Core Insights - Fortinet's transition to a subscription-driven business model is driving significant growth in recurring service revenues, with service revenues increasing by 14% year-over-year to $1.08 billion in Q1 2025, representing 70% of total revenues [1][11] - The Unified SASE strategy has reported recurring revenues of $1.15 billion, up 25.7% year-over-year, while Security Operations' recurring revenues surged 30.3% year-over-year to $434.5 million [1][11] - Fortinet is aggressively investing in its SASE and SSE offerings to expand subscription-based revenue streams, with notable traction in large-scale enterprise deals [3] Revenue Growth - Multi-year contracts for services such as FortiGuard, FortiCare, FortiCloud, Unified SASE, and Security Operations are driving revenue growth [2] - The company expects service revenues to reach approximately $4.6 billion in 2025, indicating a year-over-year growth of 13.4% [5] Market Position and Competition - Fortinet faces stiff competition in the enterprise security market from companies like Palo Alto Networks and Zscaler [6] - Palo Alto Networks is expected to deliver recurring revenues between $5.52 billion and $5.57 billion for fiscal 2025, while Zscaler has a customer base of over 8,650 organizations [7][8] Pricing and Future Outlook - Fortinet's scalable, per-user pricing model with multi-year discounts is expected to enhance future recurring revenues [4] - Unified SASE and Security Operations are projected to experience a compound annual growth rate (CAGR) of 24% through 2026 [4][11] Stock Performance and Valuation - Fortinet's shares have risen 13.9% year-to-date, underperforming the Zacks Security industry's growth of 27.1% [9] - The stock is currently trading at a Price/Book ratio of 41.98X, compared to the industry's 25.76X, indicating a lower valuation score [14]

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 | $ ...

SUNNYVALE, Calif., April 23, 2025 (GLOBE NEWSWIRE) -- News Summary Fortinet®, the global cybersecurity leader driving the convergence of networking and security, today announced that FortiGuard AI-Powered Security Services and FortiCare Services have received GovRAMP, previously known as StateRAMP, authorization at a moderate impact level from the Government Risk and Authorization Management Program (GovRAMP®). "Fortinet's GovRAMP authorization underscores our commitment to delivering trusted security so ...