Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| So for now, we believe we have a competitive advantage |
| Now the question is how do I go in and get the person who has one to go to five, who has two go to five or go ahead and sell the entire five together, because we believe at this point in time, we're uniquely positioned to be able to do that |
| And as a result, we've been able to negotiate a better deal which makes us more confident that we can sustain higher gross margins because eventually it's the gross margin line, which means better operating margin, which gives us comfort on our operating margin guidance, which gives us comfort on our free cash flow guidance |
| So we think we have a competitive advantage at this point in time across the three platforms and now is the time to strike |
| The other thing you've seen, we've driven a 1,000 basis point improvement in operating margin, which eventually falls to the cash flow line |
| And we seem to be doing really well right now |
| Those are four ways to inspect network traffic, right? Between all [indiscernible] so in general, that category is going to continue to see strong demand as long as we expect traffic to go up |
| I hope you're doing well |
| That's why we've said we come back after 12 months to the better trajectory than we have had in the past |
| Demand continues to grow bad, things continue to happen at a faster and faster pace |
| We've demonstrated we can get north of 6,000 XDR customers against all the existing XDR plays in the market |
| The browser because it's unencrypted, you can see everything you're doing, and that gives us much better control characteristics vis-à-vis something that you intercept after encryption, which is many people don't allow you to view encrypted traffic |
| If you look in the history of cybersecurity, any company that has run really well for three to five years on a growth trajectory |
| And given you guys are strong long-term investors who want to start to double or triple in the long term, I'm sure you all appreciate that |
| And now because -- why not now? The longer I wait, look, when there's a profitable strategy that is being executed by one vendor, you get about two, three years of a competitive advantage |
| And third area, generative AI helps is reducing costs vis-à-vis automation and summarization and natural line interface |
| We're saying we're going to have 20 great things |
| And there, we can offer seven to eight vendors can get consolidated into one, you get a better security posture, better security outcome, possibly lower cost |
| At some level, you do -- we -- it works better if you use our product because we understand the data that was collected |
| Everybody understands the value of a cohesive cloud platform and possibly a solid platform |
| So that gives us comfort that on a cash flow basis, we'll stay true to the mid-30s plus guidance we've given in the past |
| We've demonstrated we can have 40% market share, hardware firewalls, 50% market share and cloud firewalls in software firewalls |
| So those things help |
| If I can show that I am better, cheaper, faster and more effective in my Stitch platform approach, then there is something to talk about |
| Every company that has been extremely successful has destroyed some legacy thinking, whether it's Uber or [indiscernible] the other one |
| So everybody understands the value, you have a cohesive network security platform |
| Cybersecurity demand continues |
| So we've demonstrated each of those categories we win in respect to whether they're in part of a platform |
| Great |
| There are people who are doing really well in certain categories, but nobody has the entire cabin |
| Statement |
|---|
| So you had to cut the guidance, the billings guidance by about $600 million, over half of that was because of some weakness in the Fed |
| And then I figured out the key detractors are customers are stuck in legacy vendors, customers are scared of executing a transition because cybersecurity sort of is not simple as complicated |
| There's cybersecurity spending fatigue |
| All those three use cases were we were attempting to serve an industry with a poor use case called remote browser isolation, which is somewhat a not so great user experience, if you will |
| We sacrifice short-term billings or short-term revenue in the interest of longer-term growth and more growth in the future |
| They all came up and challenged in existing thesis |
| So there is a risk |
| I'm sure there's some risk |
| So there's that risk |
| So there is frustration |
| Nikesh Arora There should have been skepticism then |
| So fatigue in the context of spending more money and not getting the outcome |
| The question now really is it's not a product innovation question for us anymore, which is what the big challenge then was |
| It seems like now there's a little bit more skepticism now |
| If I have to indicate somebody else's third-party data, then that's the risk because I don't know how they collected it |
| They're getting frustrated because they're getting breached more |
| Hamza Fodderwala Maybe the pushback to that would be the risk level is high |
| I think what I haven't heard you talk as much about is how you're securing Generative AI because that's a big problem |
| But they're getting frustrated |
| The only problems have never been there before |
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