SUNNYVALE, Calif., Nov. 11, 2024 (GLOBE NEWSWIRE) -- Ken Xie, Founder, Chairman of the Board, and Chief Executive Officer at Fortinet“As we celebrate the 15th year anniversary of our IPO, we reflect on the leading role Fortinet has played in shaping the continued evolution of cybersecurity. Innovation has been in our DNA since our inception more than 20 years ago, and with our customers at the center of everything we do, we’ve built a world-class team, developed an industry-leading portfolio of integrated ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-34511 ______________________________________ FORTINET, INC. (Exact name of registrant as specified in its ...

Fortinet Inc. (FTNT) reported strong third-quarter 2024 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and improved year over year. Fortinet reported third-quarter 2024 non-GAAP earnings per share (EPS) of 63 cents, which beat the Zacks Consensus Estimate by 23.53%. The bottom line climbed 53.7% from the year-ago quarter's earnings of 41 cents. Total revenues of $1.51 billion beat the consensus mark by 2.1% and improved 13% year over year, driven by strong growth in servi ...

Financial Data and Key Metrics - Total revenue grew 13% YoY to $1.508 billion, driven by 19% growth in service revenue and a return to product revenue growth [7][20] - Service revenue accounted for 69% of total revenue, reaching $1.034 billion, with SaaS solutions driving growth [20] - Product revenue increased 2% to $474 million, marking the first positive growth in five quarters [20] - Gross margin reached a record 83.2%, up 630 basis points, with product gross margin at 71.6% and service gross margin at 88.4% [23] - Operating margin increased 130 basis points to a record 36.1% [24] - Free cash flow was $572 million, representing a margin of 38% [26] Business Line Performance - Unified SASE billings grew 14%, accounting for 23% of total business, driven by strong demand for SSE and cloud technologies [7][15] - Security Operations billings grew 32%, outpacing the overall market and representing 10.5% of total business [7][11] - Secure Networking returned to positive growth, driven by market share gains [7] - OT billings in the manufacturing vertical grew 119%, while retail billings returned to growth after six quarters, up 9% [19] Market Performance - EMEA was the best-performing geography with double-digit growth [18] - Large and mid-enterprises represented 91% and 76% of SASE and Security Operations billings, respectively [17] - Manufacturing and retail verticals showed strong growth, with manufacturing billings up over 20% and retail billings up 9% [19] Strategy and Industry Competition - The company continues to leverage its single operating system (FortiOS) and proprietary ASIC technology to deliver superior performance and cost efficiency [8] - Fortinet is expanding its Security Operations portfolio with new solutions targeting a $20 billion market opportunity [11] - The company is investing in GenAI solutions, with FortiAI expected to be announced in early 2025 [12] - Fortinet is positioned to lead in the SASE market, with a focus on sovereign SASE for service providers and large enterprises [9][10] Management Commentary on Operating Environment and Future Outlook - Management highlighted the recovery in the firewall market, with a record number of FortiGate devices expected to reach end-of-support in 2026, driving a refresh cycle starting in 2025 [31] - The company raised its full-year revenue and operating margin guidance, expecting to achieve its seventh consecutive year of exceeding the rule of 40 [14] - Management expressed confidence in the company's ability to grow faster than the market, particularly in SASE and Security Operations [12][39] Other Important Information - The company completed acquisitions of Lacework and Next DLP, which contributed to billings and revenue growth in Q3 [25] - Share buybacks totaled $600 million in Q3, with the Board increasing the share repurchase authorization by an additional $1 billion [28] - The company will host an Analyst Day on November 18 to provide updates on its strategy and mid-term financial model [97] Q&A Session Summary Question: Differentiation in Sovereign SASE - Fortinet's sovereign SASE offering is differentiated by its single operating system (FortiOS) and ability to run SASE functions on-premise and in the cloud, providing data privacy and local processing capabilities [38][39] Question: Firewall Refresh Cycle - The company expects a significant refresh cycle starting in 2025, driven by the end-of-support for a record number of FortiGate devices in 2026 [42][43] Question: Cannibalization Risk from SD-WAN to SASE Migration - Management does not see significant cannibalization risk, as SASE complements existing SD-WAN and firewall deployments, with additional service opportunities [48][49] Question: Organic ARR Growth Drivers - Organic ARR growth is driven by solutions like FortiEDR, FortiClients, and FortiNDR, with a 74% growth rate in SaaS solutions [53] Question: Sustainability of Profitability - Excluding one-time benefits, product gross margin would have been 68.4%, with operating margin at 35.1%, indicating sustainable profitability [54][56] Question: Competitive Landscape and Pricing Pressure - Discounting remains stable, with no significant pricing pressure observed, and the company continues to invest in growth opportunities [59][60] Question: Go-to-Market Strategy for SASE - The company has made significant progress in its SASE go-to-market strategy, with strong customer adoption and pipeline growth [62][63] Question: Lacework FortiCNAPP Feedback - Initial feedback on the Lacework FortiCNAPP offering has been positive, with strong integration and competitive differentiation [80][81] Question: Government Vertical Performance - The government vertical, excluding the U.S. federal market, showed stable performance, with growth in state, local, and international government sectors [83] Question: OT Business Sustainability - The OT business is expected to sustain strong growth, driven by the increasing need for IoT and edge computing security [85] Question: Hardware Appliance Performance - Mid-range and high-end hardware appliances showed stable performance, with no significant outgrowth in unit shipments [91] Question: SD-WAN Growth Potential - SD-WAN growth is expected to reaccelerate, particularly as VMware customers look for alternative solutions, with renewal cycles starting in 2025 [94][95]

