關於美洲表現的問題。基思，當您孤立拉丁美洲的混合表現並嚴格關注美洲北部時，您如何描述表現更符合進入本季度的內部預期？

Yes. I think the U.S. -- well, there's 3 components to the Americas, Latin America, which is a very difficult place currently. And we saw that in the numbers. We expect a difficult quarter of Latin America. And we've certainly got that. Canada, on the other hand, has actually done fairly well throughout this. It's just a different footprint in terms of the pandemic.

是的。我認為美國 - 美洲、拉丁美洲有 3 個組成部分，目前這是一個非常困難的地方。我們在數字中看到了這一點。我們預計拉丁美洲將有一個艱難的季度。我們當然知道了。另一方面，加拿大實際上在這方面做得相當好。就大流行而言，這只是一個不同的足跡。

To your specific question related to the U.S., I think the U.S. did much better in the third quarter than it did in the second quarter. But clearly, I would not say that we're at pre-pandemic levels for the U.S. There's still opportunity there for us.

關於你關於美國的具體問題，我認為美國在第三季度的表現比第二季度要好得多。但很明顯，我不會說我們處於美國大流行前的水平。我們仍然有機會。

Our next question comes from Brad Zelnick of Crédit Suisse.

我們的下一個問題來自 Crédit Suisse 的 Brad Zelnick。

And congrats on the acceleration of the business. It's great to see. My first question for you, Ken. I wanted to ask about the impact of 5G on your business. It seems we're approaching a tipping point in terms of broader 5G coverage. So my question is, how should we think about the benefits of your business and why you feel that Fortinet is competitively advantaged as we approach this tipping point?

並祝賀業務的加速發展。很高興看到。我的第一個問題，肯。我想問一下5G對你們業務的影響。就更廣泛的 5G 覆蓋範圍而言，我們似乎正在接近一個轉折點。所以我的問題是，當我們接近這個臨界點時，我們應該如何考慮您的業務的好處以及為什麼您認為 Fortinet 具有競爭優勢？

5G, so far, it is more connect to the device than connect to the people, like 3G, 4G in the past. And also, it depends on the vertical industry. And we're also leading a lot of our OT/IoT security. But also like when work for a home could be also a good back half for this like WAN access. But it's -- so we see quite a lot of successful case on international right now, that seems more a little bit ahead on some of the 5G deployment and also working closely with the carrier service provider.

5G，到目前為止，更多的是連接設備而不是連接人，就像過去的3G、4G一樣。而且，這取決於垂直行業。我們還領導了很多 OT/IoT 安全。但也像在家工作時也可以作為 WAN 訪問的一個很好的後半部分。但它是——所以我們現在在國際上看到了很多成功的案例，這似乎在一些 5G 部署方面領先了一點，並且還與運營商服務提供商密切合作。

Like I said in the last quarter earnings, it's kind of growing faster than we expected and probably still on a very small base. But we do believe next year could be material, the 5G contribute for our growth.

就像我在上個季度的收益中所說的那樣，它的增長速度比我們預期的要快，而且基數可能仍然很小。但我們確實相信明年可能會很重要，5G 將為我們的增長做出貢獻。

Great to hear. And for Keith, last quarter, you mentioned the discounting had picked up for the first time in a couple of quarters. How do you characterize discounting in Q3 at this point?

很高興聽到。對於基思，上個季度，你提到折扣在幾個季度內首次出現。您如何看待此時第三季度的折扣？

Flat. Consistent with what it was a year ago. Nothing to call out. So I guess the way to give that color, I think we felt a little more pressure in the second quarter. We do not feel that same pressure in the third quarter.

平坦的。與一年前的情況一致。沒什麼可叫的。所以我想給出那種顏色的方式，我認為我們在第二季度感受到了更多的壓力。我們在第三季度沒有感受到同樣的壓力。

Our next question comes from Saket Kalia of Barclays.

我們的下一個問題來自巴克萊銀行的 Saket Kalia。

Keith, maybe first for you, a housekeeping question. Can you just talk about some slight changes to the deferred revenue balance historically? I know there's a footnote in the earnings slide, but maybe you could just expand on what the adjustment is and how that impacted deferred and billings, just so that we're all on the same page?

基思，也許首先是你，一個家政問題。您能否談談歷史上遞延收入餘額的一些細微變化？我知道收益幻燈片中有一個腳註，但也許你可以詳細說明調整是什麼以及它如何影響遞延和賬單，這樣我們就可以達成一致了嗎？

Yes. We had a little housekeeping to go through with a subset of our FortiCare contracts. Historically, and this goes back many years, we probably should have been recognizing revenue a little bit sooner, starting the amortization period than we had been. So there's a little bit of a pickup on quarterly FortiCare service revenue. Its range is very small. It ranges from 0.1% to about 0.5% of revenue for any particular period.

是的。我們有一些內務處理要處理我們的 FortiCare 合同的子集。從歷史上看，這可以追溯到很多年前，我們可能應該更早地確認收入，開始攤銷期。因此，季度 FortiCare 服務收入略有回升。它的範圍很小。它的範圍從任何特定時期收入的 0.1% 到大約 0.5%。

When we file the 10-Q, there'll be a long footnote that shows every possible period and so forth. But that's all, just a little bit of housekeeping to pick up some revenue there.

