Palo Alto Networks,Inc。(PANW) 首席执行官 Nikesh Arora 在 2019年 第三季度业绩 - 收益电话会议记录

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Palo Alto Networks, Inc. (NYSE:PANW) Q3 2019 Results Earnings Conference Call May 29, 2019 4:30 PM ET

Palo Alto Networks,Inc。(纽约证券交易所代码:[PANW])2019年第三季度业绩收益电话会议2019年5月29日美国东部时间下午4:30

公司参与者

David Niederman - Vice President, Investor Relations
Nikesh Arora - Chairman and Chief Executive Officer
Kathleen Bonanno - Chief Financial Officer and Executive Vice President
Lee Klarich - Executive Vice President and Chief Product Officer

  • David Niederman - 投资者关系副总裁
  • Nikesh Arora - 董事长兼首席执行官
  • Kathleen Bonanno - 首席财务官兼执行副总裁
  • Lee Klarich - 执行副总裁兼首席产品官

电话会议参与者

Keith Weiss - Morgan Stanley
Gur Talpaz - Stifel
Walter Pritchard - Citi
Sterling Auty - JPMorgan
Ken Talanian - Evercore ISI
Andrew Nowinski - Piper Jaffray
Karl Keirstead - Deutsche Bank
Rob Owens - KeyBanc Capital Markets
Saket Kalia - Barclays Capital
Phil Winslow - Wells Fargo
Michael Turits - Raymond James
John DiFucci - Jefferies
Fatima Boolani - UBS
Matt Hedberg - RBC Capital Markets

  • 凯斯韦斯 - 摩根士丹利
  • Gur Talpaz - Stifel
  • 沃尔特普里查德 - 花旗
  • Sterling Auty - 摩根大通
  • Ken Talanian - Evercore ISI
  • Andrew Nowinski - Piper Jaffray
  • Karl Keirstead - 德意志银行
  • Rob Owens - KeyBanc Capital Markets
  • Saket Kalia - 巴克莱资本
  • Phil Winslow - 富国银行
  • Michael Turits - 雷蒙德詹姆斯
  • John DiFucci - Jefferies
  • 法蒂玛博拉尼 - 瑞银集团
  • 马特赫德伯格 - 加拿大皇家银行资本市场

会议主持员

Good day, and welcome to the Palo Alto Networks Fiscal Third Quarter 2019 Earnings Call. Today's conference is being recorded.
At this time, I would like to turn the conference over to David Niederman, Vice President, Investor Relations. Please go ahead.

美好的一天,欢迎来到Palo Alto Networks 2019年第三季度财报电话会议。 今天的会议正在录制中。

在这个时候,我想把会议转交给投资者关系副总裁David Niederman。 请继续。

大卫·尼德曼

Good afternoon, and thank you for joining us today on today's conference call to discuss Palo Alto Networks' fiscal third quarter 2019 financial results. This call is being broadcast live over the web and can be accessed on the Investors section of our website at investors.paloaltonetworks.com.
With me on today's call are Nikesh Arora, our Chairman and Chief Executive Officer; Kathy Bonanno, our Chief Financial Officer; and Lee Klarich, our Chief Product Officer.
This afternoon, we issued a press release announcing our results for the fiscal third quarter ended April 30, 2019. If you would like a copy of the release, you can access it online on our website.
We'd like to remind you that during the course of this conference call, management will make forward-looking statements, including statements regarding our financial guidance and modeling points for the fiscal fourth quarter and full fiscal year 2019; our competitive position and the demand and market opportunity for our products and subscriptions; benefits to us and our customers and timing of new products and subscription offerings, including those from our proposed acquisitions of Twistlock and PureSec; continued investment in our products; our ability to drive outsized growth rates; and trends in certain financial results, operating metrics, mixed shift and seasonality.
These forward-looking statements involve a number of risks and uncertainties, some of which are beyond our control, which could cause actual results to differ materially from those anticipated by these statements. These forward-looking statements apply as of today, and you should not rely on them as representing our views in the future. And we undertake no obligation to update these statements after this call.
For a more detailed description of factors that could cause actual results to differ, please refer to our quarterly report on Form 10-Q filed with the SEC on February 27, 2019, and our earnings release posted a few minutes ago on our website and filed with the SEC on Form 8-K.
Also, please note that certain financial measures we use on this call are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. For historical periods, we provided reconciliations of these non-GAAP financial measures to GAAP financial measures in the supplemental financial information that can be found in the Investors section of our website located at investors.paloaltonetworks.com.
And with that, I will turn the call over to Nikesh.

下午好,感谢您今天参加今天的电话会议,讨论Palo Alto Networks 2019财年第三季度财务业绩。此电话会在网上直播,可在我们网站的投资者部分访问投资者.paloaltonetworks.com。

我今天的电话会议是我们的主席兼首席执行官Nikesh Arora

Nikesh Arora

Thanks, David, and thank you, everyone, for joining us this afternoon for our fiscal third quarter 2019 results. I'm very excited to be here with you today. This call marks my fourth earnings call as CEO and brings me close to my 1 year anniversary with the company.
We've accomplished a great deal this year, furthering our leadership in cybersecurity and also setting the foundation for our future growth. When I joined Palo Alto Networks, my primary impression was how cybersecurity was poised to increase in importance to organizations globally, and also how the cloud revolution was set to impact the industry. The key themes in my first call were integration, cloud and more automation.
I am pleased to report that after nearly a year on the job, my confidence in these trends is stronger than ever. Moreover, I'm delighted that we have made progress across all these imperatives and will continue to do so.
On today's call, I will briefly go through our financials and then provide an update on our 3 strategic focus areas, securing the enterprise, securing the cloud, which is where I will spend most of my time given our announcements in this area today; and finally, securing the future with Cortex.
Starting with our financials. I'm pleased to report that as we continue our transformation, the team continues to deliver. We had yet another solid quarter. Fiscal Q3 revenues of $727 million represents year-over-year growth of 28%, and non-GAAP earnings per share increased by 26% to $1.31.
Diving into the details of our three focus areas. Let's first talk about securing the enterprise. We continue to see success around the world with our next-generation firewall offerings. Network security remains a top priority for companies and c-servs, and we continue to outperform this aspect of the market. Our new products introduced last quarter are performing well, and we've had a number of significant wins this quarter. Here's a couple I'd like to highlight.
We signed an 8 figure deal with a U.S. government agency. This is one of the 10 largest deals in the history of Palo Alto Networks, and contributed to our strength in product revenues this quarter.
We expanded our footprint more than $5 million each with 10 existing customers, many of whom bought a combination of new use cases and also hardware refreshes. This includes deals with one of the best-known brands in the world, a Fortune 50 technology company and a Fortune 500 consumer finance company.
And finally, we introduced DNS security service, a new attached subscription to our next-generation firewalls. DNS is already quickly gaining traction. And while it's early days to share metrics around this offering, I can safely say that if DNS were an independent start-up company, it would be getting a lot of attention. We're excited about its early success and optimistic for its future prospects.
Our core business continues to be strong with customers becoming more security aware and looking for simplicity in their infrastructure. We continue to make it easier to deploy more services from our firewalls in the most secure way, and you should expect us to add more capability here.

谢谢,大卫,谢谢大家今天下午参加2019财年第三季度业绩。今天很高兴能和你在一起。此次电话会议标志着我作为首席执行官的第四次财报电话会议,让我接近公司成立1周年。

今年我们取得了很大的成就,进一步巩固了我们在网络安全方面的领导地位,也为我们未来的发展奠定了基础。当我加入Palo Alto Networks时,我的主要印象是网络安全如何增加对全球组织的重要性,以及云革命如何影响行业。我第一次打电话的关键主题是集成,云和更多自动化。

我很高兴地报告说,经过近一年的工作,我对这些趋势的信心比以往任何时候都强烈。此外,我很高兴我们在所有这些要求方面取得了进展,并将继续这样做。

在今天的电话会议上,我将简要介绍我们的财务状况,然后提供有关我们3个战略重点领域的最新信息,保护企业,保护云,这是我今天在这个领域发布公告的大部分时间。最后,用Cortex确保未来。

从我们的财务开始。我很高兴地报告,随着我们继续进行转型,团队继续提供。我们还有另一个稳固的季度。第三季度财政收入为7.27亿美元,同比增长28%,非GAAP每股收益增长26%,达到1.31美元。

深入了解我们三个重点领域的细节。我们首先谈谈保护企业。我们通过下一代防火墙产品继续在全球取得成功。网络安全仍然是公司和c-serv的首要任务,我们继续超越市场的这一方面。我们上个季度推出的新产品表现良好,本季度我们取得了一些重大成功。这是我要强调的一对夫妇。

我们与一家美国政府机构签署了一份8人的协议。这是Palo Alto Networks历史上十大交易之一,也为本季度产品收入的增长做出了贡献。

我们现有10个客户,每个客户的面积超过500万美元,其中许多客户购买了新用例和硬件更新。这包括与世界上最知名品牌之一,财富50强科技公司和财富500强消费金融公司的交易。

最后,我们引入了DNS安全服务,这是我们下一代防火墙的新附加订阅。 DNS已经迅速获得牵引力。虽然现在是分享这个产品的指标的早期阶段,但我可以肯定地说,如果DNS是一家独立的初创公司,它将受到很多关注。我们对其早期成功感到兴奋,并对其未来前景感到乐观。

我们的核心业务继续保持强劲,客户越来越注重安全,并在基础架构中寻求简单性。我们继续以最安全的方式更轻松地从防火墙部署更多服务,您应该期望我们在此处添加更多功能。

Now let's talk about securing the cloud. We continue to be highly focused on delivering technology that enables our customers in the cloud journey. We plan to enable this by delivering a comprehensive set of security capabilities across a broad set of clouds and cloud configurations. This focus and our speedboat approach has led to tremendous progress over the past year.
With this, we are delighted to introduce Prisma. Prisma, announced this morning, brings our industry-leading cloud solutions within a single suite to help our customers in their cloud journey. Whether you want to connect your mobile users or branch offices to the cloud, protect your application and data in the public cloud, protect your SaaS applications, or are worried about upcoming trends in container security and service computing, Prisma has a solution.
Prisma is our approach to deliver industry leading cloud security products in an integrated fashion. It will address SaaS, API-based, and inline cloud security across all vectors. We will continue to build on Prisma over the coming quarters and years to make it the industry leading platform for the journey to the cloud.
We believe Prisma is already the number one suite of cloud security product in the world. This quarter, Prisma surpassed $0.25 billion billings run rate and has approximately 9,000 customers.
The products that comprise Prisma are already industry-leading in their own right. Take the VM series, we believe we deliver the most VMs across the public cloud landscape, with more than 60 six figure or higher deals this last quarter alone.
RedLock, which forms the basis of Prisma public cloud surpassed $100 million billings run rate this quarter. What is even more exciting is that we won more than 10 RedLock deals, each over $0.5 million, in the third quarter with over half of them in the Global 2000. This is a rare feat, to acquire a company, transform its revenue and its profile and trajectory in 6 months is unheard of.
Additionally, we're very excited about the new enhancements for our GlobalProtect Cloud Service. The next version includes cloud onboarding and management interface, and will be available in the Google Cloud platform shortly.
In this quarter, we continued our success on GPCS by securing 40,000 mobile users at the biggest car company in their category, 27,000 mobile users at a leading global consumer brand, and 25,000 mobile users at one of the largest high-tech companies in the world.
The success of RedLock is a key factor in making us #1 in cloud security and gives us the confidence that our introduction of the Prisma suite will bolster our ability to keep winning in this space. In addition, today's announcement of our intent to acquire Twistlock, which is the best in its category for container security, will bring best-of-breed products into the Prisma suite.
Containers are one of the fastest-growing segments of both private and public cloud workloads, and we're looking forward to offering container security to our customers. We also announced our intent to acquire PureSec, a leading provider of serverless security. These proposed acquisitions will further enhance our cloud security suite.

