Ken Xie : We’re still hiring and — but also, the high probably will be a little bit behind on the top-line growth. Make sure we’re keeping the — improving the productivity efficiency. But also, we probably will also try to enhance certain hygiene process, which we kind of not quite do in the last two-three years during the pandemic, which certain low performance. We probably need to be kind of more disciplined through — to have certain performance review of kind of participant.
Keith Jensen : Yeah. I would use that to kind of come back to, I think, Shaul’s question and make a couple of points. I think that as Ken kind of pointed out, we’ve had a lot of salespeople. We certainly have sales capacity to deliver on the numbers. At the same time, I think we’ve been very faithful to — when we talk about 25% operating margin, and you see us continually coming in above that. So we have the opportunity there to invest more. And on that note, I think that the conversations with the channel partners, the distributors that we’re having, I think they’re much more informative, detailed at the right levels now than they were two years ago. There’s a lot more cooperation information sharing with the distributors. And I think a byproduct of that is I think there’s some opportunities for us maybe to invest in our channel partners in a variety of different ways as we go through this next 12 to — probably six to 12 months.
Ken Xie : Yeah. I kind of keeping refer to the Page 10. The last 13 years, the gross margin. So that’s where we have the margin, and we’ve been GAAP profit of the three years since IPO. So if we need to invest in the growth, we definitely have the margin to do that. But on the other side, we also want to keep a healthy, healthy model and take care both on the growth and margin.
Joseph Gallo : Thank you.
Operator: Thank you. And our next question comes from Andrew Nowinski with Wells Fargo. Mr. Nowiski, your line is open.
Andrew Nowinski : Thank you. I want to ask about the geographic demand trends. So you saw — I think you saw strength in international regions in Europe. I was just wondering how sustainable do you think that demand is in those regions? Or are they just maybe one to two quarters behind the U.S. in terms of seeing the impact from the macro?
Keith Jensen : Yeah. I think that we have a competitive advantage when you look at Europe and parts of the international emerging, where we are oftentimes viewed as being the incumbent to have number one market share. So in an environment in which maybe the IT budgets start to suffer more in Europe than they do in the U.S., which is not what we’re seeing currently, right? Currently, we’re seeing the IT budgets are lower in the U.S. than they are in Europe based on some recent surveys. I think we’re better prepared to work our way through that in Europe because of our dominant position in that market.
Andrew Nowinski : Okay. Got it. And then I think you talked about seeing strength in the SMB segment, adding about 6,500 new logos. I guess I was wondering, as it relates to your universal SASE solution, can you just talk about maybe how you’re competing against, if at all, against Microsoft’s new Entra solutions that are targeting that market?
Ken Xie : Yeah, we kind of more leverage our huge installation base and also the technology, the product, which address the network security. Microsoft definitely have some good customer base in the enterprise side. But on the network security, which is addressed more beyond the sort of enterprise, definitely, we have some advantage there. And also we’re not seeing Microsoft have any solution to address network security area. So we do believe there’s an opportunity for both companies.
Andrew Nowinski : Thank you.
Operator: Thank you. That concludes our question-and-answer session. I would now like to turn the call back to Peter Salkowski for closing remarks.
Peter Salkowski : Thank you, Trace. I’d like to thank everyone for joining today’s call. Fortinet will be attending investor conferences hosted by Deutsche Bank, Goldman Sachs, Oppenheimer, Rosenblat and Stifel during the third quarter. Fireside chat webcast links will be posted in the Events and Presentations section of Fortinet’s Investor Relations website. If you have any follow-up questions, please feel free to contact me. Have a good rest of your day. Thank you.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.
