Fortinet
🇺🇸 NASDAQ:FTNT
•
Dec 31, 2024
Fortinet Q4 2024 Earnings Report
Key Takeaways
Fortinet delivered strong Q4 2024 results, with total revenue increasing 17.3% year-over-year to $1.66 billion, driven by both product and service revenue growth. Non-GAAP operating margin reached a record 39.2%, and free cash flow surged to $380 million.
Fortinet Revenue
Fortinet EPS
Fortinet Revenue by Segment
Forward Guidance
For Q1 2025, Fortinet expects revenue between $1.50 billion and $1.56 billion, with a non-GAAP operating margin of 30-31%. Full-year 2025 revenue guidance is in the range of $6.65 billion to $6.85 billion.
Positive Outlook
- Revenue expected to grow between $6.65B and $6.85B in FY 2025.
- Non-GAAP gross margin expected to remain strong between 79-81%.
- Billings projected between $7.2B and $7.4B for FY 2025.
- Continued investment in high-growth Unified SASE and Security Operations markets.
- Fortinet maintains a strong cash position with over $2.87B in cash and cash equivalents.
Challenges Ahead
- Revenue growth expected to slow down compared to prior years.
- Macroeconomic uncertainties could impact IT spending.
- Non-GAAP operating margin expected to decline slightly compared to Q4 2024.
- Stock-based compensation remains a key expense impacting margins.
- Potential headwinds in global cybersecurity spending trends.
Revenue & Expenses
Visualization of income flow from segment revenue to net income