现在让我们谈谈保护云。我们将继续高度专注于提供技术,使我们的客户能够在云计算之旅中实现目标。我们计划通过在广泛的云和云配置中提供全面的安全功能来实现这一目标。这种关注和我们的快艇方法在过去一年中取得了巨大进步。

有了这个,我们很高兴介绍Prisma。今天早上宣布的Prisma将我们业界领先的云解决方案集中在一个套件中,以帮助我们的客户实现云计算之旅。无论您是想将移动用户或分支机构连接到云,保护您的应用程序和公共云中的数据,保护您的SaaS应用程序,还是担心容器安全和服务计算的即将到来的趋势,Prisma都有一个解决方案。

Prisma是我们以综合方式提供业界领先的云安全产品的方法。它将解决所有向量中的SaaS,基于API和内联云安全性。我们将在未来几个季度和几年内继续以Prisma为基础,使其成为云计算之旅的行业领先平台。

我们相信Prisma已经是世界上最大的云安全产品套件。本季度,Prisma超过了2.5亿美元的运营率,拥有约9,000名客户。

构成Prisma的产品本身已经处于行业领先地位。以VM系列为例,我们相信我们可以在公共云环境中提供最多的虚拟机,仅在上个季度就有超过60个六位数或更高的交易。

构成Prisma公共云基础的RedLock本季度超过了1亿美元的运营率。更令人兴奋的是,我们在第三季度赢得了超过10个RedLock交易,每个交易超过50万美元,其中超过一半在Global 2000中。这是一个罕见的壮举,收购一家公司,改变其收入和在6个月内的轮廓和轨迹是闻所未闻的。

此外,我们对GlobalProtect Cloud Service的新增强功能感到非常兴奋。下一版本包括云入门和管理界面,很快就会在Google云平台上推出。

在本季度,我们继续在GPCS上取得成功,为全球最大的汽车公司提供40,000名移动用户,全球领先消费品牌拥有27,000名移动用户,以及全球最大的高科技公司之一拥有25,000名移动用户。

RedLock的成功是使我们成为云安全第一的关键因素,让我们相信我们推出的Prisma套件将增强我们在这个领域继续获胜的能力。此外,今天宣布我们收购Twistlock的意图,这是集装箱安全类别中最好的,它将把最好的产品带入Prisma套件。

容器是私有云和公共云工作负载中增长最快的部分之一,我们期待为我们的客户提供容器安全性。我们还宣布了收购无服务器安全领先供应商PureSec的意图。这些拟议的收购将进一步增强我们的云安全套件。

Other examples of our ability to acquire companies and accelerate their performance is Demisto, which brings me to the third key focus area, securing the future with Cortex. We closed the acquisition of Demisto at the end of March, and in our first month operating together, I'm pleased to report that sales are already doing exceptionally well.
Demisto's multi-vendor orchestration capability, analytics, and playbooks are unique. They help our customers further automate their security operations and allow them to focus on solving the most complex threat.
This quarter was also notable for the introduction of Cortex XDR at the end of February. In its first quarter of availability, we closed over 50 deals, and the pipeline is strong. XDR is the successor of EDR.
XDR enables teams to stop sophisticated attacks and adapt their defenses to prevent future threats by integrating network, endpoint and cloud data to reduce the signal to noise ratio plaguing security analysts.
In fact, earlier today, MITRE released test results validating the capabilities of Traps and Cortex XDR. The result from MITRE's ATT&CK testing confirmed that Traps and Cortex XDR provides the broadest coverage against different attack techniques with the fewest missed attacks out of all 10 vendors recently evaluated.
We also had some notable Cortex XDR wins this quarter, including a 7-figure deal with a U.S. health insurance care organization with over 26,000 employees; a win at a major Asia-based airline, and a win with one of the largest cities in the world.
To wrap up, we had a solid quarter of enterprise execution with strong progress on the cloud and with the initial rollout of Cortex. We continue to see the opportunity to expand our market leadership to be one of the platforms for both today's security needs and to those tomorrow.
As my first year comes to an end, I would like to make a few observations and reiterate a few things. One, we will continue to expand our leader - lead as the number one cybersecurity company in the world, one that provides simple, integrated, and leading products help our customers.
The company I walked into had done a great job in building the world's best firewall and expanding their ability to secure the enterprise. Over the last year, in addition to strengthening our firewall business, we have made tremendous progress in areas, which will become equally, if not more important, the cloud and automation.
My year here has convinced me that we have the right strategy and the right team, and we're making the right moves. Transitions take time. This one will also take time. But there is no team better prepared than us to make this happen.
The new products and delivery mechanisms are more SaaS-based and have a different consumption model. In that, many cloud customers purchase annual subscriptions rather than multi-year deals. The brilliance of a SaaS model though is the annual recurring revenue stream.
As we evolve our business, maximizing this recurring revenue stream will be our primary focus. While this may impact total billings, we would expect to see better margin performance. And most importantly, underlying this trend is a going demand for our products, which is what matters.

我们收购公司和加速其业绩的能力的其他例子是Demisto,它带我进入第三个关键领域,通过Cortex确保未来。我们在3月底结束了对Demisto的收购,在我们合作的第一个月,我很高兴地报告说销售已经做得非常好。

Demisto的多供应商编排功能,分析和手册是独一无二的。它们可以帮助我们的客户进一步实现安全操作的自动化,并使他们能够专注于解决最复杂的威胁。

本季度也因2月底推出Cortex XDR而引人注目。在其第一季度的可用性中,我们完成了超过50笔交易,管道非常强劲。 XDR是EDR的继承者。

XDR使团队能够通过集成网络,端点和云数据来阻止复杂的攻击并调整其防御措施以防止未来的威胁,从而降低困扰安全分析师的信噪比。

事实上,今天早些时候,MITRE发布了验证Traps和Cortex XDR功能的测试结果。 MITRE的ATT和CK测试结果证实,Traps和Cortex XDR提供了针对不同攻击技术的最广泛覆盖,最近评估的所有10家供应商中的漏洞攻击最少。

本季度我们还获得了一些值得注意的Cortex XDR,包括与美国医疗保险组织达成7位数的协议,该组织拥有超过26,000名员工

Reading some of your notes, I know that you're watching the internal management moves we are making. You should know that any leadership moves that we're making are being made in a thoughtful manner and for the right reasons.
Rest assured, while I might not have spent time in cybersecurity, I know how to build great teams. This is an area me and the team are extremely vigilant and focused on.
I am confident that one year out, we are stronger, we are better focused, a more robust product roadmap, and our teams are poised to win. This is a time to believe in our plans and our ability to execute and our strategy to win the increasing addressable market in our industry and our quest to increase our lead as the number one enterprise security company in the world.
And with that, I'll turn the call over to Kathy.

阅读你的一些笔记,我知道你正在观察我们正在进行的内部管理动作。 你应该知道,我们所做的任何领导动作都是以深思熟虑的方式和正确的理由进行的。

请放心,虽然我可能没有花时间在网络安全上,但我知道如何建立优秀的团队。 这是我的一个领域,团队非常警惕和专注。

我相信,一年后,我们更强大,我们更专注,更强大的产品路线图,我们的团队准备赢得胜利。 现在是时候相信我们的计划和我们的执行能力以及我们的战略,以赢得我们行业中日益增长的可寻址市场,并寻求增加我们作为全球头号企业安全公司的领先地位。

有了这个,我会把电话转给凯西。

Kathleen Bonanno

Thank you, Nikesh. Before I start, I'd like to note that except for revenue and billings figures, all financial figures are non-GAAP, and growth rates are compared to the prior year period unless stated otherwise. All current and prior periods financials discussed are reflected under ASC 606 as we adopted the new standard as of August 1, 2018.
In the third quarter, we continued to add new customers at a healthy clip and further expand our existing base. We did this while balancing investments in our recently acquired businesses and maintaining a focus on profitability.
In Q3, total revenue grew 28% to a record $726.6 million. Looking at growth by geography. The Americas grew 28%, EMEA grew 26% and APAC grew 29%. Q3 product revenue of $278.4 million grew 28% compared to the prior year.
Our SaaS-based subscription revenue of $258.8 million increased 35%. Support revenue of $189.4 million increased 20%. In total, subscription and support revenue of $448.2 million increased 28% and accounted for 62% share of total revenue.
Turning to billings. Q3 total billings of $821.9 million increased 13%. Q3 current billings were $799.5 million net of acquired deferred revenue, up 25% year-over-year. The dollar weighted contract duration for new subscription and support billings in the quarter remains at approximately 3 years, but declined by 4 months year-over-year due to the strength of our cloud business and fewer multi-year deals. Total deferred revenue at the end of Q3 was $2.6 billion, an increase of 27%.
In addition to robust new customer acquisition, we continue to increase our wallet share with existing customers. Our top 25 customers, all of which made a purchase this quarter, spent a minimum of $38.7 million in lifetime value in Q3, a 35% increase over the $28.7 million in Q3 of fiscal '18.
Q3 gross margin was 76.5%, which was up 30 basis points compared to last year. Q3 operating margin was 20.9%, a decline of 50 basis points year-over-year and includes a headwind of approximately $7 million of net expense associated with our recent acquisitions. We ended the third quarter with 6,503 employees.
On a GAAP basis for the third quarter, net loss declined by 50% to $20.2 million or $0.21 per basic and diluted share. Non-GAAP net income for the third quarter grew 30% to $130.1 million or $1.31 per diluted share. Our non-GAAP effective tax rate for Q3 was 22%.
Turning to cash flows and balance sheet items. We finished April with cash, cash equivalents and investments of $3.7 billion. Q3 cash flow from operations of $296.4 million increased 23%. Free cash flow was $276.1 million, up 30% at a margin of 38%.
Adjusting for cash charges associated with our headquarters in Santa Clara, free cash flow in the quarter was $279.8 million, up 27% at a margin of 38.5%. Capital expenditures in the quarter were $20.3 million. DSO was 51 days, a decline of 6 days during the prior year period.
Turning now to guidance and modeling points. For fiscal Q4 '19, we expect revenue to be in the range of $795 million to $805 million, an increase of 21% to 22% year-over-year. We expect Q4 '19 non-GAAP EPS to be in the range of $1.41 to $1.42, which includes expenses related to the Demisto acquisition and the proposed acquisitions of Twistlock and PureSec using approximately 100 million to 102 million shares.

