Revenue and Financial Overview slide image

Revenue and Financial Overview

Q4 2023 Non-GAAP Results Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Gross Profit (1) Gross Margin (1) Operating Income (1)(2) Operating Margin (1)(2) Net Income attributable to Fortinet, Inc. (1)(2)(3)(4)(5) Diluted Net Income per Share Attributable to Fortinet, Inc. (1)(2)(3)(4)(5)(6) $0.25 $0.19 $744.4M $710.2M $788.5M $875.5M $996.0M $963.6M $1.01B 77.3% 74.4% 76.5% 76.2% 77.6% 76.3% 77.9% $274.7M $210.2M $255.4M $324.9M $417.6M $334.0M $348.1M 28.5% 22.0% 24.8% 28.3% 32.5% 26.5% 26.9% $205.8M $155.1M $194.1M $262.7M $349.7M $269.7M $300.4M $0.24 $0.34 $0.38 $1.03B $1.11B 76.9% 78.5% $371.4M $453.5M 27.8% 32.0% $323.5M $392.0M $0.33 $0.44 $0.41 $0.51 Weighted Diluted Shares Used to Compute Net Income per Share Attributable to Fortinet, Inc. (6) 835.0M 820.8M 810.1M 798.6M 791.8M 793.4M 795.9M 791.2M 772.3M Deferred Revenue $3.45B $3.66B $3.93B $4.19B $4.64B $4.88B $5.13B $5.29B $5.74B Cash, Investments and Marketable Equity Securities(7 (7) Cash Paid for Stock Repurchases $2.99B $2.50B $1.94B $1.81B $2.26B $2.89B $3.32B $3.17B $2.44B $571.8M $691.2M $800.0M $500.0M $604.3M $896.2M Days Sales Outstanding 75 75 80 75 89 78 75 68 89 Inventory Turns 2.7 3.5 3.1 3.4 2.8 2.3 1.6 1.2 1.3 Headcount 10,195 10,860 11,508 12,091 12,595 13,202 13,677 13,618 13,568 Notes NOG FW NE : (1) Excludes stock-based compensation and amortization of acquired intangible assets. (2) Excludes gain on intellectual property ("IP"). (4) (5) (3) Assumes a quarterly effective tax rate of 21% for Q4' 21. Assumes a quarterly effective tax rate of 17% for 2022 and 2023. Excludes a non-cash charge, primarily comprised of the impairment recognized on our equity method investment in Linksys Holdings Inc. ("Linksys") and other intervening events related to the establishment of a valuation allowance against Linksys deferred tax assets. Excludes the adjustments attributable to non-controlling interests. (6) All share and per share amounts presented herein have been retroactively adjusted to reflect the five-for-one forward stock split which was effective June 22, 2022. Excludes investments in privately held companies, which are recorded in other assets. W © Fortinet Inc. All Rights Reserved. | 11
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