Zscaler, Inc. (ZS) 2019 Q3 法說會逐字稿

Good day, and welcome to the Zscaler Third Quarter 2019 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. Bill Choi. Please go ahead, sir.

大家好，歡迎參加 Zscaler 2019 會計年度第三季財報電話會議。今天的會議將進行錄音。此刻，我想把會議交給 Bill Choi 先生。先生，請開始。

Good afternoon, and thank you for joining us to discuss Zscaler's financial results for the third quarter of fiscal 2019. With me on the call are Jay Chaudhry, Chairman and CEO; and Remo Canessa, CFO. By now, everyone should have access to our earnings announcement. This announcement may also be found on our website in the Investor Relations section. In addition, a supplemental financial schedule was posted to the Investor Relations section of our website earlier today.

各位下午好，感謝各位加入我們，一同討論 Zscaler 2019 會計年度第三季的財務結果。與我一同參與電話會議的有董事長兼執行長 Jay Chaudhry，以及財務長 Remo Canessa。到目前為止，大家應該都已取得我們的財報新聞稿。該公告也可在我們網站的投資人關係專區找到。此外，我們今天稍早也已在網站投資人關係專區發布補充財務明細表。

Let me remind you that we'll be making forward-looking statements during today's discussion including, but not limited to, the company's anticipated future revenue, calculated billings, operating performance, gross margin, operating expenses, operating income, net income, free cash flow, dollar-based net retention rate, income taxes and earnings per share. These statements and other comments are not guarantees of future performance but rather are subject to risks and uncertainties, some of which are beyond our control. Our actual results may differ significantly from those projected or suggested in any forward-looking statements. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call. For a more complete discussion of the risks and uncertainties that could impact our future operating results and financial condition, please see our filings with the Securities and Exchange Commission as well as in today's earnings release.

提醒各位，我們在今天的討論中將作出前瞻性陳述，包括但不限於公司對未來營收、計算帳單金額（calculated billings）、營運表現、毛利率、營運費用、營業利益、淨利、自由現金流、以美元計價的淨留存率、所得稅以及每股盈餘的預期。這些陳述及其他評論並非對未來表現的保證，而是受到風險與不確定性影響，其中部分超出我們的控制範圍。我們的實際結果可能與任何前瞻性陳述中所預測或暗示者有重大差異。這些前瞻性陳述以今日為準，您不應將其視為代表我們未來的觀點。本次電話會議後，我們不承擔更新這些陳述的義務。如需更完整了解可能影響我們未來營運結果與財務狀況的風險與不確定性，請參閱我們向美國證券交易委員會提交的文件，以及今日的財報新聞稿。

Unless otherwise noted, all numbers we talk about today will be on an adjusted non-GAAP basis. Please refer to our earnings release on the Investor Relations portion of our website for a reconciliation of GAAP to the non-GAAP financial measures. For historical periods, the GAAP to the non-GAAP reconciliations can be found in the supplemental financial information referenced a few moments ago.

除非另有說明，我們今天討論的所有數字將以調整後的非 GAAP 基礎呈現。請參閱我們網站投資人關係專區的財報新聞稿，以取得 GAAP 與非 GAAP 財務衡量指標之間的調節表。就歷史期間而言，GAAP 與非 GAAP 的調節表可在剛才提到的補充財務資訊中找到。

I would also like to inform you that we will be participating in Bank of America Merrill Lynch's Global Technology Conference in San Francisco on June 5. Now I will turn the call over to Jay.

我也想告知各位，我們將於 6 月 5 日在舊金山參加美國銀行美林（Bank of America Merrill Lynch）全球科技大會。現在我把電話交給 Jay。

Thank you, Bill, and thank you, everyone, for joining us on our call today. I am pleased to share with you our strong third quarter results. Our revenue grew 61% and calculated billings grew 55% year-over-year. In addition to our top line growth, our operating margins improved 14 percentage points year-over-year to 8%. Our Q3 results demonstrate the leverage in our business model and our ability to drive growth and profitability. While we are pleased with our third consecutive quarter of profitability, we will continue to aggressively invest in our business for a significant market opportunity that is ahead of us. Based on our analysis of IDC's data, we believe we are going after a $20.3 billion TAM in calendar 2019.

謝謝你，Bill，也謝謝各位今天加入我們的電話會議。我很高興與各位分享我們強勁的第三季業績。我們的營收年增 61%，計算帳單金額年增 55%。除了營收成長之外，我們的營業利益率也較去年同期提升 14 個百分點至 8%。第三季的結果展現了我們商業模式的槓桿效益，以及推動成長與獲利的能力。雖然我們對連續第三季達成獲利感到欣慰，但面對前方龐大的市場機會，我們仍將持續積極投資於業務。根據我們對 IDC 數據的分析，我們相信在 2019 年曆年我們所瞄準的總可服務市場（TAM）為 203 億美元。

Just as enterprises have adopted multi-tenant SaaS applications like Salesforce and Workday due to replace legacy on-premise applications, enterprises are saying goodbye to security appliances and choosing Zscaler's born-in-the-cloud multi-tenant security platform to securely embrace the cloud.

正如企業因取代傳統內部部署（on-premise）應用而採用 Salesforce、Workday 等多租戶 SaaS 應用一樣，企業也正告別資安設備（security appliances），選擇 Zscaler 原生雲端（born-in-the-cloud）的多租戶資安平台，以安全地擁抱雲端。

Unlike traditional network security which builds a moat around a castle, our cloud security platform acts as a business policy engine to securely connect the right user to right applications regardless of location: ZIA for access to SaaS or the Internet and ZPA for access to internal apps in a data center or a public cloud.

不同於傳統網路安全像是在城堡周圍築起護城河，我們的雲端資安平台扮演商業政策引擎的角色，能在不受地點限制的情況下，安全地將正確的使用者連結到正確的應用程式：ZIA 用於存取 SaaS 或網際網路，ZPA 用於存取資料中心或公有雲中的內部應用。

Our customers are leveraging increased functionality of our comprehensive cloud security platform as they progress through various stages of their cloud journey. We see this progression in product bundles purchased by our customers. A significant majority of our revenue used to come from customers purchasing Professional and Business Bundle. As expected, we're seeing continued strong adoption of our premium ZIA Transformation Bundle, which is growing as a mix of our ARR. In addition, while we replace security appliances in existing Internet gateways, the majority of ZIA sales are coming from creating and securing new Internet breakouts. These are greenfield opportunities.

隨著客戶在其雲端旅程的不同階段持續推進，他們正運用我們完整雲端資安平台日益增強的功能。我們可從客戶所購買的產品組合（bundles）中看到這種進展。過去，我們相當大比例的營收來自購買 Professional 與 Business Bundle 的客戶。如預期所見，我們的高階 ZIA Transformation Bundle 持續被強勁採用，且其在我們年度經常性收入（ARR）中的占比正在提升。此外，當我們在既有的網際網路閘道中取代資安設備時，多數 ZIA 銷售來自建立並保護新的網際網路出口（Internet breakouts）。這些是綠地機會（greenfield opportunities）。

We are continuing to see significant interest in ZPA, which we introduced only a couple of years ago. It remains the fastest-growing product in our history. ZPA delivers what Gartner calls "zero-trust network access" to provide application access to users without granting network access. This significantly reduces business risk. While ZPA has been and continues to be purchased as an up-sell by existing ZIA customers, we are seeing more upfront sales of both ZIA and ZPA. ZIA and ZPA together provide our customers a single platform for secure cloud transformation, which we believe no other vendor can match.

我們持續看到市場對 ZPA 的高度興趣；這是我們僅在幾年前推出的產品。它仍是我們公司史上成長最快的產品。ZPA 提供 Gartner 所稱的「零信任網路存取」（zero-trust network access），在不授予網路存取權的情況下，為使用者提供應用程式存取。這能大幅降低企業風險。雖然 ZPA 一直以來、且目前仍多由既有 ZIA 客戶以加購（up-sell）方式購買，但我們也看到更多在前期同時銷售 ZIA 與 ZPA 的案例。ZIA 與 ZPA 結合，為客戶提供單一平台以實現安全的雲端轉型；我們相信沒有其他供應商能與之匹敵。

Let me highlight several new customer deals in the quarter. I will start with a deal that shows how large enterprises are buying the ZIA and ZPA platform. One of the world's largest pharmaceutical companies with its headquarters in Europe purchased our Transformation Bundle for 100,000 users and ZPA for over 17,000 users. Moving from a decentralized IT and business units to a centralized IT model, this customer had a strategy to transform to the cloud, for their network and for their applications. To achieve this, the IT team identified 2 initiatives: One, increased use of cloud, including a move to Office 365, Zoom and AWS, and number two, network and security transformation. They adopted a strategy to create secure local Internet breakouts for 200 offices around the globe. Our cloud security platform allowed them to realize the vision of perimeter-less enterprise with direct access to any service or application from anywhere on any device without backhauling traffic through regional hubs. The result: reduced business risk, faster user experience and significant cost savings. They will no longer need either a site-to-site VPN to AWS or remote access VPN. ZPA also enables the customer to rapidly integrate mergers and manage divestitures while increasing the level of security with the zero trust network access approach.

接下來我將重點介紹本季幾筆新的客戶交易。我先從一筆展現大型企業如何採購 ZIA 與 ZPA 平台的交易談起。一家總部位於歐洲、全球最大的製藥公司之一，為 100,000 名使用者購買了我們的 Transformation Bundle，並為超過 17,000 名使用者購買了 ZPA。該客戶正從分散式 IT 與各事業單位的模式，轉向集中式 IT 模式，並制定了針對其網路與應用程式的雲端轉型策略。為達成此目標，IT 團隊確立了兩項倡議：第一，提高雲端使用，包括遷移至 Office 365、Zoom 與 AWS；第二，進行網路與資安轉型。他們採取策略，為全球約 200 個辦公室建立安全的本地網際網路出口。我們的雲端資安平台使其得以實現「無邊界企業」（perimeter-less enterprise）的願景：在任何地點、任何裝置上，皆可直接存取任何服務或應用，而無需將流量回傳（backhauling）至區域樞紐。成果是：降低企業風險、更快的使用者體驗，以及顯著的成本節省。他們將不再需要 AWS 的站點對站點 VPN（site-to-site VPN），也不再需要遠端存取 VPN。ZPA 也讓客戶能在提升零信任網路存取安全水準的同時，快速整合併購並管理資產剝離（divestitures）。

Another deal involving both ZIA and ZPA upfront was a Fortune 500 financial services company that purchased our Transformation Bundle for 85,000 users and ZPA for 20,000 users. This customer was preparing to deploy Office 365. The anticipated scaling issues with their on-premise web proxy appliances, which would not keep up with the significant growth in Internet-bound traffic from 750 worldwide offices. The initial discussion of proxy replacement expanded significantly once the security team realized that Zscaler was much more than a traditional web proxy; we offer the full security stack, including next-gen firewall, sandbox and SSL inspection. This customer decided to pursue a local Internet breakout strategy and use Zscaler to secure their SD-WAN initiative. They purchased ZIA for all employees, which will also cover mobile users and improve the user experience. In addition, they purchased ZPA for two use cases: One, to integrate acquisitions of new businesses, and two, to replace remote access VPN for business units that were having poor user experience.

