Zscaler Inc (ZS) 2023 Q3 法說會逐字稿

Welcome to the Zscaler Third Quarter Fiscal Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. In the interest of time and fairness, we ask that you please limit yourselves to 1 question. You may get back in the queue as time allows. (Operator Instructions) As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Mr. Bill Choi, Senior Vice President of Investor Relations and Strategic Finance.

歡迎來到 Zscaler 2023 財年第三季度收益電話會議。此時，所有參與者都處於只聽模式。演講者介紹後，將進行問答環節。為了時間和公平起見，我們要求您將自己限制在 1 個問題上。如果時間允許，您可以回到隊列中。 （操作員說明）提醒一下，今天的節目正在錄製中。現在我想介紹一下今天節目的主持人，投資者關係和戰略財務高級副總裁 Bill Choi 先生。

Good afternoon, everyone, and welcome to the Zscaler Third Quarter Fiscal Year 2023 Earnings Conference Call. On the call with me today are Jay Chaudhry, Chairman and CEO; and Remo Canessa, CFO. Please note that we have posted our earnings release and a supplemental financial schedule to our Investor Relations website. Unless otherwise noted, all numbers we talk about today will be on an adjusted non-GAAP basis. You will find the reconciliation of GAAP to the non-GAAP financial measures in our earnings release.

大家下午好，歡迎來到 Zscaler 2023 財年第三季度收益電話會議。今天與我通電話的是董事長兼首席執行官 Jay Chaudhry；和首席財務官 Remo Canessa。請注意，我們已將收益發布和補充財務時間表發佈到我們的投資者關係網站上。除非另有說明，否則我們今天談論的所有數字都將基於調整後的非 GAAP 基礎。您會在我們的收益發布中找到 GAAP 與非 GAAP 財務指標的對賬。

I'd like to remind you that today's discussion will contain forward-looking statements, 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, future hiring decisions, remaining performance obligations, income taxes, earnings per share our objectives and outlook, our customer response to our products and our market opportunity. These statements and other comments are not guarantees of future performance, but rather are subject to risk and uncertainties, some of which are beyond our control. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future.

我想提醒您，今天的討論將包含前瞻性陳述，包括但不限於公司的預期未來收入、計算的賬單、經營業績、毛利率、經營費用、營業收入、淨收入、自由現金流量、基於美元的淨保留率、未來的僱用決定、剩餘履約義務、所得稅、每股收益、我們的目標和展望、我們的客戶對我們產品的反應以及我們的市場機會。這些陳述和其他評論不是對未來業績的保證，而是受風險和不確定性的影響，其中一些是我們無法控制的。這些前瞻性陳述適用於今天，您不應依賴它們代表我們未來的觀點。

We undertake no obligation to update these statements after this call. For a more complete discussion of the risks and uncertainties, please see our filings with the SEC as well as in today's earnings release. I would like to inform you that we'll be attending the following upcoming events in June. Bank of America Global Tech Conference in San Francisco on June 7, Cantor's Security and Infrastructure Conference on June 9. And we will also host an investor briefing focused on our latest innovations at our Zenith Live Conference on June 15.

我們沒有義務在本次電話會議後更新這些聲明。有關風險和不確定性的更完整討論，請參閱我們向美國證券交易委員會提交的文件以及今天的收益發布。我想通知您，我們將在 6 月參加以下即將舉行的活動。 6 月 7 日在舊金山舉行的美國銀行全球技術會議，6 月 9 日在 Cantor 的安全和基礎設施會議上。我們還將在 6 月 15 日的 Zenith 現場會議上舉辦一場投資者簡報會，重點介紹我們的最新創新。

Now I'll turn the call over to Jay.

現在我會把電話轉給 Jay。

Thank you, Bill. We delivered strong third quarter results with all financial metrics above the high end of the guidance we provided last quarter. On a year-over-year basis, revenue grew by 46%, billings grew by 40% and current billings grew by 44%. Our new business grew significantly across various industry verticals, and we had approximately half of our revenue come from outside the U.S. We have a strong and loyal base of customers with gross retention rates in the high 90s. We have a disciplined approach to growth.

謝謝你，比爾。我們在第三季度取得了強勁的業績，所有財務指標均高於我們上一季度提供的指引的高端。與去年同期相比，收入增長了 46%，賬單增長了 40%，當前賬單增長了 44%。我們的新業務在各個垂直行業都有顯著增長，我們大約一半的收入來自美國以外。我們擁有強大而忠誠的客戶群，總保留率高達 90 年代。我們有紀律嚴明的增長方式。

And once again, our operating income more than doubled on a year-over-year basis. With operating margins now exceeding 15%. While we continue to operate under tighter economic conditions, I believe the comprehensive functionality of our Zero Trust Exchange platform, our strong execution and our customer-first approach will enable us to navigate this macro backdrop and deliver on our guidance. Our consultative sales process enables our account teams to adapt to the changing business environment and stay close to our customers, especially at the C level.

再一次，我們的營業收入同比增長了一倍多。現在營業利潤率超過 15%。雖然我們繼續在更緊縮的經濟條件下運營，但我相信我們零信任交易平台的全面功能、我們強大的執行力和我們客戶至上的方法將使我們能夠駕馭這種宏觀背景並實現我們的指導。我們的諮詢銷售流程使我們的客戶團隊能夠適應不斷變化的業務環境並與我們的客戶保持密切聯繫，尤其是在 C 級。

We are partnering earlier with CXOs to jointly create compelling CFO ready business cases that have clear ROI and payback periods. As our Q3 results demonstrate, this high-touch engagement is helping get deals across the finish line. our go-to-market engine enables us to close many large multiyear, multiproduct deals. We are providing increased guidance for the full year, which we believe balances our business optimism and macroeconomic uncertainties.

我們更早地與 CXO 合作，共同創建引人注目的 CFO 就緒業務案例，這些案例具有明確的投資回報率和投資回收期。正如我們第三季度的結果所表明的那樣，這種高接觸度參與有助於達成交易。我們的上市引擎使我們能夠完成許多大型的多年期、多產品交易。我們正在為全年提供更多的指引，我們認為這可以平衡我們的商業樂觀情緒和宏觀經濟的不確定性。

A few quarters ago, we noted that customers were increasingly scrutinizing their projects and budgets due to macro conditions. We're seeing this elevated level of scrutiny continue in Q3. Nevertheless, we see high priority initiatives still moving forward. In my conversation with hundreds of IT executives, cybersecurity remains their #1 IT priority. Traditional network security based on firewalls and VPNs cannot handle the complexity of safeguarding enterprises in what has become a work from anywhere world given the explosion in ransomware and high-profile data breaches, IT leaders are looking to phase out castle-and-moat security to adopt Zero Trust architecture.

幾個季度前，我們注意到由於宏觀環境，客戶越來越多地審查他們的項目和預算。我們看到這種更高級別的審查在第三季度繼續進行。然而，我們看到高優先級的舉措仍在向前推進。在我與數百名 IT 高管的談話中，網絡安全仍然是他們的第一 IT 優先事項。基於防火牆和 VPN 的傳統網絡安全無法應對保護企業的複雜性，鑑於勒索軟件和備受矚目的數據洩露事件的激增，IT 領導者正在尋求逐步淘汰城堡和護城河安全措施採用零信任架構。

Moreover, C-level leaders from around the globe are telling me that the technical debt of the legacy network and security point products impedes progress and slows down business operations. Our business value message is resonating with customers. Our Zero Trust Exchange offers better security and user experience while substantially reducing cost and IT complexity compared to legacy networking and security. By consolidating point products, and embracing Zero Trust with Zscaler, our customers are modernizing their security and increasing productivity, which gives them the competitive edge they need to succeed in today's rapidly evolving business environment.

此外，來自全球各地的 C 級領導者告訴我，遺留網絡和安全點產品的技術債務阻礙了進步並減慢了業務運營。我們的商業價值信息正在與客戶產生共鳴。與傳統網絡和安全性相比，我們的零信任交換提供更好的安全性和用戶體驗，同時顯著降低成本和 IT 複雜性。通過整合單點產品並採用 Zscaler 實現零信任，我們的客戶正在實現安全現代化並提高生產力，這為他們提供了在當今快速發展的業務環境中取得成功所需的競爭優勢。

We also partner with many tech leaders to deliver easy, jointly integrated solutions for customers, which increases our business value and create go-to-market leverage for us. Our current marketing campaign called Beyond The Perimeter is a great example of the successful field collaboration with our tech partner, CrowdStrike, that is increasing our pipeline. In today's environment, our strategy is to double down on customer success. From presales to deployment and customer success management, we have built our organization to deliver measurable outcomes at the CXO level. We made a number of investments in customer success services, technical account managers, partner services and certification of partners, which together will help our customers move faster towards realizing business value.

我們還與許多技術領導者合作，為客戶提供簡單、聯合集成的解決方案，這增加了我們的業務價值並為我們創造了進入市場的影響力。我們當前名為 Beyond The Perimeter 的營銷活動是與我們的技術合作夥伴 CrowdStrike 成功實地合作的一個很好的例子，它正在增加我們的渠道。在當今環境下，我們的戰略是加倍努力幫助客戶取得成功。從售前到部署和客戶成功管理，我們建立了我們的組織以在 CXO 級別提供可衡量的成果。我們在客戶成功服務、技術客戶經理、合作夥伴服務和合作夥伴認證方面進行了大量投資，這些將共同幫助我們的客戶更快地實現商業價值。

We now have 400 customers with greater than $1 million in ARR, including over 35 customers exceeding $5 million in ARR. In Q3, our new logo business grew approximately 20% year-over-year. Our proven experience at scale makes us the partner of choice for customers pursuing the Zero Trust security journey. We have a blueprint for delivering greater value, which drives strong upsell. Approximately 60% of our new business came from existing customers, and our net retention rate has again exceeded 125%.

