Fortinet Q2 Earnings: Revenue Beat, EPS Beat, Strong Guidance And More

Fortinet Inc FTNT reported second-quarter financial results after the market close on Tuesday. Here’s a look at the key numbers from the quarter.

Q2 Earnings: Fortinet’s second-quarter revenue increased 11% year-over-year to $1.43 billion, beating consensus estimates of $1.403 billion. The cybersecurity company reported second-quarter adjusted earnings of 57 cents per share, beating analyst estimates of 41 cents per share.

Fortinet said product revenue was down 4.4% year-over-year, while service revenue grew 19.8%. Billings were flat compared to the prior year’s quarter. Cash flow from operations came in at $342 million and free cash flow totaled $318.9 million during the quarter.

“In the second quarter, we successfully balanced growth and profitability as our non-GAAP operating margin increased 820 basis points year-over-year to a company record of 35.1%, while billings and revenue were at the high end of their respective guidance ranges,” said Ken Xie, founder, chairman and CEO of Fortinet.

See Also: CrowdStrike’s Resilience And Cyber Defense Capabilities Seen as Long-Term Growth Catalysts: Analyst

Looking Ahead: Fortinet expects third-quarter revenue to be in the range of $1.445 billion to $1.505 billion versus estimates of $1.403 billion. The company expects third-quarter adjusted earnings to be between 56 cents and 58 cents per share versus estimates of 41 cents per share.

Fortinet sees 2024 revenue in the range of $5.8 billion to $5.9 billion versus estimates of $5.794 billion. The company expects full-year adjusted earnings to be between $2.13 and $2.19 per share versus estimates of $1.76 per share.

“We are continuing to execute our strategy to invest in the fast-growing Unified SASE and Security Operations markets, while gaining market share in Secure Networking. We expect to emerge as a SASE leader, as we are the only vendor in the Gartner Magic Quadrant for Single-Vendor SASE that is also recognized in five different network security Magic Quadrant reports,” Xie said.

Management will discuss the company’s quarterly results on a conference call slated for 4:30 p.m. ET.

FTNT Price Action: Fortinet shares were up 12.95% after hours at $63.04 at the time of publication Tuesday, per Benzinga Pro.

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