So now you’re – we’re offering capabilities that Splunk has. We’re offering capability that QRadar has, we’re offering capability that Chronicle and Sentinel have in XSIAM, right? So we’re doing that. To your question, you should expect us to say, listen, you have XSIAM, if you had Prisma Cloud, it will work a lot better. If you have the XDR, the Prisma Cloud host protection and XDR host protection should work a lot better. So you’ll start to see us selectively start to create — demonstrate value across our platforms. So it’s a great question, I think. But it needs to — customers need to be evolved to that because everybody has a bunch of products out there and not everybody is lined up with the same day for end of life. So I think you’re right, you could see more of that from us in the next 3 to 5 years.
BJ Jenkins: I’d just add one thing. For many of the large deals that you saw in the presentation, it’s not just looked at as a solution acquisition cost. We put together for that customer not only the solution acquisition costs and the better security outcome you get, we talk about their operating costs, how they have to train their people, how many people do they need to operate these solutions in the environment and the savings they get. So that when they go to justify an 8-figure deal with their CFO, they’re talking about reducing capital and operating costs with better security outcomes. And I think Lee hit on this in his earlier answer. There hasn’t been a company that’s really been able to do that before in this industry. And when you combine those two, I think it’s what’s helped us in a tough economic environment to continue to close larger and larger deals with those customers.
Walter Pritchard: Great. Thank you. Next up, we have Joe Gallo from Jefferies. And our final question will come from Adam Borg at Stifel. Go ahead, Joe.
Joe Gallo: And great results, and I appreciate the long-term framework. Just wanted to drill into the visibility into fiscal ’24 guidance. You guys just stood up 18% billings growth, which is incredible on a 44% comp. I imagine that had some backlog benefit, though. Now you’re guiding to an acceleration in billings next year relative to 4Q which, as an opening guide, we would presume to be conservative. So what underpins the confidence in that, especially as you have hardware and duration headwinds?
Nikesh Arora: So first of all, Joe, you did a great job on CNBC today navigating the questions about our stock. So thank you very much. On your question, look, we have conviction in some of the platforms, like let’s start with our favorite one today. It’s like XSIAM came out of left field. It did $200 million for us. Even we – would have been happy at $100 million for our fiscal year. It came in at $200 million. So part of what you’re seeing is that there are some products where we have tailwinds. And I think the part we’re sort of normalizing for is the – not normalizing for, the part we sort of we said to you, the part that we’re careful about is the hardware normalization, which we’ve been anticipating. We’re always positively surprised every quarter, and it finally came home in spades in Q4.
So I think the forecast we have is what we represent to our Board. That’s what we’re saying we’re going to go do. That’s what we’re telling you. Now are we going to try and work hard to go beat it? Yes, of course, that’s what we do every time. There’s lots of puts and takes. So based on the puts and takes, based on where we are in different products based on what plans we have to launch different things, this is our best estimate as of now. And we’re trying to give it our best to go out and deliver it. I think that’s the best way to describe how you think about our numbers. Yes, of course, it’s hardware headwinds. There’s SASE tailwinds. I don’t know if you saw, we became the only vendor in SASE far right in a single vendor, sort of SD-WAN plus SSE.
So there’s some good tailwinds we have. Customers pay attention to these kinds of things.
Walter Pritchard: All right. Our last question from Adam Borg at Stifel. Go ahead, Adam.
Adam Borg: Awesome. Maybe just for Nikesh or BJ, just on the federal vertical talk of some large deals in the quarter. Maybe just talk about the opportunity that you’re seeing, especially as we head into the fiscal year-end for the government next quarter?
BJ Jenkins: Yes. I think to Nikesh’s credit, even before I came on board, there was a large investment in our federal team. And the knowledge that with many of the federal directives, the budget being put in, and obviously, some of the geopolitical events, it was an opportunity for the company. And so we’re seeing the benefits of many of those forward investments, and we’re going to continue to invest there. There’s obviously large-scale projects that are occurring. We had one last year that we announced was our largest deal of the year. There – those take a long time to mature. And we’re involved in many of them. So I feel like we have a great opportunity going forward in that space. There are specific ones obviously out there that we’re looking to — we’ve got some first orders and then gain momentum with them, and I think we’ll be talking more about that in the coming quarters.
Walter Pritchard: All right. Thanks, Adam, for your question. With that, we’re going to close it out, and I’m going to pass it back to Nikesh for some closing remarks.
Nikesh Arora: Thank you, Walter. I just want to take the opportunity one more time to thank all of you. I know this was a unique one. Will you be telling your future mentees that you’re going to mentor in the analyst community, maybe talking about that one Friday afternoon call which Palo Alto hosted out of their sort of misdirected sense of trying to get you guys to go do this over the weekend for us. So, we really appreciate taking the time. We apologize for taking up some of your Friday. We will be available tomorrow and day after for some of you who’ve been kind enough to schedule time to talk to us because we want to make sure you get all your questions answered. It would be remiss of me not to both acknowledge and thank our employees, which is what makes all of this happen, and all of our partners out there who help us deliver this capability.
And of course, I also want to thank my entire management team for delivering a really, really good FY ’23 and what has been a yet another sort of different year. And I don’t think I’ve had a normal year in the last five years between the pandemic and supply chain and inflation and money and this. So I look forward to possibly a normal year next year. And again, once again, thank you very, very much for all your support and your indulgence.
