Fortinet, a global leader in broad, integrated and automated cybersecurity solutions, announced financial results for the fourth quarter and full year ended December 31, 2018.
“Our strong fourth quarter results drove a solid finish to 2018, demonstrating demand for our product and services and illustrating our ability to drive disciplined growth with solid margin improvement,” said Ken Xie, Founder, Chairman and Chief Executive Officer. “We are well-positioned to achieve another year of better than industry growth in 2019, driven by business momentum and strong customer demand for our broad, integrated, and automated security solutions across their entire network infrastructure.”
Financial Highlights for the Fourth Quarter of 2018
- Revenue: Total revenue was $507.0 million for the fourth quarter of 2018, an increase of 22% compared to $416.6 million in the same quarter of 2017.
- Product revenue was $200.8 million for the fourth quarter of 2018, an increase of 24% compared to $162.1 million in the same quarter of 2017.
- Service revenue was $306.2 million for the fourth quarter of 2018, an increase of 20% compared to $254.5 million in the same quarter of 2017.
- Billings: Total billings were $649.2 million for the fourth quarter of 2018, an increase of 22% compared to $534.0 million in the same quarter of 2017.
- Cash Flow and Free Cash Flow: In the fourth quarter of 2018, cash flow from operations was $180.2 million compared to $157.5 million in the same quarter of 2017. Free cash flow was $168.6 million during the fourth quarter of 2018, compared to $143.9 million in the same quarter of 2017.
- Share Repurchase: During the fourth quarter of 2018, Fortinet repurchased 1.3 million shares of its common stock for a total purchase price of $92.0 million. During the fourth quarter of 2017, Fortinet repurchased 7.9 million shares of its common stock for a total purchase price of $322.4 million.
Financial Highlights for the Full Year 2018
- Revenue: Total revenue was $1.80 billion for 2018, an increase of 20% compared to $1.49 billion in 2017.
- Product revenue was $674.4 million for 2018, an increase of 17% compared to $577.2 million in 2017.
- Service revenue was $1.13 billion for 2018, an increase of 23% compared to $917.7 million in 2017.
- Billings: Total billings were $2.15 billion for 2018, an increase of 20% compared to $1.80 billion in 2017.
- Deferred Revenue: Total deferred revenue was $1.69 billion as of December 31, 2018, an increase of 26% compared to $1.34 billion as of December 31, 2017.
- Cash Flow and Free Cash Flow: In 2018, cash flow from operations was $638.9 million, compared to $594.4 million in 2017. Free cash flow was $585.9 million in 2018, compared to $459.1 million in 2017.
- Share Repurchase: During 2018, Fortinet repurchased 3.8 million shares of its common stock for a total purchase price of $209.1 million. During 2017, Fortinet repurchased 11.2 million shares of its common stock for a total purchase price of $446.3 million.
For more information, visit: www.fortinet.com
