Zscaler, Inc. (ZS) 2020 Q1 法說會逐字稿

Good day, and welcome to the Zscaler's First Quarter 2020 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Bill Choi. Sir, please begin.

大家好，歡迎參加 Zscaler 2020 會計年度第一季財報電話會議。今天的會議將進行錄音。此刻，我想將會議交給 Bill Choi 先生。先生，請開始。

Good afternoon, and welcome to the Zscaler First 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.

各位下午好，歡迎參加 Zscaler 2020 會計年度第一季財報電話會議。今天與我一同出席的有董事長暨執行長 Jay Chaudhry，以及財務長 Remo Canessa。目前各位應已可取得我們的財報新聞稿，可於我們網站的投資人關係專區找到。此外，亦可至 ir.zscaler.com 下載補充財務明細表。

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 the 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.

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 財務衡量指標之調節表。就歷史期間而言，GAAP 與非 GAAP 的調節亦可在稍早提及的補充財務資訊中查閱。

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

提醒各位，我們在今天的討論中將作出前瞻性陳述，包括但不限於公司對未來營收、計算後帳單金額（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、所得稅以及每股盈餘的預期。這些陳述及其他評論並非對未來表現的保證，而是受到風險與不確定性影響，其中部分超出我們的控制範圍。我們的實際結果可能與任何前瞻性陳述中所預測或暗示者有重大差異。這些前瞻性陳述僅適用於今日，您不應將其視為我們未來觀點的代表。本公司不承擔在本次電話會議後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. Next week, management will be at the UBS Global TMT Conference and Cowen's Networking & Cybersecurity Summit in New York City, and also, the Barclays TMT Conference in San Francisco. On January 14, we will be at Needham's Growth Conference in New York.

我也想告知各位，我們將參與數場即將舉行的投資人會議。下週，管理團隊將出席在紐約市舉行的 UBS 全球 TMT 大會與 Cowen Networking & Cybersecurity Summit，並也將出席在舊金山舉行的 Barclays TMT 大會。1 月 14 日，我們將出席在紐約舉行的 Needham 成長型企業大會。

Now I'll turn the call over to Jay.

現在我把電話交給 Jay。

Thank you, Bill, and thank you, everyone, for joining us. We reported solid Q1 results, delivering strong revenue and operating profit growth in the first quarter with positive free cash flow while making strategic investments to scale our go-to-market machine to the next level. Our revenue grew 48%, and billings grew 37% year-over-year in Q1. And we are increasing our outlook for revenue and billings for the full fiscal year 2020. Adoption of the ZIA transmission bundle continues to grow, and ZPA remains our fastest-growing product. I'm thrilled that more customers are using ZIA and ZPA together, which provides a single platform for secure cloud transformation that we believe no other vendor can match.

謝謝你，Bill，也謝謝各位加入我們。我們公布了穩健的第一季成果：在第一季實現強勁的營收與營業利益成長，並帶來正向自由現金流，同時也進行策略性投資，將我們的市場推進（go-to-market）引擎擴展到下一個層級。第一季營收年增 48%，帳單金額（billings）年增 37%。我們也上調 2020 會計年度全年營收與帳單金額的展望。ZIA Transformation Bundle 的採用持續成長，而 ZPA 仍是我們成長最快的產品。我很高興看到更多客戶同時使用 ZIA 與 ZPA，這提供了一個用於安全雲端轉型的單一平台，我們相信沒有其他供應商能與之匹敵。

As you know, Dali Rajic joined this September as a President Go-To-Market and Chief Revenue Officer. I'm excited about the key initiatives our sales leadership is putting in place to position us well for the long term. At our recent Zenith Live Cloud Summit, I was pleased to hear CIOs, CTOs and CSOs of Global 2000 enterprises sharing with pride their cloud transformation journeys, enabled by Zscaler, that delivered lower costs, improved security and provided fast and reliable user experience. I'm very proud that Gartner recently recognized Zscaler as a leader in the Secure Web Gateway Magic Quadrant for the ninth year in a row. More importantly, Zscaler is positioned the highest for both execution and vision, significantly separating us from the competition.

如各位所知，Dali Rajic 於今年 9 月加入，擔任市場推進總裁（President, Go-To-Market）暨營收長（Chief Revenue Officer）。我對我們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發展上具備良好定位。在近期的 Zenith Live Cloud Summit 上，我很高興聽到全球 2000 大企業的 CIO、CTO 與 CSO 自豪地分享其在 Zscaler 支持下的雲端轉型歷程，帶來更低成本、更佳安全性，以及快速且可靠的使用者體驗。我也非常自豪 Gartner 近期連續第九年將 Zscaler 評為 Secure Web Gateway 魔力象限的領導者。更重要的是，Zscaler 在「執行能力」與「願景完整性」兩項指標上皆位居最高，明顯拉開與競爭對手的差距。

We pioneered the cloud-native integrated security platform. And our cloud service is trusted by over 3,900 customers, including over 400 of the Forbes Global 2000 to access applications, no matter where they live. The Zscaler cloud processes over 80 billion transactions per day, which is over 10x the number of Google searches per day. This provides an unprecedented network effect, which allows us to deliver superior security to our customers. We are aggressively investing in our business to pursue a massive opportunity to disrupt traditional network security, which mostly relies on legacy security appliances.

我們開創了雲端原生的整合式安全平台。我們的雲端服務獲得超過 3,900 家客戶信賴，其中包括超過 400 家《富比士》全球 2000 大企業，用以存取應用程式，不論這些應用程式部署於何處。Zscaler 雲端每日處理超過 800 億筆交易，超過 Google 每日搜尋量的 10 倍。這帶來前所未有的網路效應，使我們能為客戶提供更卓越的安全防護。我們正積極投資業務，以掌握顛覆傳統網路安全的龐大機會；傳統網路安全多仰賴舊式的安全設備（appliances）。

Let me now highlight a few wins in Q1 that showcase what we believe are our sustainable competitive advantages. I will start with an upsell that highlights the scalability and elasticity of our cloud. This Fortune 100 customer purchased our professional bundle for all 40,000 employees 3 years ago. In Q1, they tripled their annual business with us by upgrading to Business Bundle, adding additional users and purchasing protection for server traffic going from the data center to the public cloud. They deployed local Internet breakouts at over 1,000 locations. During their cloud journey, including rolling out Office 365, their Internet traffic increased exponentially, reaching 1.2 petabytes per month, which is equal to 10 billion photos in Facebook. And their IT leaders praised the elasticity of the Zscaler cloud when a company-wide video conference call by the CEO went flawlessly, even though the network traffic doubled during the event. How would a single tenant security cloud possibly handle this?

接下來我將重點分享第一季的幾個贏單案例，展現我們所認為可持續的競爭優勢。我先從一個加購（upsell）案例談起，該案例突顯我們雲端的可擴展性與彈性。這家《財富》100 大客戶在 3 年前為其 40,000 名員工購買了我們的 Professional Bundle。在第一季，他們升級至 Business Bundle、增加額外使用者，並購買從資料中心到公有雲之伺服器流量防護，使其與我們的年度業務規模成長至原來的三倍。他們在超過 1,000 個據點部署了本地網際網路分流（local Internet breakouts）。在其雲端旅程中（包括導入 Office 365），其網際網路流量呈指數型成長，達到每月 1.2 PB，相當於 Facebook 上 100 億張照片。其 IT 領導團隊稱讚 Zscaler 雲端的彈性：當執行長發起全公司視訊會議時，即使活動期間網路流量倍增，會議仍順暢無礙。單一租戶（single tenant）的安全雲怎麼可能處理得了這種情況？

Now I will share a new logo win of a Fortune 100 customer that needed to up-level their security. Unlike most large enterprises, they had no proxy gateways and instead relied upon next-gen firewalls for the user traffic to the Internet. No wonder they had a high-risk posture. They purchased ZIA Transformation bundle for all 14,000 employees. With Zscaler, they can detect and prevent advanced threats and zero-day attacks, which are increasingly found in encrypted traffic. This results in better security.

接著我將分享一個《財富》100 大客戶的新客戶（new logo）贏單案例，該客戶需要提升其安全等級。不同於多數大型企業，他們沒有代理閘道（proxy gateways），而是仰賴次世代防火牆來處理使用者對網際網路的流量。難怪他們的風險態勢很高。他們為全部 14,000 名員工購買了 ZIA Transformation Bundle。透過 Zscaler，他們能偵測並防止進階威脅與零時差攻擊（zero-day attacks），而這些攻擊越來越常出現在加密流量中。這帶來更好的安全性。

Next, I will highlight the win that illustrates benefits of our edge cloud capabilities and enables faster M&A integration. A top global healthcare company that bought our Business Bundle and Cloud Firewall for 30,000 employees, 18 months ago, purchased an additional 30,000 seats to integrate a recent acquisition. The 2 companies have a combined global presence with hundreds of locations across 70 countries. Each company had embarked on a network transformation journey for local Internet breakouts, but with 2 very different approaches to security. The acquired company was a next-gen firewall shop with scores of firewalls deployed in branch offices, giving a false sense of security as 95% of their web traffic is encrypted and was not being inspected. To integrate the 2 companies, they standardized on Zscaler, implemented SSL inspection and are ripping out all the branch firewalls. The result, significant savings and a big improvement in their security posture.

接下來我將重點說明一個贏單案例，該案例展現我們邊緣雲能力的效益，並能加速併購（M&A）整合。一家全球頂尖醫療保健公司在 18 個月前為其 30,000 名員工購買了我們的 Business Bundle 與 Cloud Firewall，近期為整合最新收購案又額外購買了 30,000 個席位。兩家公司合計在全球 70 個國家擁有數百個據點。兩家公司都已展開本地網際網路分流的網路轉型旅程，但在安全作法上採取了兩種截然不同的方式。被收購公司以次世代防火牆為主，在分支機構部署了大量防火牆；然而其 95% 的網頁流量為加密流量且未被檢查，因而產生一種錯誤的安全感。為整合兩家公司，他們統一採用 Zscaler、導入 SSL 檢查，並正逐步汰除所有分支防火牆。結果是大幅節省成本，並顯著改善其安全態勢。

Next, I would like to share considerable momentum we are building in the U.S. federal market. Last year, ZIA and ZPA received FedRAMP certification at the Moderate level. And last month, ZPA reached FedRAMP readiness at the High Impact level, which puts Zscaler in an elite group of technology companies. ZIA is the only FedRAMP-certified secure cloud Internet gateway today. ZPA is the first and only cloud security service that has received FedRAMP certification for Zero Trust Remote Access. This positions us very well in this large market.