另一筆在前期同時導入 ZIA 與 ZPA 的交易，來自一家《財富》500 大的金融服務公司；該公司為 85,000 名使用者購買了我們的 Transformation Bundle，並為 20,000 名使用者購買了 ZPA。該客戶正準備部署 Office 365。他們預期其內部部署的網頁代理（web proxy）設備將面臨擴充性問題，無法跟上來自全球 750 個辦公室、以網際網路為目的地的流量大幅成長。當資安團隊意識到 Zscaler 遠不只是傳統網頁代理後，最初關於代理替換的討論大幅擴展；我們提供完整的安全堆疊（security stack），包括次世代防火牆、沙箱以及 SSL 檢查。該客戶決定採取本地網際網路出口策略，並使用 Zscaler 來保護其 SD-WAN 計畫。他們為所有員工購買了 ZIA，這也將涵蓋行動使用者並改善使用者體驗。此外，他們針對兩個使用情境購買了 ZPA：第一，用於整合新業務的併購；第二，用於取代部分事業單位的遠端存取 VPN，因為這些單位的使用者體驗不佳。

I often see personal notes from CIOs, CTOs and CISOs of Global 2000 enterprises indicating how much they appreciate the quality of service of the Zscaler team and our commitment to their success. A number of them have brought Zscaler into their new organizations after making a career move. I'm excited to share with you 2 recent examples. A travel and leisure company purchased our Transformation Bundle for 17,000 users and ZPA for 6,500 users. The new CTO came from a large healthcare company where he had deployed Zscaler 1 year ago. In another case, a financial services company purchased our Transformation Bundle for 10,000 users. Their new CIO moved from another financial services company, which had rolled out Zscaler 3 years ago. These wins demonstrate the strong loyalty of our customers and the value of our platform.

我經常看到來自《全球 2000 大》企業的 CIO、CTO 與 CISO 的個人訊息，提到他們非常欣賞 Zscaler 團隊的服務品質，以及我們對其成功的承諾。其中有不少人在職涯轉換、加入新組織後，也把 Zscaler 帶進新公司。我很高興與各位分享最近的 2 個例子。一家旅遊與休閒公司為 17,000 名使用者購買了我們的 Transformation Bundle，並為 6,500 名使用者購買了 ZPA。該公司的新任 CTO 來自一家大型醫療保健公司，他在 1 年前於該公司部署了 Zscaler。另一個案例中，一家金融服務公司為 10,000 名使用者購買了我們的 Transformation Bundle。他們的新任 CIO 來自另一家金融服務公司，而該公司在 3 年前已導入 Zscaler。這些勝利展現了客戶對我們的高度忠誠，以及我們平台的價值。

We also had a number of notable up-sell wins in Q3. A U.S.-based conglomerate has been a Zscaler customer since 2015 using our Business Bundle who has 2 dozen portfolio companies to protect 70,000 employees around the world. This customer purchased ZPA for 40,000 users to replace multiple remote access VPN solutions and made ZPA the standard solution across multiple portfolio companies. The driver: customer is moving its applications to SaaS and public cloud and needed a future-proof solution that provides secure and fast access to their applications. In addition, as this conglomerate actively acquires its new businesses, ZIA and ZPA will enable them to quickly integrate the acquired companies. This latest purchase resulted in doubling of the total customer annual spend with Zscaler.

我們在第三季也取得多項值得一提的加購（up-sell）勝利。一家美國的綜合企業自 2015 年起即為 Zscaler 客戶，使用我們的 Business Bundle，旗下約有 24 家投資組合公司，需要保護全球 70,000 名員工。該客戶為 40,000 名使用者購買了 ZPA，以取代多套遠端存取 VPN 解決方案，並將 ZPA 設為多家投資組合公司的標準解決方案。驅動因素：客戶正將其應用程式遷移至 SaaS 與公有雲，需要一個具前瞻性（future-proof）的解決方案，為其應用提供安全且快速的存取。此外，隨著該綜合企業積極併購新業務，ZIA 與 ZPA 將使其能快速整合被併購公司。這次最新採購使該客戶在 Zscaler 的年度總支出倍增。

A Fortune 500 bank with headquarters in Asia that purchased our Business Bundle for 38,000 users 2 years ago completed the addition of 12,000 users and upgraded all 50,000 users to the Transformation Bundle. The driver of this deal was the need to upgrade security posture for all employees at any location on any device using a cloud-based integrated platform. They also required granular policies to control access to certain applications for defined roles such as restricting web mail and chat access for traders during the trading window. In addition, they purchased our Data Loss Prevention solution to help meet stringent regulatory requirements.

一家總部位於亞洲的《財富》500 大銀行，於 2 年前為 38,000 名使用者購買了我們的 Business Bundle，近期完成新增 12,000 名使用者，並將全部 50,000 名使用者升級至 Transformation Bundle。此交易的驅動因素，是需要透過雲端整合平台，讓所有員工在任何地點、任何裝置上都能提升安全態勢。他們也需要更細緻的政策，以針對特定角色控管對某些應用的存取，例如在交易時段限制交易員使用網頁郵件與聊天功能。此外，他們也購買了我們的資料外洩防護（Data Loss Prevention）解決方案，以協助符合嚴格的監管要求。

Let me say a few words about the competitive landscape. As organizations increasingly make the shift to the cloud, traditional firewall and VPN vendors are finally acknowledging that their legacy security appliances can't secure the new digital enterprise and are attempting to build a security cloud using single-tenant software designed for on-premise appliances. Just like you can't create a Netflix service by stacking thousands of DVD players in the cloud, you can't offer an in-line high-performance security cloud by spinning up a bunch of virtual machines in a public cloud. This is a defensive strategy of cloud imitators, which, in our view, serves the self-preservation of the vendor, not the needs of the customers.

我想談幾句競爭態勢。隨著組織日益轉向雲端，傳統防火牆與 VPN 供應商終於承認其既有的資安設備無法保護新的數位企業，並嘗試以為內部部署設備設計的單租戶軟體，在雲端打造所謂的安全雲。就像你不可能把成千上萬台 DVD 播放器堆到雲端就做出 Netflix 服務一樣，你也不可能在公有雲中啟動一堆虛擬機器，就提供可內嵌（in-line）的高效能安全雲。在我們看來，這是雲端模仿者的防禦策略，服務的是供應商的自我保全，而非客戶的需求。

We believe we have a significant competitive advantage as a result of the technology, architecture and maturity of our cloud security platform, including: One, we were born in the cloud, for the cloud just like Salesforce and Workday. Two, we have a purpose-built globally distributed multi-tenant cloud for fast user experience. Unlike imitation clouds, Zscaler requires no backhauling from front doors to a central "compute" data center of a public cloud. Three, we perform SSL inspection at scale as a purpose-built proxy for better security. Four, we deliver Zero Trust Network Access that provides application access without network access, reducing business risk, unlike firewalls and VPNs.

我們相信，憑藉雲端資安平台的技術、架構與成熟度，我們具備顯著的競爭優勢，包括：第一，我們生於雲端、為雲端而生，就像 Salesforce 與 Workday 一樣。第二，我們擁有專為快速使用者體驗打造、全球分散式的多租戶雲。不同於模仿型雲端，Zscaler 不需要從前端入口回傳（backhauling）到公有雲的中央「運算」資料中心。第三，我們以專用代理（proxy）在規模化情境下進行 SSL 檢查，以提供更佳的安全性。第四，我們提供零信任網路存取（Zero Trust Network Access），在不提供網路層存取的情況下提供應用程式存取，降低業務風險，這點不同於防火牆與 VPN。

And lastly, we have over 10 years of experience running a mission-critical in-line cloud for Global 2000 customers, processing 65 billion transactions a day. As someone said, there is really no compression algorithm for experience.

最後，我們在為《全球 2000 大》客戶營運關鍵任務、可內嵌（in-line）的雲端服務方面，已有超過 10 年經驗，每天處理 650 億筆交易。正如有人所說，經驗其實沒有什麼壓縮演算法可言。

We continue to innovate and invest in maintaining our significant technology lead. Our latest fourth-generation large data centers provide multiple 100 gigabits per second links. We continue our strategy of targeted tuck-in acquisitions. Our previously announced TrustPath acquisition is already well integrated into the Zscaler platform, and their machine learning and AI technology is helping us deliver better threat detection. Just this week, we acquired Appsulate, a pre-revenue browser isolation company with a talented group of developers. This technology is highly effective for use cases where the Internet or application content should not be downloaded to the end point due to security or data protection concerns; instead, it should be rendered as pixels in the browser. We plan to incorporate this technology into our extensible cloud platform.

我們持續創新並投資，以維持顯著的技術領先。我們最新的第四代大型資料中心提供多條每秒 100Gb 的連線。我們持續推動聚焦且互補的併購（tuck-in acquisitions）策略。先前宣布的 TrustPath 收購案已與 Zscaler 平台高度整合，其機器學習與 AI 技術正協助我們提供更好的威脅偵測。就在本週，我們收購了 Appsulate——一家尚未產生營收的瀏覽器隔離（browser isolation）公司，擁有一支才華洋溢的開發團隊。此技術對於因資安或資料保護疑慮而不應將網際網路或應用內容下載到端點的使用情境非常有效；取而代之的是在瀏覽器中以像素方式呈現。我們計畫將此技術納入我們可擴充的雲端平台。

We remain focused on execution and are investing in our go-to-market capabilities. We are welcoming a new VP and General Manager in EMEA with substantial experience in selling to large enterprises to help us scale EMEA to the next level. We will be holding our annual Zenith Live Cloud Summit in Las Vegas on September 16 through 18 and Zenith Live Europe in Lisbon, Portugal on September 30 through October 2. We will have an inspiring lineup of keynote speakers to talk about cloud transformation.

