NASDAQ$FTNT

Fortinet Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported a 21% increase in total revenue year-over-year, driven by strong sales and demand for cybersecurity products.

Fortinet reported strong Q4 2020 financial results, with total revenue up 21% year-over-year. The company's performance was driven by strong sales execution, an innovative culture, and growing market demand for cybersecurity solutions.

  • Total revenue reached $748.0 million, a 21% increase year-over-year.
  • Product revenue increased by 21% year-over-year, totaling $288.4 million.
  • Service revenue grew by 21% year-over-year, reaching $459.6 million.
  • GAAP diluted net income per share was $0.89, compared to $0.67 for the same quarter of 2019.

Headline financials

Total Revenue

$748M

Previous: $614M+21.7%
EPS (adj)

$0.21

Previous: $0.15+40.0%
Total Billings

$961M

Previous: $802M+19.8%
Free Cash Flow

$264M

No prior period
Net Income

$147M

Previous: $115M+27.3%
Operating Income

$169M

Previous: $118M+43.1%
Gross Profit

$581M

Previous: $474M+22.6%
Cash & Equivalents

$1.06B

Previous: $1.22B-13.1%
Total Assets

$4.04B

Previous: $3.88B+4.3%
Stock-Based Comp

$48.7M

Previous: $43.7M+11.4%

Revenue & EPS history

Fortinet · Revenue · Quarterly

$748M

Q4 2020+21.7%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Fortinet · $288M total across 1 segment · Q4 2020

  • Product Revenue
    $288M+20.8%

Forward guidance

For the first quarter of 2021, Fortinet expects revenue in the range of $670 million to $685 million and billings in the range of $765 million to $780 million.

Tailwinds

  • Revenue in the range of $670 million to $685 million
  • Billings in the range of $765 million to $780 million
  • Non-GAAP gross margin in the range of 78.5% to 79.5%
  • Non-GAAP operating margin in the range of 22.5% to 23.5%
  • Diluted non-GAAP net income per share in the range of $0.70 to $0.75

Headwinds

  • Uncertainty regarding the impact of the COVID-19 pandemic on employees and overall financial performance.
  • Potential negative impacts from the COVID-19 pandemic on sales, billings, revenue, demand and buying patterns.
  • Component supply and ability to manufacture products to meet demand in a timely fashion may be affected by the pandemic.
  • Possible increased costs for shipping and components due to the pandemic.
  • The duration and severity of the economic downturn from the pandemic may negatively impact business and operations.

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 2020

Historical avgQ4 2020

+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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