當我們提交 10-Q 時，會有一個長腳註顯示每個可能的時期等等。但僅此而已，只需做一點家務就可以在那裡獲得一些收入。

Okay. Got it. So just to be clear, the billings that was reported in the quarter, the $750 million, that really -- it wouldn't have been impacted by sort of that change, right?

好的。知道了。所以要明確一點，本季度報告的賬單，即 7.5 億美元，真的 - 它不會受到這種變化的影響，對吧？

No, no, no.

不不不。

Okay. Got it. I understood. The follow-up for you, Ken, just on the product side, I guess as OPAQ becomes a bigger part of the offering, how do you think about the strength of the FortiGate line that maybe helps differentiate when you're offering a SASE solution? Does that make sense?

好的。知道了。我明白了。 Ken，關於產品方面的跟進，我想隨著 OPAQ 成為產品的重要組成部分，您如何看待 FortiGate 系列的優勢，這可能有助於在您提供 SASE 解決方案時脫穎而出？那有意義嗎？

Yes. I think FortiGate is a very important part of SASE because they are the best firewall or SD-WAN or the other things can be positioned within the pop or sometimes we can working with service provider to use the FortiGate to be part of their service, their solution there. And at the same time, we also do believe sometimes you also need to have a kind of a different approach like appliance can be in the home or can be in the branch or can be in the -- within the data center and the secure its traffic. So that's where we see FortiGate as a very good platform for keeping expanding, we call the -- whether the whole infrastructure security or secure-driven networking, including both inside SASE, POP, all kind of secure the other part of infrastructure.

是的。我認為 FortiGate 是 SASE 的一個非常重要的部分，因為它們是最好的防火牆或 SD-WAN，或者其他東西可以放在 pop 中，或者有時我們可以與服務提供商合作，使用 FortiGate 作為他們服務的一部分，他們的那裡的解決方案。同時，我們也確實相信，有時您還需要一種不同的方法，例如設備可以在家裡，可以在分支機構，也可以在數據中心內，並確保其安全交通。因此，這就是我們將 FortiGate 視為保持擴展的非常好的平台的地方，我們稱之為 - 無論是整個基礎設施安全還是安全驅動的網絡，包括 SASE、POP 內部，所有類型的安全基礎設施的另一部分。

(Operator Instructions) Our next question comes from Sterling Auty of JPMorgan.

（操作員說明）我們的下一個問題來自摩根大通的 Sterling Auty。

This is Matt on for Sterling. I wanted to ask a little bit more on SD-WAN. I was wondering if you guys could give additional color on what you make of the competitive landscape currently and what you've seen on pricing on that front?

這是斯特林的馬特。我想多問一些關於 SD-WAN 的問題。我想知道你們是否可以就您目前對競爭格局的看法以及您在這方面的定價中看到的內容提供更多的顏色？

Yes. We offer the most -- the best pricing performance and also more functional SD-WAN than any other competitors. And SD-WAN is the probably one of the fast-growing area, also one of the biggest market potential. So there's multiple research say would be reached over $20 billion in like 5 to 10 years, probably even bigger than the network security. And that's for us.

是的。我們提供最多 - 最好的定價性能以及比任何其他競爭對手都更實用的 SD-WAN。而SD-WAN可能是增長最快的領域之一，也是最大的市場潛力之一。因此，多項研究表明，在 5 到 10 年內，這一數字將超過 200 億美元，甚至可能比網絡安全還要大。那是給我們的。

Also, we want to combine these 2 together. So you see the same platform for both. So that's where compared to other competitor, which is only the software approach or sometimes even to weather the -- we call the universal CP or loading some other appliance. So we have this ASIC-dedicated hardware and plus like -- both in the low, mid to high-end range, can be within the POP or go to the home branch or go to -- within the data center inside the cloud.

此外，我們想將這兩個結合在一起。所以你看到兩者的平台相同。所以這就是與其他競爭對手相比的地方，這只是軟件方法，有時甚至可以抵禦 - 我們稱之為通用 CP 或加載其他一些設備。因此，我們擁有這種 ASIC 專用硬件，以及類似的東西——無論是在低端、中端還是高端範圍內，都可以在 POP 內或去家庭分支機構或去——在雲中的數據中心內。

So that's where we see it's a huge advantage compared to other competitors. And also from the Gartner Magic Quadrant from the growth we have, and we do believe we'll be the #1 leader in the space.

所以這就是我們看到它與其他競爭對手相比具有巨大優勢的地方。還有來自我們增長的 Gartner 魔力像限，我們相信我們將成為該領域的第一領導者。

Yes. Matt, I -- Ken's spot on with that. I think he's probably being a little bit humble because I think really what's going on is because of the ASIC strategy and what he's built, he's been able to increase the capacity in the firewall ritually each and every year. And it's a matter of how you use that capacity.

