Fortinet’s stock soared in late trading after the cybersecurity firm’s latest quarterly earnings report topped expectations.
Fortinet announced a profit before expenditures such as stock compensation of $155.1 million, or 94 cents per share, for the quarter ended March 31, up from $164.2 million, or 81 cents per share, in the same quarter in 2021.
Revenue increased by 34% to $954.8 million. On $885 million in revenue, analysts had predicted an adjusted profit of 80 cents per share.
The company’s numbers were up across the board.
Record quarterly product revenue growth
Product sales increased by 54% year over year to $371 million, while service income increased by 24% to $583.3 million. Bookings increased by 50% year over year to $1.28 billion, with a $278.3 million backlog.
Ken Xie, Fortinet’s founder, and CEO, said the company produced better-than-expected Q1 growth of 34% year-over-year, led by record quarterly product revenue growth of 54% year-over-year.
He cited how the staff expertly handled the demanding supply chain environment, which generated great results reflecting high demand across its comprehensive range of cybersecurity and networking products.
Projections for Q2 and the entire year
In Q2, Fortinet expects an adjusted profit of $1.05 to $1.10 on revenue of $1.005 billion to $1.035 billion. Analysts expected a profit of $1.13 per share on $1.01 billion in revenue. Fortinet now expects an adjusted profit of $5 to $5.15 per share on revenue of $4.35 billion to $4.4 billion for 2022.
During the company’s earnings call following its quarterly statistics, Xie stated that operational technology is the company’s key development prospect. Investors liked the numbers, even though the forecast was slightly off. Following the bell, Fortinet’s stock jumped about 4%.
In September, Xie discussed a collaboration with Linksys on theCUBE, a live-streaming studio run by SiliconANGLE Media, highlighting the current status of cybersecurity and the move to hybrid working.