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Sep 30, 2024

Fortinet Q3 2024 Earnings Report

Reported strong financial results with revenue exceeding guidance and record non-GAAP operating margin.

Key Takeaways

Fortinet reported a strong third quarter in 2024, with total revenue up 13% year-over-year to $1.51 billion. The company's non-GAAP operating margin reached a record 36.1%, and billings and product revenue returned to growth. Fortinet is raising its 2024 revenue and non-GAAP operating margin guidance.

Total revenue increased by 13% year-over-year, with service revenue up by 19%.

Billings and product revenue experienced a return to growth.

GAAP operating margin reached a record of 31.2%.

Free cash flow was reported at $572 million.

Total Revenue
$1.51B
Previous year: $1.33B
+13.0%
EPS
$0.63
Previous year: $0.41
+53.7%
Total Billings
$1.58B
Previous year: $1.49B
+6.2%
Gross Profit
$1.24B
Previous year: $1.02B
+22.4%
Cash and Equivalents
$2.49B
Previous year: $2.19B
+13.8%
Free Cash Flow
$572M
Previous year: $481M
+18.9%
Total Assets
$8.85B
Previous year: $7.48B
+18.4%

Fortinet

Fortinet

Fortinet Revenue by Segment

Forward Guidance

For the fourth quarter of 2024, Fortinet expects revenue in the range of $1.560 billion to $1.620 billion and billings in the range of $1.900 billion to $2.000 billion.

Positive Outlook

  • Revenue in the range of $1.560 billion to $1.620 billion
  • Billings in the range of $1.900 billion to $2.000 billion
  • Non-GAAP gross margin in the range of 79.5% to 80.5%
  • Non-GAAP operating margin in the range of 33.0% to 34.0%
  • Diluted non-GAAP net income per share in the range of $0.58 to $0.62

Revenue & Expenses

Visualization of income flow from segment revenue to net income