Cybersecurity firm Fortinet, Inc FTNT released its upbeat fourth-quarter print on Thursday.Fortinet reported fourth-quarter revenue of $1.66 billion, up 17%, topping the consensus estimate of $1.59 billion. The cybersecurity company reported fourth-quarter adjusted earnings of 74 cents per share, above analyst estimates of 61 cents per share.Also Read: PayPal Transaction Margins and Payment Volume Drive Growth, Eyes 2025 Growth With Strong TMD Ahead of Investor Day: AnalystFortinet expects first-quarter rev ...

As of Feb. 7, 2025, two stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, acco ...

FTNT and NET are some of the best stocks on Wall Street todayTwo cybersecurity firms are in focus this morning after their respective earnings reports. Fortinet Inc (NASDAQ:FTNT) and Cloudflare Inc (NYSE:NET) are both some of the best stocks on Wall Street today, melting up even as the broader market struggles for direction.FTNT is 5% higher in premarket trading, after the February outperformer reported a top-line beat for the fourth quarter. In response, no fewer than 11 brokerages hiked their price target ...

Financial Data and Key Metrics Changes - Fortinet reported total revenue growth of 17% in Q4 2024, reaching $1.66 billion, with product revenue increasing by 18% to $574 million, marking the highest growth rate in six quarters [10][26] - The operating margin reached a record 39.2%, reflecting a 720 basis point increase, driven by strong gross margins and favorable foreign exchange impacts [29][30] - Free cash flow was $380 million, representing a margin of 23%, while adjusted free cash flow was $549 million, with a margin of 28% [31] Business Line Data and Key Metrics Changes - Unified SaaS and secure operations saw significant growth, with Unified SaaS billings growing 13% and Security Service Edge (SSE) experiencing a remarkable 96% ARR growth [10][22] - The service revenue grew 17% to $1.09 billion, accounting for 65% of total revenue, driven by a 130% increase in SaaS solutions [27][28] - The company added a record 6,900 new logos, indicating strong alignment with channel partners [22] Market Data and Key Metrics Changes - EMEA was the best-performing geography, with growth exceeding 25% from international emerging markets [24] - Among the top five verticals, government and service providers both grew over 20%, while financial services faced challenges due to difficult year-over-year comparisons [25] Company Strategy and Development Direction - Fortinet aims to lead the convergence of networking and security, with a focus on a single operating system for all secure networking functions [15][16] - The company is expanding its enterprise-grade security solutions to remote workers and consumers through its acquisition of Linksys [18][115] - Fortinet's strategy includes leveraging AI-driven security and unified management to enhance user experience and operational efficiency [14][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential from the upcoming refresh cycle, particularly in the second half of 2025, as many devices approach end-of-life [44][46] - The company anticipates that the momentum in secure networking will continue to build, with significant upsell opportunities in the coming years [46][49] - Management acknowledged potential challenges from tariffs and geopolitical factors affecting demand, particularly in Latin America and Canada [100][102] Other Important Information - The company announced the retirement of CFO Keith Jensen, with Christiana Ohlgaard set to take over the role [53][55] - Fortinet's acquisitions of Lacework and Perception Point are expected to enhance billings and revenue growth while impacting operating margins [30][47] Q&A Session Summary Question: Involvement with hyperscalers like Oracle - Management highlighted the significant growth opportunities in securing data centers for hyperscalers, leveraging their secure ASIC technology [62] Question: Weakness in billings guidance - Management explained that while Q4 billings were strong, caution in guidance for Q1 was due to geopolitical concerns and tariff impacts [74][75] Question: Refresh opportunity implications for subscription revenue - Management indicated that growing subscription revenue will depend on upselling and selling more services alongside existing hardware [80][81] Question: US performance sustainability - Management expressed optimism about sustained growth in the US, driven by increased sales capacity and collaboration with channel partners [108][109] Question: Linksys relationship and expectations - Management discussed the strategic importance of the Linksys acquisition in expanding consumer and SMB market presence [114][115] Question: Inventory levels in anticipation of demand - Management indicated a target for healthy inventory turns and a gradual upgrade cycle expected in the second half of the year [120][124] Question: Contribution from upgrade cycle in guidance - Management noted that larger enterprises are leading the refresh cycle, with expectations for gradual upgrades rather than spikes [162][164]

Fortinet (FTNT) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.60 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 23.33%. A quarter ago, it was expected that this network security company would post earnings of $0.51 per share when it actually produced earnings of $0.63, delivering a surprise of 23.53%.Over the last four quarters, th ...

