Zscaler, Inc. (ZS) 2020 Q2 法說會逐字稿

Good day, and welcome to the Zscaler's Second Quarter 2020 Earnings Conference Call. Please note, today's conference is being recorded. At this time, I would like to turn the conference over to Bill Choi. Please go ahead, sir.

大家好，歡迎參加 Zscaler 2020 會計年度第二季財報電話會議。請注意，今天的會議將被錄音。此刻，我想將會議交給 Bill Choi。先生，請開始。

Good afternoon, and welcome to the Zscaler Fiscal Second Quarter 2020 Earnings Conference Call. On the call with me today are Jay Chaudhry, Chairman and CEO; and Remo Canessa, CFO. By now, everyone should have access to our earnings announcement, which can be found on our website in the Investor Relations section. In addition, a supplemental financial schedule is available for download at ir.zscaler.com. Please note, unless otherwise noted, all numbers we talk about today, other than revenue, will be on an adjusted non-GAAP basis. You will find a reconciliation of GAAP to the non-GAAP financial measures in our earnings release. For historical periods, the GAAP to the non-GAAP reconciliations can be found in the supplemental financial information referenced a moment ago.

各位下午好，歡迎參加 Zscaler 2020 會計年度第二季財報電話會議。今天與我一同出席電話會議的有董事長兼執行長 Jay Chaudhry，以及財務長 Remo Canessa。截至目前，大家應該都已取得我們的財報新聞稿，可在我們網站的投資人關係（Investor Relations）專區找到。此外，補充財務明細表也可於 ir.zscaler.com 下載。請注意，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。您可在我們的財報新聞稿中找到 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 的調節亦可在剛才提到的補充財務資訊中找到。

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, remaining performance obligations, 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.

提醒各位，我們在今天的討論中將做出前瞻性陳述，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）、剩餘履約義務（remaining performance obligations）、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績效的保證，而是受到風險與不確定性影響，其中部分因素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的內容有重大差異。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。

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.

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，以及今日的財報新聞稿。

I would like to inform you that we will be participating in several upcoming investor conferences. Management will be at the Morgan Stanley TMT Conference in San Francisco on March 4; the SunTrust Technology, Internet & Services Conference in New York City on March 11; and Crédit Suisse Investor Relations 1-on-1 Conference in New York City on March 12.

我想告知各位，我們將參與數場即將舉行的投資人會議。管理團隊將出席 3 月 4 日於舊金山舉行的 Morgan Stanley TMT Conference；3 月 11 日於紐約市舉行的 SunTrust Technology, Internet & Services Conference；以及 3 月 12 日於紐約市舉行的 Crédit Suisse Investor Relations 1-on-1 Conference。

Now I'll turn the call over to Jay.

現在我把電話會議交給 Jay。

Thank you, Bill, and thank you, everyone, for joining us. We delivered solid Q2 results, while making tremendous progress in important areas of our business, particularly with our go-to-market initiatives.

謝謝你，Bill，也謝謝各位參與。我們交出穩健的第二季成果，同時在業務的關鍵領域取得重大進展，尤其是在我們的市場推進（go-to-market）計畫方面。

In Q2, our revenue grew 36%, and billings grew 18% year-over-year, which had a difficult comparison due to a non-recurring private cloud sale to a large public sector customer last year. Adjusting for this, revenue grew 41%, and billings grew 30%. During the quarter, we significantly expanded our sales leadership team, refined our territory coverage, revamped our channel program and retooled our sales management systems. It is remarkable how much progress we made on our go-to-market initiatives in a short period of time. Considering the significant undertakings, I am very pleased with our results. We are seeing good momentum in our business, and we are increasing our outlook for revenue and billings for the full fiscal year 2020.

第二季，我們的營收年增 36%，帳單金額（billings）年增 18%；由於去年曾對一位大型公部門客戶完成一次性（非經常性）的私有雲銷售，使得比較基期較為艱難。若排除此因素，營收成長 41%，帳單金額成長 30%。本季期間，我們大幅擴充銷售領導團隊、精進區域覆蓋策略、改造通路計畫，並重新調整銷售管理系統。在短時間內，我們在市場推進計畫上取得如此多的進展，令人印象深刻。考量到這些重大投入，我對我們的成果非常滿意。我們看到業務動能良好，並上調 2020 會計年度全年的營收與帳單金額展望。

On profitability, we delivered 11% non-GAAP operating margins, and our free cash flow was negative $2 million. Excluding the $15 million onetime cash payment to settle all Symantec lawsuits, free cash flow would have been positive $13 million. While we delivered strong profitability in the quarter, we are focused on making strategic investments to position Zscaler well for the long term.

在獲利方面，我們達成 11% 的非 GAAP 營業利益率，自由現金流為負 200 萬美元。若排除為和解所有 Symantec 訴訟而支付的一次性 1,500 萬美元現金，自由現金流本可為正 1,300 萬美元。雖然本季我們展現強勁獲利能力，但我們仍專注於進行策略性投資，以讓 Zscaler 在長期具備更佳定位。

What excites me the most is seeing our customers leverage our cloud-native integrated security platform to accelerate their digital transformation journey. We are empowering them to transform their network and security to fully realize the benefits of cloud and mobility.

最令我振奮的是看到客戶運用我們雲端原生（cloud-native）的整合式安全平台，加速其數位轉型旅程。我們協助他們轉型其網路與資安架構，以充分實現雲端與行動化所帶來的效益。

Let me highlight a few wins in Q2 that show the many use cases of our platform and what we believe are our sustainable competitive advantages.

我想重點分享第二季幾個成功案例，展現我們平台的多元使用情境，以及我們認為可持續的競爭優勢。

I will start with a new logo win of a national public transportation provider in Europe that needed to modernize its infrastructure and better engage with its passengers. The scalability and elasticity of a cloud became a critical enabler of their transformation strategy, supporting large-scale data center consolidation, application migration and network changes. Zscaler is the only solution that could meet the requirements to scale from 2 gigabit per second Internet connectivity today to 100 gigabits per second in the future while delivering full SSL inspection and sandboxing for zero-day threats. We closely partnered with a global system integrator to implement our Transformation bundle for 45,000 users. This is a great example of the leverage we gained from working with a system integrator partner that was awarded the overall transformation project.

我先從歐洲某國家級大眾運輸服務供應商的一個新客戶（new logo）案例談起；該客戶需要現代化其基礎架構，並更好地與乘客互動。雲端的可擴展性與彈性成為其轉型策略的關鍵推動力，支援大規模資料中心整併、應用程式遷移與網路變更。Zscaler 是唯一能滿足其需求的解決方案：在提供完整 SSL 檢查與針對零時差威脅（zero-day threats）的沙箱分析（sandboxing）的同時，能將網際網路連線能力從目前每秒 2Gb 擴展到未來每秒 100Gb。我們與一家全球系統整合商密切合作，為 45,000 名使用者導入我們的 Transformation 套裝方案。這是我們與系統整合商夥伴合作所帶來槓桿效益的絕佳例子；該夥伴同時也獲得了整體轉型專案的承攬。

In our large ZIA deals, we continue to see increasing adoption of SaaS and Office 365 as primary drivers. In another new customer win, a Fortune 500 material sciences company purchased our Business bundle that includes advanced threat protection, SSL inspection and bandwidth control for 57,000 users. With a cloud-first strategy, their legacy on-premise security gateway became irrelevant. We provided protection across over 100 locations and, for mobile users, improving their security posture and delivering elasticity that's expected of a cloud service.

在我們的大型 ZIA 交易中，我們持續看到 SaaS 與 Office 365 的採用率提升，並成為主要驅動因素。在另一個新客戶案例中，一家《財富》500 大材料科學公司採購了我們的 Business 套裝方案，涵蓋 57,000 名使用者，內容包含進階威脅防護、SSL 檢查與頻寬控管。在雲端優先（cloud-first）策略下，他們既有的本地端（on-premise）傳統安全閘道已不再適用。我們為其超過 100 個據點提供防護，並針對行動使用者提升其安全態勢，同時提供符合雲端服務期待的彈性。

Now let me give an example of an upsell deal. A Fortune 100 healthcare company that started a large paid pilot of our Transformation bundle plus DLP for 10,000 users just 9 months ago, purchased additional seats, along with our newly released CASB to cover all 65,000 employees. With 120 SaaS and cloud apps already in use, their existing appliance-centric security approach was failing even with 40 large security appliances in their 2 primary data centers. With the upcoming Office 365 deployment which often doubles Internet bound traffic, this customer is implementing local breakout with SD-WAN, secured by Zscaler across 450 locations. Notably, this was our first CASB win as the customer wanted an integrated solution: CASB that is integrated with ZIA and that brings together both out-of-band and inline CASB capabilities. For the first phase of adopting a Zero Trust Network Access strategy across the company, they bought ZPA for 2,500 users to help integrate a recently acquired company and provide secure access to AWS for their developers.

接下來我舉一個加購（upsell）交易的例子。一家《財富》100 大醫療保健公司在 9 個月前，針對 10,000 名使用者啟動我們 Transformation 套裝方案加上 DLP 的大型付費試點（paid pilot）；如今該客戶加購更多席次，並採購我們新推出的 CASB，以涵蓋其全部 65,000 名員工。由於已使用 120 個 SaaS 與雲端應用程式，即使在兩個主要資料中心部署了 40 台大型安全設備，其既有以設備為中心（appliance-centric）的安全方法仍然失靈。隨著即將部署 Office 365（通常會使對外網際網路流量倍增），該客戶正透過 SD-WAN 實施本地分流（local breakout），並由 Zscaler 在 450 個據點提供安全防護。值得注意的是，這是我們第一個 CASB 勝案，因為客戶希望採用整合式解決方案：與 ZIA 整合的 CASB，並同時結合帶外（out-of-band）與內聯（inline）的 CASB 能力。作為在全公司導入零信任網路存取（Zero Trust Network Access）策略的第一階段，他們採購了供 2,500 名使用者使用的 ZPA，以協助整合近期併購的公司，並為其開發人員提供對 AWS 的安全存取。

I'm delighted to share our continued momentum with ZPA, which remains our fastest-growing product line. There is a growing customer interest in Zero Trust Network Approach to offer access to applications without granting access to the corporate network. As an early pioneer, ZPA is a mature, rich offering that is deployed in hundreds of enterprises. Let me highlight a few additional ZPA wins in the quarter.

