SPY376.70-4.72 -1.24%
DIA309.58-3.41 -1.09%
IXIC12,723.47-274.28 -2.11%

Press Release: Fortinet Reports Fourth Quarter and Full Year 2020 Financial Results

· 02/04/2021 16:12
-- Revenue in the range of $3.025 billion to $3.075 billion -- Service revenue in the range of $2.015 billion to $2.045 billion -- Billings in the range of $3.560 billion to $3.640 billion -- Non-GAAP gross margin in the range of 78.0% to 80.0% -- Non-GAAP operating margin in the range of 25.0% to 27.0% -- Diluted non-GAAP net income per share in the range of $3.60 to $3.75, assuming a non-GAAP effective tax rate of 21%. This assumes a diluted share count of 170 million to 172 million.-- Revenue in the range of $670 million to $685 million -- Billings in the range of $765 million to $780 million -- Non-GAAP gross margin in the range of 78.5% to 79.5% -- Non-GAAP operating margin in the range of 22.5% to 23.5% -- Diluted non-GAAP net income per share in the range of $0.70 to $0.75, assuming a non-GAAP effective tax rate of 21%. This assumes a diluted share count of 167 million to 169 million.-- Revenue: Total revenue was $2.59 billion for 2020, an increase of 19.9% compared to $2.16 billion in 2019. -- Product Revenue: Product revenue was $916.4 million for 2020, an increase of 16.2% compared to $788.5 million in 2019. -- Service Revenue: Service revenue was $1.68 billion for 2020, an increase of 22.1% compared to $1.37 billion in 2019. -- Billings1: Total billings were $3.09 billion for 2020, an increase of 18.7% compared to $2.60 billion in 2019. -- Deferred Revenue: Total deferred revenue was $2.61 billion as of December 31, 2020, an increase of 23.5% compared to $2.11 billion as of December 31, 2019. -- GAAP Operating Income and Margin: GAAP operating income was $531.8 million for 2020, representing a GAAP operating margin of 20.5%. GAAP operating income was $351.0 million for 2019, representing a GAAP operating margin of 16.2%. -- Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $698.0 million for 2020, representing a non-GAAP operating margin of 26.9%. Non-GAAP operating income was $536.0 million for 2019, representing a non-GAAP operating margin of 24.8%. -- GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $488.5 million for 2020, compared to GAAP net income of $331.7 million for 2019. GAAP diluted net income per share was $2.91 for 2020, based on 167.7 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $1.90 for 2019, based on 175.0 million diluted weighted-average shares outstanding. -- Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $562.6 million for 2020, compared to non-GAAP net income of $436.7 million for 2019. Non-GAAP diluted net income per share was $3.35 for 2020, based on 167.7 million diluted weighted-average shares outstanding, compared to $2.50 for 2019, based on 175.0 million diluted weighted-average shares outstanding. -- Cash Flow: In 2020, cash flow from operations was $1.08 billion compared to $808.0 million in 2019. -- Free Cash Flow1: Free cash flow was $907.8 million during 2020, compared to $715.8 million in 2019.-- Revenue: Total revenue was $748.0 million for the fourth quarter of 2020, an increase of 21.0% compared to $618.1 million for the same quarter of 2019. -- Product Revenue: Product revenue was $288.4 million for the fourth quarter of 2020, an increase of 20.8% compared to $238.8 million for the same quarter of 2019. -- Service Revenue: Service revenue was $459.6 million for the fourth quarter of 2020, an increase of 21.2% compared to $379.3 million for the same quarter of 2019. -- Billings1: Total billings were $960.9 million for the fourth quarter of 2020, an increase of 19.8% compared to $802.3 million for the same quarter of 2019. -- GAAP Operating Income and Margin: GAAP operating income was $169.4 million for the fourth quarter of 2020, representing a GAAP operating margin of 22.6%. GAAP operating income was $122.1 million for the same quarter of 2019, representing a GAAP operating margin of 19.8%. -- Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $219.9 million for the fourth quarter of 2020, representing a non-GAAP operating margin of 29.4%. Non-GAAP operating income was $168.6 million for the fourth quarter of 2019, representing a non-GAAP operating margin of 27.3%. -- GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $146.7 million for the fourth quarter of 2020, compared to GAAP net income of $118.2 million for the same quarter of 2019. GAAP diluted net income per share was $0.89 for the fourth quarter of 2020, based on 165.5 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.67 for the same quarter of 2019, based on 175.2 million diluted weighted-average shares outstanding. -- Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $175.5 million for the fourth quarter of 2020, compared to non-GAAP net income of $135.1 million for the same quarter of 2019. Non-GAAP diluted net income per share was $1.06 for the fourth quarter of 2020, based on 165.5 million diluted weighted-average shares outstanding, compared to $0.77 for the same quarter of 2019, based on 175.2 million diluted weighted-average shares outstanding. -- Cash Flow: In the fourth quarter of 2020, cash flow from operations was $296.5 million compared to $190.4 million in the same quarter of 2019. -- Free Cash Flow1: Free cash flow was $264.2 million during the fourth quarter of 2020, compared to $143.2 million for the same quarter of 2019.-- Total revenue of $2.59 billion, up 20% year over year -- Product revenue of $916.4 million, up 16% year over year -- Service revenue of $1.68 billion, up 22% year over year -- Billings of $3.09 billion, up 19% year over year1 -- Deferred revenue of $2.61 billion, up 24% year over year -- GAAP operating margin of 20.5%, up 430 basis points year over year -- Non-GAAP operating margin of 26.9%, up 210 basis points year over year1 -- GAAP diluted net income per share of $2.91 -- Non-GAAP diluted net income per share of $3.351 -- Cash flow from operations of $1.08 billion -- Free cash flow of $907.8 million1-- Total revenue of $748.0 million, up 21% year over year -- Product revenue of $288.4 million, up 21% year over year -- Service revenue of $459.6 million, up 21% year over year -- Billings of $960.9 million, up 20% year over year1 -- GAAP operating margin of 22.6%, up 280 basis points year over year -- Non-GAAP operating margin of 29.4%, up 210 basis points year over year1 -- GAAP diluted net income per share of $0.89 -- Non-GAAP diluted net income per share of $1.061 -- Cash flow from operations of $296.5 million -- Free cash flow of $264.2 million1

