Zscaler, Inc. (ZS) 2019 Q4 法說會逐字稿

Good day, everyone, and welcome to the Zscaler's 4Q 2019 Earnings Conference Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Mr. Bill Choi, Vice President of Investor Relations. Please go ahead, sir.

各位好，歡迎參加 Zscaler 2019 會計年度第四季（4Q 2019）財報電話會議。今天的會議將進行錄音。現在我想把會議交給投資人關係副總裁 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 fourth 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，感謝各位參與我們，討論 Zscaler 2019 會計年度第四季的財務結果。與我一同參與電話會議的有董事長暨執行長 Jay Chaudhry，以及財務長 Remo Canessa。目前各位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，我們今天稍早也在網站投資人關係專區發布了補充財務明細表。

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 risk and uncertainty, 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，在今天的討論中我們將作出前瞻性陳述，包括但不限於公司對未來營收、計算後帳單金額（calculated billings）、營運表現、毛利率、營業費用、營業利益、淨利、自由現金流、以美元計價的淨留存率（dollar-based net retention rate）、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。這些前瞻性陳述僅適用於今日，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任何義務。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（SEC）提交的文件，以及今天的財報新聞稿。

Unless otherwise noted, all numbers we talk about today other than revenue 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，今天我們討論的所有數字（營收除外）皆以調整後的非 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 的調節表可在稍早提及的補充財務資訊中找到。

I would also like to inform you that we will be hosting our Analyst Day next week on September 17 in conjunction with our Zenith Live conference in Las Vegas. Zenith Live is our annual customer and partner cloud summit featuring keynote presentations and topic specific breakouts regarding the transformation to a cloud-first future. We will be webcasting both the Zenith Live keynotes and the Analyst Day program, which you can access on the events section of our IR website. Now I'll turn the call over to Jay.

我也想通知各位，我們將於下週 9 月 17 日在拉斯維加斯，配合我們的 Zenith Live 大會舉辦分析師日（Analyst Day）。Zenith Live 是我們年度的客戶與合作夥伴雲端高峰會，包含主題演講以及針對邁向雲端優先（cloud-first）未來轉型的各項主題分場。我們將同步網路直播 Zenith Live 的主題演講與分析師日議程，您可在我們投資人關係網站的活動（events）專區收看。現在我把電話會議交給 Jay。

Thank you, Bill, and thank you, everyone, for joining us on our call today. In Q4, we are pleased to announce that we delivered strong revenue and operating profit growth in the fourth quarter with positive free cash flow. For the quarter, our revenue grew 53% and billings grew 32% year-over-year against a very difficult comparison. And for the full year, our revenue grew 59% and billings grew 51%. I will start the call by commenting on our market opportunity. Next, I will discuss our sales execution, including the hiring of our new President Go-to-Market and Chief Revenue Officer, and conclude with some of our deal wins in the quarter.

謝謝你，Bill，也謝謝各位今天加入我們的電話會議。在第四季，我們很高興宣布：本季營收與營業利益皆實現強勁成長，且自由現金流為正。本季營收年增 53%，帳單金額（billings）年增 32%，是在非常艱難的比較基期下達成。全年而言，營收年增 59%，帳單金額年增 51%。我將先就我們的市場機會發表看法。接著我會談到我們的銷售執行，包括聘任新的市場推進總裁（President, Go-to-Market）暨營收長（Chief Revenue Officer），最後以本季部分重大得標案作結。

We are seeing a mega shift take place where organizations are choosing multi-tenant cloud architecture to empower them to scale quickly as they move their applications and data to the cloud. Digital transformation and adoption of mobile and cloud fundamentally change network traffic patterns and break the traditional perimeter protection model, where organizations build a "hub and spoke" network and a "moat" of security appliances to secure the network. Built for a world without walls, Zscaler cloud acts as a business policy engine, which is now deployed across more than 150 data centers to deliver the full set of security and policy enforcement on a direct path to the application. Our mission is to provide fast, secure and reliable access to information no matter where it lives.

我們正看到一個巨大的轉變：組織選擇多租戶雲端架構，以在將應用程式與資料移轉至雲端時，能快速擴展規模。數位轉型以及行動與雲端的採用，從根本上改變了網路流量型態，並打破傳統的邊界防護模型；在該模型下，組織建立「樞紐—輻射（hub and spoke）」網路，以及由安全設備構成的「護城河（moat）」來保護網路。Zscaler 雲端為「無牆世界」而生，作為商業政策引擎，目前已部署於超過 150 個資料中心，能在通往應用程式的直接路徑上，提供完整的安全防護與政策強制執行。我們的使命是：無論資訊位於何處，都能提供快速、安全且可靠的存取。

Responding to customer's need for better advice for a cloud-centric world where appliance-based perimeter security is less relevant, Gartner has recently published a groundbreaking research note titled, "The Future of Network Security Is in the Cloud." In this paper, they introduced the concept of a Secure Access Service Edge, pronounced SASSY. SASE goes well beyond the disruption of MPLS with SD-WAN, or hardware appliances with cloud, or applying Zero-trust principles.

為回應客戶在以雲端為中心的世界中對更佳建議的需求（在此世界裡，以設備為基礎的邊界安全已不再那麼重要），Gartner 近期發布了一篇具突破性的研究報告，題為《網路安全的未來在雲端（The Future of Network Security Is in the Cloud）》；文中提出了「安全存取服務邊緣（Secure Access Service Edge）」的概念，發音為 SASSY。SASE 的範疇遠不僅是以 SD-WAN 顛覆 MPLS、或以雲端取代硬體設備、或是套用零信任（Zero-trust）原則。

As I interpret it, SASE has the following key points: Number one, demands that service-edge providers offer compute power at the edge of a widely distributed network, distributed as close as possible to each endpoint. Number two, like branch with just a router and all security services in the cloud. Three, delivers in-line encrypted traffic inspection at scale.

依我的理解，SASE 有以下幾個重點：第一，要求服務邊緣供應商在廣泛分散的網路邊緣提供運算能力，並盡可能部署在最接近各端點的位置。第二，分支據點只需一台路由器，而所有安全服務都在雲端。第三，能以規模化方式提供線上（in-line）的加密流量檢測。

Most importantly, Gartner recommends reducing complexity of network security by moving to ideally one vendor for Secure Web Gateway. Cloud access security broker, or CASB, DNS, zero-trust network access and remote browser isolation capabilities.

最重要的是，Gartner 建議透過轉向理想情況下由單一供應商提供的方案，來降低網路安全的複雜度：安全網頁閘道（Secure Web Gateway）。雲端存取安全代理（Cloud Access Security Broker，CASB）、DNS、零信任網路存取（Zero-trust network access）以及遠端瀏覽器隔離（remote browser isolation）能力。

We agree with these key findings, and I recommend that everyone read this report. It is available on our main website.

我們同意這些關鍵發現，也建議各位閱讀這份報告。該報告可在我們的主網站取得。

Zscaler platform was designed from the start for the world that Gartner has spelled out. As the world moves toward the SASE model, traditional network security vendors are embracing Zscaler's vision of cloud-based security after rejecting it for years. They're trying to retrofit the legacy appliances into a cloud world and making more and more noise about what we believe are their fundamentally flawed hybrid security cloud offerings. Their message is, "Keep on buying my boxes, but use my so-called cloud service when your users are on the road or in a branch office." But we believe that pieced together, hybrid clouds can't scale, leave gaps in security, are expensive, deliver a poor user experience and will not allow enterprises to fully realize the benefits of the cloud.

Zscaler 平台自一開始就是為 Gartner 所描繪的世界而設計。隨著世界朝向 SASE 模式前進，傳統網路安全供應商在多年否定之後，正開始擁抱 Zscaler 的雲端安全願景。他們試圖把傳統設備硬套（retrofit）到雲端世界，並對我們認為在根本上有缺陷的混合式安全雲端方案製造越來越多聲量。他們的訊息是：「繼續買我的盒子（設備），但當你的使用者在外出或在分支辦公室時，就使用我所謂的雲端服務。」但我們認為，拼湊而成的混合雲無法擴展、會留下安全缺口、成本高、使用者體驗差，且無法讓企業充分實現雲端的效益。

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 does not serve the needs of the customer. To put it simply, architecture matters. Zscaler has 4 architectural advantages that firewalls can't just add on: Edge cloud for policy enforcement, multi-tenancy, proxy for SSL or TLS inspection and Zero-trust network access.

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，你也不可能只是在公有雲上啟動一堆虛擬機器，就提供線上（in-line）、高效能的安全雲。在我們看來，這是雲端模仿者的防禦策略，並不能滿足客戶需求。簡而言之，架構很重要。Zscaler 具備 4 項防火牆無法「加裝」的架構優勢：用於政策強制執行的邊緣雲（Edge cloud）、多租戶、用於 SSL 或 TLS 檢測的代理（proxy），以及零信任網路存取。

Zscaler's platform, deployed across more than 150 data centers, was built from the ground up and provides the advantages of elasticity, scale, deep content inspection and user experience that is difficult to match. In addition, we have over 10 years of operational experience running our security cloud at scale. As I have said before, there really is no compression algorithm for experience.

Zscaler 的平台部署於超過 150 個資料中心，自底層起打造，提供彈性（elasticity）、規模（scale）、深度內容檢測，以及難以匹敵的使用者體驗等優勢。此外，我們在大規模運行安全雲方面擁有超過 10 年的營運經驗。如我先前所說，經驗真的沒有壓縮演算法可言。

To keep on growing at a rapid pace as we seek to reach $1 billion in revenue, we need to build a sales machine to drive consistent sales execution, critical for a top-down transformational sale, which delivers even if the market environment gets tougher. We're not sure if the macroeconomic environment is having an impact, but we started to see some large deals taking longer to close. To help us deliver go-to-market scaling and execution, I'm very pleased to announce that Dali Rajic is joining Zscaler as our President Go-to-Market and CIO. I have been deliberate about finding the right leader with a progressive mindset, as this is an extremely important role. Dali shares my views on value-driven strategic selling, and I'm confident that he is the right leader to drive our sales execution. He brings a wealth of SaaS and cloud experience and a proven ability to scale global sales and channel in support of our long-term growth objectives.