我很高興分享我們在 ZPA 上持續的成長動能；ZPA 仍是我們成長最快的產品線。客戶對零信任網路方法（Zero Trust Network Approach）的興趣日益增加，因其可在不授予企業內部網路存取權的情況下，提供對應用程式的存取。作為早期先驅，ZPA 是一項成熟且功能豐富的產品，已在數百家企業中部署。我再補充說明本季幾個額外的 ZPA 勝案。

2 years ago, a Global 10 multinational oil and gas customer bought our ZIA Transformation Bundle for 145,000 employees. After ZIA delivered excellent user experience while handling a 200% growth in their Internet traffic over 2 years, the customer purchased ZPA for over 100,000 users to replace its legacy VPN and to secure access to applications in the public cloud. ZPA represents the next step in this customer's IT transformation journey towards the cloud-first strategy. To improve security, ZPA will connect users to applications, not the network. This would not be possible with legacy VPN or firewall solutions. Since starting with Zscaler 4 years ago with Professional Bundle, this customer has increased the total annual spend with Zscaler by over 700%.

兩年前，一家全球前十大跨國石油與天然氣客戶為 145,000 名員工購買了我們的 ZIA Transformation Bundle。在 ZIA 於兩年內在其網際網路流量成長 200% 的情況下仍提供卓越的使用者體驗後，該客戶又為超過 100,000 名使用者購買了 ZPA，以取代其既有的 VPN，並確保對公有雲中應用程式的存取安全。ZPA 代表該客戶在邁向雲端優先策略的 IT 轉型旅程中的下一步。為了提升安全性，ZPA 將把使用者連到應用程式，而不是連到網路。使用傳統 VPN 或防火牆解決方案無法做到這一點。自 4 年前以 Professional Bundle 與 Zscaler 合作以來，該客戶在 Zscaler 的年度總支出已增加超過 700%。

I'm thrilled that more customers are purchasing ZIA and ZPA together to leverage a single platform for secured cloud transformation.

我非常振奮，因為有更多客戶同時購買 ZIA 與 ZPA，以運用單一平台來實現安全的雲端轉型。

A multinational industrial company purchased ZIA Business Bundle and Cloud Firewall for 60,000 users and ZPA for 40,000 users. The move to Zscaler was driven by: One, to pursue local breakout from 3 data centers to 750 locations globally as their Office 365 rollout overwhelmed their existing security infrastructure; two, to execute faster M&A and divestitures.

一家跨國工業公司為 60,000 名使用者購買了 ZIA Business Bundle 與 Cloud Firewall，並為 40,000 名使用者購買了 ZPA。轉向 Zscaler 的動因包括：第一，隨著其 Office 365 部署使既有安全基礎架構不堪負荷，該公司希望從 3 個資料中心改為在全球 750 個據點進行本地分流（local breakout）；第二，加速執行併購（M&A）與資產剝離。

Zscaler is the only solution that could meet all the requirements and deliver an excellent user experience. Due to ZPA's Zero Trust Network access architecture, our ability to support M&A and divestitures is unique and was instrumental to winning this deal. The customer is leveraging Zscaler to provide secure, fast and reliable access for any user from any occasion on any device at a lower cost of ownership and with greater operational simplicity.

Zscaler 是唯一能滿足所有需求並提供卓越使用者體驗的解決方案。由於 ZPA 的零信任網路存取架構，我們支援併購與資產剝離的能力具獨特性，並且是贏得此案的關鍵。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，為任何使用者在任何情境、任何裝置上提供安全、快速且可靠的存取。

Lastly, I will share another combined ZIA and ZPA win. A Fortune 500 medical testing company with a strategic objective of expanding the business in cloud-based data analytics needed to transform their network and security for greater agility and IT simplification. This customer purchased the ZIA Business Bundle and Cloud Firewall for 25,000 users to secure local Internet breakouts with SD-WAN for 3,600 locations. While the incumbent firewall vendor offers an integrated SD-WAN solution, the customer chose a light branch architecture with Zscaler providing all security in the cloud as advocated by Gartner's SASE model. In the first phase of adopting a Zero Trust Network Access strategy across the company, the customer also purchased ZPA for 8,000 users to replace a legacy VPN remote access.

最後，我再分享一個同時拿下 ZIA 與 ZPA 的案例。一家《財富》500 大的醫療檢測公司，其策略目標是擴展雲端資料分析業務，因此需要改造其網路與安全架構，以提升敏捷性並簡化 IT。該客戶為 25,000 名使用者購買了 ZIA Business Bundle 與 Cloud Firewall，以透過 SD-WAN 為 3,600 個據點的本地網際網路分流提供安全防護。儘管既有的防火牆供應商提供整合式 SD-WAN 解決方案，該客戶仍選擇輕量分支（light branch）架構，由 Zscaler 在雲端提供所有安全性，符合 Gartner 所倡議的 SASE 模型。在公司內推動零信任網路存取策略的第一階段，該客戶也為 8,000 名使用者購買了 ZPA，以取代傳統 VPN 的遠端存取。

As these news show, a cloud-first world requires a cloud-native architecture. Unlike the traditional security appliances, our born-in-the-cloud security platform can scale. Remember, Zscaler stands for Zenith of Scalability. You've seen the legacy network security vendors trying to recast themselves as cloud security providers. The single-tenant architecture is not designed for the cloud. As I have said before, 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.

從這些消息可見，雲端優先的世界需要雲原生架構。不同於傳統安全設備，我們的雲端原生安全平台具備可擴展性。請記住，Zscaler 代表可擴展性的巔峰（Zenith of Scalability）。你已看到傳統網路安全供應商試圖將自己重新包裝成雲端安全供應商。單租戶架構並非為雲端而設計。如我先前所說，你不可能把成千上萬台 DVD 播放器堆到雲端就做出 Netflix 服務；你也不可能在公有雲中啟動一堆虛擬機器，就提供內聯式（in-line）、高效能的安全雲。

As you may know, Gartner published 2 groundbreaking research reports to respond to customers' needs for better advice for security and network transformation.

如你所知，Gartner 發布了 2 份突破性的研究報告，以回應客戶對安全與網路轉型需要更佳建議的需求。

First, "The Future of Network Security Is in the Cloud," which defines a new approach named Secure Access Service Edge, or SASE, that strongly validates Zscaler's platform and vision. Gartner predicts that most organizations will move their network security to a SASE model. Many vendors are claiming that they are SASE, but we believe Zscaler most comprehensively meets the core architectural principles of SASE, including cloud edge architectural, light branch design, proxy technology and cloud-native, multitenant architecture. We are SASE since 2008.

第一份是《The Future of Network Security Is in the Cloud》，該報告定義了一種名為 Secure Access Service Edge（SASE）的新方法，強力驗證了 Zscaler 的平台與願景。Gartner 預測，多數組織將把其網路安全遷移至 SASE 模型。許多供應商宣稱自己是 SASE，但我們相信 Zscaler 最全面地符合 SASE 的核心架構原則，包括雲端邊緣架構、輕量分支設計、代理（proxy）技術，以及雲原生、多租戶架構。我們自 2008 年起就是 SASE。

The second Gartner report defines Zero Trust Network Access, or ZTNA, architecture, which advocates that network security can no longer be done in a perimeter-less world. Hence, users should not be connected to the network, but only to specific applications. This architecture renders traditional network security products like firewalls irrelevant. We believe ZPA is the best implementation of ZTNA, and we are well positioned to capitalize on this rapidly growing market opportunity.

第二份 Gartner 報告定義了零信任網路存取（ZTNA）架構，主張在無邊界的世界中，網路安全已無法再以周界方式來完成。因此，使用者不應連到網路，而應只連到特定應用程式。此架構使得像防火牆等傳統網路安全產品變得不再重要。我們相信 ZPA 是 ZTNA 的最佳實作，並且我們已做好準備，把握這個快速成長的市場機會。

We have over a 10-year lead on operating our cloud platform at scale, processing over 85 billion transactions per day and providing an unprecedented network effect for better security for our customers.

我們在大規模營運雲端平台方面領先超過 10 年，每天處理超過 850 億筆交易，並為客戶提供前所未有的網路效應，以提升安全性。

Let me update you on the status of a new product that we believe will keep us well ahead of the competition. As we discussed previously, we have 4 new product offerings that will be generally available in early fiscal Q4.

我來向各位更新一項新產品的進展，我們相信它將讓我們持續大幅領先競爭對手。如先前所討論，我們有 4 項新產品將在本財年第四季初正式全面上市（GA）。

Zscaler B2B and Zscaler Digital Experience, or ZDX, are 2 new product lines that are getting great initial feedback from our beta customers. We believe that these product lines will significantly expand our already large market opportunity.

Zscaler B2B 與 Zscaler Digital Experience（ZDX）是兩條新的產品線，從我們的 Beta 客戶那裡獲得非常好的初期回饋。我們相信這些產品線將大幅擴大我們原本就很大的市場機會。

We are engaged with several dozen customers for our CASB offering, and we have closed a few deals already. With the out-of-band CASB, combined with our existing in-line CASB capabilities, we now offer a complete CASB solution.

我們的 CASB 產品正與數十位客戶進行合作洽談，且已經成交了幾筆案子。透過帶外（out-of-band）CASB，結合我們既有的內聯式（in-line）CASB 能力，我們現在提供完整的 CASB 解決方案。

Our Browser Isolation offering is already being tested by a dozen customers.

我們的 Browser Isolation 產品目前已由十多位客戶進行測試。

It is important to point out that these new products are fully integrated with the Zscaler platform, which provides a common set of services, such as user authentication, central logging, single policy engine, making Zscaler a compelling and powerful platform for security transformation and vendor consolidation. We believe these new products will add to our growth in fiscal 2021 and beyond.

