Fortinet, Inc. (NASDAQ:FTNT) Conference Call Summary Company Overview - **Company**: Fortinet, Inc. - **Industry**: Cybersecurity - **Event**: Morgan Stanley's Technology, Media & Telecom Conference - **Date**: March 5, 2023 Key Points Industry Dynamics - The cybersecurity market is undergoing significant changes, particularly in the convergence of networking and security [3][4] - By 2030, the network security market is projected to surpass the networking market, driven by new use cases and the need for security in OT/IoT environments [4][5][7] Market Growth and Projections - Fortinet anticipates network security growth rates of 10% to 20% annually over the next five to ten years, despite a current forecast of single-digit growth due to market distortions from previous years [8][9][51] - The company has seen substantial growth in product revenue, doubling over the past few years, but is currently experiencing a digestion phase in certain verticals [9][10] Strategic Initiatives - Fortinet is focusing on expanding its offerings beyond traditional network security to include SASE (Secure Access Service Edge) and SecOps [3][18] - The company has revamped its go-to-market strategy to better align with these newer areas, increasing the number of Points of Presence (PoPs) for SASE from 30 to over 150 [20][21] Competitive Positioning - Fortinet claims to be the only company developing its own ASIC technology for network security, which helps lower costs and improve performance [7][59] - The company has a significant installed base, with over 700,000 customers, which it plans to leverage for upselling SASE solutions [25][37] Financial Performance - Fortinet's pricing strategy allows it to offer competitive rates, with costs around 20% to 30% lower than competitors [59] - The company aims for a baseline operating margin of 25%, which it has consistently exceeded [61] Customer Engagement - Conversations with CIOs and CISOs have shown improved sentiment towards budgets for 2024 compared to the previous year, indicating a potential recovery in spending [12] - Fortinet has seen a strong interest in SASE solutions, with many customers inquiring about it during recent meetings [34] Future Outlook - The company expects to benefit from the enterprise refresh cycle, particularly as a significant portion of its business comes from large enterprises [16][17] - Fortinet is optimistic about the growth potential in OT/IoT security, which is expected to become a larger market than SD-WAN over time [54] Challenges and Considerations - The current market is fragmented, with many customers hesitant to rely on a single vendor for all security needs [46][48] - Fortinet acknowledges the need to train its sales force and partners to effectively sell SASE, as it is a relatively new offering for them [23][42] Conclusion - Fortinet is strategically positioned to capitalize on the growing cybersecurity market, with a focus on integrating networking and security solutions, expanding its SASE offerings, and leveraging its existing customer base for future growth [4][18][25]

SUNNYVALE, Calif., March 04, 2024 (GLOBE NEWSWIRE) -- Rob Rashotte, Vice President of Global Training and Global Field Enablement at Fortinet "Fortinet is committed to making cybersecurity education and training accessible to all to address the global talent shortage; public-private partnerships play a vital role in this effort. Our collaboration with the European Commission's Cybersecurity Skills Academy is aligned with our goal of providing cybersecurity training to 1 million people globally by 2026. We ...

Cybersecurity stocks had a rough week after Palo Alto Networks (NASDAQ:PANW) reported significant growth deceleration. Total billings are expected to range from 2% to 4% in the fiscal third quarter of 2024, and a sudden shift in strategy didn’t do the corporation any favors.Many cybersecurity stocks proceeded to lose ground after the earnings report came out. While the sector has experienced some pushback due to high valuations and decelerating revenue growth, some cybersecurity stocks will likely continue ...

Fortinet (FTNT) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this network security company have returned +2.3% over the past month versus the Zacks S&P 500 composite's +4.7% change. The Zacks Internet - Software industry, to which Fortinet belongs, has gained 11.1% over this period. Now the key question is: Where could the stock be headed in the near t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-34511 ______________________________________ FORTINET, INC. (Exact name of registrant as specified in its charter) ________________________ ...

Cybersecurity stocks are capturing the spotlight as high-profile hacking incidents escalate.Moreover, with the buzz around artificial intelligence (AI) intensifying, investor interest in cybersecurity solutions continues to surge. Furthermore, anticipated federal government spending boosts in 2024 should propel the cybersecurity sector even further. In an era where digital threats are becoming increasingly sophisticated, cybersecurity companies play a critical role in safeguarding both business owners and c ...

Investing in the stock market can help individuals achieve their long-term financial goals sooner. While funds and blue-chip stocks can generate stable returns, some investors pursue growth stocks for greater potential.When growth stocks get rolling, they can comfortably outperform the market and generate value for shareholders. Many growth stocks have frothy valuations that can get smoothed out over time if financial growth remains strong. Many high-profile growth stocks captivate investors, but a few hidd ...

One of the leading cybersecurity pure-plays, Fortinet (FTNT 2.13%), just put some investor worry to rest. During the second half of 2023, Fortinet's firewall and security hardware business hit a wall after setting the world ablaze the last few years. Ample concern cropped up that this down cycle could be different from other cybersecurity hardware downturns of the past. Shares of Fortinet closed out last year with market-lagging returns (as measured against the Nasdaq Composite index). But Fortinet is off t ...

Fortinet Inc (NASDAQ:FTNT) stock is lifting the cybersecurity sector today, after the company's stronger-than-expected fourth-quarter results, announced after yesterday's close. FTNT has pared gains since its earlier surge to $73.91, but was still up 2.2% at $68.97 at last check.No fewer than 21 analysts lifted their price targets on the equity after the report, bringing the 12-month consensus price target to $74.42. Over the last month, Fortinet stock saw two downgrades despite its recent uptrend, but anal ...

Fortinet Inc. (FTNT) reported strong fourth-quarter 2023 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Moreover, both the top and bottom lines registered a steady year-over-year improvement.Fortinet reported fourth-quarter 2023 non-GAAP earnings per share (EPS) of 51 cents, which topped the Zacks Consensus Estimate by 18.6%. The bottom line improved 15.9% from the year-ago quarter’s earnings of 24 cents per share.Total revenues of $1.415 billion beat the consensus mark ...