Fortinet Inc (FTNT) 2020 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the Fortinet Second Quarter Earnings Announcement Conference Call. (Operator Instructions)

女士們，先生們，感謝你們的支持，歡迎來到 Fortinet 第二季度收益公告電話會議。 （操作員說明）

Please be advised that today's conference is being recorded. (Operator Instructions)

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 speaker today, Peter Salkowski. Thank you, and please go ahead, sir.

我現在想把會議交給今天的發言人 Peter Salkowski。謝謝，請繼續，先生。

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

謝謝你，克里斯。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 年第二季度的財務業績。

Speakers on today's call are Ken Xie, Fortinet's Founder, Chairman and CEO; and Keith Jensen, our Chief Financial Officer.

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。

This is a live call that will be available for replay via webcast on our Investor Relations website. Ken will begin our call today by providing a high-level perspective on our business. Keith will then review our financial and operating results for the second quarter, provide some additional details regarding our second quarter performance and some insights into how July performed before providing guidance for the third quarter of 2020. We'll then open the call for questions. (Operator Instructions)

這是一個現場通話，可以通過我們的投資者關係網站上的網絡直播進行重播。 Ken 將在今天開始我們的電話會議，提供對我們業務的高層次視角。然後，Keith 將審查我們第二季度的財務和運營結果，提供有關我們第二季度業績的一些額外細節，以及對 7 月份業績的一些見解，然後再提供 2020 年第三季度的指導意見。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.

在我們開始之前，我想提醒大家，在今天的電話會議上，我們將做出前瞻性陳述，而這些前瞻性陳述受風險和不確定性的影響，可能導致實際結果與預期結果存在重大差異。請參閱我們向 SEC 提交的文件，尤其是我們最新的 10-K 表格和 10-Q 表格中的風險因素，以了解更多信息。

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.

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 otherwise stated. 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 posted on our Investor Relations website. Lastly, all references to growth are on a year-over-year basis unless otherwise noted.

此外，除非另有說明，否則我們在今天的電話會議上提及的所有財務指標都是非公認會計原則。我們的 GAAP 結果和 GAAP 與非 GAAP 調節表位於我們的收益新聞稿和今天的評論附帶的演示文稿中，兩者都發佈在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 will now turn the call over to Ken.

我現在將電話轉給肯。

Thanks, Peter, and thank you to everyone for joining today's call to review our second quarter 2020 results. We are very pleased with the solid second quarter performance. Revenue increased 18% to $616 million, with product revenue up 12% and service revenue up 22%. Secure SD-WAN climbed to 12% of total second quarter billings, the first time it's been over 10%.

謝謝彼得，感謝大家參加今天的電話會議，回顧我們 2020 年第二季度的業績。我們對第二季度的穩健表現感到非常滿意。收入增長 18% 至 6.16 億美元，其中產品收入增長 12%，服務收入增長 22%。安全 SD-WAN 攀升至第二季度總賬單的 12%，這是首次超過 10%。

In today's environment, enterprise are focused on effectively and cost efficiently deploying security across their physical and digital network. To meet these challenges, Fortinet was founded on the vision of bringing security and networking together in what we refer to as security-driven networking. Gartner supports a similar concept, which they call Secure Access Service Edge or SASE. Fortinet is an industry leader in building, integrating and automating security product and service into Fortinet Security Fabric, including FortiSASE. With the recent acquisition of OPAQ Networks, Fortinet has enhanced its FortiSASE solution with expanded cloud delivery, including firewall as a service and Zero-Trust Network Access. Additionally, FortiSASE was built to be partner-friendly empowering MSPs and big global customers to easily integrate or build FortiSASE platform into their own offerings.

在當今的環境中，企業專注於在其物理和數字網絡中有效且經濟高效地部署安全性。為了迎接這些挑戰，Fortinet 的願景是將安全和網絡結合在一起，我們稱之為安全驅動網絡。 Gartner 支持類似的概念，他們稱之為安全訪問服務邊緣或 SASE。 Fortinet 是將安全產品和服務構建、集成和自動化到 Fortinet Security Fabric（包括 FortiSASE）的行業領導者。通過最近收購 OPAQ Networks，Fortinet 通過擴展的雲交付增強了其 FortiSASE 解決方案，包括防火牆即服務和零信任網絡訪問。此外，FortiSASE 被構建為對合作夥伴友好，使 MSP 和全球大客戶能夠輕鬆地將 FortiSASE 平台集成或構建到他們自己的產品中。

A critical component of Fortinet Security Fabric platform is SD-WAN. We recently announced the new FortiGate 80F, which expand our SD-WAN portfolio for branch offices and work-from-home. The FortiGate 80F is powered by the latest FortiSPU SoC4 can deliver Security Compute Rating as much as 25x higher than industry average appliance using generic CPUs.

Fortinet Security Fabric 平台的一個關鍵組件是 SD-WAN。我們最近發布了新的 FortiGate 80F，它擴展了我們用於分支機構和在家工作的 SD-WAN 產品組合。 FortiGate 80F 由最新的 FortiSPU SoC4 提供支持，可提供比使用通用 CPU 的行業平均設備高出 25 倍的安全計算等級。

According to Gartner, worldwide SD-WAN equipment market data for the first quarter of 2020, Fortinet has the highest revenue growth and was the top 3 for market share. We attribute this growth to our ability to deliver secure, high-performance SD-WAN anywhere from home to the branch to the cloud.

根據Gartner，2020年第一季度全球SD-WAN設備市場數據，Fortinet收入增長最快，市場份額排名前三。我們將這種增長歸因於我們能夠在從家庭到分支機構再到雲端的任何地方提供安全、高性能的 SD-WAN。

Security investment remains a priority for enterprise and service providers, demonstrated by the strong growth of our high-end FortiGate appliance during the last quarter. Today, we released the FortiGate 4400F, the only firewall in the industry capable of securing hyperscale data center and 5G networks. Powered by the NP7 network processor, the 4400F delivers the highest performance with Security Compute Rating of up to 13x higher than our competition.

安全投資仍然是企業和服務提供商的優先事項，上一季度我們高端 FortiGate 設備的強勁增長證明了這一點。今天，我們發布了 FortiGate 4400F，這是業界唯一能夠保護超大規模數據中心和 5G 網絡的防火牆。 4400F 由 NP7 網絡處理器提供支持，可提供最高性能，安全計算等級比我們的競爭對手高出 13 倍。

The release of several new appliance powered by our latest FortiASIC SPU, together with cloud and software-based virtual machine to deploy security anywhere, we are able for Fortinet to capitalize on this investment and put us in a strong position going forward.

由我們最新的 FortiASIC SPU 提供支持的幾款新設備的發布，以及可在任何地方部署安全性的雲和基於軟件的虛擬機，我們能夠讓 Fortinet 充分利用這項投資，並使我們在未來處於有利地位。

Before turning the call over to Keith for a closer look at our second quarter performance and our guidance, I would like to take a moment to welcome the over 400 people who joined Fortinet during the second quarter as well as welcome OPAQ team who recently joined, and to thank our employees, customers and partners worldwide for their continued support to manage our response to the ongoing COVID-19 pandemic. Keith?

在將電話轉給 Keith 以詳細了解我們第二季度的業績和我們的指導之前，我想花點時間歡迎在第二季度加入 Fortinet 的 400 多人以及最近加入的 OPAQ 團隊，並感謝我們在全球的員工、客戶和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。基思？

Thank you, Ken. Let's start the second quarter review with revenue. Total revenue of $616 million was up 18%, driven by non-FortiGate products and service revenue growth of 25%. Non-FortiGate revenue growth benefited from very strong demand for virtual machines and our work-from-home solutions. FortiGate product and service revenue growth was 16% and benefited from record levels of billings for our secure SD-WAN solution.

謝謝你，肯。讓我們從收入開始第二季度的回顧。受非 FortiGate 產品和服務收入增長 25% 的推動，總收入為 6.16 億美元，增長 18%。非 FortiGate 收入增長得益於對虛擬機和我們在家工作解決方案的強勁需求。 FortiGate 產品和服務收入增長了 16%，這得益於我們安全的 SD-WAN 解決方案創紀錄的賬單水平。

To a large extent, our second quarter revenue growth, together with the backdrop of the COVID-19 pandemic, affirms the benefits of our diversification across geographies, customer segments and industry verticals. At the same time, it illustrates the level of revenue predictability in our business model. Our continued growth in this environment is a result of our strategic internal investments made to expand our global sales force, invest in our channel partners and extend our cost per performance advantage as we update our product offerings and penetrate adjacent security markets.