重要的是要指出，這些新產品都與 Zscaler 平台完全集成；該平台提供一套共通服務，例如使用者驗證、集中式記錄（logging）、單一政策引擎，使 Zscaler 成為推動安全轉型與供應商整併時極具吸引力且強大的平台。我們相信這些新產品將推動我們在 2021 財年及其後的成長。

Let's now turn to our go-to-market. As I stated during the last earnings call, we are focused on improving our sales execution to take Zscaler beyond $1 billion in annual revenue. I couldn't be happier having Dali onboard leading our go-to-market organization. I'm excited about the key initiatives that Dali and our sales leadership are putting in place to position us well for a long-term growth. The progress we are making in a short period of time is quite remarkable and, in many ways, ahead of my expectations. We accelerated the majority of our initiatives within the last quarter as we rolled out a refined, repeatable and scalable sales process.

接下來談談我們的市場推進（go-to-market）。如我在上一次財報電話會議中所述，我們專注於提升銷售執行力，將 Zscaler 推向年營收超過 10 億美元。我非常高興 Dali 加入並領導我們的市場推進組織。我對 Dali 與我們的銷售領導團隊正在推動的關鍵計畫感到振奮，這些計畫將使我們在長期成長上具備良好定位。我們在短時間內取得的進展相當顯著，且在許多方面超出我的預期。隨著我們推出更精煉、可重複且可擴展的銷售流程，我們在上一季加速推進了大多數計畫。

Let me highlight the key initiatives.

我來重點說明這些關鍵計畫。

We implemented our new sales enablement program. This program is having a great impact on the consistency and quality of execution across the entire sales organization. We expect this to enable our new hires to ramp faster with quality activity out of the gate.

我們導入了新的銷售賦能（sales enablement）計畫。該計畫對整個銷售組織在執行一致性與品質方面帶來了很大的影響。我們預期這將使新進人員能更快上手，並從一開始就以高品質的活動展開工作。

We implemented new AI-based tools and systems to provide visibility into leading indicators such as sales activities and key go-to-market metrics.

我們導入了新的 AI 為基礎的工具與系統，以提升對領先指標（leading indicators）的可視性，例如銷售活動與關鍵市場推進指標。

We expanded and deepened our sales leadership structure, positioning us to scale our sales organization going forward. This included internal promotions to frontline leadership roles.

我們擴充並深化了銷售領導架構，使我們能在未來擴大銷售組織規模。其中包括內部晉升至第一線領導職務。

We rolled out a new sales leadership training program and trained all of our sales leaders in the past 90 days. Among other things, this training includes how to attract and hire the right talent.

我們推出了新的銷售領導力訓練計畫，並在過去 90 天內訓練了所有銷售主管。除其他內容外，該訓練也包含如何吸引並招募合適的人才。

We continue to aggressively hire in sales and plan to increase our sales rep headcount by 60% by the end of this fiscal year compared to prior year. I'm impressed with the quality of candidates we are attracting and hiring to drive top-down transformational sales.

我們持續在銷售方面積極招募，並計劃在本會計年度結束前，將銷售代表人數較前一年度增加 60%。我對我們所吸引並錄用的人才品質印象深刻，他們將推動自上而下的轉型式銷售。

We evaluated and defined territory coverage that we believe will lead to higher volume and quality of customer engagements.

我們評估並界定了我們認為將帶來更高數量與更高品質客戶互動的區域覆蓋方式。

To drive home these initiatives, we held 2 midyear sales kickoffs earlier this month, 1 in Europe and 1 in the U.S., to bring the global sales organization together for training and team building.

為了落實這些倡議，我們在本月稍早舉辦了 2 場年中銷售啟動會議，一場在歐洲、一場在美國，以便讓全球銷售組織齊聚一堂進行訓練與團隊建立。

While it will take time to realize the full benefits of these changes, I'm excited to share that we are starting to see promising leading indicators: Customer engagements are up significantly, both in new business meetings and existing customer interaction, with more high-impact CXO meetings. And with the introduction of weekly pipeline generation day, the quality and volume of our pipeline is growing.

雖然要完全實現這些變革的全部效益仍需時間，但我很高興分享，我們已開始看到令人鼓舞的領先指標：客戶互動顯著增加，無論是新業務會議或既有客戶互動皆然，且高影響力的 CXO 會議更多。此外，隨著每週管線生成日的導入，我們的銷售管線品質與數量正在成長。

To complement our comprehensive platform, we have been integrating our solution with technology leaders and creating go-to-market leverage with deeper field engagements with their sales organizations. For example, after recently completing the integration of the Zscaler platform with CrowdStrike, we are starting to see new opportunities with Global 2000 customers. Our field teams are partnering to sell to new customers and to our respective customer bases. Our Microsoft partnership is growing stronger and creating more tailwinds with the adoption of Office 365, Azure public cloud, Azure AD and Azure Sentinel. We are training Microsoft security professionals and architects on our integrated solution. Zscaler was also recently recognized as Microsoft Security 20/20 Partner Awards finalist, nominated in 2 categories, ISV Partner of the Year and Customer Impact. And we are working closely with both VMware and Silver Peak to secure their SD-WAN deployments.

為了補強我們的完整平台，我們一直在將解決方案與技術領導者進行整合，並透過與其銷售組織更深入的前線互動，創造上市策略（go-to-market）的槓桿效益。例如，近期完成 Zscaler 平台與 CrowdStrike 的整合後，我們開始在 Global 2000 客戶中看到新的機會。我們的前線團隊正合作向新客戶以及彼此的客戶群銷售。我們與 Microsoft 的合作夥伴關係日益強化，並隨著 Office 365、Azure 公有雲、Azure AD 與 Azure Sentinel 的採用而帶來更多順風。我們正在為 Microsoft 的資安專業人員與架構師提供我們整合式解決方案的訓練。Zscaler 近期也獲選為 Microsoft Security 20/20 Partner Awards 的決選入圍者，並在 2 個類別獲提名：年度 ISV 合作夥伴與客戶影響力。此外，我們也正與 VMware 與 Silver Peak 緊密合作，以保護其 SD-WAN 部署。

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

現在我想把電話會議交給 Remo，說明我們的財務結果。

Thank you, Jay. Revenue for the quarter was $101.3 million, up 8% sequentially and 36% year-over-year. Recall that last year, Q2 '19 revenue was aided by $2.3 million in nonrecurring revenue from a large public sector customer deploying our platform as a private cloud. Excluding this revenue from last year, revenue grew 41% year-over-year. From a geographic perspective, for the quarter, Americas represented 51% of revenue, EMEA was 40% and the APJ was 9%.

謝謝你，Jay。本季營收為 1.013 億美元，較前一季成長 8%，較去年同期成長 36%。請回想去年 2019 會計年度第二季的營收，受惠於一位大型公部門客戶以私有雲方式部署我們平台所帶來的 230 萬美元一次性營收。若排除去年這筆營收，營收年增 41%。以地區來看，本季美洲占營收 51%，EMEA 占 40%，APJ 占 9%。

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 18% year-over-year to $135.4 million against a typical comparison. Recall, we had a large upfront billing of $11 million in Q2 of 2019 from the large public sector customer. Excluding this deal, our billings grew 30% year-over-year. As a reminder, our contract terms are typically 1 to 3 years, and we primarily invoice our customers 1 year in advance. Remaining performance obligations, or RPO, which represents our total committed noncancelable future revenue, was $609 million on January 31, up 32% from 1 year ago. The current RPO is 56% of the total RPO.

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，加上該季認列的總營收。在一般可比基礎下，帳單金額年增 18% 至 1.354 億美元。請回想，2019 年第二季我們因該大型公部門客戶而有 1,100 萬美元的大額預先開立帳單。若排除這筆交易，我們的帳單金額年增 30%。提醒一下，我們的合約期限通常為 1 至 3 年，且主要以預先 1 年向客戶開立發票。剩餘履約義務（RPO）代表我們已承諾且不可取消的未來收入總額，於 1 月 31 日為 6.09 億美元，較一年前成長 32%。其中，當期 RPO 占總 RPO 的 56%。

Our strong customer retention and ability to up-sell have resulted in a consistently high dollar-based net retention rate, which is 116% for the quarter. This compares to 118% a year ago and 120% last quarter. As we've highlighted, this metric will vary quarter-to-quarter. Our increased success selling bigger deals, starting immediately with our Transformation Bundle and faster upsells within a year, while good for our business, can reduce our dollar-based net retention rate, which is calculated on a year-over-year ARR basis. Considering these factors, we feel that 116% is very strong.

我們強勁的客戶留存與向上銷售能力，使得以美元計的淨留存率長期維持在高水準，本季為 116%。相較之下，一年前為 118%，上一季為 120%。如我們先前強調，該指標會隨季度波動。我們在銷售更大型交易方面的成功（從 Transformation Bundle 立即開始）以及在一年內更快的加購，雖對業務有利，但可能會降低以美元計的淨留存率，因為該指標是以年對年 ARR 為基礎計算。綜合考量這些因素，我們認為 116% 仍然非常強勁。

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

總毛利率為 82%，較前一季提升 1 個百分點，較去年同期提升 2 個百分點。我們認為短期內 80% 仍是良好的目標區間，因為持續投資平台以推動營收成長非常重要。

Turning to operating expenses. Total operating expenses decreased 1% sequentially and increased 44% year-over-year to $71.9 million and increased as a percentage of revenue to 71% compared to 67% last year.

接著談營業費用。總營業費用較前一季下降 1%，較去年同期增加 44% 至 7,190 萬美元；占營收比重上升至 71%，去年為 67%。

Sales and marketing increased 1% sequentially and 49% year-over-year to $49.7 million. Please keep in mind that in Q1 2020, we had 2 Zenith Live user conferences and a global sales kickoff that represented $6.5 million in expenses. The year-over-year increase is due to higher compensation expenses and investments in building our teams and go-to-market initiatives.

銷售與行銷費用較前一季增加 1%，較去年同期增加 49% 至 4,970 萬美元。請留意，在 2020 會計年度第一季，我們舉辦了 2 場 Zenith Live 使用者大會以及一場全球銷售啟動會議，合計產生 650 萬美元費用。年增主要來自較高的薪酬費用，以及我們在團隊建置與上市策略（go-to-market）倡議上的投資。

R&D was down 4% sequentially and up 33% year-over-year to $14.2 million. The sequential decrease was primarily due to higher capitalization of software development costs as a number of our new products continue to progress towards general availability. On a year-over-year basis, we continue to invest to enhance our product functionality and to innovate new products.