是的。馬特，我——肯對此表示贊同。我認為他可能有點謙虛，因為我認為真正發生的事情是因為 ASIC 策略和他所構建的，他每年都能夠按儀式增加防火牆的容量。這取決於你如何使用這種能力。

Different SD-WAN vendors have different pricing methods. But for Fortinet, it's embedded in the operating system and firewall. We do not charge for it separately. When you purchase a firewall, you receive the SD-WAN functionality. So I don't really think that -- and certainly, we did not see anything in terms of our discount as we talked about that suggested any sort of change.

不同的 SD-WAN 供應商有不同的定價方法。但對於 Fortinet 來說，它是嵌入在操作系統和防火牆中的。我們不單獨收費。購買防火牆時，您會獲得 SD-WAN 功能。所以我真的不這麼認為 - 當然，當我們談到折扣時，我們沒有看到任何暗示任何變化的東西。

Great. That's very helpful. And then just one quick housekeeping question. So going back to Saket's question on billings. If we just take the change in deferred on the balance sheet and the revenue, it seems like there's a disconnect to that and what you reported on billings. I was wondering if there was anything there to kind of unpack?

偉大的。這很有幫助。然後只是一個快速的內務管理問題。回到 Saket 關於賬單的問題。如果我們只考慮資產負債表和收入的遞延變化，那麼這似乎與您在賬單上報告的內容脫節。我想知道是否有什麼東西可以拆包？

No. I don't think so. I mean it's a pretty darn good definition. Billings is really defined as being revenue plus or minus the change in deferred revenue unless you have an acquisition or something like that. There should not be a difference there.

不，我不這麼認為。我的意思是這是一個非常好的定義。除非你有收購或類似的東西，否則賬單實際上被定義為收入加上或減去遞延收入的變化。那裡應該沒有區別。

Our next question comes from Andrew Nowinski of D.A. Davidson.

我們的下一個問題來自 D.A. 的 Andrew Nowinski。戴維森。

Congrats on the nice quarter. So you called out strength in high-end billings this quarter, but it's actually been very strong for the last 3 quarters, which is somewhat surprising given that we're in the middle of a pandemic. So can you just provide any more color on what's driving that consistently strong growth in high end?

恭喜這個漂亮的季度。所以你說本季度高端賬單表現強勁，但過去三個季度實際上非常強勁，考慮到我們正處於大流行之中，這有點令人驚訝。那麼，您能否提供更多關於推動高端市場持續強勁增長的因素？

There are some related to the new NP7 because -- as compared to NP6, they improve in the performance by almost 5x and also now can process like a 200-gig traffic per ship compared to the 40 gig, and also more function there. So that's where we're starting to roll out the new NP7 with -- NP7 product only go to the high and middle range.

有一些與新的 NP7 相關，因為 - 與 NP6 相比，它們的性能提高了近 5 倍，而且與 40 gig 相比，現在每艘船可以處理 200 gig 流量，並且還有更多功能。所以這就是我們開始推出新的 NP7 的地方——NP7 產品只適用於高端和中端。

And at the same time, we do see certain vertical also help drive some high end like the finance service, some government sector, which they mostly buy the high end, which has a less impact by the pandemic.

同時，我們確實看到某些垂直行業也有助於推動一些高端業務，例如金融服務、一些政府部門，他們主要購買高端產品，而這些產品受大流行的影響較小。

Maybe Keith has other point.

也許 Keith 有其他觀點。

No. I think I would point the 1100E -- 1100F, excuse me. Yes. The product that's been out here for about a year now, and it's done very, very well. It performed extremely well in the third quarter, and I think it's been ramping up as we expect typically with the high-end products.

不，我想我會指向 1100E -- 1100F，對不起。是的。該產品已經推出大約一年了，而且做得非常非常好。它在第三季度表現非常好，我認為它一直在像我們通常對高端產品所期望的那樣增長。

Yes. Also, SD-WAN in probably half or probably -- come from the high-end contribution.

是的。此外，SD-WAN 可能有一半或可能來自高端貢獻。

That makes sense. And then why do you think you saw fewer $1 million deals this quarter given the strength in the high-end billings that we've seen?

這就說得通了。那麼，鑑於我們所看到的高端賬單的強勁勢頭，您認為本季度 100 萬美元的交易為什麼會減少？

Yes. I think it's a very good question. We came into the quarter, looking at the pipeline and actually had a little bit of risk, I thought, because we had a larger mix of larger deals. And then when we got through the quarter, obviously, that -- the mix actually shifted on us a little bit.

是的。我認為這是一個很好的問題。我們進入這個季度，看著管道，實際上有一點風險，我想，因為我們有更大的交易組合。然後，當我們度過這個季度時，很明顯，這種組合實際上對我們產生了一點影響。

I mean we've all read reports that maybe, in general, that deals are getting a little bit smaller and what have you, and maybe that has something to do with it. But I really don't have good information in terms of why -- what ended up -- I mean what you get every quarter always differs from the pipeline. I don't know why is that particular item different this time.

我的意思是我們都讀過報告，一般來說，交易可能會變得有點小，你有什麼，也許這與它有關。但我真的沒有很好的信息來說明為什麼 - 最終結果 - 我的意思是你每個季度得到的總是與管道不同。我不知道這次為什麼那個特定項目不同。

But the deal over $500,000 has increased a lot, right? And also compared to 1 year ago. Q3, last year, we grew -- 1 year ago, we grew $1 million deal, quite a large number. So that's a very small comparison.

