Revenue and Financial Overview
in
2023 Non-GAAP Results
in
2021
2022
2023
Billings
(1)
Y/Y % Change
Revenue
Y/Y % Change
Product Revenue
Y/Y % Change
Service Revenue
Y/Y % Change
Gross Profit
(2)
Gross Margin (%) (2)
$4.181B $5.594B $6.400B
35.3% 33.8% 14.4%
$3.342B $4.417B $5.305B
28.8% 32.2% 20.1%
$1.255B $1.781B $1.927B
36.9% 41.9% 8.2%
$2.087B $2.637B $3.378B
24.4% 26.3% 28.1%
$2.59B $3.37B $4.11B
77.5%
76.3%
77.4%
Operating Income (2)(3)
$875.5M
$1.21B
$1.51B
Operating Margin (%) (2) (3)
26.2%
27.3%
28.4%
Net Income Attributable to Fortinet, Inc. (2)(3)(4)(5)(6)
Diluted Net Income per Share Attributable to
Fortinet, Inc. (2)(3)(4)(5)(6)(7)
$666.0M
$961.6M $1.29B
$0.80
$1.19
$1.63
Weighted Diluted Shares Used to Compute Net
Income per Share Attributable to Fortinet, Inc. (7)
835.3M
805.3M
788.2M
Notes
(1)
Billings is a non-GAAP measure that we define as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances
acquired from business combination(s) and adjustment due to adoption of new accounting standard during the period.
(2) Excludes stock-based compensation and amortization of acquired intangible assets.
(3) Excludes gain on IP and litigation-related matters.
NO GEWN 3
(4) Assumes an annual effective tax rate of 21%, 17% and 17% for 2021, 2022 and 2023, respectively.
(5)
(7)
Excludes a non-cash charge, primarily comprised of the impairment recognized on our equity method investment in 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.
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.
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