Fortinet, Inc. · NASDAQ:FTNT

Fortinet — Q1 2021 Earnings Presentation

14 slides from Fortinet's earnings presentation, Apr 29, 2021

  1. Slide 1: Q1 2021 Financial Results

    Q1 2021 Financial Results April 29, 2021 1

  2. 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 second quarter and full year 2021 guidance, and future prospects and expectations are forward-looking statements that involve r

  3. Slide 3: Q1 2021 Non-GAAP Results

    Q1 2021 Non-GAAP Results Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Billings (1) $551.6M $622.4M $626.6M $802.3M $667.8M $711.5M $749.8M $960.9M $850.6M Y/Y % Change 19.1% 21.2% 18.8% 23.6% 21.1% 14.3% 19.7% 19.8% 27.4% Revenue $473.0M $523.8M $548.1M $618.1M $577.7M $617.6M $651.1M $748.

  4. Slide 4: Q1 2021 Non-GAAP Results (Continued)

    Q1 2021 Non-GAAP Results (Continued) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Gross Margin (1) 77.2% 76.5% 78.2% 78.1% 78.8% 79.1% 79.5% 78.5% 78.9% Operating Income (1)(2) $97.0M $125.2M $145.2M $168.6M $129.2M $170.3M $178.6M $219.9M $173.9M Operating Margin (1)(2) 20.5% 23.9% 26.5% 2

  5. Slide 5: Revenue by Geography

    Revenue by Geography Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 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 $200.6 14.0% $226.4 19.3% $241.0 24.3% $252.2 23.1% $242.5 20.9%

  6. Slide 6: Number of Deals & FortiGate Sales

    Number of Deals & FortiGate Sales Number of Deals (1) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 No. of Deals >$50K 1,683 1,906 1,908 2,565 2,121 2,111 2,267 2,991 2,489 No. of Deals >$250K 266 346 333 469 323 369 398 491 387 No. of Deals >$500K 108 147 130 197 120 146 168 205 167 No. of

  7. Slide 7: Statement of Cash Flows (Non-GAAP)

    Statement of Cash Flows (Non-GAAP) ($ in millions) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 GAAP Net Income $59.1 $74.2 $80.2 $118.2 $104.6 $113.8 $123.4 $146.7 $107.2 Depreciation and Stock-Based Compensation 58.7 60.2 57.4 59.4 62.4 66.7 66.0 65.4 66.8 Accounts Receivable 63.6 (22.1)

  8. Slide 8: Free Cash Flow and Adjusted Free Cash Flow Growth (Non-GAAP)

    Free Cash Flow and Adjusted Free Cash Flow Growth (Non-GAAP) $302 $286 ($ in millions) $262 $237 $215 $212 $195 $187 $178 (1) Reported Free Cash Flow Real Estate Related Add Backs (2) $242 $264 $264 $216 $191 $178 $204 $186 $143 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Notes (1) Free Ca

  9. Slide 9: Q2 2021 and 2021 Guidance (Non-GAAP)

    (1) Q2 2021 and 2021 Guidance (Non-GAAP) Actual Q2'21E Actual 2020 2021E Q2'20 Billings (2) $711.5M $860 - 880M $3.090B $3.685 - 3.745B Y/Y Mid-Pt Growth 22% 20% Revenue (GAAP) $617.6M $733 - 747M $2.594B $3.080 - 3.130B Y/Y Mid-Pt Growth 20% 20% Service Revenue (GAAP) $405.7M $1.678B $2.020 - 2.050

  10. Slide 10: GAAP to Non-GAAP Reconciliations

    GAAP to Non-GAAP Reconciliations ($ in millions) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 GAAP product gross profit $92.5 $107.2 $118.1 $146.1 $116.0 $127.5 $139.5 $181.0 $149.4 Stock‑based compensation 0.4 0.4 0.4 0.3 0.4 0.4 0.4 0.4 0.4 Amortization of acquired intangible assets 2.1 1

  11. Slide 11: GAAP to Non-GAAP Reconciliations (Continued)

    GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 GAAP general and administrative expense $24.5 $24.3 $26.1 $27.2 $28.8 $28.9 $29.4 $32.4 $32.0 Stock‑based compensation (5.0) (5.4) (5.1) (5.4) (5.3) (6.1) (5.9) (6.0) (6.3) Litigation-r

  12. Slide 12: GAAP to Non-GAAP Reconciliations (Continued)

    GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 GAAP other income (expense), net $(0.5) $(0.4) $(6.0) $(0.6) $(8.0) $0.9 $(1.0) $0.3 $(2.0) Loss on investments in privately-held companies — — 3.8 — 4.3 — — — — Non-GAAP other income (

  13. Slide 13: GAAP to Non-GAAP Reconciliations (Continued)

    GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 GAAP net income $59.1 $74.2 $80.2 $118.2 $104.6 $113.8 $123.4 $146.7 $107.2 Stock‑based compensation 43.0 45.0 42.4 43.7 45.3 49.6 50.0 48.9 50.0 Amortization of acquired intangible ass

  14. Slide 14: F=SRTINET.

    F=SRTINET.

Fortinet — Q1 2021 Earnings Presentation on 6ix