為了在我們力求達到 10 億美元營收的同時，仍能以快速步伐持續成長，我們需要打造一部銷售機器，以推動一致且可複製的銷售執行力；這對於自上而下的轉型式銷售至關重要，並且即使市場環境變得更艱難也能交付成果。我們不確定總體經濟環境是否正在產生影響，但我們開始看到一些大型交易需要更長時間才能完成簽約。為了協助我們實現上市策略（go-to-market）的規模化與執行，我非常高興宣布 Dali Rajic 將加入 Zscaler，擔任我們的上市策略總裁（President Go-to-Market）兼 CIO。我一直審慎地尋找具備前瞻思維的合適領導者，因為這是一個極其重要的職位。Dali 與我對以價值為導向的策略性銷售有相同看法，我有信心他是推動我們銷售執行的正確領導者。他擁有豐富的 SaaS 與雲端經驗，並具備已被驗證的能力，可擴大全球銷售與通路，以支持我們的長期成長目標。

On the deal front, I'm excited that more customers are buying the ZIA and ZPA platforms together, which enables a true transformation with direct access to any service or application from anywhere, on any device, without backhauling traffic through the data center: ZIA for Internet and SaaS, and ZPA for internal applications in your data center or in the cloud. As some of you know, ZPA is a newer platform that we started selling about 2 years ago and is now an important part of our business, already contributing 14% of our new business. We are seeing rapid growth with ZPA with approximately half of the business coming from existing ZIA customers.

在交易方面，我很振奮地看到有更多客戶同時採購 ZIA 與 ZPA 平台，這使得真正的轉型成為可能：可從任何地方、在任何裝置上，直接存取任何服務或應用程式，而無需將流量回傳（backhaul）至資料中心；其中，ZIA 用於網際網路與 SaaS，ZPA 用於您資料中心或雲端中的內部應用程式。如各位所知，ZPA 是較新的平台，我們約在 2 年前開始銷售，現在已成為我們業務的重要部分，且已貢獻我們新業務的 14%。我們看到 ZPA 快速成長，約有一半的業務來自既有的 ZIA 客戶。

Let me start by highlighting a new customer that bought ZIA and ZPA together. A global information services company spun-off one of its business units, along with the legacy network and data center infrastructure. With an opportunity to start with a clean slate, they adopted a strategy to pursue a full transformation to the cloud -- with Internet as their wide area network, cloud as the new data center and Zscaler as the policy enforcement platform. The customer purchased the ZIA Business Bundle plus cloud firewall and data loss prevention for all 25,000 employees and ZPA for 10,000 mobile users. Without building a new network with scores of new security gateways, the customer is leveraging Zscaler to provide secure, fast and reliable access for all users from all locations on any device at a lower cost of ownership and with greater operational simplicity. A global system integrator partner, who is implementing the overall transformation project, played a key role in driving the Zscaler sale, an example of channel leverage we are creating with our investments in our SI partners.

我先強調一位同時採購 ZIA 與 ZPA 的新客戶。一家全球資訊服務公司分拆了其一個事業單位，同時也分離了既有的網路與資料中心基礎設施。在有機會從零開始的情況下，他們採取策略，推動全面雲端轉型——以網際網路作為其廣域網路（WAN）、以雲端作為新的資料中心，並以 Zscaler 作為政策強制執行平台。該客戶為其 25,000 名員工採購了 ZIA Business Bundle 加上雲端防火牆與資料外洩防護（DLP），並為 10,000 名行動使用者採購了 ZPA。在不必建置包含大量新安全閘道器的新網路的情況下，該客戶正運用 Zscaler 以更低的總持有成本與更高的營運簡化程度，為所有使用者在任何地點、任何裝置上提供安全、快速且可靠的存取。一位正在實施整體轉型專案的全球系統整合商（SI）合作夥伴，在推動 Zscaler 成交上扮演了關鍵角色，這是我們透過投資 SI 合作夥伴所創造之通路槓桿的例證。

Let me give you an example of an existing ZIA customer adding ZPA. A Fortune 100 multinational oil and gas customer, with headquarters in Europe that bought our ZIA Transformation Bundle for 65,000 employees last year, purchased ZPA for over 56,000 users. ZPA represents the next step in this customer's IT transformation journey towards a cloud-first strategy. After adopting local Internet breakouts for 450 locations, the customer bought ZPA to replace its legacy VPN and do a lot more. ZPA will provide access to its applications in the data center and in the public cloud while increasing the level of security with a zero-trust network access approach. ZPA creates a unified policy-based access across all environments, including the thousands of apps that they are moving to AWS and Azure. This large company also expects to benefit from ZPA to integrate potential acquisitions. This latest purchase increased the total customer spend with Zscaler by two-thirds.

我再舉一個既有 ZIA 客戶加購 ZPA 的例子。一家《財富》100 強的跨國油氣客戶，總部位於歐洲，去年為 65,000 名員工採購了我們的 ZIA Transformation Bundle，近期又為超過 56,000 名使用者採購了 ZPA。ZPA 代表該客戶 IT 轉型旅程的下一步，朝向雲端優先（cloud-first）策略邁進。在為 450 個據點採用本地網際網路出口（local Internet breakouts）之後，該客戶採購 ZPA 以取代其既有 VPN，並實現更多能力。ZPA 將以零信任網路存取（zero-trust network access）方式，在提升安全等級的同時，提供對其資料中心與公有雲中應用程式的存取。ZPA 在所有環境中建立一致的、以政策為基礎的存取控制，涵蓋他們正移轉至 AWS 與 Azure 的數千個應用程式。這家大型公司也預期可透過 ZPA 受益於整合潛在併購案。這次最新採購使該客戶在 Zscaler 的總支出增加了三分之二。

In our large ZIA deals, we continue to see Office 365 deployments and securing local Internet breakouts as the primary driver. A Global 500 industrial company with headquarters in Europe purchased our Business Bundle and cloud sandbox for 120,000 users as the required scalable solution that can keep pace with over 50% growth in Internet traffic for a year. In addition to Office 365, SSL traffic inspection and cloud sandboxing were needed for better security for all locations across 60-plus countries and all users, whether at the headquarters, a branch office or on the road.

在我們的大型 ZIA 交易中，我們持續看到 Office 365 部署與保護本地網際網路出口（local Internet breakouts）是主要驅動因素。一家總部位於歐洲的 Global 500 工業公司，為 120,000 名使用者採購了我們的 Business Bundle 與雲端沙箱，作為能夠因應一年內網際網路流量成長超過 50%之所需可擴展解決方案。除 Office 365 外，為了在 60 多個國家、所有據點與所有使用者（無論在總部、分支機構或出差途中）提供更佳安全性，還需要 SSL 流量檢查與雲端沙箱。

In another deal, a Fortune 100 consumer goods company that purchased Business Bundle several years ago upgraded to Transformation Bundle plus data loss prevention for all 100,000 employees. After deploying Office 365 last year, the customer was overwhelmed with the growth of traffic for OneDrive and SharePoint. With Zscaler, they will no longer have to backhaul Office 365 to 4 data centers. Instead, they're implementing SD-WAN for nearly 300 locations for local Internet breakouts to deliver better user experience. To secure all local breakouts, the customer purchased cloud firewall, sandbox and DLP for all users to keep malware from coming in and sensitive information from leaking out, no matter where the user is.

在另一筆交易中，一家《財富》100 強的消費品公司數年前採購了 Business Bundle，近期升級至 Transformation Bundle 並加上資料外洩防護（DLP），涵蓋其 100,000 名員工。在去年部署 Office 365 後，該客戶因 OneDrive 與 SharePoint 的流量成長而不堪負荷。有了 Zscaler，他們將不再需要把 Office 365 的流量回傳（backhaul）到 4 個資料中心。取而代之的是，他們正為近 300 個據點導入 SD-WAN，以實現本地網際網路出口，提供更佳使用者體驗。為了保護所有本地出口，該客戶為所有使用者採購了雲端防火牆、沙箱與 DLP，以防止惡意軟體入侵並避免敏感資訊外洩，不論使用者身在何處。

For customers who want network and security transformation, we believe we are the only cloud-native, multi-tenant platform that meets their needs. The cloud security market is evolving rapidly, and we are adding significant functionality to our platform and creating more distance from the cloud imitators. You will hear more about our innovations at our Zenith Live Cloud Summit next week. Overall, the competitive environment remains favorable and with high win rates, coupled with a strong net dollar retention rate of 118%. In fact, our customer churn rate declined quarter-over-quarter and year-over-year. We ended fiscal 2019 with over 3,900 customers. Total Global 2000 customers increased to over 400 as of July 31, up from over 300 a year ago. And we have over 100 of the Fortune 500 companies as our customers.

對於希望進行網路與安全轉型的客戶，我們相信我們是唯一能滿足其需求的雲端原生、多租戶平台。雲端安全市場正在快速演進，我們正為平台新增大量功能，並與雲端仿冒者拉開更大差距。下週在我們的 Zenith Live Cloud Summit 上，您將聽到更多關於我們的創新。整體而言，競爭環境仍然有利，我們維持高勝率，並搭配 118% 的強勁淨美元留存率（net dollar retention rate）。事實上，我們的客戶流失率（churn rate）較前一季與去年同期均有所下降。我們在 2019 會計年度結束時擁有超過 3,900 家客戶。截至 7 月 31 日，Global 2000 客戶總數增加至超過 400 家，高於一年前的 300 多家。此外，我們有超過 100 家《財富》500 強公司是我們的客戶。

We are strengthening our channel partnerships with large system integrators and global service providers who contribute over 50% of our revenue. We will continue to aggressively invest in our business to pursue our significant market opportunity.

