Fortinet(FTNT) - 2024 Q4 - Annual Results

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]