Fortinet Inc (FTNT) 2020 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Fortinet First Quarter Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions) I would now like to hand the conference over to your speaker today. Thank you. Peter Salkowski, Vice President, Investor Relations, please go ahead, sir.

女士們，先生們，感謝你們的支持，歡迎來到 Fortinet 第一季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。 （操作員說明）我現在想將會議移交給您今天的發言人。謝謝。先生，投資者關係副總裁 Peter Salkowski，請繼續。

Thank you, Michelle. Good afternoon, everyone. This is Peter Salkowski, Vice President of Investor Relations at Fortinet. I am pleased to welcome everyone to our call to discuss Fortinet's financial results for the first quarter of 2020. Speakers on today's call are Ken Xie, Fortinet's Founder, Chairman and CEO; and Keith Jensen, our Chief Financial Officer. This is a live call that will be available for replay via webcast on our Investor Relations website. Ken will begin our call today by providing a high-level perspective on our business. Keith will then review our financial and operating results for the first quarter, provide some additional details regarding our first quarter performance and some insights into how April performed and provide our guidance for the second quarter of 2020 before opening the call for questions.

謝謝你，米歇爾。大家下午好。我是 Peter Salkowski，Fortinet 投資者關係副總裁。我很高興地歡迎大家參加我們的電話會議，討論 Fortinet 2020 年第一季度的財務業績。今天電話會議的發言人是 Fortinet 的創始人、董事長兼首席執行官 Ken Xie；以及我們的首席財務官 Keith Jensen。這是一個現場通話，可以通過我們的投資者關係網站上的網絡直播進行重播。 Ken 將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 將審查我們第一季度的財務和運營結果，提供有關我們第一季度業績的一些額外細節以及對 4 月份業績的一些見解，並在開始提問之前提供我們對 2020 年第二季度的指導。

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

在問答環節中，我們要求您的問題保持簡短，並限制自己只回答一個問題和一個後續問題，以便其他人參與。

Before we begin, I'd like to remind everyone that on today's call, we will be making forward-looking statements, and these forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected. Please refer to our SEC filings, in particular, the risk factors in our most recent Form 10-K and Form 10-Q for more information. All forward-looking statements reflect our opinions only as of the date of this presentation, and we undertake no obligation and specifically disclaim any obligation to update forward-looking statements.

在我們開始之前，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。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. I would like to now turn the call over to Ken.

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 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。我現在想把電話轉給肯。

Thank you, Peter, and thank you to everyone for joining today's call to review our first quarter 2020 results. I would like to thank our employees, customers, partners, suppliers worldwide for their commitment to manage our response to the COVID-19 pandemic.

謝謝彼得，也感謝大家參加今天的電話會議，回顧我們 2020 年第一季度的業績。我要感謝我們全球的員工、客戶、合作夥伴和供應商，感謝他們致力於管理我們對 COVID-19 大流行的反應。

We are very pleased with our strong first quarter performance. Billings increased 21% to $668 million, driven by solid execution and growth across all 3 major regions. Revenue increased 22% to $577 million. The solid performance of our core firewall, Security Fabric, SD-WAN, an ultra home solution resulting in an 18% increase in product revenue and a 24% increase in service revenue.

我們對第一季度的強勁表現感到非常滿意。在所有 3 個主要地區穩健的執行和增長的推動下，比林斯增長了 21% 至 6.68 億美元。收入增長 22% 至 5.77 億美元。我們的核心防火牆、Security Fabric、SD-WAN 和超級家庭解決方案的穩定性能使產品收入增長了 18%，服務收入增長了 24%。

Shipment of FortiGate unit increased 30% in the first quarter driven by our home secure VPN and secure SD-WAN product built with our ASIC-powered appliance. In addition, demand for broad, integrated, automated Security Fabric platform, especially the FortiClient, FortiAuthenticator and FortiToken was very strong. Our ability to directly manage our supply chain and shipping logistics allowed us to quickly adjust to the current dynamic environment. Today, Fortinet released a 4200F, another milestone in our ability to deliver the industry's highest performance and the most cost-efficient security solution on the market. Powered by the new NP7, the 4200F is engineered to meet scale and performance demand of today's enterprise and service provider companies. With 10x the VPN performance of our competitors, its ability to scale teleworker solution will be a key competitive advantage for Fortinet as enterprise looks for cost-efficient way to support our large remote work force.

FortiGate 設備的出貨量在第一季度增長了 30%，這得益於我們的家庭安全 VPN 和使用我們的 ASIC 驅動設備構建的安全 SD-WAN 產品。此外，對廣泛、集成、自動化的 Security Fabric 平台的需求非常強勁，尤其是 FortiClient、FortiAuthenticator 和 FortiToken。我們直接管理供應鍊和航運物流的能力使我們能夠快速適應當前的動態環境。今天，Fortinet 發布了 4200F，這是我們在市場上提供業界最高性能和最具成本效益的安全解決方案能力的又一個里程碑。 4200F 由新的 NP7 提供支持，旨在滿足當今企業和服務提供商公司的規模和性能需求。憑藉 10 倍於我們競爭對手的 VPN 性能，它擴展遠程工作人員解決方案的能力將成為 Fortinet 的一個關鍵競爭優勢，因為企業正在尋找具有成本效益的方式來支持我們龐大的遠程工作人員。

During the quarter, we released FortiOS 6.4, with over 350 new features, including new automation, stability, performance and AI capability, providing full protection across entire digital infrastructure. Included in the FortiOS 6.4 are several enhancements to our secure SD-WAN offerings. Fortinet is one of the fastest-growing SD-WAN providers and the only major player in this market with the internally developed offering that provides security and SD-WAN networking in a single solution. We believe we'll continue to gain SD-WAN market share in 2020.

本季度，我們發布了 FortiOS 6.4，具有 350 多項新功能，包括新的自動化、穩定性、性能和 AI 功能，為整個數字基礎設施提供全面保護。 FortiOS 6.4 中包含對我們安全的 SD-WAN 產品的多項增強。 Fortinet 是增長最快的 SD-WAN 提供商之一，也是該市場中唯一一家擁有內部開發產品的主要參與者，該產品在單一解決方案中提供安全性和 SD-WAN 網絡。我們相信我們將在 2020 年繼續獲得 SD-WAN 市場份額。

Fortinet is an important strategic partner, especially as company looks to efficiently deploy their security budget. Our industry validated work from home and secure SD-WAN offering, along with our SPU-driven FortiGate, secured fiber platform and hybrid cloud offering provide the best security with the most cost-efficient solution for companies across their entire digital infrastructure. I would now like to turn the call over to Keith for a closer look at our first quarter performance and our guidance.

Fortinet 是一個重要的戰略合作夥伴，尤其是當公司希望有效部署其安全預算時。我們經過行業驗證的居家工作和安全 SD-WAN 產品，以及我們的 SPU 驅動的 FortiGate、安全光纖平台和混合雲產品，為公司在其整個數字基礎設施中提供最佳安全性和最具成本效益的解決方案。我現在想把電話轉給基思，以便更仔細地了解我們第一季度的業績和我們的指導。

Thank you, Ken. Let me first note, I would like to join Ken in wholeheartedly thanking our employees and their families and our customers, partners and suppliers for their outstanding support in managing our response to the COVID-19 pandemic.

謝謝你，肯。首先，我想和 Ken 一起衷心感謝我們的員工及其家人以及我們的客戶、合作夥伴和供應商，感謝他們在管理我們應對 COVID-19 大流行病方面的出色支持。

With that in mind, let's start the first quarter review with revenue. Total revenue of $577 million was up 22%. The fabric and cloud segment revenue growth was over 24%, and FortiGate network security revenue growth was 21%. Both our Fabric and FortiGate network security segments growth continue to benefit from our secure SD-WAN solutions.

考慮到這一點，讓我們從收入開始第一季度審查。總收入為 5.77 億美元，增長 22%。架構和雲部門收入增長超過 24%，FortiGate 網絡安全收入增長 21%。我們的 Fabric 和 FortiGate 網絡安全部門的增長繼續受益於我們安全的 SD-WAN 解決方案。

The strong first quarter revenue growth, once again, illustrates the benefit of our diversification across geographies, customer segments and industry verticals. The momentum our business has experienced is the result of our strategic internal investments made to broaden our product offerings, penetrate adjacent security markets, expand our global sales force and invest in our channel partners.

第一季度強勁的收入增長再次說明了我們在地域、客戶群和行業垂直領域多元化的好處。我們業務的發展勢頭是我們戰略性內部投資的結果，這些投資旨在擴大我們的產品供應、滲透鄰近的安全市場、擴大我們的全球銷售隊伍並投資於我們的渠道合作夥伴。

Product revenue grew 18% to $192 million, benefiting from strong demand for our FortiGate appliances, secure SD-WAN offering, integrated fabric platform appliance and software solutions as well as our embedded and stand-alone work from home security solutions. 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 18% 至 1.92 億美元，這得益於對我們的 FortiGate 設備、安全 SD-WAN 產品、集成結構平台設備和軟件解決方案以及我們的嵌入式和獨立家庭安全解決方案的強勁需求。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 24% to $385 million, representing 67% of total revenue. Over 90% of service revenue was from deferred revenue at the beginning of the quarter and continues to provide an increased level of revenue predictability. FortiGuard security subscription revenue increased 25% to $211 million. FortiCare technical support and other service revenue increased 23% to $173 million. The mix shift from 8x5 to our higher-priced 24/7 support was 6 points, and 24/7 support now represents just over 60% of this mix.

轉向服務收入。服務收入增長 24% 至 3.85 億美元，佔總收入的 67%。超過 90% 的服務收入來自本季度初的遞延收入，並繼續提供更高水平的收入可預測性。 FortiGuard 安全訂閱收入增長 25% 至 2.11 億美元。 FortiCare 技術支持和其他服務收入增長 23% 至 1.73 億美元。從 8x5 到價格更高的 24/7 支持的組合轉變為 6 個點，現在 24/7 支持佔該組合的 60% 以上。

Let's shift to billings. Total billings increased 21% to $668 million. FortiGate network security billings increased 21% and accounted for 75% of total billings. Fabric and cloud billings combined increased 32%, driven by our secure access and our work-from-home-related offerings, including FortiToken, FortiAuthenticator and FortiClient. Once again, the diversification of our business model by industry vertical was on display in the first quarter, with our top 5 verticals continuing to account for about 2/3 of our total billings.

