sb-au logo
Story image

Fortinet delivers dominant Q1 2020 financial results

07 May 2020

Cybersecurity company Fortinet has today announced its financial results for the first quarter ended March 31, 2020, indicating a very strong performance for Q1 2020 with almost every metric seeing improvement year-on-year.
 

Here are the highlights of the report:

Total revenue for Q1 2020 was US$576.9 million, an increase of 22.1% compared to $472.6 million for the prior-year period.

Fortinet’s product revenue totalled $192.3 in Q1 2020, representing an increase of 18.2% on the $162.7 million for the same quarter of 2019.

Service revenue was $384.6 million for the first quarter of 2020, an increase of 24.1% compared to $309.9 for the same period last year.

“Our strong first-quarter performance is the result of strategic internal investments we made to deliver industry-leading products and services, expand into adjacent addressable markets, grow our global sales force and invest in the channel,” says Fortinet founder, chairman and CEO Ken Xie. 

Total billings were $667.8 million for the first quarter of 2020, an increase of 21.1% compared to $551.6 million for the same quarter of 2019.

Deferred revenue totalled $2.23 billion as of March 31 this year, increasing 26.1% when compared to the $1.77 recorded at the same time last year.

GAAP net income was $104.0 million for Q1 2020, which included $28.3 million from gains on intellectual property matter, net of tax. This can be compared to a GAAP net income of $58.8 million for the same quarter of 2019.

GAAP diluted net income per share was $0.60 for the first quarter of 2020, based on 174.2 million diluted weighted-average shares outstanding.

This can be compared to GAAP diluted net income per share of $0.34 for the same quarter of 2019, based on 174.8 million diluted weighted-average shares outstanding. 

In Q1 2020, cash flow from operations was $319.4 million, rising 58% from the $201.3 million in the same quarter of 2019. 

Free cash flow was $241.8 million during the first quarter of 2020, compared to $191.1 million for the same quarter of 2019.

“Fortinet is an important strategic partner to our customers,” says Xie. 

“Our proprietary FortiASIC security processing unit (SPU) can deliver 10 times the VPN throughput capacity of comparable competitor solutions to support teleworkers. 

"This significant competitive advantage is one reason we believe we will continue to gain market share during a period of tougher economic conditions,” Xie adds.

“We believe our industry-validated teleworker and secure SD-WAN offerings, along with our SPU-driven FortiGates, Security Fabric platform and hybrid- and multicloud offerings, provide companies with more cost-effective solutions across their entire digital infrastructure.”

Story image
Experiencing ransomware significantly impacts cybersecurity approach
"The survey findings illustrate clearly the impact of these near-impossible demands. Among other things, those hit by ransomware were found to have severely undermined confidence in their own cyber threat awareness."More
Story image
Report: Power utilities increasingly at risk of devastating cyber-attacks
“Utilities’ existing systems are becoming increasingly connected through sensors and networks, and, due to their dispersed nature, are even more difficult to control.”More
Story image
How cyber-attackers use Microsoft 365 tools to steal data
Vectra security research has recently identified how cyber-attackers use Microsoft Office 365 tools against organisations to steal data and take over accounts.More
Story image
Five Eyes nations want legal access to backdoors to fight 'illegal content'
The nations argue that encryption can make the enforcement of public safety difficult, particularly when it comes to serious problems like child exploitation. More
Story image
BlueVoyant acquires Managed Sentinel, builds out Microsoft MSS offerings
“Combining Managed Sentinel’s Azure Sentinel deployment expertise with BlueVoyant’s MDR capabilities will help customers operationalise and maximise Microsoft security technologies."More
Story image
Insider threat report reveals deception in the workforce
Insider threats come from people inside an enterprise, whether they divulge proprietary information with nefarious intentions, or are just careless employees that unwittingly share sensitive data, writes Bitglass product marketing manager Juan Lugo.More