我們現在有 400 名客戶的 ARR 超過 100 萬美元，其中包括超過 35 名客戶的 ARR 超過 500 萬美元。第三季度，我們的新標識業務同比增長約 20%。我們經過驗證的大規模經驗使我們成為追求零信任安全之旅的客戶的首選合作夥伴。我們有一個提供更大價值的藍圖，這會推動強勁的追加銷售。我們大約 60% 的新業務來自現有客戶，我們的淨保留率再次超過 125%。

Happy customers buy more and our Net Promoter Score of over 70 is a testament to our strong relationship with our customers. As we have indicated before, we have a 6x upsell opportunity with our existing customers for protecting their users. Our engineering team is innovating at a rapid pace and has expanded our comprehensive platform from securing users to securing workloads as well as securing IoT and OT. As I mentioned before, customers are increasingly buying Zscaler for users, which bundles ZIA, ZPA and ZDX, together. Let me highlight one such platform deal in the quarter. In an exciting upsell win, a fast-growing global bank in APJ upgraded to Zscaler for users bundle for 150,000 users after deploying ZIA last year.

快樂的客戶購買更多，我們超過 70 的淨推薦值證明了我們與客戶的牢固關係。正如我們之前所指出的，我們與現有客戶有 6 倍的追加銷售機會來保護他們的用戶。我們的工程團隊正在快速創新，並將我們的綜合平台從保護用戶擴展到保護工作負載以及保護 IoT 和 OT。正如我之前提到的，客戶越來越多地為用戶購買 Zscaler，它將 ZIA、ZPA 和 ZDX 捆綁在一起。讓我重點介紹本季度的一項此類平台交易。在一次激動人心的追加銷售中，APJ 的一家快速發展的全球銀行在去年部署 ZIA 後為 150,000 名用戶升級到 Zscaler。

With this upgrade, this customer is significantly reducing time to open new branches by 50% and eliminating the need for firewalls and MPLS network services. We are now a strategic partner to them as they continue to expand their footprint and transform into a cloud-centric organization. This customer said, it is the first time they have seen a security vendor that understands the business needs and aligns its solution to address them. With this latest purchase, this customer's ARR surpassed $10 million. This is also an example of the geographic diversity of our business outside the U.S.

通過此次升級，該客戶將開設新分支機構的時間顯著縮短了 50%，並消除了對防火牆和 MPLS 網絡服務的需求。隨著他們繼續擴大足跡並轉型為以雲為中心的組織，我們現在是他們的戰略合作夥伴。這位客戶說，這是他們第一次看到了解業務需求並調整其解決方案來解決這些問題的安全供應商。通過這次最新的購買，該客戶的 ARR 超過了 1000 萬美元。這也是我們在美國以外業務的地理多樣性的一個例子。

Today, we serve 8 out of the 10 largest financial services and diversified insurance companies in the world outside of China. Over the past few quarters, I observed that analysts and investors often equate ZPA with VPN replacement. This is simply not true. ZPA replaces the entire inbound DMC and ZPA is often purchased for all employees. In fact, over half of our ZPA customers have purchased ZPA services for all employees hence, delivering Zero Trust, whether they work in the office or at home. In Q3, ZPA was an area of strong growth, and we saw large new logo deals that landed with ZPA.

今天，我們為中國以外全球 10 家最大的金融服務和多元化保險公司中的 8 家提供服務。在過去的幾個季度裡，我觀察到分析師和投資者經常將 ZPA 等同於 VPN 替代品。這是不正確的。 ZPA 取代了整個入站 DMC，並且 ZPA 通常是為所有員工購買的。事實上，我們一半以上的 ZPA 客戶已經為所有員工購買了 ZPA 服務，因此無論他們是在辦公室還是在家工作，都可以提供零信任服務。在第三季度，ZPA 是一個強勁增長的領域，我們看到了與 ZPA 達成的大量新標識交易。

Let me highlight 2 such deals. A Fortune 100 logistics company made a 4-year multimillion dollar ACV purchase of ZPA and ZDX, for 100,000 users. ZPA provides Zero Trust application access architecture for their employees, partners and suppliers as it consolidates multiple point products, including multiple VPNs, load balancers, VDIs and dedicated private network services. As a result, ZPA is expected to generate a 300% ROI for this customer. In another ZPA land deal, a global 300 tech manufacturing company made a 3-year 7-figure ACV commitment for ZPA and ZDX, for all 30,000 employees.

讓我強調 2 個這樣的交易。一家財富 100 強物流公司為 100,000 名用戶購買了 ZPA 和 ZDX，為期 4 年，價值數百萬美元。 ZPA 為其員工、合作夥伴和供應商提供零信任應用程序訪問架構，因為它整合了多個點產品，包括多個 VPN、負載平衡器、VDI 和專用專用網絡服務。因此，ZPA 有望為該客戶帶來 300% 的投資回報率。在另一項 ZPA 土地交易中，一家全球 300 強科技製造公司為 ZPA 和 ZDX 的所有 30,000 名員工做出了為期 3 年的 7 位數 ACV 承諾。

Cybersecurity was the top priority as their IP in software development and manufacturing was being actively targeted by nation state actors and hackers. Another aspect of our market, not well understood by investors is that scale and performance are paramount considerations to customers in the real world. When you are providing in-line inspection, you cannot have a trade-off between performance and security. Given our large opportunity and our success in the market, it is not surprising to see a number of vendors claiming that they have the same capabilities as we do. They built their products using something known as service function chaining, in order to reduce their time to market.

網絡安全是重中之重，因為他們在軟件開發和製造方面的知識產權正成為民族國家行為者和黑客的積極目標。我們市場的另一個方面，投資者不太了解的是，規模和性能是現實世界中客戶最重要的考慮因素。當您提供在線檢查時，您無法在性能和安全性之間進行權衡。鑑於我們在市場上的巨大機遇和成功，看到許多供應商聲稱他們擁有與我們相同的能力也就不足為奇了。他們使用稱為服務功能鏈的東西構建產品，以縮短上市時間。

The reality is service chaining for in-line traffic inspection using micro services results in poor performance. They are effectively trying to scale lower performance. Our unique architecture with a patented single stand multi-action technology enables us to deliver comprehensive security at high performance and scale. We secured over 40 million users from some of the largest global brands and we surpassed 300 billion transactions daily. We are the largest in-line security cloud, and no one comes close to us. Customers cannot afford to risk the mission-critical operations with immature offerings from unproven vendors.

現實情況是，使用微服務進行在線流量檢查的服務鏈會導致性能不佳。他們正在有效地嘗試擴展較低的性能。我們獨特的架構採用獲得專利的單站多動作技術，使我們能夠以高性能和規模提供全面的安全性。我們從一些最大的全球品牌那裡獲得了超過 4000 萬用戶，我們每天的交易量超過 3000 億筆。我們是最大的在線安全雲，沒有人能與我們相提並論。客戶無法承擔使用未經驗證的供應商提供的不成熟產品來進行關鍵任務操作的風險。

Let me highlight a deal which showcases the scale of our platform. in a large SSE win, a global 30 health care insurance company purchased ZPA and ZDX for 450,000 users and ZIA for 430,000 users. The incumbent CASB provider could not scale to even 5% of the employees when TLS inspection was turned on. At this customer, we are consolidating dozens of point products from a handful of vendors, including DLP, CASB, web proxies, firewalls and VPNs. Our integration with Microsoft E5 suite across ZIA, ZPA and ZDX, was also an important decision factor for them. In addition, the customer will use Zscaler to rapidly integrate new acquisitions in weeks rather than months that are required by legacy network security architecture.

讓我重點介紹一項展示我們平台規模的交易。在 SSE 的一次大勝利中，一家全球 30 家醫療保健保險公司為 450,000 名用戶購買了 ZPA 和 ZDX，為 430,000 名用戶購買了 ZIA。當啟用 TLS 檢查時，現有的 CASB 提供商甚至無法擴展到 5% 的員工。對於這個客戶，我們正在整合來自少數供應商的數十種單點產品，包括 DLP、CASB、Web 代理、防火牆和 VPN。我們在 ZIA、ZPA 和 ZDX 上與 Microsoft E5 套件的集成也是他們的一個重要決策因素。此外，客戶將使用 Zscaler 在幾週內快速集成新的收購，而不是傳統網絡安全架構所需的幾個月。

Next, let me highlight a deal that was led by data protection. In our largest win in the transportation vertical, a Global 50 company purchased the ZIA Transformation Bundle plus ZDX and advanced data protection suite for 165,000 users. Zscaler was chosen over a CASB vendor because of our best-in-class capabilities in DLP, CASB, browser isolation, SSPM and SaaS supply chain security.

接下來，讓我重點介紹一項由數據保護牽頭的交易。在我們在垂直運輸領域取得的最大勝利中，一家全球 50 強公司為 165,000 名用戶購買了 ZIA Transformation Bundle 以及 ZDX 和高級數據保護套件。選擇 Zscaler 而不是 CASB 供應商是因為我們在 DLP、CASB、瀏覽器隔離、SSPM 和 SaaS 供應鏈安全方面具有一流的能力。

And of course, our proven cloud scale and resilience was a big factor. This deal started with data protection and quickly expanded to include web proxy, firewall and sandbox, aim to implement direct-to-cloud architecture across their 6,500 locations. We see more customers buying our data protection along with ZIA and replacing their existing CASB point products. As these deals show, customers are embracing our expanded platform, including our 2 emerging product pillars, ZDX for digital user experience and Zscaler for workloads. These emerging products are on track to meet our full year target of high teens percentage of new business. This quarter, we had an upsell deal with a global 200 bank headquartered in APJ that purchased Zscaler for workloads for 70,000 workloads in a multi-cloud environment.

當然，我們經過驗證的雲規模和彈性是一個重要因素。該交易從數據保護開始，並迅速擴展到包括 Web 代理、防火牆和沙箱，旨在在其 6,500 個地點實施直接到雲的架構。我們看到越來越多的客戶購買了我們的數據保護和 ZIA，並替換了他們現有的 CASB 單點產品。正如這些交易所示，客戶正在接受我們擴展的平台，包括我們的 2 個新興產品支柱，用於數字用戶體驗的 ZDX 和用於工作負載的 Zscaler。這些新興產品有望實現我們的全年新業務百分比目標。本季度，我們與一家總部位於 APJ 的全球 200 強銀行達成了追加銷售協議，該銀行購買了 Zscaler，用於在多雲環境中處理 70,000 個工作負載。

As an existing ZIA customer, it was easy and seamless for them to roll out workload protection, which increased their annual spend with us by 35%. We are also starting to close larger deals with our federal government customers as the Zero Trust deployments move beyond the initial land deals. A cabinet level agency purchased ZIA and ZPA for 110,000 users to cover all of its sub-agencies. After a thorough evaluation, they are standardizing on Zscaler to consolidate multiple point products across the agency and to comply with the President's executive order, which mandates federal agencies to adopt zero trust principles.

