Fortinet reports second quarter 2022 financial results

Fortinet has reported its financial results for the second quarter of 2022, showing product revenue of US$400.7 million, up 34% year over year.

Total revenue was US$1.03 billion, up 29% year over year, and deferred revenue was US$3.93 billion, up 35% year over year.

"We delivered strong revenue and billings growth in the second quarter driven by an over 50% year-over-year increase in the number of transactions larger than one million dollars," says Ken Xie, founder, chairman, and chief executive officer, Fortinet.

"Large enterprise companies continue to favour Fortinet's industry leading cost for performance advantage and integrated platform strategy," he says.

"Fortinet's market share gains are being driven by the convergence of networking and security and an accelerating focus on vendor consolidation with our core platform and platform extension solutions designed to secure our customers' entire infrastructure from the data centre to the cloud."

For the third quarter of 2022, Fortinet currently expects revenue in the range of US$1.105 billion to US$1.135 billion, and billings in the range of US$1.385 billion to US$1.415 billion.

The company is expecting non-GAAP gross margin in the range of 75% to 76%, and non-GAAP operating margin in the range of 25% to 26%.

Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of US$0.26 to US$0.28, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 810 million to 820 million.

For the fiscal year 2022, Fortinet currently expects:

Revenue in the range of US$4.350 billion to US$4.400 billion.  
Service revenue in the range of US$2.620 billion to US$2.670 billion.  
Billings in the range of US$5.560 billion to US$5.640 billion.  
Non-GAAP gross margin in the range of 75% to 76%.
Non-GAAP operating margin in the range of 25% to 26%.
Diluted non-GAAP net income per share attributable to Fortinet, Inc. in the range of US$1.01 to US$1.06, assuming a non-GAAP effective tax rate of 17%. This assumes a diluted share count of 810 million to 820 million.

Fortinet's guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortisation of acquired intangible assets and gain on intellectual property matters. The company has not reconciled guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of its control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.