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Mar 31, 2023
Fortinet Q1 2023 Earnings Report
Reported strong Q1 2023 results with revenue growth driven by both product and service revenue.
Key Takeaways
Fortinet reported a strong first quarter with a 32% increase in total revenue, driven by significant growth in both product and service revenues. The company continues to gain market share with its integrated FortiOS and custom ASIC technology, which delivers a lower total cost of ownership and improved security efficacy.
Total revenue increased by 32% year-over-year, reaching $1.26 billion.
Product revenue grew by 35% year-over-year, amounting to $500.7 million.
Service revenue increased by 30% year-over-year, totaling $761.6 million.
GAAP operating income increased by 81% year-over-year, reaching $273.5 million.
Fortinet
Fortinet
Fortinet Revenue by Segment
Revenue by Segment
Product Revenue
CapyFin.com Forward Guidance
For the second quarter of 2023, Fortinet expects revenue in the range of $1.280 billion to $1.320 billion and billings in the range of $1.560 billion to $1.600 billion. For the fiscal year 2023, Fortinet expects revenue in the range of $5.425 billion to $5.485 billion and service revenue in the range of $3.370 billion to $3.400 billion.
Positive Outlook
- Revenue in the range of $1.280 billion to $1.320 billion for Q2 2023.
- Billings in the range of $1.560 billion to $1.600 billion for Q2 2023.
- Non-GAAP gross margin in the range of 75.5% to 76.5% for Q2 2023.
- Non-GAAP operating margin in the range of 24.5% to 25.5% for Q2 2023.
- Diluted non-GAAP net income per share in the range of $0.33 to $0.35 for Q2 2023.
Challenges Ahead
- General economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, rising interest rates or reduced information technology spending.
- Instability in the global banking system
- Supply chain challenges due to the current global environment
- Negative impacts from the COVID-19 pandemic on sales, billings, revenue, demand and buying patterns, component supply and ability to manufacture products to meet demand in a timely fashion, and costs such as possible increased costs for shipping and components
- The ongoing war in Ukraine, its related macroeconomic effects and our decision to reduce operations in Russia