Good day and welcome everyone to Palo Alto Networks Fiscal Fourth Quarter of 2021, Earnings Conference Call. I am Clay Bilby, head of Palo Alto Networks Investor Relations. Please note that this call is being recorded today, Monday, August 23, 2021, at 1:30 PM Pacific Time. With me on today's call, Nikesh Arora our Chairman and Chief Executive Officer, and Dipak Golechha, our Chief Financial Officer. Our Chief Product Officer, Lee Klarich, will join us in the Q and A session following the prepared remarks. You can find the press release and information to supplement today's discussion on our website at investors.PaloAltoNetworks.com. While there, please click on the link for the events and presentations where you will find the investor presentation and supplemental information. In the course of today's conference call, we will make forward-looking statements and projections that involve risk and uncertainty that could cause actual results to differ materially from forward-looking statements made in this presentation. These forward-looking statements are based on our current beliefs and information available to management as of today, risks, uncertainties, and other factors that could cause actual results to differ are identified in the safe harbor statements provided in our earnings presentation and our SEC filings, Palo Alto Networks assumes no obligation to update the information provided on today's call. We will also discuss non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. We have included tables that provide reconciliations between non-GAAP and GAAP financial measures in the appendix to the presentation and in our earnings release, which we have filed with the SEC. We have several upcoming events, including a virtual Analyst Day on September 13th, starting at 9:30 a.m. Pacific Time. Nikesh Arora, our chairman, and CEO along with members of the executive team will provide an in-depth review of the Company, including growth strategies, financial objectives, and capital allocation framework. Management is also scheduled to participate and upcoming virtual investor conferences in September hosted by Citibank and Piper Sandler. And now I will turn the call over to Nikesh.

Good afternoon, everybody, and welcome to Palo Alto Networks Q4 conference call. I'm trying something new today so please bear with me. You just got an opportunity to see our ad campaign. You're the first people to see it. We spent a lot of time working hard, trying to understand what our customers really want to see from us. And the constant drumbeat we've got from them is innovation at the forefront of cyber security. Our ad campaign called “We've Got Next” amplifies the innovation that our teams have been delivering and our promise that we will be there with you as your partner. We’ve Got Next. I look forward to seeing this ad be the drumbeat for all of our broadcast media and covering our many platforms over time as we go out in the public domain and keep sharing this with our customers. Moving on as you all are well aware, we've had a series of cyber security events over the last quarter against the backdrop of what we are seeing supply chain attacks, where bad actors tried to hack into core infrastructure pieces, which allows an access to enterprises or government systems. These vulnerabilities are being exploited by ransomware actors. The ransomware threat continues to rise. Our Unit 42 team research shows that the average ransom demand in the first half of this year, grew from 5.3 million, which is up 518% year-over-year. What these attacks are highlighting is the constant shortcomings of enterprises and of government's infrastructure continually spurring demand and consolidation, as companies reevaluate their cyber security posture. It's against this backdrop that our platform approach is working. Three years ago, at our analysts' day, we set out the strategy of the Company on three fundamental tenets. One, that the network will transform with the…

Hello everyone. Before I begin, please note that all comparisons are on a year-over-year basis, unless specifically noted otherwise. We delivered results ahead of our guidance across all metrics as we continue to grow and transform our business. In Q4, we saw sequential revenue acceleration driven by strength in our hardware appliance business and in our next-generation security portfolio. We also continued to grow billings and our remaining performance obligation ahead of revenue as we build future predictability with the higher mix of recurring revenue. As a reminder, billings is total revenue plus the change in total deferred revenue, net of acquired deferred revenue. In the fourth quarter of 2021, we delivered billings of $1.87 billion, up 34% and well ahead of our guided 22% to 23% growth. The size of the deals with our large strategic customers grew and our total customer account expanded with over 2500 customers added in the quarter. Q4 revenue of $1.2 to $2 billion grew 28% and was above the high end of our guidance range. Growth was driven by strong demand across all geographies and major product areas. Total deferred revenue in Q4 was $5.02 billion, an increase of 32%. The remaining performance obligation or RPO was $5.9 billion, increasing 36%. We believe that RPO has meaningful insight into our backlog as it includes both prepaid and contractual commitments from customers. By geography, Q4, revenue growth swaps strong across all regions. The Americas grew 29%. EMEA was up 25% and APAC grew 28%. A hardware appliance business accelerated in Q4, driving product revenue of $339 million, growing 11%, and contributing 28% of revenue. Customer reaction to our refreshed on the 400 series and 5400 series appliances was positive. We saw strength overall in network and data center refresh and appliance coal through from…