谢谢,Nikesh。在开始之前,我想指出,除收入和账单数字外,所有财务数据均为非GAAP,并且增长率与去年同期相比,除非另有说明。由于我们自2018年8月1日采用新标准,所讨论的所有当前和前期财务报告均反映在ASC 606下。

在第三季度,我们继续以健康的方式增加新客户,并进一步扩大我们现有的基础。我们这样做是在平衡我们最近收购的业务的投资并保持对盈利能力的关注。

在第三季度,总收入增长了28%,达到创纪录的7.266亿美元。从地理角度看增长。美洲增长28%,EMEA增长26%,亚太地区增长29%。第三季度产品收入为2.784亿美元,比上年增长28%。

我们基于SaaS的订阅收入为2.588亿美元,增长了35%。支持收入1.894亿美元,增长20%。总计4.48亿美元的订阅和支持收入增长了28%,占总收入的62%。

转向账单。第三季度的总收入为8.219亿美元,增长了13%。第三季度当前账单为已收购递延收入净额7.995亿美元,同比增长25%。本季度新订阅和支持账单的美元加权合约期限约为3年,但由于我们的云业务实力较强且多年期交易较少,因此同比下降4个月。第三季度末的递延收入总额为26亿美元,增长了27%。

除了强大的新客户收购外,我们还继续增加现有客户的钱包份额。我们排名前25位的客户,本季度全部购买,第三季度的终身价值至少为3870万美元,比18财年第三季度的2870万美元增长了35%。

第三季度毛利率为76.5%,较去年上升30个基点。第三季度运营利润率为20.9%,同比下降50个基点,其中包括与我们近期收购相关的净费用​​约700万美元的逆风。我们在第三季度结束时拥有6,503名员工。

按GAAP计算,第三季度净亏损下降50%至2,020万美元或每基本和摊薄后每股0.21美元。第三季度非美国通用会计准则净利润增长30%至1.310亿美元或每股摊薄收益1.31美元。我们对第三季度的非GAAP有效税率为22%。

谈谈现金流量和资产负债表项目。我们在4月完成了现金,现金等价物和37亿美元的投资。第三季度运营现金流量为2.964亿美元,同比增长23%。自由现金流为2.761亿美元,增长30%,保证金为38%。

调整与我们位于圣克拉拉的总部相关的现金费用,本季度的自由现金流为2.798亿美元,增长27%,保证金为38.5%。本季度的资本支出为2030万美元。 DSO为51天,比去年同期减少了6天。

现在转向指导和建模点。对于19财年第四季度,我们预计营收将在7.95亿美元至8.05亿美元之间,同比增长21%至22%。我们预计Q4 '19非GAAP每股盈利将在1.41美元至1.42美元之间,其中包括与Demisto收购以及拟使用约1亿至1.02亿股收购Twistlock和PureSec的相关费用。

Before I conclude, I'd like to provide some additional modeling points. We expect full year billings to grow approximately 21% year-over-year, which includes the impact of shorter contract lengths. Our Q4 non-GAAP EPS guidance includes approximately $15 million of net expense or $0.12 per share, attributable to a full quarter run rate of our Demisto acquisition and the proposed acquisitions of Twistlock and PureSec. Our Q4 EPS guidance also includes an expected $0.02 impact attributable to U.S. tariffs on Chinese origin goods.
Excluding these acquisition and tariff expenses, we would expect non-GAAP EPS to be in the range of $1.55 to $1.56. We expect our Q4 non-GAAP effective tax rate to remain at 22%. CapEx in Q4 will be approximately $35 million to $40 million with approximately $20 million related to our headquarters in Santa Clara.
Finally, turning to free cash flow. For the full year, we continue to expect an adjusted free cash flow margin of approximately 36%. The adjustments include onetime items such as the expected settlement of our 2019 convertible debt and cash flow associated with the additional investment in our headquarters in Santa Clara.
You can review these adjustments to free cash flow in our supplemental financial information document, which is posted on our Investor Relations website.
With that, I'd like to open the call for questions. Operator, please poll for questions.

在结束之前,我想提供一些额外的建模点。我们预计全年账单同比增长约21%,其中包括缩短合约长度的影响。我们的第四季度非GAAP每股盈利指引包括约1500万美元的净费用或每股0.12美元,这归因于我们收购Demisto的全季度运行率以及拟收购的Twistlock和PureSec。我们的第四季度每股盈利预测还包括美国对中国原产货物征收关税的预期0.02美元影响。

如果不计入这些收购和关税费用,我们预计非GAAP每股收益将在1.55美元至1.56美元之间。我们预计我们的第四季度非GAAP有效税率将维持在22%。第四季度的资本支出约为3500万美元至4000万美元,其中约2000万美元与我们位于圣克拉拉的总部相关。

最后,转向自由现金流。对于全年,我们继续预计调整后的自由现金流利润率约为36%。调整包括一次性项目,例如我们2019年可转换债务的预期结算以及与我们位于圣克拉拉总部的额外投资相关的现金流量。

您可以在我们的补充财务信息文档中查看这些对自由现金流量的调整,该文档发布在我们的投资者关系网站上。

有了这个,我想打开问题的电话。接线员,请查询问题。

问答环节

Thank you. [Operator Instructions] We'll go first to Keith Weiss with Morgan Stanley.

谢谢。 [操作员说明]我们将首先与摩根士丹利一起去Keith Weiss。

Keith Weiss

除了第四季度按公认会计原则记录的遗留经营费用外,我们的税前费用约为3500万美元,主要与欧盟反竞争索赔的720万美元和重组中的2410万美元有关,其中包括我们从欧洲,中东和非洲地区的三个地点退出。

扣除这些费用后,我们的美洲业务部门实现营业收益率12.7%,比去年第四季度的13.0%低30个基点。更高的运费和在里士满实施SAP的挑战造成了下降。

由于前面提到的SAP实施,美洲第四季度连续第三季度从第三季度的13.5%下降了80个基点。美洲OE美元较去年减少约200万美元,较上一季度减少400万美元。

欧洲的营业利润率为10.2%,高于去年的9.7%和上一季度的7.9%。 OE美元比去年增加了100万美元,比上一季度的欧洲,中东和非洲地区增加了600万美元,主要原因是铅成本和销量下降。我们亚洲业务的营业利润率在今年第四季度下降460个基点,从去年第四季度2.5%的利润下降2.1%,并且比上一季度的利润下降1%。

由于交易量和外汇交易量减少,亚洲的OE美元分别比去年同期和上一季度减少约300万美元和200万美元。包括Alpha在内的营业收入增长14%反映了整个季度业绩的影响,以及第四季度无形资产摊销550万美元的运营费用。

请转到幻灯片13.如之前在幻灯片12中所反映的那样,我们在第四季度调整后的综合营业收入为6900万美元,而传统的EnerSys业务与去年相比减少了6%。我们调整后的综合净收益为5450万美元,比上一年度高出200万美元。调整后净收入的改善是税收减少的结果。

我们第四季度调整后的有效所得税税率为13%,低于去年同期的约20%,低于上一季度的17%。离散税项导致大多数这些变化。 2019财年的全年税率为17%,低于2020财年预期的18%至20%。

阿尔法在调整了利息税和稀释向卖方发行的股票之后,总体上调整了营业收入1400万美元或收入的10.2%,达到1.36亿美元,在扣除300万美元的其他重组库存核销和收购成本后,Alpha增加了0.15美元。对购买会计中记录的无形资产进行400万美元的税后摊销。

包括阿尔法在内的每股盈利增长15%至1.43美元,因净利润增加和流通股增加。我们预计2020年第一财季将有约4370万美元的加权平均流通股,其中包括Alpha交易中发行的近120万股,扣除第四季度回购的40万股。提醒我们,我们的董事会授权仍有近9400万美元的股票回购。...

Excellent. Thank you guys for taking the question. And really solid quarter. Nikesh, I think you might be understating sort of operating well through transition with 27% product revenue growth against a really tough comp. That's a truly impressive number.
I wanted to ask you one question and one to Kathy. The question for you is on the M&A strategy. One of the things I think investors have been looking for, for a while is somebody who could effectively consolidate demand within security. It sounds like the individual companies are doing - or individual solutions that you bought, like RedLock, are doing really well.
Could you talk to us about the progress that you've made in sort of creating a suite or getting people to buy across the portfolio, and where the new acquisitions kind of fit into that suite and sort of how you expect to sort of catalyze that activity across the board?
And then, for Kathy, in terms of the shorter duration, can you give us some kind of indications on sort of where that impacted? Was it across the board for both sort of new subscriptions as well as maintenance or is that just focused on kind of just the newer stuff?

优秀。谢谢你们提出这个问题。而且非常稳固的季度。 Nikesh,我认为你可能会通过转型来低估运营效率,产品收入增长27%,而且非常糟糕。这真是令人印象深刻的数字。

我想问你凯茜的一个问题和一个问题。对你而言,问题在于并购战略。我认为投资者一直在寻找的事情之一是能够有效巩固安全需求的人。这听起来像个别公司正在做的 - 或者你购买的个人解决方案,如RedLock,做得非常好。

您能否与我们讨论您在创建套件或让人们在整个产品组合中进行购买所取得的进展,以及新的收购类型适合该套件的方式,以及您希望如何促进全面的活动?

然后,对于Kathy来说,就持续时间较短而言,你能否给我们一些关于受影响的地方的迹象?对于新的订阅和维护,还是只关注那些新的东西?它是全面的吗?

Nikesh Arora

Thank you, Keith. Thank you for your comment, and thank you for the question. Let me start talking - answering your question around the acquisitions and the launch of Prisma today. As you know, about a year ago we started talking about how there is going to be a big move to the cloud, and we were getting ready for it. We owned Evident, Evident only worked in AWS. We felt we needed to complement that with more capabilities, so we acquired RedLock.
RedLock had de minimis revenue 6 months ago. And just the sheer success of RedLock that we've seen the last 6 months where we've seen customers close deals within a week, I think that's unheard of in the cybersecurity space. You walk in. You show the customer a solution, and a week later you walk out with a purchase order.
So that's emboldened us with this notion that there's not enough cloud security solutions being offered to customers who are making this journey to the cloud. And if you look at the customers 2 years ago, they were talking about public cloud. Today, they're talking about containers. And if you looked in the market, there are only 2 players, and Twistlock was by far the leader.
And talking to customers, they still want to buy best of breed. So, our team made the decision that it's important for us to acquire Twistlock and integrate that with RedLock as soon as possible. So you will see us integrating both RedLock and Twistlock.
And then, the next conversation people want to talk about is serverless, and we looked at the market, and PureSec, by far, is the leader in serverless computing. Serverless security have decided to acquire it at the same time.
We intend to integrate this as soon as possible thereby offering a fully sort of integrated public cloud security suite where customers don't have to buy piece products on containers or private cloud, public cloud, on-prem, SaaS, or serverless.
And that's where we see the consolidation from a cloud security perspective. We've also integrated pieces of [indiscernible] for a cloud service with Aperture so you can see in-line SaaS security as opposed just API, which Aperture offers. So we are driving hard and fast to try and keep trading integrations so customers don't have to buy a piece product and spend time integrating.
The problem with the cybersecurity industry has been, for a $140 billion industry, with $80 billion in services and $60 billion in products. That $80 billion is spent integrating the $60 billion product, and we want to make sure that we don't make this mistake going into cloud and that's kind of what underpins our acquisition strategy as it relates to consolidating these products and as it relates to providing a platform for cloud security. Kathy?

谢谢,基思。感谢您的评论,并感谢您提出的问题。让我开始谈论 - 回答你关于收购和今天推出Prisma的问题。如您所知,大约一年前,我们开始讨论如何实现云计算的大动作,我们已经为此做好了准备。我们拥有Evident,Evident仅在AWS工作。我们认为我们需要通过更多功能来补充它,因此我们收购了RedLock。

RedLock在6个月前获得了微量收入。我们在过去的6个月中看到客户在一周内完成交易,我认为RedLock的绝对成功,我认为这在网络安全领域是闻所未闻的。你走进去了。你向顾客展示了一个解决方案,一周后你带着一份采购订单走了出去。

因此,我们认为没有足够的云安全解决方案提供给正在进入云端的客户,这让我们更加胆大妄为。如果你看看2年前的客户,他们谈的是公共云。今天,他们谈的是容器。如果你看市场,只有2名玩家,Twistlock是迄今为止的领导者。

与客户交谈时,他们仍然希望购买最好的产品。因此,我们的团队决定让我们尽快收购Twistlock并将其与RedLock集成。所以你会看到我们整合了RedLock和Twistlock。

然后,人们想要讨论的下一个对话是无服务器,我们看了市场,到目前为止,PureSec是无服务器计算领域的领导者。无服务器安全性已决定同时获取它。

我们打算尽快整合这一点,从而提供完整的集成公共云安全套件,客户无需在集装箱或私有云,公共云,本地,SaaS或无服务器上购买零件产品。

这就是我们从云安全角度看待整合的地方。我们还使用Aperture为云服务集成了[音频不清晰]部分,因此您可以看到内部SaaS安全性,而不仅仅是Aperture提供的API。因此,我们正在努力和快速地尝试并保持交易集成,以便客户不必购买一件产品并花时间整合。

对于价值1400亿美元的行业来说,网络安全行业的问题是服务800亿美元,产品600亿美元。这800亿美元用于整合600亿美元的产品,我们希望确保我们不会将这个错误带入云计算,而这正是我们收购战略的基础,因为它与整合这些产品有关并且与提供这些产品有关云安全平台。凯西?

