Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Adam Holt from – Morgan Stanley.
Adam Holt - Morgan Stanley
A couple questions about the top line. You had a particularly strong federal quarter, I was wondering, with the aggregation of large deals particularly good in the federal quarter and would you expect to see the normal uptick into the federal year-end spend in September even off of such a good second quarter for you all?
John Burris
We want to know how you like this morning time slot by the way. I'm going to hand this over to Tom McDonough our COO.
Tom McDonough
To answer both of your questions, yes, Q2 we saw the same seasonal deal flow in the federal space that we historically have, and Q3 we expect it to perform in accordance with the way we performed in other prior Q3s in the federal quarter in the fiscal federal year. It's a great space for us. We provide a great solution to the federal government and we see that business continuing to grow at a pretty rapid rate.
Adam Holt – Morgan Stanley
A quick follow up if I could, as you look in the back half, obviously, you're feeling better about G&A. You talked about investments in sales and marketing. Can you update us on where you are in terms of your sales headcount and how you're thinking about capacity as you look at a pretty strong pipeline to the back half?
John Burris
Well, this is John. I'll let Tom comment on it, but we're doing this with basically a flat headcount this year, so we know we can't do that forever. So we want to make sure that we were hitting all of our goals and objectives and we are. So we want to now start going to modest investments particularly in sales and marketing, but more importantly in our R&D. We want to make sure we're doing some things there too.
The channel leverage that we were so focused on is definitely helping us. We wouldn't be able to do this any other way with that same fixed headcount, because if you look at our headcount, we're up like 10 people this year or something like that, it's really small. So, Tom, any color on the sales thing?
Tom McDonough
Yes, Adam, from a headcount perspective, as John said, we've been relatively flat. We've added sales headcount in security engineers on a pretty tactical basis. But, as you heard in John's comments, we're planning on adding headcount both internationally and in the U.S. and we're going to start to add some of that headcount here in Q3 and Q4, primarily focused around federal business. And we're going to add headcount into Asia, as well as into EMEA. And then in Q1 of next year we'll continue to add headcount and probably expand having some direct headcount in Latin America.
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