Thank you, Dipak. To allow for broad participation, I would ask that each person ask only one question. The first question will be from Saket Kalia of Barclays with Keith Weiss of Morgan Stanley to follow. Saket, you may ask your question.

Okay. Great. Thank you, Clay. Thanks for taking my question here. Nikesh, maybe for you lots of good stuff to hit on in the quarter. But maybe I'll just focus on next year's billings guide to start. Is great to see, I think the guide of 21% to 22% billings growth next year. That's better than where you started fiscal '21 in terms of billings growth expectations. And of course, subsequently beat, can you just talk about what's going into that higher starting point for fiscal '22. And maybe as part of that, how you're thinking about overall security spending in the areas that Palo Alto [Indiscernible]? Thanks.

Saket, thanks for your question. As you know, when we went into FY ‘21, we're all looking at what's happening with the pandemic and we're trying to figure out how the pandemic was going to impact security Spend. how the pandemic was going to impact our customers coming back to work. What we realized in the course of the last year, that business must continue and, in that context, customers have come back and realized this way of working is fine. Not only we’re working in terms of creating productivity and delivering their services, but also this way of working in terms of upgrading their IT infrastructure and, of course, staying ahead of the cyber security threat landscape. So, in that context, we have a little more confidence going in this year where we believe the customer is going to go, of course, the pandemic hopefully will ease itself out over the course of the next few quarters. But in the context, we feel a little more confident, therefore we've been able to understand what we can do as a business and share the guidance with you. In terms of cyber security spend as I said, the volumes of technology consumption have gone up in the pandemic no doubt. I don't think this is a one-time blip that's kind of normal, I think this is a new normal. And that new normal needs to be protected, and to be able to protect it effectively, you are seeing customers are looking at consolidation strategies. I shared with you the 3 platform purchases, the 2 platform purchases. In my 3 years at Palo Alto, and finally, I’m finally seeing customers wanting to consolidate and not deal with fragmentation, they're realizing this is a losing battle. If you want to take point sliver products, and trying to integrate them yourselves. Now, that's our bet, has always been our bet, but it's not a bet which is contingent on us having a platform you have to buy it all. It's contingent on us being able to deliver best-of-breed capabilities and as I shared, we've gone from two to six, hopefully from six to double-digit this year, which means we actually deliver best-of-breed capability to our customers, even with the [Indiscernible]. So that's what gives us the confidence, Saket.

Thanks very much.

And our next question comes from Keith Weiss of Morgan Stanley, with Rob Owens after that. Keith Weiss, you may ask your question.

Excellent. Thank you, guys, for taking the question, and a very nice quarter. I think this quarter score is probably going to surprise a lot of guys in terms of the level of overall strength you saw in billings on next-gen doing really well, operating margins outperforming, the guide for operating margins outperforming. But probably the biggest area of contention coming into the print was product revenues. There's a lot of worry about supply chain issues and supply chain constraints. Doesn't really seem like that impacted you. You talked a little bit about product revenues heading into FY ’22. Does this account for any the guide -- does it account for any supply chain issues on a go-forward basis. And this new level of for FY ‘22 up to mid to high single-digit growth, is that durable beyond FY ‘22 or is this a period of catch-up spend with that that pent-up demand around hardware you're talking about previously? Thank you.

