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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.
Revenue by Segment
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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