我們仍專注於執行力，並投資於我們的市場推進（go-to-market）能力。我們將迎來一位新的 EMEA 區域副總裁暨總經理，具備豐富的大型企業銷售經驗，協助我們將 EMEA 規模提升到下一個層級。我們將於 9 月 16 日至 18 日在拉斯維加斯舉辦年度 Zenith Live Cloud Summit，並於 9 月 30 日至 10 月 2 日在葡萄牙里斯本舉辦 Zenith Live Europe。我們將安排一系列具啟發性的主題演講者，分享雲端轉型。

In summary, we are very pleased with our strong Q3 results and continued growth in our business. We believe we are in the early innings of a significant market opportunity to disrupt traditional network security.

總結來說，我們對第三季強勁的業績與業務持續成長感到非常滿意。我們相信，我們仍處於一個重大市場機會的早期階段，有望顛覆傳統網路安全。

I would like to now turn over the call to Remo to walk through our financial results.

接下來我想把電話會議交給 Remo，請他帶大家回顧我們的財務結果。

Thank you, Jay. As Jay mentioned, we had a very strong Q3. Revenue for the quarter was $79.1 million, up 6% sequentially and 61% year-over-year. For the sequential comparison, recall that Q2 revenue was aided by $2.3 million in non-recurring revenue from a large public sector customer deploying our solution in as a private cloud. From a geographic perspective, for the quarter, Americas represented 51% of revenue, EMEA was 41% and APJ was 8%.

謝謝你，Jay。如 Jay 所提到的，我們第三季表現非常強勁。本季營收為 7,910 萬美元，較前一季成長 6%，年增 61%。就季比而言，請記得第二季營收受惠於一筆 230 萬美元的一次性（non-recurring）營收，來自一位大型公部門客戶以私有雲方式部署我們的解決方案。從地區來看，本季美洲占營收 51%，EMEA 占 41%，APJ 占 8%。

Turning to calculated billings, which we define as the change in deferred revenue for the quarter plus total revenue recognized in that quarter. Billings grew 55% year-over-year to $85 million. As a reminder, our contract terms are typically 1 to 3 years, and we primarily invoice our customers 1 year in advance. Excluding upfront greater than 1 year billings in both periods, billings growth was over 60%. Total backlog, which represents remaining performance obligations, was $497 million on April 30, up 63% from $305 million 1 year ago.

接著談計算後帳單金額（calculated billings），我們將其定義為本季遞延收入的變動，加上本季認列的總營收。帳單金額年增 55% 至 8,500 萬美元。提醒一下，我們的合約期間通常為 1 至 3 年，且主要以預先開立 1 年期發票為主。若排除兩期中一次性預收超過 1 年的帳單金額，帳單金額成長超過 60%。截至 4 月 30 日，總待履約金額（total backlog，代表剩餘履約義務）為 4.97 億美元，較 1 年前的 3.05 億美元成長 63%。

Please keep in mind that next quarter, we'll have a difficult comparison with a large public sector deal that closed in Q4 2018. This deal added $16.5 million to billings and $26 million to backlog in the July quarter, which will pose a difficult year-over-year comparison in Q4.

請留意，下個季度我們將面臨一個較具挑戰性的比較基期，因為 2018 年第四季曾完成一筆大型公部門交易。該交易在 7 月季度為帳單金額增加 1,650 萬美元，並為待履約金額增加 2,600 萬美元，這將使第四季的年對年比較更具挑戰。

Our strong customer retention and ability to up-sell have resulted in a consistently high dollar-based net retention rate, which was 118% for the period ended April 30. This compares to 120% a year ago and 118% last quarter. Our increased success selling bigger deals upfront, which start with the Transformation Bundle, and faster up-sells within a year, while good for our business, can reduce our net dollar retention rate, which is calculated on a year-over-year ARR basis. Given these factors, we feel 118% is outstanding and will vary quarter-to-quarter.

我們強勁的客戶留存與加購能力，使以金額計的淨留存率（dollar-based net retention rate）長期維持在高水準；截至 4 月 30 日止期間為 118%。相較之下，1 年前為 120%，上一季為 118%。我們在前期成功簽下更大型交易（通常從 Transformation Bundle 開始），以及在 1 年內更快速的加購，雖然對業務有利，但可能會降低我們以年對年 ARR 為基礎計算的淨金額留存率。考量這些因素，我們認為 118% 仍是非常出色的表現，且會隨季度而波動。

Total gross margin was 82%, up 2% sequentially and 1% year-over-year. We feel that 80% continues to be a good target in the near-to-medium term as it is important to continue to invest in our platform to drive top line revenue growth.

總毛利率為 82%，較前一季上升 2%，較去年同期上升 1%。我們認為在近至中期，80% 仍是良好的目標，因為持續投資我們的平台以推動營收（top line）成長非常重要。

Turning to operating expenses. Our total operating expenses increased 18% sequentially and 38% year-over-year to $58.9 million but decreased on a year-over-year basis to 74% of revenue. The sequential increase in operating expenses is primarily due to increased headcount, compensation-related expenses, marketing expenses and professional fees. We increased our head count in Q3 by over 110 employees, and approximately 40% were in sales and marketing.

接著談營業費用。我們的總營業費用較前一季增加 18%，較去年同期增加 38%，達到 5,890 萬美元，但以營收占比來看，較去年同期下降至營收的 74%。營業費用的季增主要來自人力增加、薪酬相關費用、行銷費用以及專業服務費用的增加。我們在第三季增加了超過 110 名員工，其中約 40% 在銷售與行銷部門。

Sales and marketing increased 17% sequentially and 37% year-over-year to $38.8 million. The increase is primarily due to headcount increases, compensation-related expenses and marketing expenses.

銷售與行銷費用較前一季增加 17%，較去年同期增加 37%，達到 3,880 萬美元。增加主要來自人力擴增、薪酬相關費用以及行銷費用。

R&D was up 15% sequentially and up 30% year-over-year to $12.3 million as we continue to invest to enhance product functionality and to offer new products. G&A increased 32% sequentially and increased 43% year-over-year to $7.8 million. The growth in G&A includes investments in building our teams, compensation-related expenses, professional fees, including acquisition-related expenses. G&A expenses exclude $6.2 million in litigation-related expenses, including the settlement of the Finjan lawsuit.

研發費用較前一季增加 15%，較去年同期增加 30%，達到 1,230 萬美元，因為我們持續投資以強化產品功能並推出新產品。一般及行政（G&A）費用較前一季增加 32%，較去年同期增加 43%，達到 780 萬美元。G&A 的成長包含對團隊建置的投資、薪酬相關費用、專業服務費用（包括與收購相關的費用）。G&A 費用不包含 620 萬美元的訴訟相關費用，其中包括 Finjan 訴訟的和解。

Our third quarter operating margin was a positive 8%, which compares to a negative 6% in the same quarter last year. Net income for the quarter was $7.4 million or non-GAAP earnings per share of $0.05. We ended the quarter with $353 million in cash, cash equivalents and short-term investments. Free cash flow was positive $4.6 million in the quarter compared to positive $3.7 million for the same quarter a year ago.

我們第三季的營業利益率為正 8%，相較去年同期同一季為負 6%。本季淨利為 740 萬美元，或非 GAAP 每股盈餘 0.05 美元。本季結束時，我們持有現金、約當現金及短期投資共 3.53 億美元。本季自由現金流為正 460 萬美元，去年同期為正 370 萬美元。

Please keep in mind in the quarter, we made a payment of $7.3 million to settle the Finjan lawsuit, and we had a positive impact from our ESPP program, which contributed $4 million to our free cash flow. The ESPP program does not impact our overall cash balance.

請記得，本季我們支付了 730 萬美元以和解 Finjan 訴訟，同時我們的員工股票購買計畫（ESPP）帶來正面影響，為自由現金流貢獻了 400 萬美元。ESPP 計畫不會影響我們的整體現金餘額。

Now moving on to guidance. As a reminder, these numbers are all non-GAAP, which excludes stock-based compensation expenses, amortization of intangible assets, certain litigation-related expenses and any associated tax effects.

接下來談財測。提醒一下，以下數字皆為非 GAAP，排除股權基礎薪酬費用、無形資產攤銷、特定訴訟相關費用及任何相關稅務影響。

For the fourth quarter, we expect revenue in the range of $81 million to $83 million, reflecting year-over-year growth of 44% to 48%; operating profit in the range of $0 to $2 million; income taxes of $700,000; and earnings per share of approximately $0.01 to $0.02, assuming 138 million common shares outstanding.

第四季方面，我們預期營收介於 8,100 萬至 8,300 萬美元，反映年增 44% 至 48%；營業利益介於 0 至 200 萬美元；所得稅 70 萬美元；每股盈餘約 0.01 至 0.02 美元，假設流通在外普通股為 1.38 億股。

For the full year 2019, we expect revenue in the range of $298 million to $300 million or year-over-year growth of 57% to 58%; billings in the range of $379 million to $381 million or year-over-year growth of 47% to 48%; operating profit in the range of $17 million to $19 million; income taxes of $2.2 million; and earnings per share in the range of $0.16 to $0.18, assuming approximately 136 million common shares outstanding.

2019 全年方面，我們預期營收介於 2.98 億至 3.00 億美元，年增 57% 至 58%；帳單金額（billings）介於 3.79 億至 3.81 億美元，年增 47% 至 48%；營業利益介於 1,700 萬至 1,900 萬美元；所得稅 220 萬美元；每股盈餘介於 0.16 至 0.18 美元，假設流通在外普通股約 1.36 億股。

The acquisition of Appsulate is expected to have little to no impact on revenue either in Q4 or fiscal '20 as we are primarily acquiring technology and the development team. Our plan is to further develop this technology and incorporate it into our platform. The deal was all cash with a purchase price of approximately $13 million. We expect to incur approximately $7 million to $9 million in additional operating expenses in fiscal '20 related to the acquisition and to build up new services.

收購 Appsulate 預期在第四季或 2020 財年對營收幾乎沒有影響，因為我們主要是收購技術與研發團隊。我們的計畫是進一步開發這項技術並將其整合到我們的平台中。此交易為全現金，收購價格約 1,300 萬美元。我們預期在 2020 財年因本次收購及建立新服務而增加約 700 萬至 900 萬美元的額外營業費用。

As reflected in our guidance, I would emphasize that our plans are not to maximize profitability or generate additional operating leverage in the near-term but to invest aggressively in our business to pursue our significant market opportunity. We plan to continue to invest in our sales organization and marketing programs as well as increase investments in our technology platform and cloud infrastructure. We're very proud of what we've achieved and look forward to building on our opportunity.

如同我們的財測所反映，我要強調的是，我們近期的計畫並非追求最大化獲利或在短期內創造更多營業槓桿，而是要積極投資我們的業務，以把握龐大的市場機會。我們計畫持續投資銷售組織與行銷方案，同時加大對技術平台與雲端基礎設施的投資。我們對已達成的成果深感自豪，並期待在此機會上持續拓展。

Now I will hand the call back over to Jay.