接下來，我想分享我們在美國聯邦市場正在建立的強勁動能。去年，ZIA 與 ZPA 取得 FedRAMP「中等」等級認證。而在上個月，ZPA 達到 FedRAMP「高影響」等級的就緒狀態，使 Zscaler 躋身菁英科技公司之列。ZIA 是目前唯一通過 FedRAMP 認證的安全雲端網際網路閘道。ZPA 是第一個且唯一獲得 FedRAMP「零信任遠端存取」認證的雲端安全服務。這讓我們在這個龐大市場中具備非常有利的定位。

In Q1, we won 2 deals with civilian agencies, each with an annual contract value greater than $0.5 million. The first win is with a large strategic agency with an initial order for ZIA and ZPA for 15,000 mobile users to deliver secure access to applications with Zero Trust Network Access. The second agency purchased the complete ZIA and ZPA platform for all 6,800 employees to enable cloud transformation to secure SD-WAN deployment for local breakouts and to provide direct access to any application from anywhere.

在第一季，我們與民用機構拿下 2 筆交易，每筆年度合約價值均超過 50 萬美元。第一筆勝出來自一家大型策略性機構，初始訂單採購 ZIA 與 ZPA，為 15,000 名行動使用者提供以零信任網路存取（ZTNA）實現的應用程式安全存取。第二家機構為其全部 6,800 名員工採購完整的 ZIA 與 ZPA 平台，以推動雲端轉型、確保 SD-WAN 部署的本地分流（local breakouts）安全，並提供隨時隨地對任何應用程式的直接存取。

Turning to Japan. We entered this large market only 2 years ago, but have been gaining great traction. In Q1, one of Japan's largest transportation companies purchased our ZIA Business Bundle and Cloud Sandbox for all 30,000 employees to secure local breakouts and increase security for all users. Non-proxy technologies such as next-gen firewalls were not considered since comprehensive security was important.

接著談日本。我們僅在 2 年前才進入這個龐大市場，但已取得很好的進展。在第一季，日本最大的運輸公司之一為其全部 30,000 名員工採購我們的 ZIA Business Bundle 與 Cloud Sandbox，以確保本地分流安全並提升所有使用者的安全性。由於全面性的安全防護至關重要，因此未考慮次世代防火牆等非代理（non-proxy）技術。

A common theme of all these wins is that a cloud-first world requires a cloud-native architecture. In a recent groundbreaking research note, Gartner defined a new product category named Secure Access Service Edge or SASE, pronounced SASSY. Gartner predicts that the future of network security is in the cloud and most organizations will move their network security to a SASE model. Importantly, Gartner recommends reducing the complexity of network security by moving to 1 vendor for Secure Web Gateway, CASB, DNS, Zero Trust Network Access and remote browser isolation capabilities. This is Zscaler. We strongly believe this validates our vision when we founded Zscaler over 10 years ago.

這些勝出的共同主題是：雲端優先的世界需要雲端原生架構。在近期一份具突破性的研究報告中，Gartner 定義了一個新的產品類別，稱為安全存取服務邊緣（Secure Access Service Edge，SASE），發音為 SASSY。Gartner 預測，網路安全的未來在雲端，多數組織將把其網路安全移轉至 SASE 模式。重要的是，Gartner 建議透過採用單一供應商來降低網路安全的複雜度，以涵蓋安全網頁閘道（SWG）、CASB、DNS、零信任網路存取（ZTNA）以及遠端瀏覽器隔離等能力。這正是 Zscaler。我們堅信，這驗證了我們在 10 多年前創立 Zscaler 時的願景。

Here are the core architectural principles Gartner has outlined for SASE. Number one, SASE demands that the security providers offer security at the cloud edge - close to the user for good user experience. Zscaler provides in-line security at the cloud edge in more than 150 data centers around the world. In contrast, legacy security vendors claiming to offer a SASE service are spinning up virtual machines on public clouds with traffic backhauled to a centralized compute. That is not security at the edge. That is not SASE.

以下是 Gartner 為 SASE 概述的核心架構原則。第一，SASE 要求安全供應商在雲端邊緣提供安全防護——靠近使用者，以帶來良好的使用者體驗。Zscaler 在全球超過 150 個資料中心的雲端邊緣提供串流式（in-line）安全防護。相較之下，宣稱提供 SASE 服務的傳統安全供應商，往往是在公有雲上啟動虛擬機，並將流量回傳（backhaul）至集中式運算資源。那不是邊緣安全。那不是 SASE。

Number two, SASE recommends that a branch office should have a light footprint with simply an SD-WAN router and all security services in the cloud. While the Zscaler cloud is a light branch architecture, the legacy firewall vendors are peddling heavy branch appliances. Again, that is not SASE.

第二，SASE 建議分支辦公室應採用輕量化部署，只需一台 SD-WAN 路由器，並將所有安全服務放在雲端。Zscaler 雲端屬於輕量分支架構，而傳統防火牆供應商則在兜售笨重的分支設備。同樣地，那不是 SASE。

Number three, Gartner specifically says, "Many of the SASE capabilities will use a proxy model", because a proxy is required to inspect encrypted traffic. Zscaler meets this requirement, while next-gen firewalls don't. Hence, next-gen firewalls are not SASE.

第三，Gartner 明確指出：「許多 SASE 能力將採用代理（proxy）模型」，因為需要代理才能檢查加密流量。Zscaler 符合此要求，而次世代防火牆則不符合。因此，次世代防火牆不是 SASE。

Number four, lastly, SASE advocates a cloud-native multi-tenant architecture, which is the foundation of the Zscaler cloud platform. You can't take legacy single tenant security appliances and stick them in the cloud as virtual machines and call it cloud security. That would be like placing thousands of DVD players in a public cloud and calling it a Netflix streaming service.

第四，也是最後一點，SASE 主張雲端原生的多租戶架構，而這正是 Zscaler 雲端平台的基礎。你不能把傳統的單租戶安全設備以虛擬機形式搬到雲端，就稱之為雲端安全。那就像把成千上萬台 DVD 播放器放到公有雲裡，然後稱其為 Netflix 串流服務一樣。

In summary, Zscaler was designed for the SASE world that Gartner has spelled out.

總結來說，Zscaler 的設計就是為了 Gartner 所描繪的 SASE 世界。

Some of you have asked questions about competition from next-gen firewall vendors. Over the last 10 years, we have faced various competitors, starting with large legacy Secure Web Gateway vendors who claim to offer a cloud security service. Where are they today? As security must move the cloud, legacy firewall vendors are now making similar noise. Next-gen firewalls are designed to build a moat around the castle - to secure the network and the data center, they are the wrong architecture for securing users.

你們當中有些人詢問了關於來自次世代防火牆供應商的競爭問題。在過去 10 年裡，我們面對過各式各樣的競爭者，起初是大型傳統安全網頁閘道供應商，他們宣稱提供雲端安全服務。他們如今在哪裡？隨著安全必須移往雲端，傳統防火牆供應商現在也在發出類似的聲量。次世代防火牆的設計是為城堡築起護城河——用來保護網路與資料中心；但要保護使用者，它們的架構並不適合。

The next question is, why can't they build a platform like Zscaler? Well, the answer lies in the architecture. Architecture is like the foundation of a building. You can't change the foundation unless you start all over, which is hard and takes a long time. We know that startups like Salesforce and Workday competed and won against much larger on-premise incumbent vendors because of the cloud-native architecture. We believe we are doing the same in the network security space.

下一個問題是，為什麼他們不能打造像 Zscaler 這樣的平台？答案在於架構。架構就像建築物的地基。除非從頭開始，否則你無法改變地基；而這很困難且需要很長時間。我們知道，像 Salesforce 與 Workday 這樣的新創公司，正是憑藉雲端原生架構，與規模更大的本地部署既有供應商競爭並勝出。我們相信，我們在網路安全領域也正在做同樣的事。

Let me talk about our products. I will highlight a few innovations that are expanding our platform. Zscaler B2B and Zscaler Digital Experience or ZDX, the 2 major product lines we announced at Zenith Live, are getting great initial feedback from our customers. The out-of-band CASB that we announced at Zenith Live is receiving very good early reception. Combined with our existing in-line CASB capabilities, we will now offer a complete CASB solution. The integration of browser isolation technology we acquired through Appsulate is ahead of plan and is already being tested by customers. Building upon the TrustPath acquisition we did last year, we have significantly enhanced our threat detection capabilities with machine learning and AI.

我來談談我們的產品。我將重點介紹幾項正在擴展我們平台的創新。我們在 Zenith Live 發表的兩大產品線——Zscaler B2B 與 Zscaler Digital Experience（ZDX）——已從客戶那裡獲得非常好的初期回饋。我們在 Zenith Live 發表的帶外（out-of-band）CASB 也在早期獲得非常正面的反應。結合我們既有的串流式（in-line）CASB 能力，我們現在將提供完整的 CASB 解決方案。我們透過收購 Appsulate 取得的瀏覽器隔離技術整合進度超前，且已開始由客戶測試。在去年完成 TrustPath 收購的基礎上，我們運用機器學習與 AI 大幅強化了威脅偵測能力。

Moving on to tech partnerships. To complement our comprehensive platform, we believe in partnering with tech leaders. This provides an integrated solution for customers and creates go-to-market leverage for Zscaler. For example, we have a deep and wide partnership with Microsoft Office 365 and Azure public cloud. Microsoft named Zscaler the first and only cloud security provider to be a certified partner in the Microsoft Networking Partner Program or NPP for Office 365, which has stringent requirements for user performance. Microsoft only recommends NPP partners for Office 365 connectivity. We are working closely with both VMware and Silver Peak, the only 2 leaders in Gartner's recently published SD-WAN Magic Quadrant.

接著談技術合作夥伴關係。為了補強我們的完整平台，我們相信與技術領導者合作。這能為客戶提供整合式解決方案，並為 Zscaler 創造市場推廣（go-to-market）的槓桿效益。例如，我們與 Microsoft Office 365 及 Azure 公有雲建立了深度且廣泛的合作夥伴關係。Microsoft 將 Zscaler 指定為 Microsoft Networking Partner Program（NPP）中 Office 365 的第一且唯一認證雲端安全供應商；該計畫對使用者效能有嚴格要求。Microsoft 只建議使用 NPP 夥伴進行 Office 365 連線。我們也正與 VMware 與 Silver Peak 緊密合作；它們是 Gartner 近期發布的 SD-WAN 魔力象限中僅有的兩家領導者。

Let's now turn to our go-to-market. Zscaler is an enabler of cloud transformation. As a result, we have a different top-down sales process and go-to-market strategy than legacy vendors. As I stated during the last earnings call, we are focused on improving our sales execution to take Zscaler beyond $1 billion in revenue. That is why I'm excited to have Dali on board as he's building a highly scalable go-to-market machine. He has already driven rapid and tangible progress, building a multi-dimensional go-to-market model, putting us into a great position to scale.