但是超過50萬美元的交易增加了很多，對吧？並且與一年前相比。第三季度，去年，我們增長了——一年前，我們增長了 100 萬美元的交易，這是一個相當大的數字。所以這是一個非常小的比較。

Yes. And Ken makes a very good point. In fact, if you look at deals of over -- SD-WAN deals over $250,000, those were up well over 200% year-over-year.

是的。肯提出了一個很好的觀點。事實上，如果你看一下超過 250,000 美元的 SD-WAN 交易，這些交易同比增長超過 200%。

Our next question comes from Hamza Fodderwala of Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Hamza Fodderwala。

This is Calvin Patel on for Hamza. Congrats on the quarter. I was wondering if you could first comment a bit more on invoice durations and how you see that trending in your more recent conversations as we go forward.

這是 Hamza 的 Calvin Patel。祝賀這個季度。我想知道您是否可以先就發票期限發表更多評論，以及隨著我們的推進，您如何看待最近的談話中的趨勢。

Invoice duration, was that -- I'm sorry, was that the question?

發票期限，是——對不起，是這個問題嗎？

Yes.

是的。

Yes. We've been right at that, despite what maybe some other competitors expected to see 1 year, 1.5 years ago. I think we've been very consistent throughout that time frame at about 25, 26 months.

是的。我們在這一點上一直是正確的，儘管其他一些競爭對手可能在 1 年、1.5 年前就預計會看到這種情況。我認為我們在大約 25、26 個月的整個時間範圍內一直非常一致。

All right. Perfect. And then just as a follow up, if you could comment a bit more on the competitive landscape in firewall this time, not just on the SD-WAN segment? And if you think that there will be some level of digestion to occur over the next year or not?

好的。完美的。然後作為後續行動，您是否可以對這次防火牆的競爭格局發表更多評論，而不僅僅是在 SD-WAN 領域？如果您認為明年是否會發生某種程度的消化？

We're keep gaining market share quickly in the firewall market. But also, I believe, going forward, we keeping saying this for a long, long time. Almost since beginning of -- we started the company 20 years ago. So the new networking will be more secure-driven. So instead the networking routing switch all about connectivity and speed, they need to make sure they can give with application. That's why SD-WAN is application based on the routing networking, and also they can deal with all the content and also user device level. That's all security handling. So that's where we see probably the traditional -- whether the traditional network security, which is on a security border or the traditional networking, probably also need doing some transition change.

我們在防火牆市場上不斷快速獲得市場份額。而且，我相信，展望未來，我們會在很長很長一段時間內一直這樣說。幾乎從一開始——我們在 20 年前創辦了這家公司。因此，新網絡將更加安全驅動。因此，網絡路由交換機只關注連接性和速度，他們需要確保可以提供應用程序。這就是為什麼 SD-WAN 是基於路由網絡的應用程序，並且它們可以處理所有內容和用戶設備級別。這就是所有的安全處理。因此，這就是我們可能看到的傳統——無論是處於安全邊界上的傳統網絡安全還是傳統網絡，都可能還需要進行一些過渡更改。

So the network security is still about $20 billion market, probably. And the traditional networking may be $70 billion, $80 billion market. But they probably will starting merging and transitioning change. We feel we're leading this changing. And there will be -- we're also in very good position, very good technology to really address the new secure-driven networking.

因此，網絡安全市場可能仍約為 200 億美元。而傳統網絡可能是700億美元、800億美元的市場。但他們可能會開始合併和過渡變化。我們覺得我們正在引領這種變化。並且將會 - 我們也處於非常有利的位置，非常好的技術可以真正解決新的安全驅動網絡。

Our next question comes from Rob Owens with Piper Sandler.

我們的下一個問題來自 Rob Owens 和 Piper Sandler。

This is Justin on for Rob. I just had a quick one on the federal government vertical strength in the quarter, just how it was trending relative to your expectations? And maybe if there is anything that we could impact on what drove the strong quarter?

這是 Justin for Rob。我剛剛快速了解了本季度聯邦政府的垂直實力，相對於您的預期，它的趨勢如何？也許我們可以影響推動強勁季度的因素？

Yes. It's not -- if you go back and look at the phrase very closely, we're not talking about U.S. Federal. We're talking about government, which for us is more international government as well as local governments. U.S. Fed is not a large part of our business.

是的。不是——如果你回過頭仔細看看這個短語，我們不是在談論美國聯邦。我們談論的是政府，對我們來說更多的是國際政府和地方政府。美聯儲不是我們業務的很大一部分。

Got you. And then also just a quick follow up, maybe just on your pipeline relative to where it's sitting now relative to last year and how you feel going in the fourth quarter, just given it's usually historically your biggest?

明白了然後也只是快速跟進，也許只是關於你的管道相對於它現在相對於去年的位置以及你在第四季度的感覺如何，只是考慮到它通常是你最大的歷史？

Yes. Well, pipeline is probably the biggest input to the guidance setting process, right? And there's all kinds of different ways of slicing and dicing it when we go through that, whether it's deal size, whether it's new logo versus an existing customer, whether it's a new deal versus a renewal deal or what have you. And I think that clearly, the pipeline supports the guidance.