作為現有的 ZIA 客戶，他們可以輕鬆無縫地推出工作負載保護，這使他們每年在我們這裡的支出增加了 35%。隨著零信任部署超越最初的土地交易，我們也開始與我們的聯邦政府客戶達成更大的交易。某內閣級機構為 110,000 名用戶購買了 ZIA 和 ZPA，以覆蓋其所有子機構。經過全面評估後，他們正在對 Zscaler 進行標準化，以整合整個機構的多個點產品，並遵守總統的行政命令，該命令要求聯邦機構採用零信任原則。

Our highly scalable and reliable platform and our highest FedRAMP authorizations for both ZIA and ZPA have been key differentiators in this win. Having landed 12 of the 15 cabinet-level agencies we have plenty of opportunity to expand further with these very large organizations. To take our customer-centric innovation to the next level, we welcome Syam Nair as our new CTO, who will lead our R&D teams. Syam has extensive experience in leading and scaling engineering and product development teams, the accelerated innovation cycles at Salesforce and Microsoft. He was a driving force in scaling the AI-powered customer engagement platform at Salesforce, which is critical to the next phase of our AI journey.

我們高度可擴展和可靠的平台以及我們對 ZIA 和 ZPA 的最高 FedRAMP 授權是這次勝利的關鍵差異化因素。在獲得 15 個內閣級機構中的 12 個之後，我們有很多機會與這些非常大的組織進一步擴展。為了將我們以客戶為中心的創新提升到一個新的水平，我們歡迎 Syam Nair 成為我們的新首席技術官，他將領導我們的研發團隊。 Syam 在領導和擴展工程和產品開發團隊、Salesforce 和 Microsoft 的加速創新周期方面擁有豐富的經驗。他是 Salesforce 擴展人工智能客戶參與平台的推動力，這對我們人工智能之旅的下一階段至關重要。

Let me highlight a few examples of how we are leveraging AI/ML to deliver better cyber protection today. Our first acquisition in 2018 was an AI/ML company. we leverage the technology together with Zscaler data to deliver far better detection for zero-day attacks. This resulted in reducing the number of files being sent to our sandboxing engine by 80%, reducing time to detection and improving user experience.

讓我強調幾個例子，說明我們如何利用人工智能/機器學習來提供更好的網絡保護。我們在 2018 年的第一筆收購是一家 AI/ML 公司。我們利用該技術與 Zscaler 數據一起為零日攻擊提供更好的檢測。這導致發送到我們的沙盒引擎的文件數量減少了 80%，減少了檢測時間並改善了用戶體驗。

ZDX, our digital experience service was launched 3 years ago. It was built from the ground up to leverage AI/ML do not just show where performance is degraded, but what caused the issue. The data protection advancements we launched in October 2022, leveraged AI/ML to classify unstructured documents for policy enforcement. And after the launch of ChatGPT, Zscaler delivered policy-based access controls to ensure that customers can use AI applications safely. If the employees submit sensitive data to ChatGPT like applications, our DLP technology detects it and blocks it. While plenty of AI apps like ChatGPT, GPT-4, Bard and Bedrock used public data, AI-powered cyber security for enterprises requires their own private data.

ZDX，我們的數字體驗服務於 3 年前推出。它是從頭開始構建的，以利用 AI/ML 不僅顯示性能下降的位置，還顯示導致問題的原因。我們於 2022 年 10 月推出的數據保護改進利用 AI/ML 對非結構化文檔進行分類以執行政策。在推出 ChatGPT 後，Zscaler 提供了基於策略的訪問控制，以確保客戶可以安全地使用 AI 應用程序。如果員工向應用程序之類的 ChatGPT 提交敏感數據，我們的 DLP 技術會檢測到並阻止它。雖然 ChatGPT、GPT-4、Bard 和 Bedrock 等大量人工智能應用程序使用公共數據，但企業的人工智能網絡安全需要他們自己的私人數據。

Based on a proxy architecture, Zscaler Zero Trust Exchange is like a private switchboard for all communication for users, workloads and devices that captures all communication logs of whopping 300 billion logs per day. These are not DNS logs that have little information beyond the domain. These are not firewall logs that cannot often see SSL traffic. These are complete logs that have structured and unstructured data, including the full URL providing trillions of signals per day. Zscaler has AI experts and data scientists and the most valuable anonymized private data to customize and effectively trained LLM models for the security domain.

Zscaler Zero Trust Exchange 基於代理架構，就像一個私人交換機，用於用戶、工作負載和設備的所有通信，每天捕獲高達 3000 億條日誌的所有通信日誌。這些不是域外信息很少的 DNS 日誌。這些不是不能經常看到 SSL 流量的防火牆日誌。這些是具有結構化和非結構化數據的完整日誌，包括每天提供數万億個信號的完整 URL。 Zscaler 擁有 AI 專家和數據科學家以及最有價值的匿名私有數據，可以為安全領域定制和有效訓練的 LLM 模型。

Imagine a world where our customers will know that they're about to be breached before they are breached so they can proactively prevent the attack. Using AI, I believe Zscaler has the opportunity to predict most of today's ransomware and other sophisticated attacks on our customers. We plan to launch a number of innovations, including many for AI/ML at Zenith Live, our Annual Cloud Summit in mid-June in Las Vegas. I invite you to join us.

想像這樣一個世界，在這個世界中，我們的客戶會在被破壞之前就知道他們即將被破壞，這樣他們就可以主動阻止攻擊。使用人工智能，我相信 Zscaler 有機會預測當今大多數勒索軟件和其他針對我們客戶的複雜攻擊。我們計劃在 6 月中旬於拉斯維加斯舉行的年度雲峰會 Zenith Live 上推出多項創新，包括許多針對 AI/ML 的創新。我邀請你加入我們。

In closing, we believe that we are still in the early stages of a significant market opportunity to disrupt 30 years of traditional network security and capture a large share of our $72 billion addressable market. Our Zero Trust Exchange is built on a unique architecture that securely connect users, devices and applications using business policies regardless of their location. We believe our 10-plus-year track record of running a massive in-line cloud that has to be highly reliable and available, makes Zscaler the go-to platform for vendor consolidation, cost savings, increased user productivity and better cyber protection. We remain focused on creating shareholder value by driving customer-centric innovation, new business growth and increased profitability.

最後，我們認為我們仍處於顛覆 30 年傳統網絡安全並佔領我們價值 720 億美元的潛在市場的很大份額的重要市場機會的早期階段。我們的零信任交換建立在一個獨特的架構之上，無論用戶、設備和應用程序位於何處，都可以使用業務策略安全地連接它們。我們相信，我們在運行必須高度可靠和可用的大規模內聯雲方面擁有 10 多年的業績記錄，使 Zscaler 成為供應商整合、成本節約、提高用戶生產力和更好的網絡保護的首選平台。我們仍然專注於通過推動以客戶為中心的創新、新業務增長和提高盈利能力來創造股東價值。

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

現在我想把電話轉給雷莫，了解我們的財務業績。

Thank you, Jay. Revenue in Q3 was $419 million, up 46% year-over-year and up 8% sequentially. ZPA product revenue was approximately 20% of total revenue, growing 66% year-over-year.

謝謝你，傑伊。第三季度收入為 4.19 億美元，同比增長 46%，環比增長 8%。 ZPA 產品收入約佔總收入的 20%，同比增長 66%。

From a geographic perspective, Americas represented 54% of revenue, EMEA was 31% and APJ was 15%. Our total calculated billings in Q3 grew 40% year-over-year to $482 million until we get more certainty around the macro environment, we believe looking at total billings on a sequential basis can be a relevant measure of our billings performance in the near term.

從地理角度來看，美洲佔收入的 54%，EMEA 佔 31%，APJ 佔 15%。我們在第三季度計算的總賬單同比增長 40% 至 4.82 億美元，直到我們對宏觀環境有了更多的確定性，我們相信按順序查看總賬單可以是衡量我們近期賬單表現的相關指標.

On a sequential basis, billings declined 2% quarter-over-quarter which is better than our normal seasonality. Our calculated current billings grew 44% year-over-year. Our remaining performance obligations, or RPO, grew 36% from a year ago to $3.023 billion. The current RPO is approximately 50% of the total RPO.

按順序計算，賬單環比下降 2%，好於我們的正常季節性。我們計算出的當前賬單同比增長 44%。我們的剩餘履約義務 (RPO) 比一年前增長 36%，達到 30.23 億美元。當前的 RPO 大約佔總 RPO 的 50%。

Our dollar-based net retention rate was once again above 125%. While good for our business, our increased success selling bigger bundles, selling multiple pillars from the start and faster upsells within a year, can reduce our dollar-based net retention rate in the future. This is not a metric we try to optimize quarter-to-quarter, which could lead to variability on a quarterly basis.

我們以美元為基礎的淨保留率再次超過 125%。雖然對我們的業務有利，但我們在銷售更大的捆綁包、從一開始就銷售多個支柱以及在一年內更快地追加銷售方面取得的更大成功，可以降低我們未來以美元為基礎的淨保留率。這不是我們嘗試按季度優化的指標，這可能會導致季度變化。

At the end of Q3, we had 400 customers with greater than $1 million in ARR, up 39% from a year ago. The continued strength of this metric speaks to the strategic role we play in our customers' digital transformation initiatives. We also entered the quarter with 2,432 customers with greater than $100,000 in ARR. Turning to the rest of our Q3 financial performance. Total gross margin of 80.2% compares to 80.4% in the prior quarter and 80.6% in the year ago quarter. Higher public cloud usage for emerging products drove the year-over-year change in gross margins.

在第三季度末，我們有 400 名客戶的 ARR 超過 100 萬美元，比一年前增長了 39%。該指標的持續優勢說明了我們在客戶的數字化轉型計劃中發揮的戰略作用。進入本季度，我們還有 2,432 名客戶的 ARR 超過 100,000 美元。轉向我們第三季度的其他財務業績。總毛利率為 80.2%，上一季度為 80.4%，去年同期為 80.6%。新興產品更高的公共雲使用率推動了毛利率的同比變化。

Our total operating expenses increased 3% sequentially and 33% year-over-year to $272 million, primarily due to higher compensation expenses. Operating margin of 15.3% increased approximately 600 basis points year-over-year. Following our optimization efforts in Q2, we're seeing higher efficiency and supporting roles across the departments. Our free cash flow margin was 18%.