Fortinet (FTNT) reported $1.51 billion in revenue for the quarter ended September 2024, representing a yearover-year increase of 13%. EPS of $0.63 for the same period compares to $0.41 a year ago. The reported revenue represents a surprise of +2.09% over the Zacks Consensus Estimate of $1.48 billion. With the consensus EPS estimate being $0.51, the EPS surprise was +23.53%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Fortinet (FTNT) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 23.53%. A quarter ago, it was expected that this network security company would post earnings of $0.41 per share when it actually produced earnings of $0.57, delivering a surprise of 39.02%. Over the last four quarters, t ...

Press Release Fortinet Reports Third Quarter 2024 Financial Results Highlights • Total revenue up 13% year over year; service revenue up 19% year over year • Billings and product revenue returns to growth • Strong billings growth in Unified SASE and Security Operations • Record GAAP operating margin of 31.2% • Record Non-GAAP operating margin of 36.1% • Cash flow from operations of $608 million; Free cash flow of $572 million • Raising 2024 revenue and non-GAAP operating margin guidance • Share repurchase a ...

Highlights Total revenue up 13% year over year; service revenue up 19% year over yearBillings1 and product revenue returns to growthStrong billings growth in Unified SASE and Security OperationsRecord GAAP operating margin of 31.2%Record Non-GAAP operating margin of 36.1%1Cash flow from operations of $608 million; Free cash flow of $572 million1Raising 2024 revenue and non-GAAP operating margin guidanceShare repurchase authorization increased by $1 billion; remaining authorization of $2 billion SUNNYVALE, C ...

Fortinet Inc FTNT will be reporting its third-quarter earnings on Thursday. Wall Street expects 52 cents in EPS and $1.48 billion in revenues as the company reports after market hours.The stock is up 60.85% over the past year, and 39.47% year-to-date.Fortinet Stock Rides Cyber Demand Boom With AI & IAM FocusFortinet's stock performance has been bolstered by its strong positioning in the expanding cybersecurity market, particularly as demand for identity and access management (IAM) solutions grows. With the ...

Fortinet (FTNT) is scheduled to report third-quarter 2024 results on Nov. 7, after market close.The cybersecurity firm projects revenues between $1.445 billion and $1.505 billion. The Zacks Consensus Estimate for the same is pegged at $1.48 billion, suggesting year-over-year growth of 10.69%.The company forecasts third-quarter non-GAAP earnings in the range of 56-58 cents per share. The consensus mark for earnings is pegged at 51 cents per share, implying a rise of 24.39% from the year-ago figure of 41 cent ...