是的。好吧，管道可能是指導設置過程中最大的輸入，對吧？當我們通過它時，有各種不同的切片和切塊方式，無論是交易規模，無論是新標識還是現有客戶，無論是新交易還是續約交易，還是你有什麼。我認為很明顯，管道支持指導。

Our next question comes from Patrick Colville of Deutsche Bank.

我們的下一個問題來自德意志銀行的帕特里克科爾維爾。

And congrats on a very impressive quarter. Can we just talk about SD-WAN, again? The result you guys put out was super-impressive, doubling of growth year-on-year. We have been hear in the media on checks around some firms kind of closing or rationalizing their branch offices. So clearly, that hasn't had any effect on your business. But can you just talk me through whether you've heard that amongst your customers? Or anything related to that point would be great.

並祝賀一個非常令人印象深刻的季度。我們能再談談 SD-WAN 嗎？你們推出的結果非常令人印象深刻，同比增長了一倍。我們已經在媒體上聽到一些關於關閉或合理化其分支機構的公司的檢查。很明顯，這對您的業務沒有任何影響。但是你能告訴我你是否在你的客戶中聽說過嗎？或者與那一點相關的任何事情都會很棒。

Yes. Because it's a huge benefit for forward and the price of some other customers, even including the home user consumer to us SD-WAN as it costs probably more than a 50% cost saving. And also they offer like how to manage multiple links among different kind of application and because the fixed connection, whether the MPLS or some other one has a difficult time to manage like different application based on different cloud or kind of a different dynamic environment.

是的。因為這對轉發和其他一些客戶的價格來說是一個巨大的好處，甚至包括我們 SD-WAN 的家庭用戶消費者，因為它可能節省超過 50% 的成本。他們還提供瞭如何管理不同類型應用程序之間的多個鏈接以及由於固定連接，無論是 MPLS 還是其他一些都很難管理基於不同雲或不同動態環境的不同應用程序。

So SD-WAN is the technology, they can manage the traffic based on different applications, even different content or some other security need as FortiGate's doing. It's a huge benefit for the user. That's driving the growth even during this pandemic. And also, we believe the long-term work from home can also quickly expand into a lot of consumer home user base.

所以 SD-WAN 是一項技術，他們可以根據不同的應用程序、甚至不同的內容或其他一些安全需求來管理流量，就像 FortiGate 所做的那樣。這對用戶來說是一個巨大的好處。即使在這種大流行期間，這也推動了增長。而且，我們相信長期在家工作也可以迅速擴大到很多消費者家庭用戶群。

And just try to improve in the service supporting level from that angle, we should be working with a lot of service provider or some big enterprise right now. But as a long term, we do believe they may change in the home networking space. It's just like whether you can software define or whatever application or content-based networking, which can offer a lot of additional benefit compared to the fixed network, kind of VPN access.

從這個角度嘗試提高服務支持水平，我們現在應該與很多服務提供商或一些大企業合作。但從長遠來看，我們確實相信它們可能會在家庭網絡領域發生變化。就像您是否可以軟件定義或任何應用程序或基於內容的網絡一樣，與固定網絡（一種 VPN 訪問）相比，它可以提供很多額外的好處。

So it gets a lot of customer interest. That's the reason the market grow like 50%. And I believe probably, I don't know how long, maybe 10 years or could be sort of longer, eventually, we do believe half of majority of the whole networking space, mainly this kind of SD-WAN approach based on application content without the traffic.

因此它引起了很多客戶的興趣。這就是市場增長 50% 的原因。而且我相信可能，我不知道多久，也許 10 年或可能更長，最終，我們相信整個網絡空間的一半，主要是這種基於應用程序內容的 SD-WAN 方法，沒有交通。

Great. That's very clear. I mean one of the points you made was around I guess, the devices at the branch office. I mean how often does the FortiGate SD-WAN solution sits alongside a traditional router? And how often is it a replacement of the traditional router?

偉大的。這很清楚。我的意思是，我猜你提出的其中一個觀點是關於分支機構的設備。我的意思是 FortiGate SD-WAN 解決方案多久與傳統路由器一起使用？它多久更換一次傳統路由器？

We only need 1 FortiGate replace our router out of security, or the Wi-Fi access controller, all these kinds of thing. It's a single device as a multifunction can replace like a 3, 4, 5 device including router, including the SD-WAN and including the security gateway, VPN and then also the Wi-Fi controller.

出於安全考慮，我們只需要 1 個 FortiGate 替換我們的路由器，或者 Wi-Fi 訪問控制器，所有這些東西。它是一個單一的設備，因為多功能可以取代像 3、4、5 設備，包括路由器、SD-WAN 和安全網關、VPN，然後還有 Wi-Fi 控制器。

And just a clarification. Is your point that in most cases, FortiGate is a replacement for those devices?

只是一個澄清。您的意思是，在大多數情況下，FortiGate 是這些設備的替代品嗎？

Yes. Replaces multiple device altogether and become only device to stay there.

是的。完全替換多個設備，成為唯一留在那裡的設備。

Our next question comes from Gray Powell of BTIG.