我們的總運營費用環比增長 3%，同比增長 33% 至 2.72 億美元，這主要是由於薪酬支出增加。營業利潤率為 15.3%，同比增長約 600 個基點。在我們第二季度的優化工作之後，我們看到了更高的效率和跨部門的支持角色。我們的自由現金流利潤率為 18%。

We continue to expect our data center CapEx to be around the high single-digit percentage of revenue for the full year. We ended the quarter with over $1.97 billion in cash, cash equivalents and short-term investments. Next, let me share some observations about the macro environment and our framework for guidance.

我們繼續期望我們的數據中心資本支出在全年收入中佔高個位數百分比。本季度結束時，我們擁有超過 19.7 億美元的現金、現金等價物和短期投資。接下來，讓我分享一些關於宏觀環境的觀察和我們的指導框架。

From our perspective, the global macro environment remains uncertain and customers continue to scrutinize large deals. We're seeing deals getting larger as customers are trying to consolidate more and accelerate their security transformation around our Zero Trust Exchange. Customers are expanding their commitments with us, from a targeted use case to a much broader platform centric approach. While good for our business, larger deals take longer to close as customers introduce more checks and reviews. In addition, in select instances, we enabled new strategic customers to ramp into larger subscription commitments.

在我們看來，全球宏觀環境仍不明朗，客戶繼續審視大宗交易。我們看到交易越來越大，因為客戶正試圖圍繞我們的零信任交換整合更多並加速他們的安全轉型。客戶正在擴大他們對我們的承諾，從有針對性的用例到更廣泛的以平台為中心的方法。雖然對我們的業務有利，但隨著客戶引入更多檢查和評論，更大的交易需要更長的時間才能完成。此外，在特定情況下，我們使新的戰略客戶能夠做出更大的訂閱承諾。

Typically, these ramp deals reduced our first year billings but will grow into a higher annual run rate level in the second year. We are entering Q4 with a record pipeline and our customer engagement remains strong. However, predicting close rates in any 90-day period has become more challenging in this environment. Our guidance assumes that new business will take longer to close over the remainder of the fiscal year in view of the macro. As a result, we're assuming a slightly lower close rate in Q4 compared to Q3. We will continue to balance growth and profitability. In our outlook for Q4, we intend to deliver operating margin expansion of more than 400 basis points year-over-year.

通常，這些坡道交易會減少我們第一年的賬單，但會在第二年增長到更高的年運行率水平。我們正以創紀錄的渠道進入第四季度，我們的客戶參與度依然強勁。然而，在這種環境下，預測任何 90 天內的收盤價變得更具挑戰性。我們的指引假設，鑑於宏觀經濟，新業務在本財年剩餘時間內需要更長的時間才能完成。因此，我們假設第四季度的收盤價比第三季度略低。我們將繼續平衡增長和盈利能力。在我們對第四季度的展望中，我們打算實現營業利潤率同比增長超過 400 個基點。

With that in mind, let me provide our guidance for Q4 and fiscal '23. As a reminder, these numbers are all non-GAAP. For the fourth quarter of fiscal 2023, we expect revenue in the range of $429 million to $431 million, reflecting a year-over-year growth of 35% to 36%. Gross margins of approximately 80%. I would like to remind investors that a number of our emerging products, including ZDX and Zscaler for workloads will initially have lower gross margins than our core products.

考慮到這一點，讓我為第四季度和 23 財年提供指導。提醒一下，這些數字都是非公認會計原則。對於 2023 財年第四季度，我們預計收入在 4.29 億美元至 4.31 億美元之間，同比增長 35% 至 36%。毛利率約為80%。我想提醒投資者，我們的一些新興產品，包括用於工作負載的 ZDX 和 Zscaler，最初的毛利率將低於我們的核心產品。

We are currently managing the emerging products for time to market and growth, not optimizing them for gross margins. In addition, we will continue to invest in our cloud infrastructure as we scale with the growing demand. Operating profit in the range of $69 million to $70 million, net other income of $13 million, income taxes of $6 million; earnings per share of approximately $0.49, assuming 157 million fully diluted shares. Please note that starting the fiscal 2023, we adopted the new accounting standard, which requires the use of the if-converted method for calculating EPS. To account for our convertible notes, you will need to add back $360,000 in quarterly interest expense.

我們目前正在管理新興產品的上市時間和增長，而不是優化它們的毛利率。此外，隨著需求的增長，我們將繼續投資於我們的雲基礎設施。營業利潤在 6900 萬至 7000 萬美元之間，其他淨收入為 1300 萬美元，所得稅為 600 萬美元；假設 1.57 億股完全稀釋後，每股收益約為 0.49 美元。請注意，從 2023 財年開始，我們採用了新的會計準則，這要求使用 if-converted 方法來計算 EPS。要計算我們的可轉換票據，您需要加回 360,000 美元的季度利息費用。

For the full year fiscal 2023, we expect revenue in the range of $1.591 billion to $1.593 billion or year-over-year growth of approximately 46%, calculated billings in the range of $1.974 billion to $1.978 billion or year-over-year growth of 33% to 34%. Operating profit in the range of $224 million to $225 million. Our guidance reflects approximately 400 basis points of operating margin improvement compared to last year. Income taxes of $21 million. Earnings per share in the range of $1.63 to $1.64, assuming approximately 156 million fully diluted shares.

對於 2023 財年全年，我們預計收入在 15.91 億美元至 15.93 億美元之間或同比增長約 46%，計算出的賬單在 19.74 億美元至 19.78 億美元之間或同比增長33% 到 34%。營業利潤在 2.24 億美元至 2.25 億美元之間。我們的指引反映了與去年相比營業利潤率提高了約 400 個基點。所得稅 2100 萬美元。每股收益在 1.63 美元至 1.64 美元之間，假設約有 1.56 億股完全稀釋後的股票。

As noted earlier, to account for our convertible notes in EPS, you will need to add back $1.4 million in annual interest expense. We remain confident in our ability to capture our large market opportunity while increasing profitability. We will balance growth and profitability based on how our business is growing. The recurring nature of our business model gives us good visibility on top line revenue and allows us to adapt quickly to changes in market conditions to deliver on our operating profit and margin goals with a large market opportunity and customers increasingly adopting the broader platform, we'll continue to make disciplined investments to position us for long-term growth. Operator, you may now open the call for questions.

如前所述，要將我們的可轉換票據計入每股收益，您需要加回 140 萬美元的年度利息支出。我們對在提高盈利能力的同時抓住巨大市場機會的能力充滿信心。我們將根據我們業務的增長情況來平衡增長和盈利能力。我們業務模式的經常性使我們能夠很好地了解收入，並使我們能夠快速適應市場條件的變化，以實現我們的營業利潤和利潤率目標，同時擁有巨大的市場機會和越來越多的客戶採用更廣泛的平台，我們'我們將繼續進行有紀律的投資，為我們的長期增長做好準備。接線員，您現在可以打開電話提問。

(Operator Instructions)

（操作員說明）

Our first question comes from the line of Brad Zelnick from Deutsche Bank.

我們的第一個問題來自德意志銀行的 Brad Zelnick。

Congrats on a strong Q3, especially in light of all the craziness going on in this world. Jay, I wanted to ask you about the U.S. federal opportunity really seems like you've got a number of good things happening there. You're now in 12 of 15 cabinet-level agencies. Can you double-click on the opportunity and pipeline ahead? And maybe talk just more about your strategy in public sector more generally, not just Fed but SLED and maybe international government as well.

祝賀第三季度表現強勁，尤其是考慮到這個世界上發生的所有瘋狂事件。傑伊，我想問你關於美國聯邦機會的問題，看起來你在那裡發生了很多好事。你現在在 15 個內閣級機構中的 12 個。你能雙擊前面的機會和管道嗎？也許更廣泛地談談你在公共部門的戰略，不僅僅是美聯儲，還有 SLED，也許還有國際政府。

Thank you, Brad. As we have been saying for the last several years, we made early investments in federal certification. In fact, ramp got some of the highest level of certifications. In fact, we use the same certification to get what's known as StateRAMP certification that states require. So we have very strong presence in a number of States had stayed wide level. We've done well there. On the federal front, as we said, we got early lands and got 12 of 15 agencies, but now they beginning to do full rollout, and that's what we are beginning to see. And it's being also helped by White House guidelines, zero trust implementation. And of course, certifications are helping. We created a public sector vertical some time ago that covers U.S. federal as well as set part of it. So very happy to see the performance of both. We have a strong pipeline for federal sector -- sorry, for public sector for Q4.

謝謝你，布拉德。正如我們過去幾年一直在說的那樣，我們對聯邦認證進行了早期投資。事實上，ramp 獲得了一些最高級別的認證。事實上，我們使用相同的認證來獲得各州要求的所謂 StateRAMP 認證。因此，我們在許多州都有非常強大的影響力，並保持廣泛的水平。我們在那裡做得很好。在聯邦方面，正如我們所說，我們獲得了早期土地並獲得了 15 個機構中的 12 個，但現在他們開始全面推出，這就是我們開始看到的。它也得到了白宮指導方針、零信任實施的幫助。當然，認證也有幫助。我們前段時間創建了一個垂直公共部門，涵蓋美國聯邦及其一部分。所以很高興看到兩人的表現。我們為聯邦部門提供了強大的渠道——抱歉，對於第四季度的公共部門。

And we feel good about it. It was natural for us to expand the own U.S. And what we've done is looked at the West friendly nations or NATO-friendly nations, who depend upon FedRAMP certifications for protecting their federal governments. And we have a pretty good degree of engagement with those countries, and we expect to share more success with you in next year and beyond.

我們對此感覺很好。對我們來說，擴大自己的美國是很自然的。我們所做的是著眼於西方友好國家或北約友好國家，他們依靠 FedRAMP 認證來保護他們的聯邦政府。我們與這些國家有相當程度的接觸，我們希望在明年及以後與你們分享更多的成功。

And our next question comes from the line of Matt Hedberg from RBC.

