NASDAQ$FTNT

Fortinet Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported fourth quarter and full year financial results, demonstrating robust revenue growth and profitability.

Fortinet reported strong Q4 2022 results with a 33% increase in total revenue to $1.28 billion. The company's GAAP net income was $313.8 million, and free cash flow reached $497.2 million. For the full year 2022, revenue grew by 32% to $4.42 billion, with a GAAP net income of $857.3 million.

  • Total revenue increased by 33% year-over-year to $1.28 billion.
  • Product revenue grew by 43% year-over-year to $540.1 million.
  • Service revenue increased by 27% year-over-year to $742.9 million.
  • GAAP operating income increased by 66% year-over-year to $357.8 million.

Headline financials

Total Revenue

$1.28B

Previous: $964M+33.1%
EPS (adj)

$0.44

Previous: $0.25+76.0%
Total Billings

$1.72B

Previous: $1.31B+31.3%
Free Cash Flow

$497M

Previous: $216M+130.7%
Net Income

$314M

Previous: $199M+57.7%
Operating Income

$358M

Previous: $215M+66.5%
Gross Profit

$986M

Previous: $735M+34.1%
Cash & Equivalents

$1.68B

Previous: $1.32B+27.6%
Total Assets

$6.23B

Previous: $5.92B+5.2%
Stock-Based Comp

$54.7M

Previous: $53.1M+3.0%

Revenue & EPS history

Fortinet · Revenue · Quarterly

$1.28B

Q4 2022+33.1%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Fortinet · $540M total across 1 segment · Q4 2022

  • Product Revenue
    $540M+42.5%

Forward guidance

For the first quarter of 2023, Fortinet expects revenue in the range of $1.180 billion to $1.220 billion and billings in the range of $1.415 billion to $1.465 billion. For the fiscal year 2023, the company expects revenue in the range of $5.370 billion to $5.430 billion and service revenue in the range of $3.335 billion to $3.365 billion.

Tailwinds

  • Revenue in the range of $1.180 billion to $1.220 billion for Q1 2023
  • Billings in the range of $1.415 billion to $1.465 billion for Q1 2023
  • Non-GAAP gross margin in the range of 75.0% to 76.0% for Q1 2023
  • Non-GAAP operating margin in the range of 23.0% to 24.0% for Q1 2023
  • Diluted non-GAAP net income per share in the range of $0.27 to $0.29 for Q1 2023

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 2022

Historical avgQ4 2022

+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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