Slide 1: Q3 2022 Financial Results
Q3 2022 Financial Results November 2, 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement Information, statements and projections contained in these presentation slides and related conference call concerning Fortinet’s business outlook, the fourth quarter and full year 2022 guidance, and future prospects and expectations are forward-looking statements that involve r
Slide 3: Q3 2022 Non-GAAP Results
Q3 2022 Non-GAAP Results Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Billings (1) $749.8M $960.9M $850.6M $960.9M $1.06B $1.31B $1.16B $1.30B $1.41B Y/Y % Change 19.7% 19.8% 27.4% 35.1% 41.9% 35.9% 36.4% 35.7% 32.6% Revenue $651.1M $748.0M $710.3M $801.1M $867.2M $963.6M $954.8M $1.03B $1.
Slide 4: Q3 2022 Non-GAAP Results
Q3 2022 Non-GAAP Results Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Gross Profit (1) $517.6M $587.0M $560.1M $621.2M $663.8M $744.4M $710.2M $788.5M $875.5M Gross Margin (1) 79.5% 78.5% 78.9% 77.5% 76.5% 77.3% 74.4% 76.5% 76.2% Operating Income (1)(2) $178.6M $219.9M $173.9M $203.3M $223.
Slide 5: Revenue by Geography
Revenue by Geography Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % ($ in millions) $ $ $ $ $ $ $ $ $ Change Change Change Change Change Change Change Change Change Americas $272.4 13.0% $301.3 19.5% $290.9 19.9% $337.0 29.1% $350.1 28.5%
Slide 6: Number of Deals & FortiGate Sales
Number of Deals & FortiGate Sales Number of Deals (1) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 No. of Deals >$50K 2,267 2,991 2,489 2,856 3,021 3,807 3,241 3,583 4,269 No. of Deals >$250K 398 491 387 499 548 758 598 699 830 No. of Deals >$500K 168 205 167 203 232 320 243 312 355 No. of
Slide 7: Statement of Cash Flows (Non-GAAP)
Statement of Cash Flows (Non-GAAP) ($ in millions) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 GAAP Net Income Including Non-controlling Interests $123.4 $146.7 $107.2 $137.5 $163.2 $198.8 $138.3 $173.4 $231.1 Depreciation, Amortization and Stock-Based Compensation 66.0 65.4 66.8 71.5 75.6
Slide 8: Free Cash Flow and Adjusted Free Cash Flow Growth (Non-GAAP)
Free Cash Flow and Adjusted Free Cash Flow Growth (Non-GAAP) $463.8 $402.8 $386.9 ($ in millions) $366.2 $344.5 $301.6 $304.7 $286.6 (1) $211.8 Reported Free Cash Flow $394.7 $395.2 Real Estate Related Add Backs (2) $329.8 $264.2 $263.8 $273.5 $283.5 $215.5 $185.7 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21
Slide 9: Q4 and 2022 Guidance (Non-GAAP)
(1) Q4 and 2022 Guidance (Non-GAAP) Actual Q4'22E Actual 2021 2022E Q4'21 Billings (2) $1.306B $1.665 - 1.720B $4.181B $5.540 - 5.595B Y/Y Mid-Pt Growth 29.6% 33.1% Revenue (GAAP) $963.6M $1.275 - 1.315B $3.342B $4.410 - 4.450B Y/Y Mid-Pt Growth 34.4% 32.5% Service Revenue (GAAP) $584.7M $2.087B $2.
Slide 10: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ($ in millions) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Total revenue $651.1 $748.0 $710.3 $801.1 $867.2 $963.6 $954.8 $1,030.1 $1,149.5 Add: Change in deferred revenue 98.9 213.3 140.3 159.8 201.0 346.5 205.0 274.1 261.5 Less: Deferred revenue balance
Slide 11: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ($ in millions) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 GAAP product gross profit $139.5 $181.0 $149.4 $182.7 $202.8 $232.4 $210.0 $245.5 $283.5 Stock-based compensation 0.4 0.4 0.4 0.5 0.4 0.4 0.4 0.4 0.5 Amortization of acquired intangible assets 0.8
Slide 12: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 GAAP general and administrative expense $29.4 $32.4 $32.0 $34.4 $35.8 $41.3 $38.6 $45.4 $40.7 Stock-based compensation (5.9) (6.0) (6.3) (7.0) (6.9) (6.9) (7.2) (7.7) (7.4) Non-GAAP gen
Slide 13: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 GAAP provision for (benefit from) income taxes $5.0 $25.0 $12.2 $7.5 $(9.3) $3.7 $(8.1) $2.4 $27.3 Tax adjustments related to the above 29.7 21.7 23.9 34.6 54.2 52.4 41.7 39.1 27.8 Non-
Slide 14: Fortinet
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