在很大程度上，我們第二季度的收入增長以及 COVID-19 大流行的背景證實了我們在地域、客戶群和垂直行業的多元化帶來的好處。同時，它說明了我們業務模型中收入的可預測性水平。我們在這種環境下的持續增長是我們戰略性內部投資的結果，這些投資旨在擴大我們的全球銷售隊伍，投資於我們的渠道合作夥伴，並在我們更新我們的產品供應和滲透鄰近的安全市場時擴大我們的性能成本優勢。

Product revenue grew 12% to $212 million -- excuse me, $212 million, benefiting from strong demand for secure SD-WAN, high-end FortiGates and FortiGate virtual machines. Our work-from-home solutions continue to provide a tailwind to growth. Our growth rates and industry reports suggest we continue to take market share in both the firewall and SD-WAN markets, markets where we have contributed leadership and innovation.

產品收入增長 12% 至 2.12 億美元——對不起，2.12 億美元，受益於對安全 SD-WAN、高端 FortiGates 和 FortiGate 虛擬機的強勁需求。我們的在家工作解決方案繼續為增長提供助力。我們的增長率和行業報告表明，我們將繼續在防火牆和 SD-WAN 市場佔據市場份額，這些市場是我們貢獻了領導力和創新力的市場。

Moving to service revenue. Service revenue grew 22% to $404 million, representing 66% of total revenue. Over 90% of service revenue was from deferred revenue at the beginning of the quarter and continues to support our revenue growth and predictability. FortiGuard security subscriptions revenue increased 22% to $223 million. FortiCare technical support revenue increased 22% to $181 million. The revenue mix shift from 8/5 support to our higher-priced 24/7 support was 9 points, with 24/7 support now representing 64% of the mix.

轉向服務收入。服務收入增長 22% 至 4.04 億美元，佔總收入的 66%。超過 90% 的服務收入來自本季度初的遞延收入，並繼續支持我們的收入增長和可預測性。 FortiGuard 安全訂閱收入增長 22% 至 2.23 億美元。 FortiCare 技術支持收入增長 22% 至 1.81 億美元。從 8/5 支持到價格更高的 24/7 支持的收入組合轉變為 9 個百分點，其中 24/7 支持現在佔組合的 64%。

Let's shift to billings. Total billings increased 14% to $711 million. The total billing growth was negatively impacted by approximately 2 points by training and professional services and other miscellaneous products, which are products not classified as FortiGate, fabric or cloud.

讓我們轉到比林斯。總賬單增長 14% 至 7.11 億美元。培訓和專業服務以及其他雜項產品對總賬單增長產生了大約 2 個百分點的負面影響，這些產品未歸類為 FortiGate、結構或云。

Earlier this year, we announced our decision to make our network security expert, or NSE, online training and certification program free to the public. While this decision resulted in a reduction in training billings and training revenue, we're very excited about the demand we are seeing with our NSE training. As of this week, the number of NSE registrations for 2020 is well over 500,000. And the number of NSE certifications issued is up over 200% to nearly 200,000.

今年早些時候，我們宣布決定向公眾免費提供我們的網絡安全專家 (NSE) 在線培訓和認證計劃。雖然這一決定導致培訓費用和培訓收入減少，但我們對 NSE 培訓的需求感到非常興奮。截至本週，2020 年 NSE 註冊數量已遠遠超過 500,000。頒發的 NSE 認證數量增加了 200% 以上，達到近 20 萬個。

Looking at billings by product segment. FortiGate billings increased 14% and accounted for 73% of total billings. FortiGate billings include our secure SD-WAN solutions. And as Ken mentioned a moment ago, SD-WAN passed over the 10% threshold for the first time ever, representing 12% of total billings.

按產品細分查看賬單。 FortiGate 的賬單增長了 14%，佔總賬單的 73%。 FortiGate 賬單包括我們的安全 SD-WAN 解決方案。正如 Ken 剛才提到的那樣，SD-WAN 有史以來第一次超過 10% 的門檻，佔總賬單的 12%。

Non-FortiGate billings also increased 14%, with strong demand from our virtual and work-from-home solutions, offset by smaller contributions from switches and access points. And as I mentioned, billing declines for professional services, training and other miscellaneous products.

非 FortiGate 的賬單也增長了 14%，我們的虛擬和在家工作解決方案的強勁需求被交換機和接入點的較小貢獻所抵消。正如我所提到的，專業服務、培訓和其他雜項產品的賬單下降。

Our geographic performance aligned with a path of the pandemic. And with it, highlighted the geographic diversification of our business, APAC being further along, outperformed all geos, followed by Europe while North America was impacted more. Our North America results include the United States, where we saw headwinds from the education and local government verticals where the COVID-19 pandemic remained an issue. By comparison, the retail segment was by far and away the strongest-performing U.S. vertical with growth well over 40% as we saw the continued expansion of the SD-WAN solution. The U.S. SMB segment provided strong growth, illustrating the strength of our U.S. channel programs, the remaining opportunity in this market and solid execution by our channel partners and the Fortinet channel team. Looking more at the Americas, our analysis and discussions with our channel partners suggest that certain transactions were delayed into the second half of this year as these companies focused on their capital structure and other immediate priorities.

我們的地理表現與大流行的路徑一致。隨之而來的是，突出了我們業務的地域多元化，亞太地區走得更遠，表現優於所有地區，其次是歐洲，而北美受到的影響更大。我們的北美結果包括美國，在那裡我們看到來自教育和地方政府垂直領域的逆風，那裡 COVID-19 大流行仍然是一個問題。相比之下，隨著我們看到 SD-WAN 解決方案的持續擴張，零售領域無疑是美國表現最強勁的垂直領域，增長率超過 40%。美國 SMB 部門實現了強勁增長，說明了我們美國渠道計劃的實力、該市場的剩餘機會以及我們的渠道合作夥伴和 Fortinet 渠道團隊的穩健執行。更多地關注美洲，我們的分析和與渠道合作夥伴的討論表明，某些交易被推遲到今年下半年，因為這些公司專注於他們的資本結構和其他當務之急。

Moving now to worldwide billings by industry verticals. The diversification of our business model was again on display with our top 5 verticals continue to account for about 2/3 of total billings. Worldwide government sector topped all verticals with 19% of total billings. Service providers and MSSPs accounted for 15% of total billings. Financial services with 14% of total billings had a very strong quarter with billings growth of 33%. And despite COVID-related concerns, the retail vertical posted worldwide billings growth of 27%, accounting for 10% of billings as it continued to benefit from SD-WAN and the strong U.S. performance I mentioned a moment ago. We saw strong growth in retail sub-verticals, such as drug stores, groceries and portions of the wholesale industry.

現在轉向按垂直行業劃分的全球賬單。我們業務模式的多元化再次體現出來，前 5 大垂直行業繼續佔總收入的 2/3 左右。全球政府部門以 19% 的總賬單位居所有垂直行業之首。服務提供商和 MSSP 佔總賬單的 15%。佔總賬單 14% 的金融服務有一個非常強勁的季度，賬單增長了 33%。儘管存在與 COVID 相關的擔憂，但由於繼續受益於 SD-WAN 和我剛才提到的美國強勁表現，零售垂直行業的全球賬單增長了 27%，佔賬單的 10%。我們看到零售子垂直行業的強勁增長，例如藥店、雜貨店和部分批發行業。

At the end of the second quarter, total deferred revenue increased 24% to $2.3 billion. Short-term deferred revenue increased 24% to $1.3 billion.

第二季度末，總遞延收入增長 24% 至 23 億美元。短期遞延收入增長 24% 至 13 億美元。

Looking now at deals by dollar size. The number of deals over $1 million increased 28% to 59%. Secure SD-WAN accounted for 13 of these deals over $1 million. This performance illustrates our continued ability to move upmarket into the enterprise segment and the continued acceptance of our differentiated single unit, secure SD-WAN offering.

現在按美元大小看交易。超過 100 萬美元的交易數量增加了 28% 至 59%。安全 SD-WAN 佔這些交易中的 13 筆超過 100 萬美元。這一表現表明我們繼續有能力向高端市場進軍企業市場，並繼續接受我們差異化的單一單元、安全的 SD-WAN 產品。

Moving back to the income statement. As shown on Slide 4, gross margin improved 260 basis points to 79%. Product gross margin improved 340 basis points to 61%. Product gross margin continued to benefit from the lower cost structure of our newer generation of FortiGate products and over 40% growth in software products.

回到損益表。如幻燈片 4 所示，毛利率提高 260 個基點至 79%。產品毛利率提高 340 個基點至 61%。產品毛利率繼續受益於我們新一代 FortiGate 產品的較低成本結構和軟件產品超過 40% 的增長。

Services gross margin increased 120 basis points to 88.5%, reflecting the benefit of the FortiCare revenue mix shift to 24/7 support. Operating margin for the second quarter increased 370 basis points to 27.3%, benefiting from the improvement in gross margin and lower employee travel and marketing program expenses related to the shift towards virtual events.

服務毛利率增長 120 個基點至 88.5%，反映了 FortiCare 收入組合轉向 24/7 支持的好處。第二季度的營業利潤率增長了 370 個基點，達到 27.3%，這得益於毛利率的提高以及與轉向虛擬活動相關的員工差旅和營銷計劃費用的減少。

Total head count ended the quarter at 7,756, an increase of 23%, driven by the increased investments we've made to grow our business and reflecting a continued decline in sales and other attrition rates.