現在我把電話交回給 Jay。

Thank you, Remo. We believe we are the best choice to secure cloud transformation. The right architecture for security cloud matters. On-premise, single-tenant architecture, whether deployed as appliances or as virtual machines in a public cloud will not allow enterprises to fully realize the benefits of cloud. These imitators cannot scale, leave gaps in security, are expensive and deliver poor user experience. With multiple tailwinds such as SaaS adoption, SD-WAN and application migration to public clouds, we believe the market is coming to us.

謝謝你，Remo。我們相信，我們是確保雲端轉型安全的最佳選擇。安全雲的正確架構至關重要。內部部署的單租戶架構，無論是以設備（appliances）部署，或是在公有雲中以虛擬機部署，都無法讓企業充分實現雲端的效益。這些模仿者無法擴展、會在安全性上留下缺口、成本高昂且提供不佳的使用者體驗。在 SaaS 採用、SD-WAN 以及應用程式遷移至公有雲等多重順風因素推動下，我們相信市場正在向我們靠攏。

We thank you for your interest in Zscaler and look forward to reporting on our progress in the future.

感謝各位對 Zscaler 的關注，我們期待未來向各位報告我們的進展。

Operator, you may now open the call for questions.

接線員，您現在可以開放提問。

(Operator Instructions)

(接線員指示)

We'll take our first question from Brad Zelnick with Credit Suisse.

我們先接第一個問題，來自瑞士信貸（Credit Suisse）的 Brad Zelnick。

Jay, Remo and Bill, congrats to you and the team on another great quarter. I mean 55% billings growth, over 60% excluding upfront deals is truly impressive. My question, Jay, at the risk of getting too deep into the technology, and you talked about this briefly in your prepared remarks, but I'm hoping you can help us understand your differentiation versus some of the competitors that are leveraging public cloud partnerships to compete with Zscaler. Why might this make sense or not make sense? And what are you seeing when you go head to head in proof of concept with these types of solutions? Are they able to perform and deliver on all the capabilities that you are?

Jay、Remo 和 Bill，恭喜你們以及團隊又交出一個很棒的季度表現。我的意思是，帳單金額成長 55%，若排除預收（upfront）交易更是超過 60%，確實令人印象深刻。我的問題是，Jay，冒著把技術細節講得太深的風險，你在事先準備的發言中也稍微提到，但我希望你能幫助我們理解：相較於一些競爭對手透過公有雲合作夥伴來與 Zscaler 競爭，你們的差異化在哪裡？為什麼這樣做可能合理或不合理？以及當你們在概念驗證（proof of concept）中與這類解決方案正面交鋒時，你們看到了什麼？他們是否能夠表現良好並交付你們所具備的所有能力？

Brad, thank you. Very good questions. Appliance vendors are having to compete for the cloud using technology that wasn't meant for the cloud. So when they are spinning these virtual machines on public cloud and claiming to have presence in 100 locations or more, it's totally misleading. Let me walk through a little bit on how these public clouds work. Google, AWS, they are very large centralized data centers in about 100 locations around the world. They call them regions. That's where applications run. That's where storage and compute actually runs.

Brad，謝謝你。問題非常好。設備型供應商不得不用原本不是為雲端而設計的技術來競爭雲端市場。因此，當他們在公有雲上啟動這些虛擬機，並宣稱在 100 個或更多地點有部署據點時，這完全具有誤導性。我先簡單說明一下這些公有雲是如何運作的。Google、AWS 這些都是非常大型、集中式的資料中心，分布在全球約 100 個地點。他們稱之為區域（regions）。應用程式在那裡運行。儲存與運算實際上也在那裡運行。

Now in addition, they have 100-some locations. Some of them call them points of presence, others call them network edge locations. And these are front doors that collect information so that the thing can be sent to the regions, which are about 20 or so. So these clouds are built to run applications as the destinations, not an in-transit cloud. For example, take AWS data center in Ohio, AWS kind of staying away from Chicago, so the traffic goes there and comes back. Speed of light is speed of light. So the performance can't be good unless you build a cloud that's distributed to handle security to enforcement, hence the response time architecturally can't be good.

此外，他們還有一百多個地點。有些稱為存在點（points of presence），有些稱為網路邊緣節點（network edge locations）。這些是前端入口，用來收集資訊，然後把資料送往區域（regions），而區域大約只有 20 個左右。因此，這些雲是為了作為目的地來運行應用程式而建構的，而不是用來做「傳輸途中」（in-transit）的雲。例如，以位於俄亥俄州的 AWS 資料中心為例，AWS 某種程度上避開芝加哥，因此流量會先繞到那裡再回來。光速就是光速。所以除非你建構一個分散式的雲來處理安全性執行（security enforcement），否則效能不可能好；因此從架構上看，回應時間也不可能好。

The second part of your question was about POCs. We actually don't really do our business through POCs. We are driving top-down cloud transformation through the CIOs. So none of this is impacting us from POCs point of view.

你問題的第二部分是關於 POC。我們其實並不太透過 POC 來推動業務。我們是透過 CIO 來推動由上而下的雲端轉型。所以從 POC 的角度來看，這些都不會影響到我們。

Yes. Brad, I want to clarify that Jay meant to say the true compute on these hyperscale are done on centralized data centers that really number around 20, and the 100-plus are really what they call point of presence or network edge locations. And they're where content is either pushed or, in inspection service like this, backhauled, so it's backhauling collection points.

是的。Brad，我想澄清一下，Jay 的意思是，這些超大規模雲的真正運算是在集中式資料中心完成的，這類資料中心大約只有 20 個；而 100 多個其實是他們所稱的據點（point of presence）或網路邊緣位置。內容會在那裡被推送，或者像這種檢測服務會回傳（backhaul），所以它們是回傳的收集點。

And if I could just follow up one for Remo. Remo, I believe you went through this in your prepared remarks. But on cash flow, I think you might have come in a little bit lighter than some had been expecting, but you did settle the Finjan lawsuit and then there's also, I think, the offset from the ESPP. Can you just walk us through that clearly one more time? And also, as we go out to Q4, how should we think about cash flow seasonality?

另外我想再追問 Remo 一點。Remo，我相信你在事先準備的講稿裡有提到。但就現金流而言，我覺得你們可能比一些人預期的略低一些，不過你們已經和 Finjan 訴訟達成和解，另外我想也有 ESPP 的抵銷影響。你能不能再清楚地帶我們走一遍？另外，展望到 Q4，我們應該如何看待現金流的季節性？

Yes. Thank you, Brad. So we did pay the Finjan settlement in April for $7.2 million, which had a negative impact on free cash flow. As we've talked about, the ESPP program and once we hold funds from employees for the ESPP program, that's a positive impact, and that was about $4 million during the quarter.

好的。謝謝你，Brad。我們在 4 月支付了 Finjan 和解金 720 萬美元，這對自由現金流造成了負面影響。如同我們談過的，ESPP 計畫在我們代員工保留資金期間，會帶來正面影響，本季大約是 400 萬美元。

As we go forward and you think about Q4 on a free cash flow basis, if you look at seasonality that we have, our Q2s and our Q4s are our largest quarters from a business and billings perspective. Our Q1s and Q3s are smaller. So the cash flow -- free cash flow impact for Q4 will be impacted by that.

往後看、你在思考 Q4 的自由現金流時，如果看我們的季節性，我們的 Q2 和 Q4 在業務與帳單（billings）角度是最大的季度。Q1 和 Q3 較小。因此，Q4 的現金流——自由現金流——會受到這點影響。

In addition, with the Appsulate acquisition, overall cash flow will decline based on the payment we'll make and we have made in the last few days.

此外，隨著 Appsulate 的收購，整體現金流將因為我們將要支付、且在過去幾天已經支付的款項而下降。

We'll take our next question from Patrick Colville with Arete Research.

接下來我們將接聽 Arete Research 的 Patrick Colville 的提問。

Congrats on an amazing quarter. Can I ask you about -- one of your competitors is having a lot of internal issues and just how Zscaler kind of react to that. Does it change your planning? Have you become more aggressive? Does it change the dialogue with customers? How are you guys reacting to your chief competitor being extremely weak at the moment?

恭喜你們有個非常出色的季度。我想請教——你們的一位競爭對手正面臨很多內部問題，Zscaler 對此是如何反應的。這會改變你們的規劃嗎？你們是否變得更積極？這會改變與客戶的對話嗎？面對你們的主要競爭對手目前非常疲弱，你們是如何應對的？

Thank you for the question. If we were selling a security box or a proxy box in the same channel, looking for refresh opportunities, this will be a big impact. We have always said we have been selling top-down transformation. Our need is driven by applications like Office 365, projects like SD-WAN. So our core business comes from securing new local breakouts, which is a greenfield opportunity. But in almost all cases, when Zscaler is deployed, we end up replacing secure web gateway or web proxy that's generally sitting in centralized locations.

謝謝你的提問。如果我們是在同一通路銷售安全設備或代理設備、尋找汰換（refresh）機會，那這會帶來很大的影響。我們一直都說我們賣的是由上而下的轉型。我們的需求是由 Office 365 這類應用、以及 SD-WAN 這類專案所驅動。因此，我們的核心業務來自於保護新的本地分流（local breakouts），這是一個綠地（greenfield）機會。但幾乎在所有情況下，當部署 Zscaler 時，我們最終會取代通常放在集中式位置的安全網關（secure web gateway）或網頁代理（web proxy）。

So weak competitors, does it help us generally? Yes. Does it change our sales process? Not really.

所以競爭對手疲弱，整體而言對我們有幫助嗎？有。但這會改變我們的銷售流程嗎？不太會。

Got it. Got it. And can I ask about ZPA if possible. I mean that's a product that clearly has a ton of potential and I'd assume it's going to be one of the major growth drivers from here. I mean we didn't talk about that much in the quarter. Is that just because the business is being driven by ZIA right now, and that's where the kind of focus is? Or just any color on ZPA would be awesome.

了解。了解。如果可以的話，我想問一下 ZPA。我的意思是，這個產品顯然有很大的潛力，我也假設它會是接下來主要的成長驅動之一。但我們這一季沒有談太多。這是因為目前業務主要由 ZIA 帶動、所以焦點在那裡嗎？或者能否多分享一些關於 ZPA 的資訊？

Yes. So while ZIA platform is growing fast, ZPA is growing much faster. But it's hard for ZPA to catch up with ZIA. So if you think about the deals we talked about, a number of our large deals, ZIA, ZPA, they both came together. So we have seen more and more attach rate of ZPAs, and we are very bullish with the opportunity, but it's a relatively new technology in a relatively new market. But we're seeing very, very good traction and bullish about the opportunity.

