Company Overview - Fortinet is a global leader in cybersecurity, focusing on the convergence of networking and security [3] - The company offers an extensive portfolio of over 50 enterprise-grade cybersecurity products [3] - Fortinet has a customer base of well over half a million, making its solutions among the most deployed in the industry [3] Upcoming Financial Results - Fortinet will hold a conference call to discuss its second quarter 2025 financial results on August 6, 2025, at 1:30 p.m. Pacific Time [1] - The conference call will be available in listen-only mode on the company's investor relations website [2] - Prepared remarks, supplemental slides, and a replay of the call will be accessible on the Quarterly Earnings page of Fortinet's website [2] Commitment to Cybersecurity - Fortinet is dedicated to enhancing global cyber resilience through collaboration with public and private sector organizations [3] - The Fortinet Training Institute provides extensive cybersecurity training and career opportunities [3] - FortiGuard Labs utilizes advanced machine learning and AI technologies to deliver top-rated protection and actionable threat intelligence [3]

Core Insights - Fortinet has been recognized as the Overall Leader in the IT/OT Network Protection Platform Navigator 2025 report by Westlands Advisory, achieving top rankings in both strategic direction and capability for IT/OT security [1][2] Company Overview - Fortinet is a global leader in cybersecurity, focusing on the convergence of networking and security, with over 20 years of experience in protecting operational technology environments [2][7] - The company offers a comprehensive OT security platform that integrates advanced threat detection and protection capabilities, enhancing cyber resiliency and production reliability [3][5] Product and Technology Highlights - The Fortinet OT Security Platform provides end-to-end network segmentation, asset visibility, and advanced threat protection, all managed through a unified platform [3][4] - The platform includes over 20 products across three solution pillars: Secure Networking, Unified SASE, and Security Operations, delivering high-performance security solutions across IT and OT infrastructures [4][5] - Fortinet's custom-built ASIC technology in FortiGate appliances ensures high network security performance and reliability, essential for 24/7 operational technology environments [5] Market Position and Recognition - Fortinet's OT security innovations have been recognized with multiple industry awards, including the 2024 Red Dot Product Design Award and the 2025 Gold Product of the Year Award for FortiGate Rugged 70G-5G-DUAL [4][5] - The company has established significant market share and growing alliances in the OT cybersecurity space, reflecting deep trust from customers and partners [2][4]

Core Insights - Fortinet's FortiGate platform is central to its secure networking strategy, driving hardware adoption and facilitating expansion into other solutions [1][10] - The launch of the FortiGate 700G series enhances performance and energy efficiency, appealing to mid-sized businesses and distributed enterprises [3][10] - Fortinet's product revenues grew 12% year-over-year in Q1 2025, with FortiGate hardware being the primary growth driver [4] Product and Market Performance - FortiGate firewalls are often the first product for customers, leading to increased integration of Fortinet's other offerings [2][10] - In Q1 2025, FortiGate hardware outpaced overall product growth, expanding in the mid-teens [4] - The company estimates product revenues for 2025 to reach $2.14 billion, indicating a 12.3% year-over-year growth [4] Competitive Landscape - Fortinet faces stiff competition from Palo Alto Networks and Check Point Software, both of which are experiencing strong adoption of their firewall capabilities [5] - Palo Alto Networks reported a 20% year-over-year growth in Software Firewall ARR, driven by public cloud deployments [6] - Check Point Software saw a 14% year-over-year rise in product and license revenues, with expectations of continued momentum through 2026 [7] Stock Performance and Valuation - Fortinet's shares have risen 11.1% year-to-date, underperforming the Zacks Security industry's growth of 23.4% [8] - The stock is currently trading at a Price/Book ratio of 40.17X, compared to the industry's 24.88X, indicating a lower valuation score [12] - The Zacks Consensus Estimate for Q2 2025 earnings is 59 cents per share, reflecting a 3.51% year-over-year growth [15]

Core Insights - Fortinet has been recognized as a Leader in the 2025 Gartner Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure for the second consecutive year, highlighting its strong position in the cybersecurity market [1][2]. Company Overview - Fortinet's secure LAN edge portfolio includes secure networking solutions like FortiSwitch and FortiAP, fully integrated with the Fortinet Security Fabric and powered by FortiOS, which enhances both networking and security [2][4]. - The company emphasizes that its networking solutions are designed with built-in AI-powered security and AI-assisted network operations, differentiating it from traditional solutions that add security later [3][8]. Customer Recognition - Fortinet has been recognized as a Customers' Choice in the 2024 Gartner Peer Insights Voice of the Customer for Enterprise Wired and Wireless LAN Infrastructure for the seventh consecutive time, indicating strong customer satisfaction [5]. Product Benefits - The Fortinet Secure LAN Edge portfolio addresses evolving customer needs by providing pervasive built-in security, reducing cyber risk, and simplifying operations through a unified platform [8]. - The solutions offer enterprise-grade flexibility without trade-offs, minimizing misconfigurations and easing daily operations while delivering AI-driven insights [8].

