Slide 1: Q3 2021 Financial Results
Q3 2021 Financial Results November 4, 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 fourth quarter and full year 2021 guidance, and future prospects and expectations are forward-looking statements that involve r
Slide 3: Q3 2021 Non-GAAP Results
Q3 2021 Non-GAAP Results Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Billings (1) $626.6M $802.3M $667.8M $711.5M $749.8M $960.9M $850.6M $960.9M $1.06B Y/Y % Change 18.8% 23.6% 21.1% 14.3% 19.7% 19.8% 27.4% 35.1% 41.9% Revenue $548.1M $618.1M $577.7M $617.6M $651.1M $748.0M $710.3M $801.1
Slide 4: Q3 2021 Non-GAAP Results (Continued)
Q3 2021 Non-GAAP Results (Continued) Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Gross Profit (1) $428.7M $482.7M $455.0M $488.4M $517.6M $587.0M $560.1M $621.2M $663.8M Gross Margin (1) 78.2% 78.1% 78.8% 79.1% 79.5% 78.5% 78.9% 77.5% 76.5% Operating Income (1)(2) $145.2M $168.6M $129.2M $
Slide 5: Revenue by Geography
Revenue by Geography Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 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 $241.0 24.3% $252.2 23.1% $242.6 20.9% $261.0 15.3% $272.4 13.0%
Slide 6: Number of Deals & FortiGate Sales
Number of Deals & FortiGate Sales Number of Deals (1) Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 No. of Deals >$50K 1,908 2,565 2,121 2,111 2,267 2,991 2,489 2,856 3,021 No. of Deals >$250K 333 469 323 369 398 491 387 499 548 No. of Deals >$500K 130 197 120 146 168 205 167 203 232 No. of
Slide 7: Statement of Cash Flows (Non-GAAP)
Statement of Cash Flows (Non-GAAP) ($ in millions) Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 GAAP Net Income including Non-controlling Interests $80.2 $118.2 $104.6 $113.8 $123.4 $146.7 $107.2 $137.5 $163.2 Depreciation, Amortization and Stock-Based Compensation 57.4 59.4 62.4 66.7 66.0
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 $387 ($ in millions) $286 $302 $262 $237 Reported Free Cash Flow (1) $215 $212 $178 $395 Real Estate Related Add Backs (2) $330 $242 $216 $264 $264 $204 $186 $143 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Notes (1) Free Ca
Slide 9: Q4 2021 and 2021 Guidance (Non-GAAP)
(1) Q4 2021 and 2021 Guidance (Non-GAAP) Actual Q4'21E Actual 2020 2021E Q4'20 Billings (2) $960.9M $1.165 - 1.215B $3.090B $4.040 - 4.090B Y/Y Mid-Pt Growth 23.8% 31.6% Revenue (GAAP) $748.0M $940 - 970M $2.594B $3.320 - 3.350B Y/Y Mid-Pt Growth 27.7% 28.6% Service Revenue (GAAP) $459.6M $1.678B $2
Slide 10: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ($ in millions) Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Total Revenue $548.1 $618.1 $577.7 $617.6 $651.1 $748.0 $710.3 $801.1 $867.2 Add: Change in deferred revenue 78.5 186.6 90.1 93.9 98.9 213.3 140.3 159.8 201.0 Less: Deferred revenue balance acquire
Slide 11: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations ($ in millions) Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 GAAP product gross profit $118.1 $146.1 $116.0 $127.5 $139.5 $181.0 $149.4 $182.7 $202.8 Stock‑based compensation 0.4 0.3 0.4 0.4 0.4 0.4 0.4 0.5 0.4 Amortization of acquired intangible assets 1.2
Slide 12: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 GAAP general and administrative expense $26.1 $27.2 $28.8 $28.9 $29.4 $32.4 $32.0 $34.4 $35.8 Stock‑based compensation (5.1) (5.4) (5.3) (6.1) (5.9) (6.0) (6.3) (7.0) (6.9) Litigation-r
Slide 13: GAAP to Non-GAAP Reconciliations (Continued)
GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 GAAP other income (expense), net $(6.0) $(0.6) $(8.0) $0.9 $(1.0) $0.3 $(2.0) $0.8 $(6.3) Loss on investments in privately-held companies 3.8 — 4.3 — — — — — — Non-GAAP other income (ex
Slide 14: F=SRTINET.
F=SRTINET.