Financial Data and Key Metrics Changes - The company reported a total revenue growth of 17% for Q4 2024, reaching $1.66 billion, with product revenue increasing by 18% to $574 million, marking the highest growth rate in six quarters [11][15]. - Operating margin reached a record 39.2%, reflecting strong gross margins and favorable foreign exchange impacts [17]. - Free cash flow was $380 million, with a free cash flow margin of 23%, up 11 points year-over-year [18]. Business Line Data and Key Metrics Changes - Unified SASE billing grew by 85%, contributing to a 13% growth in total unified SaaS billing, which accounted for 23% of the business [7][12]. - Security operations and unified SASE ARR grew by 32% and 28%, respectively, with combined revenue exceeding $1.5 billion [12][19]. - The company added a record 6,900 new logos in Q4, driven by strong channel partner alignment [11]. Market Data and Key Metrics Changes - EMEA was the best-performing geography with over 25% growth, while government and service provider verticals grew over 20% [15]. - The SMB segment was the top-performing customer segment, achieving over 30% growth [14]. Company Strategy and Development Direction - Fortinet continues to focus on a single vendor SASE strategy, integrating multiple security functions into a single operating system, FortiOS, which enhances user experience and security [7][9]. - The company aims to leverage its unique ASIC technology to drive growth in secure networking and AI-driven security solutions [9][23]. - Fortinet's acquisition of Perception Point aims to enhance its cybersecurity offerings by extending protection beyond email to the entire modern workspace [8]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential within the secure networking space, anticipating that it will surpass traditional networking by 2026 [9]. - The company acknowledged potential challenges from tariffs and geopolitical factors affecting demand, particularly in Latin America and Canada [42][66]. - Management expects continued momentum in the second half of 2025, particularly related to the upcoming service dates for existing customers [25]. Other Important Information - The company announced the retirement of CFO Keith Jensen, with Christiana Ohlgart set to take over [28][30]. - Fortinet was recognized as the seventh most trusted company in its market by Forbes, highlighting its commitment to transparency and customer trust [10]. Q&A Session Summary Question: Involvement with hyperscalers like Oracle - Fortinet is involved in securing data centers for hyperscalers, leveraging its secure ASIC processor for enhanced computing power [34]. Question: Weak guidance for billings - The company experienced strong performance in Q4 but anticipates a more cautious outlook for Q1 due to external factors like tariffs and government disruptions [42]. Question: Refresh opportunity implications for subscription revenue - Subscription revenue growth is tied to upselling additional services alongside hardware renewals, with plans in place to incentivize sales [48]. Question: Billings guidance assumptions - The guidance includes significant upsell components and expectations for gradual growth rather than spikes [56]. Question: Impact of tariffs on demand and supply chain - The company is monitoring the dynamic situation regarding tariffs, particularly in Latin America and Canada, and acknowledges potential impacts on demand [62][66]. Question: U.S. performance sustainability - Fortinet has enhanced its U.S. enterprise sales and sees significant growth potential in the region due to increased resources and channel partnerships [72]. Question: Linksys relationship and strategic positioning - The acquisition of Linksys positions Fortinet to enter the consumer home-based network security market, leveraging its technology and existing user base [79]. Question: Inventory levels in anticipation of demand - The company targets healthy inventory turns and anticipates a gradual upgrade path for product revenue [84][86].

Fortinet delivered robust revenue and earnings growth in its fourth quarter, surpassing analyst expectations.Cybersecurity solutions provider Fortinet (FTNT -0.33%) reported fourth-quarter and full-year 2024 earnings on Thursday, Feb. 6, that showed significant growth across key financial metrics. The company delivered adjusted earnings per share (EPS) of $0.74, surpassing analyst expectations and marking a 45% year-over-year increase. Revenue for the quarter reached $1.66 billion, up 17.3% from the previou ...