So, Keith, thanks a lot for your question. I also want to thank you for the balanced note, I thought you had a good assessment of our opportunities and challenges going as a quarter. Like you said, we are seeing the pent-up demand get released. We are seeing some impact of refreshes. We are seeing some impact of some of the new form factors we've launched. We are working diligently, as I'm sure everyone is, with our suppliers to make sure that we're able to bridge the supply and demand gap. So far, we've been able to make it through Q4. Based on current visibility, we don't see challenges for Q1 going into it, which is why we've given you a guide for Q1 and we will keep working with our suppliers. I think the supply chain issue is going to mitigate itself in Q3 or Q4 time-frame, anyway, in the industry. When there is a supply issue, a lot of the manufacturers, a lot of chip companies is actually working twice as hard to try and bridge the gaps. And we're also working hard with them to make sure we're very transparent about our needs in the quarter. So far, we have guided with the anticipation that we will be able to keep managing our supply chain balance the way we have been able to manage for Q4. And in terms of your sustainability, I would welcome you to the Analyst Day on September 13th, and we’ll talk more about it then.

Excellent. Sounds great, guys. Thank you.

The next question comes from Rob Owens of Piper Sandler with Brian Essex to follow. Rob, you may ask your question.

Great and thank you for taking my question. You talked a little bit in the prepared remarks about your success in the XDR segment, I was wondering given all the noise in that segment, Nikesh if you could unpack a little bit, where the competitive landscape is, and why Palo Alto is winning at this point. Thanks.

Thanks, Rob. Look, XDR is a competitive space, is to new transform endpoint space which has a lot of players. And there were some legacy players in that space who lost ground to some of the newer players in the space, and we all know who they are, and Palo Alto came out of with a product, which was highly technically capable and competitive as we've shared with you, we have won various benchmarks in the industry versus other players in the space. So, we are seeing dog fights or catfights or whatever the right analogy is in the customer space where we get in contention with a competitor. And it gets competitive and it becomes a question of, can you deliver the XDR capability we want? But I think over time what's happening is that customers are looking at it as a more expansive approach. I think this is not just about EdR part, the endpoint part, it also needs to look at how do you [combing lateral](ph) network traffic analysis, how you put, take that together, and minimize the number of alerts that you're getting from different parts of the infrastructure. As we just announced this morning, we've integrated Cloud capability in there, so now you can take a look at your cloud estate and take the alerts from the Cloud estate combing coming a lot of their endpoint, combing a lot of their NTA and trying to see how do you minimize the alert and how do you see a correlation amongst all those alerts, not just that, we introduced identity analytics this morning too. So, I think over time, the XDR category is hurtling towards what used to be the SIM. And what's going to happen over time is XDR will engulf that space, but with a much more intelligent, normalized point of view where you can actually look at and say, this is valuable to me. The SIM of the past was a data aggregation exercise and the intelligence was left for the customer to determine. I think XDR is bringing that next-generation capability to the SIM where it's cross-correlating prior to that, reducing your noise, giving you more relevant information. That's what's going to be the future. So that's why XDR, whilst competitive, highly strategic, and it's it behooves us because we have multiple pieces of the puzzle where we actually have Cloud security capabilities. We have firewall capability, not just on hardware, but across our virtual form factors. So being able to bring all that data makes sense of it and provide value to the SoC is where I think XDR is going. I think we're well placed in that space.

Great. Thank you very much.

Our next question comes from Brian Essex of Goldman Sachs with Michael Turits next. Brian, you may ask your question.

Great. Thank you for taking the question, and congrats on the results Nikesh. One quick question on the ClaiSec business. Wanted to understand -- I guess maybe on next NGS overall, confidence in the guidance, how much cushion is in that number. I understand it's nice to see you leaning into ClaiSec with investment. Where are you investing for growth, particularly in sales and marketing? And maybe to cap it off management changes that we saw this quarter, particularly inviting BJ to join the Company. How that plays into the investment in ClaiSec as that remains a meaningful opportunity for you.