本季度末總員工人數為 7,756 人，增長 23%，這主要是由於我們為發展業務而增加的投資以及銷售額和其他流失率的持續下降。

With our continued growth, strong operating margins and free cash flow, we do not anticipate any COVID-19-related layoffs in the foreseeable future. In fact, we plan to capitalize on our many opportunities by continuing to hire and invest in our balanced growth strategy.

憑藉我們的持續增長、強勁的營業利潤率和自由現金流，我們預計在可預見的未來不會出現任何與 COVID-19 相關的裁員。事實上，我們計劃通過繼續招聘和投資我們的平衡增長戰略來利用我們的許多機會。

Given the strong operating income performance, net income for the second quarter was $135 million. Our earnings per diluted share increased $0.24 to $0.82 per diluted share. On a GAAP basis, we reported net income of $112 million or $0.68 per diluted share versus GAAP income of $73 million or $0.42 per diluted share a year ago.

鑑於強勁的營業收入表現，第二季度的淨收入為 1.35 億美元。我們的每股攤薄收益增加 0.24 美元至每股攤薄收益 0.82 美元。根據 GAAP，我們報告的淨收入為 1.12 億美元或每股攤薄收益 0.68 美元，而一年前的 GAAP 收入為 7300 萬美元或每股攤薄收益 0.42 美元。

Moving to the statement of cash flow summarized on Slide 7 and 8. Free cash flow increased 21.5% to $216 million. The average contract term in the second quarter continued to be within the range we provided at the Analyst Day, declining 1 month year-over-year to 26 months and moving up 1 month sequentially. As we stated on the first quarter call, we expected to leverage the strength of our balance sheet as a competitive advantage to support our partners and our customers.

轉到幻燈片 7 和 8 中總結的現金流量表。自由現金流量增長 21.5% 至 2.16 億美元。第二季度的平均合同期限繼續在我們在分析師日提供的範圍內，同比下降 1 個月至 26 個月，並連續上升 1 個月。正如我們在第一季度電話會議上所說，我們希望利用我們資產負債表的實力作為競爭優勢來支持我們的合作夥伴和客戶。

Average contractual payment terms increased to 62 days or 17% sequentially, in line with our expectations and reflecting our decision to provide geographically targeted extended payment term plans.

平均合同付款期限增加至 62 天或環比增加 17%，這符合我們的預期並反映了我們提供針對地域的延長付款期限計劃的決定。

Capital expenditures for the second quarter were $31 million, including $21 million related to construction and other real estate activity. We estimate capital expenditures for the third quarter to be between $50 million and $60 million and for all of 2020 to be between $165 million and $185 million.

第二季度的資本支出為 3100 萬美元，其中包括與建築和其他房地產活動相關的 2100 萬美元。我們估計第三季度的資本支出在 5000 萬至 6000 萬美元之間，2020 年全年的資本支出在 1.65 億美元至 1.85 億美元之間。

Delays related to the new campus building have moved a portion of the previously expected 2020 CapEx spending into the first half of 2021. We expect full year cash taxes to be approximately $40 million, and our full year non-GAAP tax rate to be 22%.

與新校區建設相關的延誤已將之前預計的 2020 年資本支出的一部分轉移到 2021 年上半年。我們預計全年現金稅約為 4000 萬美元，全年非 GAAP 稅率為 22% .

In the second quarter, we repurchased approximately 1.4 million shares of our common stock for an aggregate purchase price of approximately $146 million. In July, the Board authorized an additional $500 million for our share repurchase authorization and extended the term to February 2022. As of today, the remaining share buyback authorization is approximately $1 billion.

第二季度，我們回購了約 140 萬股普通股，總購買價格約為 1.46 億美元。 7 月，董事會為我們的股票回購授權額外授權了 5 億美元，並將期限延長至 2022 年 2 月。截至今天，剩餘的股票回購授權約為 10 億美元。

Before moving to guidance, we wanted to offer some additional thoughts related to the ongoing COVID-19 pandemic. We have and we plan to continue leveraging the strength of our balance sheet, which may increase DSOs and inventory levels.

在轉向指南之前，我們想提供一些與正在進行的 COVID-19 大流行相關的額外想法。我們已經並且計劃繼續利用我們資產負債表的實力，這可能會增加 DSO 和庫存水平。

The economic and business impact of the pandemic seems in line with the ability of different countries and geographies to reopen and avoid temporary shutdowns and uncertainty. For example, after strong billings growth in April, we saw slower growth as we completed May, then followed by a bounce back to strong growth in June and again strong in July. At the same time, the remaining Q3 pipeline points to a good level of improvement in both the U.S. and worldwide.

大流行的經濟和商業影響似乎與不同國家和地區重新開放和避免臨時關閉和不確定性的能力一致。例如，在 4 月份強勁的出貨量增長之後，我們看到 5 月份增長放緩，然後在 6 月份反彈至強勁增長，並在 7 月份再次強勁增長。與此同時，剩餘的第三季度管道表明美國和全球都有良好的改善水平。

In the second quarter, our channel partners reported some deals being delayed into the second half of the year. The concept was delayed, not lost, seems supported by the increases in our pipeline as well as with July selling activity. Clearly, there remains an elevated level of uncertainty about future -- about future pandemic events and economic conditions.

在第二季度，我們的渠道合作夥伴報告說一些交易被推遲到下半年。這個概念被推遲了，但沒有丟失，似乎得到了我們管道增加以及 7 月銷售活動的支持。顯然，未來的大流行事件和經濟狀況的不確定性仍然很高。

As we look forward, I'd like to review our outlook for the third quarter, summarized on Slide 9, which is subject to the disclaimers regarding forward-looking information that Peter provided at the beginning of the call.

展望未來，我想回顧一下我們對第三季度的展望，總結在幻燈片 9 中，該展望受彼得在電話會議開始時提供的前瞻性信息的免責聲明約束。

In the third quarter, we expect billings in the range of $705 million to $730 million; revenue in the range of $630 million to $645 million; non-GAAP gross margin of 78% to 79%; non-GAAP operating margin of 25.5% to 26.5%; non-GAAP earnings per share of $0.76 to $0.78, which assumes a share count of between 168 million and 170 million. We expect a non-GAAP tax rate of 22%. For 2020, due to the continued uncertainty associated with the economic impact from the COVID-19 pandemic, we are not issuing full year guidance at this time.

第三季度，我們預計賬單在 7.05 億美元至 7.3 億美元之間；收入在 6.3 億美元至 6.45 億美元之間；非美國通用會計準則毛利率為 78% 至 79%；非美國通用會計準則營業利潤率為 25.5% 至 26.5%；非 GAAP 每股收益為 0.76 美元至 0.78 美元，假設股票數量在 1.68 億至 1.7 億之間。我們預計非 GAAP 稅率為 22%。對於 2020 年，由於與 COVID-19 大流行的經濟影響相關的持續不確定性，我們目前不會發布全年指導。

And finally, along with Ken, I'd like to welcome all the team members who have joined us, including the OPAQ team. I'd also like to thank our partners, customers and the Fortinet team for all their support and hard work during these difficult and unique times.

最後，我要和 Ken 一起歡迎所有加入我們的團隊成員，包括 OPAQ 團隊。我還要感謝我們的合作夥伴、客戶和 Fortinet 團隊在這些困難和獨特的時期所提供的所有支持和辛勤工作。

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, Keith. Chris, we would like to open the line for questions, please.

謝謝你，基思。克里斯，請打開問題熱線。

(Operator Instructions) And our first question comes from the line of Rob Owens with Piper Sandler.

（操作員說明）我們的第一個問題來自 Rob Owens 和 Piper Sandler 的台詞。

I want to start on the SD-WAN side of things and the success that you're obviously seeing there through the metrics now over 10% of billings. But just what that pipeline looks like. Have you seen more of a rush given COVID work-from-home and the opportunity to replace a lot of these conditions relative to branch types of solutions? Or are you seeing as much of robust demand, I guess, in that forward pipe?

我想從 SD-WAN 方面開始，你顯然通過指標看到的成功現在超過了 10% 的賬單。但就是那個管道的樣子。鑑於 COVID 在家工作以及有機會取代許多與分支類型的解決方案相關的這些條件，您是否看到了更多的匆忙？或者，我猜，您是否在那個遠期管道中看到了同樣強勁的需求？

I think it's SD-WAN is a long-term benefit for both enterprise and also SMB and because it's also lower the cost of connect to the Internet. At the same time, make it more efficient. And for us, also building with ASIC security together, so they can also have additional secured additional benefit and cost much lower compared to some other competitors.

我認為 SD-WAN 對企業和 SMB 都是一個長期利益，因為它還降低了連接到互聯網的成本。同時，使其更加高效。對我們來說，還與 ASIC 安全性一起構建，因此與其他一些競爭對手相比，他們還可以獲得額外的安全額外收益和成本低得多。

So the market grew about 50% year-over-year. So we see a lot of potential, a lot of pipeline. We do believe we're keep on gaining market share because our solution is a very unique, huge advantage compared to other competitors. And with additional sales capacity we added, like we add head count, 23%. Even during the pandemic, take a little bit more time to train the new sales people, and then they maybe take a little bit more time to gain a new customer, but we do see a huge potential going forward.