我們正與大型系統整合商與全球服務供應商強化通路合作夥伴關係，這些夥伴貢獻了我們超過 50% 的營收。我們將持續積極投資於業務，以把握我們龐大的市場機會。

Now I'd like to turn over the call to Remo to walk through our financial results.

現在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. Revenue for the quarter was $86.1 million, up 9% sequentially and 53% year-over-year. For the year ago comparison, recall that Q4 2018 revenue was aided by $1.4 million in nonrecurring revenue from a large public sector customer deploying our platform as a private cloud. From a geographic perspective, for the quarter, Americas represented 51% of revenue; EMEA was 41%; and APJ was 8%. For the full year, revenue was $303 million, up 59%. ZPA remains the fastest-growing new product in our history. ZPA contributed 14% of our new and upsell business in fiscal 2019, up from 10% in the prior year.

謝謝你，Jay。本季營收為 8,610 萬美元，較前一季成長 9%，較去年同期成長 53%。就與去年同期的比較而言，請記得 2018 年第四季營收曾受惠於一筆 140 萬美元的非經常性營收，來自一位大型公部門客戶以私有雲方式部署我們的平台。從地理區域來看，本季美洲占營收 51%；EMEA 占 41%；APJ 占 8%。全年營收為 3.03 億美元，成長 59%。ZPA 仍是我們歷史上成長最快的新產品。在 2019 會計年度，ZPA 貢獻了我們新業務與加購（upsell）業務的 14%，高於前一年的 10%。

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 32% year-over-year to $126 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 would have grown over 50%. Remaining performance obligations, or RPO, was $554 million on July 31, up 39% from $398 million 1 year ago. As a reminder, the large public sector deal added $26 million to RPO a year ago.

接著談計算後的帳單金額（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 32% 至 1.26 億美元。提醒一下，我們的合約條款通常為 1 至 3 年，且我們主要以提前 1 年向客戶開立發票為主。若排除兩個期間中超過 1 年的預先開票金額，帳單金額的成長將超過 50%。截至 7 月 31 日，剩餘履約義務（RPO）為 5.54 億美元，較一年前的 3.98 億美元成長 39%。提醒一下，去年一筆大型公部門交易為 RPO 增加了 2,600 萬美元。

Based on our ending July 31 annual recurring revenue for ZIA, approximately 43% is from our high-end Transformation Bundle, which includes our next-generation firewall and sandbox, up from approximately 35% last year.

以我們截至 7 月 31 日的 ZIA 年度經常性收入（ARR）期末數為基礎，約 43% 來自我們高階的 Transformation Bundle（轉型套裝組合），其中包含我們的次世代防火牆與沙箱，較去年的約 35% 提升。

Our strong customer retention and ability to upsell have resulted in consistently high dollar-based net retention rate, which is 118% for the quarter ended July 31. This compares to 117% a year ago and 118% last quarter. Our increased success selling bigger deals upfront, which start with Transformation Bundle and faster upsells within a year, while good for our business, can reduce our net retention rate, which is calculated on a year-over-year ARR basis. Considering these factors, we feel 118% is outstanding and it will vary quarter-to-quarter.

我們強勁的客戶留存與加購（upsell）能力，使以美元計的淨留存率（dollar-based net retention rate）持續維持在高水準，本季截至 7 月 31 日為 118%。相較之下，一年前為 117%，上一季為 118%。我們在前期成功成交更大金額的交易（通常從 Transformation Bundle 開始），並在一年內更快加購，雖然對業務有利，但可能會降低以年對年 ARR 為基礎計算的淨留存率。考量這些因素，我們認為 118% 表現非常出色，且該指標將隨季度而波動。

Total gross margin was 81%, down 1% sequentially and up 1% year-over-year. We feel that 80% continues to be a good target range 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 81%，較上一季下降 1 個百分點，較去年同期上升 1 個百分點。我們認為在短至中期，80% 仍是良好的目標區間，因為持續投資我們的平台以推動營收成長非常重要。

Turning to operating expenses. Our total operating expenses increased 6% sequentially and increased 31% year-over-year to $62.2 million which decreased as a percent of revenue to 72%. The sequential increase in operating expenses is primarily due to increased sales and marketing spend in R&D. We increased our headcount in Q4 by over 130 employees and ended the year with over 1,480 employees.

接著談營業費用。我們的總營業費用較上一季增加 6%，較去年同期增加 31% 至 6,220 萬美元，占營收比重降至 72%。營業費用的季增主要來自研發中的銷售與行銷支出增加。我們在第四季增加了超過 130 名員工，年底員工總數超過 1,480 人。

Sales and marketing increased 6% sequentially and 33% year-over-year to $41 million. The increase is due to higher compensation expenses and marketing programs.

銷售與行銷費用較上一季增加 6%，較去年同期增加 33% 至 4,100 萬美元。增加主要由較高的薪酬費用與行銷方案所致。

R&D was up 7% sequentially and up 28% year-over-year to $13.2 million as we continue to invest and enhance product functionality and to innovate on new products.

研發費用較上一季增加 7%，較去年同期增加 28% 至 1,320 萬美元，因我們持續投資並強化產品功能，並在新產品上進行創新。

G&A increased 3% sequentially and increased 26% year-over-year to $8 million. The year-over-year growth in G&A includes investments in building our teams and other expenses related to becoming a publicly traded company. These expenses exclude $3 million in litigation-related expenses.

一般及行政（G&A）費用較上一季增加 3%，較去年同期增加 26% 至 800 萬美元。G&A 的年增包含我們在團隊建置上的投資，以及與成為上市公司相關的其他費用。上述費用不包含 300 萬美元的訴訟相關費用。

Our fourth quarter operating margin was a positive 9%, which compares to a negative 4% in the same quarter last year.

我們第四季的營業利益率為正 9%，相較去年同期為負 4%。

Net income in the quarter was $9.1 million or non-GAAP earnings per share of $0.07.

本季淨利為 910 萬美元，或非 GAAP 每股盈餘 0.07 美元。

We ended the quarter with $365 million in cash, cash equivalents and short-term investments. Free cash flow was positive $7.6 million in the quarter compared to a positive $11.9 million for the same quarter a year ago. Our ESPP program decreased our free cash flow by approximately $4 million in the quarter, whereas in the year ago quarter, it had a positive $3 million impact. The ESPP program does not impact our overall cash balance.

本季末我們持有 3.65 億美元的現金、約當現金及短期投資。本季自由現金流為正 760 萬美元，相較一年前同季為正 1,190 萬美元。本季員工股票購買計畫（ESPP）使自由現金流減少約 400 萬美元；而一年前同季則帶來正向 300 萬美元的影響。ESPP 計畫不影響我們整體的現金餘額。

Now moving on to guidance. As a reminder, these numbers were all non-GAAP, which excludes stock-based compensation expenses, amortization of intangible assets, certain litigation-related expenses and any associated tax effects. For the first quarter, we expect revenue in the range of $89 million to $90 million, reflecting a year-over-year growth of 41% to 42%. Operating loss in the range of negative $1 million to breakeven. Please note Q1 will include $6 million in expenses for 3 major marketing events, including Zenith Live Americas, Zenith Live Europe and our sales kickoff. Income taxes of $700,000 and earnings per share in the range of $0.00 to $0.01, assuming 139 million common shares outstanding.

接著談財測指引。提醒一下，以下數字皆為非 GAAP，排除股票基礎薪酬費用、無形資產攤銷、特定訴訟相關費用及任何相關稅務影響。第一季我們預期營收介於 8,900 萬至 9,000 萬美元，對應年增 41% 至 42%。營業損失介於負 100 萬美元至損益兩平。請注意，第一季將包含 600 萬美元費用，用於 3 場主要行銷活動，包括 Zenith Live Americas、Zenith Live Europe 以及我們的銷售啟動大會。所得稅為 70 萬美元，每股盈餘介於 0.00 至 0.01 美元，假設流通在外普通股為 1.39 億股。

For the full year fiscal 2020, we expect revenue in the range of $395 million to $405 million, or year-over-year growth of 30% to 34%; calculated billings in the range of $490 million to $500 million, or a year-over-year growth of 26% to 28%; operating profit in the range of $13 million to $18 million; income taxes of $2.8 million; earnings per share in the range of $0.12 to $0.15, assuming approximately 140 million common shares outstanding.

2020 會計年度全年，我們預期營收介於 3.95 億至 4.05 億美元，或年增 30% 至 34%；計算後帳單金額介於 4.90 億至 5.00 億美元，或年增 26% 至 28%；營業利益介於 1,300 萬至 1,800 萬美元；所得稅為 280 萬美元；每股盈餘介於 0.12 至 0.15 美元，假設流通在外普通股約 1.40 億股。

Our guidance reflects plans to invest aggressively in our business to pursue our significant market opportunity. With our CRO on board, we expect to step up our sales and marketing investments in the coming quarters. In addition, we'll increase investments in our technology platform and cloud infrastructure.

我們的指引反映了為把握龐大的市場機會而積極投資業務的計畫。隨著我們的 CRO 到位，我們預期在未來幾季加大銷售與行銷投資。此外，我們也將增加對技術平台與雲端基礎設施的投資。

As you model billings, I want to remind you that historically, Q2 and Q4 have been our strongest billing quarters with sequential declines in Q1 and Q3 quarters, respectively. Over the last 3 to 5 years, first half billings have represented, on average, 43% to 44% of full year billings. In fiscal '20, we expect our first half mix to be in the 42% to 43% range. The reason for this is primarily related to our new CRO getting familiar with our business and fully ramping. Also, please keep in mind that we had a large upfront billing of $11 million in Q2 of 2019 from a large public sector customer deploying our platform as a private cloud, which will pose a tough year-over-year comparison in Q2. Excluding this deal, our billings guidance for the full year implies 29% to 32% growth.

