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Jun 30, 2022
Fortinet Q2 2022 Earnings Report
Announced financial results, demonstrating strong revenue and billings growth driven by large enterprise transactions and vendor consolidation.
Key Takeaways
Fortinet reported strong Q2 2022 financial results, with revenue reaching $1.03 billion, a 29% year-over-year increase. Billings grew by 36% year-over-year to $1.30 billion, driven by an over 50% increase in transactions larger than one million dollars. The company's market share gains are attributed to the convergence of networking and security, and an accelerating focus on vendor consolidation.
Total revenue increased by 29% year-over-year to $1.03 billion.
Product revenue grew by 34% year-over-year to $400.7 million.
Total billings increased by 36% year-over-year to $1.30 billion.
GAAP operating margin was 19.0%.
Revenue by Segment
Forward Guidance
For the third quarter of 2022, Fortinet expects revenue in the range of $1.105 billion to $1.135 billion and billings in the range of $1.385 billion to $1.415 billion.
Positive Outlook
- Revenue in the range of $1.105 billion to $1.135 billion
- Billings in the range of $1.385 billion to $1.415 billion
- Non-GAAP gross margin in the range of 75.0% to 76.0%
- Non-GAAP operating margin in the range of 25.0% to 26.0%
- Diluted non-GAAP net income per share in the range of $0.26 to $0.28, assuming a non-GAAP effective tax rate of 17%.
Challenges Ahead
- General economic risks, including those caused by the COVID-19 pandemic, the war in Ukraine, economic challenges, fears of a recession, and any actual recession, and the effects of increased inflation in certain geographies
- Significantly heightened 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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