Revenue and Financial Overview slide image

Revenue and Financial Overview

in GAAP to Non-GAAP Reconciliations ($ in millions) Total revenue Add: Change in deferred revenue Less: Deferred revenue balance acquired in business combination Less: Adjustment due to adoption of ASU 2021-08 (1) Total billings GAAP Cash Flow from Operations Less: Purchases of Property and Equipment Free Cash Flow (2) Add: Real Estate Related Add Backs Notes (1) (2) (3) Adjusted Free Cash Flow (3) 2021 $3,342.2 2022 $4,417.4 $5,304.8 2023 847.6 (4.1) 1,187.4 1,094.7 (10.8) (4.3) $4,181.4 $5,594.0 $6,399.5 $1,499.7 $1,730.6 $1,935.5 (295.9) (281.2) (204.1) 1,203.8 1,449.4 232.0 $1,435.8 1,731.4 195.1 126.9 $1,644.5 $1,858.3 We early adopted ASU 2021-08 on a retrospective basis and effective for us beginning on January 1, 2021. The adoption of ASU 2021-08 resulted in a $4.3 million adjustment attributable to the acquisition of Alaxala in 2021, as a result of the revised measurement of deferred revenue for acquisition. Free Cash Flow is a non-GAAP measure that we define as net cash provided by operating activities minus purchases of property and equipment. Adjusted Free Cash Flow is a non-GAAP measure that we define as Free Cash Flow plus cash payments associated with real estate purchases and cash payments related to HQ Construction. © Fortinet Inc. All Rights Reserved. | 29
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