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Sep 30, 2020

Fortinet Q3 2020 Earnings Report

Reported solid third-quarter financial results, driven by strong performance in Secure SD-WAN, cloud, and Security Fabric offerings.

Key Takeaways

Fortinet reported a strong third quarter with total revenue reaching $651.1 million, a 19% increase year-over-year. The company's Secure SD-WAN revenue more than doubled compared to the same period last year. Fortinet's security-driven networking approach is well-positioned to protect the multiple edges created by digital transformation and cloud migration.

Total revenue increased by 19% year-over-year, reaching $651.1 million.

Product revenue grew by 14% year-over-year, totaling $223.8 million.

Service revenue increased by 22% year-over-year, amounting to $427.3 million.

Total billings increased by 20% year-over-year, reaching $749.8 million.

Total Revenue
$651M
Previous year: $548M
+18.9%
EPS
$0.18
Previous year: $0.13
+38.5%
Total Billings
$750M
Previous year: $627M
+19.7%
Gross Profit
$512M
Previous year: $423M
+20.9%
Cash and Equivalents
$882M
Previous year: $1.18B
-24.9%
Free Cash Flow
$186M
Previous year: $204M
-8.8%
Total Assets
$3.59B
Previous year: $3.55B
+1.1%

Fortinet

Fortinet

Fortinet Revenue by Segment

Forward Guidance

For the fourth quarter of 2020, Fortinet expects revenue in the range of $710 million to $730 million and billings in the range of $890 million to $920 million.

Positive Outlook

  • Revenue in the range of $710 million to $730 million
  • Billings in the range of $890 million to $920 million
  • Non-GAAP gross margin in the range of 78.0% to 80.0%
  • Non-GAAP operating margin in the range of 27.0% to 29.0%
  • Diluted non-GAAP net income per share in the range of $0.95 to $0.97, assuming a non-GAAP effective tax rate of 21%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income