讓我們轉到比林斯。總賬單增長 21% 至 6.68 億美元。 FortiGate 網絡安全賬單增長了 21%，佔總賬單的 75%。在我們的安全訪問和我們在家工作相關的產品（包括 FortiToken、FortiAuthenticator 和 FortiClient）的推動下，Fabric 和雲賬單合計增長了 32%。第一季度，我們的垂直行業商業模式再次呈現多樣化，我們的前 5 大垂直行業繼續占我們總收入的 2/3 左右。

Service providers and MSSPs, which we believe serve a large portion of the SMB market, topped all verticals with 19% of total billings, representing its highest percent of total billings in 5 quarters. Financial Services had a very strong quarter with billings growth of over 40% and represented 14% of total billings. At the end of the first quarter, total deferred revenue increased 26% to $2.2 billion. Short-term deferred revenue increased 24% to $1.2 billion.

我們認為服務於 SMB 市場很大一部分的服務提供商和 MSSP 以 19% 的總賬單位居所有垂直行業之首，佔總賬單的百分比是 5 個季度以來的最高水平。金融服務有一個非常強勁的季度，賬單增長超過 40%，佔總賬單的 14%。第一季度末，總遞延收入增長 26% 至 22 億美元。短期遞延收入增長 24% 至 12 億美元。

Looking at deals by dollar size. For deals over $250,000 and $500,000, the billings value increased 22% and 20%, respectively. The dollar value of deals over $1 million increased 27%, illustrating our continued ability to move upmarket into the enterprise segment.

按美元大小查看交易。對於超過 250,000 美元和 500,000 美元的交易，賬單價值分別增加了 22% 和 20%。超過 100 萬美元的交易的美元價值增長了 27%，說明我們繼續向高端市場進軍企業市場的能力。

Moving back to the income statement. As shown on Slide 4, gross margin improved 150 basis points to 78.7%. Product gross margin improved 300 basis points to 61.4%. Product gross margin benefited from over 40% growth in software products and lower indirect costs. Services gross margin increased 30 basis points to 87.4%. Operating margin for the first quarter increased 190 basis points to 22.3%, benefiting from the improvement in gross margin and lower employee travel expenses related to the shift towards work from home.

回到損益表。如幻燈片 4 所示，毛利率提高 150 個基點至 78.7%。產品毛利率提高 300 個基點至 61.4%。產品毛利率受益於軟件產品超過 40% 的增長和較低的間接成本。服務毛利率增長 30 個基點至 87.4%。第一季度的營業利潤率增長了 190 個基點，達到 22.3%，這得益於毛利率的提高以及與在家辦公相關的員工差旅費用的減少。

During the quarter, we entered into a 7-year mutual covenant not to sue agreement with a competitor related to our patent portfolio in return for a $50 million cash payment to Fortinet.

在本季度，我們簽訂了一項為期 7 年的共同契約，不與與我們的專利組合相關的競爭對手起訴協議，以換取向 Fortinet 支付 5000 萬美元的現金。

We recognized a gain, a GAAP gain, of $36.8 million as a credit to operating expenses, and we'll recognize the remainder over the term of the agreement. We have excluded the $50 million cash received from our free cash flow and the $36.8 million gain from our non-GAAP margins and other results.

我們確認了 3680 萬美元的收益，即 GAAP 收益，作為營業費用的貸方，我們將在協議期限內確認剩餘部分。我們已經排除了從我們的自由現金流中收到的 5000 萬美元現金以及從我們的非 GAAP 利潤和其他結果中獲得的 3680 萬美元收益。

Total head count ended the quarter at 7,448, an increase of 24%, driven by increased investments we made to leverage the positive momentum in our business while seeing improving attrition rates over the last few quarters. We do not anticipate any COVID-19 related layoffs for the foreseeable future.

本季度末總人數為 7,448 人，增長 24%，這是由於我們增加了投資以利用我們業務的積極勢頭，同時看到過去幾個季度的人員流失率有所改善。在可預見的未來，我們預計不會出現任何與 COVID-19 相關的裁員。

Given our strong operating income performance, net income for the first quarter was $104.4 million. Our earnings per diluted share increased $0.14 to $0.60 per diluted share. On a GAAP basis, we reported net income of $104 million or $0.60 per diluted share. Excluding the patent-related gain noted above, GAAP earnings per share would have been $0.44 or an increase of 29%.

鑑於我們強勁的營業收入表現，第一季度的淨收入為 1.044 億美元。我們的攤薄後每股收益增加 0.14 美元至 0.60 美元。根據 GAAP，我們報告的淨收入為 1.04 億美元或每股攤薄收益 0.60 美元。排除上述與專利相關的收益，GAAP 每股收益為 0.44 美元或增長 29%。

Moving to the statement of cash flow summarized on Slide 7 and 8. Free cash flow increased 27% to $242 million. Due to the shelter-in-place orders, construction was halted on the new campus building in mid-March and resumed this week. Capital expenditures for the first quarter were $28 million, including $20 million related to construction and other real estate activity. We estimate capital expenditures for the second quarter to between $40 million and $50 million and for all of 2020 to between $200 million and $220 million. We expect full year cash taxes to be approximately $40 million and our full year non-GAAP tax rate to be 22%.

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 27% 至 2.42 億美元。由於就地避難令，新校園建築的施工於 3 月中旬停止，並於本週恢復。第一季度的資本支出為 2800 萬美元，其中包括與建築和其他房地產活動相關的 2000 萬美元。我們估計第二季度的資本支出在 4000 萬至 5000 萬美元之間，2020 年全年的資本支出在 2 億至 2.2 億美元之間。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 first quarter, we utilized a portion of our cash and investments to repurchase approximately 10 million shares of our common stock for an aggregate purchase price of approximately $900 million. At the end of the first quarter, the remaining share buyback authorization was $693 million.

第一季度，我們利用部分現金和投資回購了約 1000 萬股普通股，總購買價格約為 9 億美元。第一季度末，剩餘的股票回購授權為6.93億美元。

In light of the buyback activity, together with the lower interest rate environment, let me offer 2 modeling insights. First, the full year share count should be 10 million shares lower than previously guided. Second, interest income will likely be insignificant for the remainder of 2020.

鑑於回購活動以及較低的利率環境，讓我提供 2 個建模見解。首先，全年的股票數量應該比之前的指引少 1000 萬股。其次，在 2020 年剩餘時間裡，利息收入可能微不足道。

Before moving to guidance, we wanted to offer some thoughts in 2 areas related to COVID-19, including steps that we have taken to contribute and certain observations about our business in Q1 and early Q2. First, in response to the pandemic, we've taken a number of steps, including: one, substantially increasing our employee charitable match program for COVID-19-related donations to a total of $2 million; and secondly, expanding our free to the public network security expert program or what we call NSE. Last week, we further expanded the free NSE program from the first 3 levels to all 8 levels. NSE is a self-paced online security training and certification program. By making this program free and more advanced, we hope to narrow the shortage of security skilled workers around the world and position people to emerge from COVID-19 with new and very marketable skills. In the first week, we had over 50,000 registrations from over 5,000 different organizations.

在轉向指導之前，我們想在與 COVID-19 相關的兩個領域提供一些想法，包括我們已採取的貢獻步驟以及對我們在第一季度和第二季度初的業務的某些觀察。首先，為應對這一流行病，我們採取了多項措施，包括：第一，大幅增加我們的員工慈善配捐計劃，用於與 COVID-19 相關的捐款，總額達到 200 萬美元；其次，將我們的免費擴展到公共網絡安全專家計劃或我們所說的 NSE。上週，我們進一步將免費 NSE 計劃從前 3 個級別擴展到所有 8 個級別。 NSE 是一個自定進度的在線安全培訓和認證計劃。通過使該計劃免費且更先進，我們希望縮小世界範圍內安全技術工人的短缺，並使人們能夠從 COVID-19 中脫穎而出，掌握新的和非常適合市場的技能。在第一周，我們收到了來自 5,000 多個不同組織的 50,000 多個註冊。

I'd now like to share some observations about our business in Q1 and early Q2. We don't anticipate that these observations will continue in future quarters. However, in light of COVID-19, we thought they might be helpful and informative.

我現在想分享一些關於我們在第一季度和第二季度初的業務的觀察。我們預計這些觀察結果不會在未來幾個季度繼續存在。但是，鑑於 COVID-19，我們認為它們可能會有所幫助並提供信息。

Looking at linearity. Monthly linearity for the first quarter was consistent with prior quarters at around 50% through the first 2 months. While March linearity was typical, we did see an elevated level of buying during the middle 2 weeks of the month. As for April linearity, it was slightly better than our first month performance for any second quarter in the last 3 years.

看線性。第一季度的月度線性與前兩個月的 50% 左右保持一致。雖然 3 月份的線性是典型的，但我們確實看到在該月的中間 2 週內購買量有所增加。至於 4 月份的線性度，它略好於過去 3 年任何第二季度的第一個月表現。

Turning to contract length and payment terms. In Q1, the average contract length remained flat at 25 months year-over-year and average contractual payment terms increased but less than 15%. In terms of supply chain concerns, our product backlog was in line with historical averages and our suppliers delivered over 90% of their commitment to us.

轉向合同期限和付款條件。第一季度，平均合同期限與去年同期持平，為 25 個月，平均合同付款期限增加但不到 15%。在供應鏈方面，我們的產品積壓符合歷史平均水平，我們的供應商交付了他們對我們的承諾的 90% 以上。

To offer some context on the puts and takes in Q1 billings, 3 of our fabric platform products, FortiToken, FortiAuthenticator and FortiClient, benefited from their increased value in securing organizations employees in the shift towards work from home. Combined billings for these 3 products were about $10 million above expectations. In April, we saw these billings again significantly outperform expectations.

為了提供一些關於第一季度賬單的背景信息，我們的 3 種結構平台產品 FortiToken、FortiAuthenticator 和 FortiClient 受益於它們在確保員工轉向在家工作的過程中增加的價值。這 3 種產品的綜合賬單比預期高出約 1000 萬美元。 4 月，我們再次看到這些賬單明顯超出預期。

Looking at channel inventory. The total balance was flat quarter-over-quarter and up slightly year-over-year, which may relate to a small level of early buying by our customers. Regarding SD-WAN solutions, secure SD-WAN billings for the quarter were a high single-digit percentage of total billings. April billings continued this trend and the Q2 pipeline for secure SD-WAN is strong.