Thanks Brian, you know, as we went on the speedboat strategy, our first job was to make sure that we had product-market fit. And in the early part of our strategy, we shared that we began to see product-market fit, which really, I think Q4 2019 was when we started to see traction in the space. We spent the majority of the last 18 months after that trying to make sure that our sellers were able to understand the power of all the capabilities that Palo Alto has to offer. And we have some phenomenal results in terms of what percent of our core sales team can sell Cortex, can sell Prisma, and those numbers keep rising because we're trying to make sure that our sales team is able to go pitch the entire portfolio to our customers. And that's exactly why we had the success we have been able to share with you, in terms of customers buying three platforms, two platforms, or one, and we believe that opportunities are still further ahead in terms of us being able to penetrate our entire customer base with our Cloud capabilities, our SASE capabilities, our Cortex capabilities. So, we think there's more room to go. We are investing in more coverage and more capability, both in the U.S. and North America, as well as in international markets. That's one part of it. In terms of the management change, delighted that BJ Jenkins has joined us at Palo Alto Networks. He was the CEO of Barracuda Networks. He understands security really well. He's a very seasoned phenomenal sales leader and also a great human being. He's going to come manage our teams, drive that growth continually further. I also shared with you that part of our success as a company is being driven by very large deals. If you want to be the platform provider of choice, we have to be able to engage at the highest level for customer's organizations and convince them of our not just portfolio approach, but its best of breed capabilities. Amit is going to continue to do that. He is working closely with BJ and Rick Congdon, our Head of Global Sales, and they're going to partner together and try and address the needs of the customers from the top-down, which allows us more bandwidth, more capability, and more management strength in being able to do that. So, the sole part of the plan is to create an ability to go target customers at the highest levels. Trying to create large deals where they see a long-term transformation and be their cybersecurity partner of choice.

Great. Helpful color. Thank you.

The next question comes from Michael Turits of KeyBanc with Jonathan Ho next.

Congrats on the quarter. On both XDR and on Cortex and on Prisma Cloud. I think the impression a lot of us got last quarter was their competition was very tight, there was, I'm guessing you never got significant incremental investment there that was needed. It sounds like those segments did well. And you know, you've guided moderately in terms of margins for next year, but it doesn't seem like any big shifts. So, are things moving better than you expected or is your funding a more streamlined rate of repurchases?

Michael, I'll give you a quick sense of how things are going to have the lead jump in and give you a sense of the capability we built this year and the capability you're planning to build over the next 12 months. There's a sales part of the go-to-market part of it, which is working as I said, and our top-three customers committed over $40 million in public cloud spend. I think many of the investors who have invested in these new startups and cloud security, that earlier [Indiscernible] not what we got from our top-tier customers. So, I think we are seeing traction in the market. We are seeing residents and product-market fit, but it's not a static market. That market is continually evolving. We've gone from 07 modules. There's a lot more capability that people are looking for. Same time next year, I'm going to have Lee jump in and share some of the trends and where we are investing in next year.

Yes, absolutely. Look over the last 12 months we've made tremendous amounts of progress in both these products and you look at Prisma Cloud about halfway through the year we introduced four new modules, three of which have been built internally by the teams and one was the [Indiscernible] acquisition being integrated for micro-segmentation. We've seen a lot of very good early customer adoption of those and going forward, I anticipate we're going to start to see mainstream adoption across the installed base and new customers as well. Rich Crews(ph) is doing nicely, as well with customers as they look more towards shift left and in the not-too-distant future, we will have that come out as an integrated module of Prisma Cloud. Again, allowing us to more easily bring that to our existing installed base. XDR, [Indiscernible] with the announcement this morning with [Indiscernible], I think it just shows the continued innovation -- a pace of innovation that we are able to drive. Extending it to Cloud, extending it to identity analytics, introducing the new [Indiscernible] module, and a whole host of other capabilities as well. And as Nikesh already alluded, you're seeing us start to extend the analytics, as well as the data aggregation layer to additional data sources and additional intelligence.