Financial Performance - Total revenue for Q4 2024 was $1.66 billion, an increase of 17% year-over-year[6] - Product revenue for Q4 2024 was $574 million, up 18% year-over-year[6] - Billings for Q4 2024 reached $2.00 billion, a 7% increase year-over-year[6] - Total revenue for the year ended December 31, 2024, was $5,955.8 million, a 12.3% increase from $5,304.8 million in 2023[29] - Net income for the year ended December 31, 2024, reached $1,745.2 million, up 52.2% from $1,147.8 million in 2023[29] - Operating income for the year ended December 31, 2024, was $1,803.4 million, representing a 45.3% increase compared to $1,241.1 million in 2023[29] - Non-GAAP net income for the year ended December 31, 2024, was $1,832.9 million, a 42.7% increase from $1,285.6 million in 2023[33] - Total revenue for Q4 2024 reached $1,660.1 million, a 17.3% increase from $1,415.1 million in Q4 2023[37] Cash Flow and Liquidity - Cash flow from operations for 2024 was $2.26 billion, compared to $1.94 billion in 2023[10] - Net cash provided by operating activities for Q4 2024 was $477.6 million, up from $191.7 million in Q4 2023, representing a 149% increase[36] - Free cash flow for the year ended December 31, 2024, was $1,879.2 million, compared to $1,731.4 million for the previous year, reflecting an increase of 8.5%[36] - Total cash and cash equivalents at the end of the year were $2,875.9 million, up from $1,397.9 million at the beginning of the year[32] Assets and Equity - Total assets increased to $9,763.1 million in December 2024, up from $7,258.9 million in December 2023, representing a growth of approximately 34.5%[27] - Cash and cash equivalents rose significantly to $2,875.9 million, compared to $1,397.9 million in the previous year, marking an increase of about 105.5%[27] - The company reported a total stockholders' equity of $1,493.8 million, a significant recovery from an accumulated deficit of $(463.4) million in the previous year[27] Deferred Revenue and Billings - Deferred revenue increased to $3,276.2 million, up from $2,848.7 million, reflecting a growth of approximately 15%[27] - The company emphasizes the importance of billings as a metric for future revenue health, with billings defined as revenue recognized plus changes in deferred revenue[22] - Total billings for the year ended December 31, 2024, were $6,532.5 million, compared to $6,399.5 million in 2023, indicating a growth of 2.1%[37] Profitability Metrics - GAAP net income for Q4 2024 was $526.2 million, compared to $310.9 million in Q4 2023[9] - Non-GAAP net income for Q4 2024 was $571.5 million, up from $392.0 million in Q4 2023[9] - The company reported a GAAP operating margin of 30.3% for the year ended December 31, 2024, up from 23.4% in 2023[33] - The company reported a non-GAAP operating margin of 35.0% for the year ended December 31, 2024, compared to 28.4% in 2023[33] Research and Development - Research and development expenses for the year ended December 31, 2024, were $716.8 million, an increase from $613.8 million in 2023[29] Future Projections - For Q1 2025, revenue is expected to be in the range of $1.500 billion to $1.560 billion[10] - For the fiscal year 2025, revenue is projected to be between $6.650 billion and $6.850 billion[15] Inventory Management - Inventory decreased to $315.5 million from $484.8 million, indicating improved inventory management[27] Geopolitical Risks - The ongoing geopolitical tensions, including the war in Ukraine, continue to pose risks to market demand and operational stability[19]

Financial Performance Highlights - Total revenue for Q4 2024 was $1.66 billion, representing a 17% increase year-over-year from $1.42 billion in Q4 2023 [6][7] - Product revenue for Q4 2024 was $574 million, up 18% year-over-year from $488.1 million in Q4 2023 [6][7] - Service revenue for Q4 2024 was $1.09 billion, an increase of 17.2% compared to $927 million in Q4 2023 [6][7] - Total billings for Q4 2024 reached $2.00 billion, a 7% increase from $1.86 billion in Q4 2023 [6][7] - For the full year 2024, total revenue was $5.96 billion, up 12% from $5.30 billion in 2023 [6][8] Profitability Metrics - GAAP operating margin for Q4 2024 was 34.6%, compared to 27.2% in Q4 2023 [7][9] - Non-GAAP operating margin for Q4 2024 was 39.2%, up from 32.0% in Q4 2023 [9][10] - GAAP net income for Q4 2024 was $526.2 million, compared to $310.9 million in Q4 2023 [9][10] - Non-GAAP net income for Q4 2024 was $571.5 million, up from $392 million in Q4 2023 [9][10] Growth in Key Areas - Unified SASE Annual Recurring Revenue (ARR) increased by 28% year-over-year to $1.12 billion [6][7] - Security Operations ARR grew by 32% year-over-year to $422.4 million [6][7] - The company achieved a record non-GAAP operating margin of 39% in Q4 2024, reflecting a strategic focus on high-growth markets [4][6] Cash Flow and Financial Health - Cash flow from operations for 2024 was $2.26 billion, compared to $1.94 billion in 2023 [6][16] - Free cash flow for 2024 was $1.88 billion, up from $1.73 billion in 2023 [6][16] - Remaining performance obligations as of December 31, 2024, were $6.42 billion, a 12% increase from $5.75 billion in 2023 [6][8] Market Position and Recognition - Fortinet was ranked 7 on the Forbes Most Trusted Companies in America 2025 list, being the only cybersecurity company in the top 50 [6][8] - The company continues to strengthen its position in the Secure Networking market while investing in Unified SASE and Security Operations [4][6]

Fortinet Inc FTNT will be reporting its fourth-quarter earnings on Thursday. Wall Street expects 61 cents in EPS and $1.59 billion in revenues as the company reports after market hours.The stock is up 54.65% over the past year, 10.14% YTD.Let’s look at what the charts indicate for Fortinet stock and how the stock currently maps against Wall Street estimates.Read Also: $100 Invested In Fortinet 15 Years Ago Would Be Worth This Much TodayFortinet Stock Strongly Bullish Ahead Of Q4 EarningsFortinet stock is di ...