查看渠道庫存。總餘額環比持平，同比略有上升，這可能與我們客戶的少量早期購買有關。關於 SD-WAN 解決方案，本季度安全 SD-WAN 賬單佔總賬單的比例很高。 4 月份的賬單延續了這一趨勢，安全 SD-WAN 的第二季度管道很強勁。

And then looking to customer segments, our G2000 billings increased 25%. SMB billings as a percentage of total billings increased slightly. Renewal rates remained within the guardrails that we provided at the Analyst Day. And as a percentage of total billings, the worldwide retail segment remains 1 of our top 5 verticals, and as a percentage of total billings, remained unchanged year-over-year. As our performance indicates, we did not see a material impact due to COVID-19 for the first quarter, and the second quarter is starting well. That said, there's a lot of uncertainty about future economic conditions.

然後看客戶群，我們的 G2000 賬單增長了 25%。 SMB 賬單佔總賬單的百分比略有上升。續訂率保持在我們在分析師日提供的範圍內。就總賬單的百分比而言，全球零售部門仍然是我們排名前 5 位的垂直行業之一，並且佔總賬單的百分比同比保持不變。正如我們的表現所表明的那樣，第一季度我們沒有看到 COVID-19 造成的實質性影響，第二季度開局良好。也就是說，未來的經濟狀況存在很多不確定性。

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

最後，我想回顧一下幻燈片 9 中總結的我們對第二季度的展望，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。

For the second quarter, we expect billings in the range of $700 million to $725 million; revenue in the range of $590 million to $605 million; non-GAAP gross margin was 77.5% to 78.5%; non-GAAP operating margin of 23% to 24%; non-GAAP earnings per share of $0.64 to $0.66, which assumes a share count of between $165 million and $167 million. We expect a non-GAAP tax rate of 22%. For 2020, due to the increased uncertainty associated with the economic impact from COVID-19, we believe the prudent thing to do is to withdraw our previously issued full year guidance.

對於第二季度，我們預計賬單在 7 億至 7.25 億美元之間；收入在 5.9 億美元至 6.05 億美元之間；非美國通用會計準則毛利率為 77.5% 至 78.5%；非美國通用會計準則營業利潤率為 23% 至 24%；非 GAAP 每股收益為 0.64 美元至 0.66 美元，假設股票數量在 1.65 億美元至 1.67 億美元之間。我們預計非 GAAP 稅率為 22%。對於 2020 年，由於與 COVID-19 的經濟影響相關的不確定性增加，我們認為謹慎的做法是撤回我們之前發布的全年指導。

Along with Ken, I would like to thank our partners, customers and the Fortinet team for all their support and hard work during these difficult and unique times. Lastly, I also would like to invite all of you to listen to the management keynote presentations at our virtual accelerate being held on May 12. You can contact Peter for a registration link. And with that, I'll hand the call back over to Peter.

我要與 Ken 一起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。最後，我還想邀請大家在 5 月 12 日舉行的虛擬加速上聽取管理主題演講。您可以聯繫 Peter 獲取註冊鏈接。有了這個，我會把電話轉回給彼得。

Thank you, Keith. Michelle, we're ready to do the Q&A. If you can open up the lines for questions, please.

謝謝你，基思。米歇爾，我們準備好進行問答了。請打開問題熱線。

(Operator Instructions) And your first question comes from Sterling Auty from JPMorgan.

（操作員說明）您的第一個問題來自摩根大通的 Sterling Auty。

You mentioned that the June quarter -- so April is off to a fast start. Wondering, are you seeing the same products in high demand in April that you did in March? And do you think that, that demand actually can continue perhaps into the back half? Or is this a temporary lift that you're seeing?

你提到了 6 月這個季度——所以 4 月是一個快速的開始。想知道，您是否看到 4 月份與 3 月份的產品需求量相同？你認為這種需求實際上可以持續到下半年嗎？或者這是您看到的臨時提升？

I think, yes, pretty similar. Like we mentioned, we do see the fabric continue, especially work for home related. Some are low end and also like FortiClient, FortiAuthenticator, FortiToken, still very strong. But overall, I think it's the same. And also the new product we introduced both in last quarter, the 1800F and also introduced the 4200F, seeing a very strong interest. Yes, I think so far, we see pretty similar demand.

我認為，是的，非常相似。就像我們提到的那樣，我們確實看到面料繼續存在，尤其是與家庭相關的工作。有些是低端的，也像 FortiClient、FortiAuthenticator、FortiToken，仍然非常強大。但總的來說，我認為是一樣的。還有我們在上個季度推出的新產品 1800F 和 4200F，看到了非常強烈的興趣。是的，我認為到目前為止，我們看到的需求非常相似。

Yes, Sterling, I'd probably frame a response to add on to what Ken said by saying, obviously, we gave some insights in terms of what we were seeing in April. And as part of the guidance setting process, you would obviously normally look at what's your month 1 activity, what does your pipeline look for month 2 and what does your pipeline look like in month 3. So I think you can assume that we look at those factors as part of setting the guidance for the second quarter.

是的，Sterling，我可能會做出回應以補充 Ken 所說的話，顯然，我們就 4 月份的情況給出了一些見解。作為指南設置過程的一部分，您顯然通常會查看第 1 個月的活動、第 2 個月的管道情況以及第 3 個月的管道情況。所以我認為您可以假設我們會查看這些因素是為第二季度製定指導方針的一部分。

Yes. Also, a lot of feedback is really because all products have good reputation. It's very cost efficient. Like the new one we announced and also the last few quarters, so have average VPN performance 10x faster or have more capability compared to any other competitor. So we're using the secure company region. So that's actually a lot of company -- a lot of enterprise, they used to have a work from home population probably less than 10%, now they jump to over 90%. So that's a huge demand for both headquarter, for office and also for some other work from home solutions. So that's where VPNs are very, very critical for all these enterprise. So we see a lot of the -- not a need from a customer required solution compared to some other competitors.

是的。另外，很多反饋確實是因為所有產品都有良好的聲譽。這是非常划算的。與我們宣布的新產品以及過去幾個季度一樣，與任何其他競爭對手相比，VPN 的平均性能快 10 倍或具有更多功能。所以我們正在使用安全的公司區域。所以這實際上是很多公司——很多企業，他們過去在家工作的人口可能不到 10%，現在他們躍升至 90% 以上。因此，這對總部、辦公室以及其他一些在家工作的解決方案都有巨大的需求。所以這就是 VPN 對所有這些企業非常非常重要的地方。因此，與其他一些競爭對手相比，我們看到了很多 - 不是客戶所需解決方案的需求。

That makes sense. And then the one follow-up would be, you mentioned 19% of revenue from the MSSP channel. I think investors are always worried about that SMB exposure. Can you give us a sense of what you saw in terms of renewal rates in March and April as well as just the demand pipeline from that segment?

這就說得通了。然後一個後續行動是，你提到 19% 的收入來自 MSSP 渠道。我認為投資者總是擔心 SMB 風險敞口。您能告訴我們您在 3 月和 4 月的續訂率以及該細分市場的需求管道方面看到了什麼嗎？

Not actually. It's a very interesting area. We're also kind of a little bit surprised. Our overall SMB as a percentage of our business actually increased 1% to 2%, and that's where they grow faster than average. So we kind of did some research. Probably there's 2, 3 reasons. The first, whether the SMB or the work from home using network security as an endpoint seeing very, very low percentage, probably average only about like 5% or even low single digit. So it's a very small percentage SMB work from home as a network security solution. So that's where they may take this kind of opportunity to starting to kind of implement more work from home SMB solution.

並不是。這是一個非常有趣的領域。我們也有點驚訝。我們的總體 SMB 在我們業務中所佔的百分比實際上增加了 1% 到 2%，這就是他們增長速度超過平均水平的地方。所以我們做了一些研究。大概有2、3個原因。首先，無論是 SMB 還是在家工作，使用網絡安全作為端點的百分比都非常非常低，可能平均只有 5% 左右甚至低個位數。因此，作為網絡安全解決方案，在家工作的 SMB 所佔比例非常小。因此，他們可能會藉此機會開始實施更多在家 SMB 解決方案的工作。

The second one, we also believe whether -- because SD-WAN or some other solution combined with both SD-WAN and WiFi can also save a lot of cost, so more cost efficient. So that's where probably also the chance for customers to also using the new product. And the third one, we do believe, if you look at last few quarters, we refreshed the low end first with all the F model. So from like an 80F first almost 3 quarters ago, then 60F and the 40F we announced. It's all helping driving the SMB or work from home solutions. So maybe these 2, 3 factors contribute SMB actually even grow faster than average.

第二個，我們也相信——因為 SD-WAN 或其他結合 SD-WAN 和 WiFi 的解決方案也可以節省大量成本，因此更具成本效益。因此，這也可能是客戶也有機會使用新產品的地方。第三個，我們確實相信，如果你看過去幾個季度，我們首先用所有 F 模型刷新了低端。因此，大約 3 個季度前，首先是 80F，然後是 60F 和我們宣布的 40F。這一切都有助於推動 SMB 或在家工作的解決方案。因此，也許這 2、3 個因素實際上使 SMB 的增長速度超過平均水平。

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

你的下一個問題來自瑞銀的 Fatima Boolani。

Ken, maybe to start with you, just on the SD-WAN momentum you're seeing. I think there's some confusion around how SD-WAN conflicts or is accretive to your branch office business. I'm wondering if you can just give us a sense of how SD-WAN is accretive to the overall branch footprint that you have. And as you think about the next 12 to 24 months, as branch office architectures do change, how do you think that would impact the lower-end SKUs you have in your portfolio? And then I have a follow-up for Keith.