是的。雖然 ZIA 平台成長很快，ZPA 的成長更快。但 ZPA 要追上 ZIA 仍然不容易。所以如果你想想我們提到的那些交易，我們不少大型案子是 ZIA、ZPA 一起成交的。因此我們看到 ZPA 的搭售率（attach rate）越來越高，我們對這個機會非常樂觀，但它是在相對新的市場中的相對新技術。不過我們看到非常、非常好的進展，對這個機會也很看多。

We'll now move on to our next question from Alex Henderson with Needham & Company.

接下來我們進入 Needham & Company 的 Alex Henderson 的提問。

Was hoping you guys could talk a little bit about the degree to which you have any challenges in hiring of salespeople, what the environment looks like and how much of the spending is going into new hires to drive future growth. It seems like given the difficult market out there that, that may be a challenge to continue to scale at that rate. Is that an issue that we should be concerned about?

希望你們能談談在招募銷售人員方面是否有任何挑戰，目前環境看起來如何，以及有多少支出是投入在新進人員上以推動未來成長。看起來在外部市場較為艱難的情況下，要以那樣的速度持續擴張可能會是一個挑戰。這會是我們需要擔心的問題嗎？

It is a competitive environment, Alex. This is Remo. However, I think we are doing well on the hiring front. It's something that we are investing in significantly, we're not giving out what our RSM count is. However, when you take a look at sales and marketing headcount, it remains in the 40%, 45% range of our total company head count. This last quarter, we added over 110 employees, approximately 40 were in sales and marketing. In some of the regions, it's easier than others. And I had a conversation with one of our VPs this morning who's bullish related to hiring.

Alex，這確實是個競爭激烈的環境。我是 Remo。不過我認為我們在招募方面做得不錯。這是我們正在大幅投資的事情，我們不會公布 RSM 的人數。但如果你看銷售與行銷的人力編制，它仍占我們公司總人數的 40% 到 45% 左右。上一季我們新增了超過 110 名員工，其中約 40 名在銷售與行銷。在某些地區比其他地區更容易。而且我今天早上和我們一位副總裁聊過，他對招募也很樂觀。

So I think that Zscaler being a public company for about a year now as well as the momentum that we're having as well as the market continuing to come to us, with our performance, I think we're getting more visibility. And we're hopeful that we're going to do a good job in hiring our sales and marketing people as we continue to go forward.

所以我認為，Zscaler 成為上市公司大約一年，加上我們目前的動能，以及市場持續向我們靠攏、再加上我們的表現，我覺得我們獲得了更多能見度。我們也希望在未來持續前進的過程中，能把銷售與行銷人才招募工作做好。

As Jay mentioned, our focus is sales and marketing. In addition, we're a technology company. So we're looking to continue to do development through tuck-in-type acquisitions as well as growing our R&D organization.

如 Jay 所提到的，我們的重點是銷售與行銷。此外，我們也是一家科技公司。因此我們也希望透過補強型（tuck-in）收購來持續進行開發，同時擴大我們的研發組織。

So when you think about the sales expansion, are you starting to see any leverage as a result of increased recognition or other variables that would allow the productivity of your sales teams to start to see higher deliverables on a per capita basis?

那麼當你思考銷售擴張時，你們是否開始看到因為知名度提升或其他變數而帶來的槓桿效應，使得銷售團隊的人均產出開始提高？

Yes. For our tenured salespeople, we're certainly seeing that they're doing well on a quota basis. Overall, when we look at year-over-year, take a look at the sales productivity in Q3 of 2018 versus Q3 of 2019, absent anything related to the one-time large deal, the sales productivity is flattish to up, which is what we planned for, for the year. The reason for that is that we're trying to aggressively hire. We see this as a large market opportunity, and we understand that it comes down to execution.

是的。對於資深的銷售人員，我們確實看到他們在配額（quota）達成上表現良好。整體而言，當我們看年對年比較、也就是 2018 年 Q3 相對 2019 年 Q3 的銷售生產力，在排除那筆一次性大型交易的影響後，銷售生產力大致持平到略增，這也符合我們對今年的規劃。原因在於我們正嘗試積極招募。我們認為這是一個龐大的市場機會，也理解最終取決於執行力。

From our perspective, we have the product, the market is there, and the need is there. Really, from our perspective, we just need to continue to hire salespeople, solution architects, CXOs and also to build our support organization to support the product both from a personnel perspective that support people, professional services as well as in our cloud operations.

從我們的角度來看，我們有產品，市場也在，而且需求也在。坦白說，從我們的角度來看，我們只需要持續招募業務人員、解決方案架構師、CXO（高階主管），同時也要建立我們的支援組織，從人員支援、專業服務以及雲端營運等面向來支援產品。

We'll move on to our next question from Saket Kalia with Barclays.

接下來我們進入下一個問題，由 Barclays 的 Saket Kalia 提問。

Maybe first for you, Remo. First of all, thanks a lot for the updated billings guidance. You spoke about in your prepared remarks last Q4, we had a large multiyear upfront deal that swayed the sequential growth. Can you just talk about what sort of typical Q4 billing seasonality looks like if you exclude those maybe historically? And the corollary to that is can you just talk about the overall pipeline for multiyear upfront deals in general?

也許先請教你，Remo。首先，非常感謝你更新了帳單（billings）指引。你在上次 Q4 的事先準備發言中提到，我們有一筆大型多年期一次性預付的交易，影響了季對季成長。如果把那類交易排除、以歷史情況來看，你能談談典型的 Q4 帳單季節性大概是什麼樣子嗎？以及延伸問題是，你能談談整體多年期一次性預付交易的一般管線狀況嗎？

Good questions. So when you take out that public sector deal out of Q4, you look at the guidance that we are giving for this Q4, it implies a billings guidance of 46% to 48%, which is consistent to our revenue guidance, 44% to 48%. So typically, Q4 as you mentioned, is our strongest seasonal quarter, and Q2 and Q4 are our top 2 quarters.

好問題。所以當你把 Q4 的那筆公部門交易排除後，再看我們這次給出的 Q4 指引，它隱含的帳單指引為 46% 到 48%，這與我們的營收指引 44% 到 48% 一致。因此通常如你所說，Q4 是我們季節性最強的一季，而 Q2 和 Q4 是我們表現最好的兩個季度。

From a pipeline perspective, we don't comment what our pipeline is. We take a look at things related to what we feel may be multiyear-type deals. Our methodology related to the guidance that we have given has not changed. So we feel that the guidance that we have, when you take out that large upfront deal from last year, at 46% to 48% on a year-over-year basis is very good.

就管線而言，我們不評論我們的管線狀況。我們會檢視與我們認為可能屬於多年期類型交易相關的事項。我們用於制定本次指引的方法論沒有改變。因此我們認為，在排除去年那筆大型預付交易後，以年對年 46% 到 48% 的指引來看是非常不錯的。

Got it. Got it. Maybe for you, Jay, just to learn a little bit more about the ZPA offering. I guess the question is, do the number of subscribers for ZPA differ versus ZIA, in a typical deal that is? ZIA clearly has broad use cases for local Internet breakout. But do those same customers typically subscribe to a similar seat count for ZPA for VPN? Or is it typically lower? I'm just thinking about some of the examples that you gave in your prepared remarks. It felt like there were some differences in seat counts. Can you talk a little bit to that?

了解。了解。也許請教你，Jay，我想更深入了解一下 ZPA 產品。我的問題是，在一筆典型交易中，ZPA 的訂閱者數量是否會與 ZIA 不同？ZIA 顯然在本地網際網路出口（local Internet breakout）方面有廣泛的使用情境。但同一批客戶在用 ZPA 取代 VPN 時，通常也會以相近的席位數（seat count）訂閱嗎？還是通常會更低？我在想你在事先準備發言中提到的一些例子。感覺席位數似乎有些差異。你能談談這點嗎？

Yes. Saket, good observation. As we have always said, for ZIA, when customers buy the platform, they want to protect every employee in the company who goes to Internet or SaaS applications. So hence, it's almost always all employees. When you look at ZPA, it is about access to certain type of applications. So the number of ZPA subscribers is generally lower than ZIA.

是的。Saket，你觀察得很好。正如我們一直說的，對於 ZIA，當客戶購買平台時，他們希望保護公司內每一位會使用網際網路或 SaaS 應用的員工。因此幾乎總是涵蓋所有員工。而 ZPA 著重於存取特定類型的應用程式。所以 ZPA 的訂閱者數通常會低於 ZIA。

If I were to give you a broad range, it ranges somewhere from 10% to 15% of the ZIA users so far. In some cases, if it's VPN replacement, that may be 30%, 40% of the total users. In other cases, it's M&A integration. It may be the number of employees they need to integrate from the company being acquired. So in the short term, the number will be a subset, probably 20%, 30%, 40%, 50% would be the range. But I think over time as everyone moves to the cloud, and you don't have a notion of "I must be in the office to access applications," eventually, everyone will need to use ZPA.

如果要給你一個大致範圍，目前大約是 ZIA 使用者的 10% 到 15%。在某些情況下，如果是 VPN 替換，可能會是總使用者的 30%、40%。在其他情況下，可能是併購（M&A）整合。那可能取決於他們需要整合的被收購公司員工數。因此短期內，數量會是其中一部分，範圍大概會落在 20%、30%、40%、50%。但我認為，隨著時間推移、當所有人都轉向雲端，而且不再有「我必須在辦公室才能存取應用」這種概念時，最終每個人都會需要使用 ZPA。

So ZPA starts with smaller number of users and grows over time.

因此，ZPA 會從較少的使用者數開始，並隨時間成長。

We'll hear now from Andrew Nowinski with Piper Jaffray.

接下來我們聽取 Piper Jaffray 的 Andrew Nowinski 提問。

Congratulations on another great quarter. I guess I just want to follow up on the billings guidance for Q4 just to make sure I understand this. I know you did have a tough comp. That $60 million deal, as you pull it out, it is in line with your normal seasonality. But you just put up 55% growth off of another very similar difficult comp, and your backlog continues to grow well above your billings growth rate. So I'm just wondering, is there any other factors in there other than just some conservatism that we should consider for the Q4 guidance on billings?

恭喜你們又交出一個很棒的季度。我想針對 Q4 的帳單指引追問一下，確認我理解正確。我知道你們確實面臨一個艱難的比較基期。那筆 6,000 萬美元的交易如果排除掉，就符合你們正常的季節性。但你們剛剛在另一個非常類似、同樣困難的比較基期之上，仍做出 55% 的成長，而且你們的遞延訂單（backlog）持續以遠高於帳單成長率的速度成長。所以我想問，除了較為保守之外，Q4 帳單指引是否還有其他我們應該考量的因素？

We like to be prudent with our guidance, and that's historically what we've done. And we continue to do that.

