F5 Networks Inc Q4 2020 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : Frantois, if I can just start with getting some color from you on the traction you're seeing for Shape. You talked about the opportunities that you're seeing. Can you just talk about whether you're seeing kind of this adoption happening just because there's more need for security solutions? Or are you replacing any existing solutions? And how do we get comfort around not seeing like a wave of vendor consolidation in security once we get post kind of COVID planning from the customers? And I have a follow-up.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : What I was trying to get to is we've had a lot of momentum here for the security vendors, overall. So once we get post-COVID planning from the enterprises, do we see kind of more consolidation in the number of security vendors that most enterprises work with?

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : Yes. So overall broad application services. Yes. Yes. So if I can just follow-up, maybe for Frank quickly because I know you're also up on the hour here. Just looking at the operating margins here, Frank, when the Shape acquisition was announced. But prior to that, you were looking at about 33% to 35% operating margin. Now you're guiding to about 31%, I think, for next year. When I think about the delta there, is it primarily Shape? Or do you think there's kind of the environment that had an impact on this?