現在讓我們轉向我們的市場推廣（go-to-market）。Zscaler 是雲端轉型的推動者。因此，相較於傳統供應商，我們採用不同的由上而下銷售流程與市場推廣策略。正如我在上次財報電話會議中所說，我們專注於提升銷售執行力，推動 Zscaler 營收突破 10 億美元。這也是為什麼我很高興 Dali 加入，因為他正在打造一個高度可擴展的市場推廣機器。他已經推動快速且具體的進展，建立多維度的市場推廣模型，讓我們處於極佳位置以擴大規模。

Let me give you a few examples. We implemented a more refined metrics-based model of accountability and transparency, giving us better visibility into how our business is run. We are ahead of our plan to build a new sales process and enablement program that will deliver consistent and high-level execution in the field. It is already having a meaningful impact in our day-to-day execution, and we continue to mature our sales leadership structure.

讓我舉幾個例子。我們導入了更精細、以指標為基礎的問責與透明度模型，使我們能更清楚掌握公司業務的運作方式。我們在建立新的銷售流程與賦能計畫方面進度超前，該計畫將在前線帶來一致且高水準的執行。它已經對我們日常執行產生了實質影響，我們也持續完善銷售領導架構。

With all that we have implemented in a very short time, I'm very pleased with our progress and confident that we are building a solid foundation for a highly scalable sales machine for our long-term growth.

在如此短的時間內完成這麼多落地措施，我對我們的進展非常滿意，並有信心我們正在為長期成長打造一個高度可擴展的銷售引擎之堅實基礎。

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，請他說明我們的財務結果。

Thank you, Jay. Revenue for the quarter was $93.6 million, up 9% sequentially and 48% year-over-year. From a geographic perspective for the quarter, Americas represented 51% of revenue, EMEA was 41%, and APJ was 8%.

謝謝你，Jay。本季營收為 9,360 萬美元，較前一季成長 9%，較去年同期成長 48%。就本季地區別而言，美洲占營收 51%，EMEA 占 41%，APJ 占 8%。

Turning to calculated billings, which we define as the change in deferred revenue for the quarter plus total revenue recognized in that quarter. Billings grew 37% year-over-year to $88.3 million. 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 $555 million on October 31, up 35% from $411 million 1 year ago.

接著談計算後帳單金額（calculated billings），我們將其定義為本季遞延收入的變動加上本季認列的總營收。帳單金額較去年同期成長 37% 至 8,830 萬美元。提醒一下，我們的合約期限通常為 1 至 3 年，且主要採客戶預先 1 年開立發票。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 10 月 31 日為 5.55 億美元，較一年前的 4.11 億美元成長 35%。

Our strong customer retention and ability to upsell have resulted in a consistently high dollar-based net retention rate, which is 120% for the quarter ended October 31. This compares to 118% a year ago and last quarter. Our increased success selling bigger deals starting immediately with our Transformation Bundle and faster upsells within a year, while good for business, can reduce our dollar-based net retention rate, which is calculated on a year-over-year ARR basis. Considering these factors, we feel 120% is outstanding, and it will vary quarter-to-quarter.

我們強勁的客戶留存與加購（upsell）能力，使以金額計的淨留存率長期維持在高水準；截至 10 月 31 日止本季為 120%。相較之下，一年前與上一季皆為 118%。我們在銷售更大規模交易方面的成功（從 Transformation Bundle 立即開始），以及在一年內更快速的加購，雖然對業務有利，但可能會降低以金額計的淨留存率，因其是以年對年 ARR 為基礎計算。綜合考量這些因素，我們認為 120% 表現非常出色，且該數值將隨季度而波動。

We are pleased with the continued adoption of our comprehensive cloud platform by our customers as they increasingly rely on us for their transformation journey. In fact, 2/3 of our top 25 customers were also customers 2 years ago, and their cumulative ARR has more than doubled over this period.

我們很高興看到客戶持續採用我們的整合式雲端平台，因為他們在轉型旅程中愈來愈依賴我們。事實上，我們前 25 大客戶中有 2/3 也是兩年前的客戶，而他們在此期間的累計 ARR 已超過翻倍。

Total gross margin was 81%, flat sequentially and down 1% 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 81%，較前一季持平，較去年同期下降 1 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. Our total operating expenses increased 17% sequentially and increased 44% year-over-year to $72.7 million, but decreased as a percentage of revenue to 78% compared to 80% last year.

接著談營業費用。我們的總營業費用較前一季增加 17%，較去年同期增加 44% 至 7,270 萬美元，但占營收比重降至 78%，去年為 80%。

Sales and marketing increased 20% sequentially and 46% year-over-year to $49.4 million. The year-over-year increase is due to higher compensation expenses and the cost of 3 major marketing events, Zenith Live Americas, Zenith Live Europe and our sales kickoff.

銷售與行銷費用較前一季增加 20%，較去年同期增加 46% 至 4,940 萬美元。年對年增加主要來自較高的薪酬費用，以及 3 場大型行銷活動的成本：Zenith Live Americas、Zenith Live Europe，以及我們的銷售啟動大會。

R&D was up 12% sequentially and 44% year-over-year to $14.8 million as we continue to invest to enhance our product functionality and innovate new products.

研發費用較前一季增加 12%，較去年同期增加 44% 至 1,480 萬美元，因我們持續投資以強化產品功能並創新推出新產品。

G&A increased 6% sequentially and increased 32% year-over-year to $8.5 million. The year-over-year growth in G&A includes investments in building our teams. These expenses exclude $2 million in litigation-related expenses.

一般與行政（G&A）費用較前一季增加 6%，較去年同期增加 32% 至 850 萬美元。G&A 的年對年成長包含我們在團隊建置上的投資。上述費用不包含 200 萬美元的訴訟相關費用。

Our first quarter operating margin was 3%, which compares to 2% in the same quarter last year. Net income in the quarter was $4.1 million or non-GAAP earnings per share of $0.03.

第一季營業利益率為 3%，相較去年同期為 2%。本季淨利為 410 萬美元，或非 GAAP 每股盈餘 0.03 美元。

We ended the quarter with $378 million in cash, cash equivalents and short-term investments. Free cash flow was positive $9.4 million in the quarter compared to positive $5.2 million for the same quarter a year ago. Our ESPP program increased our free cash flow by approximately $3 million in the quarter, same as a year ago. The ESPP program does not impact overall cash balance.

本季結束時，我們持有的現金、約當現金及短期投資為 3.78 億美元。本季自由現金流為正 940 萬美元，去年同期為正 520 萬美元。本季員工股票購買計畫（ESPP）使自由現金流增加約 300 萬美元，與一年前相同。ESPP 計畫不影響整體現金餘額。

Now moving on to guidance. As a reminder, these numbers are all non-GAAP, which excludes stock-based compensation expenses, amortization of intangible assets, certain litigation-related expenses and any associated tax effects. For the second quarter, we expect revenue in the range of $97 million to $100 million, reflecting the year-over-year growth of 31% to 35%. For the year-ago comparison, recall the Q2 2019, 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, guidance reflects 35% to 39% growth. Operating profit in the range of $3 million to $4 million; income taxes of $900,000; and earnings per share of approximately $0.03, assuming 138 million common shares outstanding.

接下來談財測指引。提醒一下，以下數字皆為非 GAAP，排除股票基礎薪酬費用、無形資產攤銷、特定訴訟相關費用及任何相關稅務影響。第二季我們預期營收介於 9,700 萬至 1 億美元，對應年對年成長 31% 至 35%。就去年同期比較而言，請回想 2019 年第二季的營收曾受一筆 230 萬美元的非經常性收入挹注，來自一位大型公部門客戶以私有雲部署我們的平台。若排除去年該筆收入，本次指引反映 35% 至 39% 的成長。營業利益預期介於 300 萬至 400 萬美元；所得稅 90 萬美元；每股盈餘約 0.03 美元，假設流通在外普通股為 1.38 億股。

For the full year fiscal 2020, we expect revenue in the range of $405 million to $413 million or year-over-year growth of 34% to 36%. Calculated billings in the range of $500 million to $510 million or year-over-year growth of 28% to 31%. Operating profit in the range of $15 million to $18 million. In Q4, we expect to host our annual Zenith Live events 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 $3.6 million; and earnings per share in the range of $0.13 to $0.15, 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 4.05 億至 4.13 億美元，年對年成長 34% 至 36%。計算後帳單金額介於 5 億至 5.10 億美元，年對年成長 28% 至 31%。營業利益介於 1,500 萬至 1,800 萬美元。在第四季，我們預期將於 EMEA 與美洲舉辦年度 Zenith Live 活動。我們預期這兩場活動的成本介於 500 萬至 600 萬美元；所得稅 360 萬美元；每股盈餘介於 0.13 至 0.15 美元，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 pleased with the progress our CRO is making, and we are confident he is the right person to drive our sales and go-to-market execution. We are stepping up 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積極投資業務，以把握龐大的市場機會。我們對 CRO 取得的進展感到滿意，並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。我們將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 billings quarters with sequential declines in Q1 and Q3 quarters, respectively. With our outperformance in Q1 billings, we now expect first half billings to be approximately 43% of full year billings compared to our prior expectations of 42% to 43%. Also, please keep in mind that we have a large upfront billing of $11 million in Q2 of 2019 from a large public sector customer deploying our platform as a private cloud, which will pose a tough year-over-year comparison in Q2. Excluding this deal, our billings guidance for the full year implies 32% to 35% growth.

在你們建立帳單金額模型時，我想提醒各位，歷史上第二季與第四季一向是我們帳單金額最強的季度，而第一季與第三季則分別會出現較前一季下滑。由於我們第一季帳單金額表現超出預期，我們現在預期上半年帳單金額約占全年帳單金額的 43%，相較先前預期的 42% 至 43%。另外請留意，2019 年第二季曾有一筆 1,100 萬美元的大額一次性預先開立帳單，來自一位大型公部門客戶以私有雲部署我們的平台，這將使第二季的年對年比較更具挑戰。若排除該筆交易，我們全年帳單金額指引所隱含的成長率為 32% 至 35%。

In terms of free cash flow, please note that we will have additional spend for tenant improvements related to our headquarters move in January as well as ongoing cash outlays for lease payments on our existing San Jose buildings and litigation expenses related to our ongoing Symantec lawsuit. These extraordinary items are expected to be approximately $15 million to $20 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 0 to 2 percentage points lower compared to our operating profit margins. Longer term, we expect our free cash flow margins to be higher than our non-GAAP operating margins.