Our next question comes from Jonathan Ho with William Blair, with Brent Thil up next. Jonathan, please ask your question.

Excellent, thank you. I just wanted to go back to your comments around 2022 to give potentially as maybe a digestion year in terms of M and A. We think about sort of the further leverage in terms of the acquisition plays you've already made. Is it accurate to think 2022 as the [Indiscernible] Thank you?

Well, Well, Jonathan. We digest as we eat. We took the 11 product capabilities, and if you look at our NGS revenue or NGS billings, a lot of their NGS billing is from a majority of acquisitions that we integrated into our platform. So, it's not like we have undigested parts of our acquisitions. There are parts of our acquisitions where we'd like to see more traction on a pretty more wood behind the arrows. But for the most part, I think the way to interpret it, Jonathan, is that when we -- when I walked in 3 years ago, there were many trends in the Cybersecurity industry where we were not a player. We were not a player in SASE. We were not a player in cloud security. We're not a full player in the XDR space, and the [Indiscernible]. We needed to become a player, and the cost and time required to build capability will take us four to five years. That is where being able to look at the market's [Indiscernible] by the best in the market, which has already steamed -- which she already spent four to five years, and shown product-market fit was the right approach. Today, we have to be very careful as we evaluate companies because pretty much in categories where we think there are relevant trends, we already have a product. So, acquiring anything that space would require us to spend a lot more time integrating, figuring out what to do their customers. We have 2 competing products and I principally do not believe and having two products in the same category because creates confusion, destroys the strategy, increased -- lots of unnecessary gross profit in the organization. So that's why our opportunities to go expand in categories are limited. We've decided at some places we want to play and we want to play to win, there are some places we're not going to play we don't want to play an identity. So, it doesn't matter if there is an open space and there are Companies out there. We're not playing there, we're playing in Cloud Security where we will be very aggressive, we're playing in automating assault providing capabilities on the SoC and replaying a network firewall business. And there we believe we have huge complemented capabilities. And as you saw from the slide, we're building lots of lots of organic capability. We did 53 product releases last three years, are all showing up. Hopefully in the billings that you're seeing that we're able to provide more capabilities, more subscriptions to customers. That's the way I would interpret the M&A answer, and does it mean we might tuck in a product Company here or there? Yes. But it also means that we're not looking for substantive acquisitions at this current point in time.

Excellent. Thank you.

Our next question comes from Brent Thill of Jefferies with [Indiscernible] after that.t Brent, you may proceed Nikesh, you mentioned that the sassy train has barely left the station. I'm curious if you can just elaborate on that comment and talk through kind of the next couple stations that you expect to land in with this train.

Thank you, Brian. Look, if you -- I think the pandemic is partly to --[Indiscernible] more give credit to the fact that the SASE train is moving fast. Over the last 2 years, what you've seen as customers go commit to a large Cloud purchase to get involved in the development process of the Cloud purchase. And then they start to move their workloads to the Cloud. As we begin to that, there are years of MPLS of datacenter spend, which is going on. Our customers realized I don't need to bring all that traffic back home. I need to start taking the traffic and have it gone where the data is, whether it's in the public cloud or my data center on those kinds of traffic routing splitting capabilities require you to have pushed that route into the edge, put SD lan under. That also requires you to have security at the edge. Now, the majority of our customers who have security in the data center with our firewalls can easily take that capability, push it to the edge to the Palo Alto capability or Prisma Access without having to change their policy infrastructure allows them to be consistent across all form factors, all applications, all devices, which is actually through [Indiscernible]. And if you saw your leader in the [Indiscernible] by pretty much everybody else -- everyone else in the industry is behind. So, from that context, to deliver true [Indiscernible] with the sassy solution, we think we've reached a great position. We've also aggressively supplemented that with software capabilities. And I'm pretty sure every Company out there in the Fortune 500 and Fortune 100, they're all going through their journey as we speak, I don't think their market is saturated by any means, shape, or form. And is not just a security play. Actually, is a fundamental network play. People are shifting their traffic, taking away from the MPLS world to the more Cloud delivered security in the Cloud delivered Network World for GCP, AWS, Azure, others are providing the underlying network capability in addition to our security capability.