在你們建立帳單金額模型時，我想提醒各位，歷史上第二季與第四季一直是我們帳單最強的季度，而第一季與第三季通常分別會出現季減。過去 3 到 5 年，上半年帳單金額平均約占全年帳單的 43% 至 44%。在 2020 會計年度，我們預期上半年占比將落在 42% 至 43%。主要原因是我們的新 CRO 需要熟悉業務並完成全面到位（ramp）。另外請記得，2019 年第二季我們曾有一筆 1,100 萬美元的大額預先開票，來自一位大型公部門客戶以私有雲方式部署我們的平台，這將使 2020 年第二季的年對年比較更具挑戰。若排除該交易，我們全年帳單指引隱含的成長為 29% 至 32%。

In terms of free cash flow, please note that we'll have additional spend for tenant improvements related to our headquarters' move in January as well as ongoing cash outlays for lease payments on our existing San Jose buildings and litigation expenses related to the ongoing Symantec lawsuit. With our headquarters' move, we expect a modest budget of $4 million to $5 million for tenant improvements. Including these cash payments, we expect our free cash flow margins in fiscal 2020 to be 1 or 2 points lower compared to our operating profit margins. Longer term, we would expect free cash flow margins to be higher than our non-GAAP operating margins.

就自由現金流而言，請注意我們將因 1 月總部搬遷而增加與租戶裝修（tenant improvements）相關的支出，並且仍需持續支付現有聖荷西辦公大樓的租賃款項，以及與持續進行的 Symantec 訴訟相關的訴訟費用。隨著總部搬遷，我們預期租戶裝修的預算約為 400 萬至 500 萬美元。納入這些現金支付後，我們預期 2020 會計年度的自由現金流利潤率將較營業利益率低 1 到 2 個百分點。長期而言，我們預期自由現金流利潤率將高於我們的非 GAAP 營業利益率。

Now I'd like to hand it back over to Jay.

現在我想把時間交還給 Jay。

Thank you, Remo. In summary, designed as a cloud-native, multi-tenant architecture, we believe we are in the early innings of a significant market opportunity to enable cloud transformation. Just like Salesforce and Workday developed cloud-native, multi-tenant platforms to disrupt large legacy software vendors, Zscaler has a similar opportunity to disrupt network security. With multiple tailwinds such as Office 365, SaaS adoption, SD-WAN and app migration to public clouds, we believe the market is coming to us. With the addition of Dali Rajic, we are building a sales organization that can deliver world-class execution.

謝謝你，Remo。總結來說，我們以雲原生、多租戶架構為設計核心，我們相信自己正處於一個重大市場機會的早期階段，可望推動雲端轉型。就像 Salesforce 與 Workday 以雲原生、多租戶平台顛覆大型傳統軟體供應商一樣，Zscaler 也有類似的機會來顛覆網路安全市場。在 Office 365、SaaS 採用、SD-WAN，以及應用程式遷移至公有雲等多重順風因素帶動下，我們相信市場正在向我們靠攏。隨著 Dali Rajic 的加入，我們正在打造一個能夠提供世界級執行力的銷售組織。

We look forward to seeing you at our Zenith Live Cloud Summit and our Analyst Day in Las Vegas, where we will showcase some of our upcoming new products.

我們期待在 Zenith Live Cloud Summit 以及拉斯維加斯的 Analyst Day 與各位見面，屆時我們將展示一些即將推出的新產品。

We thank you for your interest in Zscaler and look forward to reporting on our progress in the future. Operator, you may now open the call for questions.

感謝各位對 Zscaler 的關注，我們也期待未來向各位報告我們的進展。接線員，現在可以開放提問。

(Operator Instructions) And we'll take our first question from Brad Zelnick with Credit Suisse.

(接線員指示) 我們的第一個問題來自 Credit Suisse 的 Brad Zelnick。

Can you guys hear me?

你們聽得到我嗎？

Yes.

聽得到。

Yes.

聽得到。

Excellent. Congrats on a fantastic year. Excellent, excellent. So congrats on a fantastic year and it's great to see your sustained growth above 50% if we make the proper adjustments. Jay, I wanted to ask you about your comment about large deals taking longer to close. What are the proof points that suggest to you that this may be due to macro deterioration versus perhaps execution issues? And what gives you the confidence this isn't a change in the competitive dynamic for what you're selling?

太好了。恭喜你們交出非常出色的一年成績。非常好、非常好。所以恭喜你們有個精彩的一年；如果做適當調整，很高興看到你們持續維持在 50% 以上的成長。Jay，我想請教你提到大型交易需要更久才能結案的評論。有哪些佐證讓你認為這可能是因為總體環境惡化，而不是執行面問題？另外，你憑什麼有信心這不是你們所銷售產品的競爭態勢發生改變？

Yes. So we deal with a large number of deals. Our pipeline has been growing. The comment we made was that some of the larger deals took longer, talking about macro versus competition. I can tell you that if we analyze our top 50 deals, which we did, we rarely see any competitor.... real competition from our firewall guys or any other guys. So our competitive rate remains very, very strong.

是的。我們在處理大量交易案。我們的管線一直在成長。我們的意思是，有些較大型的案子花了更久時間；你問的是總體環境與競爭的因素。我可以告訴你，如果我們分析我們的前 50 大交易（我們確實做了），我們很少看到任何競爭對手……來自我們所謂防火牆廠商或其他廠商的真正競爭。因此我們的競爭勝率仍然非常、非常強。

On the macro level, we haven't seen any significant things to really say that macro is playing a role in it. We do believe that as a large number of reps are being hired, they all need to go through a bit more sophisticated sales methodologies, sales framework and the like so we can keep on scaling the successful execution we have been doing so far. So not worried about any competitive pressures. No clear indications on the macro, though that kind of remains to be seen as everyone does talk about them. But we are excited that we have a new CRO who can help us further scale the kind of work we've done before to the next level.

在總體層面，我們尚未看到任何顯著跡象足以說明總體環境正在影響它。我們確實相信，隨著大量業務代表被招募進來，他們都需要採用更成熟的銷售方法論、銷售框架等，讓我們能持續擴大迄今為止成功的執行模式。所以我們不擔心任何競爭壓力。總體面也沒有明確訊號，雖然這類議題大家都在談，後續仍有待觀察。但我們很振奮，因為我們有一位新的 CRO，能協助我們把過去的成果進一步擴大到下一個層級。

Congrats on the hire. And just a follow-up on this topic with Remo, if we look at long-term deferreds, it would seem there as well that duration might be shrinking a bit from what it had been last quarter. Is this due to the same dynamics that Jay is discussing? Or are there other factors to consider as well? What's baked into your guidance for the full year? Is it more of what you're seeing exiting fiscal '19? Or is it assuming what you saw on average throughout the entire year?

恭喜這項人事任命。另外就這個主題追問 Remo：如果我們看長期遞延收入，似乎合約期間也可能比上一季略為縮短。這是否與 Jay 所談的相同動態有關？或者還有其他因素也需要考量？你們對全年指引中已納入哪些假設？是更偏向你們在 2019 會計年度結束時所看到的狀況？還是假設整個年度平均所看到的狀況？

Yes. Thank you, Brad. My guidance basically is what we've seen through the entire year based on duration. If you take a look at total deferred revenue, it grew 53%. Short-term deferred revenue grew 57%. And what we have in long-term deferred revenue, we've got that public sector deal, which transfers over from long-term to short-term. I wouldn't think anything different related from a duration perspective in my guidance for fiscal '20.

是的。謝謝你，Brad。我的指引基本上是依據我們整個年度所看到的合約期間表現。如果你看總遞延收入，成長了 53%。短期遞延收入成長了 57%。至於長期遞延收入，我們有一筆公部門交易，會從長期轉到短期。就合約期間的角度而言，我不認為我在 2020 會計年度的指引中有任何不同的假設。

We'll take our next question from Alex Henderson with Needham & Company.

下一個問題來自 Needham & Company 的 Alex Henderson。

This is Roger Boyd on for Alex. Wondering another way, can you saw what portion of RPO you expect to recognize over the next 12 months?

我是代 Alex 提問的 Roger Boyd。想換個方式問：你們預期在未來 12 個月內會認列多少比例的 RPO？

So the CRPO is -- it's about 45 -- I'm sorry, the CRPO is $305 million. So that'll be over the next 12 months.

所以 CRPO 是——大約 45——抱歉，CRPO 是 3.05 億美元。因此這會在接下來 12 個月內認列。

Got it. And then on sales execution, I was wondering if you could just provide some detail on what you offer in terms of channel enablement and what you do for your partners in the way of training and education to help them smooth out their deployments?

了解。接著在銷售執行方面，我想請你們多提供一些細節：你們在通路賦能方面提供哪些支援？以及你們如何為合作夥伴提供訓練與教育，協助他們讓部署更順暢？

Yes. So 2 questions here. One is, what are we doing to enable our partners? And the second question is about deployment. Remember, we have said all along that our sale is not a typical security appliance type of sale where you train hundreds of our channel and they grow and sell to technical people. We are fundamental to enabling cloud transformations. So sales is driven top down at the C levels, CIO, CTO, CSO. So our best channel partners are system integrators and service providers, though we end up doing a fair amount of heavy lifting. And the heavy lifting is natural because when you're doing, driving a new transformational sale, when you're disrupting the old world, you have to drive high touch. But as I indicated in one of the wins I highlighted, our SI partners are doing a great job.