肯，也許從你開始，就你所看到的 SD-WAN 勢頭而言。我認為關於 SD-WAN 如何衝突或增加您的分支機構業務存在一些混淆。我想知道您是否可以讓我們了解 SD-WAN 如何增加您擁有的整體分支機構足跡。當您考慮未來 12 到 24 個月時，隨著分支機構架構的變化，您認為這將如何影響您產品組合中的低端 SKU？然後我要跟進 Keith 的情況。

Yes. And like I said in the script, so we are the only company internally developed SD-WAN and also built with security from very beginning. So it's very cost-efficient and also combine multiple function together. So that's where the customers see a lot of value. And at the same time, like I said, somehow, SMB or some other work from home still a low percentage of that may also help in because the overall SD-WAN is still -- like a relatively small market and grow very, very fast. So we already become a top 3 and also grow the farthest one.

是的。就像我在腳本中所說的那樣，我們是唯一一家內部開發 SD-WAN 並且從一開始就構建安全性的公司。所以它非常具有成本效益，並且還將多種功能結合在一起。這就是客戶看到很多價值的地方。同時，就像我說的，不知何故，SMB 或其他在家工作的比例仍然很低，這也可能有所幫助，因為整個 SD-WAN 仍然是一個相對較小的市場，並且增長非常非常快.所以我們已經成為前三名，也是發展最遠的一個。

And then also, it's a little bit different offer than the other. And probably the only SD-WAN function, but we do company security with a lot of other functions inside our offering. At the same time, performance is much better because our own ASIC has a huge computing power advantage, handle multiple function at the same time. I think, overall, these all contribute both SMB, and also like the FortiGate unit shipment grow 30%. That's also the highest one we see in the last few years. That's also probably whether contribute to SD-WAN or contribute to work from home or SMB, it's pretty interesting, and we still continue to see that in April.

而且，它的報價與另一個略有不同。並且可能是唯一的 SD-WAN 功能，但我們通過我們產品中的許多其他功能來實現公司安全。同時，由於我們自己的ASIC具有巨大的計算能力優勢，可以同時處理多種功能，因此性能要好得多。我認為，總的來說，這些都有助於 SMB 和 FortiGate 單位出貨量增長 30%。這也是我們在過去幾年中看到的最高水平。這也可能是為 SD-WAN 做出貢獻，還是為在家工作或 SMB 做出貢獻，這非常有趣，我們仍然會在 4 月份繼續看到這一點。

And so we're still closely watching and also try to address any requirement from the customer to react quickly, both in SD-WAN and also for the SMB work from home solution. Like I said, because we develop internally our solution product, we can react much quicker compared with other competitors. They have to find a way to integrate, they have to, like they have different SD-WAN and the security, all the others. I think that does give us quite some advantage compared to other competitors.

因此，我們仍在密切關注並嘗試滿足客戶的任何要求，以便在 SD-WAN 和 SMB 在家工作解決方案中快速做出反應。就像我說的，因為我們在內部開發我們的解決方案產品，所以與其他競爭對手相比，我們可以更快地做出反應。他們必須找到一種集成方式，他們必須，就像他們擁有不同的 SD-WAN 和安全性一樣。我認為與其他競爭對手相比，這確實給了我們相當大的優勢。

That's super helpful. And Keith, just for you, appreciate that color on the shipment volume and shipment trends in the quarter and in April. I'm wondering if you can characterize for us how much of that is maybe pulled-forward activity. If you can contextualize that with the pipeline for the rest of the year. I just wanted to get a sense of if there was actually rush buying or any accelerated buying activity.

這非常有幫助。基思，只為你，欣賞本季度和四月份的出貨量和出貨趨勢的顏色。我想知道您是否可以為我們描述其中有多少可能是前瞻性活動。如果您可以將其與今年剩餘時間的管道聯繫起來。我只是想了解一下是否真的存在搶購或任何加速購買活動。

Yes. I think any quarter, you've got puts and takes and that's kind of why we titled that section that way. There's some things that come in that maybe weren't in your commit to begin with that you weren't expecting, and there are some things that push out. I don't think that the Q1 was really any different in any other way. And I think in terms of how we're looking at it in that regard, the purpose of providing some commentary about what we saw in April, which seemed to be contradictory to a thought that there was a bunch of pull-forward from Q2 into Q1 because April, we're happy with April.

是的。我認為任何一個季度，你都有投入和投入，這就是我們以這種方式命名該部分的原因。有一些事情可能不在您開始承諾的範圍內，您沒有預料到，還有一些事情會被推出。我不認為 Q1 在任何其他方面真的有任何不同。我認為就我們在這方面的看法而言，提供一些關於我們在 4 月份所見情況的評論的目的似乎與從第二季度到Q1 因為四月，我們對四月很滿意。

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

你的下一個問題來自 Brian Essex 和 Goldman Sachs 的對話。

Congratulations on the results. These are pretty challenging economic times. I guess the first question, maybe for Ken. If I heard that right, you had some pretty strong financial services billings growth. Can you maybe comment on growth by vertical, where you saw maybe better strength in the quarter versus maybe some weakness? And it also seemed as though you actually did pretty well, surprising at the mid and entry-level range of your product spectrum. Any change anticipated for the rest of the year in terms of product release-driven activity versus maybe what might be more near-term work from home-driven expansion type sales?

祝賀結果。現在是極具挑戰性的經濟時代。我想第一個問題，也許是給 Ken 的。如果我沒聽錯的話，你的金融服務賬單增長非常強勁。您能否按垂直方向評論增長，您看到本季度可能有更好的實力而不是一些弱點？而且看起來您實際上做得很好，在產品範圍的中級和入門級範圍內令人驚訝。在今年剩餘時間裡，產品發布驅動的活動與家庭驅動的擴張型銷售可能更近期的工作相比，預計會有什麼變化？

Yes. First, the vertical, probably Keith thinks I can help answer, is that we continue to see service provider starting pretty strong and probably the fast-growing in the last few quarters, even a few years. And also, the finance service, some governments actually also pretty strong. Retail, a little bit weak, but it's just a little bit. It's not as -- yes, I think it's still among the top 5. Enterprise is probably still pretty okay, like especially the big enterprise, we see growth faster than the overall growth, like grow 25% for the top 2,000 enterprise.

是的。首先，垂直，可能基思認為我可以幫助回答，是我們繼續看到服務提供商開始非常強勁，並且可能在過去幾個季度甚至幾年中快速增長。而且，金融服務，一些政府實際上也很強大。零售，有點疲軟，但也只是一點點。它不是——是的，我認為它仍然在前 5 名之列。企業可能還不錯，尤其是大企業，我們看到增長快於整體增長，比如前 2,000 家企業增長 25%。

I think going forward, we do see the new NP7 provide a lot of interest for big enterprise, especially work from home, they found out. Suddenly, the workload, especially VPN need almost 10x compared to before the pandemic. And a lot of competitor products cannot handle it anymore. So we get a lot of requests from this enterprise IT starting to see the advantage of our solution because we accelerated out the VPN using ASIC, which on average, 10x better performance. So that's actually -- before maybe they not need that much VPN, but now they suddenly say, oh that's a huge advantage which competitors cannot handle. So we see very strong demand, and that's where the product we released today, the 4200F and also last quarter, 1800F. And also the previous middle high end, we're also starting to see pretty strong growth now.

我認為展望未來，我們確實看到新的 NP7 為大企業帶來了很多興趣，尤其是他們發現的在家工作。突然間，工作量，尤其是 VPN 需要比大流行前增加近 10 倍。許多競爭對手的產品再也無法應對。因此，我們從該企業 IT 收到了很多請求，開始看到我們解決方案的優勢，因為我們使用 ASIC 加速了 VPN，平均性能提高了 10 倍。所以這實際上是 - 以前他們可能不需要那麼多 VPN，但現在他們突然說，哦，這是競爭對手無法處理的巨大優勢。所以我們看到非常強勁的需求，這就是我們今天發布的產品 4200F 以及上個季度的 1800F。還有以前的中高端，我們現在也開始看到相當強勁的增長。

Yes. I think Ken did a very good job recapping the verticals. Just to kind of put a little more color on it, I think the government vertical, which for us is largely international, state and local, performed very well. We didn't need to call it out in the script, but it was clearly in the top 3 MSSPs. We talked about financial services. We talked about, as Ken indicated, retail was flattish year-over-year in terms of, I guess, percentage of billings. Tech had a pretty good quarter as well, but not enough to get it in the top 5.

是的。我認為 Ken 在重述垂直領域方面做得很好。只是為了給它增添一點色彩，我認為垂直政府，對我們來說主要是國際、州和地方政府，表現非常好。我們不需要在腳本中調用它，但它顯然位於前 3 個 MSSP 中。我們談到了金融服務。我們談到，正如 Ken 所指出的那樣，就我猜的賬單百分比而言，零售業同比持平。 Tech 也有一個相當不錯的季度，但還不足以進入前 5 名。

Got it. That's helpful. Maybe if I could hit one more quick one on SD-WAN. I had a lot of questions this quarter from investors just concerned about potential branch office closures. Did you see any change in the deployment of -- within the branch office environment due to closures? Or maybe was it accelerated because of the closures and maybe better access to networks as a result? Maybe just a little quick color there would be helpful.

知道了。這很有幫助。也許如果我能在 SD-WAN 上再快一點。本季度我從投資者那裡收到了很多問題，他們只是擔心可能會關閉分支機構。您是否看到由於關閉而在分支機構環境中的部署發生任何變化？或者可能是因為關閉而加速了它，並且可能因此更好地訪問網絡？也許只是一點點快速的顏色會有幫助。

Yes. I think we have a deployment we call a zero-touch deployment, and probably some IT, they leverage this opportunity to upgrade some infrastructure, whether the branch office or -- we don't see slowdown. Actually, we even see it accelerate a little bit.

是的。我認為我們有一個我們稱之為零接觸部署的部署，可能還有一些 IT，他們利用這個機會升級一些基礎設施，無論是分支機構還是——我們沒有看到放緩。實際上，我們甚至看到它加速了一點。

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。

Congrats to you all for the strong momentum and being there for all your constituents during these crazy times. Ken, I've got another SD-WAN question for you. One of your competitors recently made an acquisition in the SD-WAN space with plans to leverage their technology in a thin branch architecture. Can you maybe just help us by comparing and contrasting your approach to SD-WAN and whether one solution is inherently more cost-effective or has more efficacy?

