Fortinet Q4 2020 Earnings Report
Key Takeaways
Fortinet reported strong Q4 2020 financial results, with total revenue up 21% year-over-year. The company's performance was driven by strong sales execution, an innovative culture, and growing market demand for cybersecurity solutions.
Total revenue reached $748.0 million, a 21% increase year-over-year.
Product revenue increased by 21% year-over-year, totaling $288.4 million.
Service revenue grew by 21% year-over-year, reaching $459.6 million.
GAAP diluted net income per share was $0.89, compared to $0.67 for the same quarter of 2019.
Fortinet
Fortinet
Fortinet Revenue by Segment
Forward Guidance
For the first quarter of 2021, Fortinet expects revenue in the range of $670 million to $685 million and billings in the range of $765 million to $780 million.
Positive Outlook
- Revenue in the range of $670 million to $685 million
- Billings in the range of $765 million to $780 million
- Non-GAAP gross margin in the range of 78.5% to 79.5%
- Non-GAAP operating margin in the range of 22.5% to 23.5%
- Diluted non-GAAP net income per share in the range of $0.70 to $0.75
Challenges Ahead
- Uncertainty regarding the impact of the COVID-19 pandemic on employees and overall financial performance.
- Potential negative impacts from the COVID-19 pandemic on sales, billings, revenue, demand and buying patterns.
- Component supply and ability to manufacture products to meet demand in a timely fashion may be affected by the pandemic.
- Possible increased costs for shipping and components due to the pandemic.
- The duration and severity of the economic downturn from the pandemic may negatively impact business and operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income