Fortinet Inc (FTNT, Financial), a global leader in cybersecurity, released its financial results for the third quarter of 2023 on November 2, 2023. The company reported a 16% year-over-year increase in total revenue, reaching $1.33 billion. This growth was driven by a significant increase in service revenue, which rose by 28% year over year to $868.7 million.
Financial Highlights
Fortinet Inc's GAAP operating income for Q3 2023 was $303.2 million, a 14% increase from the same quarter in the previous year. The company's non-GAAP operating income also saw a 14% year-over-year increase, reaching $371.4 million. The GAAP operating margin was reported at 22.7%, while the non-GAAP operating margin stood at 27.8%.
The company's GAAP diluted net income per share attributable to Fortinet Inc saw a significant increase of 41% year over year, reaching $0.41. The non-GAAP diluted net income per share also increased by 24% year over year to $0.41. The company's cash flow from operations was reported at $551.2 million, with free cash flow standing at $481.1 million.
Company Performance and Future Outlook
Despite the Secure Networking market experiencing slower growth, Fortinet Inc has leveraged its scale, go-to-market capabilities, and engineering expertise to focus on the faster-growing SASE and Security Operations markets. The company's integrated FortiOS operating system, industry leadership in firewall and SD-WAN, and exceptional solutions in the SASE and Security Operations markets position it well to capitalize on these emerging growth opportunities.
For the fourth quarter of 2023, Fortinet Inc expects revenue in the range of $1.380 billion to $1.440 billion and billings in the range of $1.560 billion to $1.700 billion. The company also expects a non-GAAP gross margin in the range of 75.5% to 76.5% and a non-GAAP operating margin in the range of 27.5% to 28.5%.
For the fiscal year 2023, the company expects revenue in the range of $5.270 billion to $5.330 billion and service revenue in the range of $3.355 billion to $3.375 billion. The company also expects billings in the range of $6.095 billion to $6.235 billion, a non-GAAP gross margin in the range of 76.0% to 77.0%, and a non-GAAP operating margin in the range of 26.5% to 27.5%.
These financial results and future projections indicate a strong performance by Fortinet Inc in Q3 2023 and a positive outlook for the remainder of the fiscal year.
Explore the complete 8-K earnings release (here) from Fortinet Inc for further details.