因此，該市場同比增長約 50%。所以我們看到了很多潛力，很多管道。我們確實相信我們會繼續獲得市場份額，因為與其他競爭對手相比，我們的解決方案具有非常獨特的巨大優勢。隨著我們增加了額外的銷售能力，比如我們增加了員工人數，增加了 23%。即使在大流行期間，也需要多花一點時間來培訓新的銷售人員，然後他們可能需要多花一點時間來獲得新客戶，但我們確實看到了未來的巨大潛力。

And then secondarily, I guess, focusing on the SASE opportunity and some of the dialogues on previous calls, maybe you could touch on the OPAQ acquisition. Was this customer driven? Was this opportunistic from your perspective, offensive, defensive?

其次，我想，關注 SASE 機會和之前電話會議的一些對話，也許你可以談談 OPAQ 的收購。這個客戶是驅動的嗎？從你的角度來看，這是機會主義的、進攻性的還是防禦性的？

We have this FortiSASE, like I mentioned, even in the last time earnings call, and we do believe it's a part of the whole infrastructure. So as the cloud delivery, we already have some other cloud delivery, but OPAQ definitely keep enhances, and we're making more broad, more flexible for customer, for the partner to leverage the product infrastructure we're building. And so we do see this already and hence, the offer we have. And at the same time, we do have the broadest offering both on the platform and also on the function and also on kind of different form of deployment compared to other competitors we see is keeping ahead our position.

我們有這個 FortiSASE，就像我提到的，即使在上次財報電話會議上，我們也相信它是整個基礎設施的一部分。因此，作為雲交付，我們已經有一些其他的雲交付，但 OPAQ 肯定會不斷增強，我們正在為客戶提供更廣泛、更靈活的服務，以便合作夥伴利用我們正在構建的產品基礎設施。因此，我們確實已經看到了這一點，因此也看到了我們的提議。同時，與我們看到的其他競爭對手相比，我們在平台和功能以及部署形式上確實擁有最廣泛的產品，這讓我們保持領先地位。

And our next question comes from the line of Fatima Boolani with UBS.

我們的下一個問題來自 Fatima Boolani 與瑞銀的合作。

Ken, maybe a bigger picture question for you. The combination of SD-WAN adoption in a more durable work-from-home environment -- maybe as giving investors the sense and perhaps it's misplaced. But giving investors a sense that the traditional enterprise branch office is potentially at risk from either a refreshed footprint perspective and a cannibalization perspective. So I'm wondering if you can help us parse through sort of some of the puts and takes as to what happens to your branch office footprint and what some of those misconceptions might be as customers adopt SD-WAN and or stay at home more permanently in shelter in place situation? And then I have a follow-up for Keith.

肯，也許對你來說是一個更大的問題。在更持久的在家工作環境中採用 SD-WAN 的組合——可能是為了給投資者一種感覺，但也可能是放錯了地方。但是，無論是從更新足蹟的角度還是從蠶食的角度來看，讓投資者感覺到傳統企業分支機構都可能面臨風險。所以我想知道您是否可以幫助我們分析一些關於您的分支機構足跡發生了什麼的問題，以及當客戶採用 SD-WAN 和/或更永久地呆在家裡時，其中一些誤解可能是什麼在就地避難的情況下？然後我要跟進 Keith 的情況。

The enterprise also, including some branch profits we do see some slowdown especially in the U.S. But it's -- on the other side, if you look at our product, which come out like the SoC4 come out 1 years ago, we started building a product like from 100F to 60F for the 40F, then we just announced 80F last week. So we can see the ramp-up, especially in the SMB, including the U.S., as it go up like over 40%. It's very, very strong. Internationally, we're a little bit behind on the U.S. to adopt some new products, including some -- both the low end using SoC4 and also the high end NP7, which is starting to release about like early this year and so starting to ramp up.

企業也，包括一些分支機構的利潤，我們確實看到了一些放緩，尤其是在美國。但另一方面，如果你看看我們的產品，就像 1 年前推出的 SoC4 一樣，我們開始構建產品就像 40F 從 100F 到 60F，然後我們上周剛剛宣布了 80F。所以我們可以看到增長，尤其是在 SMB 中，包括美國，增長超過 40%。它非常非常強大。在國際上，我們在採用一些新產品方面有點落後於美國，包括一些——使用 SoC4 的低端產品和高端 NP7，它大約在今年年初開始發布，因此開始加速向上。

So that's why we see the benefit of the new product, which easily have a performance like 4x, 5x better than the same cost, which we use in the - - we call security compute rating to benchmark compared to the other competitor is a huge advantage. So we see -- when we have the new product growth that come up very quickly after the testing [evaluate] on top of the product. But on the other side, the SD-WAN also gave the additional cost benefit, together with the new product cost performance benefit. So that's what helping driving the SMBs. We see it starting growing quite well.

所以這就是為什麼我們看到新產品的好處，它很容易比相同的成本有 4 倍、5 倍的性能，我們在 - 我們稱之為基準的安全計算評級與其他競爭對手相比是一個巨大的優勢.所以我們看到——當我們在產品之上進行測試[評估]後，新產品的增長非常迅速。但另一方面，SD-WAN 也帶來了額外的成本優勢，以及新產品的性價比優勢。這就是幫助推動 SMB 的原因。我們看到它開始增長得很好。

Also last quarter, after we announced the high end product, like 1 to 2 quarter, we starting to see the high end also starting to ramp up leverage NP7. So that's the trend. And I do believe sometime enterprise takes a little bit more time during this pandemic to do some deployment. But we do see a lot of evaluation going on. We do see some other interest, including combined, we call security networking together, we call secure-driven networking set the whole infrastructure. That's why the sales probably were more engage into the networking team. And also traditionally, more sales to security.

同樣在上個季度，在我們宣布高端產品後，比如 1 到 2 季度，我們開始看到高端產品也開始增加槓桿 NP7。這就是趨勢。而且我確實相信，在這種大流行期間，有時企業會花費更多的時間來進行一些部署。但我們確實看到很多評估正在進行。我們確實看到了一些其他的興趣，包括結合起來，我們一起稱之為安全網絡，我們稱之為安全驅動網絡集整個基礎設施。這就是為什麼銷售人員可能更多地參與到網絡團隊中。而且傳統上，更多的銷售是安全的。

Now as the networking team also starting engaged together with us [to call] secure-driven networking. So as we see the trend going on quite well. And also, like Keith mentioned, it's region by region, right? So it's a APAC staring to grow more very quickly, over 20%. And simply the pandemic kind of the situation maybe better recover a little bit better. And then we also see Europe probably also growing over 10%. The U.S. is a little bit slow, but we do believe later this year, next year that [vaccines over], with the new product lineup, with the additional sales capacity we build, which we'll continue to invest, where we see very, very strong potential going forward.

現在作為網絡團隊也開始與我們一起參與 [調用] 安全驅動的網絡。因此，正如我們所看到的趨勢進展順利。而且，就像 Keith 提到的那樣，它是逐個區域的，對嗎？因此，亞太地區的增長速度非常快，超過 20%。只是大流行的情況可能會更好地恢復一點。然後我們還看到歐洲也可能增長超過 10%。美國有點慢，但我們確實相信今年晚些時候，明年[疫苗結束]，隨著新產品系列的增加，我們將繼續投資的額外銷售能力，我們看到非常，未來的潛力非常大。

Yes, Fatima This is Keith. I think Ken does a great job of covering off some of the diversification considerations, whether it's by geographies and where different geographies may be and also by verticals. But it's also important to note that SD-WAN is also a significant component of SASE also for work-from-home solutions.

是的，法蒂瑪這是基思。我認為 Ken 很好地掩蓋了一些多元化的考慮，無論是按地理位置還是不同的地理位置以及垂直領域。但同樣重要的是要注意，SD-WAN 也是 SASE 的重要組成部分，也適用於在家工作的解決方案。

Fair enough. And Keith, since I have you, any comments on the billings performance, specifically this quarter? And just double-clicking in Q4 to get gate billings because that includes both your traditional sort of network security perimeter security and the secure SD-WAN piece.

很公平。基思，既然我有你，對比林斯業績有何評論，特別是本季度？只需在第 4 季度雙擊即可獲得登機口賬單，因為這包括傳統的網絡安全邊界安全和安全的 SD-WAN 部分。

I'm wondering if you can kind of qualitatively talk to sort of what drove the bus this quarter and how you're thinking about the secure SD-WAN versus non-secure SD-WAN, Fortigate pipeline for the remainder of the year and what's baked into your 3Q guidance? And that's it for me.