就自由現金流而言，請注意，我們將因一月總部搬遷而產生額外的租戶裝修支出，此外也會持續支付我們現有聖荷西大樓的租賃款項，以及與我們持續進行的 Symantec 訴訟相關的訴訟費用等現金支出。這些一次性／特殊項目預期全年約為 1,500 萬至 2,000 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潤率低 0 到 2 個百分點。長期而言，我們預期自由現金流利潤率將高於我們的非 GAAP 營業利潤率。

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

現在我想把時間交回給 Jay。

Thank you, Remo. In closing, let me state 4 key points that make me excited. Number one, architecture matters, especially for a cloud security platform that must sit in line to inspect all traffic for policy enforcement. We believe we have the best architecture with 10 years of operational experience to run a massive cloud and enormous barrier to entry. Number 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. Number three, we are in early innings of the cloud journey. We are disrupting a $20 billion TAM with ZIA and ZPA. In addition, we recently announced Zscaler B2B and ZDX, which we believe will expand our TAM significantly. Number four, with new go-to-market leadership on board, we're 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，架構很重要，尤其是雲端資安平台必須以串流（in line）方式部署，才能檢查所有流量以執行政策。我們相信我們擁有最佳架構，並具備 10 年的大規模雲端營運經驗，且進入門檻極高。第二，隨著 Office 365、SaaS 採用、SD-WAN 以及應用程式遷移至公有雲等多重順風因素，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）。此外，我們近期宣布了 Zscaler B2B 與 ZDX，我們相信這將大幅擴大我們的 TAM。第四，隨著新的 go-to-market（市場推進）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 on our progress in the future. Operator, you may now open the call for questions.

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

(Operator Instructions) And our first will come from Alex Henderson with Needham.

(接線員指示) 我們的第一位提問者是來自 Needham 的 Alex Henderson。

I was hoping to ask a question around the new sales head, the Chief Revenue Officer. To what extent he's come in and been effective? How long do you think it takes for his programs to be fully ramped and to get to the maximum benefit? Is that a 3- to 4-quarter process of reacceleration?

我想就新的銷售主管，也就是首席營收官（Chief Revenue Officer）問一個問題。他到任後在多大程度上已經發揮成效？你們認為他的各項計畫需要多久才能完全到位並達到最大效益？這是否是一個需要 3 到 4 個季度才能重新加速的過程？

And then the second piece of it, if I could. A lot of questions coming at me from clients about the competition from the next-gen firewall players. It seems to me that, that has not been a factor, but can you talk about whether that's shown up in terms of pricing pressure or any other notable metric other than lost deals, but maybe some other elements to the mix that may have pressured things?

然後如果可以的話，第二個部分。我收到很多客戶對於次世代防火牆（next-gen firewall）廠商競爭的提問。在我看來，那似乎並未成為因素，但你們能否談談這是否在定價壓力或其他值得注意的指標上有所呈現？不一定是丟單，也可能是其他對組合造成壓力的因素？

Yes. Alex, thank you. This is Jay. Regarding your question about our go-to-market, our CRO, as you know, we have done very well so far, built a business to hundreds of millions of dollars. Now our goal is to take it to $1 billion and plus, which means scaling our sales execution. Dali actually is the right guy who is driving a number of these things. Let me give you a perspective of what all he's driving.

是的。Alex，謝謝你。我是 Jay。關於你對我們 go-to-market 與 CRO 的問題，如你所知，我們迄今表現非常好，已將業務做到數億美元規模。現在我們的目標是把它推進到 10 億美元以上，這意味著要擴大我們的銷售執行規模。Dali 的確是推動多項工作、帶領我們前進的合適人選。我來提供一些他正在推動的事項觀點。

So, for execution at scale, I'll give you 3 examples. One, when you have scores of salespeople, it's one thing. When you have hundreds of salespeople, you need far better sales enablement, far better training. For us, we used to have a small sales enablement team. Dali has come in and built a very sizable team, and the team is already rolling out some of the training programs. Number two, to really scale your business, you need a very consistent and repeatable sales process that may be more refined. And Dali has come in and taken our process and further refined it, and it's being rolled out to the whole field. Number three, while we had tools and systems in place to scale to the next level and to have better accountability, better visibility to give us better leading indicator and sales activities, he and the leadership team has started work in many areas. So a lot of these things are already making a difference, and we are seeing it. And I think as each quarter goes by, we will see more and more impact of the work being done by Dali and his team. Remo, do you want to add anything?

就大規模執行而言，我舉 3 個例子。第一，當你只有數十位業務人員時是一回事。當你有數百位業務人員時，你就需要更好的銷售賦能（sales enablement）與更好的訓練。對我們而言，我們過去的銷售賦能團隊規模很小。Dali 到任後建立了一個相當可觀的團隊，而且該團隊已開始推出一些訓練計畫。第二，要真正擴大業務，你需要一套非常一致且可複製的銷售流程，而且可能需要更精細化。Dali 到任後把我們的流程進一步精煉，並正在向整個前線團隊推行。第三，雖然我們已具備工具與系統以支撐下一階段的擴張，並提升問責、提升可視性，以提供更好的領先指標與銷售活動追蹤，但他與領導團隊已在多個領域展開工作。因此，許多事情已經開始產生差異，我們也看到了。我認為隨著每一季的推進，我們會看到 Dali 與其團隊所做工作的影響越來越大。Remo，你要補充嗎？

Yes. A couple of add-ons to that also. I mean, our plan is still to be about a 20%-plus operating margin once we hit $800 million to $1 billion of revenue. Related to pricing pressure, our discounts are lower this quarter. Our average prices per user are higher. When I take a look at our ARR where customers are greater than 3,000 users, it's higher this quarter. It's in the high 300,000 range. And our churn is down.

好的。我也補充幾點。我的意思是，我們的計畫仍然是在營收達到 8 億到 10 億美元時，營業利潤率可達 20% 以上。關於定價壓力，我們本季的折扣更低。我們每位使用者的平均價格更高。當我看我們 ARR（年度經常性收入）中客戶使用者數大於 3,000 的部分，本季更高。大約在 30 多萬美元的高段區間。而且我們的流失率下降了。

Alex, regarding your second question about competition from firewall vendors, somehow this question keeps on coming. I tried to address it during my statements. But fundamentally, if you look at the large enterprises, to protect users, they almost always look for a proxy architecture. You guys deal with large banks. If you talk to top 20 banks and ask anyone, would you just depend upon on next-gen firewalls for user protection? I haven't found a yes answer from a single bank so far. Now it's probably true. Some of that is happening on the lower end, where the customer is less security savvy and they're able to go with some of that switching happening. So probably on the SD-WAN side, some of that is happening on the lower end, but where are our primary focuses? We don't really think any of the impact from the firewall vendors making noise has happened and impacted us. So far, I think it's the architecture, that we got much better that's giving us an edge, and I think it's a long-term edge.

Alex，關於你第二個問題，也就是來自防火牆供應商的競爭，不知為何這個問題一直出現。我在發言中試著回應過。但從根本上來看，如果你看大型企業，為了保護使用者，他們幾乎總是會尋求代理（proxy）架構。你們接觸大型銀行。如果你去問前 20 大銀行的任何人：你會只依賴次世代防火牆來做使用者防護嗎？到目前為止，我還沒從任何一家銀行聽到肯定的答案。現在這可能是真的。在較低端市場，客戶對資安的熟悉度較低，確實可能會出現一些改用那類方案的切換。所以在 SD-WAN 這一側，較低端可能會發生一些這樣的情況，但我們的主要重點在哪裡？我們並不認為防火牆供應商的聲量到目前為止對我們造成了任何影響。到目前為止，我認為是我們更好的架構帶來優勢，而且我認為這是長期優勢。

Our next question comes from Daniel Bartus with Bank of America.

下一個問題來自美國銀行（Bank of America）的 Daniel Bartus。

Great. First for Jay, maybe. No mention of the longer sales cycle order. So can you just walk us through the changes you're seeing versus last quarter when you called that out? And then I got a quick follow-up.

很好。第一個問題可能給 Jay。你們沒有提到較長的銷售週期訂單。所以你能否帶我們了解一下，相較於上季你們特別提到這點時，目前你們看到的變化是什麼？然後我有一個簡短的追問。

Yes. The changes in terms of the sales cycle and all... haven't really changed a whole lot for us. I think what we are doing is tightening our sales process and tightening our execution. We aren't really seeing much market impact in terms of a slowdown or any of the stuff. With better leadership and some of the things I outlined, I think focused execution is what we are doing, and we are beginning to see it make a difference for us. And I think it will help us in the long run because we are building a stronger infrastructure to scale our sales.

是的。就銷售週期條款的變化以及所有……對我們而言其實沒有太大改變。我認為我們正在做的是收緊銷售流程並強化執行力。就市場影響而言，我們並沒有真的看到太多放緩或諸如此類的情況。在更好的領導力以及我概述的一些事項之下，我認為我們正在做的是聚焦執行，而且我們開始看到這對我們產生影響。我也認為長期來看這會幫助我們，因為我們正在建立更強健的基礎架構，以擴大我們的銷售規模。

Great. Makes sense. And then, Remo, quick question. Good to hear the new products are getting good reception. I'm curious if you have any ZDX or ZB2B in your fiscal '20 expectations. And what's the potential for these new products to ramp and maybe drive some upside this year?

很好。有道理。接著，Remo，快速問一下。很高興聽到新產品反應良好。我想知道你們在2020會計年度的預期中，是否納入任何ZDX或ZB2B。以及這些新產品在今年放量、甚至帶來一些上行空間的潛力如何？

Yes. So no, there's nothing we're planning for, and you shouldn't plan for anything either. We're planning to get these products out in the second calendar quarter of '20. The potential for the products, as Jay mentioned, with the CASB out-of-band, browser isolation, user experience and the B2B, we feel that there's a pretty significant upside for us with these types of products, but nothing for this fiscal '20 should be accounted for.

