- In slides (.pdf) published following its Q3 report, Fortinet (NASDAQ:FTNT) guides for Q4 revenue of $162M-$167M (+9% Y/Y at the mid-point) and EPS of $0.13-$0.14, below a consensus of $167.3M and $0.15.
- Billings are expected to total $186M-$196M (+10% Y/Y at the mid-point) for the seasonally strong quarter. Fortinet's full-year free cash flow guidance range has been widened to $125M-$135M from $130M-$135M.
- With expectations relatively low - Fortinet had underperformed the Nasdaq by over 30% YTD going into the report - investors are focusing more on the Q3 beat, which was accompanied by a 14% Y/Y increase in billings to $165.2M (above revenue of $154.7M). Also, Fortinet's deferred revenue balance rose 3% Q/Q and 18% Y/Y to $400.2M.
- Q3 product revenue (45% of total, drives future services revenue) +11% Y/Y vs. +8% in Q2. Services revenue +20% vs. +22% in Q2. Americas sales +14%, EMEA +13%, Asia-Pac +13%.
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Q3 results, PR