Fortinet Reports Third Quarter 2020 Financial Results
Third Quarter 2020 Highlights
- Total revenue of
$651.1 million , up 19% year over year - Product revenue of
$223.8 million , up 14% year over year - Service revenue of
$427.3 million , up 22% year over year - Billings of
$749.8 million , up 20% year over year1 - Deferred revenue of
$2.39 billion , up 24% year over year - GAAP operating margin of 19.5%, up 110 basis points year over year
- Non-GAAP operating margin of 27.4%, up 90 basis points year over year1
- GAAP diluted net income per share of
$0.75 - Non-GAAP diluted net income per share of
$0.88 1 - Cash flow from operations of
$220.8 million - Free cash flow of
$185.7 million 1
“Strong performances by our Secure SD-WAN, cloud, and Security Fabric offerings resulted in solid third-quarter year-over-year total revenue growth. In the quarter, Secure SD-WAN revenue more than doubled from the same period a year ago. At the end of the third quarter, Gartner recognized our differentiated SD-WAN offering as a Leader in the 2020 WAN Edge Infrastructure Magic Quadrant,” said
Financial Highlights for the Third Quarter of 20202
- Revenue: Total revenue was
$651.1 million for the third quarter of 2020, an increase of 18.8% compared to$548.1 million for the same quarter of 2019. - Product Revenue: Product revenue was
$223.8 million for the third quarter of 2020, an increase of 13.5% compared to$197.1 million for the same quarter of 2019. - Service Revenue: Service revenue was
$427.3 million for the third quarter of 2020, an increase of 21.7% compared to$351.0 million for the same quarter of 2019. - Billings1: Total billings were
$749.8 million for the third quarter of 2020, an increase of 19.7% compared to$626.6 million for the same quarter of 2019. - Deferred Revenue: Total deferred revenue was
$2.39 billion as ofSeptember 30, 2020 , an increase of 24.4% compared to$1.92 billion as ofSeptember 30, 2019 . - GAAP Operating Income and Margin: GAAP operating income was
$126.9 million for the third quarter of 2020, representing a GAAP operating margin of 19.5%. GAAP operating income was$100.6 million for the same quarter of 2019, representing a GAAP operating margin of 18.4%. - Non-GAAP Operating Income and Margin1: Non-GAAP operating income was
$178.6 million for the third quarter of 2020, representing a non-GAAP operating margin of 27.4%. Non-GAAP operating income was$145.2 million for the third quarter of 2019, representing a non-GAAP operating margin of 26.5%. - GAAP Net Income and Diluted Net Income Per Share: GAAP net income was
$123.4 million for the third quarter of 2020, compared to GAAP net income of$80.2 million for the same quarter of 2019. GAAP diluted net income per share was$0.75 for the third quarter of 2020, based on 165.6 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of$0.46 for the same quarter of 2019, based on 174.8 million diluted weighted-average shares outstanding. - Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was
$145.4 million for the third quarter of 2020, compared to non-GAAP net income of$117.3 million for the same quarter of 2019. Non-GAAP diluted net income per share was$0.88 for the third quarter of 2020, based on 165.6 million diluted weighted-average shares outstanding, compared to$0.67 for the same quarter of 2019, based on 174.8 million diluted weighted-average shares outstanding. - Cash Flow and Free Cash Flow1: In the third quarter of 2020, cash flow from operations was
$220.8 million compared to$221.2 million in the same quarter of 2019. Free cash flow was$185.7 million during the third quarter of 2020, compared to$203.7 million for the same quarter of 2019.
Guidance
For the fourth quarter of 2020,
- Revenue in the range of
$710 million to$730 million - Billings in the range of
$890 million to$920 million - Non-GAAP gross margin in the range of 78.0% to 80.0%
- Non-GAAP operating margin in the range of 27.0% to 29.0%
- Diluted non-GAAP net income per share in the range of
$0.95 to$0.97 , assuming a non-GAAP effective tax rate of 21%. This assumes a diluted share count of 167 million to 169 million.
These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets and gain on intellectual property matter. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.