我想知道您是否可以定性地談談本季度推動公交車發展的因素，以及您如何看待安全 SD-WAN 與非安全 SD-WAN、今年剩餘時間的 Fortigate 管道以及什麼是納入您的 3Q 指導？對我來說就是這樣。

A lot of topics, Fatima. Maybe I'll start with the last one in.

很多話題，法蒂瑪。也許我會從最後一個開始。

I tried.

我試過。

I know you do a good job. Look, I think when we look at the pipeline for Q3, which is what we've guided to, I think we feel very good about the SD-WAN opportunity. Clearly, we saw it perhaps, in the U.S. in the month of May a bit of a pause, maybe some projects that were -- as we got towards the end of May. But clearly, as we exited Q2 and we've moved into Q3, we can see that our customers are making plans to continue moving forward their SD-WAN build-outs. And the additional opportunities that we see in the pipeline made us, let's just say, comfortable talking about crossing over that 10% threshold for the first time. Now we'll see how it actually comes into play. And I think I lost track of some of your earlier comments, I'm sorry.

我知道你做得很好。看，我認為當我們查看第三季度的管道時，這就是我們所指導的，我認為我們對 SD-WAN 機會感覺非常好。顯然，我們可能在 5 月份在美國看到了一些停頓，也許一些項目是——當我們接近 5 月底時。但很明顯，當我們退出第二季度並進入第三季度時，我們可以看到我們的客戶正在製定計劃繼續推進他們的 SD-WAN 建設。我們在管道中看到的額外機會讓我們可以輕鬆地談論第一次超過 10% 的門檻。現在我們來看看它是如何發揮作用的。我想我忘記了你之前的一些評論，我很抱歉。

And our next question comes from the line of Shaul Eyal with Oppenheimer.

我們的下一個問題來自 Shaul Eyal 與 Oppenheimer 的對話。

Congrats on the quarter. Keith or Ken. So U.S. was the fastest region this quarter. Next week, we'll mark the middle of the quarter, the third quarter. Can you talk to us about the performance so far within the U.S.? What's the pipeline is looking like?

祝賀這個季度。基思或肯。因此，美國是本季度增長最快的地區。下週，我們將迎來季度中期，即第三季度。能和我們談談目前在美國的表現嗎？管道是什麼樣子的？

We do see some enterprise customer has a good interest about SASE and just like some other cloud or some other platform of deployment infrastructure. So that when we make it as the whole infrastructure security offering. And the dollar or the amount of revenue are still relatively small, which may not impact much of the total billing of revenue there, but there's an interest about this and make it -- so customer want us make sure has some kind of flexibility and also broad offering. So that's where we see the OPAQ acquisition keep enhance what we have on the FortiSASE and also offer more broad, both on the product and the deployment on the infrastructure side to meet customer demand.

我們確實看到一些企業客戶對 SASE 很感興趣，就像其他一些雲或其他一些部署基礎設施平台一樣。因此，當我們將其作為整個基礎架構安全產品時。而且美元或收入金額仍然相對較小，這可能不會對那裡的總收入產生太大影響，但人們對此很感興趣並做出來 - 所以客戶希望我們確保具有某種靈活性，並且廣泛的產品。因此，這就是我們看到 OPAQ 的收購不斷增強我們在 FortiSASE 上的能力，並在產品和基礎設施方面的部署方面提供更廣泛的服務，以滿足客戶需求。

Yes. And I would add to Ken's comment. Just pulling back and looking at it even maybe a little more broadly and to the comments that were made in the prepared remarks, we were very pleased with what we saw in terms of July selling activity and the pipeline build worldwide as well as in the U.S.

是的。我想補充 Ken 的意見。只是退後一步，甚至可能更廣泛地看待它，以及在準備好的評論中發表的評論，我們對我們在 7 月份的銷售活動和全球以及美國的管道建設方面所看到的情況感到非常滿意。

Yes. At the same time, like we said, we're also keep on supporting our partner, including the service provider and even some big global customers, they also want to build in their own SASE to just like the cloud. Sometimes they have the private cloud or the leverage public cloud or the hybrid cloud. So it's a similar thing we're seeing here in SASE, which we're also supporting the partner, the customer try to have their own version of SASE, which is based on the service of zero-trust infrastructure to deploy some security function.

是的。同時，就像我們說的，我們也在繼續支持我們的合作夥伴，包括服務提供商，甚至一些全球大客戶，他們也希望構建自己的 SASE 來像雲一樣。有時他們擁有私有云或利用公共雲或混合雲。所以這是我們在 SASE 中看到的類似的事情，我們也在支持合作夥伴，客戶嘗試擁有他們自己的 SASE 版本，它基於零信任基礎設施的服務來部署一些安全功能。

And our next question comes from the line of Sterling Auty with JPMorgan.

我們的下一個問題來自 Sterling Auty 與摩根大通的合作。

You mentioned continued tailwinds from work-from-home, but we have seen the growth rate on the product side and to a certain extent, the billings ex the adjustments you mentioned start to fade. So I guess my question is, do you expect that those trends can continue on for multiple more quarters? Or do we face further deceleration in the back half as some of the work-from-home tailwinds fade further?

你提到在家工作帶來的持續順風，但我們已經看到產品方面的增長率，並且在一定程度上，你提到的調整前的賬單開始消退。所以我想我的問題是，你認為這些趨勢會持續多個季度嗎？或者隨著一些在家工作的順風進一步減弱，我們是否會在後半段面臨進一步減速？

We do see the enterprise service provider, the high end continue to grow maybe because the new product is announced early this year. And also some SMB, some other part also have very healthy growth. And also, even some of the product target for work-from-home continue to grow in, like we mentioned, FortiToken, FortiAuthenticator and some other products. So it's probably not as a rush buy like we're experiencing some back in March, but it's still pretty strong above the total network security growth.

我們確實看到企業服務提供商，高端繼續增長可能是因為新產品在今年年初宣布。還有一些 SMB，其他一些部分也有非常健康的增長。而且，甚至一些在家工作的產品目標也在繼續增長，就像我們提到的，FortiToken、FortiAuthenticator 和其他一些產品。因此，這可能不像我們在 3 月份經歷的那樣匆忙購買，但它仍然高於整體網絡安全增長。

Okay. And then one follow-up. We've heard from multiple companies about accelerating digital transformations. How did the digital transformations and shift to the cloud impact your business either positively or otherwise?

好的。然後是跟進。我們從多家公司那裡聽說了關於加速數字化轉型的消息。數字化轉型和向雲端的轉變如何對您的業務產生積極或其他方面的影響？

Yes, we see pretty strong in the retail, right? So if retail, they can order online, they can do whatever deliver or some other -- definitely, they have a lot of benefit. So that's where we see very strong growth in retail, probably benefit from the digitalization and some other vertical or even some other regions have a sort of similar sense. And especially, we said that's what we call the security-driven networking, its combined security networking together. And even the sales, traditionally, they're more engaged with the security team. Now they see a lot of interest from the networking team, partially because SD-WAN is part of FortiGate function, but other party do see it needs to into the networking and security working together, whether the (inaudible) or the SoC combined together, is also a trend there. So that's where we see quite a good progress combined the security network together, which we designed from our beginning, not just SD-WAN, including Wi-Fi. But Wi-Fi a little bit slow right now because especially enterprise [offered] in the office, not many people [work] in the office, but we do see a lot of interest continuing in that direction. And also the 5G, we see very, strong increase in ramp up.

是的，我們看到零售業非常強勁，對吧？因此，如果是零售，他們可以在線訂購，他們可以做任何送貨或其他事情——當然，他們有很多好處。所以這就是我們看到零售業強勁增長的地方，可能受益於數字化，其他一些垂直領域甚至其他一些地區也有類似的感覺。特別是，我們說這就是我們所說的安全驅動網絡，它結合了安全網絡。傳統上，即使是銷售，他們也更多地與安全團隊合作。現在他們看到網絡團隊很感興趣，部分原因是 SD-WAN 是 FortiGate 功能的一部分，但其他方確實看到它需要將網絡和安全一起工作，無論是（聽不清）還是 SoC 結合在一起，也是一種趨勢。因此，我們看到將安全網絡結合在一起取得了相當大的進步，我們從一開始就設計了這些網絡，而不僅僅是 SD-WAN，包括 Wi-Fi。但是現在 Wi-Fi 有點慢，因為特別是在辦公室 [提供] 的企業，在辦公室 [工作] 的人不多，但我們確實看到很多人都在朝著這個方向發展。還有 5G，我們看到增長非常強勁。

And our next question comes from the line of Brian Essex with Goldman Sachs.

我們的下一個問題來自 Brian Essex 與 Goldman Sachs 的對話。

Keith, I was wondering maybe if you could hit a little bit more on billings, maybe a little bit softer than we had expected in the quarter and then kind of a nice guidance for next quarter. Maybe some of the dynamics behind that. And in particular, I'm interested in large deal dynamics, particularly U.S. financial services, where we've heard about some weakness in the quarter. I understand retail is really strong, but maybe a little bit more color on that and how it might impact billings.

