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Mar 31, 2021

Fortinet Q1 2021 Earnings Report

Reported strong revenue and billings growth driven by platform of on-premise and cloud security products.

Key Takeaways

Fortinet reported a strong first quarter in 2021, with total revenue reaching $710.3 million, a 23% increase year-over-year. The company's growth was fueled by its platform of on-premise and cloud security products, resulting in the highest quarterly product revenue growth in five years. Fortinet also raised its full-year guidance due to good visibility and strong business momentum.

Total revenue increased by 23% year-over-year to $710.3 million.

Product revenue grew by 25% year-over-year to $240.7 million.

Service revenue increased by 22% year-over-year to $469.6 million.

Billings increased by 27% year-over-year to $850.6 million.

Total Revenue
$710M
Previous year: $577M
+23.1%
EPS
$0.16
Previous year: $0.12
+33.3%
Total Billings
$851M
Previous year: $668M
+27.4%
Gross Profit
$554M
Previous year: $448M
+23.5%
Cash and Equivalents
$1.86B
Previous year: $626M
+197.1%
Free Cash Flow
$264M
Previous year: $292M
-9.6%
Total Assets
$5.28B
Previous year: $3.21B
+64.7%

Fortinet

Fortinet

Fortinet Revenue by Segment

Forward Guidance

For the second quarter of 2021, Fortinet expects revenue in the range of $733 million to $747 million and billings in the range of $860 million to $880 million. The company anticipates a non-GAAP gross margin between 78.5% and 79.5%, and a non-GAAP operating margin between 24.5% and 25.5%. Diluted non-GAAP net income per share is projected to be in the range of $0.83 to $0.88, assuming a non-GAAP effective tax rate of 21% and a diluted share count of 168 million to 170 million.

Positive Outlook

  • Revenue in the range of $733 million to $747 million
  • Billings in the range of $860 million to $880 million
  • Non-GAAP gross margin in the range of 78.5% to 79.5%
  • Non-GAAP operating margin in the range of 24.5% to 25.5%
  • Diluted non-GAAP net income per share in the range of $0.83 to $0.88

Revenue & Expenses

Visualization of income flow from segment revenue to net income