Our next question comes from Gray Powell of BTIG with Matthew Hedberg up next.

Congratulations on the good results and thanks for taking the question. So, my side, I mean, we've heard that Palo Alto's implemented some price increases on the appliance side of the business. Can you just talk about what you're doing there and is that correct? How widespread are the price increases and does that have any sort of pull-through on cash subscriptions and support?

So Gray, what has happened is with the supply chain initiatives that we saw in the industry, we've seen pretty much every player in the industry tweak their pricing for the upcoming year. And we've done something similar. It's in the low single-digits from a price increase perspective, as you know, the net yield is contingent on a competitive situation. What the customer pays, what discounts have been negotiated with them. So usually, typically you don't see the yield fully dropped to UPMLl. It will have some pull-through to our numbers as in when those price changes are affected in the field. But it's low-single-digits, it's just consistent with supply chain issues that the industry is seeing.

Understood. That's really helpful. Thank you.

And our next question comes from Matthew Hedberg of RBC, with Joel Fishbein next. Matthew, please proceed.

Hey guys, thanks for taking my question. Hey, Nikesh congrats on the quarter. You started off the call talking about all the cyber threats these days, all the cyber risks, I was curious from your perspective, as we head into the U.S. federal budget season, yeah, how do you think about that impacting your business? Is it this year thing, is it more so next year? Just kind of wondering about the cadence of federal cyber funding.

Well, as you know, the federal year-end is September. So, I think it's too late for them to have any material impact this fiscal year. I think they're busy trying to the new government in place with changing a lot of people and administration that they usually take, it takes in the first year of administration, takes a few weeks, months to work through those changes. So, I think we're going to see stuff happen in the next fiscal year for the government. They have great intentions. They want to make sure that the Cybersecurity posture of the country, of infrastructure, is improved. You've seen some executive orders in that regard. There is a very positive mindset in terms of leaning in and solving many of these problems. I'm hoping that may lead to a positive impact on the Cybersecurity industry.

Our next question comes from Joel Fishbein of trust securities with Keith Bachman up next. Joel, you may proceed.

Thanks, [Indiscernible]. Just wanted to follow up on one of the themes that you talked about during the call, and that is vendor consolidation is something that we've been looking for a long time. What do you think the catalyst is there for that, and how are you positioned? Considering identity and endpoint are part of that -- those 2 markets.

So, Joel, I think to look, my personal view, and I'm new to the industry even though have been here for three years, is I don't think there are many options in the industry to consolidate Cybersecurity spend. I think there were some phenomenal players in the market who had the amazing capability in their link, in there, swim lane. What we've done in the last few years is build multiple swim lanes where you can buy the product in the news that strongly, or you can buy a product that connects across those simulates. And that's what we're proving with our Prisma Cloud, with our SASE strategy, and our firewall strategy. We're adding more software capabilities. So, I'm going to tell you about my book. I think we're well-positioned for the consolidation around a minute majority of our platforms, at the same time, you don't have to buy it all from us if you don't want to, we're still integrated with other players in the market. If your infrastructure is so designed or you actually have infrastructure players that you're deployed. In terms of correlating that to identity and endpoint well, we are an endpoint, XDR is the new endpoint play, where we do both EDR capabilities and XDR capabilities. So, as you see, the transformation of relief from the traditional endpoint vendors to the XDR vendors, we have a play there. In terms of identity, I think the identity market will exist. I think there are players in the market. But remember, identity is about two factual authentications and validating who you are once you're in the network, when you get past the initial identity checks here back in our network flow, you're back in our firewall. So back in our Cloud instances. So, we do participate, really participate after being validated at the point at which we can get that information to integrate with existing identity players in the market. I don't know if the investors want me to go buy a [Indiscernible] player and make it better because there are some [Indiscernible] players in the market.