研發費用較前一季下降 4%，較去年同期增加 33% 至 1,420 萬美元。前一季的下降主要是因為隨著多項新產品持續朝向正式上市（general availability）推進，軟體開發成本資本化的金額提高。以年對年來看，我們持續投資以強化產品功能並創新推出新產品。

G&A decreased 5% sequentially and increased 36% year-over-year to $8.1 million. The sequential decrease was primarily due to lower professional fees, and the year-over-year increase is to support our company growth. G&A expenses exclude $16.3 million in litigation-related expenses, including the $15 million cash settlement for all Symantec lawsuits.

一般與行政（G&A）費用較前一季下降 5%，較去年同期增加 36% 至 810 萬美元。前一季的下降主要來自較低的專業服務費用；年增則是為了支援公司成長。G&A 費用不包含 1,630 萬美元的訴訟相關費用，其中包括為和解所有 Symantec 訴訟而支付的 1,500 萬美元現金和解金。

Our second quarter operating margin was 11%, which compares to 13% in the same quarter last year. Net income in the quarter was $12 million or non-GAAP earnings per share of $0.09.

我們第二季的營業利益率為 11%，相較去年同期為 13%。本季淨利為 1,200 萬美元，或非 GAAP 每股盈餘 0.09 美元。

We ended the quarter with $385 million in cash, cash equivalents and short-term investments. Free cash flow was negative $2 million in the quarter. Excluding the $15 million onetime cash payment to settle all Symantec lawsuits, free cash flow would have been positive $13 million.

本季結束時，我們持有的現金、約當現金及短期投資為 3.85 億美元。本季自由現金流為負 200 萬美元。若排除為和解所有 Symantec 訴訟而一次性支付的 1,500 萬美元現金，自由現金流本應為正 1,300 萬美元。

Now moving on to guidance. As a reminder, these numbers are all non-GAAP, which excludes stock-based compensation expenses, amortization of acquired intangible assets, certain litigation-related expenses, facility exit cost and any associated tax effects. For the third quarter, we expect revenue in the range of $105 million to $107 million, reflecting a year-over-year growth of 33% to 35%. Operating profit in the range of $1 million to $3 million. We plan to increase our sales investments in Q3. Also, please keep in mind that we spent approximately $2 million on the 2 midyear sales kickoffs in February. Income taxes of $950,000 and earnings per share of approximately $0.01 to $0.03, assuming 139 million common shares outstanding.

接下來談財測指引。提醒一下，以下數字皆為非 GAAP，排除以股份為基礎的薪酬費用、收購無形資產攤銷、特定訴訟相關費用、設施退出成本及任何相關稅務影響。第三季我們預期營收介於 1.05 億至 1.07 億美元，對應年增 33% 至 35%。營業利益介於 100 萬至 300 萬美元。我們計劃在第三季增加銷售投資。另外請留意，我們在 2 月的 2 場年中銷售啟動會議上約支出 200 萬美元。所得稅為 95 萬美元，每股盈餘約 0.01 至 0.03 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 $414 million to $417 million or year-over-year growth of 37% to 38%; calculated billings in the range of $512 million to $517 million or year-over-year growth of 31% to 33%; operating profit in the range of $16 million to $18 million. In Q4, we expect to host our annual Zenith Live conferences in both EMEA and Americas. We expect the cost of these 2 events to be in the range of $5 million to $6 million; income taxes of $3.5 million; and earnings per share in the range of $0.14 to $0.16, assuming approximately 139 million common shares outstanding.

就 2020 會計年度全年而言，我們預期營收介於 4.14 億美元至 4.17 億美元之間，年增 37% 至 38%；計算後帳單金額（calculated billings）介於 5.12 億美元至 5.17 億美元之間，年增 31% 至 33%；營業利益介於 1,600 萬美元至 1,800 萬美元之間。在第四季，我們預期將在 EMEA 與美洲同時舉辦我們年度的 Zenith Live 大會。我們預期這兩場活動的成本介於 500 萬美元至 600 萬美元之間；所得稅為 350 萬美元；每股盈餘介於 0.14 美元至 0.16 美元之間，假設流通在外普通股約 1.39 億股。

Our guidance reflects our plans to invest aggressively in our business to pursue our significant market opportunity. We are very pleased with the progress Dali is making, and we are confident he is the right person to drive our sales and go-to-market execution. We are stepping up our sales and marketing investments in order to build the foundation for long-term growth. In addition, we will increase investments in our technology platform and cloud infrastructure.

我們的指引反映了我們計畫在業務上積極投資，以把握龐大的市場機會。我們對 Dali 的進展感到非常滿意，並且有信心他是推動我們銷售與市場進入（go-to-market）執行的合適人選。我們正在加大銷售與行銷投資，以建立長期成長的基礎。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 the sequential declines in Q1 and Q3 quarters, respectively. For the year, excluding $11 million of upfront billings in Q2 of 2019, our updated billings guidance for the fiscal year implies 35% to 37% growth.

在你們建立帳單金額模型時，我想提醒各位，從歷史來看，第二季與第四季一直是我們帳單最強的季度，而第一季與第三季則分別會出現季對季下滑。就全年而言，若排除 2019 年第二季 1,100 萬美元的一次性預收帳單，我們更新後的本會計年度帳單指引意味著 35% 至 37% 的成長。

In terms of free cash flow, please note that we have additional spend for tenant improvements related to our headquarters move. Including the settlement of Symantec lawsuits, these extraordinary items are expected to total approximately $22 million to $25 million in cash payments for the full year. As a result of these payments, we expect our free cash flow margins in fiscal 2020 to be approximately 1 point 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，請注意我們因總部搬遷而有額外的承租人裝修（tenant improvements）支出。若包含 Symantec 訴訟的和解，這些一次性項目預期全年合計約需 2,200 萬美元至 2,500 萬美元的現金支付。由於這些支付，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約 1 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 營業利潤率。

Now I'd like to turn the call back over to Jay.

現在我想把電話會議交回給 Jay。

Thank you, Remo. In closing, let me state 4 key points that make me excited. One, architecture matters for a cloud security platform that must fit in line to inspect all traffic for policy enforcement. We believe we have the best architecture, with over 10 years of operational experience to run a massive cloud, which is an enormous barrier to entry. Two, 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. Three, we are in early innings of the cloud journey. We are disrupting a $20 billion TAM with ZIA and ZPA. With recently announced Zscaler B2B and ZDX, we believe we will expand our addressable market significantly. Four, with expanded go-to-market leadership in place, we are building a sales machine that can deliver world-class execution and sustainable long-term growth.

謝謝你，Remo。最後，讓我提出 4 個讓我感到振奮的關鍵重點。第一，對於必須內嵌於資料路徑中、檢視所有流量以執行政策的雲端資安平台而言，架構至關重要。我們相信我們擁有最佳架構，並具備超過 10 年營運經驗來運行大規模雲端，這是一道巨大的進入門檻。第二，在多重順風因素之下，例如 Office 365、SaaS 採用、SD-WAN 以及應用程式遷移至公有雲，我們相信市場正在向我們靠攏。第三，我們仍處於雲端旅程的早期階段。我們正以 ZIA 與 ZPA 顛覆一個 200 億美元的 TAM（總可服務市場）。隨著近期發布的 Zscaler B2B 與 ZDX，我們相信我們將大幅擴大可觸及市場。第四，隨著擴充後的市場進入（go-to-market）領導團隊到位，我們正在打造一部銷售機器，能夠提供世界級的執行力與可持續的長期成長。

We thank you for your interest in Zscaler and look forward to reporting 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) We'll take our first question from Brad Zelnick from Crédit Suisse.

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

So Jay, you spoke to this throughout your prepared remarks a bit, but I'd love if you can expound on it perhaps a bit more. In context of the business decelerating and the reacceleration required to achieve your full year guidance, what's driving your confidence at this point? And specifically, how should we think about the visibility you have into the back half of the year?

Jay，你在事先準備的發言中有稍微談到這點，但我希望你能再多加闡述一些。在業務成長放緩、且為了達成你們全年指引需要在後續重新加速的背景下，目前是什麼驅動你們的信心？具體而言，我們應該如何看待你們對下半年業務的可視性？

Okay. Brad, thank you. As we have said before, we brought Dali on board, we knew we needed to do a number of things to further scale our business to a larger level. And some of the main things we have already addressed are enablement of sales teams. We had a small enablement team; we've grown it. We have proper training programs, refined the sales process to make it scalable. We put a number of systems in place that give visibility to not only headquarters, but also frontline leaders. And we significantly expanded the sales leadership in the field and created an extra layer that's needed for scaling. So a lot of those things are behind us and done. And we brought the entire sales organization together in 2 places for a midyear SKO, sales kickoff, Americas and EMEA, to really bring it all together.

好的。Brad，謝謝你。如同我們先前所說，我們延攬 Dali 加入時，就知道我們需要做許多事情，才能把業務進一步擴展到更大的規模。而我們已經處理的一些主要事項包括：強化銷售團隊賦能（enablement）。我們原本的賦能團隊很小；現在已經擴編。我們建立了完善的訓練計畫，並精煉銷售流程，使其可規模化。我們導入多套系統，不僅讓總部，也讓第一線主管能夠掌握可視性。我們也大幅擴充了前線的銷售領導團隊，並建立了擴張所需的額外管理層級。因此，許多事情都已經完成並告一段落。此外，我們也在兩個地點把整個銷售組織聚集起來，舉辦年中 SKO（sales kickoff，銷售啟動會），分別在美洲與 EMEA，真正把所有事情整合起來。

So those are the things that are accomplished. Now the second question is about confidence. Obviously, we look for what some of the impacts are, what's giving us confidence to give you the projections we've done for the second half.

所以這些事情都已經完成。接著第二個問題是關於信心。顯然，我們會去觀察有哪些影響因素、以及是什麼讓我們有信心，能夠對你們提出我們對下半年的預測。

There are a couple of main things that fall in that area. Number one is, we are able to measure our sales engagement, engagement with our customers, engagement with new business. And the tools are put in place and the leadership we're driving, we are seeing a far better engagement than we used to have.

在這方面有幾個主要因素。第一，我們能夠衡量我們的銷售互動程度、與客戶的互動程度、以及新業務的互動程度。隨著工具到位以及我們推動的領導力，我們看到的互動程度比過去好得多。

The second, even more important, is pipeline generation because that's a good indicator that the volume of pipeline, the quality of pipeline is all going up. So looking at the pipeline, looking at the engagements, that's what's reflected in our visibility and confidence for the second half of the business.

