The Market Monitor Minding the Nation's Business
Cybersecurity firm Fortinet delivered in the first quarter billings and revenue growth that exceeded the firm’s guidance and which continued to outgrow the market, said founder, chairman and CEO Ken Xie.
“The Fortinet Security Fabric is gaining significant traction with customers as demonstrated by the strength in large, multi-product deals and our continued expansion into the largest enterprises around the world,” he added.
Total revenue was $340.6 million for the first quarter of 2017, an increase of 20 percent compared to $284.6 million in the same quarter of 2016. Within total revenue, product revenue was $135.3 million, an increase of 9 percent compared to $124.6 million in the same quarter of 2016. Service revenue was $205.3 million, an increase of 28 percent compared to $160.0 million in the same quarter of 2016.
Total billings were $403.3 million for the first quarter of 2017, an increase of 22 percent compared to $330.5 million in the same quarter of 2016.
Total deferred revenue was $1.10 billion as of March 31, 2017, an increase of 31 percent compared to $837.2 million as of March 31, 2016. Total deferred revenue increased by $62.7 million compared to $1.04 billion as of December 31, 2016.
As of March 31, 2017, cash, cash equivalents and investments were $1.44 billion, compared to $1.31 billion as of December 31, 2016. In the first quarter of 2017, cash flow from operations was $129.7 million compared to $100.6 million in the same quarter of 2016. Free cash flow1 was $116.2 million during the first quarter of 2017 compared to $70.6 million in the same quarter of 2016, an increase of 65 percent.
GAAP operating income was $5.4 million for the first quarter of 2017, representing a GAAP operating margin of 2 percent. GAAP operating loss was $3.7 million for the same quarter of 2016, representing a GAAP operating margin of -1 percent.
Non-GAAP operating income was $43.0 million for the first quarter of 2017, representing a non-GAAP operating margin of 13 percent. Non-GAAP operating income was $30.1 million for the same quarter of 2016, representing a non-GAAP operating margin of 11 percent.
GAAP net income was $10.7 million for the first quarter of 2017, compared to GAAP net income of $2.1 million for the same quarter of 2016. GAAP diluted net income per share was $0.06 for the first quarter of 2017, compared to $0.01 for the same quarter of 2016.
Non-GAAP net income was $31.0 million for the first quarter of 2017, compared to non-GAAP net income of $20.1 million for the same quarter of 2016. Non-GAAP diluted net income per share was $0.17 for the first quarter of 2017, compared to $0.12 for the same quarter of 2016.