是的。所以沒有，我們沒有把任何東西納入規劃，你也不應該把任何東西納入規劃。我們計畫在2020年曆年第二季推出這些產品。就產品的潛力而言，如Jay提到的，包含帶外CASB、瀏覽器隔離、使用者體驗以及B2B，我們認為這類產品對我們有相當顯著的上行空間，但在本會計年度2020不應計入任何貢獻。

Yes. If I may add, we are engaged with customers, as you would expect, in beta stages during evaluation and testing. The interest is real. I mean, just to clarify, what we announced was 2 big product lines, Zscaler B2B and Zscaler Digital Experience. And then we also announced 2, what I would call, features. Out-of-band CASB, CASB is a feature. Browser isolation is another feature. That's relevant for both ZIA and ZPA. Early indication is very positive. These products become generally available in calendar Q2.

是的。如果我可以補充一下，我們如你所預期地在測試版階段與客戶互動，進行評估與測試。市場興趣是真實存在的。我的意思是，為了釐清，我們宣布的是兩條大型產品線：Zscaler B2B與Zscaler Digital Experience。然後我們也宣布了兩個我會稱之為「功能」的項目。帶外CASB，CASB是一項功能。瀏覽器隔離是另一項功能。這對ZIA與ZPA都相關。初步跡象非常正面。這些產品將在年曆第二季正式全面上市（GA）。

Our next question will come from Patrick Colville with Arete Research.

下一個問題來自Arete Research的Patrick Colville。

Can we just talk about the CASB product because, I mean that's something that from speaking to your customers, there's been a lot of interest in CASB right now and some have said that the scale will be a natural insertion point into that CASB debate above and beyond your current partnerships right now with Microsoft and McAfee. So just it's good to better understand that product, if possible, please?

我們能否談談CASB產品？因為，我的意思是，從我與你們客戶的交流來看，目前對CASB的興趣非常高，有些人也表示，你們的規模將會成為這場CASB討論中的一個自然切入點，超越你們目前與Microsoft與McAfee的合作夥伴關係。所以，如果可以的話，請協助我們更好地理解這個產品？

Yes. So, for a long time, we have had what we call inline CASB. If all traffic goes through us, we have to do CASB, which includes threat detection and protection, DLP and the like. And for out-of-band, it will be dependent upon 2 partnerships, you mentioned McAfee and Microsoft. Our customers kept on telling us that it's a small add-on, we should be doing it. So, we took them seriously, we built it. So, we become a single provider. So, it's a natural feature for us to add on, and we're seeing lots of traction. We will continue our partnership with Microsoft and Skyhigh, McAfee in this area. If customers want something like that, they have it. But we believe a large number of customers will take Zscaler. And if there's another CASB solution, I think, we'll end up displacing it.

是的。所以，長期以來，我們一直有我們所稱的內聯（inline）CASB。如果所有流量都經過我們，我們就必須做CASB，其中包括威脅偵測與防護、DLP等等。而對於帶外（out-of-band），它將取決於兩個合作夥伴關係，你提到的McAfee與Microsoft。我們的客戶一直告訴我們這只是個小型加值功能，我們應該自己做。所以我們認真看待，並把它做出來了。因此，我們成為單一供應商。所以這對我們而言是一個很自然可以加上的功能，而且我們看到很多牽引力。我們會在這個領域持續與Microsoft以及Skyhigh（McAfee）合作。如果客戶想要那樣的方案，他們也有。但我們相信有大量客戶會選擇Zscaler。而如果還有其他CASB解決方案，我認為我們最終會把它取代掉。

Great. And can I just ask a quick follow-up on the dollar-based net retention rate. So, the 120% is extremely impressive, no doubt, and especially given it's a sequential and annual increase, but it does imply that revenue from new customers would have tailed off, both sequentially and annually. So, do you mind just helping me understand if that's correct. The revenue contribution became increasingly skewed to existing customers? Or if there are any metrics you can share to help me better understand new customer revenue and customer count?

很好。我可以再快速追問一下以美元計的淨留存率（dollar-based net retention rate）嗎？120%毫無疑問非常亮眼，尤其是它在季比與年比都提升，但這也意味著新客戶帶來的營收可能在季比與年比都走弱。所以你能否幫我理解一下這樣的解讀是否正確？營收貢獻是否愈來愈偏向既有客戶？或者你是否能分享任何指標，幫助我更好理解新客戶營收與客戶數量？

Yes, that's a good question. So typically, we range with new versus upsell, 60% or 40% new versus upsell and also 50% to 50%. In Q1, the mix was closer to 50% to 50%. What's important to recognize, we don't really distinguish internally the difference between new and upsell. We track it, but we incentivize our sales organization, both for new and upsell. When you take a look at the installed base that we have and the penetration that we have with our installed base, there's a significant opportunity for us to upsell into that installed base. We don't want to disincentivize our sales organization selling into that installed base. With Dali on board, I'm sure he'll be driving all aspects of the business, including new customer acquisition.

是的，這是個好問題。所以通常，我們在新客與加購（upsell）的占比上，會落在60%/40%（新客/加購）或50%/50%。在第一季，組合更接近50%/50%。需要認知的一點是，我們在內部其實不太區分新客與加購的差異。我們會追蹤，但我們對銷售組織的激勵同時涵蓋新客與加購。當你看我們的既有客戶基礎（installed base）以及我們在其中的滲透率時，我們有很大的機會在這個既有客戶基礎上做加購。我們不希望因為激勵設計而讓銷售組織不願意對既有客戶銷售。Dali加入後，我相信他會推動業務的各個面向，包括新客取得。

Yes. Remo, if I may add, if a company is a single-product company with a narrow offering, they have to keep on worrying about new customers in order to drive their growth. We have such a wide platform and more products being added to it. So, we are less worried about making sure we just do new customers. So, our #1 goal is to maximize new ACV. Hence, we don't have a difference between new versus upsell. And Remo said the range of new has varied from 50% to 60%. And I think that's a good range. But as you see more new products coming, some of them can be sold on its own without the installed base, we expect over time to go up. But we don't look at NRR, net retention revenue, as the most reliable indicator. It varies quite a bit. Remo, you have commented on in the past why it varies...

是的。Remo，如果我可以補充，如果一家公司是單一產品公司、產品線很窄，他們就必須不斷擔心新客戶以推動成長。我們擁有非常廣的平台，而且還會持續加入更多產品。因此，我們較不擔心必須只做新客戶。所以，我們的第一目標是最大化新增ACV。因此，我們不區分新客與加購。如Remo所說，新客占比的區間在50%到60%。我認為這是個不錯的範圍。但隨著更多新產品推出，其中一些可以不依賴既有客戶基礎而單獨銷售，我們預期長期來看這個比例會上升。但我們不把NRR（淨留存營收）視為最可靠的指標。它波動相當大。Remo，你過去也評論過它為何會波動……

Yes. So I mean 120%, that's clearly outstanding. We've ranged from the 118% for several quarters. We called out several quarters ago that there could be pressure on that NRR, net retention rate, as more companies are buying transformation upfront, which is what we're seeing. In addition, if customers are buying things quicker within the year because our net retention rate is based on ARR at the beginning of the year versus what it is currently. If customers buy product within that period, that's going to put pressure also on the net retention rate. Now those are the negative effects to it. The positive effects to it are that is 43% of our ARR in ZIA was transformation, 14% of our new and upsell business last year was the ZPA. So, there's upsell capabilities with those products. In addition, as Jay mentioned, with our new products, there's a potential for it also going up. The point to make is it's going to fluctuate. It's a hard, hard metric to really put your finger on. 120% is outstanding, but it could fluctuate.

是的。所以我的意思是，120%顯然非常出色。我們已經有好幾季維持在118%左右。我們在幾季前就提到，隨著更多公司在前期就購買轉型方案（transformation upfront），NRR（淨留存率）可能會面臨壓力，而我們確實正在看到這種情況。此外，如果客戶在一年內更快購買更多項目，因為我們的淨留存率是以年初的ARR對比目前的ARR來計算，若客戶在該期間內購買產品，也會對淨留存率造成壓力。以上是它的負面影響。正面影響則是：我們ZIA的ARR中有43%是轉型，去年我們新客與加購業務中有14%來自ZPA。因此，這些產品具備加購能力。另外，如Jay提到的，隨著我們的新產品推出，也有可能讓它上升。重點是它會波動。這是一個非常、非常難以精準掌握的指標。120%很出色，但它可能會波動。

Our next question will come from Andrew Nowinski with D.A. Davidson.

我們的下一個問題將由 D.A. Davidson 的 Andrew Nowinski 提出。

Thank you and congrats on the nice quarter. I want to start with a question on the Fed side. So I think you mentioned a few modest-sized deals with civilian agencies, but I'm wondering if you can give us your thoughts on how Microsoft being awarded the JEDI contract might impact Zscaler, given your strong partnership with Microsoft and now having both ZIA and ZPA FedRAMP certified.

謝謝，恭喜本季表現亮眼。我想先從聯邦政府（Fed）這邊問起。我想你提到與民用機構有幾筆規模不大的交易，但我想請你談談，考量到你們與微軟的緊密合作關係，以及目前 ZIA 與 ZPA 都已通過 FedRAMP 認證，微軟獲得 JEDI 合約可能會如何影響 Zscaler？

Actually, very excited with the opportunity. We started investing in FedRAMP certifications over 2 years ago. It's a very hard certification, but we made the investment. And as you've seen in recent press releases and the like, we got certification for both ZPA and ZIA. And as I said, we are the only vendor that's FedRAMP certified with cloud security gateway. And on the ZPA side, only vendor certified for Zero Trust Remote Access. That puts us in a very, very good position. Now the way Zscaler works is it's independent of cloud, we can access Microsoft, AWS, Azure, all these clouds work with us, but having a good partnership already in place with Microsoft will help us work closely with them in the field from a go-to-market point of view. So, while we have begun to get some early deals, we are pretty optimistic about the opportunity, though we do realize that federal deals can take a little bit longer time. But very pleased with the team we have put in place. The team has grown quite a bit and it's delivering.

