The long term story remains intact – it is currently fully priced to add more.
Fortinet released Q4-23, earnings after market yesterday.
While the results and guidance were good and met expectations, the 10% pop from $67 yesterday is overdone. In the previous quarter, Fortinet under performed and the stock was pummeled 25% – last evening’s reaction was more of a sigh of relief that results met expectations. As you can see below, there’s nothing extraordinary.
- Q4-23
- Revenue of $1.42B (+10.9% Y/Y) beats by $10M.
- Billings1: Total billings were $1.86 billion for the fourth quarter of 2023, an increase of 8.5% compared to $1.72 billion for the same quarter of 2022.
- For Q1-2024 Everything is in line with expectations and forecasted analysts estimates.
- Revenue $1.300 billion to $1.360 billion vs $1.38B consensus – In line.
- Billings in the range of $1.390 billion to $1.450 billion
- Non-GAAP gross margin in the range of 76.5% to 77.5% – In line
- Non-GAAP operating margin in the range of 25.5% to 26.5% – In line
- For 2024, Fortinet : These are also in line with previous guidance and forecasts.
- Revenue $5.715 billion to $5.815 billion vs $5.94B consensus – Just over 10% growth.
- Service revenue in the range of $3.920 billion to $3.970 billion
- Billings in the range of $6.400 billion to $6.600 billion
- Non-GAAP gross margin in the range of 76.0% to 78.0%
- Non-GAAP operating margin in the range of 25.5% to 27.5%
- Service Revenue growth was impressive and the highlight of the quarter. Service revenue was $927.0 million for the fourth quarter of 2023, an increase of 24.8% compared to $742.9 million YoY.