1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
2 During the third quarter,
Conference Call Details
Fourth Quarter 2020 Virtual Conference Participation Schedule:
- Credit Suisse – Disruptive Security Series
November 13, 2020
- Credit Suisse 24th Annual Technology Conference
December 2, 2020
Raymond James Technology Conference (IR Only)December 7, 2020
UBS Global TMT Virtual Conference December 8, 2020
- Barclays Technology, Media and Telecommunications Conference
December 9, 2020
Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s web site. To access the most updated information and listen to the webcast of each event, please visit the Investor Relations page of Fortinet’s website at https://investor.fortinet.com. The schedule is subject to change.
About
Copyright © 2020 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of
FTNT-F
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding demand for our products and services, guidance and expectations around future financial results, including guidance and expectations for the fourth quarter 2020, statements regarding market share gains and innovation and investment areas, statements regarding the acceleration of digital transformation and cloud migration efforts as a result of the COVID-19, and statements regarding the momentum in our business and future growth expectations and objectives. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by the COVID-19 pandemic; 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, and costs such as possible increased costs for shipping and components; global economic conditions, country-specific economic conditions, and foreign currency risks; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; uncertainties around continued success in sales growth and market share gains; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by the COVID-19 pandemic; competition and pricing pressure; product inventory shortages for any reason, including those caused by the COVID-19 pandemic; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses such as the COVID-19 pandemic, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies; any political and government disruption around the world, including the impact of any future shutdowns of the
COVID-19 Impact
While the broader implications of the COVID-19 pandemic on our employees and overall financial performance remain uncertain, we have seen certain impacts on our business and operations, results of operations, financial condition, cash flows, liquidity and capital and financial resources. Going forward, the situation is uncertain, rapidly changing and hard to predict, and the COVID-19 pandemic may have a material negative impact on our future periods, including our results for the three months ending
Non-GAAP Financial Measures
We have provided in this release financial information that has not been prepared in accordance with
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.
Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period, less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.
Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment and excluding any significant non-recurring items, such as proceeds from intellectual property matter. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures and net of proceeds from intellectual property matter, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes cash flows from significant non-recurring items, such as proceeds from intellectual property matter, investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.
Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, impairment and amortization of acquired intangible assets, gain on intellectual property matter and, when applicable, other significant non-recurring items in a given quarter, such as non-recurring gains or losses on litigation-related matters. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income or loss calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.
Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income or loss plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for gains or losses on investments in privately held companies and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income or loss and diluted net income per share calculated in accordance with GAAP.