是的。這裡有兩個問題。第一個是，我們如何賦能合作夥伴？第二個問題是關於部署。請記得，我們一直以來都說，我們的銷售不是典型的資安設備式銷售——不是那種你訓練數百家通路，然後他們去成長、去賣給技術人員的模式。我們的核心是在推動雲端轉型。因此銷售是由上而下、在 C-level 推動：CIO、CTO、CSO。所以我們最好的通路夥伴是系統整合商與服務供應商，儘管我們最後仍會做相當多的重度投入。而這種重度投入是很自然的，因為當你在推動一個新的轉型型銷售、在顛覆舊世界時，你必須採取高接觸（high touch）的方式。但正如我在其中一個我提到的成功案例中所指出的，我們的 SI 夥伴做得非常好。

Regarding deployment, actually, Zscaler is relatively easier to deploy. We do train our channel partners. We also have our own sales, sorry, deployment teams that work with channel partners. Our deployments happen pretty well, fairly fast, and customers overall are very happy, as you can see from our net retention rate and also our churn rate, which has been pretty low.

至於部署，其實 Zscaler 相對更容易部署。我們確實會訓練通路夥伴。我們也有自己的銷售——抱歉，是部署團隊——會與通路夥伴一起合作。我們的部署進行得相當順利、速度也很快；整體而言客戶非常滿意，從我們的淨留存率以及相當低的流失率就看得出來。

Moving next, we'll go to Tal Liani with Bank of America.

接下來我們請 Bank of America 的 Tal Liani 提問。

I have 2 questions. Number one is more a high-level question for Jay. Last week, there was an analyst day of one of the competitors that said that in the long run, proxies are not the right solution and the right solution is to offer the same services from the network, and this was a firewall company. I'm wondering if your stock is going down on this, I'm wondering if you can address this issue directly. The second thing is, is there anything you're planning on doing outside of what you discussed, is there anything you plan on doing to address the slower sales growth because of the environment that you noted? And is there...

我有兩個問題。第一個是給 Jay 的較高層次問題。上週，有一家競爭對手舉辦分析師日，提到長期來看 proxy 並不是正確的解決方案，正確的解決方案是從網路端提供相同的服務，而那是一家防火牆公司。我想知道你們的股價是否因此下跌；也想請你直接回應這個議題。第二個是，除了你們已經討論過的內容之外，你們是否還計畫採取任何行動，來因應你們提到的環境因素所造成的銷售成長放緩？以及是否有……

So first of all, about proxy. I think if you asked any expert out there what security inspection technology gives you better capability to inspect on log threats, I think 99% of smart people agree, it's a proxy technology. So I think statements like that made by competition, clearly make zero sense. In fact, a lot of you work for large banks, right? You care about security.

首先，關於代理（proxy）。我認為如果你去問任何一位專家，哪一種安全檢測技術能讓你更有能力去檢查記錄中的威脅，我想 99% 的聰明人都會同意：是代理技術。所以我認為競爭對手做出那樣的說法，顯然毫無道理。事實上，你們很多人都在大型銀行工作，對吧？你們很重視安全。

If you look at the top 10 large banks in the world and how many of them have next-gen firewall, lots of them. How many of them replaced a proxy technology for outbound traffic, I believe you'll find it 0. In fact, I know of a very large bank that has spent tens of millions of dollars on a next-gen firewall and deployed it all over. And this bank, is still depending upon a proxy technology to inspect their traffic for threats. That's one piece. Two, if you looked at any vendor who is doing any meaningful thing, -- even sitting in front of servers, like Akamais of the world, they all have proxy-based technology because without proxy, you have little or no control.

如果你看看全球前 10 大銀行，以及其中有多少家部署了次世代防火牆，很多都有。那麼有多少家把用於對外（outbound）流量的代理技術替換掉了？我相信你會發現是 0。事實上，我知道有一家非常大型的銀行，在次世代防火牆上花了數千萬美元，並且在各處部署。而這家銀行仍然依賴代理技術來檢查其流量中的威脅。這是一點。第二，如果你看看任何正在做有意義事情的供應商——甚至是坐在伺服器前面，例如像 Akamai 這類公司——他們都有以代理為基礎的技術，因為沒有代理，你幾乎沒有控制力。

Lastly, firewall, which is a pass-through device was a good thing before the SSL world when traffic was not encrypted. Today, in most of the cases, 90% plus of cases, it's SSL traffic, TLS traffic. Firewalls were never designed to inspect SSL, proxy technologies needed are for SSL. If you really don't inspect the traffic, it is like your luggage passing through an airport inspection check post without being inspected. That's not a good thing.

最後，防火牆這種「直通式」設備，在 SSL 時代之前、流量尚未加密時，是個好東西。但今天在多數情況下，90% 以上都是 SSL 流量、TLS 流量。防火牆從來就不是為了檢查 SSL 而設計的；針對 SSL 需要的是代理技術。如果你真的不去檢查流量，就像你的行李通過機場安檢關卡卻沒有被檢查一樣。那不是好事。

So I think these statements are meaningless. They mislead customers. They give them a false sense of security and do a disservice to the security industry.

所以我認為這些說法毫無意義。它們會誤導客戶。它們讓客戶產生錯誤的安全感，並且對資安產業造成傷害。

From a growth perspective, things that we've done. We've been up without a CRO for about 1.5-years. That was deliberate on our part, Jay's part, to make sure we found the right person. So we did not want to jump the gun and hire the wrong person. We feel that we have the absolute right person to run our sales organization.

從成長的角度來看，我們做過的一些事情。我們在沒有 CRO（營收長）的情況下運作了大約 1.5 年。那是我們刻意的安排，也是 Jay 的決定，為了確保我們找到合適的人選。所以我們不想操之過急、聘錯人。我們認為我們已經找到最合適的人來領導我們的銷售組織。

Also, we've hired -- we made several hires over the last 4 to 6 months. The VP of Federal, the VP of the East, a new VP General Manager of EMEA, the CRO and the VP of Sales Enablement. We see this as a large market opportunity. And we're going to increase our sales and marketing efforts in fiscal '20. Having the right person on board gives us confidence to invest more into our sales and marketing organization to maximize these market opportunities.

另外，在過去 4 到 6 個月，我們也做了幾項招募——聯邦業務副總裁、東區副總裁、新的 EMEA（歐洲、中東與非洲）副總裁兼總經理、CRO，以及銷售賦能副總裁。我們把這視為一個龐大的市場機會。而且我們將在 2020 會計年度加大銷售與行銷投入。有合適的人加入，讓我們更有信心加碼投資銷售與行銷組織，以最大化這些市場機會。

Yes. If I may add, I mean as we compete out there, we almost win every deal, very few situations where we don't win. So we are very comfortable. We've got differentiated technology. Very comfortable with our sales process which we have refined. We just need to make sure we can keep on scaling it as we set our targets for bigger and bigger numbers.

是的。如果我可以補充一下，當我們在市場上競爭時，我們幾乎每一筆案子都能贏，只有極少數情況沒有贏。所以我們非常有信心。我們擁有差異化的技術。我們也對已經精煉過的銷售流程非常有把握。我們只需要確保，當我們把目標設定為越來越大的數字時，能持續把這套流程規模化。

So given the comments you just mentioned, does it mean it's going to take you longer to get to your margin target as you change the trajectory of margin improvement?

所以基於你剛才提到的評論，這是否意味著，當你調整利潤率改善的軌跡時，你達到利潤率目標所需的時間會更長？

No. I mean, from our perspective what we said all along, if we get to our operating model of 20%, 22% operating profitability, once we're at $800 million to $1 billion, there's no change in that. The one change related to the guidance is that we brought down the first half down to 42%, 43% versus historically where we've been 43%, 44% in of our total billings. The reason for that is that with Dali coming on board, he's going to take some time to get ramped up, to understand the landscape. So we want to give him some room related to our billing guidance.

不會。我的意思是，從我們的角度，我們一直以來所說的是：一旦我們達到 20%、22% 的營運獲利率這個營運模型，且營收規模到 8 億到 10 億美元時，這點沒有改變。與財測相關的唯一變化是：我們把上半年占總帳單金額（billings）的比重下修到 42%、43%，相較於過去歷史上大約是 43%、44%。原因是 Dali 加入後，他需要一些時間上手、了解整體環境。因此在帳單金額指引方面，我們想給他一些空間。

Our next question will come from Andrew Nowinski with Piper Jaffray.

下一個問題來自 Piper Jaffray 的 Andrew Nowinski。

Congrats on the nice quarter. Maybe if you could just start with, I know in the past, you've talked about Office 365 as a significant tailwind for Zscaler. I'm just wondering if you can give us any parameters on how we should think about that in terms of what's left in fiscal -- as we head into fiscal '20. And if you can also just rank order your top growth drivers impacting your fiscal '20 guidance.

恭喜這一季表現不錯。也許我先從這裡開始：我知道過去你們談到 Office 365 對 Zscaler 是一個重要的順風因素。我想請問，你們能否提供一些參數，讓我們理解在 2020 會計年度即將到來之際，這個因素還剩下多少動能？另外，也請你們把影響你們 2020 會計年度財測的主要成長驅動因素，依重要性排序。

Yes. Office 365 has been a big driver because Office 365 almost requires that you do local breakout and that's because the amount of traffic generated by Office 365 is far, far bigger than all other SaaS applications combined. So that's point number one.

好的。Office 365 一直是很大的驅動因素，因為 Office 365 幾乎要求你做本地分流（local breakout），原因是 Office 365 產生的流量，遠遠大於所有其他 SaaS 應用加總。這是第一點。

Point number two, today, about 20% of the largest Global 2000 companies are Zscaler customers. That means about 80% aren't. Most of the customers have bought Office 365, but the deployment is lagging behind. Zscaler comes in to help do local breakouts. So deployment can happen cost effectively with better response time. So we see a significant opportunity for Office 365 ahead of us. We are not linked to the sale of Office 365. We are needed for the deployment of Office 365.

