- Fortinet reports upbeat profit and billings numbers for Q4
- Net income remains flat, but adjusted earnings per share exceed expectations
- Shares surge 11.6% in after-hours trading
- Revenue and billings surpass analyst estimates
- Successful sales strategy shift and improved execution contribute to positive results
- Company provides optimistic outlook for fiscal year and Q1
After disappointing investors with its previous earnings reports, Fortinet Inc. has made a strong comeback with its latest fourth-quarter results. The cybersecurity company reported impressive profit and billings numbers that have sent its stock soaring. This turnaround is a much-needed boost for Fortinet and indicates a positive shift in the company’s performance.
Strong Financial Performance
Fortinet generated a net income of $310.9 million, or 40 cents a share, for the fourth quarter, which was nearly flat compared to the previous year. However, on an adjusted basis, the company earned 51 cents a share, surpassing analysts’ expectations of 43 cents a share. This positive earnings surprise has been well-received by investors, leading to an 11.6% surge in the company’s stock during after-hours trading.
Revenue and Billings Exceed Expectations
Fortinet’s revenue for the fourth quarter rose by 10% to $1.42 billion, surpassing the FactSet consensus of $1.41 billion. The company’s billings, which capture deferred revenue, came in at $1.86 billion, exceeding analysts’ expectations of $1.63 billion. These strong revenue and billings numbers demonstrate Fortinet’s ability to deliver solid financial performance.
Successful Sales Strategy Shift
The company attributes its positive results to a successful sales strategy shift and improved execution by its sales teams. Fortinet’s Chief Executive, Ken Xie, highlighted the impact of these changes in a release, emphasizing the role they played in the company’s improved performance. This strategic shift has clearly paid off and has instilled confidence in investors and analysts alike.
Optimistic Outlook for Fiscal Year and Q1
Looking ahead, Fortinet expects its current fiscal year’s revenue to range from $5.715 billion to $5.815 billion, with billings projected to be between $6.4 billion and $6.6 billion. Although these figures are slightly lower than the FactSet consensus, the company remains optimistic about its growth prospects. For the first quarter, Fortinet anticipates revenue between $1.3 billion and $1.36 billion, along with billings ranging from $1.390 billion to $1.450 billion. These projections indicate a positive start to the year for Fortinet.
Fortinet’s strong fourth-quarter earnings and billings have reinvigorated investor confidence and propelled the company’s stock to new heights. The positive financial performance, attributed to a successful sales strategy shift and improved execution, showcases Fortinet’s ability to adapt and thrive in the highly competitive cybersecurity market. With an optimistic outlook for the fiscal year and the first quarter, Fortinet is well-positioned to continue its growth trajectory.