Fortinet, a prominent cybersecurity company based in the US, announced that it has revised its annual revenue projections due to ongoing shifts in the market landscape. The company also provided insights into its third-quarter performance and future expectations.
Fortinet’s Chief Financial Officer, Keith Jensen, acknowledged the challenges the company faces, stating, “We continue to see increased deal scrutiny and longer sales cycles, which is constraining near-term results.” This reflects the company’s adaptation to changing market dynamics, which have resulted in more in-depth evaluations of business deals and extended sales processes.
Additionally, Fortinet noted that growth in some segments of its business has slowed as demand normalizes following two years of rapid expansion during the pandemic.
Here are key financial highlights for the third quarter of 2023:
Fortinet’s revenue reached $1.33 billion, marking a 16.1 percent increase compared to the same quarter in 2022.
Fortinet’s product revenue amounted to $465.9 million, a slight decrease of 0.6 percent compared to the third quarter of 2022.
Fortinet’s service revenue showed strong growth, totaling $868.7 million for the third quarter of 2023, a significant increase of 27.6 percent compared to the same quarter in 2022.
Fortinet’s total billings reached $1.49 billion for the third quarter of 2023, reflecting a 5.7 percent increase compared to the same quarter in 2022.
Fortinet’s Founder, Chairman, and Chief Executive Officer, Ken Xie, highlighted the company’s strategic approach to addressing evolving market conditions. He mentioned, “While the Secure Networking market is experiencing slower growth as product demand returns to normal levels following two years of elevated growth, we are leveraging our scale, go-to-market capabilities, and engineering expertise to focus our attention on the faster-growing SASE and Security Operations markets, in addition to continuing our focus on Secure Networking.”
For the upcoming fourth quarter of 2023, Fortinet provided the following expectations:
Fortinet said its revenue is anticipated to fall within the range of $1.380 billion to $1.440 billion.
Fortinet said its billings are expected to be in the range of $1.560 billion to $1.700 billion.
For the fiscal year 2023, Fortinet outlined its projections as follows:
Fortinet said its revenue is expected to range from $5.270 billion to $5.330 billion.
Fortinet said its service revenue is anticipated to fall between $3.355 billion to $3.375 billion.
Fortinet said its billings are projected to range from $6.095 billion to $6.235 billion.
Fortinet remains committed to navigating the evolving cybersecurity landscape by capitalizing on emerging growth opportunities and leveraging its expertise in firewall, SD-WAN, and its integrated FortiOS operating system. The company’s strategic focus on SASE, Security Operations, and Secure Networking positions it for continued success in the dynamic cybersecurity market.