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Sep 30, 2021

Fortinet Q3 2021 Earnings Report

Announced financial results for the third quarter ended September 30, 2021.

Key Takeaways

Fortinet reported a strong Q3 2021, exceeding $1 billion in quarterly billings for the first time. Total revenue reached $867.2 million, a 33% increase year-over-year, driven by growth in both product and service revenue. The company's Secure SD-WAN solution was recognized as a Leader in the 2021 Gartner Magic Quadrant for WAN Edge Infrastructure.

Total revenue increased by 33% year-over-year to $867.2 million.

Product revenue grew by 51% year-over-year to $337.1 million.

Total billings increased by 42% year-over-year, reaching $1.06 billion.

GAAP diluted net income per share was $0.97.

Total Revenue
$867M
Previous year: $651M
+33.2%
EPS
$0.2
Previous year: $0.18
+11.1%
Total Billings
$1.06B
Previous year: $750M
+41.4%
Gross Profit
$656M
Previous year: $512M
+28.2%
Cash and Equivalents
$1.85B
Previous year: $882M
+109.9%
Free Cash Flow
$330M
Previous year: $186M
+77.6%
Total Assets
$5.97B
Previous year: $3.59B
+66.5%

Fortinet

Fortinet

Fortinet Revenue by Segment

Forward Guidance

For the fourth quarter of 2021, Fortinet expects revenue in the range of $940 million to $970 million and billings in the range of $1.165 billion to $1.215 billion. They also anticipate a non-GAAP diluted net income per share between $1.10 and $1.15.

Positive Outlook

  • Revenue in the range of $940 million to $970 million
  • Billings in the range of $1.165 billion to $1.215 billion
  • Non-GAAP gross margin in the range of 75.0% to 76.0%
  • Non-GAAP operating margin in the range of 27.0% to 28.0%
  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. common stockholders in the range of $1.10 to $1.15

Revenue & Expenses

Visualization of income flow from segment revenue to net income