我們的下一個問題來自 BTIG 的 Gray Powell。

This is Stefan on for Gray. Piggybacking off the last question about the branch office. Have you seen any meaningful change in demand or mix of growth between the branch office and data center firewalls?

這是 Gray 的 Stefan。順便提一下關於分支機構的最後一個問題。您是否看到分支機構和數據中心防火牆之間的需求或增長組合有任何有意義的變化？

Yes. And that's where you can see sort of vertical, whether retail or whatever, we still see pretty strong growth. I think I believe Keith mentioned, maybe grow 40%, something like that.

是的。這就是你可以看到某種垂直的地方，無論是零售還是其他什麼，我們仍然看到相當強勁的增長。我想我相信基思提到過，可能增長 40%，類似的東西。

And also, the bigger potential is really the home is the new branch. So that's we're probably even bigger. But that's still in early stage because you still need help in the home user to manage some of that. I know service -- a lot of service providers right now are working with us, but at the same time, certain enterprise also try to do that.

而且，更大的潛力確實是家是新的分支機構。所以我們可能更大。但這仍處於早期階段，因為您仍然需要家庭用戶的幫助來管理其中的一些。我知道服務——現在很多服務提供商都在和我們合作，但與此同時，某些企業也在嘗試這樣做。

And as a follow-up, can you just talk about the linearity that you saw in the third quarter? There was some mention of deal delays in the U.S. Did those end up landing this quarter?

作為後續行動，你能談談你在第三季度看到的線性嗎？有人提到美國的交易延遲。這些交易是否最終在本季度落地？

I think you're talking about deals from Q2 that delayed. Do they come in the third quarter? The answer to that would be yes. We were pleased with what we saw. Well, we were pleased with what we saw in July in terms of the start that we got in the quarter.

我想你是在談論第二季度延遲的交易。他們會在第三季度到來嗎？答案是肯定的。我們對所看到的感到滿意。好吧，就本季度的開端而言，我們對 7 月份看到的情況感到滿意。

Our next question comes from Adam Tindle of Raymond James.

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

This is Alex Frankiewicz on for Adam. I just wanted to touch on SD-WAN one more time. I was wondering how important is your ASIC in bake-offs? How important is that performance boost to customers and on SD-WAN? Are you finding that it's becoming more of a driving factor in purchasing decisions or do other core capabilities and functionalities come first when a customer is making a decision?

這是 Alex Frankiewicz 代替 Adam。我只想再談一談 SD-WAN。我想知道您的 ASIC 在烘焙中有多重要？性能提升對客戶和 SD-WAN 有多重要？您是否發現它越來越成為購買決策的驅動因素，或者當客戶做出決定時其他核心能力和功能是否排在第一位？

Yes. The ASIC gives them like almost 10x more computing power. So that's where they can add like a security function, manage other like Wi-fi, some other device and, at the same time, can process traffic much quicker and can also like working with service providers, some other one, make sure that it's a total infrastructure security solution. So that's a huge advantage compared to the other software approach, which they have a limited CPU computing power to many whether security or SD-WAN or some other like the platform which can only handle single function compared we build this for the ASIC versus FortiOS can handle multifunction replace multiple device. So that's where we see as a huge advantage.

是的。 ASIC 為他們提供了幾乎 10 倍的計算能力。因此，他們可以在這裡添加安全功能，管理 Wi-fi 等其他設備，同時可以更快地處理流量，還可以與服務提供商合作，確保它是一個完整的基礎設施安全解決方案。因此，與其他軟件方法相比，這是一個巨大的優勢，對於許多人來說，無論是安全性還是 SD-WAN 或其他類似只能處理單一功能的平台，它們的 CPU 計算能力都有限，而我們為 ASIC 構建這個與 FortiOS 可以手柄多功能更換多個設備。所以這就是我們認為的巨大優勢。

Okay. And then just a follow-up. Looking ahead, more than just a few quarters, looking kind of a couple of years out, what kind of rule of 40 margin profile are you targeting? Are you focused solely on top line growth? Or could you expect -- could we expect to see some margin drop-through to the bottom line?

好的。然後只是跟進。展望未來，不僅僅是幾個季度，而是幾年後，你的目標是什麼樣的 40 利潤率規則？您是否只關注收入增長？或者你能期望——我們能期望看到一些利潤率下降到底線嗎？

Yes. I'm managing Ken very closely. He's many me very closely. We talked about our midterm range of being we want to have 25% operating margin, right? The strategy remains the same, balancing growth and profitability. We started the year be believing that we would tilt towards growth. As we went through the year. I think the pandemic, obviously, impacts the ability to grow in a couple of those quarters. But longer term, we still believe it's a balanced strategy towards balancing profitability and growth. We do believe there is an opportunity for growth, no doubt about it.

是的。我非常密切地管理肯。他和我很親近。我們談到了我們希望擁有 25% 營業利潤率的中期範圍，對嗎？戰略保持不變，平衡增長和盈利能力。今年年初，我們相信我們會傾向於增長。當我們度過這一年。我認為大流行顯然會影響其中幾個季度的增長能力。但從長遠來看，我們仍然認為這是平衡盈利能力和增長的平衡戰略。毫無疑問，我們確實相信存在增長機會。

Our next question comes from Fatima Boolani of UBS.