我們的下一個問題來自 RBC 的 Matt Hedberg。

Congrats on the strong results. Jay, for you, you spent some time talking about generative AI and the ability to monetize it with large data sets. I'm just curious, how do you think about a couple of years from now? Are we going to be able to see that generative AI was actually a tailwind to growth? And perhaps could there be additional pricing, perhaps consumption element that could support LLM expanded usage in the future?

祝賀你取得了優異的成績。傑伊，對你來說，你花了一些時間談論生成人工智能以及利用大數據集將其貨幣化的能力。我只是好奇，你如何看待幾年後的情況？我們是否能夠看到生成式人工智能實際上是增長的順風？也許可以有額外的定價，也許可以支持 LLM 在未來擴展使用的消費元素？

Yes, Matt, all of the above. First of all, AI as being kind of used in some of the current products to do better threat detection, better data protection and the like. That's number one. Number two, as AI/ML gets backed up. There will be bigger cyber risks.

是的，馬特，以上都是。首先，人工智能在當前的一些產品中被用於更好地檢測威脅、更好地保護數據等。這是第一。第二，因為 AI/ML 得到了備份。將會有更大的網絡風險。

It's a race with bad guy. They'll be able to do some of the more sophisticated attacks along more easily than they can do today. That means companies like Zscaler will need to step up to provide protection against such trends. And these are protection requires to do good stuff with AI/ML, you need 3 things. Good data scientists, you need large language models and you need high-quality large volumes of data. While many companies can hire data scientists and large language models are becoming open source and will probably be available more easily.

這是一場與壞人的比賽。他們將能夠比現在更輕鬆地進行一些更複雜的攻擊。這意味著像 Zscaler 這樣的公司將需要加強防範此類趨勢。這些是用 AI/ML 做好事所需要的保護措施，你需要三樣東西。好的數據科學家，你需要大語言模型，你需要高質量的大數據量。雖然許多公司可以聘請數據科學家，但大型語言模型正在變得開源，並且可能會更容易獲得。

The data will become the new IP, the new barrier to entry. Zscaler with 300 billion logs per day and trillions of signals, we have probably the most precious private data and then we anonymize and feed it to our large language model to give us an advantage that I believe other competitors would not have. These things while they enhance the functionality but expect us to have new SKUs, new products that give us plenty of upsell opportunity. So I expect AI/ML to expand our TAM.

數據將成為新的IP，新的進入壁壘。 Zscaler 每天有 3000 億條日誌和數万億個信號，我們可能擁有最寶貴的私人數據，然後我們將其匿名化並提供給我們的大型語言模型，從而為我們提供我相信其他競爭對手所沒有的優勢。這些東西雖然增強了功能，但希望我們擁有新的 SKU 和新產品，從而為我們提供大量的追加銷售機會。所以我希望 AI/ML 能夠擴展我們的 TAM。

And our next question comes from the line of Andrew Nowinski from Wells Fargo.

我們的下一個問題來自 Wells Fargo 的 Andrew Nowinski。

Congrats on another amazing quarter. I wanted to ask about, I guess, I mean, a number of questions here, but I guess I'll go with the 1 question on the RAMP deals. It's something you started talking about at the start of the year. And it seems, if I'm understanding this correctly that right now, what we're seeing is the headwind piece of those RAMP deals. And so you're not getting any benefit really from those.

祝賀又一個驚人的季度。我想問，我想，我的意思是，這裡有很多問題，但我想我會回答關於 RAMP 交易的第一個問題。這是你在年初開始談論的事情。看來，如果我現在理解正確的話，我們看到的是那些 RAMP 交易的不利因素。所以你並沒有真正從中得到任何好處。

And in the, I guess, when they'll start to anniversary after year 1, that's when you start to see a tailwind from the RAMP deals when those customers move to more of a full price for their subscription. If you could just walk us through sort of the timing of when you're seeing that shift from headwind to tailwind from these RAMP deals.

我猜，當他們在第 1 年後開始慶祝週年紀念日時，當這些客戶轉向更多的全價訂閱時，你就會開始看到 RAMP 交易帶來的順風。如果你能告訴我們你看到這些 RAMP 交易從逆風轉向順風的時間。

Yes. I mean it's a great question, Andy. I'll take it. You may take a look at ramp deals in Q3 of last year and Q3 of this year, percentage amounts are the same. So there's really no headwind or tailwind related to the ramp deals. Ramp deal started coming in a few years ago and now that's basically pretty much the same on a year-over-year basis. I do expect ramp deals to go forward as we go forward. If you take a look at basically duration, the billings duration, our growth rate was 44% short term, that basically was related to duration.

是的。我的意思是這是一個很好的問題，安迪。我要買它。你可以看看去年第三季度和今年第三季度的坡道交易，百分比金額是相同的。因此，確實沒有與坡道交易相關的逆風或順風。幾年前開始出現坡道交易，現在基本上與去年同期基本相同。我確實希望在我們前進的過程中進行坡道交易。如果你基本上看一下持續時間，賬單持續時間，我們的短期增長率是 44%，這基本上與持續時間有關。

The duration that we had in Q3 of last year was at the high end of our 10 to 14-month range. And this year, the duration basically was slightly above the midpoint. So ramps did not create basically the positive impact to our billing short-term billings, it was really duration.

我們在去年第三季度的持續時間處於我們 10 到 14 個月範圍的高端。而今年，持續時間基本略高於中點。因此，坡道基本上沒有對我們的短期賬單產生積極影響，這實際上是持續時間。

And our next question comes from the line of Joel Fishbein from Truist Securities.

我們的下一個問題來自 Truist Securities 的 Joel Fishbein。

And again, congrats on the margin outperformance here and expense discipline. So I guess a question for Remo. And I know you addressed it a little bit on the call, but I'd love to take a little bit step further about the methodology you consider and making sure that you're not sacrificing growth as you continue to expand margins at this pretty impressive level. It's going to be a balancing act. And I know you have some levers there that you're pulling.

再次祝賀這裡的利潤率表現出色和費用紀律。所以我猜是雷莫的問題。而且我知道你在電話中稍微解決了這個問題，但我很樂意進一步了解你考慮的方法，並確保你不會犧牲增長，因為你繼續擴大這個令人印象深刻的利潤率等級。這將是一個平衡的行為。而且我知道你在那裡有一些你正在拉動的槓桿。

But it looks like it's got to be very difficult. So I'd love to just understand that or peel the onion back on that. So.

但看起來這一定是非常困難的。所以我很想理解這一點，或者把洋蔥剝下來。所以。

Yes. From our perspective, when you take a look at the market size that we talked about at our Analyst Day a few years ago, it's a $72 billion market for our addressable market. It's much bigger than that. You take a look at (inaudible) we're in the $1.5 billion or so basically revenue. So the penetration into this market, our ability to upsell also (inaudible) that still remains. We will balance profitability and top line growth.

是的。從我們的角度來看，當你看一下幾年前我們在分析師日談到的市場規模時，我們的目標市場是 720 億美元的市場。它比那大得多。你看看（聽不清）我們基本上有 15 億美元左右的收入。因此，滲透到這個市場，我們的追加銷售能力（聽不清）仍然存在。我們將平衡盈利能力和收入增長。

Our focus is still top line growth. But if you take a look at -- as you called out, the margin expansion, 600 basis points margin expansion in Q3, 400 basis points margin expansion for the full year that's outstanding, but that's the model that we talked about. When your top line slows down, you're going to get that natural leverage. I want to make sure that our investors recognize, we feel that we are in a great position to move forward. We're going to continue to invest, and we're going to balance basically top line growth and operating profitability.

我們的重點仍然是收入增長。但如果你看一下 - 正如你所說的那樣，利潤率擴張，第三季度利潤率擴張 600 個基點，全年利潤率擴張 400 個基點，這很出色，但這就是我們談論的模型。當您的收入放緩時，您將獲得自然的影響力。我想確保我們的投資者認識到，我們認為我們處於前進的有利位置。我們將繼續投資，我們將基本上平衡頂線增長和運營盈利能力。

Having said that, to give you more clarity related to fiscal '24, current Street consensus is about 15.5% operating profitability. I think a good place for the Street to be fiscal '24, just to give you kind of a framework, is that 15.5% to 16% range. I do believe that gives us plenty of room to invest and really to continue to capture this market.

話雖如此，為了讓您更清楚地了解與 24 財年相關的信息，目前華爾街的共識是營業利潤率約為 15.5%。我認為華爾街成為 24 財政年度的一個好地方，只是給你一個框架，就是 15.5% 到 16% 的範圍。我相信這給了我們足夠的投資空間，並真正繼續佔領這個市場。

And our next question comes from Saket Kalia from Barclays.

我們的下一個問題來自巴克萊銀行的 Saket Kalia。

Jay, maybe this question is for you. First of all, the numbers speak for themselves. I wondered if you could just address the competitive backdrop a little bit. Certainly, it doesn't appear in the numbers again, but I know that there was some noise out there with competitive quadrant stuff. Wanted to see if you just had any views on that. And more importantly, whether you've seen that maybe make its way into customer conversations at all?

傑伊，也許這個問題是給你的。首先，數字不言自明。我想知道你是否可以稍微談談競爭背景。當然，它沒有再次出現在數字中，但我知道競爭象限的東西有一些噪音。想看看您是否對此有任何看法。更重要的是，您是否已經看到它可能完全進入客戶對話？

Thank you, Saket. So regarding the Magic Quadrant, I believe that customers are the real judge and I'll give you 3 points why I believe they view Zscaler as a real leader. Number one, as you said, they're voting us by spending on the Zscaler. In fact, in Gartner's Pure Insight ratings, which is a customer survey done by Gartner. Zscaler is the only MQ leader who is in #1 in 8 Gartner's categories. So they have 8 categories. We are #1 in 8 of them. That's wonderful. And also, we have expanded our vision on beyond just SSC or users.

