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Fortinet, Inc. is a global leader in cybersecurity, offering integrated and automated solutions that provide broad visibility and segmentation of the digital attack surface. The company's primary platform, the Fortinet Security Fabric, delivers automated protection, detection, and response capabilities, catering to a diverse range of customers including large enterprises, communication service providers, government organizations, and small to medium-sized enterprises . Fortinet generates revenue from product sales, primarily through secure networking product lines, and service offerings, which include security subscriptions and technical support .
- Service Offerings - Includes security subscriptions and technical support, driving significant growth through the strength of security subscription services.
- Secure Networking Solutions - Provides high-performance physical and virtual machine appliances designed to secure network infrastructures.
- Unified SASE - Offers a comprehensive approach to secure access service edge, integrating networking and security functions.
- SecOps Technologies - Delivers solutions for security operations, enhancing detection and response capabilities.
- Cloud Security Solutions - Offers protection for cloud environments, ensuring secure cloud adoption and management.
- Professional Services and Training - Provides expert consulting and training services to enhance cybersecurity strategies and skills.
| Name | Position | External Roles | Short Bio | Start Date |
|---|---|---|---|---|
Ken Xie ExecutiveBoard | CEO and Chairman of the Board | Board Member at TeleNav, Inc. | Co-founder of Fortinet with over 25 years of experience in networking and security industries. Instrumental in Fortinet's growth as a global cybersecurity leader. | October 2000 |
Christiane Ohlgart Executive | CFO (Effective May 15, 2025) | None | Joined Fortinet in 2016 as VP of Finance, later served as Chief Accounting Officer. Appointed CFO effective May 15, 2025, following Keith Jensen's retirement. | May 15, 2025 |
John Whittle Executive | COO and Corporate Secretary | None | Joined Fortinet in 2006 as General Counsel. Held various roles, including EVP of Corporate Development and Chief Legal Officer, before becoming COO in January 2024. | January 2024 |
Keith Jensen Executive | CFO (Retiring May 15, 2025) | None | Joined Fortinet in 2014, served as Chief Accounting Officer and Interim CFO before becoming CFO in 2018. Announced retirement effective May 15, 2025. | May 2018 |
Admiral James Stavridis Board | Director | Managing Director at Carlyle Group; Chair of Rockefeller Foundation | Retired 4-star Admiral and former Supreme Allied Commander of NATO. Expert in cybersecurity and global affairs. | October 2021 |
Janet Napolitano Board | Director | Board Member at Vir Biotechnology, Zoom; Trustee at RAND Corporation | Former Secretary of Homeland Security and President of the University of California. Founder of the Center for Security in Politics at UC Berkeley. | November 2024 |
Jean Hu Board | Director | EVP and CFO of AMD | Extensive experience in finance and technology. Currently EVP and CFO of AMD. | October 2019 |
Judith Sim Board | Lead Independent Director | None | Former Chief Marketing Officer at Oracle. Appointed Lead Independent Director in April 2024. | June 2015 |
Kenneth A. Goldman Board | Director | President of Hillspire LLC; Board Member at GoPro, RingCentral, Zuora, VRF | Extensive experience in finance and governance. Former CFO of Yahoo and currently serves on multiple boards and as President of Hillspire LLC. | October 2020 |
Mary Agnes Wilderotter Board | Director | Chair and CEO of Wilderotter Vineyards; Board Member at Costco, DocuSign, etc. | Former CEO of Frontier Communications. Holds multiple board positions and leadership roles, including Chair of DocuSign and CEO of Wilderotter Vineyards. | April 2024 |
Ming Hsieh Board | Director | Chairman and CEO of Fulgent Therapeutics Inc. | Founder of Cogent, Inc., and former President of 3M Cogent. Currently leads Fulgent Therapeutics. | April 2013 |
William H. Neukom Board | Director | Founder and CEO of World Justice Project; Lecturer at Stanford Law School | Former lead lawyer for Microsoft and CEO of the San Francisco Giants. Founder of the World Justice Project and lecturer at Stanford Law School. | January 2013 |
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The growth in OT billings was 19% this quarter; given the competitive landscape in OT security, how sustainable is this growth, and what strategies are you implementing to maintain or increase it?
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With mid-range and high-end hardware appliance shipments remaining stable but not showing significant growth, how do you plan to drive growth in these segments, and are you facing any challenges such as market saturation or increased competition?
