Fortinet,
a
global
specialist
in
broad,
integrated
and
automated
cybersecurity
solutions,
has
announced
financial
results
for
the
fourth
quarter
and
full
year
ended
December
31,
2022.
Ken
Xie,
Founder,
Chairman
and
Chief
Executive
Officer,
says,
“Total
revenue
grew
32%
in
2022
and
year-over-year
to
$4.42
billion,
and
we
generated
GAAP
net
income
of
$857.3
million.
This
marks
the
14th
consecutive
year
that
we
have
been
GAAP
profitable,
including
every
year
since
our
2009
IPO.
Cash
flow
from
operations
was
$1.73
billion
and
free
cash
flow
was
a
Fortinet
record
of
$1.45
billion
for
the
year.
“Our
market
share
gains
are
being
driven
by
Fortinet’s
integrated
and
single
platform
approach
to
cybersecurity
combined
with
FortiASIC
technology,
which
lowers
the
management
costs
and
the
total
cost
of
ownership
for
organisations.
Given
our
cost-for-performance
advantage,
the
convergence
of
security
and
networking,
and
the
consolidation
of
products
and
vendors,
we
expect
to
continue
our
solid
growth
trajectory.”
Financial
highlights
for
the
fourth
quarter
of
2022
Product
revenue:
Product
revenue
was
$540.1
million
for
the
fourth
quarter
of
2022,
an
increase
of
42.5%
compared
to
$378.9
million
for
the
same
quarter
of
2021.
Service
revenue:
Service
revenue
was
$742.9
million
for
the
fourth
quarter
of
2022,
an
increase
of
27.1%
compared
to
$584.7
million
for
the
same
quarter
of
2021.
Revenue:
Total
revenue
was
$1.28
billion
for
the
fourth
quarter
of
2022,
an
increase
of
33.1%
compared
to
$963.6
million
for
the
same
quarter
of
2021.
Billings:
Total
billings
were
$1.72
billion
for
the
fourth
quarter
of
2022,
an
increase
of
31.6%
compared
to
$1.31
billion
for
the
same
quarter
of
2021.
GAAP
operating
income
and
margin:
GAAP
operating
income
was
$357.8
million
for
the
fourth
quarter
of
2022,
representing
a
GAAP
operating
margin
of
27.9%.
GAAP
operating
income
was
$214.9
million
for
the
same
quarter
of
2021,
representing
a
GAAP
operating
margin
of
22.3%.
Non-GAAP
operating
income
and
margin:
Non-GAAP
operating
income
was
$417.6
million
for
the
fourth
quarter
of
2022,
representing
a
non-GAAP
operating
margin
of
32.5%.
Non-GAAP
operating
income
was
$274.7
million
for
the
same
quarter
of
2021,
representing
a
non-GAAP
operating
margin
of
28.5%.
GAAP
net
income
and
diluted
net
income
per
share
attributable
to
Fortinet:
GAAP
net
income
was
$313.8
million
for
the
fourth
quarter
of
2022,
compared
to
GAAP
net
income
of
$199.0
million
for
the
same
quarter
of
2021.
GAAP
diluted
net
income
per
share
was
$0.40
for
the
fourth
quarter
of
2022,
based
on
791.8
million
diluted
weighted-average
shares
outstanding,
compared
to
GAAP
diluted
net
income
per
share
of
$0.24
for
the
same
quarter
of
2021,
based
on
835.0
million
diluted
weighted-average
shares
outstanding.
Non-GAAP
net
income
and
diluted
net
income
per
share
attributable
to
Fortinet:
Non-GAAP
net
income
was
$349.7
million
for
the
fourth
quarter
of
2022,
compared
to
non-GAAP
net
income
of
$205.8
million
for
the
same
quarter
of
2021.
Non-GAAP
diluted
net
income
per
share
was
$0.44
for
the
fourth
quarter
of
2022,
based
on
791.8
million
diluted
weighted-average
shares
outstanding,
compared
to
$0.25
for
the
same
quarter
of
2021,
based
on
835.0
million
diluted
weighted-average
shares
outstanding.
Cash
flow:
Cash
flow
from
operations
was
$528.1
million
for
the
fourth
quarter
of
2022,
compared
to
$366.8
million
for
the
same
quarter
of
2021.
Free
cash
flow1:
Free
cash
flow
was
$497.2
million
for
the
fourth
quarter
of
2022,
compared
to
$215.5
million
for
the
same
quarter
of
2021.