基思，我想知道你是否可以在賬單上多打一點，也許比我們在本季度預期的要軟一點，然後為下個季度提供一個很好的指導。也許這背後有一些動力。特別是，我對大型交易動態很感興趣，尤其是美國金融服務業，我們聽說該季度存在一些疲軟。我知道零售業確實很強勁，但可能會有更多的色彩以及它如何影響賬單。

I think the financial services strength that we saw in the quarter was outside of the U.S. Obviously, New York got hit. Northeast got hit pretty hard with the pandemic in the second quarter. And so that financial services growth number that we gave on billings, I think, it was 33%. That's really an international growth number, and it kind of speaks to the diversification of the business. And we've talked before about our diversification that the U.S. represents maybe 25% to 30%. Obviously, our largest country, but not a majority as it is with some other businesses. So we did feel the effect, particularly towards the middle part of the quarter there with some of the things that were happening and the uncertainty in the U.S. on our total numbers, but we are very pleased with what we saw, as I said earlier, related to Asia Pacific and the rest of the world.

我認為我們在本季度看到的金融服務實力在美國以外。顯然，紐約受到了打擊。東北部在第二季度受到大流行的嚴重打擊。因此，我們在賬單上給出的金融服務增長數字，我認為是 33%。這確實是一個國際增長數字，它在某種程度上說明了業務的多元化。我們之前談過我們的多元化，美國可能佔 25% 到 30%。顯然，我們是最大的國家，但不像其他一些企業那樣佔多數。因此，我們確實感受到了影響，尤其是在本季度中期發生的一些事情以及美國的不確定性對我們的總數產生了影響，但正如我之前所說，我們對所看到的情況感到非常滿意，關係到亞太地區和世界其他地區。

Yes. The other part, really, starting to make the second half of last year, we started in May, the second half of last year we started to ramp up the high-end ad sales capacity, additional market in lead gen -- and then the pandemic actually slowed down some of the new sales, I mean, become like more productive or whatever reach the productivity level for what we expect. At the same time, some of them maybe take a little bit longer time to reach the new customer, especially in the U.S., we do have quite some sales capacity. That's actually the pandemic slow since down a little bit, but with the additional hiring, with additional new product position we have, we do believe once the pandemic starting to get better, especially in the U.S., we will see very strong growth potential.

是的。另一部分，真的，從去年下半年開始，我們從 5 月開始，去年下半年我們開始提高高端廣告銷售能力，增加潛在客戶市場——然後是大流行病實際上減緩了一些新的銷售，我的意思是，變得更有生產力或達到我們預期的生產力水平。同時，其中一些可能需要更長的時間才能接觸到新客戶，尤其是在美國，我們確實有相當的銷售能力。這實際上是大流行放緩了一點，但隨著更多的招聘，我們擁有更多的新產品職位，我們相信一旦大流行開始好轉，特別是在美國，我們將看到非常強勁的增長潛力。

Got it. Maybe, Keith, just a quick follow-up quickly. Nice [cut in] cash flow in the quarter, better than we thought. Maybe some of the puts and takes outside of billings and change in deferred that drove that and outlook for the rest of the year from -- particularly from a working capital perspective.

知道了。基思，也許只是快速跟進一下。本季度現金流不錯，比我們想像的要好。也許一些看跌期權和賬單之外的看跌期權和遞延的變化推動了這一點以及今年剩餘時間的前景 - 特別是從營運資本的角度來看。

Yes. I think the other part of it is that collections are very strong, and I applaud the collections team for the great job that they did, working with our channel partners to bring the cash in. I think we were perhaps a little more successful in that than we planned. Yes. I think when you look at our free cash flow numbers, you're going to get from quarter-to-quarter a little bit of volatility because we try not to over manage the timing of payments and things of that nature. So it's probably better to look at a couple of quarters stringing those together to look at terms. But in terms of the key drivers, yes, it's billings. You can get something with inventory and payables.

是的。我認為另一部分是收款非常強大，我讚賞收款團隊所做的出色工作，與我們的渠道合作夥伴合作帶來現金。我認為我們在這方面可能更成功一些比我們計劃的要多。是的。我認為，當你查看我們的自由現金流量數據時，你會發現每個季度都會有一點波動，因為我們盡量不過度管理付款時間和類似性質的事情。因此，最好將幾個季度串在一起以查看條款。但就關鍵驅動因素而言，是的，它是比林斯。你可以得到一些有庫存和應付賬款的東西。

But I think the margin part of that really is a large driver. That outperformance on the margin line really manifests itself in many ways, one of which is in the free cash flow.

但我認為其中的利潤部分確實是一個很大的驅動因素。利潤線上的出色表現確實以多種方式體現出來，其中之一就是自由現金流。

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

我們的下一個問題來自 Hamza Fodderwala 與摩根士丹利的合作。

Keith, I just wanted to dig in a little bit on the comments that you made around some of the sales cycles towards the end of the quarter. I'm wondering if how did those deal cycles progress toward late in Q2. What, if any, deals sort of had slipped out in Q3? And whether or not those have been closed so far in July?

基思，我只是想深入了解一下您在本季度末的一些銷售週期中發表的評論。我想知道這些交易週期在第二季度末是如何進展的。如果有的話，第三季度有哪些交易被取消了？到目前為止，7 月份是否關閉了這些網站？

Yes, fair question. And I think the thing that we've seen with the pandemic, and I'll pull this up a little bit, if you go through the guidance setting process, obviously, you'll start with the pipeline, and then you start making certain assumptions about the close rate. And while we felt good, I felt good about what I was seeing in April, nonetheless, we made some adjustments to our expected close rate in the quarter for the second quarter. And as we got to kind of leading to your question, the last week of the quarter, I think we saw perhaps a few more deals that did not get the final signature that we expected them to get.

是的，公平的問題。而且我認為我們在大流行病中看到的事情，我會把它拉高一點，如果你經歷指導設定過程，顯然，你將從管道開始，然後你開始確定關於收盤價的假設。儘管我們感覺良好，但我對 4 月份的情況感覺良好，儘管如此，我們還是對第二季度的預期收盤率進行了一些調整。當我們開始提出您的問題時，在本季度的最後一周，我認為我們可能看到了更多交易沒有獲得我們預期的最終簽名。

And then your follow-on part of your question is, what are we seeing in July, and that's why I'm making the point that I think I'm very -- we're very pleased with what we're seeing in terms of July of sales activity, whether you measure it base on growth or linearity against our target as well as the pipeline and as well as considering what we might call pandemic-related close rates.

然後你的問題的後續部分是，我們在 7 月看到了什麼，這就是為什麼我要指出我認為我非常 - 我們對我們所看到的情況感到非常滿意7 月份的銷售活動，無論您是根據我們的目標和管道的增長還是線性來衡量它，以及考慮我們所謂的與大流行相關的收盤率。

Got it. Got it. And just a follow-up question, if I may. On the government vertical, obviously, that's a big one for you. Could you comment a little bit about on how that grew from a year-on-year perspective? And what you see in the pipeline, especially with the U.S. federal close coming up?

知道了。知道了。如果可以的話，只是一個後續問題。顯然，在政府垂直領域，這對你來說很重要。你能從同比的角度談談它是如何增長的嗎？你在管道中看到了什麼，尤其是在美國聯邦關閉即將到來的情況下？

Yes. So keep in mind, our U.S. Federal business -- our federal business is -- our government business, excuse me, it has 3 components. It has a U.S. Fed, it has international governments and it has state and local governments. And I would say that the performance was strong across at about 26% growth, 25% growth, but that was not driven by state and local government. State and local government suffered. And then the U.S. Fed part of our business is not a huge part of our business. So you're really looking at, while the U.S. Fed did well, we had nice, very attractive growth internationally with our government segment.

是的。所以請記住，我們的美國聯邦業務——我們的聯邦業務是——我們的政府業務，對不起，它有 3 個組成部分。它有一個美聯儲，它有國際政府，它有州和地方政府。我要說的是，業績表現強勁，增長率約為 26% 和 25%，但這並不是由州和地方政府推動的。州和地方政府遭受損失。然後我們業務的美聯儲部分並不是我們業務的很大一部分。所以你真的在看，雖然美聯儲表現不錯，但我們的政府部門在國際上取得了不錯的、非常有吸引力的增長。

Our next question comes from the line of Brad Zelnick with Crédit Suisse.

我們的下一個問題來自 Brad Zelnick 與 Crédit Suisse 的對話。

You guys continue to execute well, putting up better results than your nearest competitors. And the diversification of your business is on full display this quarter, which is great to see. Can you comment at all just in terms of the competitive dynamic that you're seeing out there? And maybe anything that you can share in terms of the pricing dynamic as well?