CONDENSED CONSOLIDATED BALANCE SHEETS1
(Unaudited, in millions)
2020 |
2019 |
|||||||
ASSETS | ||||||||
CURRENT ASSETS: | ||||||||
Cash and cash equivalents | $ | 882.3 | $ | 1,222.5 | ||||
Short-term investments | 774.4 | 843.1 | ||||||
Accounts receivable—net | 546.6 | 544.3 | ||||||
Inventory | 134.5 | 117.9 | ||||||
Prepaid expenses and other current assets | 46.8 | 41.2 | ||||||
Total current assets | 2,384.6 | 2,769.0 | ||||||
LONG-TERM INVESTMENTS | 117.9 | 144.3 | ||||||
PROPERTY AND EQUIPMENT—NET | 419.4 | 344.3 | ||||||
DEFERRED CONTRACT COSTS | 281.1 | 237.0 | ||||||
DEFERRED TAX ASSETS | 230.1 | 226.3 | ||||||
GOODWILL AND OTHER INTANGIBLE ASSETS—NET | 93.5 | 98.3 | ||||||
OTHER ASSETS | 59.6 | 60.0 | ||||||
TOTAL ASSETS | $ | 3,586.2 | $ | 3,879.2 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
CURRENT LIABILITIES: | ||||||||
Accounts payable | $ | 95.9 | $ | 96.4 | ||||
Accrued liabilities | 127.8 | 101.8 | ||||||
Accrued payroll and compensation | 121.9 | 101.8 | ||||||
Deferred revenue | 1,300.0 |
1,155.8 | ||||||
Total current liabilities | 1,645.6 | 1,455.8 | ||||||
DEFERRED REVENUE | 1,092.0 | 953.3 | ||||||
INCOME TAX LIABILITIES | 79.3 | 82.8 | ||||||
OTHER LIABILITIES | 56.1 | 44.9 | ||||||
Total liabilities | 2,873.0 | 2,536.8 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
STOCKHOLDERS’ EQUITY: | ||||||||
Common stock | 0.2 | 0.2 | ||||||
Additional paid-in capital | 1,178.5 | 1,180.3 | ||||||
Accumulated other comprehensive income | 1.4 | 1.1 | ||||||
Retained earnings (accumulated deficit) | (466.9 | ) | 160.8 | |||||
Total stockholders’ equity | 713.2 | 1,342.4 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,586.2 | $ | 3,879.2 |
1 During the third quarter,
CONDENSED CONSOLIDATED STATEMENTS OF INCOME1
(Unaudited, in millions, except per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||||
REVENUE: | ||||||||||||||||||
Product | $ | 223.8 | $ | 197.1 | $ | 628.0 | $ | 549.7 | ||||||||||
Service | 427.3 | 351.0 | 1,218.4 | 995.2 | ||||||||||||||
Total revenue | 651.1 | 548.1 | 1,846.4 | 1,544.9 | ||||||||||||||
COST OF REVENUE: | ||||||||||||||||||
Product | 84.3 | 79.0 | 245.0 | 231.9 | ||||||||||||||
Service | 54.9 | 45.1 | 158.0 | 133.5 | ||||||||||||||
Total cost of revenue | 139.2 | 124.1 | 403.0 | 365.4 | ||||||||||||||
GROSS PROFIT: | ||||||||||||||||||
Product | 139.5 | 118.1 | 383.0 | 317.8 | ||||||||||||||
Service | 372.4 | 305.9 | 1,060.4 | 861.7 | ||||||||||||||
Total gross profit | 511.9 | 424.0 | 1,443.4 | 1,179.5 | ||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||
Research and development | 90.0 | 69.9 | 252.4 | 205.9 | ||||||||||||||
Sales and marketing | 266.7 | 227.4 | 780.5 | 669.8 | ||||||||||||||
General and administrative | 29.4 | 26.1 | 87.1 | 74.9 | ||||||||||||||
Gain on intellectual property matter | (1.1 | ) | — | (39.0 | ) | — | ||||||||||||
Total operating expenses | 385.0 | 323.4 | 1,081.0 | 950.6 | ||||||||||||||
OPERATING INCOME | 126.9 | 100.6 | 362.4 | 228.9 | ||||||||||||||
INTEREST INCOME—NET | 2.5 | 11.4 | 15.7 | 32.6 | ||||||||||||||
OTHER EXPENSE—NET | (1.0 | ) | (6.0 | ) | (8.1 | ) | (6.9 | ) | ||||||||||
INCOME BEFORE INCOME TAXES | 128.4 | 106.0 | 370.0 | 254.6 | ||||||||||||||
PROVISION FOR INCOME TAXES | 5.0 | 25.8 | 28.2 | 41.1 | ||||||||||||||
NET INCOME | $ | 123.4 | $ | 80.2 | $ | 341.8 | $ | 213.5 | ||||||||||
Net income per share: | ||||||||||||||||||
Basic | $ | 0.76 | $ | 0.47 | $ | 2.07 | $ | 1.25 | ||||||||||
Diluted | $ | 0.75 | $ | 0.46 | $ | 2.03 | $ | 1.22 | ||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||
Basic | 162.1 | 171.3 | 164.8 | 170.9 | ||||||||||||||
Diluted | 165.6 | 174.8 | 168.4 | 174.9 |
1 During the third quarter,
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS1
(Unaudited, in millions)
Nine Months Ended | |||||||||
2020 |
2019 |
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net income | $ | 341.8 | $ | 213.5 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||
Stock-based compensation | 143.0 | 130.4 | |||||||
Amortization of deferred contract costs | 99.8 | 78.5 | |||||||
Depreciation and amortization | 52.1 | 45.9 | |||||||
Amortization of investment discounts | 0.2 | (4.7 | ) | ||||||