第二點、而且更重要的是，管線（pipeline）生成，因為這是很好的指標，顯示管線的量與管線的品質都在提升。因此，從管線、從互動程度來看，這些都反映在我們對下半年業務的可視性與信心上。

And Remo, if I can just follow up with a quick one for you. From a billings duration perspective, and I appreciate the adjustment on the year-ago comp for the large deal that you've called out, both then and now, but is there anything as we think about the average contract length, the mix of duration in this quarter, perhaps sequentially or even year-on-year, if we exclude that large deal, that we should take into account as we appraise your results that we're looking at tonight?

Remo，如果可以的話，我想再快速追問你一題。從帳單期間（billings duration）的角度來看，我也很感謝你們針對去年同期那筆你們點出的大型交易，對可比基期所做的調整；但當我們思考平均合約期限、以及本季期間結構的組合（無論是季對季或年對年）時，如果排除那筆大型交易，是否還有任何我們在評估今晚看到的你們業績時需要納入考量的因素？

Yes. Thank you, Brad. Even with the deal that we had, the duration came down substantially year-over-year. When you take that large deal out, the duration did decrease slightly. I would say that the average duration is right around 12 months and hasn't really changed that much on a year-over-year or quarter-over-quarter basis.

是的。謝謝你，Brad。即使包含我們那筆交易，期間也較去年同期大幅下降。當你把那筆大型交易排除後，期間確實略有下降。我會說平均期間大約在 12 個月左右，無論年對年或季對季，其實沒有太大變化。

We'll take our next question from Daniel Bartus with Bank of America.

接下來我們的問題來自美國銀行（Bank of America）的 Daniel Bartus。

First for Jay, I wanted to ask about the SD-WAN partners as I'm sure some see you guys as a bit of a competitive threat as well as a partner. So have there been any changes in the market where SD-WAN vendors have gotten more aggressive in pushing their own security offerings? And then for Remo as a quick follow-up. Pretty notable beat on operating margins. So can you discuss if you guys are behind on hiring? And to hit the lower second half operating margins, should we attribute this all to higher go-to-market spending pretty much?

第一個問題給 Jay。我想問關於 SD-WAN 合作夥伴，因為我確信有些人既把你們視為合作夥伴，也視為某種競爭威脅。那麼市場上是否有任何變化，使得 SD-WAN 供應商在推動自家安全產品方面變得更積極？接著給 Remo 一個快速追問。你們的營業利潤率明顯優於預期。所以你能否談談你們是否在人員招募上落後於計畫？而若要達到下半年較低的營業利潤率，我們是否應該幾乎全部歸因於更高的市場進入（go-to-market）支出？

All right. Thank you. First of all, regarding the SD-WAN landscape, I'll share with you based on my field engagements. I'm out there meeting lots and lots of customers. There are largely 3 vendors we see in most of the enterprise deals. It's VMware Velocloud, it's Cisco Viptela and Silver Peak. In all those deals, we are the preferred security choice. They don't try to build security in the branch box, so to speak.

好的。謝謝。首先，關於 SD-WAN 的市場版圖，我會根據我在第一線與客戶互動的經驗跟各位分享。我在外面拜訪非常非常多的客戶。在大多數企業級案子裡，我們主要看到 3 家供應商。分別是 VMware Velocloud、Cisco Viptela 以及 Silver Peak。在所有這些案子中，我們都是首選的資安方案。他們不會試圖把資安建在分支機箱裡，這麼說吧。

Yes, there are a couple of vendors who are trying to build security in the box. If you look at Gartner's SASE paper and if you talk to security experts in general, they don't believe security can be built in a branch box. Security needs to be done in the cloud. So perhaps there is some opportunity for some of these vendors in the mid-market where security is not viewed as very critical. But when you come to securities-heavy companies, which is generally larger enterprises, we don't really see a change in it. In fact, we have seen better engagement with some of the larger partners like VMware and Silver Peak.

是的，確實有幾家供應商正在嘗試把資安做進盒子裡。如果你看 Gartner 的 SASE 報告，或是跟一般資安專家交流，他們不認為資安可以建在分支機箱裡。資安需要在雲端完成。所以，對其中一些供應商而言，在中型市場或許有一些機會，因為那裡資安不被視為非常關鍵。但當你面對資安要求很高的公司（通常是大型企業）時，我們並沒有真的看到這方面有變化。事實上，我們與一些更大型的合作夥伴（例如 VMware 和 Silver Peak）的合作互動反而更好。

And related to the questions you had for me, the beat on margin in the quarter was related to the beat on revenue, higher gross margin and also lower operating expenses and primarily related to headcount. On a go-forward basis, for the second half, we do expect to step up our go-to-market investments. One of the things we called out or a couple of things we called out was the 2 SKOs we had in February and also the 2 user conferences we're going to have in June. In addition, our expectation and one of the comments we made was that we'd be at a 60% RSM headcount growth year-over-year. We expect to be there. So our plan and expectation is to be at 60% growth -- RSM headcount growth year-over-year.

另外，回到你剛才問我的問題，本季毛利率優於預期，主要是因為營收優於預期、毛利率更高，以及營業費用更低，而營業費用主要與人力編制相關。往後看，在下半年，我們確實預期會加大我們的 go-to-market（市場推進）投資。我們提到的一件事（或幾件事）是：2 月我們辦了 2 場 SKO（銷售啟動會），以及 6 月我們將舉辦 2 場使用者大會。此外，我們的預期以及我們提到的一點是，我們的 RSM 人數將年增 60%。我們預期會達成。所以我們的計畫與預期是：RSM 人數年增 60%。

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

接下來我們請 Needham & Company 的 Alex Henderson 提問。

So I was hoping you could talk a little bit about the slope of the new sales hire and the timing which those people will get up and running as they go through the training process and the like. Obviously, you are accelerating your hires targeting 60% increase in staffing. Don't think that you're at that rate at this point. So is it going to accelerate into the back half? And if that's the case, should we not see an acceleration of the contribution with a lag of, what, 3 months, 6 months? Help us think it through.

我希望你們能談談新進銷售人員招募後的爬坡曲線，以及這些人完成訓練流程等之後，何時能夠上手並開始產出。顯然你們正在加速招募，目標是人力增加 60%。我不認為你們目前已經達到那個速度。所以這會在下半年加速嗎？如果是這樣，我們是否會在落後（例如 3 個月、6 個月）的時間後，看到貢獻加速？請幫我們理清這個邏輯。

Thanks, Alex. I'll start, and Remo, you can add more color to it. As a part of our plan, one of the things we needed to do in this company was to expand our sales leadership at the front line. So that's the first priority we did to expand because we knew that it'd be right if we hired the right leaders in the field, they can actually hire a good number of sales reps.

謝謝，Alex。我先回答，Remo 你可以再補充一些細節。作為我們計畫的一部分，這家公司需要做的一件事，是在第一線擴充我們的銷售領導層。所以我們首先優先擴充這一塊，因為我們知道，只要在前線聘到合適的領導者，他們其實可以招募到相當數量的業務代表。

So we accelerated sales leadership hiring and actually are ahead of what I thought it would be. Knowing that the priority, so yes, today, we are behind on the sales plan where we wanted to be, but knowing that the leaders are in place, knowing that they have been trained on actually hiring and training, we are pretty confident that we will get to our 60% hiring number. So that was one part of the question. And a lot of enablement we are doing in the systems we are putting in place is to make sure there's better visibility and more effective engagement with customers for a better ramp-up. So things are being done to provide faster ramp and have better productivity over time. Remo, you want to add to it?

因此我們加速了銷售領導職的招募，而且實際上進度比我原先預期還要超前。基於這個優先順序，所以是的，就目前而言，我們在銷售招募計畫上仍落後於原本希望達到的進度；但考量到領導者已到位，也已受訓、能實際進行招募與訓練，我們相當有信心能達到 60% 的招募目標。這是問題的一部分。另外，我們在系統上所做的許多賦能（enablement）與建置，是為了確保能有更好的可視性，並與客戶進行更有效的互動，以便更快上手。因此我們正在做一些事情，讓爬坡更快、並在時間推移下有更好的生產力。Remo，你要補充嗎？

Yes. Alex, it's a great question. When -- what Dali did in the first half, and as Jay mentioned, he significantly increased the leadership in the sales organization. And we put an additional level layer related with RVPs, regional vice presidents. When you look at the number of RVPs, area VPs and geo VPs in place, it's in the 80% range and that's, in my opinion, quite remarkable to be at that point.

是的。Alex，這是個很好的問題。上半年 Dali 所做的事情，以及如 Jay 提到的，他大幅提升了銷售組織的領導層配置。我們新增了一個層級，與 RVP（區域副總裁）相關。當你看目前到位的 RVP、區域 VP 以及地理區域 VP 的數量，已經在 80% 左右，我認為能做到這個程度相當了不起。

So 80% of our expanded target.

也就是我們擴編目標的 80%。

80% of our expanded target, exactly. So the highest probability that you have to hire the right RSMs is to have that leadership in place. So the concentration in the first half, and particularly in Q2, was to get that leadership level in place in the company. That's what gives me confidence also related to -- when I look at the quality of people that we're bringing on board, it is a very high-quality group of leaders as well as RSMs. When I look at also the Q2, we had the highest gross hires for RSMs in Q2 over the last 2 years. Now our attrition was high also. We called that out on a prior call, saying that we expect attrition to be higher in Q2, which it was. We feel that's behind us. And on a go-forward basis, we feel attrition is going to decrease, and we expect to step up the RSM hires as we go forward. And as I mentioned before, we're very confident and it's our plan to increase at 60% year-over-year.