祝賀你們所有人在這些瘋狂時期保持強勁勢頭並為所有選民服務。肯，我有另一個 SD-WAN 問題要問你。您的一個競爭對手最近在 SD-WAN 領域進行了收購，併計劃在精簡分支架構中利用他們的技術。您能否通過比較和對比您的 SD-WAN 方法以及一種解決方案本質上是否更具成本效益或更有效來幫助我們？

Yes. We already spent like quite a long time developing SD-WAN, like 5 to 10 years. And also from very beginning, combine that with the security together, so you can use security to decide how SD-WAN function can be routed, right? So that's very different than all the other major competitor, whether in the networking side or in the security side. They have to come from acquisition, which they have a lot of limitation, whether on a performance or combined networking function, security function together. So that's the huge advantage we continue to enjoy. At the same time, all this function is also ASIC accelerated, which can -- gave a 10x performance boost and also much lower cost of ownership. So that's how we see the benefit kind of more and more.

是的。我們已經花了很長時間開發 SD-WAN，大概 5 到 10 年。而且從一開始就將其與安全性結合在一起，這樣您就可以使用安全性來決定如何路由 SD-WAN 功能，對嗎？因此，無論是在網絡方面還是在安全方面，這都與所有其他主要競爭對手截然不同。它們必須來自採集，這它們有很多局限性，無論是在性能上還是結合網絡功能、安全功能上。所以這是我們繼續享受的巨大優勢。同時，所有這些功能也是 ASIC 加速的，這可以 - 提供 10 倍的性能提升和更低的擁有成本。這就是我們如何看到越來越多的好處。

And on the other side, SD-WAN can be part of the total solution, whether the cloud or infrastructure or the other part. Combined security SD-WAN together definitely have a huge advantage, whether easy to deploy or easy to manage a single pack solution. And at the same time, we also balance among how the cloud and how the edge computing working together, but some function needs to be processed -- some function need to be processed in the cloud. That's also working well with a hybrid cloud approach. And also combined headquarter, the branch office, work from home, we found out is that not also the fabric keeping grow faster, and even a lot of product within the fabric are suddenly double, triple than the previous year -- previous quarter, like we mentioned about FortiClient, the FortiAuthenticator, the FortiToken is all related to the work from home products suddenly see a huge increase. And so the fabric approach also we benefit a lot from that.

另一方面，SD-WAN 可以成為整體解決方案的一部分，無論是雲、基礎設施還是其他部分。將安全的 SD-WAN 組合在一起絕對具有巨大的優勢，無論是易於部署還是易於管理的單一打包解決方案。同時，我們也在雲和邊緣計算如何協同工作之間取得平衡，但有些功能需要處理——有些功能需要在雲端處理。這也適用於混合雲方法。並且結合總部、分公司、在家工作，我們發現不僅面料保持更快的增長，甚至面料中的很多產品突然比上一年增長兩倍、三倍——上一季度，就像我們提到的 FortiClient、FortiAuthenticator、FortiToken 都是與在家工作相關的產品突然看到了巨大的增長。因此，結構方法也使我們從中受益匪淺。

That makes a lot of sense. And if I can just follow-up with you, Keith, how are you thinking about your hiring plans in light of the limited visibility you have? It actually seems like you're off to a pretty strong start in Q1.

這很有意義。如果我可以跟進你，基思，鑑於你的知名度有限，你如何考慮你的招聘計劃？實際上，您在第一季度的開局似乎非常強勁。

Yes. I think the hiring has been -- we talked about this in the context over the last couple of quarters, during the quarter, that within this balanced framework of profitability and growth that we're executing against, we thought coming into 2020 that we were going to tilt towards growth. And we think we saw that with some of the investments we made towards the end of last year, and we continue those hiring investments throughout the first quarter of this year. I think as we'll start to lap some of those higher hiring percentages or growth in Q3 or Q4. And so that probably -- at that point in time, we'll start moving back in line with what we've seen historically.

是的。我認為招聘一直是——我們在過去幾個季度的背景下討論了這一點，在本季度，在我們正在執行的盈利能力和增長的平衡框架內，我們認為進入 2020 年我們是將向增長傾斜。我們認為我們在去年年底進行的一些投資中看到了這一點，並且我們在今年第一季度繼續進行這些招聘投資。我認為我們將開始在第三季度或第四季度實現一些更高的招聘百分比或增長。因此，可能 - 在那個時間點，我們將開始與我們在歷史上看到的情況保持一致。

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

你的下一個問題來自奧本海默的 Shaul Eyal。

Congrats on the ongoing strong performance. You had a very solid European performance over the past few quarters. But I think specifically in the first quarter, some other companies have been reporting mixed-use fixed outlook with respect to the European performance. What are you doing different? Or is it also driven by your strong partner relations in that region?

祝賀持續的強勁表現。在過去的幾個季度裡，你們在歐洲的表現非常穩健。但我認為，特別是在第一季度，其他一些公司一直在報告關於歐洲業績的混合用途固定前景。你有什麼不同？或者它是否也受到您在該地區強大的合作夥伴關係的推動？

Yes. I think the -- I probably look at this way. I think that when we say Europe, it also includes our emerging part of the business as well, emerging, meaning everything from Southern Africa to the Middle East and into Eastern Europe. I think that, that latter component has been strong now for many quarters in a row. And yes, I do think that, one, it's great execution by that team. And I think also they do a very good job of how they, in some ways, are forced to go to market with that. I think if you look at the quarter overall, we probably saw, as you would kind of expect with the pandemic, the U.S. and the Americas probably outperformed Europe, Continental Europe a little bit more, during the quarter, and that's kind of consistent with what we saw with the pandemic.

是的。我認為 - 我可能會這樣看。我認為當我們說歐洲時，它也包括我們業務的新興部分，新興，意味著從南部非洲到中東再到東歐的一切。我認為，後一個組成部分現在已經連續多個季度表現強勁。是的，我確實認為，第一，該團隊的執行力非常好。而且我認為他們在某些方面也做得很好，他們如何被迫將其推向市場。我認為，如果你看一下整個季度，我們可能會看到，正如你對大流行病的預期一樣，美國和美洲在本季度的表現可能優於歐洲，歐洲大陸略勝一籌，這與我們在大流行中看到了什麼。

Got it. And Keith, while we have you, gross margins, also probably highest in recent quarters. What should be -- what should we be expecting going forward? And what's been driving that little bit of an uptick that we have seen with the gross margins, specifically for the company, which is slightly more appliance-driven?

知道了。基思，雖然我們有你，但毛利率也可能是最近幾個季度最高的。應該是什麼——我們應該期待什麼？是什麼推動了我們在毛利率上看到的一點點上升，特別是對於這家稍微更受電器驅動的公司而言？

Yes. I think the guidance that we provided for gross margin is good for the quarter. I feel comfortable with that. I do think that we're benefiting as our cost structure changed a little bit with some of our newer products. And I think that we're partnering perhaps a little bit more effectively with our channel partners over the last couple of years than we had in the past.

是的。我認為我們提供的毛利率指引對本季度有利。我對此感到很舒服。我確實認為我們正在受益，因為我們的一些新產品的成本結構發生了一些變化。而且我認為，在過去幾年中，我們與渠道合作夥伴的合作可能比過去更有效。

And your next question comes from the line of Melissa Franchi from Morgan Stanley.

你的下一個問題來自摩根士丹利的 Melissa Franchi。

I want to go back to the discussion on the branch business. I think investors are trying to understand what the trajectory looks like for the branch, just given some exposure to economically-sensitive verticals like retail. So I know that it's probably pretty early, but as you look into your pipeline, are you anticipating any change in terms of renewal rates for the branch? And I know that April is shaping up to be pretty well, but what should we expect for the second half of the year?

我想回到分行業務的討論上來。我認為投資者正試圖了解該分支機構的軌跡是什麼樣的，只是考慮到一些對經濟敏感的垂直行業，如零售業。所以我知道這可能還為時過早，但是當您查看您的管道時，您是否預計分支機構的續訂率會發生任何變化？而且我知道 4 月的情況非常好，但下半年我們應該期待什麼？

Yes. So we didn't guide in the second half of the year, and we don't give a lot of specifics on renewal rates, but I think I made a comment that what we saw in the first quarter was that renewal rates were within that band that we provided at the Analyst Day. And I don't really see that changing based upon what I'm seeing. I think it's probably helpful to kind of consider the context of our diversification. And I kind of made reference to it just a moment ago when I talked about the U.S. performed very strongly and Europe was probably hit by the pandemic a little bit harder. You're talking about a company now that's less than 30% of its business is in the U.S. and there may be a lot of focus on retail headlines in the U.S., but it's probably passing over perhaps the recovery that's already started in Europe and the impact from Latin America and other geographies.

是的。所以我們沒有在下半年發布指南，我們也沒有給出很多關於續訂率的細節，但我想我發表了評論，我們在第一季度看到的是續訂率在那個範圍內我們在分析師日提供的樂隊。根據我所看到的，我並沒有真正看到這種變化。我認為考慮一下我們多元化的背景可能會有所幫助。就在剛才，當我談到美國表現非常強勁而歐洲可能受到大流行的打擊時，我有點提到了這一點。你說的是一家現在只有不到 30% 的業務在美國的公司，而且美國的零售頭條新聞可能有很多關注點，但它可能忽略了歐洲和美國已經開始的複蘇。來自拉丁美洲和其他地區的影響。

Okay. That's very helpful. And just following up with you, Keith. I'm wondering if you could just maybe give a little bit more color on some of your underlying assumptions for the Q2 guide. I know April seems to be pretty healthy so far, but are you assuming that continues through the rest of the quarter? Or are you expecting a more challenging close?

好的。這很有幫助。只是跟進你，基思。我想知道您是否可以為 Q2 指南的一些基本假設提供更多顏色。我知道到目前為止，4 月似乎相當健康，但您是否認為這種情況會持續到本季度的剩餘時間？還是您期待更具挑戰性的收盤？

Yes. I think we feel very good about the business, about the products, about the strategy that we're executing, about the sales team's ability to execute, about our ability to support our customers and the ability to support our partners. And with that in mind, I'm looking at the pipeline, I'm looking at the slicing and the dicing of the pipeline. As I kind of made reference a moment ago, I'm looking at different assumptions for different geographies based upon the status of the pandemic in those geographies. We're looking at deal sizes. Larger deals have typically more risk than smaller deals do as part of our assessment. We look at whether or not it's a new logo or an existing customer or a renewal. So all those things go into the mix in terms of setting the guidance for the quarter.