謝謝你，薩凱特。所以關於魔力像限，我相信客戶是真正的判斷者，我會給你 3 點為什麼我相信他們將 Zscaler 視為真正的領導者。第一，正如你所說，他們通過在 Zscaler 上花錢來投票給我們。事實上，在 Gartner 的 Pure Insight 評級中，這是 Gartner 所做的一項客戶調查。 Zscaler 是唯一在 8 個 Gartner 類別中排名第一的 MQ 領導者。所以他們有8個類別。我們在其中的 8 個中排名第一。那好極了。而且，我們已經將我們的願景擴展到 SSC 或用戶之外。

We do SSC for workloads, IoT, OT, B2B and all the like. There have been a number of conversations that I had with customers. As you know, I talk to hundreds and hundreds of customers. I can tell you more than a dozen at least have asked me, hey, what is this MQ, how could this show up? I said, "I don't know. You are the judge. So is it impacting our performance? No. Is it impacting our engagement? No. I think we're focused on building, delivering, keeping our customers happy, our NPS code sits north of 80. So very happy with what you're doing and we'll keep on executing.

我們為工作負載、物聯網、OT、B2B 等進行 SSC。我與客戶進行了多次對話。如您所知，我與成百上千的客戶交談。我可以告訴你至少有十幾個人問過我，哎，這是什麼MQ，怎麼會出現這個？我說，“我不知道。你是評委。那麼它會影響我們的表現嗎？不。它會影響我們的參與度嗎？不。我認為我們專注於構建、交付、讓我們的客戶滿意，我們的 NPS代碼位於 80 以北。對您所做的非常滿意，我們將繼續執行。

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

我們的下一個問題來自 MoffetNathanson 的 Sterling Auty 系列。

Jay, you talked about the success in kind of the go-to-market function and customer success teams. I wonder if you could just highlight for us or remind us the timing of when you did your big hires where you are in the capacity of your sales force and what the hiring might look like going forward to extend the durability of the growth that you're seeing currently?

傑伊，你談到了上市職能和客戶成功團隊的成功。我想知道您是否可以向我們強調或提醒我們您在銷售人員能力範圍內進行大規模招聘的時間，以及招聘可能會是什麼樣子，以延長您增長的持久性目前正在看嗎？

Yes. Hit a broad go-to-market level. Our goal is to make sure we keep on hiring at the right pace in broad go-to-market team as well as some of the take-off teams that help us push forward some of the new products. We did moderate some of the hiring as we saw the market come down quite in the past couple of quarters. Remo, do you want to give some more color to it?

是的。達到廣泛的上市水平。我們的目標是確保我們繼續以正確的速度招聘廣泛的上市團隊以及一些幫助我們推出一些新產品的起飛團隊。我們確實減少了一些招聘，因為我們看到市場在過去幾個季度大幅下滑。雷莫，你想給它多點顏色嗎？

Yes. From a capacity perspective, we're in good shape. When we reduced our workforce at the end of Q2, 1 of the things we talked about is we're still going to prioritize basically quota-carrying heads and R&D. That's still the case. We are in a hiring moat, and we'll continue to hire.

是的。從容量的角度來看，我們處於良好狀態。當我們在第二季度末裁員時，我們談到的一件事是我們仍然會優先考慮配額負責人和研發人員。現在還是這樣。我們正處於招聘護城河中，我們將繼續招聘。

One of the things I've mentioned, Sterling, is that not lost on us is that this is a huge market opportunity. We're going to invest to continue investment in hiring and R&D and throughout the company for that matter. But really, what we did in Q2 was to better position ourselves to make the proper hires going forward, and that's what we're doing.

斯特林，我提到的一件事是，我們沒有忘記這是一個巨大的市場機會。我們將投資繼續投資於招聘和研發以及整個公司。但實際上，我們在第二季度所做的是更好地定位自己，讓合適的員工繼續前進，這就是我們正在做的事情。

And our next question comes from the line of John DiFucci from Guggenheim Securities.

我們的下一個問題來自古根海姆證券公司的 John DiFucci。

So this quarter was -- as people have said and you said, you preannounced it, it was really a strong quarter. And looking at the numbers, it looks like real clean results. It's nice to see that. But it's also odd to see that in this environment. And you guys have talked about things are -- the difficult environment has continued. So I'm just trying to figure out like what changed for you guys this quarter relative to the past 2 quarters.

所以這個季度是 - 正如人們所說的那樣，你說過，你預先宣布了它，這真的是一個強勁的季度。看看這些數字，它看起來像是真正乾淨的結果。很高興看到這一點。但在這種環境下看到這一點也很奇怪。你們談到的事情是——困難的環境一直在繼續。所以我只是想弄清楚本季度相對於過去兩個季度你們發生了什麼變化。

Not that they were -- they were -- you struggled more in the last 2 quarters, at least from our measures of new ACV signings and this quarter was really strong. I mean was it -- I mean, you did talk about larger deals. Were there any like sort of anomalous large deals out there? Or is it just really just you guys now buckled up and are executing better. What happened? What changed?

並不是說他們 - 他們 - 你在過去的兩個季度裡掙扎得更多，至少從我們對新 ACV 簽約的衡量來看是這樣，而且這個季度真的很強勁。我的意思是——我的意思是，你確實談到了更大的交易。那裡有類似的異常大交易嗎？或者真的只是你們現在係好安全帶並且執行得更好。發生了什麼？什麼改變了？

So this quarter was strong across all areas. Our Americas and APJ were particularly strong on a year-over-year basis. And last quarter, we set some of the large new logos in Americas were taking longer to close. We also said those deals were not lost but just delayed, and we did close a good number of those deals. From a vertical perspective, it was very well diversified, strong verticals for federal, financial services, health care and transportation.

所以這個季度在所有領域都很強勁。與去年同期相比，我們的美洲和 APJ 特別強勁。上個季度，我們將美洲的一些大型新標識設置為需要更長時間才能關閉。我們還表示，這些交易並沒有丟失，只是被推遲了，我們確實完成了很多這樣的交易。從垂直的角度來看，它在聯邦、金融服務、醫療保健和交通方面非常多元化、強大。

Our large and major segment did well. We highlighted a number of 100,000-plus user deals. So the fundamentals of business are very strong. Customers are not going to delay cyber as a priority. It is a priority. Cost saving is a big priority as well, and we do well in both areas, cyber as well as cost saving.

我們的大型和主要部門表現良好。我們重點介紹了 100,000 多筆用戶交易。所以商業的基本面非常強大。客戶不會將網絡延遲作為優先事項。這是一個優先事項。節約成本也是一個重中之重，我們在網絡和成本節約這兩個領域都做得很好。

And tell you when it comes to cyber companies, we're probably the only company that delivers significant ROI because we are actually eliminating a bunch of point products. So it is fitting well. It's a tougher market. There's more scrutiny, but our foundation is strong and our pipeline is strong.Remo?

並告訴你，當談到網絡公司時，我們可能是唯一一家提供顯著投資回報率的公司，因為我們實際上正在消除一堆單點產品。所以很合身。這是一個更艱難的市場。有更多的審查，但我們的基礎很牢固，我們的管道也很強大。雷莫？

Yes, I'll go with Jay mentioned pipeline, maturity pipeline, execution, strong across the board. Americas was strong, APJ was strong, federal was strong. Again, I think the key thing was really good execution in our sales organization on a worldwide basis. Related to large deals, mega deals. We talked about mega deals when we first went public at the deals of greater than $10 million. We bought that now megadeals deals of greater than $20 million. There were no deals of greater than -- no deals greater than $20 million. We did have 1 deal of $10 million in the quarter.

是的，我會和 Jay 提到的管道、成熟管道、執行力一起去，全面強大。美洲強大，APJ 強大，聯邦強大。同樣，我認為關鍵是我們的銷售組織在全球範圍內的執行力非常好。與大型交易、大型交易相關。當我們第一次以超過 1000 萬美元的交易上市時，我們談到了大型交易。我們購買了超過 2000 萬美元的大型交易。沒有超過——沒有超過 2000 萬美元的交易。我們在本季度確實有 1 筆 1000 萬美元的交易。

And our next question comes from the line of Roger Boyd from UBS.

我們的下一個問題來自瑞銀的 Roger Boyd。

Great. Again, congrats on the very strong results. As we think about fiscal 4Q and fiscal '24, it sounds like you're broadly being pretty conservative around close rates. But Jay, you talked a little bit about some of the efforts you've made internally to get in front of budget scrutiny with some of these CFO ready business cases. I guess I'm wondering, relative to a few quarters ago, are you feeling incrementally better about controlling your own destiny, your ability to influence sales cycles? And just curious how material these internal efforts have been in practice.

偉大的。再次祝賀非常好的結果。當我們考慮第四財季和 24 財年時，聽起來您在收盤價方面普遍相當保守。但是傑伊，你談到了一些你在內部所做的一些努力，以便通過一些 CFO 準備好的業務案例來應對預算審查。我想我想知道，相對於幾個季度前，您是否對控制自己的命運、影響銷售週期的能力感覺越來越好？只是好奇這些內部努力在實踐中有多麼重要。

Yes. So this tougher market has made us a lot more sophisticated than we were before. For example, for new logos, what have we done.

是的。因此，這個更加艱難的市場使我們比以前更加成熟。例如，對於新徽標，我們做了什麼。

We are now doing early engagement. Our sales team is getting good and engaging at C level early on in the cycle. And number two, we had to refine our business value case, CFO-ready case studies a lot more. No longer annual numbers are good enough. Now they want to go in the quarterly level to see when the ROI can be done. Our engagement cloud marketplaces have gotten much better because we are leveraging annual commit that's already -- annual spend that's already committed to the hyperscalers. Now we had to do ramp deals more frequently, which is kind of to meet their timing of the budgets and the like.

我們現在正在進行早期參與。我們的銷售團隊在周期的早期就在 C 級變得越來越好並參與其中。第二，我們必須進一步完善我們的商業價值案例，CFO 就緒案例研究。年度數字不再足夠好。現在他們想進入季度層面，看看什麼時候可以做到ROI。我們的參與雲市場已經變得更好，因為我們正在利用已經承諾的年度承諾——已經承諾給超大規模用戶的年度支出。現在我們不得不更頻繁地進行坡道交易，這是為了滿足他們的預算時間等。

For upsell, we had done a number of things in the past few quarters, we are ensuring that customers are realizing the value more and more, our customer success team, our TAMs are doing a great job. And then the product specialty team we put in place for emerging products that's working well. It's working very closely with our field sales team. So having a great, highly differentiated platform, which we've built on Zero Trust as a key platform. We are not a firewall company that's trying to pivot to Zero Trust. They're not a CASB company that's pivoted. This is our core business, our North Star from day 1 and our sales execution is good, and we'll keep on improving it.

