Fortinet Revenues Exceed Industry Average, Cloud Accelerates

- November 1st, 2019

Net income and cash flow figures increased significantly over the quarter as Fortinet marks its tenth year as a publicly listed company.

Fortinet (NASDAQ:FTNT), cybersecurity firm announced a 21 percent revenue uptick for the third quarter as cloud, SD-WAN and its security fabric divisions drove growth. Free cash flow for the quarter came in at US$203.7 million while non-GAAP operating margin increased to 26 percent in Q3.

As quoted in the press release:

“Strong revenue growth for Fortinet Security Fabric, cloud and SD-WAN offerings contributed to our 21% year-over-year total revenue growth in the third quarter, which we believe is stronger than the average revenue growth rate in our industry. The Americas and EMEA regions led the way with revenue growth of 24% and 21%, respectively,” said Ken Xie, Founder, Chairman and Chief Executive Officer. “As we approach the tenth anniversary of Fortinet’s initial public offering on November 18, we are focused on driving better than industry average growth for at least the next decade.”

Financial Highlights for the Third Quarter of 2019

  • Revenue: Total revenue was $547.5 million for the third quarter of 2019, an increase of 21% compared to $453.9 million for the same quarter of 2018.

  • Product revenue was $197.1 million for the third quarter of 2019, an increase of 20% compared to $164.5 million for the same quarter of 2018.

  • Service revenue was $350.4 million for the third quarter of 2019, an increase of 21% compared to $289.4 million for the same quarter of 2018.

  • Billings1Total billings were $626.6 million for the third quarter of 2019, an increase of 19% compared to $527.5 million for the same quarter of 2018.

  • Deferred Revenue: Total deferred revenue was $1.95 billion as of September 30, 2019, an increase of 26% compared to $1.54 billion as of September 30, 2018.

  • GAAP Operating Income and Margin: GAAP operating income was $100.0 million for the third quarter of 2019, representing a GAAP operating margin of 18%. GAAP operating income was $62.8 million for the same quarter of 2018, representing a GAAP operating margin of 14%.

Click here to read the full press release.

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