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Mar 31, 2020
Fortinet Q1 2020 Earnings Report
Fortinet's first quarter results were driven by strategic internal investments, leading to industry-leading products and services with expansion into adjacent markets and sales force growth.
Key Takeaways
Fortinet reported a strong first quarter with a 22% year-over-year increase in total revenue, driven by growth in both product and service revenue. The company's strategic investments and competitive advantages, particularly in VPN throughput capacity, contributed to market share gains. Fortinet expects the COVID-19 pandemic may have a material negative impact on future periods.
Total revenue increased by 22% year-over-year to $576.9 million.
Product revenue grew by 18% year-over-year to $192.3 million.
Billings increased by 21% year-over-year to $667.8 million.
GAAP diluted net income per share was $0.60.
Revenue by Segment
Forward Guidance
For the second quarter of 2020, Fortinet expects revenue between $590 million and $605 million, billings between $700 million and $725 million, non-GAAP gross margin between 77.5% and 78.5%, non-GAAP operating margin between 23% and 24%, and diluted non-GAAP net income per share between $0.64 and $0.66.
Positive Outlook
- Revenue in the range of $590 million to $605 million
- Billings in the range of $700 million to $725 million
- Non-GAAP gross margin in the range of 77.5% to 78.5%
- Non-GAAP operating margin in the range of 23% to 24%
- Diluted non-GAAP net income per share in the range of $0.64 to $0.66, assuming a non-GAAP effective tax rate of 22%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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