Kathleen Bonanno

Yeah. And Keith, on the contract length question. As you mentioned, we did see a decline in contract length -- or as we mentioned, of 4 months year-over-year. And there are a couple of things driving that.
One is that we had very strong performance in our cloud products. The mix of our Prisma public cloud this quarter was very strong. We saw terrific growth as Nikesh mentioned in his prepared remarks. So we're really excited about the trajectory of that business and the opportunity for us there.
Additionally, we are focusing more on doing - making sure that we have good annual recurring revenue in our contracts, and that's our primary focus this year. And so some of it is customer preference. Some of it is us trying to structure deals to maximize that annual recurring revenue stream.
And so both of those, the combination of those things are driving the average contract length down, and we think both of those things are really terrific for our business, and we're very pleased with the results.

是啊。和基思,在合同长度问题上。正如您所提到的,我们确实看到合同期限下降 - 或者正如我们所提到的,同比下降4个月。还有一些事情可以推动这一点。

一个是我们的云产品具有非常强大的性能。本季度我们的Prisma公共云的组合非常强大。我们看到Nikesh在他准备好的言论中提到了极大的增长。因此,我们对该业务的发展轨迹以及我们在那里的机会感到非常兴奋。

此外,我们更注重做 - 确保我们的合同中每年都有良好的经常性收入,这是我们今年的主要关注点。其中一些是客户偏好。其中一些是我们试图构建交易以最大化年度经常性收入流。

所以这两者,这些事情的组合正在推动平均合同长度下降,我们认为这两件事对我们的业务来说真的很棒,我们对结果非常满意。

会议主持员

We'll go next to Gur Talpaz with Stifel.

我们将和Stifel一起去Gur Talpaz旁边。

Gur Talpaz

Great, thanks for taking my question. I have a question here on Twistlock. And Nikesh, I was hoping you could expand a bit on the strategy. So what I want to understand is, do you view container ecosystems as a natural extension of existing networking environments, i.e., do you see this is as kind of a natural fit alongside what you already did from a policy management standpoint?
And then taking it one step further, can you talk about how you plan to attack the DevSecOps environments where Twistlock currently plays?

太好了,谢谢你提出我的问题。 我在Twistlock上有一个问题。 和Nikesh,我希望你能在策略上稍微扩展一下。 所以我想要了解的是,您是否将容器生态系统视为现有网络环境的自然延伸,即您是否认为这与您从政策管理角度所做的一样自然适应?

然后更进一步,你能谈谈你打算如何攻击Twistlock当前播放的DevSecOps环境吗?

Nikesh Arora

So Gur, I have always known that I should try and give only two, three sentence answer to your question, and then Lee jump in because I know you're going to throw it to me technically, otherwise.
But I will tell you that the cloud world is different. In the cloud world, you have to shift left. We have to go DevSecOps and that's where Twistlock plays because it goes to the entire bill, run and deploy process. And that's why I think Twistlock is important. That’s why we think DevSecOps is important.
Twistlock has an on-prem solution. RedLock has a SaaS solution. You can logically expect us to be present in both environments, because this allows us to look at both public cloud and private cloud. How am I doing so far, Gur? So far, so good?

所以Gur,我一直都知道我应该尝试只给出两个,三个句子回答你的问题,然后Lee跳进来,因为我知道你会在技术上把它扔给我,否则。

但我会告诉你,云世界是不同的。 在云世界中,你必须向左移动。 我们必须去DevSecOps,这就是Twistlock播放的地方,因为它涉及整个账单,运行和部署过程。 这就是我认为Twistlock很重要的原因。 这就是我们认为DevSecOps很重要的原因。

Twistlock有一个本地解决方案。 RedLock有一个SaaS解决方案。 您可以逻辑地期望我们在两种环境中都存在,因为这使我们可以同时查看公共云和私有云。 到目前为止,我怎么做,古尔? 到现在为止还挺好?

Gur Talpaz

You're doing great. Yes. So far, so good.

你做得很棒。 是。 到现在为止还挺好。

Nikesh Arora

Now I'm going to take the high ground and hand it over to Lee.

现在我要占据制高点,把它交给李。

Lee Klarich

I appreciate that. I think maybe the way to think about this is, with cloud applications, they're increasingly being architected with multiple different sort of cloud services underpinning them. And whether that's PaaS services, Infrastructure-as-a-Service, VMs, increasingly containers are a foundational component of these architectures.
Serverless is emerging as one of the key elements. And being able to combine all of those together into a single cloud security suite integrated together that allows the customer to see from the shift left at the bill stage all the way to run time, the entirety of their application, how it's designed, architected and secured, is a very powerful capability that we're able to bring together with Twistlock as a core component of that, but also PureSec for serverless and, of course, RedLock from a cloud platform perspective.

我很感激。 我想也许考虑这个问题的方法是,在云应用程序中,它们越来越多地被构建为支持它们的多种不同类型的云服务。 无论是PaaS服务,基础架构即服务,虚拟机,越来越多的容器都是这些架构的基础组件。

无服务器正在成为关键要素之一。 并且能够将所有这些组合在一起构成一个集成在一起的云安全套件,使客户能够从票据阶段的左移一直看到运行时间,整个应用程序,它的设计,架构和 secure,是一个非常强大的功能,我们能够将Twistlock作为其核心组件,而PureSec用于无服务器,当然还有RedLock从云平台的角度来看。

Gur Talpaz

That's super helpful Lee. I appreciate it. Nice job Nikesh. Thank you.

那是超级有用的李。 我很感激。 好工作Nikesh。 谢谢。

会议主持员

We'll go next to Walter Pritchard with Citi.

我们将和花旗一起去沃尔特普里查德。

Walter Pritchard

Hi, thanks. Just a question for you, Nikesh. On the product side, I guess one concern that may arise here. You've done a lot of M&A, it feels like your cloud strategy is largely inorganic.
How do you remain convinced and seat-building the culture of building products organically to either - should I keep these products going into the future? Or be able to address some of the new needs that come up down the road without having to spend this kind of money on M&A?

你好谢谢。 Nikesh,只是一个问题。 在产品方面,我想这里可能出现一个问题。 你已经做了很多并购,感觉你的云战略主要是无机的。

您如何保持对所有产品的有机建筑文化的信任和座椅建设 - 我应该将这些产品保留在未来吗? 或者能够解决一些新的需求,而不必在并购上花这么多钱?

Nikesh Arora

I think, Walter, that's a fair question. But if you look at our core business of firewalls, we're doing really, really good in firewalls. Our teams are innovating. We had a DNS security as-a-service, as a subscription. We are working on some more interesting things. Hopefully, we shall be able to share more about them in upcoming quarters.
But there is innovation going on for sure in our core business where our firewall capabilities and other capabilities around it are developing. That's where we have strength. We have hundreds of engineers, if not thousands, working on our core networking capability and firewall security capability.
We also had bills capability around endpoint with Traps and Secdo, which as I mentioned, we are rated best in the number of unmissed attack vectors as far as MITRE's test was concerned. So clearly, we have that core capability. Cloud was an area where all of you are asking the question, how will Palo Alto networks make the transition to cloud?
Do we have the core capability. I think it's fair to say we have used the RedLock contingent and the evident team to create the core for the cloud, but at the same time, we didn't want to wait. With Twistlock having ordered 250 customers who are using them for container security, we didn't want to wait.
We also, at the same time, launching a vulnerability scanning capability in RedLock, which is the early steps towards containers. But our customers want the entire thing. They want the full capability for container security. They want best-of-breed. So it became incumbent and imperative that we create this combination of RedLock and Twistlock.
And honestly, if you go back and think, the price we paid for RedLock versus the fact that it crossed $100 million run rate this quarter means we must have done a good deal because in two quarters, we're able to take that product and deploy it to our -- across our entire sales force.
Yes, we have cloud capability. We have it in our sales force. We have it in our RedLock team. We have it in our Twistlock team. We should be able to put the RedLock, and Twistlock, and PureSec capability together, and use our core team and our cloud sales teams to be able to go and create more revenue in this product.
Because I think right now, there is a TAM of over $2 billion in cloud security, which is unserved. There are not enough products. There are not enough salespeople going out and demonstrating the product of to those customers.
So right now, it's really a question of sort of a land grab, going out there and demonstrating the product to the customer, being able to deploy in their enterprise, and being able to have people who understand these products well enough to be able to solve them.

我想,沃尔特,这是一个公平的问题。但是,如果你看看我们的防火墙核心业务,我们在防火墙方面确实做得非常好。我们的团队正在创新。我们有一个DNS安全即服务,作为订阅。我们正在研究一些更有趣的事情。希望我们能够在未来几个季度分享更多有关它们的信息。

但是我们的核心业务肯定会有创新,我们的防火墙功能和其他功能正在开发中。这就是我们有实力的地方。我们有数百名工程师,如果不是数千名工程师,他们正致力于我们的核心网络功能和防火墙安

我们还有使用Traps和Secdo的端点周围的账单功能,正如我所提到的,就MITRE的测试而言,我们在未被发现的攻击向量中被评为最佳。很明显,我们拥有核心能力。 Cloud是一个大家都在问这个问题的领域,Palo Alto网络将如何向云迁移?

我们是否具备核心能力?我认为我们使用RedLock队伍和明显的团队为云创建核心是公平的,但与此同时,我们不想等待。由于Twistlock已经订购了250个使用它们进行集装箱安全的客户,我们不想等待。

同时,我们还在RedLock中启动了漏洞扫描功能,这是容器的早期步骤。但是我们的客户想要整件事。他们希望获得容器安全的全部功能。他们想要最好的。因此,我们创建RedLock和Twistlock的组合变得有责任和必要。

老实说,如果你回过头来想一想,我们为RedLock支付的价格与它在本季度超过1亿美元的运行费率这一事实意味着我们必须做得很好,因为在两个季度里,我们能够拿出那个产品和在我们的整个销售团队中部署它。

是的,我们有云功能。我们在销售队伍中拥有它。我们在RedLock团队中拥有它。我们在Twistlock团队中拥有它。我们应该能够将RedLock,Twistlock和PureSec功能整合在一起,并使用我们的核心团队和我们的云销售团队,以便在此产品中创造更多收入。

因为我现在想,云安全性的TAM超过20亿美元,这是没有用的。没有足够的产品。没有足够的销售人员外出并向这些客户展示产品。

所以现在,这真的是一个土地抢夺的问题,走出去向客户展示产品,能够在他们的企业中部署,并且能够让那些了解这些产品的人能够做到足够能够解决它们。

Walter Pritchard

Great. And then, Kathy, maybe a follow-up just on the duration side. Is it as simple as sort of us thinking about the unattached products are going to kind of go to a 1 year duration over time versus the subscriptions that are attached to the firewalls are going to be 3 year? And as we kind of model out this to revenue streams, we would see the duration go as that mix goes?

非常好。 然后,凯西,也许是在持续时间方面的后续行动。 它是否像我们一样认为未连接的产品随着时间的推移会持续1年而不是附加到防火墙的订阅将是3年? 而且,由于我们将这种模型建模为收入流,我们会看到持续时间随着混合而变化?

Kathleen Bonanno

Yeah. Walter, I think you're correct that over time, as our business becomes more cloud-based and more SaaS subscription-based, we will see our customers wanting to buy the way they buy other SaaS products, and that tends to be more towards the 1 year duration. So over time, I do think that, that shift will happen.
In this quarter, though, and this year, we've also been very focused on the rest of the business and just making sure that we're doing deals that preserve that annual recurring revenue stream, and Nikesh is raising his hand. He wants to jump in.