我們在指引上喜歡保持審慎，這一直是我們歷來的做法。而我們也會持續如此。

Okay. I got it. And then as it relates to your large deals, can you guys give any color on the duration of the large deals that you cited in your prepared remarks and whether that duration of your large deals may be different than some of your other deals? Are they longer or shorter in duration?

好的。我了解。另外，關於你們提到的大型交易，你們能否就事先準備發言中引用的大型交易期限提供一些說明？以及這些大型交易的期限是否可能與你們其他交易不同？它們的期限是更長還是更短？

So historically, for looking at the 4 quarter average for new customers, the duration of those deals has been in the 70% range, which are 3 years or greater. So that's remained relatively consistent since our public offering. So really no change in the duration. Related to the billing timing, from our perspective, we bill annually. And if customers pay upfront for the full 3 years, it's not something we compensate for. It's something done by the customer.

所以從歷史來看，以新客戶的四季平均來看，這些交易的期限有約 70% 是 3 年或以上。自我們上市以來，這一直相對一致。因此交易期限其實沒有變化。至於帳單開立時間點，從我們的角度來看，我們是按年開立帳單。如果客戶選擇一次預付完整 3 年費用，我們不會因此提供額外補償。那是客戶自行決定的。

Right. So if I may add and clarify. We have never incented our sales force to go into multiyear deals for upfront payment. Multiyear deals generally are annual payments with some exceptions that we call out.

對。如果我可以補充並澄清一下。我們從未激勵我們的銷售團隊去推動多年期且一次性預付的交易。多年期交易一般是按年付款，只有少數例外我們會特別說明。

Okay. That makes sense. Just actually, a quick clarification when you said you're not expecting to generate additional operating leverage presumably in the near term, does that mean on a margin basis or are those absolute dollar basis in terms of the operating expectations?

好的。這就合理了。再快速澄清一下：當你說你們預期短期內不會產生額外的營運槓桿時，你指的是利潤率（margin）層面，還是指營運預期在絕對金額（absolute dollar）層面？

Yes. It's on a margin basis, and we'll be giving guidance on the next call both for the quarter and the full year for revenue, billings and operating profitability. So we'll give more clarity on that. However, we wanted to make that comment. And this is the comment we're staying consistent with since our public offering. We understand that we have a model that is highly leveraged. We know we have the ability to increase operating profitability significantly with 80% gross margin. We know that we can increase free cash flow significantly. That is not our intent. Our intent is to continue to grow the market and have the market come to us.

是的。是以利潤率為基礎；我們會在下一次電話會議中，針對季度與全年提供營收、帳單以及營運獲利能力的指引。所以我們會提供更清楚的說明。不過，我們想先做出這個評論。而且這也是自我們上市以來一直保持一致的說法。我們理解我們的商業模式具有很高的槓桿性。我們知道在 80% 毛利率下，我們有能力大幅提升營運獲利能力。我們也知道我們可以大幅提升自由現金流。但那不是我們的意圖。我們的意圖是持續擴大市場，並讓市場主動走向我們。

We strongly feel that we have the best solution in the market. What we need to do is execute. Part of that execution is going to come at a cost, and that cost is spending money or spending funds for R&D, sales and marketing, for branding and to continue to build the infrastructure of Zscaler. Jay and myself both have significant experience related to running companies over the last 34 years.

我們強烈認為我們擁有市場上最好的解決方案。我們需要做的是把執行做好。而執行的一部分會伴隨成本，這個成本就是在研發、銷售與行銷、品牌，以及持續建置 Zscaler 的基礎設施上投入資金。Jay 和我在過去 34 年中都擁有經營公司的豐富經驗。

We have a finger on the pulse, and we are trying to maximize the value of the company for our shareholders, to build the presence of Zscaler, and to increase our market share.

我們掌握市場脈動，並且正努力為股東將公司價值最大化，建立 Zscaler 的市場能見度，並提升我們的市占率。

The comment related to operating profitability and free cash flow is that I know it's important from a Wall Street perspective, but from a company perspective, it's important for us to grow the market and become the market leader as quickly as we can. That's our focus.

關於營運獲利能力與自由現金流的評論是：我知道從華爾街的角度來看這很重要，但從公司的角度來看，對我們而言更重要的是擴大市場並盡快成為市場領導者。這就是我們的重點。

We'll take our next question from Gray Powell with Deutsche Bank.

我們的下一個問題來自德意志銀行（Deutsche Bank）的 Gray Powell。

So maybe just a high level. So we've seen some fairly volatile results from the security space this quarter, particularly from more of the on-prem-focused vendors. Obviously, you guys had some good numbers. But just curious, have you seen any change in customer behavior or buying patterns? And then just how do you feel about the demand environment for the rest of 2019 versus last year?

我先從高層次問一下。我們看到本季資安領域出現一些相當波動的結果，特別是較偏重內部部署（on-prem）的供應商。顯然你們的數字不錯。但我想了解的是，你們是否看到客戶行為或採購模式有任何改變？另外，相較於去年，你們如何看待 2019 年剩餘時間的需求環境？

Great. Thank you. Good question. Our solution delivers great ROI and lots of savings, which actually makes it very attractive even when the market spend slows down. And secondly, we are driven for helping customers do their cloud transformation, and transformation is a very high priority for CIOs. And our sales process is driven by that. We are not driven by "here's another security product that need to be sold, need to replace, need to refresh." So we aren't really seeing the impact of that slowdown. Remo, you want to add anything?

很好。謝謝。問得很好。我們的解決方案能帶來很高的投資報酬率（ROI）與大量節省成本，這其實使得即使市場支出放緩時也非常有吸引力。第二，我們的驅動力是協助客戶進行雲端轉型，而轉型對 CIO 來說是非常高的優先事項。我們的銷售流程也是由此驅動。我們不是被「這裡又有一個需要賣、需要替換、需要更新的資安產品」所驅動。所以我們並沒有真正看到那種放緩的影響。Remo，你要補充什麼嗎？

No. That's fine. Thank you.

不用。這樣就好。謝謝。

We'll take our next question from Daniel Ives with Wedbush.

我們的下一個問題來自 Wedbush 的 Daniel Ives。

My question more strategically, Jay, as you're talking to customers, maybe talk about how things are changing today versus even 6 to 9 months ago in terms of deals? And then maybe uphill versus downhill, are you getting more inbounds? Obviously, deal size continue to increase. Maybe you can just give some anecdotal commentary there to start off.

Jay，我的問題比較偏策略面。你在與客戶交流時，能否談談就交易（deals）而言，現在相較於甚至 6 到 9 個月前有哪些變化？另外，從逆風到順風的角度，你們是否收到更多主動上門的詢問（inbounds）？顯然交易規模持續增加。也許你可以先分享一些軼事性的觀察作為開場。

Yes. So a couple of comments I'll make in that area. A year or 2 years ago when I met with CIO, a number of them would say we're ready for the cloud, but still a good number of them will say we're still thinking, not quite sure. Today, it's hard to find a CIO or a CTO who doesn't want to embrace cloud, but they're worried about how to do it securely and how to do it without messing things up. So clear interest, the market movement is happening faster.

是的。我在這方面有幾點想說。一年前或兩年前我與 CIO 會面時，其中不少人會說我們已準備好上雲，但仍有相當一部分會說我們還在思考，還不太確定。今天，很難找到不想擁抱雲端的 CIO 或 CTO，但他們擔心的是如何安全地做到，以及如何在不把事情搞砸的情況下完成。所以興趣非常明確，市場的移動速度更快了。

And when they realize that, we have a good solution. Things move faster than they would move otherwise. That's why we've seen a larger deal flow than we were seeing before.

而當他們意識到我們有一個好的解決方案時，事情推進得會比原本更快。這也是為什麼我們看到的較大交易流量（deal flow）比以前更多。

Two, as the number of customers we have in the Global 2000 segment grows, these are large credible companies, these CTOs, CIOs are willing to speak publicly about the benefit they are deriving for security, for user performance, and cost savings. That's helping us quite a bit.

第二，隨著我們在 Global 2000 客戶區隔的客戶數增加，這些都是大型且具公信力的公司，這些 CTO、CIO 願意公開談論他們在資安、使用者效能以及成本節省方面所獲得的效益。這對我們幫助很大。

Three, I shared with you a couple of examples where our CXOs from our customers move to new customer, they're able to actually go in and say I'd like to bring Zscaler back. And so pleased with the environment. But as Remo said, we are just heads down focused on execution, but market feels good.

第三，我跟你分享過幾個例子：我們客戶的 CXO 轉任到新的公司後，他們能夠實際進去並說我希望把 Zscaler 帶回來。因此我們對整體環境很滿意。但如同 Remo 所說，我們只是埋頭專注於執行，不過市場感覺不錯。

Great. When you think about just overall deal sizes and sales cycle, obviously, just given the nature of some of these larger deals, but are sales cycles changing or obviously are they shortening overall in terms of just getting deals closed? Are there any discernible changes that maybe Remo or Bill or Jay, you can comment there?

很好。當你們思考整體交易規模與銷售週期時，顯然考量到一些較大型交易的性質，銷售週期是否有變化？或者就成交而言，整體是否正在縮短？是否有任何可辨識的變化，Remo、Bill 或 Jay 你們可以評論一下？

Yes. Good question, Dan. Not really. I mean for smaller deals, it's still 3 to 6 months; larger deals, 6 to 12 months after customers made the decision to go to the cloud and do transformation. From an average deal size perspective, we look at it for customers greater than 3,000 users. We're in the mid-300,000 range. It's increased every quarter, and it did increase in Q3 versus Q2. So we are seeing, from an average deal size, increases every quarter as we did this past Q3.

是的。好問題，Dan。其實沒有。我的意思是，小型交易仍然是 3 到 6 個月；大型交易則是在客戶做出上雲並進行轉型的決策之後，需要 6 到 12 個月。就平均交易規模而言，我們看的是使用者超過 3,000 人的客戶。我們大約在 30 多萬美元的中段區間。每一季都有增加，而且第 3 季相較第 2 季也有增加。所以就平均交易規模而言，我們每一季都在成長，就像剛過去的第 3 季一樣。

Yes. If I may add, the number of engagements and awareness have gone up. So that's obviously needed for us to deliver big numbers.

是的。如果我可以補充，互動（engagement）與市場認知的數量都上升了。所以這顯然是我們交出亮眼數字所需要的。

We'll now move on to our next question from Nick Yako with Cowen and Company.