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As larger vendors focus on discounting, bundling, and vendor financing, how is Fortinet addressing potential pricing pressures, and what impact do you expect this to have on your margins and revenue growth?
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Considering that some customers are hesitant to commit to multi-year deals without financing, what steps are you taking to provide financing solutions, and how might this affect your ability to secure longer-term contracts and predict revenue?
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You aim to become the #1 leader in SASE in the next few years; what challenges do you anticipate in displacing established competitors, and how will you differentiate your Sovereign SASE offerings to capture highly regulated vertical markets?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Aruba Networks, Inc. | The company operates in extremely competitive markets characterized by rapid technological change. Competitors include those with greater financial, technical, marketing, and distribution resources, which may lead to competitive pressures such as price reductions or the addition of incremental features to products. |
The company faces competition from entities with broader product offerings and established relationships, which may discourage customers from purchasing its products. | |
Some competitors have significantly better brand recognition and broader product lines, allowing them to withstand market downturns better. | |
Certain competitors focus on delivering security services from the cloud, which may disrupt traditional markets and increase competition. | |
The company competes with others that may introduce products with superior performance or lower costs, potentially impacting market share. | |
Huawei Technologies Co., Ltd. | Competitors may leverage their relationships or incorporate functionality into existing products to discourage customers from switching. |
Larger competitors often have broader product lines and market focus, making them less susceptible to downturns in specific markets. | |
The company competes with entities that may bundle products and services, potentially impacting standalone product sales. | |
SonicWALL, Inc. | Smaller competitors specializing in single security threats may deliver specialized products to the market more quickly. |
Sophos Group Plc | Competitors may develop products or services that achieve greater market acceptance, disrupting the company's market position. |
VMware, Inc. | The competitive landscape includes companies with established customer bases and broader distribution networks. |
Certain competitors focus on cloud-based security services, which may challenge traditional product offerings. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Distributor A | Distributes Fortinet’s products and services globally | All | 29% of 2024 revenue (≈$1,727.2M = 29% of $5,955.8M ) and 31% of 2024 net A/R (≈$453.7M = 31% of $1,463.4M ). |
Distributor B | Distributes Fortinet’s products and services globally | All | 15% of 2024 revenue (≈$893.4M = 15% of $5,955.8M ) and 14% of 2024 net A/R (≈$204.9M = 14% of $1,463.4M ). |
Distributor C | Distributes Fortinet’s products and services globally | All | 13% of 2024 revenue (≈$774.3M = 13% of $5,955.8M ) and 10% of 2024 net A/R (≈$146.3M = 10% of $1,463.4M ). |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Perception Point | 2025 | Fortinet acquired Perception Point to enhance its secure portfolio by extending advanced e-mail and collaboration security across the modern workspace. No specific deal value was disclosed, but the acquisition is expected to boost first-quarter billings and full‐year revenue growth while slightly reducing the operating margin. |
Next DLP Holdings Limited | 2024 | Completed on August 5, 2024, this acquisition cost approximately $105.0 million in cash and aimed to strengthen Fortinet's position in both standalone enterprise DLP and integrated DLP within its SASE offerings. The deal included significant allocations to goodwill and intangible assets, contributing modest revenue growth while impacting gross and operating margins. |
Lacework Inc. | 2024 | Completed on August 1, 2024 for $152.3 million in cash, the acquisition of Lacework Inc. brings its Cloud-Native Application Protection Platform (CNAPP) into Fortinet’s portfolio, forming a comprehensive AI-driven cloud security solution. The deal also involved recognition of deferred tax assets and a gain on bargain purchase, with detailed allocations to various tangible and intangible assets. |
Alaxala Networks Corporation | 2022 | Fortinet achieved full ownership of Alaxala Networks Corporation by initially acquiring 75% in 2021 for $64.2 million in cash and then acquiring the remaining 25% in 2022 for $13.5 million in cash. This strategic move enhanced Fortinet's secure switching solutions integrated with its Security Fabric and contributed modest revenue growth, with the purchase price allocated to goodwill and other intangible assets. |
Recent developments and announcements about FTNT.
Earnings
New Earnings (Q4 2024)
·Feb 6, 2025, 11:53 PMView full earnings summary →Fortinet posted 18% Q4 product revenue growth but guides ~10% for FY25. While acquiring Linksys adds 25M+ home users and expands potential in consumer markets, a weaker Q1 2025 billings outlook raises questions on sustaining momentum.