沒錯，是我們擴編目標的 80%。因此，要提高招募到合適 RSM 的機率，最重要的是先把這些領導層到位。所以我們上半年的重點，特別是在第二季，是把公司內這個領導層級先建起來。這也讓我有信心——當我看我們引進的人才品質，不論是領導者或 RSM，都是非常高品質的一群人。另外看第二季，我們第二季的 RSM 新增人數（gross hires）是過去兩年最高。當然，我們的流失率也偏高。我們在先前的電話會議中也提到，預期第二季流失會更高，而實際也確實如此。我們覺得這已經過去了。往後看，我們認為流失率會下降，同時也預期會進一步加快 RSM 的招募。如我先前提到的，我們非常有信心，而且這也是我們的計畫：RSM 人數年增 60%。

I'll add one more point. As we are hiring these new reps, we're seeing that in their first quarter, they're having better sales engagements because we are measuring those engagements. And some of the enablement and some of the tools we put in place is helping us. So I feel very, very happy about it.

我再補充一點。當我們招募這些新業務時，我們看到他們在第一個季度就有更好的銷售互動，因為我們有在衡量這些互動。而我們導入的一些賦能措施與工具也正在幫助我們。所以我對此感到非常、非常滿意。

If I could do a follow-up question. So obviously, you're confident enough to accelerate your spending in the hiring. Have you seen any change in the competitive landscape that would impede the progress of this investment or offset or dilute the benefit as we look out? Any change in pricing conditions? Any change in competitor capabilities?

我可以追問一個問題嗎？顯然你們對加速招募支出有足夠信心。你們是否看到競爭態勢有任何變化，可能會阻礙這項投資的進展，或在我們往前看時抵銷或稀釋其效益？定價條件有任何變化嗎？競爭對手的能力有任何變化嗎？

Yes. Good question. Haven't really seen much impact on the competition side. In fact, our churn is down year-over-year. Our discount is pretty stable. Our average ARR of customers with greater than 3,000 users, which we track, is approaching $400,000. And as you know, we help customers drive transformation. We drive agility, Zero Trust Access. And once they understand what we do, we rarely lose. So I don't worry about competition. I do want to stay focused on our sales execution. I think as we improve it, we're going to see better and better results.

有。好問題。在競爭面上其實沒有看到太大影響。事實上，我們的客戶流失（churn）年對年下降。我們的折扣水準相當穩定。我們追蹤的指標之一是：使用者數超過 3,000 的客戶，其平均 ARR 正接近 40 萬美元。而如你所知，我們協助客戶推動轉型。我們帶來敏捷性、零信任存取（Zero Trust Access）。一旦他們理解我們在做什麼，我們很少會輸。所以我不擔心競爭。我更希望持續聚焦在我們的銷售執行。我認為隨著我們改善執行力，我們會看到越來越好的成果。

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

我們接下來的問題來自 BTIG 的 Gray Powell。

Great. Maybe a question on your net retention rates. So how should we think about net retention going forward? And I mean, on the one side, you have a lot more customers landing with the Transformation Bundle. But on the other side, you're launching a lot of new products. So just how should we think about that?

很好。我想問一下你們的淨留存率。那麼，未來我們應該如何看待淨留存率？一方面，你們有更多客戶以 Transformation Bundle 開始導入。但另一方面，你們也在推出許多新產品。所以我們應該如何理解這件事？

It's a good question. We've talked about with more transformation part of our ZIA part of our business, customers buy for the entire user base, and so it's more transformation that puts pressure on the net retention rate. Even though it's good for the company, this does put pressure. In addition, if customers buy within the year, because the way we calculate net retention rate is the ARR for that set of customers a year ago versus what that customers have in ARR currently. So as customers buy within the year, that also puts pressure.

這是個好問題。我們談過，隨著我們業務中 ZIA 的轉型（transformation）占比提高，客戶會以整個使用者基礎來採購，因此更多的轉型會對淨留存率造成壓力。即便這對公司是好事，但確實會帶來壓力。此外，如果客戶在一年內購買，因為我們計算淨留存率的方式，是比較一年前那一組客戶的 ARR 與目前該組客戶的 ARR。因此，客戶在一年內的購買行為也會帶來壓力。

Also, basically, the mix between new and upsell. In the quarter, we saw kind of in the mid-range of what we've seen in prior quarters. It's 60% or 50% new, in the quarter, is basically in the mid-range of that. Prior quarter, our net retention rate was 120%, and we called out that, that was basically 50% new. So it's going to vary, and we've talked about that's a metric you should look at, but it's not one that we put a whole lot of importance to.

另外，基本上也取決於新客與加購（upsell）之間的組合。本季我們看到的情況大致落在過去幾季的中間區間。本季約 60% 或 50% 來自新客，基本上是在那個區間的中段。上一季我們的淨留存率是 120%，我們也特別指出那一季大約 50% 來自新客。所以它會波動；我們也談過這是一個你可以觀察的指標，但不是我們非常重視的指標。

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

我們接下來的問題來自 Arete Research 的 Patrick Colville。

Can I just get a clarification on your point just then on the net retention rate? So were you saying that, this quarter, there was 50% revenue contribution from new customers? And last quarter, it was 40%? Was that right?

我想釐清一下你剛才關於淨留存率的說法。所以你的意思是，本季有 50% 的營收貢獻來自新客戶？而上一季是 40%？是這樣嗎？

It was in the mid-range. So it was in the mid -- around 55% was new customers in the quarter. And last quarter, it was 50%.

是在中間區間。也就是說，本季大約 55% 來自新客戶。上一季是 50%。

Got it. Okay. Okay. So slightly higher contribution this quarter from new customers?

了解。好。好。所以本季新客戶的貢獻略高一些？

That's correct.

沒錯。

Got it. And then can I talk just competitively about the dynamics with Netskope? I mean is that someone that you see as competitive? And if not, where is Zscaler stronger?

了解。接著我想從競爭角度談談與 Netskope 的動態。我的意思是，你們是否把他們視為競爭對手？如果不是，Zscaler 的優勢在哪裡？

I mean we have seen some of the press releases they've done, but we hardly see them in the gateway area where they seem to be trying to go. I mean, they are in the CASB side of it, we're seeing them on the CASB side of it, but with our strong integrated platform where we are offering our full CASB that consolidates, that integrates inline and out-of-band, we are in a very strong position. So we don't really see them out there in the market, especially in the market area where we compete in.

我們確實看過他們發布的一些新聞稿，但在他們似乎想切入的閘道（gateway）領域，我們幾乎不太遇到他們。他們在 CASB 這一側，我們在 CASB 這一側會看到他們；但憑藉我們強大的整合式平台，我們提供完整的 CASB，能夠整合並同時支援 inline 與 out-of-band，因此我們處於非常有利的位置。所以我們在市場上其實不太看到他們，尤其是在我們競爭的那個市場領域。

We'll take our next question from Andrew Nowinski with D.A. Davidson.

我們接下來的問題來自 D.A. Davidson 的 Andrew Nowinski。

Maybe just to start with a quick clarification. I know you said you had some attrition in the quarter which was in line with your expectations. So I'm just wondering why you decided to step on the gas on hiring now versus maybe the start of the fiscal year.

先快速釐清一下。我知道你提到本季有一些人員流失（attrition），而且符合你們的預期。所以我想知道，為什麼你們選擇現在加速招聘，而不是在會計年度一開始就這麼做？

From -- it's really -- we've stepped on the gas hiring. So as I mentioned, we have the highest RSM hiring over the last 2 years last quarter. However, having said that, related to getting this management layer in place, the highest probability success that you have in hiring the right RSMs if you have the right leaders in place. So as we go forward with this leadership on board over a relatively short period, we expect to increase RSM hires as we go forward.

從——其實——我們已經在加速招聘了。如我提到的，上季我們在過去兩年中 RSM 的招聘數量是最高的。不過話說回來，與建立這個管理層相關的是：如果你有合適的領導者到位，那麼招聘到合適 RSM 的成功機率會最高。因此，隨著這些領導者在相對短的時間內到位，我們預期接下來會提高 RSM 的招聘數量。

Or, if I may add, yes, we have the largest hire for sales rep in Q2. We expect higher number of hiring in Q3 and Q4 because we have a strong field sales leadership in place.

或者我補充一下，是的，我們在第二季的業務代表（sales rep）招聘規模是最大的。我們預期第三季與第四季的招聘人數會更高，因為我們已經建立了強而有力的前線銷售領導團隊。

Okay. Got it. And then maybe shifting gears, Broadcom, Symantec has made some announcements. They seem to be only focusing on their largest customers. I'm just wondering if you have seen any increase in displacements of Symantec Blue Coat.

好的。了解。接著換個話題，Broadcom、Symantec 做了一些公告。他們似乎只專注於最大的客戶。我想知道你們是否看到 Symantec Blue Coat 被替換（displacements）的情況增加？

So we have seen a lot of additional interest on large enterprises. As you know, Blue Coat has been an enterprise market. They used to have a big presence. The presence is largely in the appliance space. So yes, a lot of interest, and it is helping us. It's a good opportunity for us, and we plan to take full advantage of it.

我們確實看到大型企業客戶的額外興趣大幅增加。如你所知，Blue Coat 一直是企業市場的產品。他們過去有很大的市場存在感。目前的存在感主要是在設備（appliance）領域。所以是的，確實有很多興趣，這也在幫助我們。這對我們是個很好的機會，我們計畫充分把握。

Our next question comes from Brian Essex with Goldman Sachs.

我們接下來的問題來自 Goldman Sachs 的 Brian Essex。

Jay, I was wondering maybe if you could talk a little bit about ZDX and ZB2B. How the progress is, I guess, going on the development front there. And it sounds like maybe the GA date pushed out a quarter. Anything to be concerned about there? Or maybe an update on the progress with the development of those 2 products?

Jay，我想請你談談 ZDX 和 ZB2B。我想了解在開發方面的進展如何。聽起來 GA 日期可能延後了一季。這有什麼需要擔心的嗎？或者能否更新一下這兩個產品的開發進度？

Yes. So, first of all, the GA date of those 2 products hasn't really pushed out. We have just told before that, we will be doing beta testing and we will be ready in the Q4 time frame. So we are actually pretty much on plan. What we have done, what we can report to you is the field engagement or the customer engagement of those 2 products. As you know, they're not just product features. They are product lines per se. So early beta engagement for B2B are very good. That's a new market actually. If you think about who leads this B2B market, nobody really does it. Whether it's ZPA-based architecture, Zero Trust, it's an ideal opportunity for us. So we're seeing tremendous interest from our customer base. That's where we're starting. But there will be some demand creation because people don't even know that this kind of thing exists out there.

