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Fortinet's Q4 financial results show promising growth for 2023
Thu, 8th Feb 2024

Fortinet has recently released its financial results for Q4 and the whole of 2023, ending December 31st. The figures show promising growth across various key departments within the company.

The total revenue for Q4 2023 reached USD $1.42 billion, up 10.3% on the same period the previous year. Total billings stood at USD $1.86 billion, an 8.5% growth year over year. The company also reported a GAAP operating income of USD $385 million with a revenue margin of 27.2% and a non-GAAP operating income of USD $454 million with a margin of 32.0%.

The annual results were also noteworthy, with a total income of USD $5.30 billion, a 20% increase from the previous year. Service revenue capped off at USD $3.38 billion, which is 28% higher than last year. GAAP operating income came in at USD $1.24 billion, registering an increase of 28% from 2022. Furthermore, the non-GAAP operating income of USD $1.51 billion was a 25% increase. Both GAAP and non-GAAP operating margins stood at 23.4% and 28.4%, respectively.

Ken Xie, Founder, Chairman, and CEO of Fortinet, commented on the high performance: “In the fourth quarter of 2023, security operations billings grew 44% year over year and secure access service edge (SASE) billings increased 19% year over year, driven by our successful sales strategy shift and the improved execution of our sales teams."

He further added: “Our platform strategy is resonating with enterprises worldwide as we are a leader in secure networking and are the number one firewall vendor for units shipped with FortiGates accounting for over half of the global deployment. Fortinet is well-positioned to consolidate the security capabilities of our over half a million customers onto our integrated FortiOS operating system, which encompasses over 30 networking and security functions spanning on-premises and cloud environments.”

The financial forecasts for the first quarter and the full year of 2024 have been outlined by the company. Fortinet expects revenue in the range of USD $1.3 billion to USD $1.36 billion, billings in the range of USD $1.39 billion to USD $1.45 billion, and a Non-GAAP gross margin in the range of 76.5% to 77.5% for Q1 2024.

For the fiscal year 2024, the company anticipates the revenue to be in the range of USD $5.715 billion to USD $5.815 billion, service revenue in the range of USD $3.92 billion to USD $3.97 billion, and billings in the range of USD $6.4 billion to USD $6.6 billion.

These results underline the positive progress of Fortinet through the 2023 financial year. With a steadfast platform strategy, the company has proven their capability of driving growth across various departments, whilst simultaneously providing superior cybersecurity solutions to over half a million clients across the globe.