Fortinet Files Q3 2024 10-Q with Financial Details

TL;DR

Fortinet's Q3 2024 10-Q is in. Check financials for product & service segments.

AI Summary

Fortinet, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance across product and service segments for the third quarter and year-to-date periods of 2024 and 2023. Key financial data and balance sheet information as of June 30, 2024, are also included.

Why It Matters

This filing provides investors with a detailed look at Fortinet's financial health and operational performance for the third quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 2024-09-30 — End of Fiscal Quarter (The period covered by the 10-Q filing.)
• 2024-11-08 — Filing Date (The date Fortinet submitted this 10-Q to the SEC.)

Key Players & Entities

• Fortinet, Inc. (company) — Filer of the 10-Q
• 2024-09-30 (date) — End of reporting period
• 2024-11-08 (date) — Filing date
• 909 KIFER ROAD, SUNNYVALE, CA 94086 (address) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 Par Value FTNT The Nasdaq Stock Market

Filing Documents

• ftnt-20240930.htm (10-Q) — 1964KB
• ftnt-ex311_20240930x10q.htm (EX-31.1) — 10KB
• ftnt-ex312_20240930x10q.htm (EX-31.2) — 10KB
• ftnt-ex321_20240930x10q.htm (EX-32.1) — 10KB
• 0001262039-24-000043.txt ( ) — 9375KB
• ftnt-20240930.xsd (EX-101.SCH) — 48KB
• ftnt-20240930_cal.xml (EX-101.CAL) — 84KB
• ftnt-20240930_def.xml (EX-101.DEF) — 315KB
• ftnt-20240930_lab.xml (EX-101.LAB) — 738KB
• ftnt-20240930_pre.xml (EX-101.PRE) — 531KB
• ftnt-20240930_htm.xml (XML) — 1455KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 3 Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Stockholders' Equity (Deficit) for the Three and Nine Months Ended September 30, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 8 Notes to Condensed Consolidated Financial Statements 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 43

Controls and Procedures

Item 4. Controls and Procedures 44

—OTHER INFORMATION

PART II—OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities 80

Other Information

Item 5. Other Information 80

Exhibits

Item 6. Exhibits 81 Exhibit Index 81

Signatures

Signatures 82 Summary of Risk Factors Our business is subject to numerous risks and uncertainties, including those described in Part II, Item 1A, "Risk Factors" in this Quarterly Report on Form 10-Q. You should carefully consider these risks and uncertainties when investing in our common stock. Some of the principal risks and uncertainties include: Our operating results are likely to vary significantly and be unpredictable. Adverse economic conditions, such as a possible economic downturn or recession, and possible impacts of inflation or stagflation, increasing or decreasing interest rates, changes in government spending or regulation or reduced information technology spending, including firewall spending, may adversely impact our business. We have been, and may in the future be, susceptible to supply chain constraints, supply shortages and disruptions, long or less predictable lead times for components and finished goods and supply changes because some of the key components in our products come from limited sources of supply. As a result of supply chain disruptions in previous periods, we increased our purchase order commitments in previous periods and, were in some instances required to and may in the future be required to accept or pay for components and finished goods regardless of our level of sales in a particular period, which may negatively impact our operating results and financial condition. Our billings, revenue, and free cash flow growth may slow or may not continue to grow, and our operating margins may decline. Our real estate assets, including construction, acquisitions, leasing activity, and ongoing maintenance and management of office buildings, warehouses, data centers and points of presence, as well as data center expansions or enhancements, could involve significant risks to our business. Our backlog may fluctuate over quarters. A reduction to backlog increases our aggregate billings and revenue during the quarter when deliver

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements FORTINET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions, except per share amounts) September 30, 2024 December 31, 2023 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 2,489.3 $ 1,397.9 Short-term investments 1,162.4 1,021.5 Marketable equity securities 49.0 21.0 Accounts receivable—net 1,044.1 1,402.0 Inventory 354.3 484.8 Prepaid expenses and other current assets 121.5 101.1 Total current assets 5,220.6 4,428.3 PROPERTY AND EQUIPMENT—NET 1,273.4 1,044.4 DEFERRED CONTRACT COSTS 599.4 605.6 DEFERRED TAX ASSETS 1,300.4 868.8 GOODWILL 212.8 126.5 OTHER INTANGIBLE ASSETS—NET 111.6 35.3 OTHER ASSETS 133.8 150.0 TOTAL ASSETS $ 8,852.0 $ 7,258.9 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable $ 177.9 $ 204.3 Accrued liabilities 376.6 423.7 Accrued payroll and compensation 248.2 242.3 Deferred revenue 3,081.2 2,848.7 Total current liabilities 3,883.9 3,719.0 DEFERRED REVENUE 2,930.5 2,886.3 LONG-TERM DEBT 993.8 992.3 OTHER LIABILITIES 135.7 124.7 Total liabilities 7,943.9 7,722.3 COMMITMENTS AND CONTINGENCIES (Note 11) STOCKHOLDERS' EQUITY (DEFICIT): Common stock, $ 0.001 par value— 1,500.0 shares authorized; 765.7 and 761.0 shares issued and outstanding on September 30, 2024 and December 31, 2023, respectively 0.8 0.8 Additional paid-in capital 1,568.6 1,416.4 Accumulated other comprehensive loss ( 18.0 ) ( 18.9 ) Accumulated deficit ( 643.3 ) ( 1,861.7 ) Total stockholders' equity (deficit) 908.1 ( 463.4 ) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 8,852.0 $ 7,258.9 See notes to condensed consolidated financial statements. 3 Table of Contents FORTINET, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited, in millions, except per share amounts) Three Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 REVENUE: Product $ 473.9 $ 465.9 $ 1,334.7 $ 1,43

View Full Filing

View this 10-Q filing on SEC EDGAR