對於追加銷售，我們在過去幾個季度做了很多事情，我們確保客戶越來越多地意識到價值，我們的客戶成功團隊，我們的 TAM 做得很好。然後我們為運作良好的新興產品設立了產品專業團隊。它與我們的現場銷售團隊密切合作。因此，擁有一個偉大的、高度差異化的平台，我們在零信任基礎上構建了這個平台作為關鍵平台。我們不是試圖轉向零信任的防火牆公司。他們不是一家以 CASB 為中心的公司。這是我們的核心業務，從第一天起就是我們的北極星，我們的銷售執行力很好，我們會繼續改進它。

And our next question comes from the line of Mike Walkley from Canaccord Genuity.

我們的下一個問題來自 Canaccord Genuity 的 Mike Walkley。

Great. Thanks. Remo, you talked a little bit about future lumpiness in dollar-based net retention, I guess, given some large deals that you'll grandfather in. But could you just share with us kind of that mix you expect to maybe fiscal '24 of new logo sales versus upsell that's still around a 60-40 ratio given that 6x upsell opportunity?

偉大的。謝謝。雷莫，我想，考慮到您將參與的一些大宗交易，您談到了未來基於美元的淨保留率的波動性。但是您能否與我們分享一下您預計可能在 24 財年的那種組合考慮到 6 倍的追加銷售機會，新徽標銷售與追加銷售的比率仍然在 60-40 左右？

Yes. I mean net retention rate is something we don't guide to or look at. Our mix this year, we're expecting 40, 60 new versus upsell. We look at really -- as we look at new and upsell, that's the driver in total. And what we've talked about before is we believe the best measure for Zscaler is really billings at 125% is outstanding.

是的。我的意思是淨保留率是我們不指導或看的東西。我們今年的組合，我們預計有 40、60 個新產品與追加銷售產品。我們真的看 - 當我們看新的和追加銷售時，這就是總的驅動因素。我們之前談到的是，我們認為 Zscaler 的最佳衡量標準是 125% 的賬單確實非常出色。

And our next question comes from the line of Joshua Tilton from Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Joshua Tilton。

This is Patrick on for Josh. First off, just wanted to congratulate you all on the great results in what's been a tough environment. Clearly, the mix checks in the quarter were not exactly correct. So I was wondering what do you think is sort of driving that disconnect between the strong numbers put up in the quarter and then the general feedback from the channel we've heard recently.

這是喬什的帕特里克。首先，我只想祝賀大家在艱難的環境中取得的優異成績。顯然，本季度的混合檢查並不完全正確。所以我想知道你認為是什麼導致了本季度的強勁數據與我們最近聽到的渠道的一般反饋之間的脫節。

So, I think this is not new. We have said many, many times that we are not the typical security company selling boxes through people VARs. We are a transformation play. It's a high-touch sale. And working closely with customers and sometimes large SIs, that's how we do business. These channel checks will always be misguided, okay? I mean that's how I personally look at it.

所以，我認為這並不新鮮。我們已經說過很多很多次，我們不是典型的通過個人 VAR 銷售盒子的安全公司。我們是一部轉型劇。這是一個高接觸銷售。與客戶密切合作，有時與大型 SI 密切合作，這就是我們開展業務的方式。這些渠道檢查總是會被誤導，好嗎？我的意思是，這就是我個人的看法。

When you are driving transformational C-level and whatnot, it is different. So I would say, yes, let's be more defined in channel checks. Look, our business is strong. Our customer engagements are very strong. Our differentiation is very strong. Yes, our competitors are trying to create (inaudible). They are trying to mislead the market. It's our job to make sure we educate them, we communicate them. But the best results we do is when customers deploy our technology then they say, Jay, we're able to turn on 20,000 users in 7 days and results are amazing.

當你推動變革性的 C 級或諸如此類的東西時，情況就不同了。所以我會說，是的，讓我們在渠道檢查中更加明確。看，我們的業務很強大。我們的客戶參與度非常高。我們的差異化非常強。是的，我們的競爭對手正在努力創造（聽不清）。他們試圖誤導市場。我們的工作是確保我們教育他們，我們與他們溝通。但我們所做的最好的結果是，當客戶部署我們的技術時，他們會說，Jay，我們能夠在 7 天內啟用 20,000 名用戶，結果非常驚人。

And then they say, if you really contrast, I've only seen a couple of cases to say, yes, we've got a competitive solution. This thing is still struggling out there. We are trying to extend our network from our office to the cloud, it's old-school architecture. So I do believe that in spite of all the noise and (inaudible) that comes from out there our engagement, our differentiation, the way we are executing in the market, the way we are innovating and now the new area of AI/ML where we have a unique advantage of better data, better private logs with structured and unstructured data.

然後他們說，如果你真的比較，我只看到幾個案例說，是的，我們有一個有競爭力的解決方案。這東西還在外面掙扎。我們正在嘗試將我們的網絡從我們的辦公室擴展到雲端，這是老式的架構。所以我確實相信，儘管我們的參與、我們的差異化、我們在市場上的執行方式、我們創新的方式以及現在 AI/ML 的新領域來自那裡，但我確實相信，儘管有來自那裡的所有噪音和（聽不清）我們擁有更好的數據、更好的私人日誌以及結構化和非結構化數據的獨特優勢。

We will do better than any of the vendors out there, maybe a comment on unstructured data. Every vendor has log. Logs are simply structured data, where are you coming from? Where are you going? The most intelligent information that generative AI can use comes from a URL, which could be hundreds of bytes long. And that's where you figure out what all is going on. Most of the firewalls don't have any URL, they generally (inaudible) domain level stuff. As we do some of the stuff, I believe, will further increase our lead and really that will give us actual TAM and further growth that we are striving for.

我們會比任何供應商做得更好，也許是對非結構化數據的評論。每個供應商都有日誌。日誌只是簡單的結構化數據，你從哪裡來？你要去哪裡？生成式 AI 可以使用的最智能信息來自 URL，它可能有數百個字節長。這就是你弄清楚發生了什麼的地方。大多數防火牆沒有任何 URL，它們通常（聽不清）域級別的東西。當我們做一些事情時，我相信，將進一步增加我們的領先優勢，這真的會給我們帶來實際的 TAM 和我們正在努力爭取的進一步增長。

And our next question comes from the line of Adam Borg from Stifel.

我們的下一個問題來自 Stifel 的 Adam Borg。

Awesome. Maybe for Jay, you talked in the script about increasing traction with Zscaler for users. And I'd love to get a sense when a new customer comes in, any way to think about the mix of new customers that are taking Zscaler for users from the start? And how should I think about the overall mix of Zscaler users within the installed base?

驚人的。也許對於傑伊來說，你在劇本中談到了增加 Zscaler 對用戶的吸引力。當新客戶進來時，我很想了解一下，有什麼方法可以考慮從一開始就為用戶使用 Zscaler 的新客戶組合？我應該如何考慮已安裝基礎中 Zscaler 用戶的整體組合？

Yes. So thank you. Zscaler for users, this bundle was created about a little over a year ago, and we have seen very, very good growth of this combined bundle. And we have some customers who will go with just the ZIA, ZPA. We actually have some customers interesting, a large customer who actually started with ZPA and ZDX at the same plan. But overall bigger bundle to eliminate a bunch of point products is the trend we are seeing. And as I had said even 2 or 3 years ago, it's a matter of time -- when every customer buys ZIA, ZPA, ZDX for every employee and that trend is happening more and more. And as we said before, if we do so, our current customers, our spend -- their spend with us could go through 5 or 6x kind of stuff. And I think we are tracking well.

是的。所以謝謝。 Zscaler 對於用戶來說，這個捆綁包大約在一年多前創建，我們已經看到這個組合捆綁包的增長非常非常好。我們有一些客戶只選擇 ZIA、ZPA。我們實際上有一些客戶很有趣，一個大客戶實際上以相同的計劃開始使用 ZPA 和 ZDX。但我們看到的趨勢是整體更大的捆綁，以消除一堆單點產品。正如我在 2 或 3 年前所說的那樣，這只是時間問題——當每個客戶都為每個員工購買 ZIA、ZPA、ZDX 時，這種趨勢正在越來越多地發生。正如我們之前所說，如果我們這樣做，我們當前的客戶，我們的支出——他們與我們的支出可能會增加 5 或 6 倍。我認為我們跟踪得很好。

And we're tracking well for 2 reasons. One, customers are seeing value they are realizing value from it; number two, we're actually able to remove a bunch of point products and show ROI, and that actually gives them more incentive to buy more from us.

我們跟踪得很好有兩個原因。第一，客戶看到了他們正在從中實現價值的價值；第二，我們實際上能夠刪除一堆點產品並顯示投資回報率，這實際上讓他們更有動力從我們這裡購買更多產品。

Yes. And customers that have bought ZIA, ZPA and ZDX, it's more than 25% of our total customers. So it's definitely getting traction.

是的。而購買了ZIA、ZPA、ZDX的客戶，占我們總客戶的25%以上。所以它肯定會越來越受歡迎。

And our next question comes from the line of Shrenik Kothari from Baird.

我們的下一個問題來自 Baird 的 Shrenik Kothari。

And congrats on the strong execution despite the macro. So for Jay and Reno, feel free to chime in. You mentioned on a sequential basis, you saw better-than-normal seasonality. And then, of course, you guys touched upon your factors, you're starting to close larger deals with federal. You, of course, are seeing benefit from kind of strategic customers ramping into larger commitments. And then, of course, the execution, high-touch engagement is helping to get to finish line international. Can you help us unpack all these drivers in terms of kind of maybe relative impacts on this better than normal seasonality? And then I have a quick follow-up.

並祝賀儘管有宏，但執行力很強。因此，對於 Jay 和 Reno，請隨意插話。你提到了順序的基礎上，你看到了比正常情況更好的季節性。然後，當然，你們談到了你們的因素，你們開始與聯邦政府達成更大的交易。當然，您會從某種戰略客戶中受益，他們會做出更大的承諾。然後，當然，執行力、高接觸度參與有助於達到國際終點線。你能幫助我們從對這種比正常季節性更好的相對影響的角度來分析所有這些驅動因素嗎？然後我有一個快速跟進。

I think everything you mentioned is a 100% correct. I'm a traditionalist, I'll go back to what I feel. I think it's better execution on our sales organization.