是啊。 沃尔特,我认为你是正确的,随着时间的推移,随着我们的业务变得更加基于云,更多基于SaaS订阅,我们将看到我们的客户想要购买他们购买其他SaaS产品的方式,而这往往更倾向于 1年的持续时间。 所以随着时间的推移,我确实认为,这种转变将会发生。

然而,在本季度,今年,我们也非常专注于其他业务,只是确保我们正在进行保持年度经常性收入流的交易,并且Nikesh正在举手。 他想跳进去。

Nikesh Arora

I'm going to jump in, Walter. I think, look, I know you guys are all getting excited about the billings number. And trust me, we stated it left, right and center to make sure that we were not missing anything in the billings number. I will tell you the underlying fundamentals of our business continue to be strong. We like the customer interest, we like the fact that they want to buy more security services from us.
The two effects that are happening, one is clearly the unattached product effect, which is we're seeing better-than-expected growth and you're seeing shorter duration that those.
And then, second is, to be honest, we are trying to do more new business and less business of going to our existing customers and doing multi-year bundle deals with large discounts. We've told the sales force that we like them to go out and get new business.
As a consequence, we're not doing that many - as many, not that many, as many long deals with large discounts that we used to do in the past. And I think I said that I can't be more explicit than saying, we expect, over time, that our margins should do better as a consequence of that. And it will have an impact in the way you look at -- as the way billings mechanically calculate themselves.

沃尔特,我要跳进去。我想,看,我知道你们都对这个账单号码感到兴奋。相信我,我们说它左,右和中心,以确保我们没有错过任何数字。我会告诉你,我们业务的基本面仍然很强劲。我们喜欢客户的兴趣,我们喜欢他们想从我们这里购买更多的安全服务。

正在发生的两种影响,一种显然是单独的产品效应,即我们看到的增长好于预期,并且您看到的持续时间更短。

然后,第二是,说实话,我们正在努力做更多的新业务,减少去现有客户的业务,并以大幅折扣进行多年捆绑交易。我们告诉销售人员,我们希望他们出去开展新业务。

因此,我们并没有做那么多 - 很多,而不是那么多,就像我们过去曾经做过的许多长期折扣一样。而且我想我说我不能更明确地说,我们期望,随着时间的推移,我们的利润应该做得更好。它会对你看待的方式产生影响 - 就像票据机械计算自己的方式一样。

会议主持员

And we'll go next to Sterling Auty with JPMorgan.

我们将与摩根大通一起去Sterling Auty。

Sterling Auty

Boy, I had a different question lined up, but after that answer, it really begs the question if everything does start to triangulate towards more of an annual contract versus a 3 year deal, shouldn't that just weigh on your cash flow growth until you succeed in kind of transitioning through that process?

男孩,我有一个不同的问题排成一列,但在那个答案之后,如果一切都开始三角测量更多的年度合同而不是3年的交易,那真的会引起一个问题,不应该只是衡量你的现金流量增长直到 你成功地通过这个过程过渡了吗?

Nikesh Arora

Look, if everything happened overnight, yes. I think there's going to be an orderly transition over time as the proportion of our non-attached business rises and as we continue to manage our long-term core business. So yes, will our cash flow profile change? Yes. Will it improve our margins? Yes.
And that's how you transition from a business, which has been a very hardware-focused business, to a business that becomes a long-term subscription and SaaS-oriented business.

看,如果一切都在一夜之间发生,是的。 随着我们非附属业务的比例上升以及我们继续管理我们的长期核心业务,我认为随着时间的推移会有一个有序的过渡。 是的,我们的现金流量表会改变吗? 是。 它会改善我们的利润吗? 是。

这就是您从一个以硬件为中心的业务转变为一个成为长期订阅和面向SaaS的业务的业务的方式。

Kathleen Bonanno

But I'll just add that the reason we're focused on doing this is because that we believe it's ultimately better for us in the long run financially and will improve our cash flows.

但我要补充一点,我们专注于这样做的原因是因为我们认为从长远来看,这对我们来说最终会更好,并且会改善我们的现金流。

Nikesh Arora

Sterling, every analyst I talked to in the last month - 9 months, has asked me this question saying, when will Palo Alto Networks become a ratable business? When will you become a SaaS business so you can enjoy the multiples that does SaaS businesses enjoy?
Well SaaS businesses enjoy a multiple and have a certain financial profile. So you can't have your cake and eat it too. You want me to transition to that, it's going to involve a transition.

Sterling,我在上个月谈过的每一位分析师 - 9个月,都问过我这个问题,帕洛阿尔托网络什么时候会成为一个有竞争力的业务? 您何时成为SaaS业务,以便享受SaaS业务所享有的倍数?

SaaS企业享有多元化且具有一定的财务状况。 所以你不能吃蛋糕也不能吃。 你希望我过渡到那个,它将涉及过渡。

Sterling Auty

That's fair enough. One follow-up in terms of the business in the quarter. Looking at that support revenue growth, one question that pops to mind is, how was the linearity in the quarter? And was things just more back-end loaded and perhaps that caused a lower support revenue just on the timing and some of the product revenue that you were able to close?

这很公平。 本季度业务的一个后续行动。 考虑到支持收入的增长,一个令人想到的问题是,本季度的线性如何? 事情只是更加后端负载,或许这会导致支付收入减少,仅仅取决于您能够关闭的时间和一些产品收入?

Kathleen Bonanno

Well, support revenue growth, 20%, was pretty strong year-over-year. And one thing to just keep in mind about support is, well, there are a couple of things to keep in mind. One, it includes professional services, which can vary from year-to-year and quarter-to-quarter.
And then the other thing is that as we continue to grow our subscription business, which we've got a lot of our billings now coming from non-attached and revenue now coming from non-attached, those don't have the same concept of support attached to those offerings. So that's just another thing to keep in mind when you consider support.

那么,支持收入增长20%,同比强劲。 关于支持,有一点需要注意的是,有几点需要牢记。 一,它包括专业服务,可能会有所不同,每年和每季度都有所不同。

然后另一件事是,随着我们继续发展我们的订阅业务,我们现在已经收到很多我们的账单来自非附加和现在来自非附加的收入,那些没有相同的概念 这些产品附带的支持。 因此,当您考虑支持时,请记住另一件事。

会议主持员

And we'll go next to Ken Talanian from Evercore ISI.

我们将从Evercore ISI旁边的Ken Talanian。

Ken Talanian

Hi, thanks for taking the question. So we are happy to see you move to a more ratable business, but how should we think about the pace at which you move to more ratable sales over the next year or so, given the additional non-attached subscriptions you're getting from these acquisitions? And like how soon may we see subscription surpass 50% of your billings?

嗨,谢谢你提出这个问题。 因此,我们很高兴看到您转向更具竞争力的业务,但我们应该如何考虑您在未来一年左右转向更具竞争力的销售的速度,因为您从这些订单中获得了额外的非附加订阅收购? 就像我们多久可以看到订阅超过您账单的50%?

Nikesh Arora

Well, Ken, we're not going to give you forward guidance on those topics. But all I will tell you is you can see the way our cloud security business is beginning to perform. I think we said Prisma has already gone over a $250 million run rate billings run rate this quarter. And it's growing at very, very robust growth rates, way ahead of the company growth rate, as you can imagine.
We hope that those growth rates continue, which overtime will create the mix shift that is required to make a higher proportion of our business more and more ratable, which will have the impact of shorter duration in terms of impacting billing, which will have the cash flow profile changes associated with it.
But I don't expect this to happen in the short order. I think this is going to take us a reasonable amount of time. But hopefully, that time that we take happens at the growth rate that we're enjoying overall as a company. And clearly, if you're growing roughly 2.5 times the rate of the growth of the industry, you must be taking share from other people in this process.

嗯,Ken,我们不会就这些主题向您提供前瞻性指导。但我要告诉你的是,你可以看到我们的云安全业务开始执行的方式。我想我们说Prisma本季度已经超过2.5亿美元的运行费率。正如您所想象的那样,它正在以非常非常强劲的增长率增长,远远超过公司增长率。

我们希望这些增长率继续下去,加班将产生混合转变,这是我们业务中较高比例越来越大的必要条件,这会影响到影响结算的持续时间更短,这将有现金与之相关的流量剖面变化。

但我不认为这会在短期内发生。我认为这将花费我们合理的时间。但希望,我们采取的时间是以我们作为一家公司享受的增长率发生的。显然,如果你的增长率大约是行业增长速度的2.5倍,那么在这个过程中你必须从其他人那里获得份额。

Ken Talanian

Understood. And have you made any changes to the pricing, packaging, or the go-to-market for the cloud-focused products with the launch of the Prisma branding?

了解。 您是否通过推出Prisma品牌对云计算产品的定价,包装或上市进行了任何更改?

Nikesh Arora

Yes. Look, as I mentioned, we had, very early in this process, introduced this notion of speedboats. And the notion of speedboats was to have dedicated people across the organization and across functional basis to make sure that we have people focused on making our customer successful by having a dedicated customer success team, by having specialists who can go ahead and sell cloud and partner with our core sales team and accounts to make sure that the focus is not lost on our non-SaaS services, which is what has been paying dividends. We continue on that track. We have dedicated teams.
We have now consolidated our GPCS and public cloud speedboats into the Prisma speedboat. We've learned from the last year that Prisma, as the customers who are going to make this journey to the cloud are looking at all these products as a combined suite of products.
So we are driving the same degree of acceleration that we have on the public cloud speedboat on the rest of our Prisma products, and put them all into one speedboat, which is led by the same people who were at the public cloud speedboat.
So yes, we have made changes on go-to-market side and from a focus perspective, because we don't want the smaller, faster, growing business to get lost in the large expense of our core business.

是。看,正如我所提到的,我们在这个过程中很早就引入了快艇的概念。快艇的概念是让整个组织和整个职能部门都有专门的人员,以确保我们让人们专注于通过拥有一个专注的客户成功团队来使我们的客户成功,拥有可以继续销售云和合作伙伴的专家与我们的核心销售团队和客户合作,确保我们的非SaaS服务不会失去重点,这就是支付红利的原因。我们继续这条轨道。我们有专门的团队。

我们现在已将GPCS和公共云快艇整合到Prisma快艇中。我们从去年就已经了解到,Prisma作为将要实现云计算之旅的客户将所有这些产品视为一系列产品。

因此,我们正在推动我们在其他Prisma产品上使用公共云快艇的加速度,并将它们全部放入一艘快艇中,该快艇由公共云快艇的同一人领导。

所以,是的,我们已经从市场角度和焦点角度进行了变革,因为我们不希望更小,更快,增长的业务在我们的核心业务的巨额开支中迷失。

Ken Talanian

Understood. Thanks very much.

了解。 非常感谢。

会议主持员

And we'll go next to Andrew Nowinski with Piper Jaffray.

然后我们将与Piper Jaffray一起去Andrew Nowinski。

Andrew Nowinski

Great. Thank you for taking the question. So maybe from a geographic perspective, I know you made some sales leadership changes in the US, yet your growth in the US remained relatively unchanged. However, growth in EMEA did slow. So just wondering if you can provide any more color on the slowdown in EMEA as well as any changes the new sales leadership team in North America has made.

非常好。 谢谢你提出这个问题。 因此,从地理角度来看,我知道你在美国做了一些销售领导变革,但你在美国的增长仍然相对不变。 然而,EMEA的增长确实放缓。 所以只是想知道你是否可以为EMEA的减速以及北美新的销售领导团队所做的任何改变提供更多的颜色。

Nikesh Arora

Look, I think I was trying to figure out where the correlation you're going to draw was. We've made a change there, and nothing changed. We didn't make a change there, and things got worse. So I'm not sure what the implication is.
Look, Europe had a seasonal third quarter like third quarters across the board seem to be challenged. There was a seasonal slowdown, vis-a-vis, EMEA. We -- the team there feels confident that they will continue marching towards their annual targets. So hopefully, they will make up for what they were not able to do this quarter in the upcoming quarter.
In terms of the U.S., we have hired a lot more people in the last quarter, which we expect to ramp up in Q4 and next year because part of the opportunity we had was we felt that we were not knocking enough doors.
And as I mentioned, the focus on more new business. The team is strong. The team is motivated. We don't think that the leadership change in the Americas has had much of an impact in terms of the performance of the team, except for the fact that they continue to be excited and motivated to keep delivering quarters.