你們繼續執行得很好，比最接近的競爭對手取得了更好的成績。您的業務多元化在本季度得到全面展示，這很值得一看。您能就您所看到的競爭動態發表評論嗎？也許您還可以分享定價動態方面的任何信息？

Yes. I think with the -- like a 73% business come from FortiGate. So with the new release of like today, the high-end and most high-end product to support hyperscale. So we see the performance that keep increased as we are getting much better, better and at the same time, in the last few quarters, the SoC4-based like from 60F to 80F to 100F 40F, we're also starting to see huge investment of growth in the field, especially, you can see the SMB, they usually buy this low-end SoC-based product also is growing quite well. So that's where from the product we see because we're keeping investment high in this ASIC, which has a much better computing power and a security function compared to the general purpose CPU, [so the recorded] Security compute rating come from like 25x better to like today's products like 13x better than the competitor. It's a huge advantage and plus additional function like SD-WANs and other parts. So we see a quite a huge advantage and more gap compared with competitor. They probably will keep on pushing some software or some other form of deployment, which because it did have a difficult time competing with us into this appliance or some other base.

是的。我認為 - 73% 的業務來自 FortiGate。所以隨著像今天這樣的新發布，高端和最高端的產品支持超大規模。所以我們看到性能不斷提高，因為我們變得越來越好，同時，在過去的幾個季度中，基於 SoC4 的處理器從 60F 到 80F 再到 100F 40F，我們也開始看到巨大的投資該領域的增長尤其如此，你可以看到 SMB，他們通常購買這種基於 SoC 的低端產品也增長得相當好。所以這就是我們從產品中看到的地方，因為我們在這個 ASIC 上保持高投資，與通用 CPU 相比，它具有更好的計算能力和安全功能，[因此記錄的] 安全計算評級來自大約 25 倍比競爭對手更喜歡今天的產品 13 倍。這是一個巨大的優勢，加上 SD-WAN 和其他部分等附加功能。因此，與競爭對手相比，我們看到了相當大的優勢和更大的差距。他們可能會繼續推動一些軟件或其他形式的部署，這是因為它確實很難與我們競爭進入這個設備或其他一些基地。

But for us, also, we're positioned to have the whole infrastructure solution, not just the appliance base, but also in the cloud and in the software base, and then also offer different kind of deployment, different kind of service. We also see quite good healthy growth from that angle. And that's where the -- we call the fabric approach, the fabric solution. Amount of revenue is still like almost double compared to FortiGate growth. So we still see pretty healthy like once you get in leverage of FortiGate, then we can more easy to expand into the other non-FortiGate growth.

但對我們來說，我們也定位於擁有整個基礎設施解決方案，不僅是設備基礎，還包括雲和軟件基礎，然後還提供不同類型的部署、不同類型的服務。從這個角度來看，我們也看到了相當不錯的健康增長。這就是——我們稱之為結構方法、結構解決方案的地方。與 FortiGate 的增長相比，收入金額仍然幾乎翻了一番。因此，我們仍然看到非常健康，就像您利用 FortiGate 一樣，那麼我們可以更輕鬆地擴展到其他非 FortiGate 增長。

So that benefit the fabric advantage still keeping help us grow faster above-average because it's really -- the consolidation is still the -- still is the trend in the whole industry there. So customers want to reduce the management cost. They prefer to consolidate some of the vendors, which we started to see more benefit for us because most product function, we do develop in-house, which make it integrate and automate on day 1 compared to some other competitive [dependent] acquisitions, more difficult to integrate and automate. So that's what we see is we continue to invest long term both on the product technology infrastructure side, and we do believe it's a long-term gain. And so that's where so we're keeping gaining market share. And we do see the gap bigger, and we have more advantage right now.

因此，面料優勢的好處仍然有助於我們以高於平均水平的速度增長，因為它確實 - 整合仍然是 - 仍然是整個行業的趨勢。所以客戶希望降低管理成本。他們更願意整合一些供應商，我們開始看到這對我們有更多好處，因為大多數產品功能，我們在內部開發，與其他一些競爭性 [依賴] 收購相比，這使得它在第一天就集成和自動化，更多難以集成和自動化。所以這就是我們所看到的，我們繼續在產品技術基礎設施方面進行長期投資，我們相信這是一個長期收益。這就是我們不斷獲得市場份額的地方。我們確實看到差距更大，我們現在有更多優勢。

Yes, Brad, it's Keith. I would continue on what Ken's comments there a little bit. And keeping in mind, I made a reference to it in the text that we're seeing a new cost advantage evolved within the E-Series, and we expect it to continue with the F-Series. I mean I think that the company can has done a tremendous job with the ASIC Advantage of driving down the cost in subsequent generations of the chip at the same time, driving up the performance. That gross margin performance that I mentioned earlier in the script, that actually came with it with just a small headwind with discounting for the first time. And you may have been asking a discounting question. Discounting is the first time we've seen that in several quarters, about 0.5 point, if you will, perhaps increase in discounting. But that cost structure that's coming with the ASIC Advantage that I made reference to is more than enough to outweigh that.

是的，布拉德，我是基思。我會繼續談談 Ken 的評論。請記住，我在文中提到了它，我們看到 E 系列中出現了新的成本優勢，我們希望 F 系列繼續保持這種優勢。我的意思是，我認為該公司可以利用 ASIC 優勢在降低後續幾代芯片成本的同時提高性能方面做得非常出色。我在腳本前面提到的毛利率表現，實際上是第一次出現了小的逆風和折扣。您可能一直在問折扣問題。折扣是我們幾個季度以來第一次看到，大約 0.5 個百分點，如果你願意的話，可能會增加折扣。但是我提到的 ASIC Advantage 帶來的成本結構足以超過它。

Thank you both so much for the very thorough answers. And I would just say that the competitive differentiation of your strategy continues to shine through. Congrats.

非常感謝你們非常詳盡的回答。我只想說，你們戰略的競爭差異化繼續閃耀。恭喜。

Your next question comes from the line of Walter Pritchard.

你的下一個問題來自 Walter Pritchard。

Two product questions. First, just on the -- I think last quarter, you had some real strength in the remote access, things like authenticators and tokens. Just curious how that continued into this quarter. And then also on the SASE side, when are you talking about having an integrated SASE SD-WAN product in the market?

兩個產品問題。首先，就——我認為上個季度，你在遠程訪問方面擁有一些真正的實力，比如身份驗證器和令牌。只是好奇這種情況如何持續到本季度。然後在 SASE 方面，您何時談論在市場上推出集成的 SASE SD-WAN 產品？

I'll take the first one. In very round numbers, I would say, if I got a benefit of, call it, very round numbers, $10 million in the first quarter. I probably got half that benefit in the second quarter on those 3 work-from-home products.

我要第一個。在非常整數的情況下，我會說，如果我從中獲益，那麼在第一季度就可以稱之為非常整數的 1000 萬美元。我可能在第二季度從這 3 種在家工作的產品中獲得了一半的收益。

Okay. the SASE we're offering them to the customer to the partner this quarter, and it's part of what we call the fabric FortiSASE solution. And we do see the interest both from the existing customers, from new customers. And at the same time, a lot of our service provider partners are also very interested in this. And even some global customers, they also want to build their own version of SASE, which we are also supporting them behind.

好的。本季度我們向合作夥伴的客戶提供 SASE，它是我們所謂的結構 FortiSASE 解決方案的一部分。我們確實看到了現有客戶和新客戶的興趣。同時，我們的很多服務提供商合作夥伴也對此非常感興趣。甚至一些全球客戶，他們也想構建自己的SASE版本，我們也在背後支持他們。

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

我們的下一個問題來自美國銀行的 Tal Liani。

My question is more general about the market. The data shows that the firewall market has been slowing down tremendously in the last few quarters, 6 or 7 quarters of decline. What is your experience with the market? I'm trying to understand if your continued growth is a question of continued share gain or new products that are compensating for firewall weaknesses. So what's your view of the overall market and the drivers for firewall demand in the market?

我的問題是關於市場的更普遍的問題。數據顯示，防火牆市場在過去幾個季度中一直在大幅放緩，有 6 或 7 個季度出現下滑。你對市場有什麼經驗？我試圖了解您的持續增長是持續份額增長的問題還是彌補防火牆弱點的新產品。那麼您對整個市場和市場防火牆需求的驅動因素有何看法？

Yes, the traditional firewall, they're more secured, we called [the border], which is positioned between the internal network LAN and also the Internet. That part is, like I say, there's a -- no longer enough. There's a multiple way you can bypass that and also a lot of application, a lot of -- since also go beyond the company network, they go to the cloud. They go to some other part like mobile access. So that's where the traditional firewall where we do see the growth slow down. That's where we keep expanding beyond like we expand the WAN and that's we call security-driven network in that space and even building of the FortiGate and make it part of the WAN solution and also part of cloud solution. At the same time, internally also expand total internal segmentation, like with the switch, with Wi-Fi access point. That part is also growing very, very well and quite strong.

