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Dec 31, 2022

Fortinet Q4 2022 Earnings Report

Reported fourth quarter and full year financial results, demonstrating robust revenue growth and profitability.

Key Takeaways

Fortinet reported strong Q4 2022 results with a 33% increase in total revenue to $1.28 billion. The company's GAAP net income was $313.8 million, and free cash flow reached $497.2 million. For the full year 2022, revenue grew by 32% to $4.42 billion, with a GAAP net income of $857.3 million.

Total revenue increased by 33% year-over-year to $1.28 billion.

Product revenue grew by 43% year-over-year to $540.1 million.

Service revenue increased by 27% year-over-year to $742.9 million.

GAAP operating income increased by 66% year-over-year to $357.8 million.

Total Revenue
$1.28B
Previous year: $964M
+33.1%
EPS
$0.44
Previous year: $0.25
+76.0%
Total Billings
$1.72B
Previous year: $1.31B
+31.3%
Gross Profit
$986M
Previous year: $735M
+34.1%
Cash and Equivalents
$1.68B
Previous year: $1.32B
+27.6%
Free Cash Flow
$497M
Previous year: $216M
+130.7%
Total Assets
$6.23B
Previous year: $5.92B
+5.2%

Fortinet

Fortinet

Fortinet Revenue by Segment

Forward Guidance

For the first quarter of 2023, Fortinet expects revenue in the range of $1.180 billion to $1.220 billion and billings in the range of $1.415 billion to $1.465 billion. For the fiscal year 2023, the company expects revenue in the range of $5.370 billion to $5.430 billion and service revenue in the range of $3.335 billion to $3.365 billion.

Positive Outlook

  • Revenue in the range of $1.180 billion to $1.220 billion for Q1 2023
  • Billings in the range of $1.415 billion to $1.465 billion for Q1 2023
  • Non-GAAP gross margin in the range of 75.0% to 76.0% for Q1 2023
  • Non-GAAP operating margin in the range of 23.0% to 24.0% for Q1 2023
  • Diluted non-GAAP net income per share in the range of $0.27 to $0.29 for Q1 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income