First Quarter 2024 Highlights

  • Service revenue of $944 million, up 24% year over year
  • GAAP operating margin of 23.7%
  • Non-GAAP operating margin of 28.5%
  • Cash flow from operations of $830 million
  • Free cash flow of $609 million

Riyadh: Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the first quarter ended March 31, 2024.

“We are diligently executing on our strategy announced six months ago to leverage our scale, go-to-market capabilities, customer-first focus, and engineering expertise to capitalize on the fast-growing Unified SASE and Security Operations markets while continuing to gain market share in Secure Networking,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We believe our Unified SASE offering is the most comprehensive in the industry and we are well-positioned to lead in our three core growth areas by leveraging our expertise in converging networking and security, our history of AI innovation, and our ability to integrate products across our FortiOS operating system. We’re pleased to have executed with strong financial discipline in the first quarter leading to outperforming on Non-GAAP operating margin and free cash flow.”

Financial Highlights for the First Quarter of 2024

  • Revenue: Total revenue was $1.35 billion for the first quarter of 2024, an increase of 7.2% compared to $1.26 billion for the same quarter of 2023.
  • Product Revenue: Product revenue was $408.9 million for the first quarter of 2024, a decrease of 18.3% compared to $500.7 million for the same quarter of 2023.
  • Service Revenue: Service revenue was $944.4 million for the first quarter of 2024, an increase of 24.0% compared to $761.6 million for the same quarter of 2023.
  • Billings: Total billings were $1.41 billion for the first quarter of 2024, a decrease of 6.4% compared to $1.50 billion for the same quarter of 2023.
  • Deferred Revenue: Total deferred revenue was $5.79 billion as of March 31, 2024, an increase of 18.6% compared to $4.88 billion as of March 31, 2023.
  • GAAP Operating Income and Margin: GAAP operating income was $321.2 million for the first quarter of 2024, representing a GAAP operating margin of 23.7%. GAAP operating income was $273.5 million for the same quarter of 2023, representing a GAAP operating margin of 21.7%.
  • Non-GAAP Operating Income and Margin: Non-GAAP operating income was $386.1 million for the first quarter of 2024, representing a non-GAAP operating margin of 28.5%. Non-GAAP operating income was $334.0 million for the same quarter of 2023, representing a non-GAAP operating margin of 26.5%.
  • GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $299.3 million for the first quarter of 2024, compared to GAAP net income of $247.7 million for the same quarter of 2023. GAAP diluted net income per share was $0.39 for the first quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.31 for the same quarter of 2023, based on 793.4 million diluted weighted-average shares outstanding.
  • Non-GAAP Net Income and Diluted Net Income Per Share: Non-GAAP net income was $333.9 million for the first quarter of 2024, compared to non-GAAP net income of $269.7 million for the same quarter of 2023. Non-GAAP diluted net income per share was $0.43 for the first quarter of 2024, based on 770.5 million diluted weighted-average shares outstanding, compared to $0.34 for the same quarter of 2023, based on 793.4 million diluted weighted-average shares outstanding.
  • Cash Flow: Cash flow from operations was $830.4 million for the first quarter of 2024, compared to $677.5 million for the same quarter of 2023.
  • Free Cash Flow: Free cash flow was $608.5 million for the first quarter of 2024, compared to $647.2 million for the same quarter of 2023.

-Ends-

About Fortinet (www.fortinet.com)

Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with high-profile, well-respected organizations from both the public and private sectors, including CERTs, government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

For More Information:
Abdullah Inayat
W7Worldwide Marketing Communications Consultancy Agency
Media Relations Director
a.inayat@w7worldwide.com