第二點，目前全球 2000 大企業中，約有 20% 是 Zscaler 客戶。這表示大約 80% 還不是。多數客戶都已經購買 Office 365，但部署進度落後。Zscaler 進來協助做本地分流。因此部署可以更具成本效益，且回應時間更好。所以我們看到 Office 365 在我們前方仍有顯著機會。我們不與 Office 365 的銷售綁定。我們是 Office 365 部署所需要的。

The second big driver for us is SD-WAN. SD-WAN technology is evolving. Actually, SD-WAN is also driven by a big part because of Office 365 and local breakout type of deployments. If you look at all the SD-WAN deployments are happening in large enterprises. Zscaler is often the choice to secure those SD-WAN's. So that's a big opportunity as well.

第二個對我們而言的重要驅動因素是 SD-WAN。SD-WAN 技術正在演進。其實 SD-WAN 也在很大程度上是由 Office 365 與本地分流這類部署所帶動。如果你看所有正在大型企業發生的 SD-WAN 部署，Zscaler 往往是用來保護這些 SD-WAN 的首選。所以這也是一個很大的機會。

So among the drivers, I would say Office 365 and SD-WAN are our top 2 drivers, along with ability to provide security, especially with the SSL traffic happening out there at a much larger scale than it used to be.

所以在這些驅動因素之中，我會說 Office 365 和 SD-WAN 是我們前兩大驅動因素，另外還包括我們提供安全防護的能力，特別是在外部 SSL 流量規模比過去大得多的情況下。

Our next question will come from Saket Kalia with Barclays.

下一個問題來自 Barclays 的 Saket Kalia。

First, maybe for you, Jay, when you're talking about competition from the firewall players, I guess, the major change that's happened in the last 90 days has been one of the major appliance vendors of course, changing hands. So I'm curious, and of course, I'm talking about Broadcom Symantec. I'm curious, how have your conversations with customers changed, if at all, since that's been announced?

首先，可能想問你，Jay，當你談到來自防火牆廠商的競爭時，我想過去 90 天發生的最大變化之一，是其中一家主要的設備供應商當然已經易主。所以我很好奇——而且我指的當然是 Broadcom 併購 Symantec。我想了解，自從這件事宣布以來，你們與客戶的對話是否有任何改變？如果有，改變在哪裡？

Yes. So first of all, the large enterprises we are dealing with, largely if there's one solution that's deployed besides Zscaler for outbound traffic, it is Symantec Blue Coat. On the lower end, you start seeing other proxies from different vendors. And our success in the large enterprise has been by displacing those proxy appliances. So as I went out and met customers, which I often do, where the customers in the past felt that yes, they need to change, but they'll make a change over time. It is more urgent because of uncertainty in the space. So we do believe that we'll be the beneficiary of this change.

是的。首先，我們所面對的大型企業，多半在對外流量方面，除了部署 Zscaler 之外，若還有另一套解決方案，那就是 Symantec Blue Coat。在較低端的市場，你會開始看到來自不同供應商的其他代理（proxy）。而我們在大型企業的成功，主要是透過取代那些代理設備（proxy appliances）而來。因此，當我外出拜訪客戶（我經常這麼做）時，過去客戶覺得是的，他們需要改變，但會隨時間逐步更換。但由於這個領域的不確定性，現在變得更為迫切。所以我們確實相信，我們將會是這波變革的受益者。

Got it. That make sense. And for my follow-up for you, Remo. As we think about the billings guide for next year, how do you sort of thought about the big deal environment? It sounds like you're in Q4, maybe some large deals took a little bit longer to close. What have you assumed about large deals in your fiscal '20 guide?

了解。這很合理。接著我想追問你，Remo。在我們思考明年的帳單（billings）指引時，你如何看待大型交易的環境？聽起來在第四季，可能有些大型案子花了更久時間才結案。在你們 2020 財年的指引中，對大型交易做了哪些假設？

Yes. I would say they're going to get back to similar levels since they were in fiscal '19. I mean there's a lot of things that go into the guidance. I mean, it's the new CRO on board, trajectory of hiring and so forth. Let's say it's going to be pretty similar.

是的。我會說它們會回到與 2019 財年相近的水準。我的意思是，指引裡面有很多因素。例如新任 CRO 到位、招募進度的走勢等等。總之，應該會非常相似。

We'll go next to Dan Ives with Wedbush Securities.

接下來我們請 Wedbush Securities 的 Dan Ives 提問。

Can you just talk about maybe some of the hiring plans in fiscal '20 and maybe how that would be even U.S. versus international?

你能談談 2020 財年的一些招募計畫嗎？以及美國與國際之間的配置大概會如何？

Yes. I -- so the total hires that we had in fiscal '19, we had net hires of about 430 employees. My expectation is that we'll hire and are planning for hiring more people than that. The concentration of the hiring is going to be in sales and marketing, #1. R&D, #2. Cloud operations support, #3, and then basically everything else.

是的。我——我們在 2019 財年的總招募人數，淨增約 430 名員工。我的預期是，我們會招募、也正在規劃招募比這更多的人。招募的重點會集中在銷售與行銷，第一。研發，第二。雲端營運支援，第三，然後基本上是其他所有部門。

When I take a look at geographically, if you take a look at the distribution we have at Zscaler, about 1/3 of the employees are here in our headquarters in San Jose, 1/3 are in India and 1/3, the rest of the world.

從地理分布來看，如果你看 Zscaler 的人員分布，大約 1/3 的員工在我們位於聖荷西的總部，1/3 在印度，另外 1/3 在世界其他地區。

India has been ticking up a little bit over the last few quarters. We've got 2 offices, one in Chandigarh and one in Bangalore. So my expectation is the percentages will probably be pretty similar, maybe a little bit more in India versus the rest of the world, but pretty similar percentages based on what we have currently.

過去幾個季度，印度的比例有些微上升。我們在印度有兩個辦公室，一個在 Chandigarh，一個在 Bangalore。所以我的預期是，各地百分比大概會相當接近，可能印度相對於世界其他地區會再多一點點，但整體比例會與目前相當類似。

Got it. And if I think about 7-figure deals, there's a lot of deals in the pipeline. How many -- do you think most of those deals right now -- it's only Zscaler in those deals in terms of them being noncompetitive. Maybe just talk about that, and the questions I ask about competitive dynamics. Maybe just talk about is there any change there, just from a high level, talk about what you're seeing in sales cycles.

了解。如果我想到 7 位數的交易，管線裡有很多案子。其中有多少——你認為目前那些案子大多是只有 Zscaler 參與、也就是沒有競爭對手的情況嗎？也請談談這點，以及我之所以問是想了解競爭態勢。從高層次來看，是否有任何變化？也請談談你在銷售週期上看到的情況。

Yes. So -- and as you would expect, large enterprises, when they go and make a change, they do look for multiple providers as a standard process, as a standard practice. But what's exciting that I find in this company that I've never seen before is when a large enterprise goes to RFP with 5 service providers for the network transformation and Zscaler, being -- local breakout being part of it, we quite often get bid by all 5 providers, which is very exciting. And sometimes it may be 4. And most of the times, the other 1 or 2 providers end up being typical proxy vendors you would expect because thats what large enterprises expect. And we win those deals hands down. We do very well. So that's why we aren't worried about the competition.

是的。所以——如你所預期，大型企業在做變更時，通常會依照標準流程、標準作法去尋找多家供應商。但我在這家公司看到一件很令人振奮、以前從未見過的事：當大型企業針對網路轉型（其中包含 Zscaler 作為本地分流 local breakout 的一部分）發出 RFP 給 5 家服務供應商時，我們常常會同時被這 5 家都納入投標，這非常令人興奮。有時可能是 4 家。而多數時候，其他 1 到 2 家供應商最後會是你所預期的典型代理（proxy）廠商，因為大型企業就是會期待看到這些。而我們在這些案子中往往是壓倒性勝出。我們表現非常好。所以這就是為什麼我們不擔心競爭。

There's a lot of noise we hear about the firewall guys, okay. And it makes no sense. In fact, last week, as someone alluded to, they talked about displacing Zscaler in 2 deals. And I said I'm not sure what they're talking about. I know every Zscaler customer with over 1 million users, and they're all very happy and doing very well. Regarding displacement at a Fortune 50 retail customer they alluded to, I personally know every Fortune 100 Zscaler customer, and we did not lose any. So people, I think when they get desperate, they look for leading information. I've analyzed the top 50 deals and we rarely see this firewall vendor in there. We do expect to see further misleading claims in the future from legacy firewall vendors who are trying to tout this cloud security events. When legacy secured web gate vendors were trying to compete with Zscaler. We saw the same behavior. They tried to upgrade the security appliances. They gave away the cloud, and they would falsely claim it as a cloud security win and displacement of Zscaler.

我們聽到很多關於防火牆廠商的雜音，好嗎。而那毫無道理。事實上，上週有人提到，他們談到在兩個案子中取代了 Zscaler。我說我不確定他們在講什麼。我知道每一個擁有超過 100 萬使用者的 Zscaler 客戶，他們都非常滿意、運作得很好。至於他們影射在一家《財富》50 大零售客戶那裡發生取代，我個人認識每一個《財富》100 大的 Zscaler 客戶，而我們沒有丟掉任何一家。所以我認為，人們在走投無路時，就會去找一些有利的資訊。我分析了前 50 大交易，我們很少在其中看到這家防火牆供應商。我們確實預期，未來還會看到更多來自傳統防火牆供應商的誤導性說法，他們試圖藉由宣傳這些雲端安全事件來造勢。當傳統的安全 Web 閘道（secured web gate）供應商試圖與 Zscaler 競爭時，我們也看過同樣的行為。他們試圖升級安全設備。他們把雲端免費送，然後還會錯誤地宣稱那是雲端安全的勝利、以及取代了 Zscaler。

On technology, our differentiation stays strong. Our sales methodologies stay strong. We just need to make sure we can scale our sales execution well as the numbers keep on getting bigger and bigger.

