Fortinet, a leader in cybersecurity, reported a total revenue of $1.35 billion for the first quarter of 2024, marking a 7% increase from the $1.26 billion in the same period last year. The growth was primarily driven by a 24% increase in service revenue, which reached $944.4 million. However, product revenue saw an 18% decrease to $408.9 million, attributed to a decline in hardware revenue, pricing adjustments, and macroeconomic factors. The company's total gross profit rose by 10% to $1.05 billion, with a total gross margin improvement of 1.9 percentage points to 77.5%. Operating income also saw a significant increase of 17% to $321.2 million. Geographically, revenue from the Americas and EMEA regions grew by 6% and 13%, respectively, while APAC experienced a slight decrease of 1%. Fortinet's effective tax rate for the quarter was...Show More

Fortinet, a leader in cybersecurity, reported a total revenue of $1.35 billion for the first quarter of 2024, marking a 7% increase from the $1.26 billion in the same period last year. The growth was primarily driven by a 24% increase in service revenue, which reached $944.4 million. However, product revenue saw an 18% decrease to $408.9 million, attributed to a decline in hardware revenue, pricing adjustments, and macroeconomic factors. The company's total gross profit rose by 10% to $1.05 billion, with a total gross margin improvement of 1.9 percentage points to 77.5%. Operating income also saw a significant increase of 17% to $321.2 million. Geographically, revenue from the Americas and EMEA regions grew by 6% and 13%, respectively, while APAC experienced a slight decrease of 1%. Fortinet's effective tax rate for the quarter was 11%, up from 7% in the previous year, influenced by a $24.0 million tax benefit from the FDII deduction and $18.2 million in excess tax benefits from stock-based compensation expense. The company's cash, cash equivalents, and investments totaled $3.02 billion as of March 31, 2024. Looking ahead, Fortinet anticipates continued growth and market share gains, with a focus on secure networking, unified SASE, and AI-driven security operations. The company expects to face challenges related to macroeconomic conditions, supply chain constraints, and competitive pressures but remains committed to investing in research and development, sales, and marketing to drive future growth.