Highlights:
- Total revenue up 13% year over year; service revenue up 19% year over year
- Billingsand product revenue returns to growth
- Strong billings growth in Unified SASE and Security Operations
- Record GAAP operating margin of 31.2%
- Record Non-GAAP operating margin of 36.1%
- Cash flow from operations of $608 million; Free cash flow of $572 million
- Raising 2024 revenue and non-GAAP operating margin guidance
- Share repurchase authorization increased by $1 billion; remaining authorization of $2 billion
Fortinet, a global leader in cybersecurity, reported a strong financial performance for the third quarter of 2024, ending September 30, driven by growth in key business segments and a record operating margin.
The company’s total revenue grew by 13% yearly, bolstered by a 19% rise in service revenue, signalling continued demand for Fortinet’s comprehensive security solutions. Additionally, the company achieved renewed billings and product revenue growth, highlighting its market momentum.
Fortinet reported a record GAAP operating margin of 31.2% and a non-GAAP operating margin of 36.1%, marking an increase of 830 basis points from last year. The company attributed its performance to strategic investments in Unified Secure Access Service Edge (SASE) and Security Operations, which have fueled strong billings growth.
Cash flow from operations reached $608 million, with free cash flow at $572 million. Reflecting confidence in its financial position, Fortinet increased its share repurchase authorisation by $1 billion, leaving a remaining authorization of $2 billion.
“We are pleased to report another strong quarter as non-GAAP operating margin increased 830 basis points year over year to a company record of 36%, while revenue exceeded the high end of our guidance range, with growth of 13% year over year,” said Ken Xie, Founder, Chairman, and CEO of Fortinet.
“Our investments in the fast-growing markets of Unified SASE and Security Operations generated strong results as we continued to gain market share in Secure Networking. With our expertise in converging networking and security, a proven track record of innovation, and seamless product integration within our FortiOS and FortiASIC, we are well-positioned to lead in our three core growth areas and drive sustained growth,” Xie added.
Fortinet also raised its full-year revenue and non-GAAP operating margin guidance, reflecting confidence in its continued growth trajectory and ability to capitalize on the evolving cybersecurity landscape.
The company’s performance underscores its strategic focus on innovation and market leadership, reinforcing its commitment to delivering integrated, high-performance cybersecurity solutions.
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