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Sep 30, 2022

Fortinet Q3 2022 Earnings Report

Reported financial results for the third quarter ended September 30, 2022.

Key Takeaways

Fortinet reported a strong third quarter in 2022, with revenue and billings growth exceeding 30%. Total revenue reached $1.15 billion, a 32.6% increase year-over-year, and billings amounted to $1.41 billion, up by 32.6%. The company's GAAP operating margin was 23.1%, and non-GAAP diluted net income per share was $0.33.

Total revenue increased by 33% year-over-year to $1.15 billion.

Product revenue grew by 39% year-over-year reaching $468.7 million.

Service revenue increased by 28% year-over-year to $680.8 million.

Billings increased by 33% year-over-year reaching $1.41 billion.

Total Revenue
$1.15B
Previous year: $867M
+32.6%
EPS
$0.33
Previous year: $0.2
+65.0%
Total Billings
$1.41B
Previous year: $1.06B
+33.0%
Gross Profit
$867M
Previous year: $656M
+32.1%
Cash and Equivalents
$964M
Previous year: $1.85B
-48.0%
Free Cash Flow
$395M
Previous year: $330M
+19.8%
Total Assets
$5.34B
Previous year: $5.97B
-10.6%

Fortinet

Fortinet

Fortinet Revenue by Segment

Forward Guidance

For the fourth quarter of 2022, Fortinet expects revenue in the range of $1.275 billion to $1.315 billion and billings in the range of $1.665 billion to $1.720 billion.

Positive Outlook

  • Revenue in the range of $1.275 billion to $1.315 billion
  • Billings in the range of $1.665 billion to $1.720 billion
  • Non-GAAP gross margin in the range of 75.0% to 76.0%
  • Non-GAAP operating margin in the range of 30.0% to 31.0%
  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $0.38 to $0.40

Revenue & Expenses

Visualization of income flow from segment revenue to net income