我們的下一個問題來自瑞銀的 Fatima Boolani。

I wanted to double back on the billings questions earlier on. The calculated billings based on your deferred revenue disclosure and disclosed reported revenue sum to $720 million in the quarter. And so I just wanted to appreciate that $30 million delta between what you have in the press release and in the reported numbers and calculating the billings off the balance sheet deferred revenue metrics?

我想早先回到比林斯問題上。根據您的遞延收入披露和披露的報告收入計算的賬單在本季度總計為 7.2 億美元。因此，我只是想感謝您在新聞稿中所擁有的和報告的數字之間的 3000 萬美元增量，以及計算資產負債表遞延收入指標的賬單？

Sure. When you have some housekeeping going on, Fatima, I'll jump into. This is Keith. You can have 1 or 3 things. You can have something that's so small, you just run it through in the current period. You can have something so large that you restate the prior period financial statements. You can have something in the middle, which is called a little R where you're going to recast financials.

當然。法蒂瑪，當你有一些家務時，我會加入。這是基思。你可以擁有 1 或 3 件東西。你可以有這麼小的東西，你只是在當前時期運行它。你可以有如此大的東西，以至於你重述了前期的財務報表。您可以在中間放置一些東西，稱為小 R，您將在其中重鑄財務。

That's what this is. That $30 million, when you see the 10-Q will come out of the opening, retained earnings back in December 31 of 2017, I believe it is. And just from that point forward, that the amortization starts being corrected.

就是這樣。那 3000 萬美元，當你看到 10-Q 將在 2017 年 12 月 31 日公佈時，留存收益，我相信是的。從那時起，攤銷開始得到糾正。

So internally, we have the information for you to actually track right now with the billings recalculation of that, you need to see Q2's number as recast, right? And that's not in the financials that you have, right?

所以在內部，我們有信息讓你現在可以通過重新計算賬單來實際跟踪，你需要看到 Q2 的數字是重鑄的，對吧？那不在您擁有的財務中，對嗎？

So $30 million came out of deferred revenue 3 years ago for something that's been going on for many, many years in this small transaction type. And it finally became large enough to correct, right? The number that we reported is based upon recast revenue and recast deferred revenue for billings.

因此，3 年前從遞延收入中產生了 3000 萬美元，因為這種小交易類型已經持續了很多年。它終於變得大到可以糾正，對吧？我們報告的數字基於重鑄收入和重鑄賬單的遞延收入。

Fair enough. So it's essentially a cumulative impact that we'll see the details for -- in the filings at least.

很公平。因此，這本質上是一種累積影響，我們至少會在文件中看到詳細信息。

Yes. That's why I gave the quick sound bite earlier that the quarterly impact to revenue typically runs for each of the quarters that we looked at between 0.1 points and about 0.5 point of revenue. It's a very small item in any 1 quarter.

是的。這就是為什麼我早些時候給出了快速的聲音，即我們看到的每個季度對收入的季度影響通常在 0.1 點到大約 0.5 點之間。這在任何一個季度都是非常小的項目。

Understood. That's very clear. And since I have you, Ken, a question for you, just around the SD-WAN discussion. From a product standpoint, I think there's a debate that's brewing between the thin branch architecture versus a thick branch deployment architecture within the SASE paradigm.

明白了。這很清楚。肯，既然我有你，就圍繞 SD-WAN 討論向你提問。從產品的角度來看，我認為在 SASE 範例中，瘦分支架構與厚分支部署架構之間正在醞釀一場爭論。

So I'm wondering how Fortinet is positioned in the former. So in the thin branch arena, if we think about the thick branch environment may be under potential duress in an increasingly uncertain macro environment. And that's it for me.

所以我想知道Fortinet在前者是如何定位的。所以在thin branch的舞台上，如果我們想想thick branch的環境可能在一個越來越不確定的宏觀環境下受到潛在的脅迫。對我來說就是這樣。

I think both branch can fit into different environment. The thin branch, sometimes it can stop certain mobile device issue. And the thick branch also can process the things locally in the real-time, a lot of application need that. So the FortiGate is more like a POP in local, whether in home or whatever, in the office or it's in the POP and SASE environment. Which you can see how they process the traffic within the SASE infrastructure. That's how our FortiGate is the key point to really get this processed.

我認為這兩個分支都可以適應不同的環境。瘦分支，有時它可以阻止某些移動設備問題。而且粗分支還可以實時處理本地的東西，很多應用程序都需要那個。所以 FortiGate 更像是本地的 POP，無論是在家裡還是其他什麼地方，在辦公室還是在 POP 和 SASE 環境中。您可以看到他們如何處理 SASE 基礎架構中的流量。這就是我們的 FortiGate 是真正處理這個問題的關鍵。

So that's also because our -- it's an vantage. We have huge computing power advantage over other approach, which give us a kind of much better performance, also lower cost. So that's where we had the flexibility converted to the appliance and on-premise or can be the virtual fit in the cloud or be part of the POP/SASE solution. So give us the flexibility and also can extend beyond some other competitor, other players can do, which -- because if they're only limited for the software approach, they can only sit in certain server within the POP in the data center.