其實我們對這個機會非常興奮。我們在兩年多前就開始投資 FedRAMP 認證。這是一項非常困難的認證，但我們做了這項投資。而且如你在近期新聞稿等內容中所看到的，我們已同時取得 ZPA 與 ZIA 的認證。如我所說，我們是唯一一家在雲端安全閘道（cloud security gateway）方面通過 FedRAMP 認證的供應商。而在 ZPA 方面，我們也是唯一通過「零信任遠端存取」（Zero Trust Remote Access）認證的供應商。這讓我們處於非常、非常有利的位置。現在 Zscaler 的運作方式是與雲端無關（independent of cloud），我們可以存取 Microsoft、AWS、Azure 等各種雲端，這些雲端都能與我們配合；但既然我們已與微軟建立良好的合作夥伴關係，從上市推廣（go-to-market）的角度來看，將有助於我們在前線與他們更緊密合作。因此，雖然我們已開始拿到一些早期案子，我們對這個機會仍相當樂觀，儘管我們也知道聯邦政府的案子可能需要更長的時間。但我們對已建立的團隊非常滿意。團隊規模成長不少，而且正在交出成果。

Okay. And then the telcos have also been a fairly large driver of demand over the course of the last few years. Can you just give us any color on what, if anything, has changed with regard to the revenue contributed by the telco providers?

了解。另外，過去幾年電信業者也一直是需求的重要驅動因素。你能否分享一下，關於電信業者所貢獻的營收，是否有任何變化？若有，是什麼變化？

Yes. Telco, they have been an important partner for us. I won't say any partner has been driving a lot of demand for us. As you know, as we drove transformation, we have done a lot of evangelism. So, we have been driving a lot of demand. It is in high-touch sales. But as customers are asking for more and more transformations, now we do see now more leads coming from telco partners to say, "My customer is asking for it." We're beginning to see RFPs coming out and say, "I need to do transformation." The deal I referred to in my earnings call from Japan actually was an RFP that was issued to 3 telcos, and all 3 telcos with Zscaler because we met the requirement. It's a good business happening. We are trying to go further down market with telcos. That's a new project, actually, Dali, is trying to drive. So far, a lot of business we've done with telcos on the very high end with the large enterprises. So excited about the opportunity. They're natural partners for us, even though there is, yes, some contention about network costs and whatnot. But they really don't impact us. It's the market that's looking for it, and we are taking advantage of the market.

是的。電信業者一直是我們重要的合作夥伴。我不會說任何一個合作夥伴為我們帶來了大量需求。如你所知，在我們推動轉型的過程中，我們做了大量的市場倡議與推廣（evangelism）。因此，很多需求其實是我們自己帶動的。這屬於高接觸式銷售（high-touch sales）。但隨著客戶要求越來越多的轉型，我們確實看到更多線索開始來自電信合作夥伴，他們會說：「我的客戶正在要求這個。」我們也開始看到 RFP 出現，內容是：「我需要做轉型。」我在財報電話會議中提到的那筆日本交易，其實就是一份發給 3 家電信業者的 RFP，而 3 家電信業者都選擇了 Zscaler，因為我們符合需求。這是一個正在發生的好生意。我們也正嘗試與電信業者一起往更下沉市場（down market）拓展。這其實是一個新專案，是 Dali 正在推動的。到目前為止，我們與電信業者合作的多數業務都在非常高端、以大型企業為主。所以我們對這個機會感到興奮。他們是我們的天然合作夥伴，儘管確實存在一些關於網路成本等等的爭議。但那些其實不會影響我們。是市場在尋找這樣的方案，而我們正在把握市場機會。

Yes, telcos typically represent around 50% of our revenue, and that's about where it was in Q1.

是的，電信業者通常約占我們營收的 50%，而在第一季（Q1）也大致是這個水準。

Our next question will come from Saket Kalia with Barclays.

我們的下一個問題將由 Barclays 的 Saket Kalia 提出。

Jay, maybe to start with you, a lot of talk on competition, particularly from the firewall side. I'd actually love to shift a little bit, maybe talk about competition from the traditional Secure Web Gateway players here that are transitioning, most notably with Blue Coat. I guess the question is, what are you seeing in terms of sales engagement with those types of opportunities since the deal is closed? And really, their willingness to explore a solution like Zscaler?

Jay，先從你開始，市場上談了很多競爭，特別是來自防火牆陣營。我其實想稍微轉個方向，談談來自傳統安全網關（Secure Web Gateway）廠商的競爭，這些廠商正在轉型，最具代表性的就是 Blue Coat。我的問題是，自從那筆交易完成後，你們在這類機會上的銷售互動（sales engagement）方面看到了什麼？以及他們願意探索像 Zscaler 這樣解決方案的程度如何？

When it comes to competition, our real competition from incumbency point of view is Secure Web Gateway, because they have the right architecture as a proxy architecture. Where we have been winning against them is because they have a good on-premise single tenant proxy architecture, but they couldn't pivot to the cloud, they couldn't build a viable, multi-tenant architecture, right? Remember my DVD versus Netflix example. Now among these traditional vendors for Secure Web Gateway, Blue Coat had big presence at large enterprises as an appliance. And with the sale to a new owner, there's some uncertainty out there. So, we are seeing a lot of additional interest from large enterprises who are looking for alternatives. Some of these customers are moving to the cloud. So, it is actually helping us. So, we're getting inbound inquiries that we were not getting before. So, we think it's a big opportunity for us. We are focused to take advantage of this.

談到競爭，從既有部署（incumbency）的角度來看，我們真正的競爭對手是安全網關（Secure Web Gateway），因為他們採用代理（proxy）架構，架構方向是對的。我們之所以能贏過他們，是因為他們有不錯的本地端（on-premise）單租戶（single tenant）代理架構，但他們無法轉向雲端，也無法建立可行的多租戶（multi-tenant）架構，對吧？記得我用 DVD 對比 Netflix 的例子。在這些傳統安全網關廠商中，Blue Coat 以設備（appliance）的形式在大型企業有很大的市占。而隨著出售給新東家，市場上出現了一些不確定性。因此，我們看到許多大型企業對替代方案產生了更多興趣。其中一些客戶正在往雲端遷移。所以這其實是在幫助我們。我們收到一些以前沒有的主動詢問（inbound inquiries）。因此我們認為這對我們是個很大的機會。我們會專注把握這個機會。

Makes sense. Remo, maybe my follow-up for you, somewhat related, but now that Symantec is part of a larger entity, you talked about $15 million to $20 million in one-time cash cost, including litigation. Can you talk about the litigation portion of it? And how does that sort of progress now that ownership on Symantec has sort of changed hands?

了解。Remo，我接著問你一個相關的問題：現在 Symantec 成為更大型實體的一部分，你提到一次性現金成本約 1,500 萬到 2,000 萬美元，其中包含訴訟費用。你能談談其中訴訟的部分嗎？以及在 Symantec 的所有權某種程度上已經易手之後，這件事的進展會如何？

Yes. The litigation portion is $8 billion to $10 billion. The transaction with Broadcom and Symantec just was completed. So there's not much update. I mean the only thing I can say is that we do not feel we infringed, we're going to defend ourselves vigorously and the lawsuit that is currently out there is not having any impact on our business at all.

是的。訴訟部分是 80 億到 100 億美元。Broadcom 與 Symantec 的交易才剛完成。所以目前沒有太多更新。我的意思是，我唯一能說的是，我們不認為我們有侵權，我們會強力為自己辯護，而且目前這起訴訟對我們的業務完全沒有任何影響。

Yes. We're carrying on. But as you pointed out, change of hands can present an opportunity. And if it did, we will be open to it.

是的。我們會照常推進。但如你所指出的，所有權變更可能帶來機會。如果真的出現機會，我們會保持開放態度。

Our next question will come from Brian Essex with Goldman Sachs.

我們的下一個問題將由 Goldman Sachs 的 Brian Essex 提出。

Jay, maybe I could point to a couple of the sustainable competitive advantage examples that you gave. One, the first one pointed to scalability and elasticity of your platform? And the third one, pointed to your edge cloud capabilities, but both were really interesting instances of pursuing Internet breakouts. Maybe if you could help us understand a little bit how these deals transpired and who the partners on the SD-WAN side were? And was this driven by maybe an SI that was putting the deal together and working with the company on a consultative basis? Or was this something that you led and held their hands through this process and pulled maybe the SD-WAN vendors in and put the deal together on your side?

Jay，也許我可以回到你提到的幾個可持續競爭優勢的例子。第一個是你提到平台的可擴展性與彈性（scalability and elasticity）。第三個是你提到邊緣雲（edge cloud）能力，但兩者其實都是在追求 Internet breakout 的很有意思的案例。也許你可以幫我們更了解一下，這些交易是如何促成的，以及在 SD-WAN 端的合作夥伴是誰？另外，這是否是由某個系統整合商（SI）把案子整合起來，並以顧問式方式與公司合作所推動的？或者是你們主導、一路帶著客戶走完流程，並把 SD-WAN 供應商拉進來，由你們這邊把案子組合起來？

Yes. The way these things are happening, it's still not a process where market is mature, and RFPs get sent out all the time. As we have mentioned, we are still in a high-touch sales model. There is a good amount of evangelism needed though it's getting easier and easier, what used to be a typical process. Our sales team goes and engages with the customer, shows them the value of transformation that can deliver user experience and lower cost, and that basically leads to a natural discussion and say, let's get an SP or SI together because it generally involved transformation, SP vendor awareness is out there. We start collaborating with SP vendors out there. As I mentioned to you, VMware and Silver Peak, are good partners for us, they're the leaders out there, and we come together and offer a proposal and solution. So, I would say, a majority of the large deals that are driven and closed they're still led by us, then we bring the partners along. But in a good number of them, they do come from partners. And many times, our SD-WAN vendors introduce us to a deal. And sometimes we introduce them to deals. So that's why we like these technology partnerships. Microsoft, VMware are 2 big technology partners that are helping us. On the SP front, the large SPs, the top 4 or 5 SPs globally are very good partners.

是的。就目前這些事情發生的方式來看，市場仍未成熟，還不到那種 RFP 會被頻繁發出的流程。如同我們提到的，我們仍處於高接觸式的銷售模式。雖然現在越來越容易，但仍需要相當程度的市場教育（evangelism），這曾經是典型流程的一部分。我們的銷售團隊會去與客戶接觸，向他們展示轉型所能帶來的價值——提升使用者體驗並降低成本——這基本上會自然引導出討論：我們一起找一家 SP 或 SI 吧，因為這通常涉及轉型，而且市場上對 SP 供應商的認知也已經存在。我們開始與外部的 SP 供應商合作。如我先前提到的，VMware 和 Silver Peak 是我們很好的合作夥伴，他們是市場領導者，我們會一起提出提案與解決方案。所以我會說，多數由我們推動並成交的大型案子仍是由我們主導，然後再把合作夥伴帶進來。但也有相當一部分是由合作夥伴帶來的。而且很多時候，我們的 SD-WAN 供應商會把案子介紹給我們。有時候則是我們把案子介紹給他們。這也是為什麼我們喜歡這些技術合作夥伴關係。Microsoft、VMware 是兩個正在幫助我們的重要技術合作夥伴。在 SP 方面，全球前 4 到 5 大的 SP 都是非常好的合作夥伴。

Got it. Maybe just a follow up to, that's very helpful. Remo, when we spoke with Dali in September, he had a goal of maybe taking 30 to 60 days to evaluate data on the platform, build models, evaluate talent and hire and so forth. Is he through with that? And do you know, like definitively kind of the framework of what the incremental spend on the sales and marketing side will be for this year? Or might that kind of bleed into next year? I'm just trying to get a sense of when we might anticipate some meaningful leverage on the sales and marketing side of the model?