是的。我認為我們對業務、產品、我們正在執行的戰略、銷售團隊的執行能力、我們支持客戶的能力以及支持合作夥伴的能力感覺非常好。考慮到這一點，我正在研究管道，我正在研究管道的切片和切塊。正如我剛才提到的那樣，我正在根據這些地區的大流行狀況來研究不同地區的不同假設。我們正在研究交易規模。作為我們評估的一部分，較大的交易通常比較小的交易具有更大的風險。我們會查看它是新徽標、現有客戶還是續訂。因此，在為本季度設定指導方面，所有這些因素都被納入其中。

And your next question comes from the line of Saket Kalia from Barclays.

你的下一個問題來自巴克萊銀行的 Saket Kalia。

Ken, maybe first for you, a lot of questions on the branch and understandably so, but maybe even just thinking about the enterprise, how do you think your enterprise customers are thinking about their VPN strategies longer term? And how do you sort of expect Fortinet to play into that?

肯，也許首先是你，分支機構有很多問題，這是可以理解的，但甚至可能只是考慮企業，你認為你的企業客戶如何考慮他們的長期 VPN 戰略？您如何看待 Fortinet 發揮作用？

I think this pandemic probably changed some of the working patterns. Like I said before, there was probably less than 10% people work remotely, access on VPN. Now due to this lockdown, probably, we see over 90%. Maybe even if we go back, reopen, whatever, maybe still 30%, 50%, and it all depends on the vertical. So that's making this remote access work from home starting to get more and more important, and especially the networking need to be combined with endpoint. Endpoint sometimes, you can address certain device. But if you are at the network side, you can actually secure the whole branch or the whole home and whatever was there. And even different like with WiFi, with all other like different member of the family can kind of manage all these different bandwidths.

我認為這種流行病可能改變了一些工作模式。就像我之前說的，可能只有不到 10% 的人遠程工作，通過 VPN 訪問。現在由於這種封鎖，我們可能會看到超過 90%。也許即使我們回去，重新打開，無論如何，也許仍然是 30%、50%，這完全取決於垂直領域。因此，這使得在家進行遠程訪問變得越來越重要，尤其是網絡需要與端點相結合。端點有時，你可以解決某些設備。但是如果你在網絡端，你實際上可以保護整個分支機構或整個家庭以及那裡的任何東西。甚至與 WiFi 不同，所有其他家庭成員都可以管理所有這些不同的帶寬。

So that's actually -- we see this enterprise headquarter office VPN starting to have a pretty strong demand there. And some other like authenticated products and other products, fabric, we also see pretty good growth, actually, even double, triple some of these different component of fabric.

所以這實際上是 - 我們看到這個企業總部辦公室 VPN 在那裡開始有相當強勁的需求。而其他一些像經過認證的產品和其他產品，織物，我們也看到了相當不錯的增長，實際上，這些不同成分的織物的一些甚至是兩倍，三倍。

Got it. That's very helpful. Maybe as my follow-up for you, Keith. Did -- or maybe can you comment on any trends in the FortiGuard bundles as a result of increased work from home? I know you talked about some of the trends in FortiCare with that nice uptick in customers opting for 24/7. But curious if you've seen any material shifts in the makeup of FortiGuard subscription with the different bundles that you have as a result of work from home?

知道了。這很有幫助。也許作為我對你的後續行動，基思。由於在家工作的增加，你是否——或者你能評論一下 FortiGuard 捆綁包中的任何趨勢？我知道您談到了 FortiCare 的一些趨勢，客戶選擇 24/7 全天候服務的人數呈上升趨勢。但是很好奇，您是否看到 FortiGuard 訂閱的構成與您在家工作時擁有的不同捆綁包有任何重大變化？

No. No. Not really.

不，不，不是真的。

And your next question comes from the line of Rob Owens with Piper Sandler.

你的下一個問題來自 Rob Owens 和 Piper Sandler 的台詞。

Rob, are you there?

羅布，你在嗎？

Can you hear me?

你能聽到我嗎？

We can.

我們可以。

Okay. Sorry about that. You mentioned in your prepared remarks, your ability to directly manage supply chain and shipping logistics. And I'm curious, as you look forward towards the second quarter and should you still see strong surge in demand around the FortiGate solutions, any supply chain concerns? Or are those all relatively put to bed at this time?

好的。對於那個很抱歉。您在準備好的發言中提到了您直接管理供應鍊和航運物流的能力。我很好奇，當您期待第二季度時，您是否仍會看到圍繞 FortiGate 解決方案的需求強勁增長，是否存在供應鏈問題？還是那些都在這個時候相對睡覺了？

I think I feel good about it, but the Head of Manufacturing has some work to do.

我覺得我對此感覺很好，但製造主管還有一些工作要做。

Okay. So far, we don't see any issue. We see it pretty good. They also would recover pretty quick in not only the supply chain, but also we manage our own shipment, shipping logistics and also our own supporting. Like so we were not outsourcing any shipment or customer support, and that's also with all these facility, with all the team, we can quickly address why and can kind of make it more like redundant or whatever, resistant to any kind of downside to adopt quickly.

好的。到目前為止，我們沒有看到任何問題。我們看到它很好。他們不僅在供應鏈中恢復得非常快，而且我們管理自己的運輸、運輸物流以及我們自己的支持。就像這樣，我們沒有外包任何運輸或客戶支持，而且所有這些設施，所有團隊，我們可以快速解決原因，並且可以讓它更像是冗餘或其他任何東西，以抵抗採用的任何不利因素迅速地。

Yes. I think the -- we still have a spot or 2 of components that we lined up in Japan or the Philippines or Malaysia or something like that on an individual component. But keep in mind, part of our business model is looking at our inventory turns, which have been less than 3 recently. So really, that means we're carrying about 4 months of inventory at any point in time. And even at that level, we weren't at 100% execution, even though the backlog was consistent with other quarters. And so probably, we're looking at our inventory level and thinking maybe as we go through the next quarter or 2 to move that up just ever so slightly as we start transitioning to further guard against this possible risk for pandemic.

是的。我認為 - 我們仍然有一個或兩個組件在日本、菲律賓或馬來西亞或類似的地方排列在單個組件上。但請記住，我們商業模式的一部分是關注我們的庫存周轉率，最近庫存周轉率不到 3。所以真的，這意味著我們在任何時間點都有大約 4 個月的庫存。即使在那個水平上，我們也沒有達到 100% 的執行率，儘管積壓與其他季度一致。因此，我們可能正在研究我們的庫存水平，並考慮在我們進入下一季度或第二季度時將其略微提高，因為我們開始過渡以進一步防範這種可能的大流行風險。

I appreciate the color. And then just briefly, if I may, I know there's been a lot of discussions around work from home branch office, but where do you guys come down as you're talking to customers on kind of that cloud, SASE arguments? And strategically, as people are considering work from home, what's kind of been the response of customers as you're looking at your solution versus others?

我很欣賞這種顏色。然後簡單地說，如果可以的話，我知道有很多關於家庭分支機構工作的討論，但是當你們在那種雲上與客戶交談時，你們從哪裡下來，SASE 爭論？從戰略上講，當人們考慮在家工作時，當您比較您的解決方案與其他解決方案時，客戶的反應是什麼？

Like I said a few weeks ago, we feel the SASE, the best model is really working with a service provider. Like today, this morning, we also announced the partnership with NTT West, offer all these like whether work from home or kind of a go to service provider solution for both SD-WAN and also security. And even ourselves, we do have the technology. And -- but we do believe this cloud approach need to be working with edge and on-premise together. So we have the structure. It's all in the testing, and also working with a lot of service provider right now because the Forti SASE approach is a little bit different than the traditional SASE approach, which they forward all the traffic, whether from endpoint to your device from home, and also in the office or the cloud. So we believe the better approach for the SASE, we call Forti SASE, is for the endpoint of some work from home your mobile device maybe makes sense to -- for the cloud to process, which we have all the solution. But when in the office, you forward office traffic to the cloud is not quite makes sense. It's not very secure because when you forward it's not quite encrypted. And also, it increase a lot of network traffic and much high latency, much slow. And most of the SASE companies, for instance, they won't leverage whether open source of freeware to do the security. So when you do the testing of the security, their security reaching our research authentication, not as good as some other dedicated security company because we have a few hundred people just doing all this intelligent research and us do this for 20 years.

就像我幾週前說的，我們覺得 SASE，最好的模型是真正與服務提供商合作。就像今天一樣，今天早上，我們還宣布了與 NTT West 的合作夥伴關係，提供所有這些，例如無論是在家工作還是一種針對 SD-WAN 和安全性的服務提供商解決方案。甚至我們自己，我們也確實擁有這項技術。而且 - 但我們確實相信這種雲方法需要與邊緣和本地一起工作。所以我們有結構。這一切都在測試中，並且現在還與許多服務提供商合作，因為 Forti SASE 方法與傳統的 SASE 方法有點不同，他們轉發所有流量，無論是從端點到您在家中的設備，還是也在辦公室或云端。因此，我們相信 SASE 的更好方法，我們稱之為 Forti SASE，是針對您的移動設備在家中進行某些工作的端點可能有意義的——對於雲處理，我們擁有所有解決方案。但是在辦公室時，將辦公室流量轉發到雲端就不太有意義了。它不是很安全，因為當您轉發時它沒有完全加密。而且，它增加了大量的網絡流量和高延遲，非常慢。而大多數 SASE 公司，例如，他們不會利用免費軟件的開源來做安全。因此，當您進行安全性測試時，他們的安全性達到了我們的研究認證，不如其他一些專門的安全公司，因為我們有幾百人在做所有這些智能研究，而且我們做了 20 年。

So that's where from better security, better networking latency and better like cost-wise. Some offers, if you using on-site premise, more like (inaudible) offer solution to process a lot of traffic locally will be much better than forward all this office traffic to the cloud. So that's where we have this Forti SASE, but a little bit different. And then also, when we're working with service providers, we also make it a profit model compared to a lot of other SASE company, they have to invest a lot of part of our data center, which is making them keeping losing money.