Financial
highlights
for
the
full
year
2022
Product
revenue:
Product
revenue
was
$1.78
billion
for
2022,
an
increase
of
41.9%
compared
to
$1.26
billion
in
2021.
Service
revenue:
Service
revenue
was
$2.64
billion
for
2022,
an
increase
of
26.3%
compared
to
$2.09
billion
in
2021.
Revenue:
Total
revenue
was
$4.42
billion
for
2022,
an
increase
of
32.2%
compared
to
$3.34
billion
in
2021.
Billings:
Total
billings
were
$5.59
billion
for
2022,
an
increase
of
33.8%
compared
to
$4.18
billion
in
2021.
Deferred
revenue:
Total
deferred
revenue
was
$4.64
billion
as
of
December
31,
2022,
an
increase
of
34.4%
compared
to
$3.45
billion
as
of
December
31,
2021.
GAAP
operating
income
and
margin:
GAAP
operating
income
was
$969.6
million
for
2022,
representing
a
GAAP
operating
margin
of
21.9%.
GAAP
operating
income
was
$650.4
million
for
2021,
representing
a
GAAP
operating
margin
of
19.5%.
Non-GAAP
operating
income
and
margin:
Non-GAAP
operating
income
was
$1.21
billion
for
2022,
representing
a
non-GAAP
operating
margin
of
27.3%.
Non-GAAP
operating
income
was
$875.5
million
for
2021,
representing
a
non-GAAP
operating
margin
of
26.2%.
GAAP
net
income
and
diluted
net
income
per
share
attributable
to
Fortinet:
GAAP
net
income
was
$857.3
million
for
2022,
compared
to
GAAP
net
income
of
$606.8
million
for
2021.
GAAP
diluted
net
income
per
share
was
$1.06
for
2022,
based
on
805.3
million
diluted
weighted-average
shares
outstanding,
compared
to
GAAP
diluted
net
income
per
share
of
$0.73
for
2021,
based
on
835.3
million
diluted
weighted-average
shares
outstanding.
Non-GAAP
net
income
and
diluted
net
income
per
share
attributable
to
Fortinet:
Non-GAAP
net
income
was
$961.6
million
for
2022,
compared
to
non-GAAP
net
income
of
$666.0
million
for
2021.
Non-GAAP
diluted
net
income
per
share
was
$1.19
for
2022,
based
on
805.3
million
diluted
weighted-average
shares
outstanding,
compared
to
$0.80
for
2021,
based
on
835.3
million
diluted
weighted-average
shares
outstanding.
Cash
flow:
Cash
flow
from
operations
was
$1.73
billion
in
2022
compared
to
$1.50
billion
in
2021.
Free
cash
flow:
Free
cash
flow
was
$1.45
billion
in
2022,
compared
to
$1.20
billion
in
2021.
Share
repurchase
program:
During
the
year
ended
December
31,
2022
and
2021,
Fortinet
repurchased
36.0
million
and
12.9
million
shares
of
its
common
stock
at
an
average
price
of
$55.37
and
$57.45
per
share,
respectively,
and
for
an
aggregate
purchase
price
of
$1.99
billion
and
$741.8
million,
respectively.
Guidance
for
the
first
quarter
of
2023
Fortinet
currently
expects:
-
Revenue
in
the
range
of
$1.180
billion
to
$1.220
billion -
Billings
in
the
range
of
$1.415
billion
to
$1.465
billion -
Non-GAAP
gross
margin
in
the
range
of
75.0%
to
76.0% -
Non-GAAP
operating
margin
in
the
range
of
23.0%
to
24.0% -
Diluted
non-GAAP
net
income
per
share
attributable
to
Fortinet,
Inc.
in
the
range
of
$0.27
to
$0.29,
assuming
a
non-GAAP
effective
tax
rate
of
17%.
This
assumes
a
diluted
share
count
of
795
million
to
805
million.
For
the
fiscal
year
2023,
Fortinet
currently
expects:
-
Revenue
in
the
range
of
$5.370
billion
to
$5.430
billion -
Service
revenue
in
the
range
of
$3.335
billion
to
$3.365
billion -
Billings
in
the
range
of
$6.710
billion
to
$6.790
billion -
Non-GAAP
gross
margin
in
the
range
of
75.0%
to
76.0% -
Non-GAAP
operating
margin
in
the
range
of
25.0%
to
26.0% -
Diluted
non-GAAP
net
income
per
share
attributable
to
Fortinet, in
the
range
of
$1.39
to
$1.41,
assuming
a
non-GAAP
effective
tax
rate
of
17%.
This
assumes
a
diluted
share
count
of
805
million
to
815
million.
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