Fortinet, Inc. · NASDAQ:FTNT
Fortinet — Q2 2021 Earnings Presentation
14 slides from Fortinet's earnings presentation, Jul 29, 2021
Slide 1: Q2 2021 Financial Results
Q2 2021 Financial Results July 29, 2021 1
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 third quarter and full year 2021 guidance, and future prospects and expectations are forward-looking statements that involve ri
Slide 3: Q2 2021 Non-GAAP Results
Q2 2021 Non-GAAP Results Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Billings (1) $622.4M $626.6M $802.3M $667.8M $711.5M $749.8M $960.9M $850.6M $960.9M Y/Y % Change 21.2% 18.8% 23.6% 21.1% 14.3% 19.7% 19.8% 27.4% 35.1% Revenue $523.8M $548.1M $618.1M $577.7M $617.6M $651.1M $748.0M $710.
Slide 4: Q2 2021 Non-GAAP Results (Continued)
Q2 2021 Non-GAAP Results (Continued) Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Gross Margin (1) 76.5% 78.2% 78.1% 78.8% 79.1% 79.5% 78.5% 78.9% 77.5% Operating Income (1)(2) $125.2M $145.2M $168.6M $129.2M $170.3M $178.6M $219.9M $173.9M $203.3M Operating Margin (1)(2) 23.9% 26.5% 27.3%
Slide 5: Revenue by Geography
Revenue by Geography Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % Y/Y % ($ in millions) $ $ $ $ $ $ $ $ $ Change Change Change Change Change Change Change Change Change Americas $226.4 19.3% $241.0 24.3% $252.2 23.1% $242.6 20.9% $261.0 15.3%
Slide 6: Number of Deals & FortiGate Sales
Number of Deals & FortiGate Sales Number of Deals (1) Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 No. of Deals >$50K 1,906 1,908 2,565 2,121 2,111 2,267 2,991 2,489 2,856 No. of Deals >$250K 346 333 469 323 369 398 491 387 499 No. of Deals >$500K 147 130 197 120 146 168 205 167 203 No. of
Slide 7: Statement of Cash Flows (Non-GAAP)
Statement of Cash Flows (Non-GAAP) ($ in millions) Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 GAAP Net Income $74.2 $80.2 $118.2 $104.6 $113.8 $123.4 $146.7 $107.2 $137.5 Depreciation, Amortization and Stock-Based Compensation 60.2 57.4 59.4 62.4 66.7 66.0 65.4 66.8 71.5 Accounts Receivab
Slide 8: Free Cash Flow and Adjusted Free Cash Flow Growth (Non-GAAP)
Free Cash Flow and Adjusted Free Cash Flow Growth (Non-GAAP) $403 ($ in millions) $286 $302 $262 $237 Reported Free Cash Flow (1) $215 $212 $187 $178 $395 Real Estate Related Add Backs (2) $242 $216 $264 $264 $178 $204 $186 $143 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Notes (1) Free Ca
Slide 9: Q3 2021 and 2021 Guidance (Non-GAAP)
(1) Q3 2021 and 2021 Guidance (Non-GAAP) Actual Q3'21E Actual 2020 2021E Q3'20 Billings (2) $749.8M $940 - 960M $3.090B $3.870 - 3.920B Y/Y Mid-Pt Growth 27% 26% Revenue (GAAP) $651.1M $800 - 815M $2.594B $3.210 - 3.250B Y/Y Mid-Pt Growth 24% 24.5% Service Revenue (GAAP) $427.3M $1.678B $2.045 - 2.0
Slide 10: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ($ in millions) Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 GAAP product gross profit $107.2 $118.1 $146.1 $116.0 $127.5 $139.5 $181.0 $149.4 $182.7 Stock‑based compensation 0.4 0.4 0.3 0.4 0.4 0.4 0.4 0.4 0.5 Amortization of acquired intangible assets 1.7
Slide 11: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 GAAP general and administrative expense $24.3 $26.1 $27.2 $28.8 $28.9 $29.4 $32.4 $32.0 $34.4 Stock‑based compensation (5.4) (5.1) (5.4) (5.3) (6.1) (5.9) (6.0) (6.3) (7.0) Litigation-r
Slide 12: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 GAAP other income (expense), net $(0.4) $(6.0) $(0.6) $(8.0) $0.9 $(1.0) $0.3 $(2.0) $0.8 Loss on investments in privately-held companies — 3.8 — 4.3 — — — — — Non-GAAP other income (ex
Slide 13: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 GAAP net income $74.2 $80.2 $118.2 $104.6 $113.8 $123.4 $146.7 $107.2 $137.5 Stock‑based compensation 45.0 42.4 43.7 45.3 49.6 50.0 48.9 50.0 53.5 Amortization of acquired intangible as
Slide 14: Fortinet
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