Other | 5.8 | 5.0 | |||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable—net | (3.1 | ) | 60.5 | ||||||
Inventory | (31.0 | ) | (25.2 | ) | |||||
Prepaid expenses and other current assets | (4.6 | ) | (6.3 | ) | |||||
Deferred contract costs | (143.9 | ) | (113.1 | ) | |||||
Deferred tax assets | 4.4 | 11.5 | |||||||
Other assets | (2.0 | ) | (0.8 | ) | |||||
Accounts payable | (4.2 | ) | (6.2 | ) | |||||
Accrued liabilities | 16.5 | (16.6 | ) | ||||||
Accrued payroll and compensation | 19.5 | (9.5 | ) | ||||||
Other liabilities | 10.3 | (1.0 | ) | ||||||
Deferred revenue | 282.6 | 255.7 | |||||||
Net cash provided by operating activities | 787.2 | 617.6 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
Purchases of investments | (776.3 | ) | (1,072.4 | ) | |||||
Sales of investments | 141.4 | 19.7 | |||||||
Maturities of investments | 730.3 | 695.0 | |||||||
Purchases of property and equipment | (93.6 | ) | (45.0 | ) | |||||
Payments made in connection with business combination, net of cash acquired | (9.2 | ) | — | ||||||
Other | (0.4 | ) | — | ||||||
Net cash used in investing activities | (7.8 | ) | (402.7 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||
Repurchase and retirement of common stock | (1,046.0 | ) | (117.6 | ) | |||||
Proceeds from issuance of common stock | 18.2 | 41.8 | |||||||
Taxes paid related to net share settlement of equity awards | (86.5 | ) | (76.0 | ) | |||||
Payment of debt assumed in connection with business combination | (4.1 | ) | — | ||||||
Other | (1.2 | ) | — | ||||||
Net cash used in financing activities | (1,119.6 | ) | (151.8 | ) | |||||
(340.2 | ) | 63.1 | |||||||
CASH AND CASH EQUIVALENTS—Beginning of period | 1,222.5 | 1,112.4 | |||||||
CASH AND CASH EQUIVALENTS—End of period | $ | 882.3 | $ | 1,175.5 |
1 During the third quarter,
Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Unaudited, in millions, except per share amounts)
Reconciliation of net cash provided by operating activities to free cash flow1
Three Months Ended | |||||||||
2020 |
2019 |
||||||||
Net cash provided by operating activities | $ | 220.8 | $ | 221.2 | |||||
Less: Purchases of property and equipment | (35.1 | ) | (17.5 | ) | |||||
Free cash flow | $ | 185.7 | $ | 203.7 | |||||
Net cash used in investing activities | $ | (224.6 | ) | $ | (27.1 | ) | |||
Net cash used in financing activities | $ | (30.3 | ) | $ | (40.7 | ) |
Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share1
Three Months Ended |
Three Months Ended |
||||||||||||||||||||||||
GAAP Results |
Adjustments | Non-GAAP Results |
GAAP Results | Adjustments | Non-GAAP Results |
||||||||||||||||||||
Operating income | $ | 126.9 | $ | 51.7 | (a) | $ | 178.6 | $ | 100.6 | $ | 44.6 | (b) | $ | 145.2 | |||||||||||
Operating margin | 19.5 | % | 27.4 | % | 18.4 | % | 26.5 | % | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||||
Stock-based compensation | 50.0 | 42.4 | |||||||||||||||||||||||
Amortization of acquired intangible assets | 2.8 | 2.2 | |||||||||||||||||||||||
Gain on intellectual property matter | (1.1 | ) | — | ||||||||||||||||||||||
Loss on investments in privately-held companies | — | 3.8 | (c) | ||||||||||||||||||||||
Tax adjustment | (29.7 | ) | (d) | (11.3 | ) | (d) | |||||||||||||||||||
Net income | $ | 123.4 | $ | 22.0 | $ | 145.4 | $ | 80.2 | $ | 37.1 | $ | 117.3 | |||||||||||||
Diluted net income per share | $ | 0.75 | $ | 0.88 | $ | 0.46 | $ | 0.67 | |||||||||||||||||
Shares used in diluted net income per share calculations | 165.6 | 165.6 | 174.8 | 174.8 |
(a) To exclude
(b) To exclude
(c) To exclude a
(d) Non-GAAP financial information is adjusted to an effective tax rate of 19% and 24% in the three months ended 2020 and 2019, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
Reconciliation of total revenue to total billings1
Three Months Ended | ||||||||
2020 |
2019 |
|||||||
Total revenue | $ | 651.1 | $ | 548.1 | ||||
Add: Change in deferred revenue | 98.9 | 78.5 | ||||||
Less: Deferred revenue balance acquired in business acquisition | (0.2 | ) | — | |||||
Total billings | $ | 749.8 | $ | 626.6 |
1 During the third quarter,
Investor Contact: | Media Contact: | |
408-331-4595 | 408-391-9408 | |
psalkowski@fortinet.com | swheatley@fortinet.com |
Source: Fortinet, Inc.