Fortinet Reports Fourth Quarter and Full Year 2020 Financial Results

Fourth Quarter 2020 Highlights

Full Year 2020 Highlights

SUNNYVALE, Calif., Feb. 04, 2021 (GLOBE NEWSWIRE) -- Fortinet(R) (Nasdaq: FTNT), a global leader in broad, integrated and automated cybersecurity solutions, today announced financial results for the fourth quarter and full year ended December 31, 2020.

"We reported our third consecutive year of product revenue growth of approximately 16%, services revenue growth of approximately 22% and total organic revenue growth of approximately 20%. These results were driven by a strong worldwide sales operation, an innovative culture that results in a diversified product set and the market's growing demand for cybersecurity products both on-premise and in the cloud. Our solid 2020 revenue performance led to an all-time company high non-GAAP operating margin of 26.9%," said Ken Xie, Founder, Chairman, and Chief Executive Officer. "Given the many growth opportunities that lie ahead for us, we plan to shift our focus more to growth for at least the next several quarters."

Financial Highlights for the Fourth Quarter of 2020(2)

Financial Highlights for the Full Year 2020(2)

Guidance

For the first quarter of 2021, Fortinet currently expects:

For the fiscal year 2021, Fortinet currently expects:

These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets and gain on intellectual property matter. We have not reconciled our 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 our 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.

(1) A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

(2) Fortinet identified an immaterial error related to the commencement of revenue recognition for certain FortiCare support service contracts, which resulted in an immaterial correction to revenue for prior year reported amounts for the six months ended June 30, 2020. All financial information contained herein has been revised to reflect the correction of this error.

Conference Call Details

(MORE TO FOLLOW) Dow Jones Newswires

February 04, 2021 16:12 ET (21:12 GMT)