“I'd expect gross margins to be in that 78% to 82% range long-term; short-term, midterm, I'd expect them to be in the 80% gross margin range.”

In context

“Remo Canessa (CFO): Yes, a few questions there. Did we hold back the sales and marketing spend? Not really. We held back sales and marketing spend, but not significantly. From a gross margin perspective, our stated gross margin has been between 78% and 82% for some time now. You're right, Brian. We've been in the 80% range for a long time. The beauty of Zscaler is the platform technology we've created. When I started here, we were doing 30 billion transactions per day. We are doing 360 billion transactions per day right now, and we still have 80% gross margin. The benefit that we have is that we can make decisions really to maximize gross margin or to get applications or increase the strength of our product by going through public cloud. We balance that. I'd expect gross margins to be in that 78% to 82% range long-term; short-term, midterm, I'd expect them to be in the 80% gross margin range. If we need to shift our focus to maximize our margins, we will, but we are committed to keep innovating. We won’t slow down on building more products.”