好的。首先，這兩個產品的 GA 日期其實沒有真的延後。我們之前只是說過，我們會進行 beta 測試，並在第四季的時間框架內準備就緒。所以我們基本上是按計畫進行。我們能向你回報的是這兩個產品在前線與客戶端的互動（engagement）情況。如你所知，它們不只是產品功能。某種程度上，它們本身就是產品線。因此，B2B 的早期 beta 互動非常好。那其實是一個新市場。如果你想想誰在領導這個 B2B 市場，其實沒有人真正做到。無論是以 ZPA 為基礎的架構、Zero Trust，對我們來說都是理想的機會。所以我們看到客戶基礎對此有極大的興趣。我們會從這裡開始。但也會需要一些需求創造（demand creation），因為人們甚至不知道市場上有這樣的東西存在。

When it comes to ZDX, Zscaler Digital Experience, there's tons of interest and demand from the customers. Because none of the tools that are designed for user experience in the old world work in the new world. We got some very good beta customers going on. And in Q4, we plan to start selling both of those products. So with a fairly good sales cycle in large enterprises, we don't expect a whole lot of contribution in Q4. But we expect it to help us in fiscal '21 and beyond.

至於 ZDX，也就是 Zscaler Digital Experience，客戶端有大量的興趣與需求。因為在舊世界中為使用者體驗所設計的工具，在新世界裡都行不通。我們已經有一些非常好的 beta 客戶在進行中。而在第四季，我們計畫開始銷售這兩個產品。因此，考量大型企業相對較長的銷售週期，我們不預期第四季會有很大的貢獻。但我們預期它會在 2021 會計年度及之後幫助我們。

Got it. Maybe just a follow-up on the launches of those products. Is there any analogy that you can point to, maybe learning -- maybe what you learned with the launch of ZPA? And then now that Dali's on board, how you're prepared to manage contribution from those product cycles as we head into 2021?

了解。也許只是針對那些產品的上市再追問一下。你是否能舉出任何可類比的例子，例如——也許是你們在推出 ZPA 時學到的經驗？以及現在 Dali 加入之後，當我們邁向 2021 年時，你們如何準備好管理這些產品週期所帶來的貢獻？

I think if you look at ZPA was the first major product line introduction, right? In ZIA, we had many modules we launched. Module to me is a firewall. It's not a product line. Module to me is a cloud sandbox. So we have done quite well. We're pleased with how ZPA has come from nothing to a pretty significant contributing factor. For these products, we do have an incubation program. So rather than putting an overlay full sales team in place, we got an incubation team that's actually working with the early-stage customers who learn a sales process and buyers and all those things. So we could do proper training and the like for customers. So we have some good plans in place. We are comfortable. And also, we alluded to the fact that our sales process is meant for portfolio selling complex sales. So I think we'll be able to handle these product lines in our proper sales process.

我想如果你看 ZPA，它是第一個重大的產品線導入，對吧？在 ZIA 裡，我們推出了很多模組。對我來說，模組就是防火牆。它不是一條產品線。對我來說，模組就是雲端沙箱。所以我們做得相當不錯。我們對 ZPA 從無到有、成長為相當重要的貢獻因素感到滿意。針對這些產品，我們確實有一個孵化計畫。因此，我們不是先建立一支完整的覆蓋式銷售團隊，而是由一個孵化團隊實際與早期客戶合作，去學習銷售流程、買方以及所有相關事項。因此我們可以為客戶進行適當的訓練等等。所以我們已經有一些不錯的計畫到位。我們很有信心。另外，我們也提到過，我們的銷售流程是為了產品組合式銷售、複雜型銷售而設計的。所以我認為我們能在既有的正確銷售流程中，妥善處理這些產品線。

We'll take our next question from Walter Pritchard with Citi.

接下來我們請 Citi 的 Walter Pritchard 提問。

The first question, just around the 60% growth in RSMs as you exit the year, how should we think about productivity assumptions and so forth? I mean, given that volume of rep growth would seem like you're setting up for billings or revenue to accelerate as you get that capacity on board, but just want to make sure we're not missing anything in terms of other assumptions that may go into that.

第一個問題，關於你們在年底時 RSM 成長 60% 這件事，我們應該如何看待生產力假設等等？我的意思是，考量到業務代表數量成長這麼多，看起來你們是在為帳單金額或營收加速做準備，因為產能已經到位，但我只是想確認，我們沒有漏掉任何可能影響這個判斷的其他假設。

No, I think you're right on. Basically, with the added RSMs coming on board, again, that adds to our capacity. So it takes about -- they're on full quota after 12 months. That doesn't mean all of our RSMs are at 100% capacity, but that's when they're full quota. So we do expect basically to be positive impact to that in fiscal '21. You're not going to see it that much in fiscal '20 or even very early fiscal '21. But as these RSMs kind of get on board, yes, we expect to see increased productivity. Because of the quality of the people we're bringing on board, because of the enablement that we're doing, because of the leadership, the increased products that we have, the market coming to us, we do expect to increase sales productivity as they get ramped.

沒有，我想你的判斷是對的。基本上，新增的 RSM 加入後，會再次提升我們的產能。大約需要——他們在 12 個月後會達到完整配額（full quota）。這不代表我們所有 RSM 都已達到 100% 產能，但那是他們達到完整配額的時間點。因此我們確實預期在 2021 財年會帶來正面影響。你不會在 2020 財年，甚至 2021 財年非常早期就看到太多效果。但隨著這些 RSM 逐步到位，是的，我們預期會看到生產力提升。因為我們招募進來的人才品質、我們所做的賦能（enablement）、領導力、我們增加的產品，以及市場需求朝我們而來，當他們逐步爬坡（ramp）後，我們確實預期銷售生產力會提升。

Great. And then just as it relates to the expense of those people and what happens before they get productive, what can you tell us about the margin impact? Is it fully -- do we fully see that as we exit this year? Or do you see that take on more of a burden as you go into next year? Just curious, sort of directionally, given that large increase in headcount.

很好。接著，關於這些人員的費用，以及在他們變得有生產力之前會發生什麼，你能談談對毛利率的影響嗎？我們是否在今年結束時就能完全看到這個影響？還是你認為進入明年後，這個負擔會更明顯？只是想從方向性上了解一下，畢竟人頭數增加很大。

Yes, I think you're going to see the bulk of the margin impact this year. Then you're going to see better margins as we go forward in fiscal '21.

是的，我認為你會在今年看到大部分的毛利率影響。接著在 2021 財年往後，你會看到更好的毛利率表現。

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

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

Can you just maybe talk on some of the larger deals in terms of what Dali bring -- in terms of the process, maybe today, cultivating some of those deals versus where we were maybe 6 to 9 months ago? And maybe you could give an example, Jay. Obviously, you're involved in a lot of those.

你能否談談一些較大型的交易——就流程而言，Dali 帶來了什麼？也許是今天在培育這些交易方面，相較於 6 到 9 個月前有何不同？也許你可以舉個例子，Jay。顯然你參與了很多這類交易。

Right. So just to clarify, the deals that we have been closing versus how we are closing? I just want to clarify.

好的。所以我想先釐清一下，你是指我們已經成交的交易，對比我們現在成交的方式嗎？我只是想確認一下。

Yes. Just the larger deals and just the process that Dali brings to the organization versus where you were before he came.

是的。就是大型交易，以及 Dali 帶給組織的流程，相較於他加入之前你們的狀況。

Right. I think the biggest thing we've done, if you look at the sales process, we figured out the sales process several years ago, that it can't be pushed through VARs, it has to be transformational C-level involvement and the like. So the reason we have seen this growth in the past several years is because we have been doing the right process. What we did not have is a proper discipline and structure and enablement to take it to a large-scale level. I had 2 people in my sales enablement team, and I was waiting for a new CRO to come and put that in place. Now we've got over 15 people in place in the sales development. So while we knew the process, the right thing, and we have further refined it, we have further kind of enhanced it to make it repeatable. But the biggest thing we've done is spend time to really make sure our people are enabled properly. That's one biggest thing, which also includes our proper inspection, proper qualifiers. We use something called 3 why's. So there's some better selling methodology behind it, proper questions, proper qualifications and the like. And along with that, the tools we have put in place which gives us visibility. We are measuring many things from engagement level, architectural workshop level. So they are giving us far better visibility in the quality of the pipeline, which helps us do better forecasting.

好的。我認為我們做的最大改變是：如果你看銷售流程，我們幾年前就弄清楚，這不能透過 VAR（加值型經銷商）硬推，必須是轉型式的、需要 C-level 高層參與等等。所以我們過去幾年之所以看到這樣的成長，是因為我們一直在做正確的流程。我們之前缺少的是適當的紀律、架構與賦能（enablement），把它提升到大規模運作的層級。我的銷售賦能團隊只有 2 個人，而我一直在等新的 CRO 來把這些建置起來。現在我們在銷售開發（sales development）方面已經有超過 15 個人到位。所以雖然我們知道流程、知道正確做法，而且我們也進一步精煉它、進一步強化它，讓它可以被重複複製。但我們做的最大事情，是花時間確保我們的人員被正確賦能。這也是最大的重點之一，其中也包含適當的檢視（inspection）、適當的資格審核（qualifiers）。我們使用一個叫做「3 個為什麼（3 why's）」的方法。所以背後有更好的銷售方法論，包括適當的提問、適當的資格判定等等。此外，我們也導入了工具，讓我們能看得更清楚。我們衡量很多指標，從互動參與程度、到架構工作坊（architectural workshop）的層級。因此它們讓我們對管線（pipeline）品質有更好的可視性，進而幫助我們做更好的預測。

So those are the things that are needed to scale our business, and that's what we have been doing and very pleased with the progress. And that's what Dali has brought to the table.

所以這些就是擴大我們業務規模所需要的事情，而這正是我們一直在做的，也對進展感到非常滿意。而這就是 Dali 帶來的價值。

Next question from Fatima Boolani with UBS.

下一題由 UBS 的 Fatima Boolani 提問。

Jay, a question for you. A number of times, you've mentioned that pipeline quality has seen significant improvement in terms of both volume and quality. And I'm wondering if you can elaborate on what you mean by quality. Is this the size of the customer? Is it the size of the engagement? Is it the size of the displacement? Would really appreciate more color on that. And I have a follow-up for Remo.

