Fortinet said total revenue rose $173.5 million (13%) year over year for the 3 months ended September 30, 2024. Product revenue increased $8.0 million (2%), and service revenue rose $165.5 million (19%).

10-QQuarterly reportFiled Nov 8, 2024Period of report Sep 30, 2024Summary published (UTC) Oct 23, 2026

Key points

AI summary

Fortinet said total revenue rose $173.5 million (13%) year over year for the 3 months ended September 30, 2024. Product revenue increased $8.0 million (2%), and service revenue rose $165.5 million (19%).
The company said operating income for the 3 months ended September 30, 2024 rose 55% from the same period last year to $470.9 million, versus $303.2 million a year earlier, and operating margin was 31.2% (22.7% in the prior-year period). The company explained that excluding the acquisitions in the current quarter, operating margin was 33.6%.
The company said it recognized a gain on bargain purchase of $106.3 million related to its acquisition of Lacework for the 3 and 9 months ended September 30, 2024. It said net cash used in investing activities for the 9 months included $247.0 million, net of cash acquired, for the acquisitions of Lacework and Next DLP.
The company said its board of directors approved a $1.0 billion increase in the authorized share repurchase amount in October 2024, bringing the total to $8.25 billion, and extended the program through February 28, 2026. It said approximately $2.03 billion remained available as of November 8, 2024. The company also said it estimates capital expenditures of approximately $100.0 million to $120.0 million for Q4 2024.

Key figures

Quarter ended September 30, 2024

Revenue: $1.5B
Operating income: $471M
Net income: $540M
EPS: $0.70
Gross profit: $1.2B

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Q3 2024 Revenue and Service Revenue Rise

Fortinet said total revenue rose $173.5 million (13%) year over year for the 3 months ended September 30, 2024. Product revenue increased $8.0 million (2%), and service revenue rose $165.5 million (19%).

Source · Based on the MD&A text of the filing

Q3 Operating Income of $470.9 million, Operating Margin of 31.2%

The company said operating income for the 3 months ended September 30, 2024 rose 55% from the same period last year to $470.9 million, versus $303.2 million a year earlier, and operating margin was 31.2% (22.7% in the prior-year period). The company explained that excluding the acquisitions in the current quarter, operating margin was 33.6%.

Source · Based on the MD&A text of the filing

Gain on Bargain Purchase Related to Lacework Acquisition

The company said it recognized a gain on bargain purchase of $106.3 million related to its acquisition of Lacework for the 3 and 9 months ended September 30, 2024. It said net cash used in investing activities for the 9 months included $247.0 million, net of cash acquired, for the acquisitions of Lacework and Next DLP.

Source · Based on the MD&A text of the filing

Share Repurchase Authorization and Q4 Capex Estimate

The company said its board of directors approved a $1.0 billion increase in the authorized share repurchase amount in October 2024, bringing the total to $8.25 billion, and extended the program through February 28, 2026. It said approximately $2.03 billion remained available as of November 8, 2024. The company also said it estimates capital expenditures of approximately $100.0 million to $120.0 million for Q4 2024.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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