因此，這就是更好的安全性、更好的網絡延遲和更好的成本優勢所在。一些提議，如果您使用現場前提，更像是（聽不清）提供在本地處理大量流量的解決方案，這比將所有這些辦公室流量轉發到雲端要好得多。這就是我們擁有 Forti SASE 的地方，但有點不同。然後，當我們與服務提供商合作時，與許多其他 SASE 公司相比，我們也將其作為一種盈利模式，他們必須對我們的數據中心進行大量投資，這使他們一直處於虧損狀態。

Eventually, all these service provider, they do have their own kind of own infrastructure. So leverage their current infrastructure, they leverage what they can process on-site and in office will be much more secure and cost effectively to solve this issue, right, whether easy to management or manage all this mobile security solution. So that's where we have a little bit different approach, more leverage of service provider and also leverage both on the cloud and also on-premise on edge solutions. So I think that's kind of good feedback from all this both in the enterprise side, in the service provider, also in the customer. So we feel that will be the right approach.

最終，所有這些服務提供商，他們確實擁有自己的基礎設施。因此，利用他們當前的基礎設施，他們利用他們可以在現場和辦公室處理的內容將更加安全且更具成本效益地解決這個問題，對吧，無論是易於管理還是管理所有這些移動安全解決方案。因此，這就是我們採用不同方法的地方，更多地利用服務提供商，同時利用雲和本地邊緣解決方案。所以我認為這在企業、服務提供商和客戶方面都是很好的反饋。所以我們認為這將是正確的方法。

And your next question comes from the line of Michael Turits from Raymond James.

你的下一個問題來自 Raymond James 的 Michael Turits。

You commented that in the quarter, you got strong demand for VPN, authentication, token, endpoint, all clearly work-from-home-driven, and you are seeing those same trends so far into April. The question is, do you have some feel for where we are in terms of customers getting up to the level of capacity they need in terms of that product? Is that a 2Q finish? Or does it extend further?

你評論說，在本季度，你對 VPN、身份驗證、令牌、端點的需求很強烈，所有這些顯然都是由在家工作驅動的，而且你在 4 月份看到了同樣的趨勢。問題是，您是否覺得我們在客戶達到他們對該產品所需的能力水平方面所處的位置？那是2Q完成嗎？還是會進一步延伸？

Well, like I said, whether the SMB or work for home, still very low percentage. Probably U.S., maybe around 5%. Some other region, country, even lower than that. So it's still huge potential on whether SMB or work or home. And then when you try to access to home, to the office, suddenly, you need a huge increase, almost 10x increase on the headquarter or whatever the office VPN need supporting all this home worker, remote worker. And then at the same time, you also need a secure solution in the other side, whether from home or the device level authenticator. So that's where we see quite strong demand there.

好吧，就像我說的，無論是 SMB 還是在家工作，百分比仍然很低。可能是美國，可能在 5% 左右。其他一些地區、國家，甚至更低。因此，無論是 SMB、工作還是家庭，它仍然具有巨大的潛力。然後，當您嘗試訪問家中、辦公室時，突然之間，您需要大幅增加，幾乎是總部 10 倍的增加，或者任何辦公室 VPN 需要支持所有這些家庭工作人員、遠程工作人員。同時，您還需要另一端的安全解決方案，無論是來自家中還是設備級身份驗證器。所以這就是我們在那裡看到相當強勁需求的地方。

Keith, I don't know if you have anything to add to that, but my follow-up question for you is about payment terms. I think you commented that duration was about 25 months on invoicing. Just remind us where it was and if that -- if you have any concern about that shortening. And you talked about 15% extension in payment terms. Again, any concern about that in terms of your need to help out customers and the impact of either one of those on cash flow.

基思，我不知道你是否有什麼要補充的，但我要問你的後續問題是關於付款條件的。我想你評論說開發票的持續時間大約是 25 個月。只要提醒我們它在哪裡，如果你對這種縮短有任何顧慮的話。你談到了 15% 的付款期限延期。同樣，在您幫助客戶的需要以及其中任何一個對現金流的影響方面，任何對此的擔憂。

Well, look, I think the headline would be that we have a strong balance sheet, and we're certainly going to leverage our balance sheet where there's opportunities to gain market share and to support our customers and our channel partners. There's no real doubt about that in my mind. I do think that -- we don't guide to free cash flow, but there's probably some adjustment that you want to make to your free cash flow model for the second quarter. Because I do think that Fortinet is in a position to help others, and I expect us to use our balance sheet to do that on a case-by-case basis.

嗯，看，我認為標題是我們擁有強大的資產負債表，我們肯定會利用我們的資產負債表，有機會獲得市場份額並支持我們的客戶和渠道合作夥伴。我對此毫無疑問。我確實認為 - 我們不指導自由現金流，但您可能希望對第二季度的自由現金流模型進行一些調整。因為我確實認為 Fortinet 有能力幫助他人，我希望我們利用我們的資產負債表根據具體情況來做到這一點。

And your next question comes from the line of Walter Pritchard from Citi.

你的下一個問題來自花旗銀行的 Walter Pritchard。

Two questions. One, I guess, for Ken. Just around the low end of the product line looked pretty strong. I'm wondering how strong of a trend it was that you saw actual work from home customers taking low-end boxes and that being part of what you shipped, understanding that FortiClient was strong and the Token, Authenticator products and so forth. Just wondering how much that contributed on the appliance side.

兩個問題。一個，我想，是給肯的。低端產品線看起來相當強大。我想知道這種趨勢有多強烈，你看到家庭客戶的實際工作採用低端盒子，並且這是你發貨的一部分，了解 FortiClient 很強大，以及 Token、Authenticator 產品等等。只是想知道在設備方面有多少貢獻。

I think they're both pretty strong. The FortiClient probably even double, triple, but come from relatively small base. And then the appliance, the low end, whether SMB or some work from home, also pretty strong, like if you see the unit shipment increase 30%, that's mostly contributed from the low end because the high and middle range will not impact that much of the unit shipment.

我覺得他們兩個都很強FortiClient 可能甚至是兩倍、三倍，但來自相對較小的基數。然後是低端設備，無論是 SMB 還是一些在家工作，也非常強勁，比如如果你看到單位出貨量增長 30%，那主要來自低端，因為高端和中端不會影響那麼大單位出貨量。

I think the trend still, like I said, is still in the -- we still get a lot of enterprise and also they see the current -- whether their competitors product cannot handle starting the huge increase of the VPN or some other work-for-home solution. So we get a lot of interest. And so IT is also super busy try to whether do the deployment or whatever. And at the same time, we also try to help them supporting them, and we have this called zero-touch deployment, help them to deploy whether the branch or some other headquarter solution quickly to meet all the strong demand. I don't see the trend slow down yet. And -- but even after the pandemic, we do see the percentage of people starting work from home probably will be higher, maybe like a few times higher compared to before the pandemic.

我認為趨勢仍然，就像我說的，仍然是——我們仍然有很多企業，他們也看到了當前——他們的競爭對手產品是否無法處理 VPN 或其他一些工作的巨大增長-家庭解決方案。所以我們很感興趣。因此，IT 部門也非常忙於嘗試是否進行部署或其他工作。同時，我們也盡力幫助他們支持他們，我們有這個叫做零接觸部署，幫助他們快速部署無論是分支機構還是其他一些總部解決方案，以滿足所有強烈的需求。我還沒有看到趨勢放緩。而且——但即使在大流行之後，我們確實看到在家開始工作的人的比例可能會更高，可能比大流行之前高幾倍。

Yes. I think the -- it's Keith. Just to add to that. I think the model, so to speak, that you're more likely to see is that when people start working from home, it's not that they're going home and taking a firewall with them. I think they're installing FortiClients on their laptop. So that's probably really not going to drive a low end business by itself. On the other side of the corporate IT organization, now they're trying to -- they need greater throughput and better capacity because of things like VPN and authentication and so forth. And so you may see the corporate buyer is actually moving up, if you will, in terms of what they're buying. But again, it's not firewall for the home. I think the other aspect of it is we have a new product called the 60F, which has -- which was a real beast in the quarter just in terms of the volumes that it produced. And then in our favor, it has a little bit different cost structure than its predecessor. So it's giving us a little bit of lift on margins.

是的。我認為是 Keith。只是為了補充這一點。我認為，可以說，您更有可能看到的模型是，當人們開始在家工作時，並不是說他們會回家並隨身攜帶防火牆。我認為他們正在他們的筆記本電腦上安裝 FortiClients。因此，這可能真的不會單獨推動低端業務。在公司 IT 組織的另一邊，現在他們正在嘗試——他們需要更大的吞吐量和更好的容量，因為 VPN 和身份驗證等。因此，如果您願意的話，您可能會看到企業買家實際上在購買什麼東西方面正在上升。但同樣，它不是家庭防火牆。我認為它的另一個方面是我們有一個名為 60F 的新產品，就其生產量而言，它在本季度是一個真正的野獸。然後對我們有利的是，它的成本結構與其前身略有不同。所以它給我們帶來了一點利潤率提升。

Yes. I think it's also interesting, yes, the interest in really, the FortiClient probably can low down your laptop or your mobile, but that only secure one device. So when you work from home, you're also going to be probably competing with your kids for the bandwidth, and then also some other things you need to manage together, some other appliance, could be like all this remote, monitor device, all these things. That's where the FortiGate come in. It's very, very handy, very, very good solution so they can manage different devices from different load of bandwidths that secure WiFi together and even some -- I'm not sure how much use of the SD-WAN, but it's still -- but it's really the product offers so much function. They can have the whole house being managed much better secure, much better compared to one device. So that's making work from home as a much better security and also can kind of -- it's much better than just one device.

是的。我認為這也很有趣，是的，真正感興趣的是，FortiClient 可能會降低您的筆記本電腦或手機的性能，但它只能保護一台設備。所以當你在家工作時，你也可能會和你的孩子爭奪帶寬，然後還有一些你需要一起管理的東西，一些其他的設備，可能就像所有這些遠程監控設備，所有這些東西。這就是 FortiGate 的用武之地。它是非常、非常方便、非常、非常好的解決方案，因此他們可以管理來自不同帶寬負載的不同設備，將 WiFi 保護在一起，甚至一些——我不確定 SD 的使用量有多少—— WAN，但它仍然是——但它確實是該產品提供瞭如此多的功能。他們可以讓整個房子的管理更加安全，與一台設備相比要好得多。因此，這使在家工作成為一種更好的安全措施，而且也可以——它比只有一台設備要好得多。

And then, Keith, just on the guidance, understanding we're seeing lots of companies pull the guidance because of the unprecedented times. So I'm just wondering, if you look at your forecast and think about 90 days from now, what sort of things are you looking for in your forecasting to be able to get back to giving annual guidance? Specifically, what sort of things are unstable there or sort of too wide of a range to be able to call at this point that you'll be watching?