了解。也許再追問一下，這很有幫助。Remo，我們在 9 月與 Dali 交談時，他的目標是可能用 30 到 60 天來評估平台上的數據、建立模型、評估人才並進行招募等等。他現在已經完成了嗎？另外你是否能更明確地說明，今年在銷售與行銷端的增量支出框架會是什麼？還是可能會延續到明年？我只是想了解，我們何時可能在這個模式的銷售與行銷端看到一些有意義的槓桿效益？

Yes, good question. I would start seeing basically improvement to next year related to, and again, the guidance that we gave contemplates the investment we're making in sales and marketing. Dali's 30- to 60-day plan, I mean, I've worked with a few CROs. And watching what Dali is doing here in the first couple of months is he's moving very quickly and doing outstanding. I mean he's building the sales leadership in the organization. And he's building, as Jay mentioned, our sales enablement and training, he's better defining sales responsibility and putting in place the framework for us to be a much bigger company and putting in place that accountability. In summary, what I see what Dali is doing, he's putting structured, disciplined leadership and it is a passion that he has. Quite frankly, I don't know when he sleeps. It's going very quickly, but it is going to take time. So that was the reason for our guidance initially at 42%, 43% billings in the first half, and we increased that to 43%, and increased our billings guidance to $500 million to $510 million. I'm excited working with Dali and what he's doing and look forward to it.

是的，好問題。我認為與此相關的改善基本上會在明年開始看到；另外，我們所給的指引也已經把我們在銷售與行銷上的投資納入考量。Dali 的 30 到 60 天計畫——我的意思是，我曾與幾位 CRO 共事過。觀察 Dali 在前幾個月的作為，他推進得非常快，而且表現非常出色。他正在建立組織內的銷售領導團隊。同時如 Jay 所提到的，他也在建立我們的銷售賦能與訓練，更清楚地界定銷售責任，並建立讓我們成為更大型公司所需的框架與問責機制。總結來說，我看到 Dali 正在導入結構化、紀律性的領導，而這也是他的熱情所在。坦白說，我不知道他什麼時候睡覺。進展非常快，但這仍然需要時間。因此我們最初給出的指引是上半年帳單（billings）成長 42%、43%，後來我們把它提高到 43%，並將帳單指引提高到 5 億美元到 5.1 億美元。我很期待與 Dali 一起合作、也很期待他正在做的事情，並期待後續成果。

Our next question comes from Matthew Wells with Citi.

下一個問題來自 Citi 的 Matthew Wells。

Can you provide an update on customer feedback and learnings around ZB2B and ZDX? I understand both are still in beta and plan to go live, I believe, next quarter, actually?

你能否更新一下客戶對 ZB2B 和 ZDX 的回饋與學習心得？我理解兩者仍在 beta 階段，並計畫上線，我相信是在下一季，對嗎？

Yes, I think we'll be able to give you more tangible and meaningful customer feedback probably next quarter. Right now, I would say, the degree of interest and opportunity I had anticipated 3 or 6 months ago, it seems bigger than that. So high customer interest. But again, it's a limited engagement so far. So, the limited engagement we have had, a very high degree of interest, but we'll give you more as we have more tangible feedback.

是的，我想我們大概會在下一季提供更具體且更有意義的客戶回饋。就目前而言，我會說，客戶興趣與機會的程度比我在 3 或 6 個月前預期的還要更大。所以客戶興趣很高。但同樣地，目前的合作參與仍然有限。因此，在我們目前有限的參與中，客戶興趣非常高；等我們有更具體的回饋時，會再提供更多資訊。

Got it. And just a follow-up on that. Is the sales force incentivized around products while they're still at beta? Or it's just when they go live next quarter?

了解。再追問一下。在產品仍處於 beta 階段時，銷售團隊是否就已針對這些產品設有激勵？還是要等到它們在下一季正式上線之後？

We have no incentive. In fact, product management is actually working closely with a selective number of customers. But we are not really pushing, we would rather not push until the products are properly cooked and all the kinks are out of it. Once they become GA, only then sales force start selling it.

我們沒有任何激勵。事實上，產品管理團隊正與少數精選客戶密切合作。但我們並沒有真正去推動；在產品完全成熟、把所有問題都排除之前，我們寧可不要推。等到產品成為 GA（正式一般可用）之後，銷售團隊才會開始銷售。

Just wanted to clarify that these new products are going to be generally available in calendar Q2. So, it is not next quarter.

我想澄清一下，這些新產品將在曆年第二季（calendar Q2）正式一般可用。所以不是下一季。

Next, we have Melissa Franchi with Morgan Stanley.

接下來是 Morgan Stanley 的 Melissa Franchi。

This is Melissa Dunn on for Melissa Franchi. I was hoping you could provide some color around activity in EMEA. Revenue growth in that area was slightly slower than the rest of the region. So, wondering if there were any macro softness in your view or maybe execution considerations?

我是 Melissa Dunn，代替 Melissa Franchi 提問。我希望你能就 EMEA 的活動情況提供一些補充說明。該地區的營收成長略慢於其他地區。因此想請問，從你的觀點來看是否有任何總體環境轉弱，或是可能與執行面因素有關？

No, from a macro perspective, we really don't see it. EMEA grew 40%, which is slower than the Americas and APJ. We did have a leadership change in EMEA, which we're very excited about. But at 41% of total revenue in EMEA, APJ at 8%, Americas at 51%, it's pretty consistent with what it's been in the past. But from a macro perspective, not really seen any changes.

沒有，從總體環境角度來看，我們其實沒有看到。EMEA 成長 40%，確實比美洲與 APJ 慢。我們在 EMEA 也進行了領導層變動，對此我們非常振奮。不過 EMEA 佔總營收 41%、APJ 佔 8%、美洲佔 51%，這與過去的結構相當一致。但從總體環境角度來看，並沒有真正看到任何變化。

Yes, we are bullish on EMEA. I think we've got a good incumbent installed base. We'll keep on growing it. We are making the right amount of investments for EMEA.

是的，我們對 EMEA 持樂觀態度。我認為我們有不錯的既有客戶裝機基礎（installed base）。我們會持續擴大成長。我們也正在為 EMEA 進行適當規模的投資。

And just a quick follow-up. To what extent is ZPA driving initial conversations with new customers versus ZIA? And there's been a lot of other vendors that are seemingly trying to address this opportunity. So has there been any change in what you've seen in competitive deals?

再快速追問一下。在與新客戶的初始對話中，ZPA 相較於 ZIA 在多大程度上扮演驅動角色？而且看起來有很多其他供應商也在嘗試切入這個機會。所以在競爭型交易中，你們所看到的情況是否有任何變化？

So in the past few quarters, we have been seeing about half the new customers coming from ZPA, sorry, half the ZPA deals coming from new customers and half coming from upsell. So that's kind of number of customers. But having said that, the ZPA deals are smaller than ZIA deals. As we've said before, when ZIA is bought, it's bought for everyone in the company, for all employees as ZPA are based on number of applications. So that's one. ZPA is opening more doors for new logos than we had initially thought of. So, pleased with that.

因此在過去幾個季度，我們看到大約一半的新客戶來自 ZPA，抱歉，是一半的 ZPA 交易來自新客戶，另一半來自加購（upsell）。所以這大致就是客戶數量的情況。但話雖如此，ZPA 的交易規模比 ZIA 的交易小。正如我們之前所說，當購買 ZIA 時，通常是全公司採購，涵蓋所有員工；而 ZPA 則是以應用程式數量為基礎。這是一點。ZPA 正在為我們打開比最初預期更多的新客戶（new logos）大門。所以，我們對此感到滿意。

Your second question is competition for ZPA. ZPA market in what Gartner called Zero Trust Network Access or others call SDP, it is still a young market. We kind of rarely run into each other because it's relatively small. So, not a very competitive space. It's more of a matter of evangelizing and showing people that doing traditional network security with things like VPN is a dangerous thing. They don't need to do it. Once they get it, you win the deal.

你的第二個問題是關於 ZPA 的競爭。ZPA 所在的市場，在 Gartner 所稱的「零信任網路存取」（Zero Trust Network Access），或其他人稱之為 SDP，仍然是一個年輕的市場。我們彼此其實很少正面交鋒，因為市場相對還小。所以，競爭並不激烈。更多是宣導（evangelizing）並讓大家理解，用 VPN 這類方式做傳統網路安全其實是危險的。他們不需要再這麼做。一旦他們理解了，你就能拿下這筆交易。

Our next question will come from Fatima Boolani with UBS.

下一個問題來自 UBS 的 Fatima Boolani。

Jay, I have a question for you and a follow-up for Remo. Jay, you talked a lot about the internal improvements and pipeline rigor and sales enablement initiatives that Dali had sort of put in place and put into motion. So internally, you're really elevating the rigor in the sales organization and go to market. I'm wondering if you can speak to the external and external distribution avenues and sort of what you're doing there from maybe a channel perspective or a service provider or SI distribution perspective. Because as we understand, your model doesn't traditionally lend itself well to the box pushers, so I wanted to get your sense of what sort of investments are in play from an external distribution perspective?

Jay，我有一個問題要問你，另外有一個追問要問 Remo。Jay，你談了很多 Dali 已經建立並推動的內部改善、管線（pipeline）紀律與銷售賦能（sales enablement）計畫。所以在內部，你們確實在提升銷售組織與市場推進（go-to-market）的嚴謹度。我想請你談談外部、以及外部分銷通路（distribution avenues）方面，你們從通路（channel）、服務供應商（service provider）或 SI（系統整合商）分銷的角度，正在做些什麼。因為據我們理解，你們的模式傳統上並不太適合那些「賣盒子」的通路商，所以我想了解在外部分銷面向，你們正在投入哪些投資？

Absolutely. There are several points I could make there. In fact, I heard from someone the other day, they said, "Hmm, it seemed like you're defocusing on channel." I said, "Not sure where that's coming from because actually, we are putting more focus on channel." But the point is, it's not the same traditional channels. So, what are we doing about channel? We know SPs have worked for us. We will keep on making more investments, rather looking at going downstream with some of the SPs and not just do the very large enterprise deals.

