Fortinet (FTNT) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 revenue of $1.66B, up 17.3% year-over-year, and full-year revenue of $5.96B, up 12.3%.

• Q4 non-GAAP net income was $571.5M ($0.74/share); full-year non-GAAP net income $1.83B ($2.37/share).

• Record operating margins achieved in both Q4 and full year; Q4 non-GAAP operating margin 39.2%.

• Unified SASE and Security Operations ARR up 28% and 32% year-over-year, with strong SASE and AI-driven billings growth.

• Ranked #7 on Forbes Most Trusted Companies in America 2025, highest among cybersecurity firms.

Financial highlights

• Q4 2024: Product revenue $574M (+17.6%), service revenue $1.09B (+17.2%), total billings $2.00B (+7.4%).

• Full-year 2024: Product revenue $1.91B (-1%), service revenue $4.05B (+19.8%), total billings $6.53B (+2.1%).

• Q4 non-GAAP gross margin 81.9%, operating margin 39.2%; full-year non-GAAP gross margin 81.3%, operating margin 35.0%.

• Free cash flow for 2024 was $1.88B, with adjusted free cash flow at $2.21B.

• Deferred revenue at year-end was $6.36B, up from $6.01B in Q3.

Outlook and guidance

• FY2025: Revenue guidance $6.65B–$6.85B, service revenue $4.58B–$4.73B, billings $7.20B–$7.40B, non-GAAP operating margin 31–33%, non-GAAP EPS $2.41–$2.47.

• Q1 2025: Revenue expected $1.50B–$1.56B, billings $1.52B–$1.60B, non-GAAP EPS $0.52–$0.54.

• Linksys and Perception Point expected to add ~1% to billings/revenue growth and reduce operating margin by ~0.5%.

• Cash paid for taxes in 2025 expected at $525M–$575M; infrastructure investments $380M–$430M.