Shares in Fortinet Inc. rose in late trading after the cybersecurity company beat estimates in its latest quarterly earnings report.
For the quarter ending March 31, Fortinet reported non-generally accepted accounting principles net income of $155.1 million or 94 cents per share, up from $164.2 million or 81 cents per share in the same quarter of 2021. Revenue came in at $954.8 million in the quarter up 34.4% year-over-year.
Analysts had expected a non-GAAP EPS of 80 cents per share on revenue of $885 million.
The figures for Fortinet were up across the board. Product revenue grew to $371 million in the quarter, up 54.1% year-over-year, while service revenue came in a $583.3 million, up 24.3% compared to the same quarter last year. Total billings was $1.16 billion, up 36.4% and deferred revenue as of the end of Match was $3.66 billion – up 33.2%.
Bookings were $1.28 billion in the quarter, up 49.9% from $851.6 million in the first quarter of 2021, with a backlog of $278.3 million.
“We delivered better than expected first-quarter revenue growth of 34% year over year, driven by record quarterly product revenue growth of 54% year-over-year,” Ken Xie, founder, chairman and chief executive officer of Fortinet (pictured), said in a statement. “The outstanding results we achieved reflect exceptionally strong demand across our broad portfolio of cybersecurity and networking solutions as our teams skillfully navigated the challenging supply chain environment.”
Looking forward, Fortinet predicted a non-GAAP EPS of $1.05 and $1.10 in its second quarter on revenue of $1.005 billion to $1.035 billion. Analysts were predicting an EPS of $1.13 on revenue of $1.01 billion.
For the full fiscal year 2022, Fortinet is now predicting non-GAAP EPS of $5 to $5.15 on revenue of $4.35 billion to $4.4 billion.
After releasing its quarterly data, Xie said that Fortinet sees operational technology as its main growth opportunity in the company’s earnings call.
“We definitely see OT as a bigger market going forward, probably bigger than SD-WAN,” Bank Info Security reported Xie saying on the call. “The growth is very very strong. We do see a lot of potential and we also have invested a lot in this area to meet the demand.”
Despite slightly missing on its outlook, investors still liked the numbers. Shares in Fortinet rose almost 4% after the bell.
Xie spoke (below) with Lisa Martin, host of theCUBE, SiliconANGLE Media’s livestreaming studio, in September, on a partnership with Linksys Inc. that underscored the current state of cybersecurity and the shift to remote working.
“Today’s network can just give you the connectivity and speed,” Xie said in the interview. “With security-driven networking, you can make a networking decision based on the security function, based on different applications, content, users, devices or locations. We see that as a huge demand right now.”