是的，傳統的防火牆，他們更安全，我們稱之為[邊界]，它位於內部網絡局域網和互聯網之間。就像我說的那樣，那部分是 - 已經不夠了。有多種方法可以繞過它，還有很多應用程序，很多——因為也超越了公司網絡，他們進入了雲端。他們去了其他部分，比如移動訪問。所以這就是我們確實看到增長放緩的傳統防火牆。這就是我們不斷擴展的地方，就像我們擴展 WAN 一樣，我們稱之為該領域的安全驅動網絡，甚至構建 FortiGate 並使其成為 WAN 解決方案的一部分，也是雲解決方案的一部分。同時，在內部也擴展了總的內部分段，比如用交換機，用Wi-Fi接入點。那部分也發展得非常非常好並且非常強大。

And so like I said is we keep in saying now, we say it's a third-generation of network of security infrastructure from the traditional connection base to when we formed Fortinet. We called it content application-based security. And now it's more like the whole infrastructure security including both the traditional gateway and also go to the Internet and the WAN connection, cloud solution and the SASE, at the same we can go internal for the segmentation for the switch for the Wi-Fi, it's the whole new enterprise, the end point of different application. So it's the whole infrastructure security, we feel is a new trend, which we prepare all this using the fabric, using ASIC, increase the computing power to address the network speed issue.

所以就像我說的那樣，我們現在一直在說，我們說這是從傳統連接基礎到我們成立 Fortinet 的第三代安全基礎設施網絡。我們稱之為基於內容應用程序的安全性。現在它更像是整個基礎設施的安全，包括傳統網關，也包括到互聯網和 WAN 連接、雲解決方案和 SASE，同時我們可以在內部進行 Wi-Fi 交換機的分段，它是全新的企業，不同應用的終點。所以這是整個基礎設施的安全性，我們覺得這是一個新趨勢，我們準備所有這些都使用結構，使用 ASIC，增加計算能力來解決網絡速度問題。

We keep in doing this in the -- for about 20 years since we found the company. So we're starting to see the investment we made, whether from ASIC, from the technology from the product side, from the infrastructure side, starting more benefit us and differentiate Fortinet compared to some other competitors, still relatively. It's the same approach compared to the early day of network security. So that's what we see as a gap and the advantage we have is kind of bigger and bigger going forward.

自從我們成立公司以來，我們一直這樣做了大約 20 年。因此，我們開始看到我們所做的投資，無論是來自 ASIC、產品方面的技術、基礎設施方面的投資，都開始讓我們受益更多，並使 Fortinet 與其他一些競爭對手相比，仍然是相對的。與早期的網絡安全相比，這是相同的方法。所以這就是我們所看到的差距，我們擁有的優勢越來越大。

Got it. And the migration to SASE, isn't it going against your core offering?

知道了。遷移到 SASE 是否與您的核心產品背道而馳？

No. It's a part of the whole infrastructure security and like SD-WAN because for the SASE is really, you need the access to it, right? So that's where SD-WANs and other parts really have a good way to access that. So we are built in into the FortiGate and has huge performance and functional advantage. And at the same time, the service model leverage, the infrastructure we have, the customer base we have, that's where the OPAQ acquisition keeping enhanced this part. So that's what we address some of the new things the customer need. And at the same time, the partner also see how we can like working closely with them to supporting the customer better, give them the additional flexibility no matter what kind of format of security form that they want.

不，它是整個基礎設施安全的一部分，就像 SD-WAN 一樣，因為對於 SASE 來說，你需要訪問它，對吧？所以這就是 SD-WAN 和其他部分真正有訪問它的好方法的地方。所以我們被內置到 FortiGate 中並具有巨大的性能和功能優勢。同時，服務模型槓桿，我們擁有的基礎設施，我們擁有的客戶群，這就是 OPAQ 收購不斷增強這一部分的地方。這就是我們解決客戶需要的一些新事物的原因。同時，合作夥伴也看到了我們如何與他們密切合作以更好地支持客戶，無論他們想要哪種格式的安全表格，都能為他們提供額外的靈活性。

(Operator Instructions) And Our next question comes from the line of Amit Daryanani with Evercore.

（操作員說明）我們的下一個問題來自 Evercore 的 Amit Daryanani。

I guess first one, you guys mentioned a couple of times about certain deals just getting pushed out from June into the September quarter. Any sense you could give in terms of the deal size or the verticals where you saw this happening? And I guess if you didn't have any of these issues, what would the June quarter revenue look like?

我想第一個，你們提到了幾次關於某些交易剛剛從 6 月推遲到 9 月季度的事情。你能就交易規模或你看到這種情況發生的垂直領域給出任何意義嗎？我想如果你沒有任何這些問題，六月季度的收入會是什麼樣子？

I don't know if there was a common -- well, first of all, large deals for us, it would be $1 million, right? They're not $10 million, $20 million or $30 million deals. So you're probably looking at some number of those transactions that moved. I don't know that there was a common theme in terms of verticals, if you will. I do think that it was a bit more of a challenge in the U.S. than it was in other geographies on that close rate for the last week of the month -- or the last week of the quarter.

我不知道是否有一個共同點——好吧，首先，對我們來說是大筆交易，那就是 100 萬美元，對嗎？它們不是 1000 萬美元、2000 萬美元或 3000 萬美元的交易。所以你可能正在查看一些移動的交易。如果你願意的話，我不知道在垂直方面有一個共同的主題。我確實認為，在本月最後一周或本季度最後一周的收盤價方面，與其他地區相比，美國面臨的挑戰更大。

Got it. And I guess, last quarter on this one, you've talked some amount about perhaps using your financial strength as a way to essentially accelerate your share gains. Could you just touch on what impact would that have in your free cash flow or even your margins perhaps? Just want a sense -- just trying to get a sense of how much are you willing to flex your model? And what sort of share gain aspirations would you have from these dynamics that you would take on?

知道了。我想，在上個季度，您已經談到了一些關於可能利用您的財務實力從根本上加速您的股票收益的方式。您能否談談這對您的自由現金流甚至您的利潤率有什麼影響？只是想了解一下——只是想了解一下您願意在多大程度上調整您的模型？您希望從這些動態中獲得什麼樣的份額？

Yes. There's probably 3 places that you could see. One is looking at the inventory because we're -- in this environment, we'd like to keep a little more inventory on hand. And so when you look at the inventory turns, I think the number was 2.2 in the quarter, and that's probably down about 1. And so you can do some math there and quantify it.

是的。您可能會看到 3 個地方。一個是查看庫存，因為我們 - 在這種環境下，我們希望手頭有更多的庫存。因此，當您查看庫存周轉率時，我認為本季度的數字為 2.2，並且可能下降了約 1。因此您可以在那裡進行一些數學運算並對其進行量化。

You can also look -- the second place you would see it is on the extended payment terms. We provide the metric of what our contractual payment terms were as of at the end of the quarter, which I think was 67 days, and that's up 17%.

你也可以看看——你會看到的第二個地方是在延長的付款條件上。我們提供了截至本季度末我們的合同付款期限的指標，我認為是 67 天，而且增加了 17%。

The third place that we can flex a little bit is on discounting, and I kind of covered that a moment ago. That while discounting in the current economic environment is a fact of life, and we did have a slight increase in discounting, for us, it was outweighed by the structural difference in our cost structure, which more than outweigh it.

我們可以稍微調整的第三個地方是打折，我剛才談到了這一點。雖然在當前的經濟環境下打折是一個不爭的事實，而且我們的打折確實略有增加，但對我們來說，它被我們成本結構中的結構性差異所抵消，這超過了它。

So in terms of flexing our balance sheet and looking at the cash flow model, if you will, I think the key place for inventory and then looking at the collections.

因此，就調整我們的資產負債表和查看現金流模型而言，如果你願意的話，我認為庫存的關鍵位置然後查看收藏。

And just one correction on the contractual payment terms, it was 62 days.

只需對合同付款條款進行一次更正，即 62 天。

I'm sorry. I'm happy. I'm happy it's only 62.

對不起。我很高興。我很高興它只有 62。

And this does conclude today's question-and-answer session. I would now like to turn the call back to Peter Salkowski for closing remarks.

這確實結束了今天的問答環節。我現在想將電話轉回給 Peter Salkowski 以作結束語。

Thank you, Chris. I'd like to thank everyone for joining on today's call. Fortinet will be attending the following virtual investor conferences during the third quarter. We'll be doing the Oppenheimer conference next week on August 11; the Citibank conference on September 9; and the Colliers Securities conference on September 10. Event presentations will be webcast and links from these webcasts will be available on the Investor Relations website of the Fortinet IR site. If there are any follow-up questions, please feel free to contact me. Have a great rest of your day. Thank you very much. Have a good day. Take care. Bye-bye.

謝謝你，克里斯。我要感謝大家參加今天的電話會議。 Fortinet 將在第三季度參加以下虛擬投資者會議。我們將在下週 8 月 11 日舉行奧本海默會議； 9月9日花旗銀行會議；以及 9 月 10 日的 Colliers Securities 會議。活動演示將進行網絡廣播，這些網絡廣播的鏈接將在 Fortinet IR 網站的投資者關係網站上提供。如果有任何後續問題，請隨時與我聯繫。祝您度過愉快的一天。非常感謝。祝你有美好的一天。小心。再見。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。