看,我想我想弄清楚你要绘制的相关性在哪里。我们在那里做了一些改变,没有任何改变。我们没有在那里做出改变,事情变得更糟。所以我不确定其含义是什么。

看起来,欧洲有一个季节性的第三季度,像第三季度一样,似乎受到了挑战。与EMEA相比,季节性放缓。我们 - 那里的团队确信他们将继续朝着年度目标迈进。所以希望他们能够弥补下个季度他们无法完成的这个季度。

就美国而言,我们在上个季度雇用了更多的人,我们预计在第四季度和明年会增加人数,因为我们有机会获得部分机会,我们觉得我们没有敲门。

正如我所提到的,关注更多新业务。团队很强大。团队充满动力。我们不认为美洲的领导层变动对团队的绩效产生了很大的影响,除了他们继续感到兴奋和积极地继续交付季度。

Andrew Nowinski

I think - I guess I was just asking the changes you made obviously had a fairly positive effect in the U.S. I'm wondering is there any changes needed in EMEA? Or is there any abnormality in EMEA to their growth sector link?

我想 - 我想我只是问你所做的改变显然对美国产生了相当积极的影响我想知道EMEA需要改变吗? 或者欧洲,中东和非洲地区的增长部门链接是否有任何异常?

Nikesh Arora

I hope our Head of Europe is listening to this call.

我希望我们的欧洲负责人正在听这个电话。

Kathleen Bonanno

No. Wow.

哇。

Nikesh Arora

We intend to make no changes in Europe. He's strong. He's going to make sure he delivers this quarter and retain his growth rate in the upcoming quarters.

我们打算在欧洲不做任何改变。 他很强壮。 他将确保他在本季度交付并在未来几个季度保持其增长率。

会议主持员

We'll go next to Karl Keirstead with Deutsche Bank.

我们将和德意志银行一起去Karl Keirstead。

Karl Keirstead

Thank you. I've got two questions for Kathy. Kathy, if billings, as Nikesh was just describing, might be a less useful measure of the fundamental health of Palo Alto Networks, do you think that your backlog or RPO number might have more value? And would you mind disclosing it? I think you disclosed it in your last couple of Qs.

谢谢。 凯西,我有两个问题。 Kathy,如果像Nikesh刚刚描述的那样,可能对Palo Alto Networks的基本健康状况不太有用,你认为你的积压或RPO号码可能更有价值吗? 你介意透露它吗? 我想你在最后几个Q中披露过它。

Kathleen Bonanno

Yes. It's not a massive number for us, and it will be disclosed in our Q again this quarter. And you can do the math on the difference between deferred revenue and that number. The number that we provided on the earnings call is the current billings number, which grew nicely at 25% year-over-year.
And that's a metric that I think most analysts have been monitoring for a number of years and have been asking us about over the years. And so I think that continuing to focus on that number is important, along with our revenue growth, obviously.

是。 这对我们而言并不是一个庞大的数字,它将在本季度再次在我们的Q中披露。 您可以根据递延收入与该数字之间的差异进行数学计算。 我们在盈利电话会议上提供的电话号码是当前的账单数量,与去年同期相比增长了25%。

这是一个衡量标准,我认为大多数分析师多年来一直在监控,多年来一直在询问我们。 所以我认为继续关注这个数字很重要,显然我们的收入增长也很重要。

Karl Keirstead

Got it. Okay. Great. And then, just as a second question, Kathy. Just on the adjusted free cash flow margin guidance of 36% for the full year. I think through the first 9 months of this fiscal year, that adjusted free cash flow margin would average out to be close to 39%.
So to end up at 36% for the full year, you would need your fourth quarter free cash flow margin to dip quite a bit, maybe even to below 30%. And I'm just wondering if you could touch on why that would be? Thanks.

得到它了。 好的。 大。 然后,就像第二个问题一样,凯西。 仅在调整后的全年自由现金流保证金指引为36%。 我认为在本财政年度的前9个月,调整后的自由现金流利润率平均接近39%。

因此,全年最终收益率为36%,您需要第四季度的自由现金流利润率相当低,甚至可能低于30%。 而我只是想知道你是否可以触及为什么会这样? 谢谢。

Kathleen Bonanno

Yes. We did talk about the adjustments that we're making in the quarter. So the adjustments will be particular to the Q4 number. But additionally, we tend to have more expense in that quarter, more commissions expense in that quarter. And so we're comfortable with the full year guidance of 36%.

是。 我们确实谈到了我们在本季度所做的调整。 因此调整将特别针对Q4号码。 但另外,我们在该季度往往会有更多的费用,在那个季度会有更多的佣金支出。 所以我们对36%的全年指导感到满意。

会议主持员

And we'll go next to Rob Owens with KeyBanc Capital Markets.

我们将与KeyBanc Capital Markets一起前往Rob Owens。

Rob Owens

Great. And thanks for taking my question. If you look at the strength that you saw in product revenue yet again, can you kind of paint what the landscape looks like? I mean Q1 in general was a little weaker for most security vendors, and you continue to put up impressive results on the product side.
So just curious in terms of sales cycles, what the demand landscape looks like, and also what kind of levels you're seeing of discounting out there? Thanks.

非常好。 谢谢你提出我的问题。 如果你再看一下你在产品收入中看到的实力,你能描绘一下风景的样子吗? 我的意思是,对于大多数安全供应商来说,Q1总体来说有点弱,而且你会继续在产品方面取得令人印象深刻的成果。

所以只是对销售周期,需求前景如何,以及你看到哪些级别的折扣感到好奇? 谢谢。

Kathleen Bonanno

Yeah. So we did see a really strong product growth number, and we're obviously very thrilled with that. The new products that we have introduced over time remain very competitive in the market. And our sales teams, as we mentioned, are doing a good job selling those products.
We're seeing some improvement, as Nikesh said, in terms of sales cycles for the cloud products that we're selling. There seems to be a lot of demand for that, and it doesn't take a lot of convincing. But overall, I wouldn't say that there's been significant change in terms of our sales cycle for selling the vast majority of the products that we sell.

是啊。 所以我们确实看到了一个非常强大的产品增长数字,我们显然非常激动。 随着时间的推移,我们推出的新产品在市场上仍然具有很强的竞争力。 正如我们所提到的,我们的销售团队在销售这些产品方面做得很好。

正如Nikesh所说,我们正在看到一些改进,就我们销售的云产品的销售周期而言。 似乎有很多需求,并没有太多说服力。 但总的来说,我不会说我们销售绝大部分产品的销售周期都发生了重大变化。

Rob Owens

Great, thank you.

太好了谢谢。

会议主持员

And we'll go next to Saket Kalia with Barclays Capital.

我们将与巴克莱资本(Barclays Capital)一起前往Saket Kalia。

Saket Kalia

Great, thanks for taking my questions here. Kathy, maybe for you on the product revenue number. We touched on some customer examples of refresh. And I think it's very clear that you're optimizing kind of the attached subscription.
But can you just talk a little bit about the health of firewall refresh more broadly in the quarter, and how you're sort of thinking about that trend going forward?

太棒了,谢谢你在这里提出我的问题。 凯西,也许就你的产品收入数字而言。 我们谈到了一些客户刷新的例子。 而且我认为很明显,您正在优化附加订阅的类型。

但是,您能否在本季度更广泛地谈谈防火墙刷新的健康状况,以及您如何考虑这一趋势?

Kathleen Bonanno

Yes. Well, when people talk about refresh, they tend to talk about it in 2 different ways. So I'll just talk about both. One is the just general market refresh, and that is going on all of the time, right? That's how we get most of our new firewall customers if somebody is refreshing their - on a firewall refresh, and they are replacing old firewalls with new firewalls. And that's how we go in and take market share and continue to land-and-expand, right?
The other refresh that people talk about is our own internal refresh. So our own customers having sort of reached a 5, 7 year life as their firewalls, and they are replacing those firewalls. And that is a question that we get asked a lot about is that driving our growth in the quarter
And certainly, it contributes every quarter, but as we've said for a number of quarters, we think that, that opportunity is more in front of us than behind us because the number of cohorts - the cohort sizes just get larger and larger over time. And we have a portion of refresh in our numbers in this quarter, a portion in last quarter, but it's not the primary driver of our growth.
Yet we still are very focused on that opportunity. We think it's a great opportunity for us in the future. And we don't -- we're very encouraged and are focused on getting that refresh opportunity, both the general market refresh opportunity as we continue to take share and our own internal refresh opportunity.

是。好吧,当人们谈论刷新时,他们倾向于以两种不同的方式谈论它。所以我只谈两个。一个是正​​常的市场刷新,这种情况一直在持续,对吧?这就是我们获得大多数新防火墙客户的方式,如果有人刷新他们 - 在防火墙刷新时,他们正在用新防火墙取代旧防火墙。这就是我们如何进入并占据市场份额并继续降落,对吧?

人们谈论的另一个刷新是我们自己的内部刷新。因此,我们自己的客户已经达到了5年,7年的生命周期作为他们的防火墙,他们正在取代这些防火墙。这是一个我们被问到很多问题的问题,那就是推动我们在本季度的增长

当然,它每个季度都有所贡献,但正如我们已经说过的那样,我们认为,这个机会在我们面前比在我们后面更多,因为群组的数量 - 群组规模变得越来越大时间。我们在本季度的数据中有一部分刷新,这是上一季度的一部分,但它不是我们增长的主要驱动因素。

然而,我们仍然非常关注这个机会。我们认为这对我们来说是一个很好的机会。我们不这样做 - 我们非常鼓励并且专注于获得更新机会,我们继续分享市场刷新机会以及我们自己的内部更新机会。

Saket Kalia

Got it. Got it. Maybe a follow-up for you, Nikesh. I know in the beginning of the quarter, in early February, there were some changes in the channel program. I think some sort of adjustments or different models for RedLock and different models for partners that sort of sell the broader portfolio.
Can you just talk a little bit about how, if at all, those sort of impacted in the quarter? And what's been the feedback from the channel as you wrapped up this April quarter?

得到它了。 得到它了。 也许是你的后续行动,Nikesh。 我知道在本季度初,2月初,渠道计划有一些变化。 我认为RedLock的某种调整或不同的模型以及为更广泛的投资组合出售的合作伙伴的不同模型。

你能谈谈一下这个季度受影响的那些怎么样? 当你整个今年四季度的时候,渠道的反馈是什么?

Nikesh Arora

Look, I think we evaluated various possibilities of the channel, which is where there was a bit of noise, not this quarter, but it's the prior quarter. And where we landed is a happy place both to the channel and for us. If you understand these cloud products, these SaaS products actually end up having to be sold not just to our current channels but also through our future channels, which is basically the marketplaces of AWS, Azure and GCP because when customers go deploy public cloud capabilities.
They go to the marketplaces off the public cloud providers to find other tools and accessories and products. And we have to be present there, which requires a different model from an activation and deployment and sales perspective.
So we enabled that. We made room for our channel to be able to refer customers to that marketplace. As a result, they continued to get their economics and referral way as opposed to the way they've been used to be in the past, which is more hardware process. And I think things are stable, things are happy. We're selling product. The channel's making money. And customers are able to buy it, whichever way they want to consume it.

看,我认为我们评估了渠道的各种可能性,这是一个有点噪音的地方,而不是本季度,但它是前一季度。我们降落的地方对于频道和我们来说都是一个快乐的地方。如果您了解这些云产品,这些SaaS产品实际上最终不仅要出售给我们当前的渠道,还要出售我们未来的渠道,这些渠道基本上是AWS,Azure和GCP的市场,因为当客户部署公共云功能时。

他们去公共云提供商的市场寻找其他工具和配件及产品。我们必须在那里,这需要一个不同的模型,从激活和部署和销售的角度来看。

所以我们启用了。我们为渠道腾出空间,以便能够将客户引荐到该市场。结果,他们继续获得他们的经济和推荐方式,而不是他们过去习惯的方式,这是更多的硬件过程。我认为事情是稳定的,事情是幸福的。我们正在销售产品。渠道赚钱了。客户可以购买它,无论他们想要消费它。

会议主持员

And we'll go next to Phil Winslow with Wells Fargo.

