Fortinet, a cybersecurity firm, has raised its annual revenue forecast as companies worldwide ramp up their investments in protecting operations from cyberattacks. The company now anticipates generating revenue between $1.45 billion to $1.51 billion in the third quarter and aims for a total revenue of $5.8 billion to $5.9 billion in 2024.
In the second quarter ending June 30, Fortinet reported revenue of $1.43 billion, marking an 11 percent increase year-over-year. The company’s operating margins stood at 35 percent. Breaking down the regional performance, Fortinet saw sales revenue of $595.3 million (up 10.9 percent) from the Americas, $565.2 million (up 11.5 percent) from EMEA, and $273.8 million (up 10 percent) from the Asia Pacific.
Revenue Breakdown:
Americas: 41.5 percent of total sales
EMEA: 39.4 percent of total sales
Asia Pacific: 19.1 percent of total sales
Product and Service Revenue:
Product Revenue: $451.9 million, a decrease of 4.4 percent from the previous year
Service Revenue: $982.4 million, an increase of 19.8 percent from the previous year
Total billings remained flat at $1.54 billion for the second quarter of 2024. AI-driven SecOps, a significant growth area for Fortinet, accounted for 10 percent of total billings, an increase of 1 percentage point.
Deferred revenue reached $5.90 billion as of June 30, 2024, reflecting a 15 percent increase from $5.13 billion the previous year. Fortinet expects capital expenditures between $320 million to $360 million in 2024, up from $204 million in 2023.
Fortinet’s Secure Networking customers are increasingly recognizing the superior performance and security effectiveness of the company’s FortiOS and FortiASIC technologies, which offer 5 to 10 times better performance than competitors while lowering total cost of ownership. Unified SASE accounted for 23 percent of total billings in the second quarter, and the company expects its differentiated offering to lead the SASE market.
The rise in sophisticated data theft and hacking incidents, driven by AI-powered tools, has compelled governments and companies to invest heavily in cybersecurity solutions. This trend has boosted demand for Fortinet’s cybersecurity software alongside competitors like Palo Alto Networks and Crowdstrike Holdings.
In recent strategic moves, Fortinet acquired Next DLP, an insider risk and data protection platform, and completed the acquisition of Lacework, a cloud security and cloud-native application protection platform. These acquisitions are set to expand Fortinet’s total addressable market by $10 billion and enhance its comprehensive, AI-driven cloud security offerings.
Fortinet secures operations for over 755,000 enterprises, service providers, and government organizations globally.
