Slide 1: Q1 2022 Financial Results
Q1 2022 Financial Results May 4, 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 second quarter and full year 2022 guidance, and future prospects and expectations are forward-looking statements that involve r
Slide 3: Q1 2022 Non-GAAP Results
Q1 2022 Non-GAAP Results Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Billings (1) $667.8M $711.5M $749.8M $960.9M $850.6M $960.9M $1.06B $1.31B $1.16B Y/Y % Change 21.1% 14.3% 19.7% 19.8% 27.4% 35.1% 41.9% 35.9% 36.4% Revenue $577.7M $617.6M $651.1M $748.0M $710.3M $801.1M $867.2M $963.6M
Slide 4: Backlog and Bookings
Backlog and Bookings Bookings ($ in millions) $1,428 $1,276 $1,084 $960 $968 $852 Backlog $278 $74 $162 $37 $40 $204 $12 $13 $20 $125 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 (1) (1) (2) Product Backlog Service Backlog Bookings Notes (1) Backlog represents orders recei
Slide 5: Q1 2022 Non-GAAP Results
Q1 2022 Non-GAAP Results Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Gross Profit (1) $455.0M $488.4M $517.6M $587.0M $560.1M $621.2M $663.8M $744.4M $710.2M Gross Margin (1) 78.8% 79.1% 79.5% 78.5% 78.9% 77.5% 76.5% 77.3% 74.4% Operating Income (1)(2) $129.2M $170.3M $178.6M $219.9M $173.
Slide 6: Revenue by Geography
Revenue by Geography Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % ($ in millions) $ $ $ $ $ $ $ $ $ Change Change Change Change Change Change Change Change Change Americas $242.6 20.9% $261.0 15.3% $272.4 13.0% $301.3 19.5% $290.9 19.9%
Slide 7: Number of Deals & FortiGate Sales
Number of Deals & FortiGate Sales Number of Deals (1) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 No. of Deals >$50K 2,121 2,111 2,267 2,991 2,489 2,856 3,021 3,807 3,241 No. of Deals >$250K 323 369 398 491 387 499 548 758 598 No. of Deals >$500K 120 146 168 205 167 203 232 320 243 No. of
Slide 8: Statement of Cash Flows (Non-GAAP)
Statement of Cash Flows (Non-GAAP) ($ in millions) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 GAAP Net Income Including Non-controlling Interests $104.6 $113.8 $123.4 $146.7 $107.2 $137.5 $163.2 $198.8 $138.3 Depreciation, Amortization and Stock-Based Compensation 62.4 66.7 66.0 65.4 66.8
Slide 9: Free Cash Flow and Adjusted Free Cash Flow Growth (Non-GAAP)
Free Cash Flow and Adjusted Free Cash Flow Growth (Non-GAAP) $402.8 $386.9 $366.2 $344.5 ($ in millions) $301.6 $286.6 $261.5 $237.5 $211.8 (1) $394.7 Reported Free Cash Flow $329.8 Real Estate Related Add Backs(2) $264.2 $263.8 $273.5 $241.8 $216.1 $215.5 $185.7 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
Slide 10: Q2 and 2022 Guidance (Non-GAAP)
(1) Q2 and 2022 Guidance (Non-GAAP) Actual Q2'22E Actual 2021 2022E Q2'21 Billings (2) $960.9M $1.225 - 1.265B $4.181B $5.500 - 5.580B Y/Y Mid-Pt Growth 29.6% 32.5% Revenue (GAAP) $801.1M $1.005 - 1.035B $3.342B $4.350 - 4.400B Y/Y Mid-Pt Growth 27.3% 30.9% Service Revenue (GAAP) $502.8M $2.087B $2.
Slide 11: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ($ in millions) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Total revenue $577.7 $617.6 $651.1 $748.0 $710.3 $801.1 $867.2 $963.6 $954.8 Add: Change in deferred revenue 90.1 93.9 98.9 213.3 140.3 159.8 201.0 346.5 205.0 Less: Deferred revenue balance acquir
Slide 12: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ($ in millions) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 GAAP product gross profit $116.0 $127.5 $139.5 $181.0 $149.4 $182.7 $202.8 $232.4 $210.0 Stock-based compensation 0.4 0.4 0.4 0.4 0.4 0.5 0.4 0.4 0.4 Amortization of acquired intangible assets 1.6
Slide 13: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 GAAP general and administrative expense $28.8 $28.9 $29.4 $32.4 $32.0 $34.4 $35.8 $41.3 $38.6 Stock-based compensation (5.3) (6.1) (5.9) (6.0) (6.3) (7.0) (6.9) (6.9) (7.2) Litigation-r
Slide 14: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 GAAP other income (expense), net $(8.0) $0.9 $(1.0) $0.3 $(2.0) $0.8 $(6.3) $(4.1) $(9.1) Loss on investments in privately-held companies 4.3 — — — — — — — — Non-GAAP other income (expe
Slide 15: Fortinet
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