Fortinet, Inc. has recently released its 10-K report, providing a comprehensive overview of its business and financial performance. The company, headquartered in Sunnyvale, California, is a prominent global provider of cybersecurity and networking solutions. With a focus on securing people, devices, and data, Fortinet offers a wide range of products and services, including hardware and software licenses for security and networking functions, secure switching solutions, wireless networking solutions, endpoint protection, multi-factor authentication, and more. It caters to various industries, including telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare.
In 2023, Fortinet reported total revenue of $5.30 billion, marking a 20% increase from $4.42 billion in 2022. The company's product revenue reached $1.93 billion, reflecting an 8% increase from $1.78 billion in 2022, while service revenue surged to $3.38 billion, representing a substantial 28% increase from $2.64 billion in 2022. Additionally, the total gross profit for 2023 stood at $4.07 billion, marking a 22% increase from $3.33 billion in 2022. The company's operating income also saw a significant rise, reaching $1.24 billion in 2023, a 28% increase from $969.6 million in 2022. As of December 31, 2023, Fortinet held $2.44 billion in cash, cash equivalents, investments, and marketable equity securities, experiencing an 8% increase from the previous year.
Fortinet's revenue growth was primarily driven by service revenue, with the Americas, EMEA, and APAC regions contributing 41%, 39%, and 20% of the total revenue, respectively. Notably, service revenue growth accelerated over the past three years, reaching 28% in 2023, primarily driven by the strength of the company's security subscription revenue, which grew by 33%. The report also highlighted the impact of macroeconomic developments, emphasizing that the company's performance is influenced by worldwide economic and geopolitical conditions, including factors such as inflation, interest rates, and fluctuations in foreign exchange rates, which may impact customer behavior and sales productivity.
Following these announcements, the company's shares moved 1.1%, and are now trading at a price of $68.4. Check out the company's full 10-K submission here.