我們現在進入下一個問題，來自 Cowen and Company 的 Nick Yako。

Jay, maybe one for you. There's certainly a growing awareness that legacy networks and security models don't really work in a cloud and mobile-first world, but do you have any sense of where we are in the adoption curve of local Internet breakouts today? And then along those same lines, any color you can provide around the percent of your own customers that have moved to local breakouts?

Jay，這題可能問你。市場對於傳統網路與資安模型在雲端與行動優先（mobile-first）的世界裡其實行不通的認知正在提升，但你是否能判斷我們目前在「本地網際網路分流」（local Internet breakouts）的採用曲線上處於什麼位置？另外同樣延伸來看，你能否分享一下你們自家客戶中，有多少比例已經轉向本地分流？

Very good question, Nick. So till SD-WAN initiatives came into market, the only vendor that was pushing for local breakout was Zscaler. So if you want to look at the size of the market of local breakout, our own market share is a good indication of that. We announced, I guess, last year, about 300 of the largest Global 2000 companies were our clients.

非常好的問題，Nick。在 SD-WAN 計畫進入市場之前，唯一推動本地分流的供應商就是 Zscaler。所以如果你想看本地分流市場的規模，我們自己的市占率就是一個很好的指標。我想我們在去年宣布過，大約有 300 家最大的 Global 2000 公司是我們的客戶。

Now what percentage of Zscaler customers are doing local breakout was the second question. Actually, the #1 reason we are bought is to do local breakout. Now the customers who haven't done breakout with Zscaler, it's only because they haven't gotten around it, okay? But I would say almost all of our customers have bought us for local breakout.

第二個問題是：有多少比例的 Zscaler 客戶在做本地分流。其實客戶購買我們的首要原因就是做本地分流。至於那些還沒有用 Zscaler 做分流的客戶，只是因為他們還沒著手去做，好嗎？但我會說幾乎所有客戶買我們都是為了本地分流。

And if you look at the SD-WAN market, we are one of the big reasons to deploy local breakout. We are the predominant vendor who secures the SD-WAN market. So if I were to give you my guesstimated answer, in large enterprises, that number of customer who have done local breakout is sitting in the mid-teens.

而如果你看 SD-WAN 市場，我們是部署本地分流的重要原因之一。我們是為 SD-WAN 市場提供安全防護的主導供應商。所以如果要我給你一個估計答案，在大型企業中，已經做了本地分流的客戶比例大約落在 10% 多的中段。

Okay. That's really helpful. And maybe just a quick follow-up. I was just wondering if there are any metrics you guys could provide around ZPA, whether it's customer uptake or percent of revenue or new deals. And if not, then just maybe some of the common use cases you see gaining traction.

好的。這非常有幫助。再追問一個很快的問題。我想知道你們是否能提供任何關於 ZPA 的指標，不論是客戶採用情況、營收占比或新交易中的占比。如果不行，那也請分享一些你們看到正在獲得動能的常見使用案例。

From a metric perspective, we'll give that on our next call. All I can say is that ZPA is our fastest-growing product, and we're happy with the growth. And we're looking forward to talking about it on our next call.

就指標而言，我們會在下一次電話會議提供。我能說的是，ZPA 是我們成長最快的產品，我們對其成長感到滿意。我們也期待在下一次電話會議中談更多。

Remo, the metrics you gave last year was 10% of the new and up-sell business we got. And I think at the end of Q4, we'll update on an annual basis where the numbers are.

Remo，你去年給的指標是我們取得的新業務與加購（up-sell）業務的 10%。我想在第四季末，我們會以年度為基礎更新目前的數字。

But your second question was about use cases. Lots of very interesting use cases. On a simple tactical front, replacing remote access VPN is a very popular use case because customers don't like VPN; they're slow. But more importantly, VPNs are a big security risk because they put users on the network. Imagine 5,000 people in 5,000 cities, including some sitting in Moscow or Croatia, they're on your network. VPN needs to be eliminated to make our enterprises and our country safe.

但你的第二個問題是關於使用案例。有很多非常有趣的使用案例。在較簡單、戰術層面的前線應用上，以遠端存取 VPN 取代是非常受歡迎的使用案例，因為客戶不喜歡 VPN；它們很慢。但更重要的是，VPN 是很大的資安風險，因為它會把使用者放到網路裡。想像 5,000 個人在 5,000 個城市裡，包括一些坐在莫斯科或克羅埃西亞的人，他們都在你的網路上。為了讓企業與我們的國家更安全，VPN 必須被淘汰。

But second use case, big one, access to applications sitting in public cloud like AWS and Azure. Without a solution like ZPA, your users need to go back to data center, which is a choke point and then back to the public cloud. A silly thing to do, but that's what most customers do because that's all they know of.

第二個使用案例，也是很大的：存取放在 AWS、Azure 等公有雲上的應用程式。如果沒有像 ZPA 這樣的解決方案，你的使用者必須先回到資料中心（那是一個瓶頸），再回到公有雲。這是很蠢的作法，但大多數客戶都這麼做，因為他們只知道這一套。

Third interesting use case, which I used to think will be only a very small number of cases, M&A integration or divestitures. I'm surprised to follow how many companies are being merged and divested, and that's helping. Those are the use cases.

第三個有趣的使用案例，我以前以為只會是非常少數的情況：併購（M&A）整合或資產剝離。我很驚訝地看到有這麼多公司在合併與剝離，而這也帶來助益。以上就是這些使用案例。

We'll move on to our next question from Melissa Franchi with Morgan Stanley.

我們接著進行下一個問題，來自 Morgan Stanley 的 Melissa Franchi。

Congrats on the quarter. Jay, I wanted to follow up on the Appsulate acquisition. It's interesting that you're adding browser isolation technology. Can you maybe add some more color on how that tech is complementary to what you're already doing from a web proxy perspective? And then what should we expect in terms of the timeline of getting that integrated?

恭喜本季表現。Jay，我想追問一下 Appsulate 的收購案。你們加入了瀏覽器隔離（browser isolation）技術，這點很有意思。你能否再多補充一些，說明這項技術如何從網頁代理（web proxy）的角度與你們既有的作法互補？另外，在整合時程方面，我們應該期待什麼？

Okay. Good. The browser isolation is a relatively new market and it's evolving, and it has special use case in certain verticals where security is very important: financial services, healthcare, maybe defense kind of areas. This, call it feature, call it a module, is very relevant for Zscaler because we're sitting in the traffic path. And simple example could be traffic going to certain known hyper sites. It could go direct using the technology Zscaler is using today. But there may be some unknown and fairly suspicious sites. You don't want all that traffic coming to the user end point, and those type of destinations are funneled through our browser isolation technology. So it becomes very, very complementary and very good fit. So that's the use case.

好的。很好。瀏覽器隔離是一個相對較新的市場，仍在演進中；在某些對安全性非常重視的垂直產業有特定使用案例：金融服務、醫療保健，或可能是國防相關領域。這個——稱它為功能也好、模組也好——對 Zscaler 非常相關，因為我們位於流量路徑上。一個簡單例子是：流量要前往某些已知的高流量網站。它可以直接走 Zscaler 目前使用的技術。但也可能有一些未知且相當可疑的網站。你不希望所有這些流量都到達使用者端點，這類目的地的流量就會被導入我們的瀏覽器隔離技術。因此它會變得非常互補、非常契合。這就是使用案例。

In terms of integration, what we bought is a young developers team, a very sharp team and a very innovative core engine. And that engine will be integrated into our platform and made sure it scales in the cloud. And that's the work we are doing in coming few quarters. And once we are comfortable with that, we make it available as an offering to our customers.

就整合而言，我們買到的是一支年輕的開發者團隊——非常敏銳的團隊——以及一個非常創新的核心引擎。這個引擎將被整合進我們的平台，並確保它能在雲端擴展。這就是我們在接下來幾個季度要做的工作。一旦我們對此感到有把握，就會把它作為一項產品提供給客戶。

But we're not planning for any revenue -- or very little revenue in Q4 or in our fiscal '20. I think one of the key points is that one of the strengths of Zscaler is we have one code base. And we're putting this on our platform. We're going to integrate it into our platform, which I believe will give us a competitive advantage.

但我們並未規劃在第四季——或在我們 2020 財年——帶來任何營收，或只有非常少的營收。我認為其中一個重點是，Zscaler 的優勢之一在於我們只有一套程式碼基底（one code base）。我們會把這個放到我們的平台上。我們將把它整合進平台，我相信這會帶來競爭優勢。

Yes. I have seen so many companies who go on a buying spree, and the products never integrate. They may put a UI in front of it, but customers complain about that type of stuff. So our focus of buy good code technology and properly integrate them so it's like one product, a single pane of glass, not just a facade pane of the glass.

是的。我看過太多公司瘋狂收購，但產品從來沒有整合起來。他們可能只是在前面加一個 UI，但客戶會抱怨這類事情。所以我們的重點是：買到好的程式碼技術，並把它們正確整合，讓它像是一個產品、一個單一視窗（single pane of glass），而不只是玻璃窗的表面門面。

Okay. That's helpful. And then one quick follow-up. Jay, it's been about a year since the COO role went vacant with the departure of Bill Welch. Just wondering if that role is still open and how you're feeling from a sales leadership perspective.

好的。這很有幫助。再追問一個很快的問題。Jay，自從 Bill Welch 離職後，營運長（COO）職位空缺大約一年了。想請問這個職位是否仍在招募中？以及從銷售領導的角度，你目前感受如何？

Yes. That is correct. We have retained search. We have lots of good candidates with lots of good interest. It's a very important role for us, and we're being very selective, but we will be filling the role. We are making progress on it.

是的。沒錯。我們已委託獵才。有很多優秀候選人，也有很高的興趣。這對我們是非常重要的職位，我們非常審慎挑選，但我們會補上這個職位。我們在這方面正在取得進展。

We'll take our next question from Jonathan Ruykhaver with Baird.

下一個問題來自 Baird 的 Jonathan Ruykhaver。

I'm kind of curious if you could talk about the SP, SI contribution to ARR. I have in my notes that it was around 45% around the time of the IPO, so I'm just kind of curious how those channels have contributed to ARR since then.

我有點好奇，你是否能談談 SP、SI 對 ARR 的貢獻。我筆記裡記得在 IPO 前後大約是 45%，所以我想了解自那之後這些通路對 ARR 的貢獻情況。

Yes. On a revenue basis, it's a little bit higher. It's in the low-50% range currently. The traditional VARs, distributors in the low to mid-40% range and 2% or 3% direct. All our new business, though, is through SPs and SIs and VARs. We feel that SPs and SIs are very strategic for Zscaler. A lot of our emphasis is being put in that channel. However, we understand the importance of the VAR distributor channel. We plan to continue to invest in that channel as we go forward.