Core Insights - Fortinet is enhancing its enterprise cybersecurity position through a unified Secure Access Service Edge (SASE) strategy, integrating next-generation firewall, SD-WAN, secure web gateway, and Data Loss Prevention (DLP) into a single operating system, FortiOS [1] - The company is experiencing strong momentum, with unified SASE billings growing 18% year over year, representing 25% of total billings [3] - Fortinet's share price has gained 9.8% year-to-date, underperforming the Zacks Security industry's growth of 23.8% [9] Company Developments - Fortinet's SASE journey typically begins with FortiGate firewalls, expanding to SD-WAN and FortiSASE, with 73% of large enterprises expected to adopt SD-WAN by Q1 2025, and FortiSASE penetration rising to 11% [2] - The company is strengthening its SASE architecture with cloud-native solutions to secure hybrid and multi-cloud environments, including updates to FortiCNAPP and new services like FortiAppSec Cloud [4] - Enhancements to FortiMail and FortiDLP are expanding protection to browsers and collaboration apps, which are crucial for SASE [5] Competitive Landscape - The cybersecurity market is highly competitive, with key rivals including Palo Alto Networks, Zscaler, and CrowdStrike [6] - Competitors are driving growth through strategic partnerships and acquisitions, highlighting the intense competition Fortinet faces [7][8] Financial Performance - Fortinet's valuation is a concern, with a Price/Book ratio of approximately 40.40, significantly above the industry's 24.95 [15] - For Q2 2025, Fortinet expects revenues between $1.59 billion and $1.65 billion, indicating a growth of 13% at the midpoint, with non-GAAP earnings per share projected between 58-60 cents [18] - The Zacks Consensus Estimate for Q2 2025 revenues is $1.62 billion, suggesting a year-over-year growth of 12.94% [19] Investor Sentiment - Despite strong SASE growth and new cloud-based offerings, tough competition and cautious guidance suggest limited short-term gains for Fortinet's stock [22] - The company has consistently beaten earnings estimates, with an average surprise of 23.83% over the trailing four quarters [21]

Q4 2014 Financial Results January 28, 2015 © Copyright Fortinet Inc. All rights reserved. Safe Harbor Statement | | | | Y/Y % | | --- | --- | --- | --- | | | Q4 14 | Q4 13 | Change | | (1) Billings | $283M | $210M | 35% | | Revenue | $224M | $177M | 26% | | Gross Margin (%) (2) | 72% | 71% | +1 pt | | Operating Income (2) | $37M | $38M | -4% | | Operating Margin (%) (2) | 16% | 22% | -6% pts | | Net Income(2)(3) | $24M | $26M | -8% | | Earnings per Share(2)(3) | $0.14 | $0.16 | -13% | | Deferred Revenue | $ ...

Q4 2015 Financial Results January 28, 2016 © Copyright Fortinet Inc. All rights reserved. Safe Harbor Statement Fortinet Cybersecurity Platform Seamless Security Across the Entire Attack Surface Secure Access Network Security Application Security FortiGuard Threat Intelligence & Services FortiGate Enterprise Firewall Client Security Cloud Security USERS NETWORK DATA CENTER Information, statements and projections contained in these presentation slides and related conference calls concerning Fortinet's busine ...

Q4 2016 Financial Results February 2, 2017 © Copyright Fortinet Inc. All rights reserved. Safe Harbor Statement Information, statements and projections contained in these presentation slides and related conference calls concerning Fortinet's business outlook and momentum, the Q1 and 2017 guidance, and future prospects and expectations are forward-looking statements that involve a number of uncertainties and risks. Actual results could differ materially from those projected in the forward-looking statements ...

Q4 2017 Financial Performance - Billings reached $534 million, a 15% year-over-year increase compared to $463 million in Q4 2016[4] - Revenue totaled $417 million, up 15% from $363 million in Q4 2016[4] - Free cash flow surged to $144 million, a 71% increase from $84 million in Q4 2016[4] - Deferred revenue grew by 29% year-over-year, reaching $1336 billion compared to $1035 billion in Q4 2016[4] Full Year 2017 Financial Performance - Billings for 2017 amounted to $1796 billion, a 19% increase from $1515 billion in 2016[24] - Revenue for 2017 reached $1495 billion, a 17% increase from $1275 billion in 2016[24] - Free cash flow for 2017 was $459 million, a 65% increase from $279 million in 2016[24] - Net income for 2017 was $185 million, a 43% increase from $130 million in 2016[24] Q1 and Full Year 2018 Guidance - The company projects Q1 2018 billings to be between $449 million and $457 million, representing a 12% year-over-year growth[28] - The company anticipates full year 2018 billings to be between $2030 billion and $2050 billion, representing a 14% year-over-year growth[28] - The company expects full year 2018 revenue to be between $1695 billion and $1715 billion, representing a 14% year-over-year growth[28]

Core Insights - Fortinet has announced significant updates to Lacework FortiCNAPP, enhancing application and workload security across hybrid and multi-cloud environments [1][2] - The company has expanded its cloud services available in AWS Marketplace, facilitating easier access and management for customers [4][8] - Fortinet aims to simplify cloud security by consolidating various security solutions into a unified platform, enhancing operational efficiency and cost-effectiveness [9][10] Product Enhancements - Lacework FortiCNAPP now offers stronger protection for cloud-native applications throughout their life cycle, providing faster detection and deeper insights [2] - New service bundles introduced include Dynamic Application Security Testing (DAST), CDN, and SoC-as-a-Service, along with AI-powered zero-day threat detection [3] - Services available in AWS Marketplace include Real-Time CloudTrail Alerting, Explorer (Security Graph), Agentless Windows Scanning, and Fleet Management [5] Expanded Offerings in AWS Marketplace - FortiAppSec Cloud provides unified web application and API protection, including web application firewall (WAF) and DDoS mitigation [6] - FortiMail Workspace Security offers end-to-end SaaS protection across various platforms, with a managed incident response service [6] - FortiNDR Cloud and FortiSIEM provide AI-driven threat detection and scalable log management, respectively [6] Strategic Initiatives - Fortinet has achieved AWS Security Incident Response Specialization, indicating its capability in providing streamlined incident response solutions [7] - The company emphasizes the integration of its security solutions with AWS-native tools and FortiGuard threat intelligence to enhance customer support [8] - Fortinet FortiFlex offers a flexible, usage-based licensing model to optimize cloud security investments [11]