我認為你提到的一切都是 100% 正確的。我是一個傳統主義者，我會回到我的感受。我認為這對我們的銷售組織來說是更好的執行。

Yes. I mean, all the factors aligned, but we are still in the tougher environment, which is not more scrutiny. And it's doing better execution. But if you've got good product offerings that are highly differentiated, and there's a need for it because customers do want to save money and better cybersecurity. That's really what's positioned us well.

是的。我的意思是，所有因素都是一致的，但我們仍然處於更艱難的環境中，這不是更多的審查。而且它的執行力更好。但是，如果您擁有高度差異化的優質產品，並且需要它，因為客戶確實希望省錢和更好的網絡安全。這確實是我們的定位。

Yes. I mean just to follow on. Customers recognize the ROI. It is significant. The ability to simplify your network is significant also. Architecture related to in-line cloud multi-tenant architecture, not only for users, but workloads and IoT, OT and B2B, that's a vision basically Zscaler. The pioneer with all this is Zscaler. The leader, if you take a look at our penetration into the Fortune 500, which is 40% in Global 2000, 30%.

是的。我的意思是繼續前進。客戶認可投資回報率。這很重要。簡化網絡的能力也很重要。與在線雲多租戶架構相關的架構，不僅針對用戶，還針對工作負載和物聯網、OT 和 B2B，這基本上是 Zscaler 的一個願景。這一切的先驅是 Zscaler。領導者，如果你看一下我們對財富 500 強的滲透率，在全球 2000 強中是 40%，30%。

I mean, CIOs, CISOs, they talk to each other. We do -- I mean, customer advisory board meetings, Jay, we would do 1 like an average like 1 a week, I believe. I mean companies typically do this once a year. We do it once a week. And so what is the strength -- it's all the things I mentioned. And your comments, it's pretty much across the board, all those things.

我的意思是，CIO、CISO，他們互相交談。我們做 - 我的意思是，客戶諮詢委員會會議，Jay，我相信我們平均每週會做 1 次。我的意思是公司通常每年這樣做一次。我們每週做一次。那麼力量是什麼——就是我提到的所有事情。你的評論，幾乎是全面的，所有這些。

One point I'll make, which hasn't come at us so far in this discussion. What we do being the switchboard is probably the most critical mission-critical business service, and it must work. And so customers basically want to go with a proven vendor who knows how to operate and run and manage such a massive cloud. It is becoming a differentiator. When a new vendor comes and say, "Oh, I got the cloud, too."

我要指出的一點是，到目前為止，在本次討論中我們還沒有想到這一點。作為總機，我們所做的可能是最關鍵的任務關鍵型業務服務，而且它必須有效。因此，客戶基本上希望選擇一家經過驗證的供應商，他們知道如何運營、運行和管理如此龐大的雲。它正在成為一個差異化因素。當一個新的供應商來來說，“哦，我也有云。”

And then the customer say, what's your track record, what's your experience? That's helping us. One of the area that's helping us with some of the new private companies and all customers are kind of very of trying to go with someone who may be losing a lot of cash and who may not be around tomorrow. And that's helping us as well because customers are looking at vendors who will be around and who will be the leaders in safety.

然後客戶說，你的記錄是什麼，你的經驗是什麼？那是在幫助我們。幫助我們與一些新的私營公司合作的領域之一，所有客戶都非常想與可能損失大量現金且明天可能不在身邊的人一起去。這也對我們有幫助，因為客戶正在尋找將成為安全領導者的供應商。

And our next question comes from the line of Peter Levine from Evercore.

我們的下一個問題來自 Evercore 的 Peter Levine。

We've seen one of your competitors come out this quarter with a very specific campaign kind of targeting you guys or somewhat kind of reverse engineering your tech. So Jay, is there any validity behind kind of what they're building to explain to us the complexity, the lift and shift customers overnight -- and if you're even seeing any attrition on that front?

我們已經看到你們的一個競爭對手在本季度推出了針對你們的非常具體的活動，或者對你們的技術進行某種逆向工程。那麼 Jay，他們正在構建的東西是否有任何有效性來向我們解釋複雜性，一夜之間提升和轉移客戶 - 如果你甚至在這方面看到任何減員？

And then just one quick one for Remo. Thanks for the color on the fiscal '24 margins. But to the extent you can, any color or high-level discussions you can share with us now on how you're thinking about the growth outlook, and to what extent is macro playing into that thought process.

然後只是一個快速的雷莫。感謝 24 財年利潤率的顏色。但在您可以的範圍內，您現在可以與我們分享您如何看待增長前景的任何顏色或高層討論，以及宏觀在多大程度上影響了這一思維過程。

So every vendor has a core competence and they do very well in that competency. A firewall company will be a great firewall company a CASB company will be a great CASB company, and someone who does CDN and DNS should be a good CDN/DNS company. You can try to pivot, but that competency you build and create over years and years is very hard. if I came and told you in 1 year, I'm going to build the best firewall. Well, it will be hard, for me to say that because I can't make statements like that.

所以每個供應商都有核心競爭力，而且他們在這方面做得很好。做防火牆的公司就是偉大的防火牆公司，做CASB的公司就是偉大的CASB公司，做CDN和DNS的就應該是優秀的CDN/DNS公司。你可以嘗試轉向，但你多年來建立和創造的能力是非常困難的。如果我在 1 年內告訴你，我將建造最好的防火牆。好吧，這對我來說很難說，因為我不能發表那樣的聲明。

But when companies try to pivot, it takes a while, and especially if pivoting do something that's in line, multi-tenancy, figuring out all the fiber threats without slowing things down, is hard. It's an architectural change. We believe that the intellectual property, the IP needed to do so is very hard. That's number one. Number two, the amount of traffic one has to handle to really deliver the service. Your gross margins are likely to be sitting some of the 50s and 60s and not like 80% where we sit at. It's because we purpose-built the stuff.

但是當公司試圖轉向時，需要一段時間，特別是如果轉向做一些符合要求的事情，多租戶，在不減慢速度的情況下找出所有光纖威脅，是很困難的。這是一個架構上的變化。我們認為，知識產權，這樣做所需的知識產權是非常困難的。這是第一。第二，要真正提供服務必須處理的流量。您的毛利率可能處於 50 年代和 60 年代的一些水平，而不是我們所處的 80%。這是因為我們專門製造了這些東西。

So it is not unnatural for us to see the competition trying to come and say, maybe I can get into this space. I have many times described Zscaler being the in-line business, almost like an ERP application. They can there are thousands of SaaS applications out there, their point product. They can be built. How many ERP vendors do you see out there doing SaaS, very few. It's hard. Sitting in line is heart, we think that gives us a big, big barrier to entry for others to compete, and we are not sitting. We are expanding our platform at a larger pace. So do I kind of try to focus too much on some of the competitive campaigns that are kind of trying to spread my zone? I don't. We focus on innovation, we focus on our customers, and we're doing well.

因此，我們看到競爭對手試圖過來說，也許我可以進入這個領域，這並不奇怪。我多次將 Zscaler 描述為在線業務，幾乎就像一個 ERP 應用程序。他們可以有成千上萬的 SaaS 應用程序，他們的重點產品。它們是可以建造的。你看到有多少 ERP 供應商在做 SaaS，很少。這個很難（硬。排隊是心，我們認為這給了我們一個很大很大的進入障礙，讓其他人競爭，我們不坐。我們正在以更快的速度擴展我們的平台。那麼我是否有點過於關註一些試圖擴大我的區域的競爭性活動？我不。我們專注於創新，我們專注於我們的客戶，我們做得很好。

And top line growth. We'll talk about that on the next call. You know, for year-end.

以及收入增長。我們將在下一次通話中討論這個問題。你知道，年底。

And our next question -- our final question for today comes from the line of Joseph Gallo from Jefferies.

我們的下一個問題——我們今天的最後一個問題來自 Jefferies 的 Joseph Gallo。

Really appreciate the question and great job on the billings performance in a tough environment. I appreciate the commentary regarding the year-over-year mix of ramp deals in F3Q. Is F4Q the same expected year-over-year mix based on the pipe you guys are seeing today? And then just any other color or commentary on how to think about F4Q billings, which appears seasonally conservative. I know you mentioned lower close rates is there anything else timing renewals or anything else we should think about?

非常感謝在艱難的環境中提出的問題和出色的業績表現。我很欣賞有關 F3Q 年度坡道交易組合的評論。基於你們今天看到的管道，F4Q 是否與預期的同比組合相同？然後是關於如何考慮 F4Q 賬單的任何其他顏色或評論，這看起來季節性保守。我知道您提到過較低的收盤價還有其他時間續約或其他我們應該考慮的事情嗎？

Yes, ramps, I would consider the same quarter-over-quarter. But just remember, it is a tough compare. Last year, our billings growth was approximately basically, I think it was close to 60% billings growth in Q4. Also, we had a strong Q3. So basically, it's a tough compare.

是的，坡道，我會考慮相同的季度環比。但請記住，這是一個艱難的比較。去年，我們的賬單增長基本上是基本的，我認為第四季度的賬單增長接近 60%。此外，我們的第三季度表現強勁。所以基本上，這是一個艱難的比較。

This does conclude the question-and-answer session. I'd now like to hand the program back to CEO, Jay Chaudhry, for any further remarks.

這確實結束了問答環節。我現在想將該計劃交還給首席執行官 Jay Chaudhry，以徵求他的進一步評論。

Thank you for your interest in Zscaler. I hope to see you at Zenith Live in Vegas in a couple of weeks. I would also like to thank our shareholders, our customers and our partners. Talk to you next quarter. Great. Thank you.

感謝您對 Zscaler 的關注。我希望幾週後在拉斯維加斯的 Zenith Live 見到你。我還要感謝我們的股東、我們的客戶和我們的合作夥伴。下個季度再談。偉大的。謝謝。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

女士們，先生們，感謝你們參加今天的會議。這確實結束了程序。您現在可以斷開連接。再會。