NASDAQ$FTNT

Fortinet Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Financial results for the fourth quarter and full year ended December 31, 2019 were announced.

Fortinet reported Q4 2019 total revenue of $614.4 million, a 21% increase year-over-year. Product revenue was $238.8 million, up 19% year-over-year. GAAP diluted net income per share was $0.66, while non-GAAP diluted net income per share was $0.76.

  • Total revenue was $614.4 million, up 21% year over year.
  • Product revenue was $238.8 million, up 19% year over year.
  • Billings were $802.3 million, up 24% year over year.
  • GAAP diluted net income per share was $0.66.

Headline financials

Total Revenue

$614M

Previous: $507M+21.2%
EPS (adj)

$0.15

Previous: $0.12+25.0%
Total Billings

$802M

Previous: $649M+23.6%
Net Income

$115M

Previous: $183M-36.9%
Operating Income

$118M

Previous: $85.1M+39.1%
Gross Profit

$474M

Previous: $379M+25.2%
Cash & Equivalents

$1.22B

Previous: $1.11B+9.9%
Total Assets

$3.88B

Previous: $3.08B+26.0%
Stock-Based Comp

$43.7M

Previous: $42.6M+2.6%

Revenue & EPS history

Fortinet · Revenue · Quarterly

$614M

Q4 2019+21.2%vs Q4 2018
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Fortinet · $239M total across 1 segment · Q4 2019

  • Product Revenue
    $239M+18.9%

Forward guidance

For the first quarter of 2020, Fortinet currently expects revenue in the range of $555 million to $565 million and billings in the range of $635 million to $655 million.

Tailwinds

  • Revenue in the range of $555 million to $565 million
  • Billings in the range of $635 million to $655 million
  • Non-GAAP gross margin in the range of 77.5% to 78.5%
  • Non-GAAP operating margin in the range of 19.0% to 20.0%
  • Diluted non-GAAP net income per share in the range of $0.50 to $0.52, assuming a non-GAAP effective tax rate of 24%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+0.6%

Avg return

Earnings day

+2.3%

Avg return

5 days after

+5.2%

Avg return

30 days after

55%

36 / 66 earnings

Positive

+26.3%

Q2 2024

Best reaction

-23.6%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%+26.2%+61.0%
Q4 2025+4.9%+11.3%+6.0%
Q3 2025+4.2%-2.7%+1.1%
Q2 2025-1.2%+5.4%+4.7%
Q1 2025-8.6%-1.6%-1.7%
Q4 2024+2.8%+2.8%-3.3%
Q3 2024+13.8%+22.6%+22.7%
Q2 2024+26.3%+25.8%+36.8%
Q1 2024-7.3%-6.5%-6.6%
Q4 2023+6.0%+6.6%+10.6%
Q3 2023-11.9%-13.6%-8.4%
Q2 2023-23.6%-21.2%-18.1%
Q1 2023+6.8%+9.8%+12.6%
Q4 2022+14.7%+14.7%+15.3%
Q3 2022-18.6%-15.2%-5.0%
Q2 2022-12.9%-11.7%-19.5%
Q1 2022-0.7%-14.4%+3.5%
Q4 2021+1.4%+1.6%+8.3%
Q3 2021+3.4%+5.8%-8.2%
Q2 2021+0.2%+9.6%+16.3%
Q1 2021+3.2%+4.4%+10.4%
Q4 2020+3.0%+6.0%+11.0%
Q3 2020-7.2%-5.5%+4.1%
Q2 2020-6.5%-9.7%-16.0%
Q1 2020+24.5%+29.4%+29.4%
Q4 2019-2.3%-2.1%-16.9%
Q3 2019+9.1%+10.9%+27.2%
Q2 2019+7.2%+2.2%-1.4%
Q1 2019-6.5%-11.0%-21.1%
Q4 2018-3.2%-0.3%-1.6%
Q3 2018-11.7%-9.0%-10.1%
Q2 2018+17.2%+17.0%+33.1%
Q1 2018-2.1%+1.8%+10.8%
Q4 2017+3.6%+3.6%+16.8%
Q3 2017-2.4%-0.7%+5.6%
Q2 2017-5.7%-9.3%-8.7%
Q1 2017-2.3%-1.3%-1.0%
Q4 2016+13.9%+14.1%+9.6%
Q3 2016+5.3%+5.2%+1.3%
Q2 2016-5.3%-7.2%-2.6%
Q1 2016+6.5%
Q4 2015+8.9%
Q3 2015-16.7%
Q2 2015+9.1%
Q1 2015+13.1%
Q4 2014-10.0%
Q3 2014+0.8%
Q2 2014+6.8%
Q1 2014+4.1%
Q4 2013+0.7%
Q3 2013+0.7%
Q2 2013+4.4%
Q1 2013+0.0%
Q4 2012+19.8%
Q3 2012-18.6%
Q2 2012+12.6%
Q1 2011-1.6%
Q1 2012+0.2%
Q4 2011+0.7%
Q4 2009+0.7%
Q3 2010-4.2%
Q3 2011-4.2%
Q2 2010-7.1%
Q4 2010-7.1%
Q2 2011-7.1%
Q1 2010-6.4%

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