在技術方面，我們的差異化依然強勁。我們的銷售方法論依然強勁。我們只需要確保，隨著數字愈來愈大，我們能把銷售執行良好地擴展（scale）。

Our next question will come from Joshua Tilton with Berenberg Capital Markets.

下一個問題來自 Berenberg Capital Markets 的 Joshua Tilton。

This is Frank [Sloan] for Joshua. We were trying to understand the focuses on the win, winning the market, but could you possibly speak to how you're seeing pricing developed. Has it been improving? How have average deal sizes been trending? Any commentary around that will be helpful. And then one more follow-up on the macro and EMEA. Have you seen any signs of slowdowns in that region due to these macro fears? thank you.

我是代 Joshua 提問的 Frank [Sloan]。我們想了解你們在聚焦於勝出、贏得市場的同時，能否談談你們看到的定價走勢。是否有改善？平均交易規模的趨勢如何？任何相關評論都會很有幫助。另外再追問一個關於總體環境與 EMEA 的問題。由於這些對總體的擔憂，你們是否在該區域看到任何放緩的跡象？謝謝。

Yes, I'll try to answer a few. Average deal size is based on ARR for customers with greater than 3,000 users, has gone up every quarter. And it did go up in Q4. Related to any pricing pressure, our discounting, quarter-to-quarter, Q3 to Q4, year-over-year for new and upsell business is lower. So no, we're not seeing the pricing pressure. Related to EMEA, I'll let Jay talk more about that.

是的，我會試著回答幾點。以使用者數大於 3,000 的客戶、以 ARR 計算的平均交易規模，每一季都在上升。而且在第四季也有上升。至於任何定價壓力，我們的折扣幅度，無論是季對季（Q3 到 Q4）或年對年，在新單與加購（upsell）業務上都更低。所以不，我們沒有看到定價壓力。關於 EMEA，我會讓 Jay 再多談一些。

Yes. EMEA, there's a fair amount of talk on Brexit. You can hardly see a newspaper without a news about it. We do wonder about it, but we haven't seen any tangible effect on the business. We do see customers talking about some of the uncertainty out there. Can I put my pulse on a big event? I'm watching carefully. I'm not sure I can put it on.

是的。在 EMEA，關於英國脫歐（Brexit）的討論相當多。你幾乎看不到一份報紙不報導它。我們確實會關注，但尚未看到對業務有任何具體的影響。我們確實看到客戶在談論外部的一些不確定性。我能否明確感受到一個重大事件的脈動？我正在密切觀察。我不確定我是否能把它說得很具體。

I think we need to, probably we have some work to do to hiring in scaling the business. We brought in a new leader in EMEA last quarter. He's doing a great job ramping up the sales teams and really scaling it to where we need to go. I want to remind you guys that we are unusually large in EMEA or internationally. At our stage of the company, 50% of the business comes from international and about 40% of that come from EMEA, I'd say. Very important market for us and we'll remain focused on investing there to keep that kind of market share.

我認為我們需要——可能在招募人員、擴編以擴大業務規模方面還有一些工作要做。我們在上個季度於 EMEA 引進了一位新的領導者。他在擴充銷售團隊、並真正把規模擴展到我們需要達到的程度方面做得非常好。我想提醒各位，我們在 EMEA 或在國際市場上的占比異常地大。以我們公司目前的階段來看，50% 的業務來自國際市場，而其中約 40% 來自 EMEA，我會這麼說。這對我們是非常重要的市場，我們也會持續專注於在那裡投資，以維持這樣的市占率。

Our next question will come from Gray Powell with Deutsche Bank.

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

Maybe just a couple of questions. So one, if I look at the guidance and I look at revenue growth in absolute dollar terms, in fiscal '19, you added a little over $110 million in new revenue, just on total revenue basis. And the guide for fiscal '20 implies that you add a little bit less than $100 million. So is there any reason that the absolute dollar growth should go down, particularly given the sales and marketing investments that you made?

也許就兩個問題。第一，如果我看你們的指引，並以絕對美元金額來看營收成長，在 2019 財年，你們新增了略高於 1.10 億美元的新營收（以總營收口徑）。而 2020 財年的指引意味著你們新增的金額略低於 1.00 億美元。所以，為什麼絕對美元的成長會下降？特別是考量到你們在銷售與行銷上的投資。

We like to be prudent with our guidance, and our guidance we feel is prudent.

我們在給出指引時希望保持審慎，而我們認為目前的指引是審慎的。

Okay. Fair enough. Good answer. Maybe just one on the product side, then. What kind of improvements have you made on the cloud firewall functionality? And how do you feel about the potential to displace branch office firewalls?

好的。有道理。回答得很好。那再問一個產品面的問題。你們在雲端防火牆功能上做了哪些改進？以及你們如何看待取代分支辦公室防火牆的潛力？

So potential to replace branch office firewalls, we have done tons and tons and tons of that. So first of all, if someone is talking about firewall, cloud firewall, Zscaler lacking functionality, they may be getting mixed up with the data center firewall. Many times I talk to customers, this is what they say. They say, the firewall guys were here. They are telling me that you should have the same policy in your branch firewall and that it is a new data center. I say, okay, tell me more. How many rules do you have in your data center firewall? I say 6,000. In fact, they say I bought 2 products to manage those firewall rules. I say, of course, your data centers get complex over time, NATing and everything. I said, what are you trying to protect in your branch office? The answer is employees. What's the difference between when you sit in a branch office or you sit in an airport and a coffee shop? They say, nothing. Are you really putting a firewall with 6,000 rules at your home or every branch office? That's silly.

關於取代分支辦公室防火牆的潛力，我們已經做了非常非常多這類替換。首先，如果有人在談防火牆、雲端防火牆，說 Zscaler 功能不足，他們可能把它和資料中心防火牆混為一談了。很多時候我跟客戶聊，他們是這麼說的。他們說，防火牆廠商的人來過了。他們告訴我，你應該在分支防火牆上套用與資料中心相同的政策，而且分支就是一個新的資料中心。我說，好，請多說一點。你們資料中心防火牆有多少條規則？他們說 6,000 條。事實上，他們還說我買了 2 個產品來管理那些防火牆規則。我說，當然，資料中心隨著時間會變得很複雜，NAT 等等。我說，你在分支辦公室要保護的是什麼？答案是員工。那你坐在分支辦公室，或坐在機場、咖啡店，有什麼差別？他們說，沒有。你真的會在家裡或每個分支辦公室都放一個有 6,000 條規則的防火牆嗎？那太荒謬了。

So firewalls in a branch office or outbound traffic are very straightforward. In fact, most of the case, they aren't even needed. They are needed because somebody feels like they should have it. The reason they are not needed is, when you don't have anything coming from outside in, you have no listening port. Your pack surface becomes 0, that's when you have the best security, and that's really what should be done.

所以，分支辦公室的防火牆或外送（outbound）流量其實非常直接。事實上，多數情況下甚至不需要。之所以需要，是因為有人覺得「應該要有」。之所以不需要，是因為當你沒有任何從外部進來的流量時，你就沒有對外監聽的連接埠（listening port）。你的攻擊面（attack surface）就會變成 0，那才是最佳的安全性，而這才是真正應該做的。

Our firewall is very rich. We never lose any situation. We never have a case when someone said, your branch firewall is not rich enough. Now our focus is not really creating lots of rules on branch firewall. Our focus really, working on zero-trust network type of approach, that Gartner talks about, a SASE kind of approach, where you don't even bring people on the network.

我們的防火牆功能非常完整。我們從來不會在任何情境下落敗。我們從未遇到有人說，你們的分支防火牆不夠完整。現在我們的重點並不是在分支防火牆上建立大量規則。我們真正的重點是採用 Gartner 所談的零信任網路（zero-trust network）方法、SASE 類型的方法，在那種架構下你甚至不需要把人帶進網路裡。

So in summary, we're trying to do things the new way where you don't control the network, you don't worry with network security. You securely connect a user to an application and you're simply a switchboard in the middle of it. So very comfortable with technology and the lead we are increasing. And next week, you're going to see some significant, big new areas of expansion that we'll be announcing at Zenith Live.

總結來說，我們試圖用新的方式做事：你不去控制網路，也不必為網路安全煩惱。你是把使用者安全地連到應用程式，而你只是中間的交換台。因此我們對技術非常有信心，而且我們的領先優勢還在擴大。而下週你們會看到一些重大的、全新的擴展領域，我們將在 Zenith Live 上宣布。

Our next question will come from Nick Yako with Cowen and Company.

下一個問題來自 Cowen and Company 的 Nick Yako。

Jay, you mentioned seeing more customers adopt both ZIA and ZPA out of the gate, which is great. I guess I'm just wondering if that's having an outside impact on the sales cycles.

Jay，你提到看到更多客戶一開始就同時採用 ZIA 和 ZPA，這很棒。我想知道這是否會對銷售週期產生額外的影響。

So yes, the bigger the products that you buy, typically, longer the sales cycle. Or if you want to talk about general, the bigger your deal, the longer the sales cycle. But I think our mix has to be -- the mix is not really, I won't say that all, most of our deals are becoming combined ZIA/ZPA. The transformational sale in general is complex. It's top down. You end up securing the support of not just Head of Networking, Head of Security, Head of Architecture. So we have a large number of people who can do it well, but we need to grow that type of sales team along with some of the architects and all, to really make sure we are effectively selling it. And the most exciting thing I found about Dali, he had some of the same top-down selling mindset with value creation and with very good sales methodologies.

