Revenue and Financial Overview slide image

Revenue and Financial Overview

in GAAP to Non-GAAP Reconciliations (Continued) ($ in millions) GAAP product gross profit Stock-based compensation Amortization of acquired intangible assets 2021 $767.3 2022 2023 $1,089.2 $1,163.7 1.7 1.7 1.8 5.7 7.8 7.1 Non-GAAP product gross profit Non-GAAP product gross margin $774.7 $1,098.7 $1,172.6 61.7% 61.7% 60.8% GAAP service gross profit Stock-based compensation 15.7 Amortization of acquired intangible assets 7.2 $1,791.9 $2,243.3 $2,903.9 23.3 7.8 Non-GAAP service gross profit Non-GAAP service gross margin GAAP total gross profit Stock-based compensation Amortization of acquired intangible assets 18.8 9.4 $1,814.8 $2,271.5 $2,935.0 86.9% 86.1% 86.9% $2,559.2 $3,332.5 $4,067.6 17.4 12.9 20.5 25.1 17.2 14.9 Non-GAAP total gross profit Non-GAAP gross margin GAAP research and development expense Stock-based compensation $2,589.5 $3,370.2 $4,107.6 77.5% 76.3% 77.4% $424.2 $512.4 $613.8 Non-GAAP research and development expense Non-GAAP research and development expense as a percentage of revenue GAAP sales and marketing expense Stock-based compensation Amortization of acquired intangible assets Non-GAAP sales and marketing expense Non-GAAP sales and marketing expense as a percentage of revenue (56.7) (64.2) (76.8) $367.5 $448.2 $537.0 11.0% 10.1% 10.1% $1,345.7 $1,686.1 $2,006.0 (110.0) (105.0) (111.8) (5.6) (6.1) (4.0) $1,230.1 $1,575.0 $1,890.2 36.8% 35.7% 35.6% © Fortinet Inc. All Rights Reserved. | 30
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