是的。以營收基礎來看，比例稍微更高。目前大約在 50% 出頭的區間。傳統 VAR 與經銷商在 40% 出頭到 40% 中段的區間，直接銷售約 2% 或 3%。不過，我們所有的新業務都是透過 SP、SI 與 VAR。我們認為 SP 與 SI 對 Zscaler 來說非常具策略性。我們把很多重點放在這個通路上。然而，我們也理解 VAR 經銷通路的重要性。我們計畫在未來持續投資這個通路。

Can you talk about the impact that SP might be having on transformation in ZIA and the same thing with SI in ZPA?

你能談談 SP 對 ZIA 轉型可能帶來的影響，以及 SI 對 ZPA 的影響嗎？

Yes. SPs, service providers, are the folks who provide network and Internet connectivity to enterprises. So they are our natural partners for the sale of ZIA, and ZIA is a mature market -- sorry, mature offering from Zscaler. And SP channel is fairly mature. Systems integrators have a better fit for ZPA because they are the folks who move internal applications to public clouds. And along with that, we are working with them to bundle our ZPA offerings; so they not only do migration of applications, they also provide a secure and fast access to the customers.

是的。SP，也就是服務供應商，是為企業提供網路與網際網路連線的業者。因此他們是我們銷售 ZIA 的天然合作夥伴，而 ZIA 是 Zscaler 一個成熟的市場——抱歉，是成熟的產品。SP 通路也相當成熟。系統整合商（SI）更適合 ZPA，因為他們負責把內部應用程式搬到公有雲。同時，我們也與他們合作把我們的 ZPA 方案打包；因此他們不僅做應用程式遷移，也為客戶提供安全且快速的存取。

And that's in an early stage. ZPA is young, so is the SI relationship, but we are pleased with the progress we're making in that area.

而這仍處於早期階段。ZPA 還很年輕，SI 的合作關係也是，但我們對在這方面取得的進展感到滿意。

Right. Okay. My final question, secure SD-WAN is an alternative architecture to securing local Internet breakout. Some of the larger networking companies talk about that as a successful use case. Jay, could you just compare and contrast how you view secure SD-WAN versus ZIA.

了解。好的。我最後一個問題：安全 SD-WAN 是一種替代架構，用來保護本地網際網路出口（local Internet breakout）。一些大型網路公司把它談成一個成功的使用案例。Jay，你能否比較並對照你如何看待安全 SD-WAN 與 ZIA？

Absolutely. SD-WAN's core thing starts being sophisticated cloud-managed branch 2.0 box that integrates routing and switching that gives you connectivity back to the data center over traditional MPLS or over the Internet. And that's one use case. We don't play into that use case.

當然可以。SD-WAN 的核心起點是更精密、雲端管理的分支機構 2.0 盒子（branch 2.0 box），它整合路由與交換，讓你能透過傳統 MPLS 或透過網際網路連回資料中心。那是一種使用案例。我們不參與那個使用案例。

The second part of the SD-WAN along with that is to be able to peel off Internet and SaaS-bound traffic at the source at each branch. So we can go direct over a broadband or whatever the connection may be. Now that location, that local breakout must be secured, either you build a local gateway with traditional network security appliances such as firewall, proxies, DLP and the like or you point the traffic to Zscaler ZIA. You can imagine hundreds of branches with solutions that are simply pointing the traffic to us. Now some SD-WAN vendors may say that we will build the functionality in each box. So if you got 1,000 branches, we'll put that functionality in 1,000 branches. This doesn't seem to make sense. The customers want the lightest footprint in each branch. So simply they do the network functionality, point the traffic to the cloud, and security can be done in the cloud. That's why most of the SD-WAN deployments we know of, we are the default platform that secures SD-WAN.

SD-WAN 的第二個部分，連同其一起的是，能夠在每個分支機構的源頭將網際網路與 SaaS 目的地的流量分流出去。因此我們可以透過寬頻或任何可能的連線直接連出。現在那個位置、那個本地分流出口必須被保護；要嘛你用傳統網路安全設備（例如防火牆、代理、DLP 等）建立本地閘道，要嘛你把流量導向 Zscaler ZIA。你可以想像有數百個分支的解決方案，只是把流量指向我們。現在有些 SD-WAN 供應商可能會說，我們會在每個盒子裡建置這個功能。所以如果你有 1,000 個分支，我們就在 1,000 個分支裡放入那個功能。這看起來不太合理。客戶希望每個分支的部署占用最小的足跡。所以他們只做網路功能，把流量指向雲端，而安全性可以在雲端完成。這就是為什麼在我們所知道的大多數 SD-WAN 部署中，我們是用來保護 SD-WAN 的預設平台。

So could we see a few cases where SD-WAN vendor may be trying to add security in the box? In rare cases. But most of the time, it will be done in the cloud, and we are the biggest beneficiary of that.

那麼我們是否會看到少數案例，SD-WAN 供應商試圖在盒子裡加入安全性？在少數情況下會。但大多數時候，會在雲端完成，而我們是最大的受益者。

We'll now take our final question from Fatima Boolani with UBS.

我們現在將進入最後一個問題，由 UBS 的 Fatima Boolani 提問。

I have one for Jay, and I have one for Remo. Jay, in your prepared remarks, I did notice the coincident of ZPA and ZIA deals has certainly increased over the last 4 quarters. So I'm wondering as, I guess, the de facto Head of Sales, if you have put in place any specific incentives or quota retirement targets from a go-to-market perspective to really drive that inflection in ZPA adoption that you were talking about.

我有一個問題要問 Jay，也有一個要問 Remo。Jay，在你事先準備的發言中，我確實注意到 ZPA 與 ZIA 同時成交的情況在過去 4 個季度明顯增加。所以我想請問，作為我想你算是事實上的銷售主管，你是否從 go-to-market 的角度設立了任何特定的激勵措施或配額達成目標，來真正推動你所談到的 ZPA 採用率拐點。

Yes. Very good question, Fatima. So first of all, ZPA is maturing. We announced that we made it available over a year, 2 years ago. So obviously, there's more awareness. So it will be natural for us to expect ZPA in more deals. Internally, we do give financial incentives for ZPA sales. So it's a combination of maturity, awareness, well-trained sales team and some financial incentives.

是的。非常好的問題，Fatima。首先，ZPA 正在成熟。我們宣布它可用已經超過一年、兩年前了。所以很明顯，市場認知度更高了。因此我們自然會預期在更多交易中看到 ZPA。在內部，我們確實對 ZPA 的銷售提供財務激勵。所以這是成熟度、認知度、訓練有素的銷售團隊以及一些財務激勵的綜合結果。

That's very clear. And Remo for you, just on the gross margin front. You've been very efficient on your delivery costs. So just from a COGS perspective, you've held the line to show the gross margin -- strong gross margin performance. But I'm wondering if there's any other dynamics that are really enabling you to outperform on gross margins, whether it be pricing leverage or pricing increases within the base or anything beyond the cost front that you're doing that's helping gross margins. And that's it for me.

這非常清楚。Remo，接著想請教你毛利率方面。你們在交付成本上一直非常有效率。所以從 COGS 的角度來看，你們守住了成本線，展現出毛利率——強勁的毛利率表現。但我想知道，是否還有其他動態因素讓你們能在毛利率上超預期表現，例如定價槓桿、在既有客戶基礎中的漲價，或是除了成本面之外你們正在做的任何事情，正在幫助毛利率提升。我就這些。

Yes. Thank you, Fatima. I think we just have a very efficient platform, to be honest with you. When you're driving 80-plus percent gross margin with the amount of traffic that we have going through and the amount of security applications that we run, it's got to start with the software and it's got to start with the strength of the platform that we've created.

是的。謝謝你，Fatima。坦白說，我認為我們就是擁有一個非常高效率的平台。當你在我們目前的流量規模、以及我們運行的安全應用數量之下，仍能推動 80% 以上的毛利率，這必須從軟體開始，也必須從我們所打造的平台實力開始。

In addition to that, we do look at pricing. We periodically increase pricing, and that's related to increased usage on the part of our customers, increased bandwidth that they're using. Our cloud operations group is outstanding. We have a very strong cloud operations group, which is very efficient that's created automated tools to help us manage our cloud.

除此之外，我們也會檢視定價。我們會定期調升價格，這與客戶端使用量增加、他們使用的頻寬增加有關。我們的雲端營運團隊非常出色。我們有一個非常強的雲端營運團隊，效率很高，並打造了自動化工具來協助我們管理雲端。

From a technical account manager, professional services perspective, depreciation of capital equipment, those are all things that we manage on a literally weekly, monthly basis. And we stay on top of it. But it really starts with the strength of the platform, with the ability to scale our cloud to a level it is at these types of gross margins. And we're very proud of it.

從技術客戶經理、專業服務的角度，以及資本設備折舊等，這些都是我們幾乎以每週、每月的頻率在管理的事項。而且我們會持續緊盯。但歸根結底，還是從平台的實力開始——我們能把雲端擴展到目前的規模，同時維持這樣的毛利率水準。我們對此感到非常自豪。

Remo, if I may add. What Remo talked about platform, I would say it's a purpose-built architecture that we built that gives us the biggest advantage. Two, we have a highly optimized software we developed on our own without having to create any royalties to third parties. And third, a new point I'll mention is we have no money to pay to public cloud vendors to run our stuff in those public clouds.

Remo，如果我可以補充一下。Remo 談到平台，我會說我們打造的「為特定目的而生」的架構，給了我們最大的優勢。第二，我們有高度最佳化的軟體，是我們自行開發的，不需要向第三方支付任何權利金。第三，我要提一個新的點：我們不需要付錢給公有雲供應商，讓我們的東西跑在那些公有雲上。

Thank you. And that does conclude today's question-and-answer session. I would now like to turn the conference back over to Mr. Chaudhry for any additional or closing remarks.

謝謝。至此也結束了今天的問答環節。我現在想把電話會議交回給 Chaudhry 先生，請他做任何補充或結語。

Thank you. Thank you for your interest and time. We'll see some of you at the Bank of America Merrill Lynch Conference next week. Otherwise, we'll speak with you at our next earnings call.

謝謝。感謝各位的關注與撥冗參與。下週在美國銀行美林（Bank of America Merrill Lynch）會議上，我們會見到其中一些各位。否則，我們會在下一次財報電話會議上與各位交流。

Thank you. That does conclude today's conference. Thank you all for your participation. You may now disconnect.

謝謝。至此結束今天的電話會議。感謝各位的參與。各位現在可以掛線。