我们将和富国银行一起去菲尔温斯洛。

Phil Winslow

Hey, guys thank for taking my question. Congrats on a strong start to the year, particularly on the product - sorry, particularly on the product side. Just wanted to focus on Cortex. We've spent a lot of time on product and Prisma, but wondering if you could give us an update on Cortex, particularly if you look at the Cortex hub, how you're feeling about the progression there of applications. And then also just usage and call it hydration of the data lake?

嘿,大家好感谢接受我的提问。 祝贺今年有一个强劲的开端,尤其是产品 - 抱歉,特别是在产品方面。 只是想专注于Cortex。 我们花了很多时间在产品和Prisma上,但想知道你是否可以给我们一个关于Cortex的更新,特别是如果你看看Cortex中心,你对应用程序的进展感觉如何。 然后还只是使用并称之为数据湖的水合作用?

Nikesh Arora

Well, as I mentioned, look, right now, there are two very clear parts of Cortex. One is the Cortex XDR combination, which requires the data lake, which includes Traps as we -- last quarter we announced that we're going to make Traps an integral part of our XDR offering.
We felt this, but it got validated this morning, coincidentally. We believe XDR is now the leading product in the market, and it beats any EDR product hands-down. So many of those you know have been displacing the traditional legacy vendors in the market, we believe we have not just a competitive product, but a better product.
And we're seeing that in the pipeline growth, we're seeing that in the deals that we've done. We've done over 50 deals for our Cortex XDR in about 6 weeks since we announced it and deployed it in the market. We have a very healthy pipeline going to Q4.
We are applying a speedboat concept to Cortex XDR, just so we did - the way we did to public cloud and Prisma. So we have lots of hopes from Cortex XDR and every Cortex XDR deal, every deal to deploy Traps requires the Cortex data lake, and the Cortex data lake is being deployed in those cases.
In addition to that, Demisto is part of Cortex now because customers look at automation from a SOAR perspective, even though we only had Demisto in our numbers for only about a month this past quarter, it has surpassed any business plan they had prepared at their own end.
Just by sheer fact that our core team is really excited about Demisto, and every one of our customers got excited about Demisto. And we expect that trend to continue going into Q4.
So generally, on Cortex, we are bullish, both from a Cortex XDR, data lake, Cortex hub perspective as well as the Demisto perspective. Many of the Prisma integrated capabilities that we are launching this quarter actually use the Cortex hub to create the integrations between some of our products, whether it's VM and Aperture or some of the integrated reporting.

好吧,正如我所提到的,现在看,Cortex有两个非常清晰的部分。一个是Cortex XDR组合,它需要数据湖,其中包括Traps,因为我们 - 上个季度我们宣布我们将使Traps成为我们XDR产品中不可或缺的一部分。

我们感觉到了这一点,但巧合的是,它在今天早上得到了验证。我们相信XDR现在是市场上的领先产品,它击败了任何EDR产品。您认识的许多人已经取代了市场上传统的传统供应商,我们相信我们不仅仅是一个有竞争力的产品,而是一个更好的产品。

我们看到,在管道增长中,我们已经看到了我们已经完成的交易。自我们宣布并将其部署到市场以来,我们已经为我们的Cortex XDR在大约6周内完成了50多笔交易。我们有一个非常健康的管道进入第四季度。

我们正在将快艇概念应用于Cortex XDR,就像我们做的那样 - 我们对公共云和Prisma的方式。因此,我们对Cortex XDR和每个Cortex XDR交易抱有很多希望,每个部署Traps的交易都需要Cortex数据湖,并且在这些情况下部署了Cortex数据湖。

除此之外,Demisto现在是Cortex的一部分,因为客户从SOAR的角度来看待自动化,即使我们在上个季度只有一个月的时间里只有Demisto,它已经超过了他们在他们的自己的结局。

仅仅是因为我们的核心团队对Demisto非常兴奋,我们的每一位客户都对Demisto感到兴奋。我们预计这一趋势将持续进入第四季度。

所以一般来说,在Cortex上,我们看好,无论是从Cortex XDR,数据湖,Cortex中心的角度以及Demisto的角度来看。我们本季度推出的许多Prisma集成功能实际上使用Cortex集线器来创建我们的一些产品之间的集成,无论是VM和Aperture还是某些集成报告。

Phil Winslow

Great, thanks guys.

太棒了,谢谢你们。

会议主持员

And we will go next to Michael Turits with Raymond James.

接下来我们将与雷蒙德詹姆斯一起前往迈克尔·特里茨。

Michael Turits

Hey guys, good evening. Obviously, everything looks really strong from a top line revenue current billings product. But as we look into next year, what should we think of first on the EBIT margin side, since I would assume that we have a lot of dilution coming from these acquisitions? And then, what should we think of as the trajectory for cash flow margins declining before they begin to bottom?

嘿伙计们,晚上好。 显然,从顶级收入当前的账单产品来看,一切看起来都非常强劲。 但是,随着我们对明年的研究,我们应该首先考虑息税前利润率方面,因为我会假设这些收购有很多稀释? 然后,我们应该怎么看待现金流利润率在开始触底之前下降的轨迹?

Kathleen Bonanno

Well, look, we'll provide guidance at that point when we're ready to do so. We've provided guidance for the full year, which takes into account the contract length issue that we discussed earlier.
So we're not ready to provide long-term guidance on either one of those metrics. But on the operating margin, you can see, this year, we've been operating within the framework. We've improved margins despite the fact that, well, on an organic basis, which is what our framework has been about.
And so we're very focused on continuing to ensure that we're working towards bottom line profitability, at the same time, that we're focused on growing the top line. And I wouldn't expect that to change.

嗯,看,当我们准备这样做的时候,我们会提供指导。 我们为全年提供了指导,其中考虑了我们之前讨论的合同期限问题。

因此,我们还没有准备好对其中任何一个指标提供长期指导。 但是在经营利润率上,你可以看到,今年我们一直在框架内运营。 我们已经提高了利润率,尽管事实上,这是我们的框架所依据的有机基础。

因此,我们非常注重继续确保我们努力实现盈利能力,与此同时,我们专注于增加收入。 而且我不希望这会改变。

Michael Turits

And then, Nikesh, I wanted to ask about GlobalProtect Cloud Services, and to be fairly specific about it, competition with Zscaler. How do you see that competition? And do you feel that with them potentially moving to certain firewall applications, it's necessary, perhaps, for you to do more in the proxy area in order to make sure you're competing on an even basis?

然后,Nikesh,我想问一下GlobalProtect云服务,并且相当具体,与Zscaler竞争。 你怎么看这场比赛? 你是否觉得随着他们可能会转向某些防火墙应用程序,你可能需要在代理区域做更多事情以确保你在平等的基础上进行竞争?

Nikesh Arora

I'm going to defer this question to my friend, Lee, even though I'm sure I can butcher the answer, but I'd rather let him do it.

我打算把这个问题推迟给我的朋友Lee,尽管我确信我可以剔除答案,但我宁愿让他这样做。

Lee Klarich

Yes. We - look, we've been very consistent, we talked about GlobalProtect Cloud Service, which is now Prisma Access. We believe that, fundamentally, you need to be able to secure all applications. And the way to do that is with a next-gen firewall foundation in the service, which is something that, clearly, we have a unique and distinct advantage of and is fundamental to how Prisma Access is architected and how it works.
As we mentioned in the launch announcement today with Prisma, there are a couple of key enhancements coming to Prisma Access. Number one is we are going to be supporting GCP as a public cloud foundation in the near future. That will extend Prisma Access out to 100-plus locations around the world. So from a pure network latency performance perspective, we believe we'll be the best at the performance side of service.
And second, we announced that we will soon have a cloud management service to go along with it, such that for customers who want the entire service to be done through the cloud, we'll be able to support that from onboarding, to configuration management to monitoring.

是。我们 - 看,我们一直非常一致,我们谈到了GlobalProtect Cloud Service,它现在是Prisma Access。我们相信,从根本上说,您需要能够保护所有应用程序。这样做的方法是使用服务中的下一代防火墙基础,这显然是我们具有独特且独特的优势,并且是Prisma Access如何构建以及如何工作的基础。

正如我们今天在Prisma的发布公告中提到的那样,Prisma Access还有一些重要的增强功能。第一,我们将在不久的将来支持GCP作为公共云基础。这将把Prisma Access扩展到全球100多个地点。因此,从纯粹的网络延迟性能角度来看,我们相信我们将成为服务性能方面的佼佼者。

第二,我们宣布我们将很快推出云管理服务,以便对于希望通过云完成整个服务的客户,我们将能够支持从入职到配置管理的服务。监督。

Michael Turits

Okay. Thanks everybody.

好的。 谢谢大家。

会议主持员

And we'll go next to John DiFucci with Jefferies.

我们将和Jefferies一起去John DiFucci旁边。

John DiFucci

Thank you. My questions have largely been answered. I just had a follow-up for Kathy. Kathy, really appreciate your guidance that focus on current billings, which makes total sense to us and not to really worry about RPO a lot. Just trying to get ahead of any differences we might see going ahead.
It seems to me that we might see a little more volatility in current billings because previously, long-term deferred revenue would have sort of smoothly flowed into current billings every quarter, whereas that might now be a little more lumpy upon annual renewals.
And I don't want to get too cute about all this, but the current billings trend should remain the same as they would have been maybe just a little more lumpy and sort of smooths out over time, as more sales are billed annually. Does that at all make sense?

谢谢。 我的问题基本上得到了回答。 我只是对凯西进行了跟进。 Kathy,非常感谢您关注当前账单的指导,这对我们来说非常有意义,而不是真正担心RPO。 只是试图超越任何差异,我们可能会看到继续前进。

在我看来,我们可能会看到当前账单的波动性稍微大一点,因为之前,长期递延收入将在每个季度顺利流入当前账单,而现在每年续约可能会略微变得多一些。

而且我不想对这一切感到太可爱,但是目前的账单趋势应该保持不变,因为随着时间的推移,每年都会有更多的销售额。 那有没有意义?

Kathleen Bonanno

Yeah. I think that, that makes sense. The changes in mix are happening gradually over time. We did see really great strength in our cloud products this quarter, which was a great thing for us, obviously.
And so we're continue to expect strength there, and we've guided assuming that strength. But for the rest of it, I think you're absolutely right that it's not going to be an overnight transition. It'll happen gradually over time.

是啊。 我认为,这是有道理的。 随着时间的推移,混合的变化逐渐发生。 我们确实看到本季度我们的云产品真的很强大,显然对我们来说这是件好事。

所以我们继续期待那里的力量,我们已经指导了这种力量。 但对于其余部分,我认为你绝对是正确的,它不会是一夜之间过渡。 随着时间的推移它会逐渐发生。

John DiFucci

Great, okay. Thank you very much.

太好了,好的。 非常感谢你。

Kathleen Bonanno

Yeah.

是啊。

会议主持员

And we'll go next to Fatima Boolani with UBS.

我们将与瑞银(UBS)一起走到Fatima Boolani旁边。

Fatima Boolani

Good afternoon. Thank you for taking the question. Nikesh, I had a question for you regarding Prisma. It makes a ton of sense to amalgamate your four pillars on the cloud, the security front. But given each solution within the Prisma portfolio has different pricing models and potentially go-to-market models, I'm wondering if you can clarify if Prisma purchased a sort of an all or nothing.
And to the extent that's sort of an all deal, how are you going about pricing the offering given the diversity of revenue models within that portfolio? And then I have a follow-up for Kathy.

