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Sep 30, 2023

Fortinet Q3 2023 Earnings Report

Announced financial results for the third quarter ended September 30, 2023.

Key Takeaways

Fortinet reported a total revenue of $1.33 billion, up 16% year over year. GAAP diluted net income per share was $0.41, up 41% year over year. The company is focusing on the faster growing SASE and Security Operations markets.

Total revenue was $1.33 billion, up 16% year over year

Service revenue was $868.7 million, up 28% year over year

Billings were $1.49 billion, up 6% year over year

GAAP operating income was $303.2 million, up 14% year over year

Total Revenue
$1.33B
Previous year: $1.15B
+16.1%
EPS
$0.41
Previous year: $0.33
+24.2%
Total Billings
$1.49B
Previous year: $1.41B
+5.7%
Gross Profit
$1.02B
Previous year: $867M
+17.4%
Cash and Equivalents
$2.19B
Previous year: $964M
+126.8%
Free Cash Flow
$481M
Previous year: $395M
+21.7%
Total Assets
$7.48B
Previous year: $5.34B
+40.2%

Fortinet

Fortinet

Fortinet Revenue by Segment

Forward Guidance

For the fourth quarter of 2023, Fortinet currently expects: •Revenue in the range of $1.380 billion to $1.440 billion •Billings in the range of $1.560 billion to $1.700 billion •Non-GAAP gross margin in the range of 75.5% to 76.5% •Non-GAAP operating margin in the range of 27.5% to 28.5% •Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $0.42 to $0.44, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 780 million to 790 million.

Positive Outlook

  • Revenue in the range of $1.380 billion to $1.440 billion
  • Billings in the range of $1.560 billion to $1.700 billion
  • Non-GAAP gross margin in the range of 75.5% to 76.5%
  • Non-GAAP operating margin in the range of 27.5% to 28.5%
  • Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of $0.42 to $0.44, assuming a non-GAAP effective tax rate of 17%

Revenue & Expenses

Visualization of income flow from segment revenue to net income