所以這也是因為我們 - 這是一個優勢。與其他方法相比，我們擁有巨大的計算能力優勢，這給了我們一種更好的性能，同時也降低了成本。因此，這就是我們將靈活性轉換為設備和內部部署的地方，或者可以成為雲中的虛擬裝置，或者成為 POP/SASE 解決方案的一部分。所以給我們靈活性，也可以超越其他一些競爭對手，其他玩家可以做到，因為如果他們只限於軟件方法，他們只能坐在數據中心 POP 內的某些服務器上。

So we can extend beyond that one, go to the edge, go to the home and go to a lot of even other remote location. And that's also kind of using my quote from the Gartner is really -- so in the next few years, that's what comes from Gartner research. They say the edge and the immersive technology will replace in the cloud and mobile. So that's where you see, you need to have more computing everywhere in the real-time application environment.

所以我們可以超越那個，去邊緣，去家裡，去很多甚至其他偏遠的地方。這也是在某種程度上使用了我從 Gartner 的引述——所以在接下來的幾年裡，這就是 Gartner 研究的結果。他們說邊緣和沈浸式技術將在雲和移動中取而代之。所以這就是您看到的地方，您需要在實時應用程序環境中隨處進行更多計算。

So that's where we developed is ASIC and all these different technology to working with our different service providers or different kind of vertical space to address this issue, especially the infrastructure keep changing with 5G with all this like. That's where the ASICs have more advantage compared to the software-only approach.

所以這就是我們開發 ASIC 和所有這些不同技術的地方，與我們不同的服務提供商或不同類型的垂直空間合作來解決這個問題，特別是基礎設施隨著 5G 等而不斷變化。與純軟件方法相比，這就是 ASIC 更具優勢的地方。

Our next question comes from Patrick Colville of Deutsche Bank.

我們的下一個問題來自德意志銀行的帕特里克科爾維爾。

I'm copying Farima and hoping back in. Appreciate you letting me ask another question. How much did the Gartner's conclusion of Fortinet in the top-right corner of the SD-WAN MQ influence customer decision-making? This time a year ago, you guys were just outside of the top-right corner, and now you are in it. And so was that something that, in your opinion, might have changed the dialogue a bit and got Fortinet on more RFPs?

我正在復制 Farima 並希望回來。感謝你讓我問另一個問題。 Gartner 在 SD-WAN MQ 右上角對 Fortinet 的結論對客戶決策有多大影響？一年前的這個時候，你們就在右上角之外，現在你們在裡面了。那麼，在您看來，這是否會稍微改變對話並讓 Fortinet 獲得更多 RFP？

It helps on certain enterprise, but we also have a much broader sector and also the geo-diversity. It's probably now that -- depending too much on the Magic Quadrant. But it's -- and we also have a -- like because -- like the new Magic Quadrant only come on end of the quarter. It's come up in September 30, the last day of the quarter. So I don't think...

它對某些企業有幫助，但我們也有更廣泛的部門和地理多樣性。現在可能是——太依賴魔力像限了。但它 - 我們也有一個 - 就像因為 - 就像新的魔力像限只在本季度末出現。它出現在 9 月 30 日，即本季度的最後一天。所以我不認為...

We don't close that fast.

我們不會那麼快關門。

Yes. Sorry, I don't think we can't get that much business in the last day of the quarter in Q3. But it's helped probably more going forward.

是的。抱歉，我認為我們在第三季度的最後一天無法獲得那麼多業務。但它可能對未來有更多幫助。

We certainly expect it's going to be helpful and a tailwind for us going forward, yes.

是的，我們當然希望它會對我們的前進有所幫助和推動。

There are no further questions. I'd like to turn the call back over to Peter Salkowski for closing your remarks.

沒有其他問題了。我想將電話轉回給 Peter Salkowski 以結束您的發言。

Thank you, Michelle. I'd like to thank everyone for joining today's call. Fortinet will be attending conferences by the way -- attending conferences in the fourth quarter. The Crédit Suisse conference is on November 13 as well as December 2, Raymond James conference on December 7, the UBS conference on December 8 and a Barclays conference on December 9.

謝謝你，米歇爾。我要感謝大家參加今天的電話會議。順便說一句，Fortinet 將參加會議——參加第四季度的會議。瑞士信貸會議於 11 月 13 日和 12 月 2 日舉行，雷蒙德詹姆斯會議於 12 月 7 日舉行，瑞銀會議於 12 月 8 日舉行，巴克萊銀行會議於 12 月 9 日舉行。

Events with presentations will be webcast and the links will be available on our website, the Investor Relations website at Fortinet. If you have any follow-up questions, please feel free to contact me. Have a great day. Thank you very much. Take care.

帶有演示文稿的活動將進行網絡直播，鏈接將在我們的網站（Fortinet 的投資者關係網站）上提供。如果您有任何後續問題，請隨時與我聯繫。祝你有美好的一天。非常感謝。小心。

Ladies and gentlemen, this concludes the conference. You may now disconnect. Everyone, have a great day.

女士們，先生們，會議到此結束。您現在可以斷開連接。大家，祝你有美好的一天。