Revenue and Financial Overview slide image

Revenue and Financial Overview

in GAAP to Non-GAAP Reconciliations ($ in millions) Total revenue Q2'23 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q3'23 Q4'23 $963.6 $954.8 $1,030.1 $1,149.5 $1,283.0 $1,262.3 $1,292.8 $1,334.6 $1,415.1 346.5 205.0 274.1 261.5 446.8 240.6 247.7 156.7 449.7 (10.8) $1,305.8 $1,159.8 $1,304.2 $1,411.0 $1,719.0 $1,502.9 $1,540.5 $1,491.3 $1,864.8 Add: Change in deferred revenue Less: Deferred revenue balance acquired in business combination (1) Less: ASC 606 transition amount related to deferred revenue (4.3) Total billings GAAP Cash Flow from Operations Less: Purchases of Property and Equipment Free Cash Flow (2) Add: Real Estate Related Add Backs Adjusted Free Cash Flow (3) 92.7 $366.2 283.5 21.2 $304.7 $366.8 $396.1 $323.4 $483.0 $528.1 $677.5 $515.1 $551.2 $191.7 (151.3) (122.6) (39.9) (87.8) (30.9) (30.3) (76.8) (70.1) (26.9) 215.5 273.5 395.2 497.2 647.2 129.0 68.6 12.6 14.9 $344.5 $463.8 $509.8 $662.1 $497.7 $530.8 $167.7 438.3 59.4 481.1 49.7 164.8 2.9 Notes (1) (2) (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. | 25
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