Fortinet's Total Revenue Increases by 13% Year-Over-Year; Service Revenue Rises by 19%

Fortinet announced its financial results for the third quarter ending September 30, 2024. According to the highlights, total revenue increased by 13% year-over-year, while service revenue grew by 19% compared to the previous year. Billing and product revenue regained growth momentum. There was strong growth in billing for the combined SASE and Security Operations. A record GAAP operating margin of 31.2% was achieved, along with a record non-GAAP operating margin of 36.1%. Cash flow from operations was $608 million, with free cash flow at $572 million. There is an upward revision in revenue and non-GAAP operating margin expectations for 2024.

Ken Xie, Founder, Chairman of the Board, and CEO of Fortinet, stated, "We are pleased to report another strong quarter, marked by a 830 basis point increase in non-GAAP operating margin to a company record of 36%, and revenue growth of 13% year-over-year exceeding the upper end of our guidance range." He added, "As we continue to gain market share in the secure networking space, our investments in the rapidly growing combined SASE and Security Operations markets have yielded strong results. Our expertise in converging networking and security, coupled with our proven history of innovation, and seamless product integration in FortiOS and FortiASIC, positions us well to lead in our three key growth areas and sustain our momentum."