下午好。 谢谢你提出这个问题。 Nikesh,我对Prisma有一个问题。 在云端,安全方面合并你的四大支柱是很有意义的。 但鉴于Prisma产品组合中的每个解决方案都有不同的定价模式和可能的上市模式,我想知道您是否可以澄清Prisma是否购买了全部或全部。

就某种程度而言,考虑到该产品组合中收入模式的多样性,您如何定价? 然后我对凯西进行了跟进。

Nikesh Arora

Thanks for the question, Fatima. Look, you're right that the cloud journey has different aspects, and there have been individual products that customers have gone and bought to enable different parts of the journey whether it's the GPCS competitors when it goes towards remote branches and new offices or whether it's the public cloud scenario or whether it's your CASB scenario.
And part of our thesis is that you shouldn't have to have multiple products because there are interdependencies between these products, which creates security for yourself.
Whilst we haven't alighted on the exact pricing because we're still - we just announced the acquisition of Twistlock and PureSec this morning, you can expect us to not distinguish in terms of how customers deploy their application, whether it's private cloud, public cloud, containers, serverless, public cloud because we think that there should be consistency, and it should be purely based on the amount of volume you transfer to the cloud as opposed to the different ways you do it.
So you should expect to see some cohesity in pricing. Having said that, given the realities of the market, we will still make our products available in their individual forms to compete directly with people in the market because we believe our products are very competitive and better in most - in all cases. But obviously, the integrated product will have a lot more benefits than just buying the individual piece for us.

谢谢你的问题,法蒂玛。看,云你的旅程有不同的方面你是对的,并且客户已经购买了个别产品,以便能够实现旅程的不同部分,无论是GPCS竞争对手,当它走向远程分支机构和新办公室时,或者是否是公共云场景或它是否是您的CASB场景。

我们的部分论点是您不应该拥有多种产品,因为这些产品之间存在相互依赖关系,这为您自己创造了安全性。

虽然我们还没有下定价,因为我们还在 - 我们刚刚宣布今天早上收购了Twistlock和PureSec,但您可以期待我们不区分客户如何部署他们的应用程序,无论是私有云,还是公共云云,容器,无服务器,公共云,因为我们认为应该保持一致性,并且它应该纯粹基于您传输到云的卷的数量,而不是您执行它的不同方式。

因此,您应该期望在定价方面看到一些凝聚力。话虽如此,鉴于市场的现实,我们仍将以各自的形式提供我们的产品,以便与市场上的人直接竞争,因为我们相信我们的产品在所有情况下都具有很强的竞争力和最好的产品。但显然,集成产品将比为我们购买单件产品带来更多好处。

Fatima Boolani

Fair enough. And Kathy, for you, just two financial ones. We have an understanding of the OpEx impact from the recent acquisitions, but I'm wondering if you can speak to the totality of the revenue in billings contribution from recent acquisitions as well as the above seasonal jump in the sales and marketing expense this quarter. And that's it for me? Thank you.

很公平。 而凯西,对你来说,只有两个金融方案。 我们了解近期收购对OpEx的影响,但我想知道您是否可以谈谈最近收购的账单收入的总收入以及本季度销售和营销费用的上述季节性增长。 那对我来说呢? 谢谢。

Kathleen Bonanno

Yeah. We do have, as I mentioned in the prepared remarks, increase in our expense associated with the acquisition and our guidance for EPS, and our guidance for revenue reflects both top line and bottom line impacts of those, although we haven't called them out explicitly. On the - sorry, what was the second part of your question?

是啊。 正如我在准备好的评论中所提到的那样,我们确实增加了与收购相关的费用和我们对EPS的指导,我们的收入指导反映了这些收入的顶线和底线影响,尽管我们还没有将它们召集出来明确。 对不起,问题的第二部分是什么?

Fatima Boolani

Higher than seasonal sales and marketing jump in the quarter…

高于本季度的季节性销售和营销增长......

Kathleen Bonanno

Yeah. Our sales and marketing teams, as Nikesh mentioned, I don't really think that it reflects any sort of big change in the business that we have been hiring sales in Americas in particular to drive more coverage. And so it takes a while for those expenses to actually result in top line revenue in particular, right?
So as we see those reps ramp and as we cover the math and get more -- get that Americas number up even higher, hopefully, we'll see that change over time, again.

是啊。 我们的销售和营销团队,如Nikesh所说,我并不认为它反映了我们在美洲招聘销售业务的任何重大变化,特别是为了推动更多的业务。 因此,这些费用需要一段时间才能真正实现顶线收入,对吧?

因此,当我们看到这些代表人数增加时,我们会覆盖数学并获得更多 - 让美洲数字更高,希望我们会再次看到这种变化。

Fatima Boolani

Great, thank you.

太好了谢谢。

Kathleen Bonanno

Yeah.

是啊。

会议主持员

And our final question comes from Matt Hedberg with RBC Capital Markets.

我们的最后一个问题来自RBC Capital Markets的Matt Hedberg。

Matt Hedberg

Hi, guys. Thanks for squeezing me in. One for Nikesh. Your firewall momentum and results remained strong, clearly, versus peers. But as you continue to expand your cloud-based product portfolio, can you talk about some of the steps you're taking to over - to avoid over rotating sort of the general sales motion from that core firewall base?

嗨,大家好。 谢谢你挤我。一个为Nikesh。 与同行相比,您的防火墙动力和结果显然仍然很强劲。 但是,随着您继续扩展基于云的产品组合,您能否谈谈您正在采取的一些步骤 - 以避免从核心防火墙基础过度轮换一般销售动作?

Nikesh Arora

I'm sorry. Can you clarify what do you mean by over rotating away or...

对不起。 你能澄清一下旋转离开的意思吗?

Matt Hedberg

Well, yes, I guess, you've got a lot of exciting products on the cloud side. And I know there's a lot of overlay themes. But are there things that you can do to sort of maintain the momentum in core firewall despite sort of all the new shiny toys that I'm sure a lot of customers are probably yearning for?

嗯,是的,我想,你在云端有很多令人兴奋的产品。 而且我知道有很多叠加主题。 但是你能做些什么来保持核心防火墙的势头,尽管我确信许多客户可能都渴望拥有所有新的闪亮玩具?

Nikesh Arora

Look, whilst we're not going to disclose, but we added a lot of quota-carrying reps in the last quarter, purely for us to be able to drive more coverage and more, more -- cover more accounts in our core business. This is not for cloud. This is not for Prisma. This not for Cortex. This is to drive more coverage across our existing core business.
As I think - I don't remember who said it, but one of you guys said that you have seen us show strong product growth across every quarter, 28% product growth this quarter. So clearly, we're not taking our eye off the ball.
We understand what pays the bills. We understand where the money comes from. And we are seeing traction out in the market. It's not like people are not buying firewalls. The rumors of the firewalls being dead are overstated.
So we think that is still continuing - still a continuing strong trend on the firewall. We continue to hire reps. We continue to try and penetrate more accounts from a firewall perspective.
We also are working, as you know, to add more capability in our firewalls. So the average price per firewall goes up for us, for our customer, because they can do more things in the firewall not just less.
So we understand that to maintain the growth rates we have in the industry, it's not going to happen just by adding more product and growing them rapidly. It requires us to maintain a solid growth rate in our core business, and we are focused on that.

看,虽然我们不会透露,但我们在上个季度增加了很多配额代表,纯粹是为了能够推动更多的覆盖范围,更多 - 更多 - 覆盖我们核心业务的更多账户。这不适用于云端。这不适用于Prisma。这不适用于Cortex。这是为了扩大我们现有核心业务的覆盖范围。

我想 - 我不记得是谁说的,但你们其中一个人说你们看到我们在每个季度都表现出强劲的产品增长,本季度产品增长28%。很明显,我们并没有把目光从球上移开。

我们理解支付账单的原因。我们了解钱来自哪里。我们正在看到市场上的牵引力。这不像人们不买防火墙。有关防火墙死机的谣言被夸大了。

所以我们认为这仍然是持续的 - 仍然是防火墙的持续强势趋势。我们继续雇用销售代表。我们继续尝试从防火墙的角度渗透更多帐户。

如您所知,我们也正在努力在防火墙中添加更多功能。因此,对于我们的客户来说,每个防火墙的平均价格都会上涨,因为他们可以在防火墙中做更多事情,而不仅仅是更少。

因此,我们了解到,为了保持我们在行业中的增长率,通过增加更多产品并快速增长,不会发生这种情况。它要求我们在核心业务中保持稳健的增长率,并且我们专注于此。

Matt Hedberg

That's super helpful. And then maybe just one last one on XDR in particular. 50 deals in the quarter is great. Can you talk about where those deals are coming from? I assume a lot of them are maybe some of the legacy players. But are you able -- also able to take share from some of the next-gen EDR vendors?

这非常有帮助。 然后可能只是XDR上的最后一个。 本季度的50笔交易很棒。 你能谈谈这些交易的来源吗? 我假设他们中的很多人可能是一些传统球员。 但你有能力 - 也能从一些下一代EDR供应商那里获得份额吗?

Nikesh Arora

Look, what's happening is that customers understand -- the one good thing what has happened is that the EDR vendors have paved the way in the minds of the customers that endpoints need an evolution, and the evolution needs to come in the form of not just endpoint protection, but being able to do behavior analytics, non-signature-based capability at the endpoint itself in being able to process stuff in the cloud and being able to triage alarms between endpoints and network.
So this is all about reducing the signal to noise ratio that comes out into your slot. And XDR takes it one level up and says, if you are bought into this vision of reducing the signal noise ration from an endpoint perspective, guess what, the next revolution has to being able to triage across your firewall [Technical Difficulty]
Now the EDR vendors are paving the way for us in terms of opening the door and saying, hey, please, come on in Palo Alto Networks. Tell them about the virtues of not just EDR, but also how EDR networks work together.
We have thousands of Traps customers. They are natural candidates for us to go to and say, look, you're already Traps customers. You're already firewall customers. You should be deploying XDR capability, which will make the life of your softs easier. I think we announced - we integrated our Cortex XDR APIs into Demisto very well this quarter. So even that is happening.
So we are beginning to integrate more and more. So yes, we are -- the door is opening for us vis-à-vis existing EDR vendors, and you can expect us to put more acceleration and more focus in trying to compete with them in hand-to-hand combat.

看,正在发生的事情是客户理解 - 发生的一件好事是,EDR供应商已经为客户的头脑铺平了道路,终端需要进化,并且演变需要以不仅仅是端点保护,但能够在端点本身执行行为分析,非基于签名的功能,能够处理云中的内容,并能够在端点和网络之间对警报进行分类。

所以这就是降低插槽中的信噪比。 XDR将它升级到一级并说,如果您从端点的角度来看这个降低信号噪声比的愿景,请猜测,下一次革命必须能够在您的防火墙上进行分类[技术难度]

现在,EDR供应商正在为我们打开大门铺平道路,并说,嘿,请来Palo Alto Networks。告诉他们不仅仅是EDR的优点,还有EDR网络如何协同工作。

我们有数千名陷阱客户。他们是我们自然的候选人,并且说,看,你已经是Traps的客户了。您已经是防火墙客户了。您应该部署XDR功能,这将使您的软件的生命更容易。我想我们宣布 - 本季度我们将Cortex XDR API很好地整合到了Demisto中。所以即便如此。

所以我们开始越来越多地融合。所以是的,我们是 - 我们面对现有的EDR供应商开门了,你可以期待我们更多的加速和更多的注意力,试图与他们进行一对一的战斗。

会议主持员

At this time, I would like to hand the call back over to Nikesh Arora for any additional or closing comments.

在这个时候,我想把这个电话交给Nikesh Arora,以获取任何额外或结束的评论。

Nikesh Arora

Well, all I want to do is say thank you very much for your time this afternoon. As a reminder, we will be hosting over 4,000 customers and partners next week at Ignite this year in Austin, Texas. I look forward to meeting more of you in the months ahead.
I also want to give a shout-out to all of our employees who work really hard this quarter and say thank you for all your hard work. And let's keep going, we have Q4 to do. Thanks, everyone.

好吧,我想做的就是非常感谢你今天下午的时间。 提醒一下,我们将于下周在德克萨斯州奥斯汀的Ignite举办超过4,000名客户和合作伙伴。 我期待在未来几个月与更多的人见面。

我还想对本季度工作非常努力的所有员工表示敬意,并感谢您的辛勤工作。 让我们继续前进,我们有Q4要做。 感谢大家。

会议主持员

That does conclude today's conference. We thank you for your participation.

这确实结束了今天的会议。 我们感谢您的参与。

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