當然。這裡我可以提出幾點。事實上，前幾天我聽到有人說：「嗯，看起來你們在弱化通路。」我說：「不確定這說法從何而來，因為其實我們正在更聚焦通路。」但重點是，這不是同樣的傳統通路。那麼，我們在通路方面做了什麼？我們知道服務供應商（SP）對我們是有效的。我們會持續加大投資，更進一步地說，我們會與部分 SP 往下沉市場（downstream）拓展，而不只是做非常大型的企業交易。

On the channel or maybe called the VAR channel traditionally, right? The people who largely are in the box selling business, that has limited synergy with us. But Dali is focused on 2 types of channel partners. One, we have done cloud-native boutique VARs well, but only limited. We are expanding the reach. Dali has successfully done those cloud-native type of vendors in his previous life, so we are focused on getting those things done. Two, finding more vendors who are ready to pivot. Every channel person doesn't want to pivot, or they wish they don't have to pivot because boxes will keep on selling forever. So those are the 2 things we're doing. I talked about sales enablement and training. That's really not just needed for channel, sorry, for internal teams, that's needed for channel as well. So, we are putting a lot of focus in that area as well because that's needed for them to become more effective.

至於通路，或傳統上所說的 VAR 通路，對吧？那些主要做「賣盒子」生意的人，與我們的協同效應有限。但 Dali 正聚焦兩種類型的通路夥伴。第一，我們在雲原生（cloud-native）的精品型 VAR 上做得不錯，但規模仍有限。我們正在擴大觸及範圍。Dali 在他過去的職涯中，成功推動過這類雲原生型的供應商，因此我們正專注把這些事情落地。第二，尋找更多願意轉型（pivot）的供應商。不是每個通路商都想轉型，或者他們希望不必轉型，因為他們認為盒子會永遠賣得動。所以這就是我們正在做的兩件事。我提到銷售賦能與訓練。那不只是內部團隊需要，抱歉，通路也同樣需要。因此我們也在這個領域投入大量心力，因為這是讓他們更有效率所必需的。

I appreciate that. That makes a ton of sense. Remo, a question for you. You've been very explicit on the level of investments, especially on the sales and marketing front, as reflected in your guide. But as I think about Analyst Day, you're a little bit more explicit on your sales capacity investments, so maybe accelerating that sales capacity footprint to 60% this year. I just wanted to get a sense of an update of how the sales hiring has been tracking as you started the new year? And that's it for me.

謝謝你的說明。這非常合理。Remo，我有個問題想問你。你在投資水準上講得很明確，特別是在銷售與行銷方面，這也反映在你們的財測指引中。但當我回想 Analyst Day，你對銷售產能（sales capacity）投資講得更明確，例如今年可能把銷售產能版圖加速擴張到 60%。我想了解一下，進入新年度後，銷售招募（sales hiring）的進度追蹤情況如何？我就這些，謝謝。

Yes. Our sales tracking for Q1 is a little bit behind, but our expectation is still to get to that 60%. We're looking for Q2 to be a good quarter for us, but that's all taken into account in our guidance.

是的。我們第一季的銷售招募進度追蹤稍微落後一些，但我們的預期仍然是達到 60%。我們預期第二季會是表現不錯的一季，但這些都已經納入我們的指引之中。

Yes, I would add that in the past quarter, we raised the bar in hiring better quality people and also acceleration of hiring. In fact, under Dali, we have put together a new recruiting playbook where we are educating, we are training all of our front-line sales leaders to make sure we hire the right kind of people. Again, product scaling. When you only have 10 leaders who are hiring, it's a small problem. When you've got 50 sales leader who are hiring, it needs better scaling and better methodology and process, and that's what we are really scaling out.

是的，我補充一下：在上一個季度，我們提高了門檻，去招募更高品質的人才，同時也加快招募速度。事實上，在 Dali 的帶領下，我們制定了一套新的招募作戰手冊（recruiting playbook），我們正在教育並訓練所有第一線的銷售主管，確保我們招到合適的人。同樣地，這是產品規模化（product scaling）的一部分。當只有 10 位主管在招募時，這是個小問題。當有 50 位銷售主管在招募時，就需要更好的規模化能力、更好的方法論與流程，而這正是我們正在擴大推行的。

Our next question will come from Dan Ives with Wedbush Securities.

下一個問題來自 Wedbush Securities 的 Dan Ives。

So maybe can you talk about the government market? Obviously, a lot of deals moving to cloud. JEDI is just, I think, one of them. And just given where you are in terms of Azure, in terms of that channel, maybe just talk about that as an opportunity over the next 6, 12 months in terms of how you're viewing that going in 2020?

或許你們可以談談政府市場？顯然，很多交易正在轉向雲端。JEDI 我想只是其中之一。考量你們在 Azure、以及該通路上的布局，請談談未來 6 到 12 個月這會是怎樣的機會，以及你們在邁入 2020 年時如何看待這個機會？

Yes. I think I'll add upon what I said earlier. Getting FedRAMP certifications is the first thing. Unless you have them, not much matters. So, we have done that. And also, in FedRAMP, there's a moderate level certification and there's a high impact. Having done both of them for ZIA, sorry, ZPA is both done; ZIA, we are at moderate, will get to high-impact shortly. The door is wide open for us leverage. And Azure with Microsoft partnership is a good opportunity, but we also work with, there's a fair amount of AWS out there. Very bullish on it. Remo, can I say that? A good team. I would say, if you asked me a year ago versus today, I feel we are significantly ahead of where I thought it would be.

是的。我想在我先前所說的基礎上再補充。第一件事是取得 FedRAMP 認證。如果沒有它，其他都不太重要。所以，我們已經完成了。另外，在 FedRAMP 裡有中等（moderate）等級認證，也有高影響（high impact）。ZPA 兩種等級我們都已完成；ZIA 目前在 moderate，將很快取得 high-impact。我們可以運用的機會之門已經大開。而透過與 Microsoft 的 Azure 夥伴關係是一個很好的機會，但我們也與 AWS 合作，市場上也有相當多的 AWS。我對此非常看好。Remo，我可以這麼說嗎？一個很好的團隊。我會說，如果你問我一年前與今天相比，我覺得我們已經顯著領先於我原本以為會達到的進度。

Our last question will come from Yun Kim with Rosenblatt Securities.

我們的最後一個問題將由 Rosenblatt Securities 的 Yun Kim 提出。

Congrats on the solid quarter. On the ZPA front, just wanted to ask about the competitive nature of that market. Are you seeing some of the same competitors of ZIA, for your ZPA product? And also, are you selling to the same department? Or are there typically 2 different buyers for ZPA and ZIA?

恭喜本季表現穩健。在 ZPA 方面，我想請教一下該市場的競爭態勢。就你們的 ZPA 產品而言，你們是否看到一些與 ZIA 相同的競爭對手？另外，你們是賣給同一個部門嗎？還是通常 ZPA 和 ZIA 會有兩個不同的採購決策者？

It's a good question. ZIA is generally driven by transformation. In our ideal world, we start from the CIO, go down to head of infrastructure who wants to transfer the network and security gets brought along, and it's a full-blown play. ZPA actually has a few different paths. I'll talk about 3 of them because it's very different opportunities. One case, that we go to the customer and say, "If your applications are going to the cloud, public cloud, like Azure and AWS, you don't need to go back through your data center, go direct through Zscaler." It's a good opportunity in that case. So, who is the buyer? It's actually generally head of infrastructure because he was providing that connectivity before. Number two, many customers say, "Yes, I'll look at cloud, but I have one problem to solve today. My remote access is VPN. I hate it. It's slow and it's not secure." So, replacing that, the VPN, the buyer could be security, the buyer could be networking. Third area, a very different buyer, M&A. When companies are bought, generally, they want to bring the networks together in the old world of network security. In the Zscaler world, you don't bring the networks together. You simply with ZPA brought access to each other's applications transparently. In that case, traditional IT is less of a buyer, you basically deal with the CIO level, but it's also sometimes the M&A team that's put in place to bring the 2 companies together. Some common buyers, some different buyers.

這是個好問題。ZIA 一般是由轉型所驅動。在我們理想的情況下，我們從 CIO 開始，往下到希望改造網路的基礎架構主管，並把資安部門一併帶進來，形成一個全面性的推動。ZPA 實際上有幾條不同的路徑。我會談其中 3 種，因為這些是非常不同的機會。其中一種情況是，我們去找客戶並說：「如果你的應用程式要上雲、上公有雲，例如 Azure 和 AWS，你不需要再繞回你的資料中心，直接透過 Zscaler 連出去即可。」在這種情況下是個很好的機會。那麼，誰是買方？通常其實是基礎架構主管，因為之前是他在提供那種連線能力。第二種，很多客戶會說：「是的，我會看雲端，但我今天有一個問題要先解決。我的遠端存取是用 VPN。我討厭它。它很慢而且不安全。」因此，用來取代 VPN 的方案，其買方可能是資安部門，也可能是網路部門。第三個領域是非常不同的買方：併購（M&A）。當公司被收購時，在傳統的網路安全世界裡，通常會想把兩邊的網路整合在一起。在 Zscaler 的世界裡，你不需要把網路整合在一起。你只要透過 ZPA，讓彼此能透明地存取對方的應用程式即可。在這種情況下，傳統 IT 較不會是買方；你基本上會在 CIO 層級對接，但有時也會是負責把兩家公司整合在一起的併購團隊。有些是共同的買方，也有些是不同的買方。

Thank you, gentlemen. That concludes our question-and-answer session, and I would like to turn the call back over to Mr. Jay Chaudhry for any closing remarks.

謝謝各位先生。問答環節到此結束，我想把電話交回給 Jay Chaudhry 先生，請他做結語。

Well, thank you all for your time, and we look forward to seeing you at our upcoming conferences this quarter. Thank you, again.

好的，感謝各位撥冗參與，我們期待在本季即將舉行的各場會議上與各位見面。再次感謝。

Thank you.

謝謝。

Thank you. Ladies and gentlemen, this concludes today's teleconference, and you may now disconnect. Please enjoy the rest of your day.

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。祝您今天剩餘時間愉快。