Thank you.

And our next question is from Keith Bachman, of BMO with Bollin next. Keith, you may proceed.

Thank you very much. Nikesh, I wanted to flush out a little bit on the consolidation fee, but in a different direction, if you could just talk about your SASE wins. And are there some common themes within the SASE when the SASE wins, where are you winning and why? And perhaps on the other side where you not winning and trying to understand as part of that theme is how are you winning within SASE, within your installed SASE, versus perhaps even. getting into some new customers that might turn into something more for Palo Alto. But if you could just talk about some common threads within your SASE environment?

Keith, I'm going to lean on Lee to tell you about why we win, where we win. But as I said I'm prepared remarks, 25% of our Prisma Access customers are net new to Palo Alto. And this would typically be a customer who's got to apply deployed firewall which cannot give that extended sassy firewall Capex thing capabilities that liked to eventually replace those firewalls. but then midlife, those firewalls, they would go with us on sassy, with us -- at least the hope and anticipation that we can go back and reverse into that with our hardware overtime as those firewalls from the competitors come to end-of-life. Lee, you want to jump in?

Yeah, I think the -- there's been a significant change in the market in terms of what customers realize they need from sort of thinking about users, employees that are off the network and sort of being like a nice to have, like maybe I can conduct into some sort of subset of applications, some of the time and that will be acceptable to the new realities of the hybrid workforce, where it's very clear that employees need to be able to access all applications, all of the time. And for the enterprise, there needs to be a full security stack to protect those connectivity’s. And that shift really favors our position with present SASE, our ability to secure all applications, our ability to provide true enterprise tested enterprise-grade security and to do it in a way that is consistent with what many of our customers already have deployed for our campus environments, branch-office environments, et cetera. And as Nikesh mentioned that that trend can come from two different directions. It can come from our existing customers who are really happy with us and his extending out to SASE or vice versa, customers that come in with SASE and then can extend into the campus and branch office environments.

And our next question, our last question for today comes from Ben Bollin of Cleveland Research. Ben, you may ask your question.

Evening, everyone. Thanks for taking the question. When you look at recent performance and even the forward outlook, how do you think about your share performance? Your share gains versus wallet share expansion within your customers. And then Nikesh, you talked a little bit about maybe within the networking, but what are IT silos do you feel like are donating spend into security as a whole? Thank you.

Thanks, Ben. You saw we had highlighted one of our customers became our first customers spend a $100 in the air with us. And we have a few who were just short of that. So, it wasn't the only one who was getting there. So, I think part of that gives you a sense of consolidation of spend and us getting a higher share of wallet. But I'd like to see it as us [Indiscernible] providing the capabilities to our customers. Are they able to do everything with us, they don't have to go and go stitch together multiple vendors because today there is a very high cost of stitching security because the cost is our ability? And we're doing all the stitching for our customers, at least giving them the ability, they can go secure the enterprise and go do other stuff in terms of your question about where different parts of idea you're probably contributing, I think there is a large network contribution around the whole sassy topic because that's it effectively, not just a security plate also happens to be a network plate. And that's where you'll see and you'll find, many times that our firewalls are procured either by the network team or the security team. So, you'll see that the whole network security space, there is a back and forth between whether it comes on the network budget or the security budget. I think the same thing in the Cloud, people haven't quite figured out that the Cloud requires its own capability from a security perspective. And we're seeing that being baked into the budget. But very often that capability is coming out of Cloud spend where we're also able to go get credits from the public Cloud CSPM to have the customer pay for that given that answers the question.

And with that, we will conclude the Q and A portion of our call today. I will now turn it back over to Nikesh for his closing remarks.

Well, I just want to say thank you, everyone, for joining us today. We look forward to seeing you at our upcoming investor events, and especially our Analyst Day. And I do want to take a moment to say thank you Thank you. Thank you to our employees, our partners, our customers, and everyone who made these results possible. [Indiscernible] have a great day.