Jay，我有個問題想問你。你多次提到，管線（pipeline）品質在數量與品質兩方面都有顯著改善。我想請你進一步說明你所說的「品質」是指什麼。是客戶規模嗎？是合作案（engagement）的規模嗎？是替換（displacement）的規模嗎？希望你能提供更多細節。另外我還有一個問題要問 Remo。

Yes. The biggest part of quality we look at is, as we inspect, we are looking for certain attributes. For example, being able to understand all the stakeholders that are involved, being able to make sure engagements are happening. So there are several steps involved that help us give more confidence in the pipeline. For example, having a proper architectural workshops on the networking side and security side is an important piece of it. So being able to do all those things and inspect all those things and get visibility, it gives you better understanding of the quality. So you need both. We need the growth, we need the quality, and we are getting better visibility now. That's what I alluded to. Did I make sense?

是的。我們看「品質」最重要的一部分是：在我們做檢視時，我們會尋找某些特定屬性。例如，能夠了解所有相關的利害關係人、能夠確保互動合作（engagement）確實在發生。因此其中有好幾個步驟，能讓我們對管線更有信心。例如，在網路與資安面向進行適當的架構工作坊（architectural workshops）就是其中一個重要環節。所以，能夠完成所有這些事情、檢視所有這些事情並取得可視性，就能讓你更了解品質。所以兩者都需要。我們需要成長、我們需要品質，而我們現在也獲得更好的可視性。這就是我剛才提到的。我講得清楚嗎？

That's helpful. And, Remo, for you, as I look at the geographical performance, Americas certainly outperformed. And I recall that EMEA had some leadership transitions within the region and also looking at APJ sequential downtick in that theater. But hoping to have you walk us through some of the dynamics, the ex U.S. this quarter. And that's it for me.

這很有幫助。另外，Remo，就地理區域表現來看，美洲的確表現優於其他地區。我記得 EMEA 在該區域內有一些領導層交接，同時也看到 APJ 在該戰區出現環比下滑。但希望你能帶我們梳理一下本季美國以外地區的一些動態。我這邊就到這裡。

Great. Thank you, Fatima. EMEA grew 39% year-over-year. And the leadership changes that we made in EMEA, from my perspective, have been outstanding. The growth that we're seeing in EMEA, the traction, it's really, from my perspective, a great thing to see. APJ grew 56% year-over-year, so APJ has done well. I'll comment on Americas. Americas grew 32% year-over-year. But when you adjust it for nonrecurring onetime revenue last year, Americas grew 40% year-over-year.

好的。謝謝你，Fatima。EMEA 年增 39%。而我們在 EMEA 所做的領導層調整，從我的角度來看，表現非常出色。我們在 EMEA 看到的成長與動能，從我的角度來看，真的很令人欣慰。APJ 年增 56%，所以 APJ 表現不錯。我再評論一下美洲。美洲年增 32%。但若把去年一次性的非經常性收入調整掉，美洲年增為 40%。

We'll take our next question from Melissa Franchi with Morgan Stanley.

我們的下一個問題來自 Morgan Stanley 的 Melissa Franchi。

Great. I wanted to follow-up on the discussion on SD-WAN for you, Jay. So we've seen success with Fortinet selling kind of integrated SD-WAN security appliance in the branch locations. Can you guys both coexist in the branch and be successful? Are you becoming increasingly competitive?

好的。我想就 SD-WAN 的討論再追問一下你，Jay。我們看到 Fortinet 在分支據點銷售某種整合式的 SD-WAN 安全設備方面取得成功。你們兩者能否在分支端共存並且都能成功？你們是否正變得越來越具競爭性？

Good question. We have done a few deals where Fortinet SD-WAN devices are actually sending traffic to us. So typically, when there's a large enterprise that's security-savvy, that's what we engage with. We don't see a whole lot of SD-WAN guys doing security that's why the example I gave you. But there may be some low-end systems where the customer is okay with a good enough security that's built in the SD-WAN. But in our enterprise space, we are rarely seeing somebody that says, I am okay with the SD-WAN security. So we end up existing with SD-WAN. So I look at SD-WANs as our partners and friends. And as I commented earlier, in the enterprise space, 3 vendors are taking a big lion's share: Cisco, VMware and Silver Peak. And if you look at the Magic Quadrant leadership from Gartner, VMware and Silver Peak are in Gartner's Magic Quadrant. So I look at them as a complementary friendship. There's always some overlap from time to time, but we work closely with them.

好問題。我們做過幾筆交易，Fortinet 的 SD-WAN 裝置實際上把流量送到我們這裡。所以通常當有大型企業且對資安很有概念時，我們就會與這類客戶互動。我們不太看到很多 SD-WAN 廠商在做資安，這也是我給你那個例子的原因。但在某些低階系統上，客戶可能可以接受 SD-WAN 內建的「夠用」安全性。但在我們的企業市場中，我們很少看到有人說：我可以接受 SD-WAN 的安全性就好。所以我們最後會與 SD-WAN 共存。因此我把 SD-WAN 視為我們的合作夥伴與朋友。如我先前提到，在企業市場，三家供應商拿走了很大一部分市占：Cisco、VMware 和 Silver Peak。而如果你看 Gartner 的魔力象限（Magic Quadrant）領導者，VMware 和 Silver Peak 都在 Gartner 的魔力象限中。所以我把他們視為互補的夥伴關係。偶爾會有一些重疊，但我們與他們密切合作。

Okay. That makes sense. And then I have a follow-up for Remo. Wondering if you can comment on whether you saw any changes in the sales cycles. On one hand, it sounds like you continue to sell more transformational deals, which I think would probably take a little bit longer to close. But on the other hand, you've made some changes to sales enablement and refining the sales process. And so how did that shake out in terms of sales cycle this quarter?

好的。這樣就說得通。接著我有一個問題想追問 Remo。想請你評論一下，你們是否看到銷售週期有任何變化。一方面，聽起來你們持續賣出更多轉型型（transformational）的交易，我想這可能需要更長時間才能成交。但另一方面，你們也對銷售賦能（sales enablement）做了一些調整並精煉銷售流程。那麼本季在銷售週期方面，最終呈現出什麼結果？

Yes. Good question. Over time, we expect to see a shortening of sales cycles. But currently, I'd say they're about the same. It's 3 to 6 months for smaller accounts; larger accounts, 6 to 12 months. So really not much change.

是的。好問題。隨著時間推進，我們預期會看到銷售週期縮短。但目前我會說大致相同。小型客戶為 3 到 6 個月；大型客戶為 6 到 12 個月。所以其實沒有太大變化。

We'll take our last question from Yun Kim with Rosenblatt Securities.

我們將進行最後一個問題，來自 Rosenblatt Securities 的 Yun Kim。

So going back to Dan's earlier question on large deals. Any specific trends that you're seeing that point to improvement in large deal execution? For instance, for large deals, is sales cycle improving or closure rate improving? Just trying to better understand what metrics that you are seeing that kind of points to improvement in large deal execution. And real quick also, in terms of sales hiring, are you comfortable with the number of sales folks that you have and the talent that you have today around those large deal opportunities? Or is this an area that you also need to ramp?

回到 Dan 先前關於大型交易的問題。你們是否看到任何具體趨勢，顯示大型交易的執行有所改善？例如，對於大型交易，銷售週期是否改善，或成交率是否提升？我只是想更好地理解，你們看到哪些指標能夠指向大型交易執行的改善。另外很快問一下，就銷售招募而言，你們對目前擁有的銷售人員數量，以及在這些大型交易機會上的人才配置是否感到滿意？還是這也是你們需要加速擴編的領域？

Right. So I'll take that question. So large deals. We dominate the large deals, we do very well. Actually, one of the things I noticed -- in fact, you may have noticed, as you saw, as you heard the script, there are a number of deals where ZPA and ZIA has been bought together in large deals, or like that. The story -- the part of evangelism we had to do early on is becoming less. Our leadership is becoming clearly stronger and stronger. And the more customers with CIOs and CSOs are moving from one company into the other company, and they're calling us. So I believe our execution in large deals is getting good. The other thing that's going to help our execution in large deals is large deals have complex sales cycle, there are lots of stakeholders, and our enablement process is actually helping us do a better job. So I feel more confident in our ability to handle larger deals now.

好的。那我來回答這個問題。關於大型交易。我們在大型交易上具主導地位，表現非常好。其實我注意到的一件事——事實上你可能也注意到了，從你看到、聽到的講稿來看，有不少交易是 ZPA 和 ZIA 在大型交易中一起被採購，或類似的情況。我們早期需要做的那部分宣導（evangelism）正在變少。我們的領導地位正變得愈來愈明顯、愈來愈強。而且越來越多客戶的 CIO 與 CSO 從一家公司轉到另一家公司時，會主動打電話找我們。所以我相信我們在大型交易的執行正在變得更好。另外一點會幫助我們提升大型交易執行的是：大型交易的銷售週期很複雜，利害關係人很多，而我們的賦能流程確實在幫助我們把工作做得更好。所以我對我們現在處理更大型交易的能力更有信心。

Your related question on reps for large versus small, I think we are hiring across the board. We have quite a few very good sales reps who are handling these large deals. We call them major account managers. But we are trying to add more because there's a big market opportunity, and we need to properly cover it.

至於你相關的問題：大型與小型客戶的業務代表配置，我認為我們正在全面招募。我們有不少非常優秀的業務代表在處理這些大型交易。我們稱他們為重大客戶經理（major account managers）。但我們也希望再增加更多，因為市場機會很大，我們需要妥善覆蓋。

Thank you. This concludes today's question-and-answer session. At this time, I would like to turn the call over to Jay Chaudhry for closing remarks.

謝謝。以上為今天的問答環節。現在我想把電話交回給 Jay Chaudhry 作結語。

Thank you. Thank you for your continued interest in Zscaler. Hope to see you at the upcoming conferences. Goodbye.

謝謝。感謝各位持續關注 Zscaler。希望在接下來的各場會議上與各位見面。再見。

Great. Thank you.

好的。謝謝。

Thank you, ladies and gentlemen. This concludes today's teleconference. You may now disconnect.

謝謝各位女士、先生。今天的電話會議到此結束。您現在可以掛線。