Fortinet billing reflects cyber security customers are NOT shifting to rivals?

Fortinet has announced financial result saying it expects second-quarter revenue between $1.375 billion and $1.435 billion.
Fortinet product revenue detailsFortinet posted revenue of $1.35 billion in the first quarter, up 7.2 percent. Fortinet’s product revenue was $408.9 million for the first quarter of 2024, a decrease of 18.3 percent. Fortinet’s service revenue was $944 million, up 24 percent.

Fortinet has generated sales revenue of $557 million (up 6.4 percent) from Americas, $539.4 million (up 12.8 percent), EMEA and $256.9 million (down 1.4 percent) from the Asia Pacific.

It reported billings of $1.41 billion, down 6.4 percent, in the first quarter. Sunnyvale, California-based Fortinet expects second-quarter billings between $1.49 billion and $1.55 billion.

Fortinet expects revenue in the range of $5.745 billion to $5.845 billion; service revenue in the range of $3.940 billion to $3.990 billion and billings in the range of $6.400 billion to $6.600 billion for the fiscal year 2024.

Fortinet reported revenue of $5.3 billion and billings of $6.4 billion in fiscal 2023.

Fortinet’s rivals, such as Palo Alto Networks and Crowdstrike, have gained market share in the past year as enterprise clients have been adopting more efficient and less expensive consolidated cybersecurity platforms that contain tools for a variety of applications, Reuters news report said.
Fortinet firewall shipment
Fortinet says over 700,000 enterprises, service providers, and government organizations around the world trust Fortinet to secure their operations. 73 percent of Fortune 100 and 69 percent of Global 2000 use Fortinet solutions.

“We remain focused on investing in the faster-growing unified SASE and Security Operations markets, which combined accounted for one-third of first quarter billings. We gained Secure Networking market share leveraging advanced and differentiated FortiOS and FortiASIC technologies, with an increasing number of large customers adopting our secure networking solutions,” Ken Xie, Founder, Chairman and CEO of Fortinet, said.

Last month, attendance at Fortinet’s annual Accelerate conference increased 25 percent to nearly 5,000 participants. Fortinet’s Unified SASE and new AI offerings dominated the discussions with partners and customers.

For the first quarter, Unified SASE accounted for 24 percent of total billings. Fortinet plans to run attractive promotions in 2024 to introduce customers and prospects to Unified SASE solutions. Fortinet’s SecOps solutions, which are better integrated and automated together than competitors, accounted for 9 percent of total billings.

Fortinet said it has developed all Unified SASE functionality into one single operating system, FortiOS. This includes a full networking and security stack comprised of ZTNA, Secure Web Gateway, CASB, and our market leading SD-WAN and Firewall technologies providing content, application, user, device and location awareness to reduce attacks.

Fortinet said its Unified SASE solution can be deployed on-premise, in the cloud or both. Peer solutions send traffic to a cloud-based PoP, increasing security risks and latency and is less efficient.Fortinet’s Unified SASE offers both traditional software endpoint agents and hardware agents such as FortiWiFi access points and FortiSwitch for customers, with easier deployment and more broad use cases, such as Unified SASE for OT and IoT devices.

Initially launched as a part of FortiSIEM and FortiSOAR, the GenAI technology, FortiAI, is being deployed across both networking and security products. Fortinet today announced the 4 industry’s first IoT Security Generative AI Assistant. Customers can ask FortiAI to help in 30+ languages.

Baburajan Kizhakedath

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