是的，你買的產品越多，通常銷售週期就越長。或者更一般地說，交易越大，銷售週期越長。但我認為我們的組合必須是——這個組合其實並不是，我不會說全部，但也不是說我們大多數交易都正在變成 ZIA/ZPA 的組合。轉型式銷售（transformational sale）一般而言是複雜的。它是自上而下的。你最後要爭取的不只是網路主管、安全主管、架構主管的支持。所以我們有很多人能把這件事做得很好，但我們需要擴大這類型的銷售團隊，並搭配一些架構師等人，才能確保我們有效地銷售。而我在 Dali 身上看到最令人興奮的一點是，他也有同樣自上而下、以價值創造為核心的銷售思維，以及非常好的銷售方法論。

So I think we'll be doing a great job in scaling it, to make sure our numbers keep on growing.

所以我認為我們會在擴大規模方面做得很好，確保我們的數字持續成長。

Great. And as a follow-up, as you continue to expand the platform and really address more components of the security stack over time, how do you weigh layering in that new functionality into that transformational bundle versus pricing this new functionality as a separate product or component like you've done with ZPA?

很好。那追問一下，隨著你們持續擴展平台，並在時間推移下涵蓋更多安全堆疊（security stack）的組件，你們如何權衡：把新功能疊加到那個轉型式套裝（transformational bundle）裡，還是像你們對 ZPA 那樣，把這些新功能作為獨立產品或組件來定價？

Yes. I think those are the things you take the market, you look at our option rates, you look at the other market kind of willing to pay and then you change your bundles over time. You have seen us change some of the bundles over the past couple of years. And I think there will be some more changes over time. I think you will see some large platforms being announced that are kind of significant beyond the traditional, typical security we are talking about. I think you'll be pleased with the evolution, rather significant addition of the technology we are doing to further create distance between the cloud imitators and us.

是的。我認為這些事情要看市場：你要看我們的採用率（adoption rates），看市場對其他方案的付費意願，然後隨著時間調整你的套裝組合。你們已經看到我們在過去幾年調整過一些套裝。我認為未來也還會有更多調整。我想你們會看到我們宣布一些大型平台，這些平台在某種程度上會顯著超越我們傳統上所談的典型安全範疇。我想你們會對這個演進感到滿意——我們正在做的技術會有相當顯著的新增，進一步拉開我們與雲端模仿者之間的距離。

And we'll take our next question from Keith Weiss with Morgan Stanley.

接下來我們將進行下一個提問，來自摩根士丹利（Morgan Stanley）的 Keith Weiss。

So I was just asking -- as we're going into the next fiscal year, you have a new CRO who needs time to kind of ramp up. You also have a much broader product portfolio. You're selling a much bigger vision into your customer. How should we think about the kind of degree of change we should expect in the sales force kind of in -- as we enter the year versus prior years? Is there a significant kind of restructuring that we should expect sort of from the get-go? Or is that going to come later in the year once Dali has time to kind of ramp up and come up with a game plan.

所以我想問的是——在我們進入下一個會計年度之際，你們有一位新的 CRO，需要一些時間來逐步上手。你們也有更廣泛的產品組合。你們正在向客戶銷售一個更宏大的願景。我們應該如何看待銷售團隊在——當我們進入新年度時，相較於以往年度，預期會有多大程度的變化？一開始就會有顯著的重組是我們應該預期的嗎？還是會在年度稍晚、等 Dali 有時間逐步上手並制定作戰計畫之後才會發生？

Yes. Dali and I have been discussing it for quite a while. We don't really expect significant change in the sales teams. We do expect a significant change in the sales methodology, sales framework to be able to deliver the message consistently. Those are the kind of refinements we need to do, which need to be consistently gotten across.

是的。Dali 和我已經討論這件事有一段時間了。我們其實不預期銷售團隊會有重大變動。我們確實預期銷售方法論、銷售框架會有顯著改變，以便能夠一致地傳遞訊息。這些就是我們需要做的精進之處，而且需要一致地傳達到位。

We, overall, have a good sales team. We need to make sure our enablement, our training, our metrics do exactly, know what needs to be done is where the focus is. I mean think of it, we all know that, when you go to a certain stage, so 0 to $200 million, $300 million, $400 million, you have one set of stuff as you go to the next big Phase, $1 billion kind of targets, you kind of make a lot of these things in place. And those are the type of things for the next level we are honing on and refining and scaling.

整體而言，我們有一支不錯的銷售團隊。我們需要確保我們的賦能、訓練、指標都能精準到位，清楚知道需要做什麼，這就是重點所在。我的意思是，想想看，我們都知道，當你走到某個階段，例如從 0 到 2 億美元、3 億美元、4 億美元時，你會有一套做法；當你進入下一個更大的階段、以 10 億美元這類目標為導向時，你就會把很多這些事情建置到位。而這些就是我們正在針對下一個層級所聚焦、精煉並擴大規模的事項。

And by the way, all those factors are built into Remo's forecast for 2020.

順帶一提，所有這些因素都已經納入 Remo 對 2020 年的預測之中。

We'll go next to Keith Bachman with BMO.

接下來我們請 BMO 的 Keith Bachman 提問。

It's a good segue from the past question. Jay, I wanted to just push back a little bit. You've mentioned that you still have 80% of the largest enterprise yet to penetrate, and this is an evangelical sale. It requires, in many cases, an architectural change. And so I'm just wondering why you would need to lean on a much more significant sales force in order to keep revenue growth rates and frankly, penetration rates on new logos growing and less dependency on the SI community, who I think is more about fulfillment, given the model that you have.

這正好承接上一個問題。Jay，我想稍微提出不同看法。你提到你們仍有 80% 的最大型企業客戶尚未滲透，而這是一種佈道式（evangelical）的銷售。在許多情況下，它需要架構層面的變更。因此我在想，為什麼你們不需要更大幅度地倚重更顯著擴張的銷售隊伍，以維持營收成長率，坦白說也包括新客戶（new logos）的滲透率持續成長，並降低對 SI 社群的依賴；我認為在你們的模式下，SI 比較偏向交付（fulfillment）。

And so I'm just wondering why sales and marketing expense wouldn't need to keep growing at a pretty high rate, given those attributes. And I'm just going to sneak in just one clarification.

所以我在想，鑑於這些特性，為什麼銷售與行銷費用不需要以相當高的速度持續成長。另外我再偷偷補問一個釐清。

You told us what the CRPO was, $305 million. But I just wanted to see, could you just clarify what the growth rate of that was as well, and that's it for me.

你告訴我們 CRPO 是 3.05 億美元。但我想確認一下，你能否也釐清它的成長率是多少，就這樣。

I'll answer the growth rate. That's, it's 45% year-over-year.

我來回答成長率。也就是年增 45%。

So regarding the first part of the question. I think if you looked at what I said early on, too, I said yes, channel partners do help, but we do tons of heavy lifting. Transformational sales are actually high touch sales. So we are investing significantly in our sales and marketing.

至於問題的第一部分。我想如果你回頭看我先前說的，我也提到是的，通路夥伴確實有幫助，但我們做了大量的重度工作。轉型型銷售其實是高接觸（high touch）的銷售。因此我們正在大幅投資於銷售與行銷。

In fact, if you look at our '20 plan, we haven't brought down sales and marketing as a percentage of revenue, which typically, we would year-over-year. And that's keeping in mind that we need to keep on putting some more gas on it. And I -- if I left another message, impression, then I didn't do a good job. We actually are driving sales with our own sales organizations and channel. It's helping us channel. It's facilitating us. We are getting channel leverage. But all of you should know, when transformation happens, channel can only do so much.

事實上，如果你看我們 2020 年的計畫，我們並沒有把銷售與行銷占營收的比重降下來；通常我們會逐年下降。這是考量到我們需要繼續加大力道。如果我讓大家留下了其他訊息或印象，那就是我沒有把話說清楚。我們實際上是透過我們自己的銷售組織與通路來推動銷售。通路是在幫助我們。它在促進我們的推進。我們正在取得通路槓桿效益。但各位都應該知道，當發生轉型時，通路能做的也有限。

When technology become more mature and commoditized, channel plays a much bigger role. So we are investing. But prudently, right? There's only so much you can invest, in terms of number of sales people, sales and marketing, total headcount, we're adding this year or last year. It's pretty significant. So fully aligned with your -- with the message you said. If I said any otherwise, it wasn't clear.

當技術更成熟並商品化時，通路就會扮演更大的角色。所以我們正在投資。但也會審慎，對吧？你能投資的幅度終究有限，不論是銷售人員數量、銷售與行銷、總人力編制——我們今年或去年增加的人力都相當可觀。這是非常顯著的。所以我完全同意你所說的——你傳達的那個訊息。如果我說得像是相反，那是我表達不夠清楚。

And this does conclude today's question-and-answer session. I'll now turn the call back over to Jay Chaudhry with -- for any additional or closing remarks.

以上即為今天的問答環節。接下來我將把電話交回給 Jay Chaudhry，請他做任何補充或結語。

We thank you for joining us for this call, and we look forward to seeing a number of you at our Zenith Live Conference as well as on our Analyst Day. Otherwise, we will talk to you next quarter. Thank you.

感謝各位參與本次電話會議，我們也期待在 Zenith Live 大會以及分析師日（Analyst Day）見到各位中的許多人。否則，我們將在下個季度再與各位通話。謝謝。

Thank you.

謝謝。

And once again, this concludes today's call. Thank you for your participation. You may now disconnect.

再次提醒，今天的電話會議到此結束。感謝各位的參與。您現在可以掛線。