然後，基思，就指導而言，我們看到許多公司因為前所未有的時代而取消了指導。所以我只是想知道，如果你查看你的預測並考慮從現在開始的 90 天，你在預測中尋找什麼樣的東西才能重新提供年度指導？具體來說，在您將要觀察的這一點上，什麼樣的事情在那裡不穩定或範圍太廣而無法調用？

Yes. I think, like everybody else, I think our concerns or our interests are, is there going to be a second wave? What's the severity of the second wave is going to be? What geography is it going to hit? And when is it going to hit in those geographies? And really, ultimately, what economy are you trying to provide guidance into? And that's just the unknown right now in the second half of the year.

是的。我想，和其他人一樣，我認為我們的擔憂或我們的利益是，是否會出現第二波？第二波的嚴重程度如何？它會襲擊哪些地區？它什麼時候會襲擊這些地區？實際上，最終，您要為哪種經濟提供指導？而這只是今年下半年的未知數。

And your next question comes from Tal Liani from Bank of America.

你的下一個問題來自美國銀行的 Tal Liani。

This is Dan Bartus on for Tal. I was just wondering if you can share some thoughts on overall security budgets and how you think they might trend this year. Curious if you're hearing from any customers that they're looking to already cut back maybe in 2Q or second half. And then just a quick follow-up for Keith, probably. Can you just help us think about how much of your SD-WAN business is driven by MSPs and MSSPs?

這是 Tal 的 Dan Bartus。我只是想知道您是否可以分享一些關於整體安全預算的想法，以及您認為今年的趨勢如何。好奇您是否從任何客戶那裡聽到他們希望在第二季度或下半年削減開支。然後可能只是對 Keith 的快速跟進。您能幫我們想想您的 SD-WAN 業務有多少是由 MSP 和 MSSP 驅動的嗎？

I think from the past in 2007, 2008, security budgets hold pretty well during this recession. But this time it's different. And that's where we also try to be very careful for any guidance. And so far, we see in the first quarter, also in April, we see pretty good and low impact, no any material impact. And if since not get worse, we feel pretty comfortable. But like Keith said, these times are different. We try to be very careful. And...

我認為從 2007 年、2008 年的過去來看，安全預算在這次經濟衰退期間保持得很好。但這一次不同。這也是我們對任何指導都非常小心的地方。到目前為止，我們在第一季度看到，也是在 4 月份，我們看到影響相當好，影響很小，沒有任何實質性影響。如果沒有變得更糟，我們會感到很舒服。但正如基思所說，這些時代不同了。我們盡量小心。和...

Yes. I think in terms of the SD-WAN and the MSSPs, I would characterize that as being a market that we're very interested in because it's a very large market. Obviously, the MSSPs have already come to it with an incumbent that we're trying to displace. But that opportunity, without quantifying it, if you will, is something that I would say we're very focused on internally.

是的。我認為就 SD-WAN 和 MSSP 而言，我認為這是一個我們非常感興趣的市場，因為它是一個非常大的市場。顯然，MSSP 已經帶著我們正試圖取代的現任者來到這裡。但是這個機會，如果你願意的話，沒有量化它，我會說我們非常關注內部。

And your next question comes from the line of Amit Daryanani from Evercore.

你的下一個問題來自 Evercore 的 Amit Daryanani。

I have a question and a follow-up as well. I guess, first off, you guys have seen fairly impressive share gains over the last couple of years. I'm wondering how do you think the share gains stack up over the next few years as we go through a recession effectively. Do you think share gains can actually accelerate given the TCO proposition that you guys have in enterprises? Or is that unlikely to happen given no one probably wants to replace legacy gear at this point?

我也有一個問題和一個後續行動。我想，首先，你們在過去幾年中看到了相當可觀的份額增長。我想知道，隨著我們有效地度過衰退，你認為未來幾年股票收益會如何累積。考慮到你們在企業中提出的 TCO 主張，您認為份額增長實際上可以加速嗎？或者這不太可能發生，因為此時可能沒有人想要更換舊設備？

We probably continue to leverage the strong technology product, whether leverage, we call the SPU, Security Process Unit, in ASIC which gave a huge performance advantage and is a VPN function or quite a broad function, and also the fabric approach, which is already 2030 product or most internally developed, working, integrate, automate together, which not a competitor have this advantage. And at the same time, we'll continue to invest. We're continuing to hire, but also we found that it's more easy to hire some high-quality people, and we will continue to -- and the other part also, we found we probably have the biggest training program in this whole cybersecurity industry. And we started to open up outlets for free. And not only are we working with a few hundred university to train out the student, but also a lot of big enterprise, a lot of service provider, a lot of our work from home user all starting see a huge need for the training.

我們可能會繼續利用強大的技術產品，無論是利用，我們稱之為 ASIC 中的 SPU，安全處理單元，它提供了巨大的性能優勢，並且是 VPN 功能或相當廣泛的功能，還有結構方法，它已經是2030 的產品還是大部分內部開發，工作，集成，自動化在一起，沒有一個競爭對手有這個優勢。與此同時，我們將繼續投資。我們正在繼續招聘，但我們也發現聘請一些高素質的人更容易，我們將繼續 - 另一方面，我們發現我們可能擁有整個網絡安全行業最大的培訓計劃.我們開始免費開設網點。我們不僅與數百所大學合作培訓學生，還有很多大企業、很多服務提供商，我們的很多家庭用戶工作都開始看到對培訓的巨大需求。

We -- actually, we found that we set up a new registration every few second. So every few seconds, we get a new registration set up for the training, and it's a huge benefit because in this security space, it's at least -- last year, there's a 3.5 million shortage of trained people to help in handle the security. So that's also the opportunity we found out to train people and then recruit them also quickly and help us solve the whole industry problem. So we see this as a huge opportunity for us based on the big investment we made before and also where we continued working very hard with all the team and all the partners or the customers try to make the whole internet more secure.

我們——實際上，我們發現我們每隔幾秒就會建立一個新的註冊。所以每隔幾秒鐘，我們就會為培訓設置一個新的註冊，這是一個巨大的好處，因為在這個安全領域，至少 - 去年，有 350 萬受過培訓的人來幫助處理安全問題。所以這也是我們發現培訓人員然後快速招募他們並幫助我們解決整個行業問題的機會。因此，我們認為這對我們來說是一個巨大的機會，基於我們之前進行的大量投資，以及我們繼續與所有團隊和所有合作夥伴或客戶一起努力工作，努力使整個互聯網更加安全。

Yes. I think there's 3 things that Ken's making a point or making reference of, and I'd probably summarize them this way. I think these 3 things are working in our favor at the moment. One is our fabric product set has continued to expand and has continued to mature and become even more competitive, if you will, in terms of features and functions with some of the best of breed. You are seeing more and more customers, at least those that I'm talking to, and prospects, much more interested now in a platform approach but enables automation and integration and moving away from a best-of-breed solution for every aspect of the security platform. And then the third aspect of it, we are probably moving into an environment where cost effectiveness is a premium in your go-to-market messaging. By that, I mean if you can argue that successfully and produce that and deliver that lower cost, more cost-effective option, you can be successful in this market.

是的。我認為 Ken 提出或參考了 3 件事，我可能會這樣總結它們。我認為目前這三件事對我們有利。一是我們的面料產品系列不斷擴大，不斷成熟，變得更具競爭力，如果你願意的話，在特性和功能方面具有一些最好的品種。您會看到越來越多的客戶，至少是那些與我交談過的客戶和潛在客戶，現在對平台方法更感興趣，但可以實現自動化和集成，並擺脫針對各個方面的最佳解決方案安全平台。然後是它的第三個方面，我們可能正在進入一個環境，在這個環境中，成本效益在您的上市消息傳遞中是非常重要的。我的意思是，如果你能成功地論證並生產出來並提供成本更低、更具成本效益的選擇，你就能在這個市場上取得成功。

That's really helpful, guys. And then, Keith, a quick one for you. You talked about average contractual terms pushing out about 15%. What's the impact of that? And what's the best way for us to read that statement?

這真的很有幫助，伙計們。然後，基思，給你一個快速的。你談到平均合同條款推出約 15%。這有什麼影響？我們閱讀該聲明的最佳方式是什麼？

It's payment terms, not the length of the contract, right? And I mentioned that it was slightly less than 15% increase, if you will. And I would probably think you just want to take a little bit of second looking at what your cash collection assumptions are in your free cash flow model for Q2.

是付款條件，不是合同期限，對吧？如果你願意的話，我提到過略低於 15% 的增長。而且我可能認為你只是想稍微看看第二季度的自由現金流模型中你的現金收集假設是什麼。

I would now like to turn the conference back over to Peter Salkowski, Vice President, Investor Relations.

我現在想把會議轉回給投資者關係副總裁 Peter Salkowski。

Thank you, Michelle. I'd like to thank everyone for joining today's call and extend an invitation to listen to the management keynote presentations at the Americas Virtual Accelerate event on May 12. Please contact me for the registration link. Also, Fortinet will be attending the following virtual investor conferences during the second quarter, including the JPMorgan conference also on May 12; the Bank of America Conference on June 4; and the William Blair conference on June 9. Presentations for these events will be webcast and links to these webcasts are available or will be available on our Investor Relations website. If you have 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.

謝謝你，米歇爾。我要感謝大家參加今天的電話會議，並邀請大家在 5 月 12 日的 Americas Virtual Accelerate 活動中聆聽管理層的主題演講。請聯繫我獲取註冊鏈接。此外，Fortinet 將在第二季度參加以下虛擬投資者會議，包括同樣於 5 月 12 日舉行的摩根大通會議； 6 月 4 日的美國銀行會議；以及 6 月 9 日的威廉·布萊爾會議。這些活動的演示文稿將進行網絡廣播，這些網絡廣播的鏈接可用或將在我們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。祝您度過愉快的一天。非常感謝。祝你有美好的一天。

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。