Summary
Fortinet, Inc. reported robust financial performance for the fiscal year ended December 31, 2023, with total revenue reaching $5.30 billion, marking a significant 20% increase year-over-year. This growth was primarily driven by a strong 28% surge in service revenue, which now constitutes the majority of the company's revenue at 64%, outperforming product revenue growth of 8%. The company's net income also saw a substantial increase of 34% to $1.15 billion. The company continues to focus on its integrated "Fortinet Security Fabric" which spans secure networking, unified SASE, and AI-driven security operations. Fortinet highlighted its expanding customer base and its ongoing investments in research and development, particularly in areas like AI, to maintain its competitive edge in the cybersecurity market. Despite macroeconomic headwinds and increased competition, Fortinet demonstrated resilience, with expanding gross margins and operating income, reflecting efficient operations and strategic execution.
Financial Highlights
53 data points| Revenue | $5.30B |
| Cost of Revenue | $1.24B |
| Gross Profit | $4.07B |
| R&D Expenses | $613.80M |
| Operating Expenses | $2.83B |
| Operating Income | $1.24B |
| Interest Expense | $21.00M |
| Net Income | $1.15B |
| EPS (Basic) | $1.47 |
| EPS (Diluted) | $1.46 |
| Shares Outstanding (Basic) | 778.60M |
| Shares Outstanding (Diluted) | 788.20M |
Key Highlights
- 1Total revenue increased by 20% to $5.30 billion in 2023.
- 2Service revenue grew by 28% to $3.38 billion, now representing 64% of total revenue.
- 3Net income increased by 34% to $1.15 billion.
- 4Operating income grew by 28% to $1.24 billion, with an operating margin of 23.4%.
- 5Billings (a non-GAAP measure) increased by 14% to $6.40 billion.
- 6Deferred revenue increased by 24% to $5.74 billion.
- 7Fortinet repurchased $1.50 billion of common stock in 2023.