Fortinet, a global leader in cybersecurity, reported an 11% increase in total revenue to $1.43 billion for the quarter ended June 30, 2024, compared to $1.29 billion in the same period last year. The company's six-month revenue also rose by 9% to $2.79 billion. Despite a decrease in product revenue by 4% and 12% for the three and six months respectively, service revenue saw a significant increase of 20% and 22% for the same periods. Operating income surged by 57% to $437.2 million for the quarter and by 37% to $758.4 million for the six months, with operating margins expanding to 30.5% and 27.2% respectively. Geographically, revenue growth was reported across all regions with the Americas and EMEA contributing the most. Fortinet's gross margin improved, driven by a shift in revenue mix towards higher...Show More

Fortinet, a global leader in cybersecurity, reported an 11% increase in total revenue to $1.43 billion for the quarter ended June 30, 2024, compared to $1.29 billion in the same period last year. The company's six-month revenue also rose by 9% to $2.79 billion. Despite a decrease in product revenue by 4% and 12% for the three and six months respectively, service revenue saw a significant increase of 20% and 22% for the same periods. Operating income surged by 57% to $437.2 million for the quarter and by 37% to $758.4 million for the six months, with operating margins expanding to 30.5% and 27.2% respectively. Geographically, revenue growth was reported across all regions with the Americas and EMEA contributing the most. Fortinet's gross margin improved, driven by a shift in revenue mix towards higher margin service revenue and increased service gross margin. The company completed two acquisitions, Lacework, Inc. and Next DLP Holdings Limited, to enhance its cloud security and data loss protection offerings. Fortinet also invested in real property in Canada and California. Looking forward, Fortinet anticipates continued growth and market share gains, with a focus on secure networking, unified SASE, and AI-driven security operations. The company expects service revenue to continue growing, driven by unified SASE and SecOps offerings, although at a moderated pace for the remainder of the year.